US embassy cable - 05LIMA3926

C O N F I D E N T I A L LIMA 003926 
 
SIPDIS 
 
DEPARTMENT FOR WHA P/DAS SHAPIRO 
 
E.O. 12958: DECL: 09/09/2015 
TAGS: PREL, ETRD, PGOV, PE, CO 
SUBJECT: WHY AN URIBE/TOLEDO MEETING WITH PRESIDENT BUSH IS 
IN OUR INTEREST 
 
REF: A. LIMA 3888 
     B. BOGOTA 8415 
 
Classified By: Political Counselor Alexander Margulies.  Reason:  1.4(d 
). 
 
1.  (C)  We understand that Peruvian Ambassador Ferrero soon 
will call on PDAS Shapiro and U/S Burns to request an October 
meeting between Presidents Toledo, Uribe and Bush.  According 
to Foreign 
Minister Maurtua, the two Andean leaders decided during their 
September 5 consultations in Bogota (reftels) to visit 
Washington together on October 11 or 12 (Toledo will be en 
route to a state visit to Madrid).  Toledo wants to emphasize 
Peru's desire to close Free Trade Agreement negotiations with 
the U.S. in October.  While the proof of the pudding will be 
in the tasting, Toledo has instructed his 
negotiating team to show flexibility toward this end.  The 
appointment of Pedro Pablo Kuczynski as Prime Minister 
reinforces the GOP's determination; PPK passionately believes 
that Peru's complementary 
growth, development and poverty reduction strategies must be 
based on free trade, market economics and private investment. 
 
2.  (C) Toledo is worried that stretching the FTA 
negotiations past October will cause a collision with Peru's 
2006 electoral calendar; 
an agreement now supported by all major parties could become 
politicized.  Toledo is not/not seeking to break negotiating 
impasses at the Presidential 
level.  Rather, he is seeking a highly visible sign of U.S. 
commitment to refute Peru's FTA skeptics, who argue that our 
commitments in the 
Middle East and the close CAFTA vote have put the Andean 
region on the back burner. 
 
3.  (C)  Toledo already plans to visit Washington next week, 
in-between attendance at the UNGA in New York, where he will 
meet with USTR Portman 
and with some members of Congress.  With the Congress, he 
will push for ACI funding for counternarcotics activities in 
Peru and build support for 
eventual ratification of an FTA. 
 
4.  (C)  An Uribe/Toledo meeting with POTUS would also 
provide us with opportunities to advance significant USG 
interests in the region: 
 
--  Encourage increased counterterrorism and counternarcotics 
cooperation between Colombia and Peru.  Peru already is far 
ahead of 
other countries in the region in recognizing the threat to 
Andean security posed by the FARC and responding to this 
through joint military 
and intelligence programs with the GOC.  It recently signed 
off on a CNIES agreement, which will lead to Peruvian 
intelligence input for 
Colombian and Brazilian air interdiction programs. 
 
--  Develop common approaches to countering the regional 
threat posed by Venezuelan President Hugo Chavez.  Uribe and 
Toledo share our concerns 
regarding Chavez's attempts to undermine democracy and 
reassert state control over the economy in the Andean region. 
 Their cooperation will 
be essential in any effort to identify, limit and roll-back 
Chavez's influence and activities. 
 
--  Highlight the success of Peru's pro-market policies and 
alignment with the U.S.  The GOP is among the minority of 
countries on track to 
fulfill its Millennium Development goals.  It reduced its 
extreme poverty rate from 27 to 24 percent last year and the 
just-released UN development index 
shows that Peru improved from 0.752 (85th out of 159 
countries) to 0.762 (79th) on that index.  The newly-released 
Heritage Foundation Index of Economic Freedom also saw Peru 
jump from 2.83 to 2.76 on that scale, an improvement for the 
third year in a row. 
 
--  Commend Peru's responsible approach towards democratic 
transitions.  Toledo has named a technocrat who is trusted by 
most of the 
opposition as Prime Minister.  Both the President and PPK 
have described the latter's marching orders as "to avoid 
handing over any messes or time 
bombs to the next government." 
STRUBLE