Date: Sat, 7 Aug 1993 01:48:11 -0700 (PDT) Subject: News: Aug 4-6 (52 KB) Copyright (c) 1993 The British Broadcasting Corporation; Summary of World Broadcasts August 6, 1993, Friday SECTION: Part 4 The Middle East, Africa and Latin America; D. LATIN AMERICA AND OTHER COUNTRIES PAGE: ME/1760/D HEADLINE: PERU; Army General says San Martin Department is free of Tupac Amaru rebels SOURCE: Radioprogramas del Peru, Lima 1800 gmt 3 Aug 93 (Text) The Huallaga Front political and military command has announced that the Tupac Amaru Revolutionary Movement [MRTA] no longer has any presence in San Martin Department. Gen Eduardo Bellido Mora, head of the Huallaga Front political and military command, has announced that the terrorist group has been dismantled following the surrender of 57 of its members. The 57 people accepted the amnesty offered by the government. Gen Bellido Mora told the local press that there were only two MRTA groups in the subregions of San Martin; each group was made up of 10 men. The announcement was made during a special ceremony held at the military camp. Gen Nicolas de Bari Hermoza, commander of the Armed Forces Joint Command and Army Commander General, attended the special event. The only MRTA groups present in the area are preparing to leave San Martin Department. Gen Bellido said that in the light of this, special security measures had been adopted. Copyright 1993 Agence France Presse Agence France Presse August 5, 1993 SECTION: News HEADLINE: Peru assembly approves renewal of presidential term DATELINE: LIMA LIMA, August 4 (AFP) - Peru's constituent assembly approved a constitutional measure Wednesday allowing a president to seek a second term, clearing the way for President Alberto Fujimori to run for re- election in 1995. Fujimori would be prevented from seeking a second term under the existing 1979 constitution, which bars a sitting president who has been in office at least two years from running for re-election. The president's term would remain five years. The vote was 51-24 after a 10-hour debate. Fujimori assumed office in July 1990 and has used his extraordinary powers in a bid to crack down on guerrilla violence in Peru. He grabbed extraordinary powers in April 1992 before allowing elections of the assembly to rewrite the constitution. Martha Chavez, a Fujimori supporter in the assembly, said the president "has kept his promises and in three years in office has had success in fighting subversion, and in modernizing the economy." Opponents of Fujimori said the measure would lead to the "enthronement" of Fujimori and accept what some critics call his "dictatorial desires." The assembly earlier approved the death penalty for terrorist offenses in another victory for Fujimori. Copyright 1993 Business Wire, Inc. Business Wire August 5, 1993, Thursday DISTRIBUTION: Business Editors HEADLINE: Sky Scientific announces intent to acquire Latin American mining properties; vice-president/Latin American Development appointed, Miami office opened DATELINE: BOCA RATON, Fla. Sky Scientific Inc., the precious metals mining and processing subsidiary of Winners Circle Inc. (NASDAQ:WNRS) Thursday announced it intends to acquire, beginning immediately, a substantial interest in precious metals mining properties located throughout Latin America. The company, which since December of last year has acquired properties with an aggregate purchase price in excess of $20 million in the western region of the United States, expects to pursue a similarly aggressive acquisition program in Latin America. ''Our location in South Florida, our knowledge of the region, and the wealth of properties available there, all make this direction a natural one for us,'' said Marco Spirgatis, who has been named vice-president/Latin America Development. He was formerly vice-president/Mining Operations, Western United States, for the company. Mr. Spirgatis is a native of Peru and holds an M.S. in Mining Economics from the Colorado School of Mines. The company has recently opened a new office on Brickell Avenue in Miami, from which its Latin American operations will be conducted. CONTACT: Winners Circle Inc./Sky Scientific Inc., Boca Raton Peter Swanson, 407/362-9494 Copyright 1993 Reuters, Limited August 5, 1993, Thursday, BC cycle HEADLINE: PERU CONGRESS APPROVES REELECTION IN DOCUMENT DATELINE: LIMA, Peru Legislators drafting Peru's new constitution Wednesday night approved a clause which opens the way for President Alberto Fujimori to run for re- election in 1995. After about ten of debate, the 80-member congress dominated by Fujimori's New Majority-Change 90 Party approved a clause which said a president could run for a second five-year term and that he could run once again after skipping a five-year eriod. The clause, which came a day after the congress approved another controversial clause allowing the death penalty for terrorism, was approved with 51 votes in favor and 24 against. Under the current constitution, presidents must wait one five-year term before they can run for president again, and Fujimori would have to wait until the year 2000 to run for a second term. But legislators of several opposition parties said the measure would allow the concentration of power in the hands of an autocratic president. Fujimori, the son of Japanese immigrants who gained power in 1990 riding a wave of voter disgust with traditional politicians, has said the Peruvian people should decide whether reelection is allowed. Copyright 1993 Reuters, Limited August 5, 1993, Thursday, BC cycle SECTION: Money Report. Bonds Capital Market. Domestic Money. International Money. HEADLINE: PERU LEGISLATORS PASS PRESIDENT RE-ELECTION CLAUSE DATELINE: LIMA, AUG 4 Legislators drafting Peru's new constitution approved a clause which could allow President Alberto Fujimori to run for re-election in 1995. The 80-member congress, dominated by Fujimori's New Majority-Change 90 Party, approved a clause which said a president could stand for a second five-year term and that he could stand once again after skipping a five-year period. Under the current constitution, presidents must wait one five-year term before they can run for president again, meaning Fujimori would have had to wait until 2000 to run for a second term. The clause was approved by 51 votes to 24. But opposition legislators said the clause would allow the concentration of power in the hands of an autocratic president. "The new draft constitution is giving birth to a powerful president in which all institutions depend on his decisions, and which is eliminating the possibility of a true balance of powers," said Henry Pease of the Democratic Leftist Movement. The constitution is be put to a referendum that will be accompanied by specific questions on topics such as the death panalty and the presidential re-election. Copyright 1993 Reuters, Limited August 5, 1993, Thursday, BC cycle SECTION: Financial Report. HEADLINE: CENTROMIN WANTS BUYER FOR WHOLE PERU COMPLEX-HEAD BYLINE: By Julia Meehan DATELINE: SANTIAGO, AUG 5 Peru's Centromin, the largest state mining firm with net assets of $ 650 million, will give preference to companies who bid for the entire mining complex during its December privatization, Centromin President Hernan Barreto said. "Our first priority is to sell the company as a whole...we want to sell 100 percent of its shares and not its separate assets," Barreto told a seminar organized by the Peruvian-Chilean Chamber of Commerce. Barroto said selling the complex - made up of La Oroya smelter and refineries, seven mines with 68 million tonnes proven reserves, four hydroelectric plants (183 MW capacity), the Antamina copper deposit, a railway and 23 untapped mineral deposits - as separate assets would be complicated. "Its units are not subsidiaries...selling off Centromin as separate assets would mean a restructurization," he said. Barreto said he was optimistic the complex would be sold as a whole and added that the perfect buying consortia would include a mining company, a mineral trading company, an investment bank and an electricity company. Copyright 1993 Reuters, Limited August 5, 1993, Thursday, BC cycle SECTION: Money Report. Bonds Capital Market. HEADLINE: PERU GNP RISES 7.9 PCT IN JUNE VS JUNE '92 DATELINE: LIMA, AUG 5 Peru's gross national product rose 7.9 percent in June compared with the same month of 1992 and brought GNP to 4.3 percent in the first six months of the year, the National Institute of Statistics and Information (INEI) said. The June figure was 2.6 percentage points higher than May and reflected double-digit growth in fishing, construction and electricity, the INEI said. The fishing sector grew 38.8 pct in that period due to a 299,000-tonne increase in the catch of anchovy made possible by better climatic conditions, INEI said in its monthly report. The construction sector saw a 23.1 percent rise in June compared with the same month of 1993, caused by an increased demand for cement in Peru's internal market, it said. Electricity grew by 14.1 pct due to a higher demand for power by the manufacturing sector, the report said. Manufacturing showed an 8.8 percent rise, boosted by increases in fishmeal processing, the beer and soda industry and capital goods. Agriculture saw an 7.7 percent increase in June, commerce rose 6.6 percent, the assorted "other" sectors grew 5.3 percent and mining saw a 5 percent rise, the INEI said. Peru's economy shrunk by 2.7 percent in 1992, hit by one of its worse droughts in history and a warm water current known as El Nino, which caused a huge drop in fishing production. GNP in June 1992 fell 2.9 percent from the previous June 1991 with the fishing sector contracting by 20.3 percent and agriculture dropping 14.3 percent. Manufacturing fell 8.1 percent due to electricity rationing caused by the drought. In the first six months of this year, the 4.3 pct increase in GNP over the same period of 1992 was boosted mainly by a 51.7 percent rise in fishing output, the INEI said. Mining output rose 7.1 percent from January to June, followed by manufacturing with a 6.7 percent increase and construction with 5.8 percent, the INEI said. The miscellaneous category saw a 2.6 percent rise in the first six months of 1993, commerce increased by 2.2 percent, electricity 2 percent and agriculture and livestock 1.1 percent, the INEI added. Copyright 1993 Reuters, Limited The Reuter Library Report August 5, 1993, Thursday, BC cycle HEADLINE: PERU CONGRESS APPROVES RE-ELECTION CLAUSE DATELINE: LIMA, Peru, Aug 5 Legislators drafting Peru's new constitution approved a clause on Wednesday night which opens the way for President Alberto Fujimori to run for re-election in 1995. The 80-member congress dominated by Fujimori's New Majority-Change 90 Party approved a clause which said a president could run for a second five-year term and could run once again after skipping a five-year period. The clause, approved a day after the congress voted for another controversial provision allowing the death penalty for terrorism, was passed by 51 votes to 24. At present presidents must wait one five-year term before they can run again. Fujimori would have to wait until the year 2000 to run again. Legislators of several opposition parties said the measure would allow the concentration of power in the hands of an autocratic president. Fujimori, the son of Japanese immigrants who gained power in 1990 on a wave of voter disgust with traditional politicians, has said the Peruvian people should decide whether re-election is allowed. Copyright 1993 The Washington Post The Washington Post August 5, 1993, Thursday, Final Edition SECTION: FIRST SECTION; PAGE A25; THE FEDERAL PAGE HEADLINE: Some Wartime Internees Still Fighting for Restitution SERIES: Occasional BYLINE: Jay Mathews, Washington Post Staff Writer If it is possible to measure callousness, Art Shibayama suffered more than most of the people torn from their homes and moved to desolate American relocation camps during World War II. At age 13, he and his family were uprooted from their home in Lima, Peru, and forced by both American and Peruvian authorities to travel not just several hundred miles, like the majority of internees from the western American states, but more than 4,000 miles to a relocation camp in Texas. The other internees were almost all American citizens or permanent U.S. residents, but throughout his internment and for years after in the United States he was forced to remain an illegal alien. Having been born in Peru, he was unwilling to go to Japan, as authorities had hoped, in exchange for American prisoners. The Peruvian government that expelled him as a security threat refused to take him back after the war. He could never inherit his father's shirt factory in Lima and could not go to school because of the need to support his brothers and sisters in the United States. Yet Shibayama received a letter July 2 from the U.S. government telling him he was not entitled to the apology and $ 20,000 check already given to 75,000 others who were sent to or born in wartime relocation camps. Shibayama and about 2,000 other Latin-American internees were consistently denied official travel documents and permanent U.S. status in what the American Civil Liberties Union later called "legalized kidnappings." And since the relocation camp restitution law passed in 1988 appears to cover only those who were U.S. permanent residents and citizens during the war, or those covered under special rulings since, Shibayama does not qualify. "I feel I was cheated," said Shibayama, 63, a retired service station owner in San Jose, Calif. "Especially because I lost my chance at an education." With the fifth anniversary Wednesday of congressional approval of the restitution law, stories like Shibayama's -- once buried deep in Japanese- American family lore and forgotten federal reports -- are becoming an issue again. About 2,200 applicants have been denied the apology and financial restitution provided under the Civil Liberties Act of 1988, and several thousand more are encountering bureaucratic and regulatory barriers that distress many who thought the problem had been solved. For fiscal 1994 $ 100 million is expected to be appropriated for distribution among the approximately 5,000 who are eligible and have not yet been paid. Overall, an estimated 80,000 detainees are said to qualify for restitution. More than a dozen Japanese-American community leaders met Monday with James P. Turner, acting assistant attorney general for civil rights, and yesterday won a major concession granting restitution to children who had been brought into camps by mothers who some officials argued had come voluntarily. One example of an application affected by yesterday's announcement was Naomi Takigawa, a Sunnyvale, Calif., floral designer who was told last year she was "potentially ineligible for redress" even though she was born in the Amache relocation camp near Granada, Colo. Her mother, Mary Tokubo, was allowed to leave Amache to live with her father, Frank Tokubo, while he was training in Army intelligence at posts in Texas and Minnesota. When he was shipped to India, his wife was pregnant and saw no alternative to returning to the camp to be with her parents. "We had a place in Tacoma [Wash.] but we couldn't send her there" because of the restrictions on Japanese Americans, said Frank Tokubo, who eventually made the Army his career. "The only place safe for her was with her parents at the relocation camp." Takigawa had been told by the Justice Department's Office of Redress Administration that her claim was clouded because "it appears that your mother decided to voluntarily enter [or reenter] the camp prior to your birth" and that "you did not sustain any losses or deprivations of liberty" as a result. But a Justice Department spokesman said yesterday that restitution would go to "Japanese Americans born in or brought into internment camps after their mothers had returned to the camps." There was no immediate indication of how Justice would handle at least nine other categories of cases, including that of Mimi Iwatsu. Now a duplicator operator in Concord, Calif., Iwatsu was 12 when U.S. officials persuaded her reluctant mother to sail to Japan as part of an exchange of civilian detainees. Iwatsu's father had been trapped in Japan while on a business trip, and her mother decided it was best to reunite the family. The law, however, bars restitution to anyone who voluntarily left the camps to go to Japan, even for children like Iwatsu who had no choice and who quickly returned to the United States once the war ended. Iwatsu said wartime American officials, eager to send as many people back to Japan as possible, "worked on my mother until she finally gave in." Miya Iwataki, legislative director of the National Coalition for Redress/Reparations, said Turner had indicated that "the door was not closed" on several kinds of difficult cases. A Justice Department spokesman said officials were in particular reviewing the law to see how Latin-American internees like Shibayama "can be found eligible for redress." GRAPHIC: PHOTO, NAOMI TAKIGAWA The Xinhua General Overseas News Service Xinhua General News Service AUGUST 5, 1993, THURSDAY HEADLINE: coffee producers moving to raise coffee prices DATELINE: manila, august 5; ITEM NO: 0805211 coffee producers worldwide are considering forming a cartel to jack up the prices of coffee exports in view of an oversupply situation in the global market, the international coffee organization-certifying agency executive director antonio reyes said today. reyes said the idea to form a cartelized group was floated by top coffee producing countries including brazil, columbia, mexico, guatemala and peru who were planning to cut coffee exports by 20 percent to increase the price of the commodity. according to reyes, coffee producers have incurred a total losses of 12.6 billion u.s. dollars in export earnings since 1989 when the international coffee organization suspended the coffee quota allocation which resulted in the nosedive of coffee prices in the world market. as for the philippines, reyes said, the country has lost some 100 million u.s. dollars in the coffee export for the last four years due to a glut in world supply. the said cartel would benefit not only big time coffee producers but also the small ones such as the philippines, he added. Copyright 1993 Agence France Presse Agence France Presse August 4, 1993 SECTION: Domestic News HEADLINE: Peru assembly approves death penalty for terrorism DATELINE: LIMA LIMA, August 3 (AFP) - Peru's constituent assembly Tuesday approved the death penalty for terrorist offenses, giving President Alberto Fujimori a major victory in his bid to eliminate guerrilla violence in the country. Fujimori, who grabbed extraordinary powers last year before allowing elections of the assembly to rewrite the constitution, has called for capital punishment to help him crush the Shining Path and Tupac Amaru Revolutionary Movement. The 55-21 vote with 77 abstentions after stormy debate will put the death penalty measure in the Peruvian constitution for acts of treason, war and terrorism, according to assembly speaker Jaime Yoshiyama. The Roman Catholic church voiced strong opposition to the measure, and a number of lawmakers cited moral and religious grounds for voting against the proposal. Carlos Ferrero, a member of Fujimori's New Majority alliance said, "Those of us who are in favor of the death penalty are doing what we are doing without joy or enthusiasm, but simply out of necessity in the fight against terrorism." The majority defeated an effort for a roll call vote, saying that those voting for the death penalty might be subject to reprisals by guerrillas. Copyright 1993 Inter Press Service Inter Press Service August 4, 1993, Wednesday HEADLINE: PANAMA: A NEW CHANCE FOR THE DRUG DEPENDENT BYLINE: by Carlos Camarena DATELINE: PANAMA CITY, Aug. 4 Proud of having kicked his 20-year addiction to drugs, Panamanian driver Juan now boasts of the new role he is playing in his community -- helping others fight the drug habit. "I began by first trying out drugs at the age of 11. First I drank alcohol, then I switched to marijuana and hallucinogenic mushrooms," Juan said. Like many Panamanians, Juan's wasted his adolescent years first on alcoholic drinks then hard drugs like cocaine. "I wasted 20 years of my life in drugs, But now I have a new chance," he said. Thirty-three-year old Juan managed to change his life with the help of the non-governmental organization White Cross's rehabilitation program which seeks to rescue drug addicts from the streets. After work every afternoon, Juan attends meetings with the White Cross support group where a team of trained specialists conducts collective therapy and participants share their experiences. Juan admits that drugs lead him to a hostile environment of perversion and delinquency which he was able to leave only with the free medical and psychological help from White Cross. According to a recent study by White Cross, about 4.4 percent of Panama's 2.4 million people consume cocaine -- a number which is double the rate of consumption in Central America. In Peru, which until recently had the highest rate of consumption in Latin America, about 2.6 percent of the total population are hooked on cocaine. Panamanian authorities have been alarmed by White Cross's findings that most drug consumers belong to adolescent groups. The availability of drugs and their low prices in the streets, as well as the proliferation of gangs in Panamanian communities are factors which induce high consumption, experts say. A dose of cocaine costs about one dollar while crack costs 25 cents per gram -- a price most young Panamanians could easily afford. White Cross psychologist Enrique Warner says the consumption of drugs has spread to all social groups in Panama, including colleges and unlikely work sites. He said people usually take drugs due to low self-esteem and peer pressure. Others, meanwhile, seek to escape from their problems. In some cases, persons start as traffickers and then later become drug dependent. Warner said a person who wants to submit himself to treatment must first admit that he is sick and must be willing to go through personal sacrifice to rid himself of his addiction. White Cross offers out-patient treatment for people in serious conditions. Those who have been severely affected are put in a special clinic where they go through de-toxification and re-orientation therapy which could last for months or years, depending on the case. Warner said the support of family and friends is essential in a patient's recovery. Juan agrees. "I feel proud of the change in me, because now my children can walk in the streets without fear of being insulted," he said. Copyright 1993 Inter Press Service Inter Press Service August 4, 1993, Wednesday HEADLINE: PERU: CONGRESS GIVES THE NOD TO CAPITAL PUNISHMENT BYLINE: by Abraham Lama DATELINE: LIMA, Aug. 4 Peruvian President Alberto Fujimori won a major victory in his bid to use the death penalty to deter guerrilla violence when congress voted yesterday in favour of a proposal to include capital punishment in the constitution. The proposal will now be included among points on which Peruvians will vote at a referendum on a new constitution, that will probably be held around October. Various opinion polls show that the majority of the population favours capital punishment. Fujimori sees the death penalty as one of the instruments that would allow the state to end the 13-year insurgency by the "Sendero Luminoso" guerrilla group. Sources close to the government say the guerrillas have murdered more than 9,000 civilians. Defending his proposal, the Peruvian president said life imprisonment had persuaded many imprisoned guerrillas to collaborate with the authorities in exchange for lighter sentences. "Imagine what could be achieved if the death penalty were one of the arguments for bargaining in interrogations. We would be able to speed up the destruction of the Sendero Luminoso apparatus and thus hasten the end of the war," he said. The constitutional assembly (parliament) approved the proposalby 55 votes to 21, with one abstention, following a heated debate both within and outside the legislative college between politicians, jurists, clerics and the military. Within parliament, positions on the issue cut across party lines, except in the case of the Marxist front, whose four representatives voted against the proposal, and the conservative Renovation Party, a Catholic group, whose six congressmen all supported it. Two legislators from the ruling Cambio 19 party voted against, while opposition Popular Christian Party legislators broke ranks on the issue. Those in favour of abolishing the death penalty argue that it has done little to discourage crime in countries where it is in force. They also point to the risk of executing people whose innocence might later be proved. Both sides use the bible and Catholic doctrine to back their stands. Abolitionist Henry Pease, a leftist legislator, said "the Church should unanimously condemn the death penalty and defend the right to life, just as it condemns abortion". Confronted with Pease's statements, Catholic Bishop Ricardo Durand told IPS "the death penalty is a legal sanction against a delinquent, while abortion snuffs out the life of an innocent person". Objectors to the death penalty include former leftist congressman Carlos Tapia, one of the most highly respected analysts of the violence that has gripped Peru ever since Sendero Luminoso began its insurgency in 1980. Applying the death penalty, he said "will be a grave error since it will create myths and heroes. It will bolster the morale of the militants of an organisation that has been in crisis since the capture of its leader, Abimael Guzman, and almost all its national leaders". Guzman and several of his aides were captured in late 1992 and early 1993. Should Peruvians vote in favour of capital punishment, the government will have to pull out of the inter-american human rights convention, which prohibits signatory states from extending the use of the death penalty. Those opposed to capital punishment argue that, should this happen, financial institutions and industrialised countries would respond by reducing their cooperation with Peru because of the government's negative human rights image. But advocates counter that almost all the Western nations that are likely to adopt sanctions against peru include the death penalty in their laws. "The U.S. Congress has just approved the death penalty for those who commit terrorist acts on its territory," commented legislator Carlos Ferrero. "Moreover, we cannot give up our sovereign right to decide how to defend ourselves," he said. Copyright 1993 Reuters Limited The Reuter European Business Report August 4, 1993, Wednesday, BC cycle HEADLINE: COPPER MARKET SQUEEZE SHOWS LITTLE SIGN OF ABATING BYLINE: By Martin Hayes DATELINE: LONDON, Aug 4 A squeeze on world copper supplies for delivery in September and early October showed little sign of abating on Wednesday despite some easing in prices, dealers said. "It is on hold for the moment, with the market off the boil, but I would not be prepared to write it off. Too much has been put into this," one dealer said. During early afternoon trading, three-months copper prices were around $ 1,950 a tonne, some $ 20 above morning lows, but $ 20 off last week's high. The backwardation, or premium of cash over three months, was around $ 5, similar to recent levels, while the September to three-months premium was some $ 15, compared with $ 16 last week. Dealers said the two recent warnings by the exchange, the world's largest metals market, that they were closely monitoring prices had taken some of the steam out of the potential squeeze, although it was highly unlikely that it would evaporate. "Nobody is prepared to sell it at the moment. Most people are more bullish, as it is clear that somebody has control of a large proportion of the stock," another trader said. "If you have deep enough pockets you can maintain or control a market for as long as is needed," he said. But as long as the backwardation does not threaten to get out of hand, the London Metal Exchange is not likely to take any further action in the short term, as enough metal is being made available for those with short positions to cover. World supplies show no signs of drying up. Stocks on the exchange total 464,325 tonnes, a 15-year high. Consumers are concerned that they might be paying more for their copper than a fair market price, but producers such as Chile, Peru, Zambia and Zaire are doubtless happy to be able to boost their earnings of foreign exchange. Also the current strength in the copper market, with prices having rallied from 5-1/2 year lows of $ 1,705 since April, reflects factors other than a potential squeeze. Influential Far Eastern interests have been cited as being behind the tightness, but large cover to supply physical commitments in the region could also justify it. Some traders had said Sumitomo Corp in Japan was behind the squeeze but Yasuo Hamanaka, deputy general manager of Sumitomo's non-ferrous metal department, denied this on Tuesday. Talk also circulated that a major European metal merchant held a large short position. Copyright 1993 Reuters, Limited August 4, 1993, Wednesday, BC cycle HEADLINE: PROPOSAL ALLOWING FUJIMORI'S RE-ELECTION DEBATED DATELINE: LIMA, Peru Legislators drafting Peru's new constitution Wednesday began debating a proposal that would open the way for President Alberto Fujimori to run for re-election in 1995. The debate in the constituent Congress came hours after it approved another controversial measure allowing the death penalty for terrorism. The 80-member constituent Congress dominated by Fujimori's New Majority-Change 90 Party was expected to approve the re-election clause late Wednesday or Thursday morning. Under the current constitution, presidents must wait one five-year term before they can run for president again, and Fujimori would have to wait until the year 2000 to run for a second term. The constituent Congress was elected last November to draft a new constitution and pass some laws after Fujimori disbanded the democratically elected Congress, saying he needed emergency powers to fight leftist guerrillas and carry out economic reforms. The constituent Congress approved the expanded death penalty extension late Tuesday. The clause says "the death penalty can only be applied in cases of treason regarding war and terrorism in keeping with the internal laws and international treaties of which Peru is a part." The current constitution allows for capital punishment in cases involving war with a foreign enemy. The new clause is controversial because Peru signed an international human rights treaty under which signatories which apply the death penalty are forbidden to expand it to other crimes. Most members of Fujimori's party voted for the measure, saying it would dissuade Peruvians from joining guerrilla groups like the Maoist Shining Path which have waged a 13-year war against the state in which more than 27,000 have died. But the issue divided Fujimori's party as well as the opposition. Human rights groups said approval of the measure would further damage Peru's human rights image just as the statistics on forced disappearances and extrajudicial killings were falling. The constitution is be put to a referendum that will be accompanied by specific questions on such controversial topics as the death panalty and presidential re-election. Copyright 1993 Reuters, Limited August 4, 1993, Wednesday, BC cycle HEADLINE: PERU CONGRESS VOTES DEATH PENALTY FOR TERRORISM DATELINE: LIMA, Peru Peru's constituent congress voted Tuesday night to include in the draft of a new constitution a death penalty clause for terrorist crimes. After nine hours of debate, the 80-member congress approved a clause which said "the death penalty can only be applied in cases of treason and terrorism according to the internal laws and the international treaties to which Peru is a part." In a secret ballot, 55 congressmen voted for the measure, 21 against and one abstained. The wording of the clause, however, raised questions about whether the death penalty would actually be applied because Peru would have to renounce the San Jose Pact, an international human rights treaty which explicitly forbids it. Some observers said the majority was trying to satisfy the public in favor of the measure and avoid the possible international ramifications of its approval.. Most of the members of President Alberto Fujimori's party voted in favor of the measure, saying it would serve to dissuade Peruvians from joining guerrilla groups waging a 13-year war against the state. But the issue divided members of that party as well as those in the opposition. The leader of the largest opposition party, Lourdres Flores, said the death penalty was justified given the damage caused by the guerrilla groups. However, Luis Bedoya of the same party said: "We are appealing to violence to erradicate violence. We are using terrorism of the state to combat terrorism." Human rights groups said approval of the measure would further damage Peru's rights image just as the statistics on forced disappearances and extrajudicial killings were on the decrease. There has also been concern that the death penalty would be applied retroactively against guerrilla leaders like Shining Path chief Abimael Guzman, against whom Fujimori said he would be in favor of applying capital punishment. The entire constitution is expected to be put to a referendum that will also be accompanied by specific questions about controversial issues like the death penalty and immediate presidential reelection. Copyright 1993 Reuters, Limited August 4, 1993, Wednesday, BC cycle SECTION: Bonds Capital Market. Domestic Money. HEADLINE: PERU SAID TO BE DRAGGING FEET ON USE OF DEBT PAPER BYLINE: By Mary Powers DATELINE: LIMA, AUG 4 Interest is running high in the use of Peruvian debt paper to purchase state-owned enterprises but the government appears to be dragging its feet on the issue, international bankers in Lima say. An economy ministry offical said there could be a decision on the issue within the next two weeks. The market for Peruvian debt paper has heated up since New York-based bankers said Peru had asked for a mid-August meeting with the Citbank- led Bank Steering Committee. Finance ministry sources said later the talks would be premliminary. "There is a big appetite for Peruvian debt paper," a Lima- based international banker told Reuters. Peruvian loans on the secondary loan market reached 39.25 percent of face value on Tuesday, up 2.25 percent since the talks were announced and a huge jump over their sub-20 levels at the start of the year. But bankers said the government appears to be lacking decision or a willingness to allow debt paper in the sale of big state firms up for privatization this year. "They have been moving very slowly," said the banker. He added he thought government advisers had yet to convince President Alberto Fujimori of the benefits of debt-for-investment swaps. Expectation was high in banking circles here that Fujimori could make some announcement on the use of debt paper in his State of the Nation address last week. But Fujimori, who said recently he would not favor using debt paper in the upcoming sale of telecommunications firms and Lima's electricity company, only reiterated his government had not allowed the wholesaling of state companies. Bankers and government sources said key privatization officials -- including Daniel Hokama, the energy and mines minister who oversees the process -- now favored the swaps. Carlos Montoya, executive director of the Committee for Promotion of Investment (COPRI), said last month, "Everything depends on the decision of the Economy and Finance Ministry (MEF)," adding the COPRI was willing to adopt such a mechanism to attract more competition in the sale of big firms. A MEF official said debt advisers had met with COPRI officials on the issue and that further meetings were planned. "The question is how it will be used because we don't want to have problems in implementation." the official said. "I don't think it will take longer than 10-15 days to define." Bankers and government officials interviewed said it would be more beneficial for Peru to allow the use of debt paper than to service the debt because the resources for debt payments are scarce, as is cash for purchasing state firms. "I think Peru should allow some debt paper deals, reduce the debt with commercial bank creditors and then try to negotiate the remainder," said Rafael Venegas of Citibank's Lima office. Citibank holds $ 91 million in debt paper. Peru owes commercial banks about $ 4 billion in long-term debt, $ 1.2 billion in short-term notes and $ 4.6 billion in back interest. Some bankers say debt paper can still go up further, with estimates ranging anywhere from 50 to 65 percent of face value. Fujimori, who prefers cash for social programs, has said he would seek to prevent Peruvians who bought up debt paper at as low as 4 percent of face value before he took office from profiting on speculation of the paper. Copyright 1993 Reuters, Limited August 4, 1993, Wednesday, BC cycle SECTION: Money Report. Bonds Capital Market. HEADLINE: PERU WHOLESALE PRICES UP 1.7 PCT IN JULY DATELINE: LIMA, AUG 4 Peru's wholesale prices increased 1.7 percent in July, down two-tenths of a percentage point from June, the National Institute of Statistics and Information (INEI) said. Wholesale prices in the first seven months of the year reached 22.1 percent, compared with 21.6 pct in the same period last year, the INEI said. Compared with July 1992, the wholesale price index was down 1.3 percentage points, it added. Nationally-produced products increased 1.7 percent while imports goods rose 1.9 pct, it said. The Peruvian wholesale goods which increased most in July were fish (4.9 percent) and manufactured goods (1.8 percent) while biggest increases in imports were seen in agriculture and livestock goods (2.8 percent) and manufactured items (1.7 percent). Peru consumer prices increased 2.7 percent in July up nine- tenths of a percentage point from June. Copyright 1993 Reuters, Limited August 4, 1993, Wednesday, BC cycle SECTION: Money Report. Bonds Capital Market. HEADLINE: LATIN AMERICAN DEBT REBOUNDS, RUSSIA PROFITS TAKEN DATELINE: NEW YORK, AUG 4 Most Latin American debt traded quietly upwards Wednesday with Peru and Ecuador leading the way, while Russian debt swung wildly and ended lower. Traders said institutional buyers were propping up the unrestructured loans of Peru and Ecuador, acting more on hunches than any fundamental news. In Peru on Wednesday bankers said they were concerned that the government is moving slowly on announcing whether debt paper could be used in privatizations. Nevertheless, Peruvian loans continued to rally, climbing a point to 40-1/4 percent. Ecuador rose 1-1/8 to 34-1/2 percent bid. Traders said Argentine paper was initially buoyed by a favorable inflation report showing the consumer price index rose 0.3 percent in July, the lowest monthly increase under the current administration. Later, Economy Minister Domingo Cavallo said he expects single-digit annual inflation by the year end. Argentina floating rate bonds, currently traded on a when-issued basis, briefly fell after news that the country and its agent bank Citicorp are seeking to extend the deadline for issuing the bonds out of escrow beyond a September 1 deadline. FRBs were quoted at 72-1/2 percent bid. Argentine pars were down 1/8 over Tuesday's close at 55-3/4 percent. In Brazil, IDUs rose 1/4 point which traders said partly reflected continued hopes that somehow Brazil's lurching Brady bond deal will get done. On Tuesday Citicorp chairman John Reed said the country did not technically have to wait for an International Monetary Fund accord to close the deal. Reaching an agreement with the IMF has recently proved elusive for the economically stagnant country. Traders said IDUs were also catching up with Brazil exit bonds that have rallied recently and weakened Wednesday. "There's not a lot of correlation between IDUs and the debt accord," a trader said. He explained the rise simply: "A lot of people who have been lifted out of their exit positions have replaced them with IDUs." Brazil IDUs closed at 74-1/8 percent bid, and the exits at 58-1/2 percent. Russian VEB dollar debt which has risen as high as 43 percent since the signing of a debt accord last Friday, fell victim to some mild profit- taking and fell to 39-3/4 percent bid. -- Henry Tricks (212) 603-3389 Copyright 1993 Reuters, Limited August 4, 1993, Wednesday, BC cycle SECTION: Money Report. Bonds Capital Market. Domestic Money. International Money. HEADLINE: PERU'S CAMET ANNOUNCES DEBT TALKS WITH BANKS DATELINE: LIMA, AUG 4 Economy minister Jorge Camet announced that Peru will begin talks with the Citibank-led Bank Steering Committee on Aug 25 on treatment of some $ 6 billion debt with its creditor banks. "Following these preliminary conversations, we can establish a schedule of conversations with the international creditor banks, which will be very long and very difficult," Camet said in a speech at the Exporters Association. He called the talks "the true reinsertion," referring to the term used in Peru for the process by which the country has returned over to the international financial community. "This step is very important because it will permit us to reduce even more the co-efficient of country risk which makes external credit more expensive," he said. He added that Peru's obligations with creditor banks have been a major cause of additional costs to the private sector. Bankers say Peru, isolated from world debt circles when former president Alan Garcia capped debt payments in 1986, in total owes about $ 10 billion in principal and arrears. Optimism that Peru will settle its private sector debt has risen following accords with the International Monetary Fund, the World Bank and a debt restructuring deal with the Paris Club of creditor nations. Camet said this last phase of "reinsertion" would help to "erase the image of Peru as a country which fails to meet its external obligations." An Economy Ministry official said a negotiator has yet to be named to lead the talks, the first between the steering committee and President Alberto Fujimori's government. Peru's total foreign debt is about $ 23 billion, most of it owed by the public sector. Copyright 1993 Pacific Press Ltd. The Vancouver Sun August 4, 1993, Wednesday, FINAL EDITION SECTION: Pg. A10 HEADLINE: Peru begins to recover from 13-year war BYLINE: HUGH O'SHAUGHNESSY; OBSERVER NEWS SERVICE DATELINE: Lima, Peru Peru is Peace said the banners carried through the streets of Lima last weekend when 40,000 people marched to demand an end to violence. For now the slogan is too hopeful: men and women are still dying in the war between the government and the guerrillas. But, after many false starts, the demonstrators may have a chance of success: Abimael Guzman, the Red Sun of Peru whose rays scorched the lives of 25,000 people, has set. For the leader of the Sendero Luminoso, the Shining Path movement, his plan for a Maoist world revolution reaching out from the Andes is over. Also fading is the political dream of a fierce group of Peruvian women whom the Red Sun recruited, trusted and promoted to the highest ranks in his army of terror. At one point two out of the three members of Sendero's ruling Permanent Committee and nine of the 19 members of its Central Committee were women. Guzman has now started a sentence of life imprisonment. Dressed in black and white striped prison uniform and constrained in a cage like a dangerous animal, the Red Sun is held at the naval base at Callao, the dusty port of Lima where it never rains. The government of President Alberto Fujimori intends he should stay there until he dies. Though armed attacks continue, Sendero's challenge is slowly abating and the country is beginning to recover from a war in which tens of thousands have died over the past 13 years. Such was his intellectual pre- eminence over his followers that it is extremely unlikely the movement will recover from his imprisonment. As the secret life of Sendero emerges from captured records, experts are slowly explaining Guzman's political rapport with women. Marriage went with politics. In 1964, when he was 29, he married 18-year-old Augusta Latorre, the daughter of a Communist leader in the Andean city of Ayacucho at whose university he was teaching. They never had children, although he had a daughter from a previous liaison. Augusta became Guzman's closest political ally under the nom de guerre, Comrade Norah, until her death in unclear circumstances in 1988. She was the archetype of a large number of women who devoted themselves to the cause, risking not just torture and death at the hands of their captors, but also almost certain rape. Her steadfastness was probably one why Guzman promoted women in his organization. So close were men and women in the first days of Sendero that Guzman and his associates were known as the Holy Family. As could be expected in Sendero circles, the plight of Peruvian women was given an ideological slant reaching back to Engels and based in women's lack of control over material possessions. But the organization definitely did not confuse the revolutionary role of women with mere feminism. Catalina Adrianzen, Sendero's principal ideologue on the role of women, wrote severely: Marx, Engels, Lenin and Mao Tse-tung put forward the thesis of women's emancipation, not that of female liberation. The latter appears historically as a bourgeois thesis in whose depths is hidden the opposition of men and women through sex and which camouflages the root of the oppression of women. The senderistas, male and female, had a straightforward message for peasants in the Andes and, later, slum-dwellers in Lima: a rotten state and the foreign imperialists who propped it up had to be annihilated. Those who dared to assume elective office risked their lives as scores of mayors and local councillors were murdered. Soldiers and police were obvious targets; when senderistas captured a police strongpoint in the valley of the Huallaga River, centre of the cocaine trade, the major in command was forced to raise the hammer and sickle before he was shot dead by a nine-year old senderista. A community leader, Maria Elena Moyano, who organized soup kitchens in the Lima slum of Villa El Salvador, was shot and her corpse blown to bits by explosives strapped to her chest. An elderly Australian nun, Irene McCormick, was accused of being an agent of American imperialism and was murdered. Car bombs were detonated in city centres and caused indiscriminate slaughter. Sendero's women played an ample and very conscious part in all these activities. Indeed, they were on average better educated than their male comrades. Much of Sendero's appeal to women arose from the social frustrations they suffered. Education for Peruvian women, particularly at primary and university level, became more common during the Eighties. But there were limited job opportunities for them, and a generation of women emerged which not only received less than its fair share of work, but was also very conscious of that discrimination. The social frustration of Peruvian women and the daily grind which most of them had to endure were strong strands among many, it seems, that pushed some women into the front rank of Sendero, and made them happy to carry out the most bloody tasks. Now that the Sendero dream is fading, some fierce Peruvian women must find a more effective and less violent outlet for their frustrations and their desire for change. The worst thing that could happen now, as many senior officers who led the fight against Sendero realize, is that the crushing of the guerrillas encourages Peru's leaders to let the country relapse into the bad old autocratic ways, where the rich live like viceroys and the cholos (peasants) from the mountains are allowed to fester in poverty. But it looks as if the worst is indeed happening. For a year, the democratically-elected President Fujimori has been acting like a dictator and the army is showing signs of returning to its old barbarism, putting tanks on the streets whenever its atrocities are challenged. The Xinhua General Overseas News Service AUGUST 4, 1993, WEDNESDAY HEADLINE: peru: 57 members of mrta surrender to authorities DATELINE: lima, august 4; ITEM NO: 0804030 a total of 57 members of the tupac amaru revolutionary movement (mrta), surrendered to the peruvian armed forces between july 9 and 31, general eduardo bellido mora, political military commander-in-chief of the huallaga front, announced tuesday. in a press conference, the general presented an arsenal of arms and explosives which had been seized from the mrta during recent operations in the san martin region. the government has issued a law of repentance calling on the mrta to surrender. with what the government called 'voluntary surrender' of this anti-government group, the northeastern front of the tupac amaru revolutionary movement has been completely disbanded, according to the military commander.