US embassy cable - 05LIMA5031

UNCLAS SECTION 01 OF 02 LIMA 005031 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR INL, WHA; ONDCP FOR GETTINGS 
 
E.O. 12958: N/A 
TAGS: AMGT, PE, PREL, SNAR 
SUBJECT: OPENING OF NEW POLICE BASE AT PALMA PAMPA 
 
REF: LIMA 4784 
 
1.  Summary:  The new NAS-sponsored police base at Palma 
Pampa was inaugurated November 16, although airborne 
interdiction operations began in July.  The base is in the 
heart of the Apurimac/Ene Valley (VRAE) that is one of the 
main source zones for coca cultivation -- around 14,000 
hectares -- and cocaine production in Peru.  The VRAE has 
become an increasingly hostile environment for alternative 
development in terms of both program potential and security. 
In the past 4 months, police operations from the new base 
have resulted in the destruction of over 400 cocaine base 
laboratories, over 150 tons of essential chemicals, and over 
800 tons of coca leaf.  The disruption has scared off buyers 
and reduced the price of leaf by half.  Community support 
programs will also be run out of the base as part of an 
outreach effort to the hostile local community.  End Summary. 
 
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OPENING OF PALMA PAMPA POLICE BASE 
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2.  (SBU)  On November 16, NAS Director Keogh joined PNP 
Deputy Director General Vizcarra, Director of DIRANDRO Olivo 
and other Peruvian Government officials for the formal 
inauguration of a modern police base in Palma Pampa.  Palma 
Pampa is a remote village located in the heart of the 
Apurimac/Ene valley (VRAE) in Southern Peru.  The VRAE is one 
of the major source zones for coca leaf in Peru, used to 
cultivate approximately 14,000 hectares of coca annually of 
the roughly 50,000 hectares under cultivation in Peru.  While 
the VRAE has rich agricultural land and a variety of crops, 
in recent years the trend has been toward mono-cultivation of 
coca and other illegal activities including logging.  The 
zone has become a cocalero stronghold.  Reftel describes how 
the area has become increasingly dangerous for legitimate 
activity, including alternative development, as 
narcotraffickers linked to subversive groups (Sendero 
Luminoso) rule in the absence of state security. 
 
3.  (U)  The NAS-sponsored police base project was developed, 
designed and built over a two-and-a-half year time frame at a 
cost of about 3.2 million USD, that includes helipads and 
perimeter security.  The construction services were provided 
through the use of GSA, who contracted with US and local 
sub-contractors.  Initial airborne operations began in July, 
prior to the inauguration. 
 
4.  (U)  The purpose of building this secure base in one of 
Peru's most notorious no-go zones is to reestablish police 
presence and to change the climate of impunity.  DIRANDRO 
will for the first time be capable of maintaining long-term 
interdiction operations in the VRAE.  Newly graduated police 
from the PNP/NAS Basic Training Academies have brought the 
staffing of Palma Pampa, that previously had a small, 
insecure police station, from 13 to 60 officers.  These 
police are trained and equipped to carry out operations in 
remote areas.  We anticipate that this base will serve as the 
staging area for inderdiction of narcotics throughout the 
Apurimac/Ene valley. 
 
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INTERDICTION STRATEGY DISRUPTS PRODUCTION AND LOWERS PRICES 
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5.  (SBU) Eradication operations in the VRAE in the immediate 
future are not feasible due to the civil unrest that such 
action would precipitate, particularly in the run-up to 
national elections next year.  To disrupt cocaine production 
and to lower the price of leaf, the police are implementing a 
new interdiction strategy, capitalizing on the strategic 
location of Palma Pampa and their increased presence there. 
The goal is to reduce and maintain the price of coca leaf at 
a low enough level to encourage communities of farmers to 
voluntarily eradicate on order to receive support in 
developing licit activities.  Interdiction operations from 
the Palma Pampa base in the last 4 months have resulted in 
the destruction of 431 cocaine base laboratories, 152 tons of 
precursor chemicals, and 872 tons of coca leaf.  These 
disruptive efforts, combined with interdiction of chemicals 
and drugs by a recently established DIRANDRO Mobile Road 
Group, have resulted in a 50 percent drop in the price of 
coca leaf from 120 soles (36 USD) per arroba (11 and a half 
kilos) to 60 soles as buyers are scared off.  The price of 
essential chemicals has tripled. 
 
6. (SBU) Rolling interdiction operations are now the norm: 
when there are signs that the price of leaf is rising, the 
helicopters go out to disrupt and destroy drug-trafficking 
activities.  We are working to achieve a further reduction of 
prices.  (Note:  In 1995, the price of coca leaf in Peru fell 
to below 25 soles per arroba - one of the key factors in the 
abandonment of fields.  End Note).  NAS is also working with 
DIRANDRO to control river traffic.  The FLIR-equipped C-26 
aircraft recently handed over to the FAP will conduct night 
time reconnaissance flights over the VRAE to locate cocaine 
HCL laboratories. 
 
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REACHING OUT TO THE COMMUNITY 
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7.  The base has to be entirely self sufficient as the local 
community remains hostile.  NAS guardians report the 
townsfolk will not even sell them water.  To break down this 
hostility, the old PNP base at Palma Pampa, located adjacent 
to the new base, will be rehabilitated to initiate community 
support programs designed to establish closer 
police-community relations.  A pre-Police Basic Training 
Academy educational program is in the works to better prepare 
local candidates to pass the entrance exams.  Also planned is 
a radio station that would include messages in support of 
strategy goals among its programming.  A health aid station, 
staffed by police medics, will provide medical care to the 
community. 
STRUBLE