PERU

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90G01353R001500230072-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 27, 2016
• Document Release Date: September 4, 2013
• Sequence Number: 72
• Publication Date: January 1, 1988
• Content Type: MISC

Declassified in Part - Sanitized Copy Approved for Release 2013/09/11: CIA-RDP90G01353R001500230072-6
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Peru
President Garcia's early years, following a landslide victory
in 1985, were marked by a confrontational approach toward the
international debt issue and a boisterous "Third World" foreign
policy that was highly critical of the US. Over the last eighteen
months, however, Garcia has seen his public approval ratings fall
drastically as he has struggled with several nagging problems.
Despite initial high growth rates, Peru's economic situation
has deteriorated rapidly, forcing Garcia to abandon a
demand-led growth strategy, adopt more conventional
austerity measures, and improve relations with the Western
financial community.
An eight year-old insurgency, dominated by Sendero Luminoso,
or "Shining Path," has steadily widened from its rural base
to make Lima one of the more dangerous cities in South
America. -
Sendero's success lies largely in its ability to recruit
among Peru's large Indian population by exploiting ethnic
grievances and longstanding government neglect of
impoverished rural areas.
Garcia inherited a burgeoning narcotics industry, and,
despite general cooperation with the US, his governMent has
had little success in stemming the growth of illicit coca
production.
With approximately 106,000 hectares under coca cultivation,
Peru continues as the world's leading producer of coca leaf
and exporter of cocoa paste and base. Peru's efforts at
eradication have been restricted so far to manual means
because Garcia is concerned about the environmental impact
of herbicides.
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Declassified in Part - Sanitized Copy Approved for Release 2013/09/11: CIA-RDP90G01353R001500230072-6