U.S. Department of State 
Background Notes: Peru, March 1998
Released by the Bureau of Inter-American Affairs. 


Official Name: Republic of Peru 


PROFILE 

Geography 

Area: 1.28 million sq. km. (496,225 sq. mi.); three times larger than 
California.
Cities: Capital--Lima/Callao metropolitan area (pop. 7 million, 1996). 
Other cities--Arequipa, Chiclayo, Cuzco, Huancayo, Trujillo, Ayacucho, 
Piura, Iquitos, Chimbote. 
Terrain: Western coastal plains, central rugged mountains (Andes), 
eastern lowlands with tropical forests.
Climate: Coastal area, arid and mild; Andes, temperate to frigid; 
eastern lowlands, tropically warm and humid. 

People 

Nationality: Noun and adjective--Peruvian(s). 
Population (1997 est.): 24.9 million (70% urban).
Annual growth rate (1997 est.): 1.7%. 
Ethnic groups: Indian 45%; Mestizo 37%; White 15%; Black, Japanese, 
Chinese, and other 3%. 
Religion: Roman Catholic (90%). 
Languages: Spanish (official), Quechua (official), and Aymara. 
Education: Years compulsory--11. Literacy--about 89%. 
Health: Infant mortality rate (1997 est.)--43/1,000. Life expectancy 
(1997)--67 yrs. male; 71 yrs. female.
Work force (1995, 7.6 million): Manufacturing--22%. Commerce--14%. 
Agriculture--12%. Mining--11%. Construction--9%. Government--5%. Other 
services--27%.

Government 

Type: Constitutional republic. 
Independence: 1821. 
Constitution: December 1993.
Branches: Executive--president, two vice presidents, Council of 
Ministers. Legislative--unicameral Congress. Judicial--Supreme Court and 
lower courts, Tribunal of Constitutional Guarantees. 
Administrative subdivisions: 12 regions, 24 departments, 1 
constitutional province.
Political parties and movements: Change 90/New Majority, Union For Peru 
(UPF), American Popular Revolutionary Alliance (APRA), Independent 
Moralizer Front (FIM), Popular Christian Party (PPC), Popular Action 
(AP). 
Suffrage: Universal over 18; compulsory until age 70 (members of the 
military may not vote). 

Economy (1997) 

GDP (est.): $54.0 billion. 
Annual growth rate: 7.4%.
Per capita GDP: $2,150. 
Inflation rate: 6.5%.
Natural resources: Minerals, metals, petroleum, forests, and fish. 
Agriculture (12% of GDP): Products--sugar, potatoes, rice, plantain, 
milk, yellow corn, cotton, coffee.
Industry (22% of GDP): Types-plastics, soft drinks, paper, varnishes and 
lacquers, non-metallic minerals, cement.
Trade: Exports--$6.8 billion: petroleum, fish meal, textiles, zinc, 
gold, coffee, sugar, petroleum products. Major markets--U.S. (23%), 
China (7.3%), Switzerland (6.1%), Germany (5.7%). Imports--$8.6 billion: 
machinery, cereals, chemicals, pharmaceuticals, petroleum and mining 
equipment. Major suppliers--U.S. (25%), Andean Pact countries, 
Argentina, EU, and Japan.
Official exchange rate (new soles per dollar, March 1998): 2.75=U.S.$1.

PEOPLE 

Most Peruvians are mestizo, a term that usually refers to a mixture of 
Amerindians and Peruvians of European descent. Peruvians of European 
descent make up about 15% of the population; there are also smaller 
numbers of persons of African, Japanese, and Chinese descent. In the 
past decade, Peruvians of Asian heritage have made significant 
advancements in business and political fields; the president, a cabinet 
member, and several members of the Peruvian Congress are of Japanese or 
Chinese descent. Socio-economic and cultural indicators are increasingly 
important as identifiers. For example, Peruvians of Amerindian descent 
who have adopted aspects of Hispanic culture are also considered 
mestizo. With economic development, access to education, intermarriage, 
and large-scale migration from rural to urban areas, a more homogeneous 
national culture is developing, mainly along the relatively more 
prosperous coast. 

Peru has two official languages--Spanish and the foremost indigenous 
language, Quechua. Spanish is used by the government and the media, and 
in education and commerce. Amerindians who live in the Andean highlands 
speak Quechua and Aymara and are ethnically distinct from the diverse 
indigenous groups who live on the eastern side of the Andes and in the 
tropical lowlands adjacent to the Amazon basin. 

Peru's distinct geographical regions are mirrored in a socio-economic 
divide between the coast's mestizo-Hispanic culture and the more 
diverse, traditional Andean cultures of the mountains and highlands. The 
indigenous populations east of the Andes speak various languages and 
dialects. Some of these groups still adhere to traditional customs, 
while others have been almost completely assimilated into the mestizo-
Hispanic culture. 

Education

Under the 1993 constitution, primary education is free and compulsory. 
The system is highly centralized, with the Ministry of Education 
appointing all public school teachers. Eighty-four percent of Peru's 
students attend public schools at all levels. 

School enrollment has been rising sharply for years, due to a widening 
educational effort by the government and a growing school-age 
population. The illiteracy rate is 25.3 % (37.5% for women) in rural 
areas and is estimated at 5.3% (8.1% for women) in urban areas. 
Elementary and secondary school enrollment is approximately 6.l million. 
Peru's 65 universities (1997), roughly divided between public and 
private institutions, enrolled about 380,000 students in 1996. 

Culture

The relationship between Hispanic and Indian cultures determines much of 
the nation's cultural expression. During pre-Columbian times, Peru was 
one of the major centers of artistic expression in America. Pre-Inca 
cultures, such as Chavin, Paracas, Nazca, Chimu, and Tiahuanaco, 
developed high quality pottery, textiles, and sculpture. Drawing upon 
earlier cultures, the Incas continued to maintain these crafts but made 
even more impressive achievements in architecture. The mountain town of 
Machu Picchu and the buildings at Cuzco are excellent examples of Inca 
architectural design.

Peru has passed through various intellectual stages--from colonial 
Hispanic culture to European Romanticism after independence. The early 
20th century brought "indigenismo," expressed in a new awareness of 
Indian culture. Since World War II, Peruvian writers, artists, and 
intellectuals have participated in worldwide intellectual and artistic 
movements, drawing especially on U.S. and European trends. 

During the colonial period, Spanish baroque fused with the rich Inca 
tradition to produce mestizo or creole art. The Peruvian (Cuzco) school 
followed the Spanish baroque tradition with influence from the Italian, 
Flemish, and French schools. Painter Francisco Fierro made a distinctive 
contribution with his portrayals of typical events, manners, and customs 
of mid-19th century Peru. Francisco Lazo, forerunner of the indigenous 
school of painters, also achieved fame for his portraits, as did others. 
Peru's 20th century art is widely known for its extraordinary variety of 
styles and originality. 

In the decade after 1932, the "indigenous school" of painting headed by 
Jose Sabogal dominated the cultural scene in Peru. Nevertheless, a 
reaction among Peruvian artists led to the beginning of modern Peruvian 
painting. Sabogal's resignation as director of the National School of 
Arts in 1943 coincided with the return of several Peruvian painters from 
Europe who revitalized "universal" and international styles of painting 
in Peru. During the 1960s, Fernando de Szyszlo, an internationally 
recognized Peruvian artist, became the main advocate for abstract 
painting and pushed Peruvian art toward modernism. Peru continues to be 
an art-producing center with painters such as Gerardo Chavez, Alberto 
Quintanilla, and Jose Carlos Ramos, along with sculptor Victor Delfin, 
gaining international stature. Promising young artists continue to 
develop now that Peru's economy allows more promotion of the arts. 

HISTORY 

When the Spanish landed in 1531, Peru's territory was the nucleus of the 
highly developed Inca civilization. Centered at Cuzco, the Inca Empire 
extended over a vast region from northern Ecuador to central Chile. In 
search of Inca wealth, the Spanish explorer Francisco Pizarro, who 
arrived in the territory after the Incas had fought a debilitating civil 
war, conquered the weakened people. The Spanish had captured the Incan 
capital at Cuzco by 1533 and consolidated their control by 1542. Gold 
and silver from the Andes enriched the conquerors, and Peru became the 
principal source of Spanish wealth and power in South America. 

Pizarro founded Lima in 1535. The viceroyalty established at Lima in 
1542 initially had jurisdiction over all of South America except 
Portuguese Brazil. By the time of the wars of independence (1820-24), 
Lima had become the most distinguished and aristocratic colonial capital 
and the chief Spanish stronghold in America. 

Peru's independence movement was led by Jose de San Martin of Argentina 
and Simon Bolivar of Venezuela. San Martin proclaimed Peruvian 
independence from Spain on July 28, 1821. Emancipation was completed in 
December 1824, when General Antonio Jose de Sucre defeated the Spanish 
troops at Ayacucho, ending Spanish rule in South America. Spain made 
futile attempts to regain its former colonies, but in 1879 it finally 
recognized Peru's independence.

After independence, Peru and its neighbors engaged in intermittent 
territorial disputes. Chile's victory over Peru and Bolivia in the War 
of the Pacific (1879-83) resulted in a territorial settlement. Following 
a clash between Peru and Ecuador in 1941, the Rio Protocol--of which the 
United States is one of four guarantors--sought to establish the 
boundary between the two countries. Continuing boundary disagreement led 
to brief armed conflicts in early 1981 and early 1995. 

The military has been prominent in Peruvian history. Coups have 
repeatedly interrupted civilian constitutional government. The most 
recent period of military rule (1968-80) began when General Juan Velasco 
Alvarado overthrew elected President Fernando Belaunde Terry of the 
Popular Action Party (AP). As part of what has been called the "first 
phase" of the military government's nationalist program, Velasco 
undertook an extensive agrarian reform program and nationalized the fish 
meal industry, some petroleum companies, and several banks and mining 
firms. 

Because of Velasco's economic mismanagement and deteriorating health, he 
was replaced by General Francisco Morales Bermudez Cerruti in 1975. 
Morales Bermudez moved the revolution into a more pragmatic "second 
phase," tempering the authoritarian abuses of the first phase and 
beginning the task of restoring the country's economy. Morales Bermudez 
presided over the return to civilian government in accordance with a new 
constitution drawn up in 1979. In the May 1980 elections, President 
Belaunde Terry was returned to office by an impressive plurality. 

Nagging economic problems left over from the military government 
persisted, worsened by an occurrence of the "El Nino" weather phenomenon 
in 1982-83, which caused widespread flooding in some parts of the 
country, severe droughts in others, and decimated the schools of ocean 
fish that are one of the country's major resources. After a promising 
beginning, Belaunde's popularity eroded under the stress of inflation, 
economic hardship, and terrorism.

During the 1980s, cultivation of illicit coca was established in large 
areas on the eastern Andean slope. Rural terrorism by Sendero Luminoso 
(SL) and the Tupac Amaru Revolutionary Movement (MRTA) increased during 
this time and derived significant financial support from their alliances 
with the narcotraffickers. In 1985, the American Popular Revolutionary 
Alliance (APRA) won the presidential election, bringing Alan Garcia 
Perez to office. The transfer of the presidency from Belaunde to Garcia 
on July 28, 1985, was Peru's first exchange of power from one 
democratically elected leader to another in 40 years. 

Extreme economic mismanagement by the Garcia Administration led to 
hyperinflation from 1988 to 1990. Concerned about the economy, the 
increasing terrorist threat from Sendero Luminoso, and allegations of 
official corruption, voters chose a relatively unknown mathematician-
turned-politician, Alberto Fujimori, as president in 1990. 

GOVERNMENT 

The president is popularly elected for a 5-year term, and the 1993 
Constitution permits one consecutive re-election. The first and second 
vice presidents also are popularly elected but have no constitutional 
functions unless the president is unable to discharge his duties. The 
principal executive body is the Council of Ministers, headed by a prime 
minister. The prime minister and the Cabinet are appointed by the 
president. All presidential decree laws or draft bills sent to Congress 
must be approved by the Council of Ministers. 

The legislative branch consists of a unicameral Congress of 120 members. 
In addition to passing laws, Congress is empowered to approve treaties, 
authorize government loans, and approve the government budget. The 
president has the power to block legislation with which the executive 
branch does not agree. 

The judicial branch of government is headed by a 16-member Supreme Court 
seated in Lima. The Constitutional Tribunal interprets the constitution 
on matters of individual rights. Superior courts in departmental 
capitals review appeals from decisions by lower courts. Courts of first 
instance are located in provincial capitals and are divided into civil, 
penal, and special chambers. The judiciary has created several temporary 
specialized courts, in an attempt to reduce the large backlog of cases 
pending final court action. In 1996, a Human Rights Ombudsman's office 
was created to address human rights issues. 

Peru is divided into 24 departments and the constitutional province of 
Callao, the country's chief port, adjacent to Lima. The departments are 
subdivided into provinces, which are composed of districts. Local 
authorities below the departmental level are elected. 

Principal Government Officials 

President--Ing. Alberto FUJIMORI Fujimori
First Vice President--Ing. Ricardo MARQUEZ Flores
Second Vice President--Dr. Cesar PAREDES Canto

Ministers:
Prime Minister--Ing. Alberto PANDOLFI Arbulu 
Foreign Minister--Dr. Eduardo FERRERO Costa
Defense--Gen. Cesar SAUCEDO Sanchez
Economy and Finance--Ing. Jorge CAMET Dickmann
Interior--Gen. Jose VILLANUEVA Ruesta
Justice--Dr. Alfredo QUISPE Correa
Education--Ing. Domingo PALERMO Cabrejos
Health--Dr. Marino COSTA Bauer
Agriculture and Food--Ing. Rodolfo MUNANTE Sanguinetti
Labor--Econ. Jorge GONZALEZ Izquierdo
Industry, Commerce, Tourism, and Integration--Ing. Gustavo CAILLAUX 
Zazzali 
Transportation and Communications--Ing. Antonio PAUCAR Carbajal 
Energy and Mines--Ing. Daniel HOKAMA Tokashiki
Fisheries--Sr. Ludwig MEIER Cornejo
Promotion of Women & Human Resources Development--Dra. Miriam SCHENONE 
Ordinola
Minister of the Presidency--Ing. Tomas GONZALES Reategui

Ambassador to the United States--Ricardo LUNA Mendoza
Permanent Representative to the United Nations--Fernando GUILLEN Salas
Ambassador to the Organization of American States--Dra. Beatriz 
RAMACCIOTTI 

Peru maintains an embassy in the United States at 1700 Massachusetts 
Avenue, NW, Washington, DC 20036 (tel. 202-833-9860/67, consular 
section: 202-462-1084). Peru has consulates in New York; Paterson, NJ; 
Miami; Chicago; Houston; Los Angeles; San Francisco; and San Juan, 
Puerto Rico. 

POLITICAL CONDITIONS 

Peru is a republic with a dominant executive branch headed by President 
Alberto Fujimori. President Fujimori won re-election to a second five 
year term in 1995, and his "Change 90/New Majority" supporters enjoy a 
substantial majority in Congress. In 1996, the Congress passed 
legislation interpreting the Constitutional term limits for president, 
making it possible for President Fujimori to seek re-election in 2000. 

In April 1992, two years after his election, President Fujimori carried 
out an "auto-coup," dissolving Congress and regional governments and 
assuming control over the judiciary. There was broad popular support for 
the coup, which reflected deep public frustration with politicians' 
inefficiency and corruption. The president subsequently convened 
elections for a constituent congress on November 1992, and won public 
approval of the new constitution in an October 1993 referendum. 

The Fujimori Government has substantially reduced the terrorist threat 
of Shining Path (SL) and the MRTA. Although greatly weakened since the 
1992 capture of its leader Abimael Guzman, Shining Path remains capable 
of launching violent attacks, particularly in the coca-producing Upper 
Huallaga Valley and occasionally in Lima. Elements of SL are reported to 
be actively recruiting in some of Lima's shantytowns. Despite the 
December 1995 arrest of MRTA leader Miguel Rincon Rincon and others at a 
safe house in a Lima suburb, remaining armed militants of the MRTA were 
able to carry out an attack on a diplomatic reception at the residence 
of the Japanese Ambassador to Peru in December 1996. More than 500 
guests were initially held captive by the MRTA, which demanded the 
release of all MRTA members being held in Peruvian prisons. On April 22, 
1997, after 126 days, Peruvian commandos stormed the residence and freed 
71 of the remaining 72 hostages. One hostage, two commandos and all of 
the hostage-takers were killed. 

Human rights violations by the security forces dropped considerably over 
the last four years, although their use of torture, and the lack of 
accountability and due process remain areas of concern. In 1995, the 
Peruvian Congress passed a law which granted amnesty from prosecution to 
those who committed human rights abuses during the war on terrorism from 
May 1980 to June 1995. The Peruvian Government established in 1996 the 
Human Rights Ombudsman's office to address human rights issues and an ad 
hoc commission to review and recommend for presidential pardon those 
unjustly detained for terrorism or treason. 

ECONOMY 

Peru's economy rebounded in 1997, spurred mainly by a growth in exports 
(especially, so-called "non-traditional" exports). GDP grew 7.4% in 
1997, much improved from the previous year's slump, during which the 
economy grew only 2.8%, and much better than most observers predicted. 
January 1998's output grew only 0.2%--clearly affected by "El Nino." The 
Lima Stock Exchange had an extraordinary year in 1997, despite 
significant declines in October (along with most other stock exchanges 
worldwide). The general index rose 25.5% in nominal terms in 1997; the 
selective ("blue chip") index rose 32.2%. Since the end of 1997, both 
indices have experienced nominal declines of 11.5% and 11.3%, 
respectively.

1997's inflation rate was at a 25-year low, at 6.5%. This measure far 
exceeded expectations, which at the beginning of the year were that 
inflation might reach 9% under optimal conditions. Due to the two 
exogenous shocks--the "El Nino" weather phenomenon and the Asian 
economic and financial crisis--1998 inflation is officially predicted at 
8%, due to supply bottlenecks domestically (especially on food items) 
and higher dollar costs of imports (due to faster depreciation of the 
sol vis-a-vis the dollar). Although accumulated inflation for January 
and February was 2.2%, inflation is predicted to slow significantly in 
the second half of the year, after the effects of "El Nino" are expected 
to have moderated.

Foreign Trade and Balance of Payments

After falling between 1995 and 1996, Peru's merchandise trade deficit 
was expected to rise slightly in 1997. Instead, the deficit narrowed 
significantly, as exports grew much faster than did imports. Overall, 
export revenues rose 14.5% (compared to early 1997 estimates of 2%) to 
$6.8 billion. Imports also rose faster than expected (8.5% vs. 2.0%) to 
$8.6 billion. Peru's total capital inflows (including estimated illicit 
narcotics earnings of $300 million to $600 million) are forecast to be 
more than enough to cover the country's 1997 current account deficit 
(equal to about 5.2% of GDP.) The effects of "El Nino" and the Asian 
crisis are expected to cause the current account deficit to increase to 
about 6% of GDP in 1998.

During 1997, Peru re-inserted itself into the international financial 
system, beginning with a Brady debt restructuring in March. In December, 
it also completed a debt swap with the United States Government, by 
which it repaid part of its debt (part of which had already been 
written-off by the U.S.) in return for using part of the funds for 
environmental projects or projects that will enhance child survival.

Net international reserves of the Central Bank stood at $10.2 billion at 
the end of 1997, $1.6 billion higher than at the end of the previous 
year. 

Foreign Investment

The Peruvian Government actively seeks to attract both foreign and 
domestic investment in all sectors of the economy. International 
investment has been spurred by the significant progress Peru has made 
over the last seven years toward economic, social, and political 
stability. While Peru was previously marked by terrorism, 
hyperinflation, and government intervention in the economy, the 
Government of Peru under President Alberto Fujimori has taken the steps 
necessary to bring those problems under control. However, democratic 
institutions, especially the judiciary, remain weak.

The Government of Peru's economic stabilization and liberalization 
program has lowered trade barriers, eliminated restrictions on capital 
flows, and opened the economy to foreign investment, with the result 
that Peru now has one of the most open investment regimes in the world. 
Between 1991 and 1997, Peru attracted over $7 billion in foreign direct 
investment in Peru, mainly from Spain (34%), the United States (21%), 
the United Kingdom (13%), and Panama and the Netherlands (7% each). The 
basic legal structure for foreign investment in Peru is formed by the 
1993 Constitution, the Private Investment Growth Law, and the Investment 
Promotion Law of November 1996. While Peru has neither a bilateral 
investment treaty nor a bilateral taxation treaty with the United 
States, it has signed an agreement (1993) with the Overseas Private 
Investment Corporation concerning OPIC-financed loans, guarantees, and 
investments. Peru has also committed itself to arbitration of 
government-to-government investment disputes under the auspices of 
ICSID--the World Bank's International Centre for the Settlement of 
Investment Disputes.

Economic Outlook

Although 1997 was a good year for Peru's macroeconomy, 1998 will be 
substantially more difficult. The Asian economic and financial crisis 
and the unexpectedly harsh effects of the "El Nino" weather phenomenon 
will both adversely affect Peru's economy, which is not likely to meet 
1997's 7.4% GDP growth rate and 6.5% inflation rate. Official forecasts 
are for 4% output growth and 8% inflation. Forecasts for the medium- and 
long-term remain bright, as the country continues to attract both 
domestic and foreign investment in the tourism, mining, petroleum and 
natural gas, and electric power industries.

Narcotics

The fight against narcotics trafficking in Peru has resulted in an 
unprecedented 40% decline in the number of acres of illegal coca leaf 
under production in the past two years: however, most of the world's 
cocaine supply still originates from coca leaf grown in Peru. The 
contribution of this illicit industry to the national economy is 
difficult to measure, but estimates range from $300-600 million. An 
estimated 200,000 Peruvians are engaged in the production, refining, or 
distribution of the narcotic. Many economists believe that large flows 
of dollars into the banking system contribute to the traditional 
depression in the dollar exchange rate vis-a-vis the sol, prompting the 
Central Bank to engage in open market activities to prevent the price of 
the sol from rising to levels that would otherwise hurt Peruvian 
exports.

Confronted by effective Peruvian Air Force interdiction efforts, drug 
traffickers are increasingly using land and river routes to transport 
cocaine paste around the country. Peru continues to seize drug 
traffickers and drugs, destroy coca labs, disable clandestine airstrips, 
and prosecute security officers involved in narcotics corruption. 

Working with the U.S. Agency for International Development (USAID), the 
Peruvian Government has begun alternative development programs in the 
leading coca-growing areas in an effort to convince coca farmers not to 
grow that crop. The government also has programs to eradicate coca seed 
beds and is working to eliminate precursor chemicals. In 1996, the 
Fujimori Administration created a new office--"Contradrogas"--to 
facilitate coordination among Peruvian Government agencies working on 
counternarcotics issues.

FOREIGN RELATIONS 

Armed conflict broke out between Peru and Ecuador in January 1995 over 
an undemarcated portion of their border. Both countries agreed to a 
cease-fire in February 1995 which remains in effect. The United States, 
along with Argentina, Brazil, and Chile, are guarantors of the 1942 Rio 
Protocol and are supporting Peruvian and Ecuadorian efforts to find a 
permanent viable solution to the border demarcation issue. In April 
1997, Peruvian and Ecuadorian delegations began substantive discussions 
in Brasilia aimed at this objective. In November, Peru and Ecuador 
signed the Declaration of Brasilia agreeing to work in four areas to 
achieve a settlement of their differences. In January 1998, they adopted 
a workplan to implement the Declaration of Brasilia by establishing four 
commissions to: prepare a treaty of commerce and navigation; draft a 
comprehensive agreement on border integration; fix on the ground the 
common land border; and establish a binational commission on mutual 
confidence measures and security. The commissions began work in 
February. Peru and Ecuador set a target date of May 30 for achieving a 
definitive settlement of their border dispute. 

President Fujimori is increasing Peru's ties to Japan and other 
countries on the Pacific Rim. In 1996, the Prime Minister of Japan and 
the President of South Korea visited Peru. In the wake of the December 
1996 hostage-taking by MRTA terrorists at the Japanese ambassadorial 
residence in Lima, the Japanese and Peruvian Governments consulted 
closely on the means of resolving the crisis. Prime Minister Hashimoto 
of Japan visited Lima in April 1997 to express gratitude for the rescue 
operation by Peruvian security personnel which claimed the life of only 
one of the 72 remaining hostages.

Peru has been a member of the United Nations since 1949, and Peruvian 
Javier Perez de Cuellar served as UN Secretary General from 1981 to 
1991. The April 1992 auto-coup strained Peru's relations with many Latin 
American and European countries, but relations improved as the 
government returned to democratic processes. Peru recently reached 
agreement with the other members of the Andean community on full 
integration into the Andean Free Trade Area. 

U.S.-PERUVIAN RELATIONS 

The United States enjoys friendly relations with Peru. Relations were 
strained after the 1992 auto-coup, but improved subsequently as Peru 
undertook steps to restore democratic institutions and to address human 
rights problems related to its counter-terrorism efforts. The United 
States continues to promote the strengthening of democratic institutions 
and human rights safeguards in Peru.

The United States and Peru cooperate on efforts to interdict the flow of 
narcotics, particularly cocaine, to the United States. The Peruvian Air 
Force has successfully interdicted narcotics trafficking aircraft, and 
appears to have significantly curbed the flow of narcotics through 
Peruvian air space. In tandem with successful law enforcement 
operations, the United States and Peru cooperate on promoting programs 
of alternative development in coca-growing regions. 

The United States has supported Peru's efforts to become more integrated 
with the international financial community. Those efforts, together with 
increased economic and social stability, have resulted in a substantial 
increase in U.S. investment and tourism in Peru in recent years. U.S. 
exports to Peru (1997) were valued at $1.96 billion, accounting for 
about 25% of Peru's imports. In the same year, Peru exported $1.77 
billion in goods to the United States ($1.58 billion according to 
Peruvian statistics), accounting for about 23% of Peru's exports to the 
world.

In 1997, approximately 140,000 U.S. citizens visited Peru for business, 
tourism, and study. About 10,000 Americans reside in Peru and over 200 
U.S. companies are represented in the country.

U.S. Economic Assistance

U.S. bilateral assistance to Peru, including food aid and disaster 
relief and rehabilitation, totaled more than $950 million during the 
1990-97 period. The Agency for International Development's largest South 
American program is in Peru. USAID has provided resources for priority 
development projects at a time when Peru's own domestic resources have 
been severely restricted by the need for austerity in public spending. 

U.S. assistance to Peru is focused on achieving five strategic 
objectives: broader citizen participation and more responsive 
government; increased incomes for Peru's poor; improved health of high 
risk populations; improved environmental conditions; and, perhaps most 
importantly, reduced production of illicit narcotics.

Broader Citizen Participation. The United States Government, through 
USAID, provides support to Government of Peru electoral bodies and non-
governmental organizations (NGO's) to strengthen the electoral system, 
to the Controller General to improve public accountability, and to local 
NGO's to promote greater civic action and public interest in 
governmental affairs. A significant amount of funding is given to the 
Human Rights Ombudsman's Office and NGO's working in the human rights 
field. USAID also has a program to strengthen local governments and 
promote community participation in targeted areas. 

Increased Incomes. USAID has sought to provide much needed services to 
the 20% of Peru's population characterized as "extremely poor." Working 
principally through private sector and not-for-profit organizations, 
USAID has provided assistance to 270,000 nutritionally at-risk children 
and 200,000 heads of households in poor areas.

Improved Health. The United States Government supports immunization, 
family planning, prenatal care, safe childbearing, and oral rehydration 
programs in Peru. USAID assistance has contributed to decreases in 
infant and child mortality over the past decade.

Improved Environmental Conditions. USAID provides assistance to help 
Peru (a) improve its legal, policy, and regulatory framework governing 
environmental protection; (b) prevent pollution in selected settings; 
and (c) protect biologically diverse areas. 

Alternative Development. The United States Government provides 
integrated development services to farmers in five target areas in order 
to wean them from coca production. USAID hopes to reduce coca 
cultivation by 50% in the targeted areas within several years.

Principal U.S. Officials

Ambassador--Dennis C. Jett
Deputy Chief of Mission--Heather M. Hodges 
Director, AID Mission--Donald W. Boyd 
Counselor for Political Affairs--Jim E. Wagner
Counselor for Economic Affairs--Krishna R. Urs 
Counselor for Narcotics Affairs (NAS)--John M. Crow
Counselor for Public Affairs (USIS)--John S. Dickson
Counselor for Administrative Affairs--Alphonse Lopez
Counselor for Consular Affairs--Annette L. Veler
Naval and Defense Attache--Capt. Francis G. Satterthwaite
Army Attache--Lt. Col. Leocadio Muniz (until 4/98; then Col. Samuel K. 
Stouffer)
Air & Defense Attache--Col. Charles W. Griffin (until 7/98; then Col. 
Michael McCarthy)
Chief, Military Assistance Advisory Group (MAAG)--Col. Manuel Fuentes
Consular Agent, Cuzco--Dr. Olga Villagarcia 

The U.S. Embassy in Peru is located at Avendia la Encalada, Cuadra 17 
s/n, Monterrico (Surco), Lima 33 (tel. (511) 434-3000; fax. (511) 434-
3037). Home page: http://ekeko.rcp.net.pe/usa/ 

The embassy is open from 8:00 a.m. to 5:00 p.m., except U.S. holidays. 
The mailing address from the United States is American Embassy Lima, APO 
AA 34031 (use U.S. domestic postage rates). The American Citizen 
Services section is open to the public from 8:00 a.m. to 12:00 p.m. 

The Consular Agency in Cuzco is located at Anda Tullamayu 125 (tel. (51) 
(84) 224112 or (51) (84) 239451; fax. (51) (84) 233541).

OTHER CONTACT INFORMATION:

U.S. Department of State
Bureau of Inter-American Affairs
Office of Andean Affairs (Room 5906)
2201 "C" Street NW
Washington, DC 20520-6263
Tel: 202-647-3360
Fax: 202-647-2628
Home Page: http://www.state.gov

U.S. Department of Commerce
International Trade Administration
Office of Latin America and the Caribbean
14th and Constitution, NW
Washington, DC 20230
Tel: (202) 482-0475
(800) USA-TRADE
Fax: (202) 482-0464
Home Page: http://www.ita.doc.gov 

American Chamber of Commerce of Peru
Avenida Ricardo Palma 836, Miraflores
Lima 18, Peru
Tel: (511) 241-0708
Fax: (511) 241-0709
E-Mail: amcham@amcham.tci.net.pe
Home Page: http://www.amcham.org.pe 

TRAVEL AND BUSINESS INFORMATION 

The U.S. Department of State's Consular Information Program provides 
Travel Warnings and Consular Information Sheets. Travel Warnings are 
issued when the State Department recommends that Americans avoid travel 
to a certain country. Consular Information Sheets exist for all 
countries and include information on immigration practices, currency 
regulations, health conditions, areas of instability, crime and 
security, political disturbances, and the addresses of the U.S. posts in 
the country.

Public Announcements are issued as a means to disseminate information 
quickly about terrorist threats and other relatively short-term 
conditions overseas which pose significant risks to the security of 
American travelers. Free copies of this information are available by 
calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-
on-demand system: 202-647-3000. Travel Warnings and Consular Information 
Sheets also are available on the Consular Affairs Internet home page:  
and the Consular Affairs Bulletin Board (CABB). To access CABB, dial the 
modem number: (301-946-4400 (it will accommodate up to 33,600 bps), set 
terminal communications program to N-8-1 (no parity, 8 bits, 1 stop 
bit); and terminal emulation to VT100. The login is travel and the 
password is info (Note: Lower case is required). The CABB also carries 
international security information from the Overseas Security Advisory 
Council and Department's Bureau of Diplomatic Security. Consular Affairs 
Trips for Travelers publication series, which contain information on 
obtaining passports and planning a safe trip abroad, can be purchased 
from the Superintendent of Documents, U.S. Government Printing Office, 
P.O. Box 371954, Pittsburgh, PA 15250-7954; telephone: 202-512-1800; fax 
202-512-2250.

Emergency information concerning Americans traveling abroad may be 
obtained from the Office of Overseas Citizens Services at (202) 647-
5225. For after-hours emergencies, Sundays and holidays, call 202-647-
4000. 

Passport Services information can be obtained by calling the 24-hour, 7-
day a week automated system ($.35 per minute) or live operators 8 a.m. 
to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-
225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate 
of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648).

Travelers can check the latest health information with the U.S. Centers 
for Disease Control and Prevention in Atlanta, Georgia. A hotline at 
(404) 332-4559 gives the most recent health advisories, immunization 
recommendations or requirements, and advice on food and drinking water 
safety for regions and countries. A booklet entitled Health Information 
for International Travel (HHS publication number CDC-95-8280) is 
available from the U.S. Government Printing Office, Washington, DC 
20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and 
customs regulations, legal holidays, and other items of interest to 
travelers also may be obtained before your departure from a country's 
embassy and/or consulates in the U.S. (for this country, see "Principal 
Government Officials" listing in this publication). 

U.S. citizens who are long-term visitors or traveling in dangerous areas 
are encouraged to register at the U.S. embassy upon arrival in a country 
(see "Principal U.S. Embassy Officials" listing in this publication). 
Registering with the embassy may help you to replace lost identity 
documents or help family members contact you in case of an emergency.

Further Electronic Information: 

Department of State Foreign Affairs Network. Available on the Internet, 
DOSFAN provides timely, global access to official U.S. foreign policy 
information. Updated daily, DOSFAN includes Background Notes; Dispatch, 
the official magazine of U.S. foreign policy; daily press briefings; 
Country Commercial Guides; directories of key officers of foreign 
service posts; etc. DOSFAN's World Wide Web site is at 
http://www.state.gov.

U.S. Foreign Affairs on CD-ROM (USFAC). Published on an annual basis by 
the U.S. Department of State, USFAC archives information on the 
Department of State Foreign Affairs Network, and includes an array of 
official foreign policy information from 1990 to the present. Contact 
the Superintendent of Documents, U.S. Government Printing Office, P.O. 
Box 371954, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 or 
fax (202) 512-2250. 

National Trade Data Bank (NTDB). Operated by the U.S. Department of 
Commerce, the NTDB contains a wealth of trade-related information, 
including Country Commercial Guides. It is available on the Internet 
(www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-
1986 for more information.

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