US embassy cable - 05LIMA5087

C O N F I D E N T I A L SECTION 01 OF 02 LIMA 005087 
 
SIPDIS 
 
DEPT FOR WHA/CCA, WHA/AND 
 
E.O. 12958: DECL: 12/01/2015 
TAGS: ETTC, PREL, PE 
SUBJECT: PERU AND CUBA: NSC-DIRECTED REVIEW REGARDING 
SUSPENSION OF TITLE III OF THE LIBERTAD ACT 
 
REF: A. STATE 207359 
     B. LIMA 1556 
 
Classified By: CDA Phyllis Powers for reasons 1.4 (b) and (d). 
 
1.  (U) The following is Post's response to reftel A. 
 
No Political Support for Cuba 
----------------------------- 
 
2.  (U)  The Peruvian Government maintains formal relations 
with the Cuban Government, but the two countries have modest 
diplomatic contacts and bilateral trade.  The last visit by a 
Peruvian Foreign Minister to Cuba was in January 2002 (Diego 
Garcia Sayan), while the last visit by a Cuban Foreign 
Minister to Lima was in October 2000.  In 1999 the two 
countries signed a Basic Agreement on Technical Cooperation, 
but little has been implemented under this agreement due to 
lack of financing.  Some 400 Peruvian students study medicine 
and physical education in Cuba on GOC scholarships. 
 
3.  (C)  President Alejandro Toledo personally condemns the 
Castro regime, its human rights abuses, and its economic 
policies.  He and the GOP are also concerned over Castro's 
ties to Venezuelan President Hugo Chavez, whom Toledo has 
termed "a Castro with petrodollars."  Under Toledo's 
leadership, Peru supported the UNCHR Cuba resolutions in 
2001-2004, earning rebuffs from the GOC.  In May 2004, Peru 
temporarily withdrew its Ambassador to Havana in protest over 
derogatory comments by Fidel Castro related to Peru's role in 
passage of that year's Cuba Resolution.  In 2005, however, 
Peru abstained on the Cuba Resolution at the urging of 
Brazilian President Lula and Argentine President Kirchner 
(Ref B).  On the other hand, Peru opposed the Cuba-sponsored 
resolution on alleged human rights violations in Guantanamo 
at the 2005 UNCHR. 
 
4.  (U) Peru, as a member of the Non-Aligned Movement, 
traditionally supports United Nations resolutions condemning 
the U.S. economic "embargo" against Cuba, as well as 
declarations condemning the Libertad Act by regional 
organizations such as the Rio Group, ALADI and the 
Ibero-American Summit. 
 
No Confirmed Investment in Cuba 
------------------------------- 
 
5.  (SBU) Peru has minimal foreign direct investments (FDI) 
abroad, totaling $800 million in 2004.  Most of Peru's FDI, 
invested by Banco de Credito (Peru's largest bank), is found 
in Mexico, Bolivia, Ecuador, Central America and the Cayman 
Islands.  Gladys Choy, Director of the Central Bank's Balance 
of Payment Division, could not confirm whether Peruvian 
companies or individuals had any investments in Cuba.  She 
did allude, however, that if any investments exist, they are 
very small and not worthwhile.  (Note: While the Central Bank 
tracks Peruvian foreign direct investment abroad, it does not 
release the data to the public because it believes the data 
is unreliable.  End Note.) 
 
6.  (U) Trade between Peru and Cuba is negligible.  According 
to the Ministry of Trade and SUNAT (Peru's Tax and Customs 
Authority), Cuba is Peru's 70th trading partner.  Peruvian 
exports to Cuba totaled $2.5 million in 2004, up from $2.4 
million the previous year.  Peru exported fishmeal and other 
fish products, plastic goods, and zinc alloy.  Imports from 
Cuba were $0.4 million in 2004 and $0.3 million in 2003. 
Imported products included rum, vaccines and medical 
products. 
 
Comment 
------- 
 
7.  (C) The Peruvian Government is hostile to the Castro 
regime and, until this year's UNCHR, was the leading Latin 
American proponent of UNCHR resolutions condemning Cuba's 
human rights record.  Continued suspension of the Libertad 
Act's application to Peru and its citizens would be in the 
U.S. national interest.  Application of that legislation to 
Peru would likely engender ill will, reduce the likelihood of 
GOP support in the future, and (inasmuch as Peru has minimal 
bilateral trade and investment links with Cuba) have little 
or no effect on the trafficking or use of confiscated 
property in Cuba. 
POWERS