KENNEDY SPEAKS TO PERU ON DEBT, DEMOCRACY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01390R000700900048-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 27, 2016
• Document Release Date: December 14, 2010
• Sequence Number: 48
• Publication Date: January 18, 1986
• Content Type: CABLE

Declassified in Part - Sanitized Copy Approved for Release 2011/10/24: CIA-RDP90B01390R000700900048-2
OLL/LD
INCOMING
CONFIDENTIAL
PRIORITY
PP RUEAIIB
ZNY CCCCC ZOC STATE ZZH
STU8050
PP RUEHC
DE RUEHPE #0645 0172202
ZNY CCCCC ZZH
P 172201Z JAN 86
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC PRIORITY 9227
INFO RUEHBO/AMEMBASSY BOGOTA 8005
RUEHLP/AMEMBASSY LA PAZ 9680
RUEHSG/AMEMBASSY SANTIAGO 8256
RUEHQT/AMEMBASSY QUITO 7499
RUEOSBA/USAFSO HOWARD AFB PN
RUEOEHA/USCINCSO QUARRY HTS PN
BT
LIMA 00645
E.O. 12356: DECL: OADR
TAGS: PREL, OVIP, EFIN, PE
SUBJECT: KENNEDY SPEAKS TO PERU ON DEBT, DEMOCRACY
1. (C) SUMMARY: U.S. SENATOR EDWARD KENNEDY SPOKE TO
APPROXIMATELY 500 DISTINGUISHED GUESTS AT FORUM
SPONSORED BY PERUVIAN THINK TANK, ADDRESSING
DEMOCRACY IN LATIN AMERICA AND COOPERATIVE
APPROACH TO INDEBTEDNESS. HE LISTED SEVEN GUIDING
PRINCIPLES FOR DEALING WITH DEBT CRISIS: PROMOTE
GROWTH; INCREASE EFFICIENCY OF DEBTOR ECONOMIES;
COOPERATE RATHER THAN PROVOKE CONFRONTATION BETWEEN
NORTH AND SOUTH; DEAL WITH PROBLEM AS POLITICAL ISSUE;
GIVE DEVELOPING COUNTRIES FLEXIBLE AND FAIR TERMS;
LOWER INDUSTRIALIZED COUNTRIES' INTEREST RATES WHILE
PROVIDING NEW DEVELOPMENT CAPITAL; AND REDUCE
PROTECTIONIST BARRIERS IN NORTH WHILE PROMOTING TRADE
WITH SOUTH. KENNEDY LAUDED GARCIA REPEATEDLY IN
SPEECH, BUT FELL SHORT OF EMBRACING PERUVIAN
PRESIDENT'S POSITION ON DEBT. END SUMMARY.
2. (U) FINISHING TOUR THROUGH LATIN AMERICA, U.S.
SENATOR EDWARD KENNEDY GAVE SPEECH ON SPREAD OF
DEMOCRACY AND COOPERATIVE APPROACH TO
THIRD WORLD INDEBTEDNESS TO DISTINGUISHED AUDIENCE OF
APPROXIMATELY 500 GUESTS INVITED BY PERUVIAN INSTITUTE
FOR INTERNATIONAL STUDIES (CEPEI) IN LIMA. WELCOMING
RETURN TO DEMOCRACY WHICH SEVERAL LATIN AMERICAN
COUNTRIES HAVE WITNESSED, AND EXPRESSING HOPE FOR SAME
IN CHILE, KENNEDY NOTED THAT ENJOYMENT OF DEMOCRATIC
AND INDIVIDUAL LIBERTY PROVIDES COMMON TIE AMONG
PEOPLES OF U.S. AND SOUTH AMERICA. CALLING THE ECONOMIC
CRISIS FACING CONTINENT CAUSE AND EFFECT OF HIGH
INDEBTEDNESS, HE LABELLED DEBT AS "DARK CLOUD" ON
HORIZON OF DEMOCRACY'S SPREAD. EMPHASIZING ECONOMIC
GROWTH AND POLITICAL COOPERATION AS KEYS TO HANDLING
DEBT CRISIS, HE LISTED FOLLOWING SEVEN GUIDING
PRINCIPLES: ORIENT POLICIES TOWARD ECONOMIC GROWTH
RATHER THAN TOWARD SEVERE AUSTERITY; WORK TO MAKE THE
ECONOMIES OF DEVELOPING COUNTRIES MORE EFFICIENT,
PAGE 001 NC 9618136
TOR: 180445Z JAN 86 LIMA 00645
Declassified in Part - Sanitized Copy Approved for Release 2011/10/24: CIA-RDP90B01390R000700900048-2
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/24: CIA-RDP90BO139OR000700900048-2
CONFIDENTIAL
86 9618136 SCP PAGE 002 NC 9618136
TOR: 180445Z JAN 86 LIMA 00645
FREE FROM DEPENDENCE ON PROTECTIONIST IMPORT
RESTRICTIONS; FOSTER COOPERATION BETWEEN NORTH AND
SOUTH IN EFFORT TO ATTACK PROBLEM AS PARTNERS;
RECOGNIZE PROBLEM AS REQUIRING HIGH-LEVEL POLITICAL
RESPONSE INSTEAD OF TECHNICAL ECONOMIC FIXES; DEAL
WITH DEBTOR COUNTRIES ON CASE-BY-CASE BASIS,
STRUCTURING TERMS FAIRLY AND FLEXIBLY TO TAKE INTO
ACCOUNT EACH NATION'S PARTICULAR CIRCUMSTANCES; PROVIDE
MORE RESOURCES FOR DEVELOPMENT BY OPENING UP NEW
SOURCES OF CAPITAL AND LOWERING INTEREST RATES IN
INDUSTRIALIZED COUNTRIES, WHICH SIPHON OFF INVESTMENT
NEEDED IN THE THIRD WORLD; AND, OPEN UP NORTHERN
MARKETS SO AS TO INCREASE DEVELOPING COUNTRIES'
EARNINGS POTENTIAL THROUGH REDUCTION OF
PROTECTIONIST BARRIERS AND OTHER MEASURES. KENNEDY
PROPOSED THAT CARTEGENA GROUP COUNTRIES ASK
GOVERNMENTS OF NORTH AMERICA, EUROPE AND JAPAN TO MEET
WITH THEM SO NORTH AND SOUTH COULD ADDRESS PROBLEM
JOINTLY, USING MONTEVIDEO DECLARATION AS BASIS FOR
DISCUSSION.
3. (U) KENNEDY REPEATEDLY PRAISED GARCIA IN SPEECH.
HE NOTED GARCIA "INSPIRES HOPE AND PRIDE IN ALL
THE PEOPLE OF PERU" AND HIS INAUGURATION SYMBOLIZES
PERUVIANS' FREEDOM FROM "REPRESSIVE FORCES FACED BY
NATIONS OF THIS HEMISPHERE." KENNEDY LAUDED GARCIA'S
"COMMITMENT TO ALL PERUVIANS" AND STATED HE SHARED
GARCIA'S GOALS OF DEMOCRACY AND FREEDOM FOR THE
HEMISPHERE.
4. (C) COMMENT. KENNEDY'S INVOCATION OF MEMORY OF
ALLIANCE FOR PROGRESS WARMED MANY PERUVIAN HEARTS,
BUT HIS ANALYSIS OF DEBT ISSUE FELL FAR SHORT OF THE
FEISTY DISREGARRD FOR INTERNATIONAL MONETARY SYSTEM
WHICH HAS CHARACTERIZED GARCIA'S POSITION. NONETHELESS,
PERUVIAN PRESIDENT-WAS APPARENTLY PLEASED BY SPEECH.
IN HIS TOAST AT DINNER IN KENNEDY'S HONOR LATER
SAME DAY, HE MADE SPECIFIC POSITIVE REFERENCE TO THOSE
POINTS SENATOR HAD SET FORTH WHICH IMPLIED SUPPORT
FOR PERUVIAN POSITION, WHILE IGNORING THE OTHERS.
JORDAN
END OF MESSAGE CONFIDENTIAL
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2011/10/24: CIA-RDP90BO139OR000700900048-2