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### Viewing cable 05LIMA2185, REGIONAL PRESIDENT YEHUDE SIMON: MOVING AHEAD ON

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05LIMA2185 | 2005-05-13 22:28 | 2011-05-21 12:00 | CONFIDENTIAL | Embassy Lima
Appears in these articles: elcomercio.pe

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    C O N F I D E N T I A L SECTION 01 OF 02 LIMA 002185

    SIPDIS

    E.O. 12958: DECL: 05/11/2015
    TAGS: PGOV MARR ETRD ECON PE
    SUBJECT: REGIONAL PRESIDENT YEHUDE SIMON:  MOVING AHEAD ON
    NEW HORIZONS; UNLIKELY TO RUN FOR PRESIDENT

    Classified By: Ambassador Curtis Struble for Reason 1.4 (B, D)

    ¶1. (C) SUMMARY.  Lambayeque Regional President Yehude Simon
    briefed the Ambassador 5/4 on the extensive consultations he
    has carried out to smooth the way for the SOUTHCOM New
    Horizons Exercise anticipated for next year.  Simon expressed
    confidence he would win a referendum on creating a northern
    macro-region together with Piura and Tumbes; he said this
    would speed the pace of foreign investment, with the U.S.
    being welcome to participate.  Simon voiced support for the
    Andean Free Trade Agreement, although he has concerns with
    agriculture and IPR.  He said it was very unlikely he would
    run for President of Peru in 2006.  END SUMMARY.

    ¶2. (U) The Ambassador met with Lambayeque Regional President
    Yehude Simon in Chiclayo on May 4.  Simon began by expressing
    satisfaction with the nine-day MEDRETE (Medical Readiness
    Training Exercise) being carried out in Chiclayo and environs
    by the 96th Medical Group from Maxwell Air Force Base.  Simon
    explained that he had not visited the exercise himself
    because he didn't want to politicize the event by giving the
    impression he was taking credit for it.  Nonetheless, he had
    seen to it that the MEDRETE was well-publicized, and had
    publicly voiced his support for the initiative.

    ¶3. (C) Simon also commented on his efforts to prepare the way
    for the SOUTHCOM New Horizons Exercise (NH-06) which may take
    place the second half of next year.  He said he had consulted
    with Defense Minister Chiabra and with the local military
    commander, and felt he had a good rapport with each.  He has
    also reached out to NGOs, in particular Peru Solidarity Forum
    (which has done important work in Lambayeque with European
    and Japanese donors), and the Legal Defense Institute (IDL).
    He said IDL head Ernesto de la Jara supported carrying out
    NH-06 in Lambayeque, as did Social Democratic Party leader
    Susana Villaran.

    ¶4. (C) Simon said the congressional delegation from
    Lambayeque was also on board, and even leftist Congessman
    Javier Diez Canseco, although opposed to NH-06, would not
    undermine it.  (NOTE:  Diez Canseco was primarily responsible
    for torpedoing a proposed New Horizons Exercise in 2003,
    denouncing it as an attempt to establish a U.S. military base
    in Peru's coca zone.  END NOTE.)  In discussions with local
    mayors and school directors, Simon said he had received an
    85-90 percent positive response.  Once a public announcement
    of NH-06 became imminent, he also intended to brief a
    sympathetic group of media executives.  The Ambassador
    confirmed that planning for NH-06 was still on track, and
    that once all of the funding commitments were secured
    (hopefully in the near future), we would be prepared to join
    in a public roll-out.

    ¶5. (SBU) The Ambassador asked about prospects for creating a
    macro-region in the north, which would lend a measure of
    unity to the regional governments' dealings with the national
    government.  He said that in a visit to neighboring
    Cajamarca, he had noted differences between the attitudes of
    regional officials, who opposed a macro-region, and local
    businessmen, who saw the need for integration.  Simon said
    that the referendum on a macro-region was set to take place
    in October, and that this would include participation by
    Cajamarca, since a sufficient number of voters had signed on
    to petitions.

    ¶6. (C) Simon said he had always had two strategies for the
    formation of a macro-region, one looking east toward
    Cajamarca and Amazonas, and the other looking north to Piura
    and Tumbes.  No matter what happened with Cajamarca, he
    expected the fusion with Piura and Tumbes to take place,
    despite initial opposition at the national level from the
    APRA party, which controls both regional presidencies.  APRA
    sees Simon's Humanist Movement as a serious political
    competitor in the north.  APRA leader Alan Garcia had, Simon
    asserted, thought he could block the macro-region but was
    estranged from fellow party member Cesar Trelles, Regional
    President of Piura.  Trelles decided to buck orders from
    above.  Garcia now understood his poor position and had just
    asked to meet with Simon.  (The latter had agreed, but the
    meeting hadn't taken place at the time of the Ambassador's
    meeting with Simon.)  Simon felt a macro-regional
    administration would speed even further the growing pace of
    foreign investment in northern Peru, and said he welcomes
    greater U.S. presence as part of this process.

    ¶7. (C) The Ambassador gave an overview of the status of
    negotiations on the Andean Free Trade Agreement (FTA).  Simon
    said he had some concerns about how the FTA would affect
    agriculture and intellectual property rights, but overall he
    was a supporter.  He said he had told Prime Minister Ferrero
    that the GOP needs to do a better job of coordinating its
    message on the FTA, and he emphasized the need to focus on
    the implementation phase, in particular to ensure that fears
    about small companies being eaten up by larger ones are not
    realized.

    ¶8. (C) The Ambassador asked about the 2006 presidential race,
    and whether an electoral coalition might develop under the
    leadership of ex-President Valentin Paniagua (Popular Action
    Party - AP).  Simon said he had spoken to Paniagua three days
    earlier.  Simon's analysis was that  Paniagua was an honest
    man and was seen as a conciliator, but his party was weak,
    and brought very little to the table in terms of being able
    to lead a coalition.  The conventional wisdom in Peru,
    however, was that parties win elections, not coalitions.
    Paniagua had told Simon that despite his personal interest in
    a coalition, his backers in AP, particularly party President
    Victor Andres Garcia Belaunde, wanted to go it alone,
    calculating it would enhance their Congressional
    representation.

    ¶9. (C) Simon said he was aware of the interest in his own
    plans for 2006 and whether he would take a "leap into the
    void" of a presidential campaign, but commented that this was
    very unlikely.  His priority was to fortify what he had begun
    with the regional government, gain more experience in guiding
    a sucessful administration in Lambayeque, and work to build
    the Humanist Party's strength in local elections.  Susana
    Villaran and Drago Kisic (President of the National
    Independent Party) had urged him to head up a national
    ticket; he intended to remain allied with them, but said
    there was little chance he would run for President.

    ¶10. (C) COMMENT:  As chief executive of the Lambayeque
    Region, Yehude Simon gets rave reviews from all save his most
    entrenched political opponents.  He is a committed and
    compassionate leftist, but a practical manager as well, who
    seeks out private investment as a means to improve the lot of
    the region's populace.  His political standing makes him an
    ideal choice for hosting the New Horizons Exercise.  Simon's
    inclination toward sitting out the 2006 presidential election
    is probably sound, as he needs more seasoning and national
    exposure to be ready for prime time.  END COMMENT.
    STRUBLE

`