R 172125Z SEP 92 FM AMEMBASSY LIMA TO SECSTATE WASHDC 1854 C O N F I D E N T I A L SECTION 01 OF 04 LIMA 12419 SUBJECT: BETWEEN SENDERO AND THE

GOP: LIFE ON LIMA'S OUTER FRINGE

1. CONFIDENTIAL - ENTIRE TEXT 2. SUMMARY: VILLA EL SALVADOR, A SHANTY TOWN SUBURB OF LIMA, IS SYMBOLIC OF THE BATTLE BETWEEN THE GOVERNMENT AND THE SENDERO LUMINOSO AND THE GOVERNMENT FOR THE LOYALTIES OF A POVERTY-STRIKEN POPULATION. BECAUSE OF ITS LIMITED PRESENCE AND RESOURCES, THE GOVERNMENT HAS DIFFICULTY RESPONDING TO THE SENDERO'S SELECTIVE CAMPAIGN OF TERRORISM OR THE POPULATION'S EXPECTATIONS. END SUMMARY. ----------------------------------------------SHINING EXAMPLE ON THE HILL: VILLA EL SALVADOR ----------------------------------------------3. POLITICAL OFFICERS RECENTLY REVISITED VILLA EL SALVADOR, LIMA'S MOST SYMBOLICALLY IMPORTANT "PUEBLO JOVEN" (PJ - LITERALLY YOUNG TOWN). IT IS A FAVORITE STOP ON THE POVERTY TOURISM ROUTE IN PERU. ONE OF THE LARGEST AND OLDEST

"SPONTANEOUS" SETTLEMENTS THAT RING METROPOLITAN LIMA, "VILLA" IS WIDELY CONSIDERED THE PROTOTYPICAL SUCCESS STORY OF WHAT A SQUATTER INVASION CAN BECOME THROUGH COMMUNITY ORGANIZATION AND HARD WORK. VILLA LIES IN LIMA'S SOUTHERN CONE AND IS HOME TO ABOUT THREE HUNDRED AND FIFTY THOUSAND PERSONS. FOUNDED TWENTY-ONE YEARS AGO, VILLA HAS GENERALLY MADE THE TRANSITION FROM A SQUATTERS SHANTY TOWN TO A POOR WORKING CLASS "BEDROOM COMMUNITY" WITH AN AIR OF SETTLED PERMANENCE: MANY HOMES AND BUSINESSES ARE MADE OF BRICK OR CEMENT BLOCK; ACCORDING TO ONE ESTIMATE 90 PERCENT OF THE TOWN'S HOMES HAVE TELEVISION; THE MAIN STREET AND MANY SIDE STREETS ARE PAVED. 4. WITHIN THE CONTEXT OF THE DAILY STRUGGLE FOR EXISTENCE LIVED BY MOST INHABITANTS OF LIMA'S SHANTY TOWNS, RESIDENTS OF VILLA EL SALVADOR ARE GENERALLY CONSIDERED TO BE WELL OFF. THE COMMUNITY IS ORGANIZED BY SECTIONS, AND ELECTED DELEGATES TO THE UMBRELLA VILLA EL SALVADOR SELF-GOVERNMENT ORGANIZATION ("CUAVES") HAVE FOUGHT HARD, AND WITH SOME SUCCESS, TO OBTAIN ELECTRICITY, WATER, SEWAGE AND GARBAGE COLLECTION FOR MANY PARTS OF VILLA. VILLA'S HARD WORK AND SOLID ORGANIZATION (AND CONSIDERABLE INTERNATIONAL LARGESSE) EARNED IT AN OFFICIAL COMMUNITY CHARTER AND INTERNATIONAL RECOGNITION IN THE FORM OF A "PRINCE OF ASTURIAS" AWARD FROM SPAIN'S CROWN PRINCE SEVERAL YEARS AGO. 5. HOWEVER, LIFE IN VILLA IS BY NO MEANS EASY. VILLA RESIDENTS MUST PAY A MINIMUM OF 0.50 SOLES (1.36 SOLES CURRENTLY EQUALS 1 U.S. DOLLAR) FOR THE CHEAPEST BUS TRANSPORTATION TO LIMA. PRINCIPAL WAGE EARNERS, WHO AVERAGE PERHAPS 10 SOLES A DAY IN

EARNINGS, SPEND AT LEAST 10 PERCENT OF THAT ON TRANSPORTATION. THE RANKING POLICE SERGEANT ON DUTY AT VILLA'S ONLY POLICE STATION TOLD POLITICAL OFFICERS THAT ON HIS OFFICIAL SALARY OF 7 SOLES A DAY HE MUST PROVIDE SUPPORT FOR HIMSELF, HIS WIFE AND FOUR CHILDREN. CLAIMING THAT HIS COLLEGE-AGE SON NEEDED THE EQUIVALENT OF 3 SOLES A DAY TO ATTEND THE UNIVERSITY, AND HIS PRINCIPAL LUNCHEON MEAL MIGHT COST TWO SOLES, HE SHRUGGED WHEN HE ASKED RHETORICALLY HOW HE WAS EXPECTED TO SUPPORT THE REST OF HIS FAMILY ON THE REMAINDER OF HIS LEGAL SALARY. 6. ACCORDING TO THE POLICE OFFICIAL, ABSENTEEISM IN THE PUBLIC SCHOOLS OF VILLA EL SALVADOR WAS RAMPANT BECAUSE FAMILIES IN THE TOWN WERE REQUIRED TO SEND THEIR CHILDREN OUT TO WORK AT AN EARLY AGE RATHER THAN TO SCHOOL. IN ANY EVENT, THE POLICE SERGEANT DISMISSED MOST OF THE TEACHERS IN THE LOCAL PUBLIC SCHOOLS AS UNDER-QUALIFIED AND UNDERMOTIVATED OUTSIDERS. MEDICAL FACILITIES ARE EQUALLY LIMITED. RESIDENTS DEPRECATED THE QUALITY OF MEDICAL CARE AVAILABLE TO THEM, NOTING THAT THE NEAREST HOSPITAL WAS NOT ONLY DISTANT, BUT NOT EVEN FULLY FUNCTIONING. 7. WITH UNCERTAINTY OVER THE VALUE OF THE NATIONAL CURRENCY, THE DOLLAR HAS BECOME THE PREFERRED MEDIUM OF EXCHANGE FOR TRANSACTIONS IN VILLA EL SALVADOR. CITY OFFICIALS ESTIMATED THAT BUSINESSES OR HOUSES ON THE TOWN'S MAIN STREET SOLD FOR 4,000-5,000 DOLLARS, WITH PRIME CORNER LOCATIONS GOING FOR AS MUCH AS TWENTY-FIVE THOUSAND DOLLARS. ALL TRANSACTIONS ARE IN DOLLARS. ABOUT 60 PERCENT OF PERU'S MONEY SUPPLY IS IN

DOLLARS. --------------------------------------------PROBLEMS IN CAMELOT: SENDERO WITHIN THE GATES --------------------------------------------8. SENDERO LUMINOSO IS TRYING TO TAKE OVER THE TOWN'S GOVERNMENT. THREE FACTORS SUPPOSEDLY MADE THE TOWN IMPENETRABLE TO THE SENDERO TERRORISTS: THE LEADERSHIP'S CLOSE TIES TO THE POPULATION, THEIR LINKS WITH TRADITIONAL PARTIES OF THE LEFT, THE TOWN'S COMMUNITY ORGANIZATIONAL STRUCTURE, AND ITS LEVEL OF ECONOMIC DEVELOPMENT. FOREIGN AID TO VILLA EL SALVADOR, AS A "MODEL SLUM," WAS ALSO HELPFUL. 9. HOWEVER, VILLA'S REPUTATION AS A REDOUBT AGAINST SENDERO WAS LITERALLY EXPLODED WITH THE ASSASSINATION OF VICE-MAYOR MARIA ELENA MOYANO ON FEBRUARY 15. NEXT, VILLA'S CITY HALL AND POLICE STATION WERE ALMOST COMPLETELY DESTROYED BY A SENDERO LUMINOSO CAR BOMB ON APRIL 8, 1992. ALSO DAMAGED IN THE ATTACK WERE NEARBY BUILDINGS INCLUDING A COMPLEX HOUSING A SCHOOL AND VILLA'S COMMUNITY RADIO AND TELEVISION STATION. IN ADDITION, IN 1992 AN SL-ASSOCIATED SLATE ALSO LEGITIMATELY WON AN ELECTION IN THE MICROINDUSTRIAL PARK TO REPRESENT THE PARK IN VILLA'S GOVERNMENT. PERUVIAN SENDERO EXPERT CARLOS TAPIA SUBSEQUENTLY DESCRIBED VILLA EL SALVADOR AS A SHINY APPLE THAT CUT OPEN REVEALED ITSELF TO HAVE BEEN INFESTED WITH SENDERO WORMS.

----------------------------------POLICE RARELY VENTURE INTO THE CITY ----------------------------------10. POLITICAL OFFICERS VISITED THE SHELL OF THE STILL FUNCTIONING POLICE STATION. THERE ARE SOME 70 POLICEMEN WORKING IN THREE SHIFTS FOR THE ENTIRE COMMUNITY. ACCORDING TO THE SENIOR POLICE SERGEANT INTERVIEWED, POLICE ONLY VENTURE OUT OF THE STATION IN PAIRS, HAVE NO VEHICLES (THEIR PATROL CARS WERE DESTROYED BY THE CAR BOMB), AND HAVE NO TELEPHONE. THE POLICE OFFICIAL REPORTED THAT IT COULD TAKE UP TO AN HOUR FOR ANY REINFORCEMENTS TO ARRIVE ONCE THEY HAD BEEN REQUESTED USING THE ONE RADIO LINK AVAILABLE AT THE STATION. SINCE AT LEAST A DOZEN POLICE GUARD THE MUNICIPAL CENTER AT ALL TIMES, AT BEST ONE OR TWO PATROLS ARE AVAILABLE FOR RESPONDING ON FOOT TO ASSISTANCE CALLS FROM THE COMMUNITY AT ANY GIVEN TIME. ALTHOUGH THERE ARE SCHOOLS WITHIN SIGHT OF THE POLICE HEADQUARTERS, THE OFFICIAL INDICATED THAT NO COMMUNITY OUTREACH TO STUDENTS WAS ACTIVE OR CONTEMPLATED. 11. THE POLICE IN VILLA EL SALVADOR HAVE LITTLE EXPECTATION OF REINFORCEMENTS FROM LIMA IN THE EVENT OF TROUBLE, AND AT LEAST ONE POLICEMAN ADMITTED TO A MODUS VIVENDI WITH SENDERO. THE OFFICER TOLD POLOFFS THAT HE LIVED IN VILLA WITH HIS FAMILY -- SENDERO KNEW HIM AND HE KNEW THEM. HE EXPLAINED THAT WHILE HE OFTEN HAD FRANK DISCUSSIONS WITH "THEM" ABOUT CURRENT EVENTS, HE AVOIDED PHILOSOPHICAL DEBATES AND SAID BOTH SIDES "KNEW HOW TO MANAGE THINGS" BETWEEN THEM.

------------------------------------VILLA'S LEADERS STRUGGLE FOR SURVIVAL ------------------------------------12. MICHEL AZCUETA, FOR TWENTY YEARS THE MAYOR OF VILLA EL SALVADOR, ESTIMATED THAT IN THE AREA OF VILLA EL SALVADOR PROPER AND THE ADJOINING SHANTY TOWN, THE SENDERO LUMINOSO HAS BEEN ABLE TO ESTABLISH A MAJOR PRESENCE WITH PERHAPS 7-10 ACTIVIST MEMBERS AND APPROXIMATELY SEVENTY ACTIVE SYMPATHIZERS IN THE COMMUNITY. -----------------------FUJIMORI REMAINS POPULAR -----------------------13. AZCUETA, WHO WAS ELECTED IN 1989 ON AN OPPOSITION SLATE AS A LIMA CITY COUNCILMAN, ACKNOWLEDGED PERUVIAN PRESIDENT FUJIMORI RETAINED HIS POPULARITY WITH THE RESIDENTS OF THIS OUTLYING COMMUNITY. FUJIMORI'S PRINCIPAL APPEAL, IN AZCUETA'S VIEW, WAS HIS CAREFULLY CULTIVATED IMAGE AS A "NON-POLITICIAN." THE INHABITANTS OF HIS TOWN, REMARKED AZCUETA, WERE FED UP WITH POLITICIANS AND TRADITIONAL POLITICS SINCE THE COUNTRY'S POLITICAL STRUCTURES AND PROCESSES HAD PRODUCED LITTLE IN THE WAY OF CONCRETE BENEFITS FOR THEM. ---------------------------------------------UPCOMING CONSTITUTIONAL AND MAYORAL ELECTIONS ----------------------------------------------

14. AZCUETA DEMURRED WHEN ASKED IF HE PLANNED TO BE A CANDIDATE IN THE UPCOMING CONSTITUTIONAL ASSEMBLY ELECTIONS. HE WAS UNCERTAIN WHO MIGHT RUN, NOTING THAT A LIKELY TACTIC OF THE SENDERO LUMINOSO GUERRILLAS WOULD BE TO ENGAGE IN INDIVIDUAL ACTS OF VIOLENCE AND ASSASSINATION AGAINST LOCAL CANDIDATES IN OUTLYING AREAS WHILE USING CAR BOMBINGS IN LIMA FOR THEIR PROPAGANDA VALUE. ATTACKS AGAINST INDIVIDUALS, IN ADDITION TO DEMONSTRATING THE GOVERNMENT'S INABILITY TO PROVIDE LOCAL CANDIDATES AND OFFICIALS WITH PROTECTION WOULD HAVE SEVERAL EFFECTS, IN AZCUETA'S VIEW. IN ADDITION TO ADVANCING THE SENDERO STRATEGY OF SHOWING THE GOVERNMENT IMPOTENCE, RANDOM ASSASSINATIONS WOULD LIKELY DETER THE BEST CANDIDATES FROM SEEKING OFFICE. THE RESULT, IN AZCUETA'S VIEW, WOULD BE SECOND-BEST OR MEDIOCRE CANDIDATES TAKING THEIR PLACE. SUCH A GROUP OF PUBLIC OFFICIALS UNABLE TO RESOLVE PERU'S PROBLEMS, OR EXACERBATE THEM, WOULD FIT INTO THE SENDERO'S STRATEGY, CONCLUDED AZCUETA. 15. COMMENT: VILLA EL SALVADOR ILLUSTRATES THE GOVERNMENT'S DIFFICULTIES IN FIGHTING SENDERO LUMINOSO. THE RELATIVE PROSPERITY THAT BRINGS TELEVISION ALSO BRINGS THE RISING EXPECTATIONS OF GOOD LIFE OF THE "TELENOVELAS" DEPICTED ON THE SOAP OPERAS AND DEMANDS FOR SERVICES THE GOVERNMENT CANNOT PROVIDE. 16. THE PERUVIAN GOVERNMENT HAS ONLY A LIMITED PRESENCE IN A TOWN WHICH IS PART OF THE CAPITAL'S METROPOLITAN AREA, PERHAPS 45 MINUTES FROM THE PRESIDENTIAL PALACE. WHAT CONTACT THE AVERAGE

RESIDENT OF VILLA EL SALVADOR HAS WITH THE GOVERNMENT IS LIKELY TO BE NEGATIVE, I.E., THE TAX COLLECTOR COLLECTING MONEY OR THE POLICEMAN DEMANDING A BRIBE. SENDERO IS CAPITALIZING ON THE GOVERNMENT'S LIMITED PRESENCE BY PICKING AND CHOOSING TARGETS OF OPPORTUNITY TO FURTHER ISOLATE THE GOVERNMENT FROM THE PEOPLE. AT THE SAME TIME, THE SELF-HELP AND LOCAL INITIATIVE OF THE RESIDENTS OF VILLA EL SALVADOR SHOW WHAT CAN BE DONE WITHOUT, OR DESPITE, THE CENTRAL GOVERNMENT. SENDERO IN VILLA EL SALVADOR IS FIGHTING TWO ENEMIES: LOCAL LEADERS AND THE GOVERNMENT. SENDERO HAS MADE CONSIDERABLE HEADWAY IN RECENT YEARS. 17. EVEN THOUGH THE ARREST OF SENDERO LUMINOSO FOUNDER AND LEADER ABIMAEL GUZMAN ON SEPTEMBER 12 MAY TEMPORARILY DISRUPT THE ORGANIZATION'S OPERATIONS, THE STRUCTURAL PROBLEMS--POVERTY, ECONOMIC STAGNATION, RACISM, UNRESPONSIVE GOVERNMENT--UPON WHICH IT HAS FED REMAIN. AND EVEN IF VILLA EL SALVADOR TURNS THE CORNER, TE NEXT WAVE OF POTENTIAL SYMPATHIZERS, NOW SITTING ON THE SAND HILLS ABOVE THE TOWN IN CARDBOARD HOUSES, WILL ALREADY BE DEMANDING ITS SHARE OF THE ECONOMIC PIE. (Edited and reading.) reformatted by Andres for ease of