All amounts in U.S. dollars. Numbers in italics are estimates, usually based on the closest year for which data are available.

All amounts in U.S. dollars. Numbers in italics are estimates, usually based on the closest year for which data are available.

All amounts in U.S. dollars.

All amounts in U.S. dollars.

Document: 2008 End-Use Monitoring Report

Program: International Narcotics Control and Law Enforcement

LIMA

Background

EUM Program Coordinator
Richard Loveland, Tel. 618-2815, rloveland@naslog.org.pe

Inventory System
Post uses Microsoft Access software with an integrated bar code system.

Staff Members EUM Responsibilities

Logistics Staff
The Logistics Management Adviser in Lima is principally responsible for developing and implementing EUM procedures. He monitors the scheduling of inspections and actively participates in EUM inspections. He participates and monitors reconciliation of inventories and discrepancies. He instructs staff; monitors and documents donations and transfer and disposal of materials. He is also responsible for Customs clearances of all counternarcotics materials.

The Senior Logistics Supervisor in Pucallpa actively participates in EUM inspections and monitors reconciliation of inventories and discrepancies. He instructs staff and monitors and documents the disposal of materials at the Forward Operating Base (FOB).

Two Logistics Specialists in Lima and one Logistics Technician in Pucallpa, along with other logistics duties, are responsible for a large percentage of the travel to counterpart sites to physically verify existence, condition and proper use of donated materials. This staff works closely with the Logistics Management Adviser in developing and implementing EUM procedures. It recommends and verifies disposal of inoperative or obsolete materials.

The Vehicle Maintenance Supervisor works closely with counterparts to recommend, coordinate, and supervise disposal by auction or other means of obsolete and inoperative donated vehicles. On occasions, they coordinate and oversee repairs of donated vehicles.

The Logistics Customs Agent, along with other Customs and freight related duties, obtain Customs clearances for all counternarcotics materials. He also participates in preliminary inspections and inventories in bonded warehouses prior to Customs release.

The Logistics Customs Dispatchers conduct preliminary inspections and inventories received at bonded warehouses to facilitate Customs release and to deliver materials to the NAS warehouse.

NAS Aviation Staff
The Embassy Field Coordinator coordinates all flights, fixed-wing and rotary-wing, and monitors aircraft.

The NAS Field Adviser/Security Specialist, along with the daily duties, is responsible for providing oversight of all USG materials or equipment donated and or used by the counterparts and for advising Logistics of any notable damage or missing items.

NAS Police Staff
The NAS Senior Police Adviser authorizes donations; the Deputy Police Adviser oversees use and maintenance of donated equipment; the Logistics Administrative Coordinators receive and distribute materials to Forward Operations Locations (FOL"s); the Logistics Coordinators maintain inventories.

NAS Posts/Maritime Staff
The NAS Port Program Adviser authorizes and oversees use of donated equipment and materials; the NAS Port Police Program specialist oversees use and maintenance of donated equipment.

CORAH staff-CORAH is the GOP coca eradication agency. CADA is a subsidiary of CORAH and is responsible for coca management and eradication verification. CADA is funded by the NAS under a different budget. The CORAH staff is also responsible for oversight of NAS funding of the Instituto de Cultivos Troppicales (ICT), a NGO that conducts studies on cacao and coffee cultivation as alternative crops to coca. Additionally, ICT conducts soils studies and extension training for farmers.

The Narcotics Control Officer authorizes donations; the Eradication Operations Officer is principally responsible to oversee correct usage and maintenance of NAS donated property.

ICT-This institute is mentored by the NAS CORAH Project and is visited periodically for oversight of activities funded by NAS and EUM.

DEA-The Program Logistics Specialist for the Sensitive Investigation Unit is responsible for conducting an annual inventory of donated items and delivering equipment to Peruvian National Police (PNP).

MAAG-The Air Force Section Chief is responsible for developing and implementing EUM Standard Operating Procedures for the MAAG, and actively participates in EUM inspections when visiting Peruvian Air Force (FAP) installations throughout the entire country.

The Army Section Chief actively participates in EUM inspections when visiting Peruvian Army installations throughout the entire country. He also monitors donations to EP.

The Navy Section Chief actively participates in EUM inspections when visiting Peruvian Navy (MGP) installations throughout the entire country. He also monitors donations to MGP.

All listed counterparts have facilitated access and provided cooperation during EUM inventories/inspections and, in general, responded well in inventory reconciliation when requested. Most counterparts also maintain detailed inventories of materials received. NAS Logistics has not experienced any serious problems with counterpart cooperation.

Counterpart Agencies

Superintendencia Nacional de Aduanas (SUNAT)
Aduana-Aerea brigade de operaciones expeciales (SUNAT-AERA)
Intendencia Nacional de Prevencio Del Contrabando Y control Fronterizo- Boe (SUNAT-MARTIMA)
Intendencia de Aduana Postal (SUNAT_POSTAL)
Autoridad Portuatia Nacional OPD (Organiso Publico Decentralizado (APN) Business Allinace for Secure Commerce–Basic Peru
Centro de Informacion y Educacion Para la Prevencion del Abuso de Drogas (CEDRO)
Centro de Estudios de Prevencion Tratamiento Investigacion y de Salud (CEPTUS)
Capital Humand y Social Alternativo (CHSA)
Control y Reduccion del cdultivo de la Coca en el Alto Huallaga (CORAH)
Cuerpo de Asistencia para el Desarrollo Alternativo (CORAH-CADA)
Cooporacion Peruana de Aeropuertos Aviacon Comerciall S.A (CORPAC) Presidente de la Corte Superior de Ucayalo (Juzgado de Aguaytia) (COORTE SUPERIOR UCAYALI)
Centro de Estudios y Assesoria en Conductas de Riesgo Social y Promocion
Desarrollo Integral (CREWSIER)
Comision Nacional Para el Desarrollo y vida sin Drogas (DEVIDA)
Dialogo Ciudadano (Diqalogto Ciudadano)
Direccion General de Migraciones y Naturalizacion (DIGEMIN)
Ejercito Peruano (EP)
Fuerza Aerea del Peru (FAP)
FAP-Comando de Operaciones-Centro de Informacion de Defensa Aerea Nacional (FAP-COMOP-CIDAN)
FAP-Direccion de Inteligencia-Centro de Inteligencia Aerotecnica (FAP-DIFAP-CINAT)
Congregacion Hermanas Adoratrices (HNAS DORATRICES) Instituto de Cultivos Tropicals (ICT)
Instituto de Educacion y Salud (IES)
Asociacion Kallpa-Para la Promocion Integraol de lea Salud y el Desarrollo (KALLPA)
Ministerio del Interior-Oficina de Asuntos Internos (MINISTER-ASUNTOS INTGERNOS)
Ministry of Interior-Oficina de comunicacion Social MINISTER-OCOSMIN)
Minister-Oficina Ejecutva de Control de Drogas (MINISTER-OFECOD) Mininter-Oficina General de Defensa Nacional (MINISTER-OGDEN)
Ministerio Publico-Fiscalio de La Nacion-Segunda Fiscalia Suprema Especializada en (MP-FN-SFSP-FEA)
Ministerio de Transportes y Comunicaciones-direccion Aeronautica Civil- Direccion Di (MTC-DGAC-TID)
Marina de Guerra del Peru-Direccion de Capitania de Puertos-Ofinina de Coordinacion (NAVY_DICAPI)
PNP-Direccion de Instruccion Escuela Tecnico Superior (PNP-DINST-ETS)
PNP-Direccion Nacional Antidrogas-Centro Operative Polical (PNP- DIRANDRO-CEOPOL)
Policia Nacional del Peru-Direccion Nacional Antidrogaqs-Destacamento Antidrogas (PNP-DIRANDRO –DAD)
Policia Nacional del Peru-Direccion Nacional Antidrogas-Departmento de Operacion (PNP-DIRANDRO-DEPOTAD)
Policia Nacional del Peru-Direccion Nacional Antidrogas-Division de Investigacion (PNP-DIRANDRO-DICIQ)
Policia Nacional del Peru-direccion Nacional Antidrogas Division de Investigacion (PNP-DIRANDRO-DICIQ-DIE)
Policia Nacional del Peru-Direccion Nacional Antidrogas-Division of Investigacion Fim (PNP-DIRANDRO-DINFI)
Policia Nacional del Peru-Direccion Nacional Antidrogas-Direccion (PNP- DIRANDRO-DIRECCION)
Pollicia Nacional del Peru-Direccion Nacional Antidrogas-Division de Investigacion (PNP-DIRANDRO-DITID)
Policia Nacional del Peru-Dieeccion Nacional Antidragas-Division de Investigation (PNP-DIRANDRO-DITID-AIR)
Police Nacional del Peru Direccion Nacional Antidrogas-Division de Investigacion (PNP-DIRANDRO-DITID-DIE)
PNP Dirandro Division de Operaciones Especialses Antidrogas (PNP- DIRANDRO-DIVOEAD)
PNP-Dirandro Division de Operaciones Especiales Antidrogas-Departmento de operations (PNP-DIRANDRO-DIVOEAD-DEPOES1)
PNP-Dirandro-Division de Operaciones Especiales Antidrogas-Departmento de Operations (PNP-DIRANDRO-DIVOEAD-DEPOES2)
PNP-Dirandro-Division de Operaciones Especiales Antidrogas-Departmento de Operations (PNP-DIRANDRO-DIVOEAD-DEPOES3)
PNP-Dirandro Divoed-Departmento de Operaciones Especiales –Control de Insumos (PNP/DIRANDRO-DIVOEAD-DEPOES-CIQPF)
PNP-Dirandro Division de Operaciones Especiales Androgas-Unidad Canina (PNP-DIRANDRO-DIVOEAD-K9)
PMP-Direccion Nacional Antidrogas Division de Operaciones Tacticas Antidrogas (PNP-DIRANDRO-DIVOTAD)
PNP-Direccion Antidrogas-Equipo Inteligencia (PNP-DIRANDRO-DIVOTAD- EQUINT)
PNP-Dirrecion Nacional Antidrogas Division de Prevencion del Trafico Ilicito del Drug (PNP-DIRANDRO-DIVITID)
PNP-Dirandro Division de Prevencion del /trafico Ilicito de Drogas Proyeccion Social (PNP-DIRANDRO-DIVPTID-PROY.SOCIAL)
PNP-Dirreccion Nacional Antidrogas-Escuela de Investicion del Trafico Ilicito de (PNP-DIRANDRO-ESINTID)
PNP-Direccion Nacional Antidrogas-estado Mayor (PNP-DIRANDRO- ESTADO-MAYOR)
PNP-Direnado-Jefature de Estado Mayor (PNP-DIRANDRO-JEM) PNP-Dirandro-Oficina de Administration (PNP-DIRANDRO-OFAD) PNP-Dirandro-Oficina Administrativa-Unidad de Recursos Humanos PNP-Direccion de Operaciones Antidrogas Oficina de Analysis Especial (PNP- DIRANDRO-OFANESP)
PNP-Direccion Nacional Antidrogas Oficina de Criminalistica (PNP/DIRANDRO-OFCRI)
PNP-Direccion Nacional Antidrogas Oficina de Inteligencia (PNP-DIRANDRO of INT)
PNP-Direccion Nacional Antidrogas Departmento de Opeeraciones TacticasAntidrogas (PNP-DIREADRO-OFINT-RIG)
PNP-Direccion Nacional Antidrogas-Ofina de Inteligencia-Unidad de contrainteligent (PNP-DIRANDRO-OFINT-UNICOUNT)
PNP-Direccion Nacional Antidrogas-Odicina de Telematica (PNP- DIRANDRO-OFITEL)
PNP-Direccion Nacional Antidrogas Secretaria (PNP-DIRANDRO SECRETARIA)
PNP-Direccion Nacional Antidrogas Telematica (PNP-DIRANDRO TELEMATICA)
PNP-Direccion Nacional Antidrogas Unidad de Informacion (PNP- DIRANDRO-UNINFO-RR-PP)
PNP-Direccion Antigragas Unidad de Planeamiento Operative (PNP-DIRANDRO UPO)
PNP-Direccion de Aviacion Policial (PNP-DIRAVPOL)
PNP-Direccion Ejectiva de Operaciones Policials (PNP-DIREOP)
PNP Direccion General Tribunal Adminitrativo Disciplinary Nacional (PNP-DIRGEN-TRIADN)
PNP-Direccion de Investigacion Criminalistica y Apoyo a la Justicia (PNP-DIRINCRI)
PNP-Direccion de Inteligencia (PNP-DIRINT)
PNP-Direccion de Seguridad Publica-Division de Operacciones Especiales (PNP-DIRSEPUB)
PNP-Direccion de Turismo y Ecologia Division de Policia Ecologica (PNP- DITUEC-DIVPOECA)
PNP-Division Antidragas (PNP-DIVANDRO)
PNP-Division Antidragas Departmento Caning Political (PNP-DIVANDRO- DEPCAPOL)
PNP-Direccion Frente Policial Huallaa Oficina de Inteligencia Provincial (PNP FPH-OFINPRO)
PNP-Direccion Frente Policial Huallaga-Oficina de Inteligencia Provincial (PNP-FPH-OFINPRO)
Xi Direccion Territorial de Policial Ayacucho (PNP-IX-DIRTEPOL)
PNP-Seguridad del Estado Departmento de Extranjeria Aijch (PNP-SE-DEPEXT)
PNP-V Region Policial Direccion General (PNP-V-REGION DIRECCION)
PNP-V Region Policial Unidad de Inteliencia (PNP-V REGION INTELLIGENCIA PRISMA)
Minisgerio de la Produccion Direccion de Insumos y Productos Quimicos Fiscaizados Proyecto luli (PRODUCE PROYECTO LULU)
Servicios Urbanos y Mujeres de Bajos Ingresos (SUMBI)
Unidad de Ingelobencia Financiera (UIF)

Receipt
Items authorized by Project Advisers for donation are issued to counterparts with a computerized document of issue detailing description, model, make, serial number, EUM bar code number, etc. and followed up with a letter of donation presented to the commander/director of the unit/section stating the terms to include a recall if the item is found not to be used as indicated. The NAS has included a statement in its donation letters clarifying that if no acceptance of donation response is received within 30 days of the letter, NAS will consider the donation as accepted. This was required due to some counterparts delaying acceptance and official transfers to them thus compelling the NAS to cover vehicle insurance and other owner related expenses.

Monitoring Procedures

On-Site Inspections
There were 87 scheduled inspections during 2008 of 4,925 items. The percentage of donated items was 33%. The balance was inspected in 2007. Unscheduled inspections are practically impossible as coordination for access to bases, warehouses and offices are normally granted by commanders/directors upon receipt of a written request.

SUNAT-ADUANAS-AERA 32
SUNAT-ADUANAS-MARTIMA 141
SUNAT-ADUANAS-POSTAL 9
CEDRO 32
CEPTIS 5
CORAH 357
CORAH-CADA 35
CORPAC 5
CRESAR 1
DEVIDA 12
FAP 5
HNAS ADORATRICES 1
ICT 187
KALLPA 3
MP-FN-SFSP-FEA 90
MTC-DGAC-TID 137
NAVY-DICAPI 27
PNP-DINST-ETS 2
PNP-DIRANDRO-ASJUR 1
PNP-DIANDRO-DEPOTAD 137
PNP-DIRANDRO-DICIQ 16
PNP-DIRANDRO-DICIQ-DIE 2
PNP-DIRANDRO-DIRECCION 5
PNP-DIRANDRO-DITID 11
PNP-DIRANDRO-DITID-SERPOST 1
PNP-DIRANDRO-DIVEAD 2
PNP-DIRANDRO-DIVOEAD-DEPOES1 4
PNP-DIRANDRO-DIVOEAD-DEPOES2 1
PNP-DIRANDRO-DIVOEAD-DEPOES-CIQPF 2
PNP-DIRANDRO-DIVOTAD 69
PNP-DIRANDRO-DIVPTID 1
PNP-DIRANDRO-DIVPTID-PROY.SOCIAL 2
PNP-DIRANDRO-ESINTID 3
PNP-DIRANDRO-JEM 13
PNP-DIRANDRO-OFAD 25
PNP-DIRANDRO-OFAD-UNIREHUM 1
PNP-DIRANDRO-OFCRI 9
PNP-DIRANDRO-OFINT 35
PNP-DIRQANDRO-OFINT-UNICOINT 2
PNP-DIRANDRO-OFITEL 6
PNP-DIRANDRO-SECRETARIA 1
PNP-DIRANDRO-UNINFO-RR-PP 1
PNP-DIRAVPOL 35
PNP-DIRGEN-TRIADN 3
PNP-DITID-DEPCAPOL 1
PNP-DIRANDRO 12
PNP-SE-DEPEXT 2
PRODUCE 8
SUMBI 1
TOTAL ITEMS 1633
TOTAL SITES 87

Secondary Method of Monitoring Resource Status

The NAS requests annual inventories from all counterparts in possession of commodities donated under the bilateral agreement. Counterparts normally comply.

In some cases involving extremely small and remote sites with just a few items, NAS Logistics communicates with the counterpart and without stating the serial number requests that they confirm an item and give NAS the correct serial number on specific pieces of equipment. When the counterpart responds with the correct number, it would indicate that the piece of equipment is at that location. The NAS will then request operational status. If the counterpart does not respond with the proper serial number, NAS Logistics conducts follow up questioning.

Status-Commodities

Canine Program
Thirteen (13) dogs were provided to the DNCD in 2005. Four are in Punta Cana; five in La Romana; four in Santo Domingo. They are used for explosives detection. Twelve are in good health; one dog in Punta Cana is ill and will soon be retired.

Computer Equipment
The NAS continues to donate computer systems to Peruvian counterpart institutions for use in counternarcotics and data keeping. These systems are located at Forward Operating Locations (FOL's) and maintained by the NAS IT section. As the units become obsolete, they are upgraded or replaced with new units. Computer systems have been donated to NGO"s with the majority located in Lima. Maintenance for the systems remains the sole responsibility of the counterpart.

Communications Equipment
Additional base stations and hand-held radios were donated to the Peruvian Police and CORAH to improve coordination and communications for interdiction and eradication. These items are maintained by the counterpart with oversight from the NAS and monitored during EUM inspections.

Surveillance Equipment
The NAS Port program donated a computerized surveillance system to augment an existing system at the sea port in Callao. The existing system had several serious blind spots which make it possible for Port personnel to manipulate cargo in shipping containers after they had been inspected. During installation of the additional system, the NAS IT encountered considerable interference and delay by Port authorities which were finally overcome and the project was compeleted. Although the NAS IT has spent a considerable amount of time training SUNAT personnel to monitor and record events at the Port, consistent results continue to be hampered.

Vehicles
NAS Peru donated a total of 43 vehicles during 2008, 33 of which are motorcycles. The major of these vehicles were donated to the Peruvian Police Drug Units. The units have responsibility for maintenance. The NAS occasionally funds and oversees some repairs and maintenance due to lack of funding on the behalf of the GOP.

CORAH

Truck
16
Pickup
13
Motorcycle
3
Van
2
sedan
2

ADUANAS MARITIMA
Vans
3
Sedan
1

CORAH-CADAS
Pickup
12

CORPAC
Aircraft tractor
2

Vessels
The NAS did not donate any vessels in 2008. The vessels donated in prior years are maintained by the Peruvian Coast Guard. Many of the smaller craft are presently inoperative due to lack of funds.

AVY-DICAPI
Survival raft 6 Boston Whaler 3
22-foot Simai 2
Motorcycle 1

DIRANDRO-DEPOTAD
Aluminum boat 4 Zodiac 3
22-foot Simai 2
2 1⁄2 lb wooden boat 1
Aluminum boat

DIRANDRO-DIVOTAD
7

Weapons
All weapons are closely monitored by NAS personnel during routine inspections. They are distributed in various locations throughout the country, mostly on Peruvian Police bases.

NAVY-DICAPI
M-60 rifle 80

DIRANDRO-DAD
M-60 rifle 14

DIRANDRO-DEPOTAD
5.56 45 mm rifle 98
M-60 rifle 48

DIRANDRO-DIVOEAD-DEPOES2
5.56 45 mm rifle 19
M-60 rifle 4

DIRANDRO-DIVOEAD-DEPOES3
M-60 rifle 4

DIRANDRO-DIVOEAD-DEPOES-CI
M-60 rifle 1

DIVOTAD
5.56 45 mm rifle 10 M-60 rifle 27

DIRANDRO-DIVOTAD
5.56 45 mm rifle M-60 rifle
5.56 45 mm rifle M-60 rifle

DIRANDRO-OFAD
5.56 45 mm rifle 5
M-60 rifle 2

DIRAVPOL
Armament Systems
15
M-60 rifle
45

Aircraft
The four C-26 Aircraft donated to the Peruvian Air Force and supported by NAS Aviation assisted GOP and CN/CT operations. NAS Aviation installed a forward Looking Inferred (FLIR) digital camera from one C-26 to the other as needed for operations. It is used for reconnaissance and identifying clandestine runways and drug production activities. The C-26's are also used in support of Joint Armed Forces Command and Peruvian Police Command. They are also used for transporting Peruvian CN police units.

The total number of A-37's the FAP has in the inventory is 23. Of these, six are static displays at different locations. Of the remaining 17, only four to six are operational (the number fluctuates). The remaining aircraft are in various states of disrepair. At one time, they had 40 but over the years, 14 have been lost in accidents and three have disappeared. The A-37 has three missions: counterdrug, primary interceptor and advance fighter tactics training for fighter pilots.

Peruvian Air Force
C-26
2
A-37
23

X-Ray Units
Several sophisticated X-ray units, mobile and stationary, including body scanners have been donated to Customs for use at the principal airports and sea ports of Peru. They are used to scan air cargo and passengers along with shipping containers. They are maintained by a contract with the vendor's local representative. Cooperation between Customs and DIRANDRO (Peruvian Drug Police) has caused delays this year.

Status-Services

Demand Reduction Services
Combating TIP- NAS Lima engages with both the NGO sector, multi-national organizations, the police and various Peruvian government agencies to train police, prosecutors, and judges to recognize TIP cases; make the appropriate changes; provide victim assistance; enforce existing TIP laws; and raise general public awareness.

Public Awareness Campaign on Drug Consumption
The campaign engages and educates children, parents, policy makers and the general public on the growing use of and availability of illegal drugs not just in the schools, but in the neighborhoods and on the streets.

Anti-Drug Community Coalitions
The coalition creates grass roots neighborhood organizations with representatives from different sectors of the community to identify community level problems; engage the police; and work together towards creative solutions.

Media/Monitoring Services
The services include the monitoring of pro-narcotics trafficking messaging east of the Andes and the daily monitoring of all radio and television news outlets broadcasting in controlled areas of the country.
The services provide an alternative voice-radio and internet news service and comprehensive reporting for the narco-controlled areas east of the Andes as a counter voice to the pro-cocalero, pro-narcotrafficker, anti-alternative development messages that predominate the airways in these regions.
The academic voice-supports academic research and discussion of the issue of narcotics and narcotic trafficking in Peru so as to fuel the policy debate.

Program Impact

NAS Aviation Commodities/Service
The donation of miscellaneous equipment by NAS Aviation improved eradication and CN interdiction operations in Santa Lucia, Tingo Maria and Palma Palmpa.

In 2008, these aircraft equipped as such and in coordination with the Peruvian National Police (PNP) ground units, captured two drug aircraft in Puerto Maldonado area.

CORAH Commodities/Services

INL Project funds provided through NAS Lima are the sole source of funding for CORAH and CADA in support of their mission (coca eradication and monitoring). INL through NAS Lima partially funds the Instituto de Cultivos Tropicales (ICT) in support of the activities.

CORAH conducted a total of 301 eradication mission during 2008, eradicating 10,143 hectares which exceeded the projected goal of 108,000 hectares.

The majority of commodities purchased included satellite imagery, survey equipment, communications, computer equipment and field gear. These commodities permitted CORAH and CADA to perform the functions required to conduct eradication in a programmed manner. These functions include identification of coca growing areas, quantification of coca under cultivation, physical eradication of coca in the field, reporting and verification.

ICT Commodities/Services
ICT worked in 250 locations in Huanuco and San Martin Provinces. ICT conducted 250 educational events mostly related to cacao and coffee cultivation methods to increase production. In addition, ICT hosted an international congress related to soils. ICT provided technical assistance to plant 562 hectares of cacao and rehabilitated 286. They were an integral part of the creation of an agricultural cooperative dedicated to cacao commercialization. This cooperative has 885 members and their goal is 1,500. Major commodity purchases with NAS provided funding was very limited in 2008. These purchases include photo and video equipment and computer equipment.

DEA- Commodities-Services
A large variety of equipment is provided to the PNP SIU through the DEA Lima Country Office SIU program. Items include, but are not limited to, computers, printers, vehicles, electronics, cameras, etc. The PNP SIU program benefits greatly from the use of such equipment which enables the police unit to maximize efficiently in all aspects of its administration and investigations, including evidence gathering, analysis, enforcement operations, and prosecutions.

Problems and Corrective Action Plan

Repair and Maintenance of Commodities
On occasion, donated vehicles do not receive proper maintenance due to lack of counterpart funding. The NAS is obligated to cover repairs and maintenance to keep the vehicles operative. This only applies to special cases approved by the individual Project Adviser.

The FAP has a Foreign Military Sales case open to repair J-85 engines. Twelve engines will be overhauled resulting in an additional four or five A-37's becoming operational. The MAAG is actively engaged with the FAP to restore their A-37 fleet.

Lack of Use and Misuse of Commodities
Two body scans originally received in country in February 2008 and donated to Customs for use at airports have not yet been installed. One unit, destined for Tacna is not in use and the counterpart has not prepared the facilities. The other unit designated for Cuzco was originally delayed due to a factory problem. After technicians from Germany repaired the unit, the delay continued due to major changes in counterpart management. NAS Porta/Maritine program is working the issue and may consider recalling the unit for Cuzco and donating it to the police.

In Tarapoto, four (4) Prosecutor's Offices have copy machines that were not being used at the time of inspection due to lack of funds for toner. This lack of use has been communicated to the Program Adviser.

The Hauncayo and Piura Prosecutors Offices also have copy machines that were not being used at the time of inspection due to lack of funds for toner. This lack of use has been communicated to the Program Adviser.

Reporting of Donated Materials.
Accurate reporting of many donated materials has been a problem due to several projects having their own Logistics Section, warehouses, procedures and forms and are not responsible for reporting to NAS Logistics.

Being principally responsible for accurate tracking of EUM materials, NAS Management has directed that all logistics operations report directly to NAS Logistics to standardize forms and procedures thus reducing over-all costs and improve reporting, accuracy and security of material. Standardization assures that all the required information is properly reported to a central unit.

Document: International Narcotics Control Strategy Report

Program: International Narcotics Control and Law Enforcement

U.S. Policy Initiatives and Programs Policy Initiatives. U.S. assistance to Peru focuses on strengthening governance and creating opportunities for legal activities in isolated areas where drug traffickers and terrorists operate, using aggressive eradication, interdiction, and control of precursor chemicals; coupled with alternative development to reduce dependence on illicit coca cultivation. The USG also provides support for GOP efforts to improve its counter-terrorism efforts and publicize the links between drug production and common crime; so that Peruvians understand that drug trafficking degrades the quality of their lives, damages the environment, and threatens economic development. Bilateral Cooperation. In 2009, the USG continued to work with the GOP on counternarcotics operations in the major drug source zones of the UHV and the VRAE. The PNP received USG assistance to increase police presence and improve police operational capabilities in these areas by supporting and renewing existing police bases and enhancing police training. Other U.S. government-provided training included maritime law enforcement and container inspection. With U.S. support, DIRANDRO commanders and field personnel received specialized counternarcotics courses and refresher courses in advanced airport drug interdiction and chemical field testing. The USCG provided mobile training to Peruvian officials in the areas of port security and container inspection. Law enforcement officials from other Andean countries also participated in the training courses, which contributes to regional cooperation in drug investigations and interdiction. Peru's law enforcement organizations conducted joint operations with neighboring countries and Europe, and participated in drug enforcement strategy conferences to address drug trafficking along its borders, such as the former Operation Seis Fronteras?now renamed Operation Sin Fronteras to show that chemical and drug trafficking have no borders. This multilateral initiative is conducted at various stages during the year to combat the diversion of controlled chemicals to illicit markets where these chemicals are utilized. Peru hosted the Operation Sin Fronteras Phase XI evaluation conference in September 2009. The Cooperating Nation Information Exchange System (CNIES) Agreement signed in 2005 between the USG and the GOP enables the USG and other cooperating nations to share intelligence concerning trafficking of drugs by air. CNIES has been implemented at Peruvian Air Force (FAP) locations in Lima, Pucallpa, and Iquitos. Since 2005, the FAP Joint Anti-Drug C-26 Air Squadron has conducted counternarcotics reconnaissance and airlift east of the Andes. The C-26 Forward Looking INFRA-RED (FLIR) was used in 2009 to map suspected clandestine runways in Peru and update the status of known airstrips. The FAP C-26s provided critical overhead real time coverage for eradication workers, eradication police, and army personnel in the field. The planned 2010 installation in the C-26 of an electric optical camera will provide high quality imagery of coca fields to aid in planning eradication operations. The Military Assistance and Advisory Group (MAAG) coordinated and conducted CNIES training for FAP personnel and shifted radar assets in response to intelligence indicating potential trafficking by air. FAP conducted joint training exercises with Brazil and Colombia.

Document: Bureau for International Narcotics and Law Enforcement Affairs Program and Budget Guide, Fiscal Year 2010

Program: International Narcotics Control Economic Aid

FY 2010 Program

Public Relations & Media

Public opinion has changed perceptions about coca cultivation and the complicity of coca growers in drug trafficking, particularly when studies show that 90 percent of the coca leaf grown in Peru is converted into narcotics. In Peru’s major cities the public is most concerned about the impact of drug trafficking on, and the effect of, drug abuse among youth. FY 2010 funds will support a campaign undertaken by NGO partners to better inform the Peruvian public of the dangers confronting the country from the illegal drug trade, including related crime, corruption and increased local drug use. This initiative is especially important to oppose narcotics trafficker-financed campaigns that characterize coca as the ""sacred leaf"" and producers as ""poor farmers.""

Administration of Justice

FY 2010 funding will help GOP prosecutors assigned to oversee police and military drug enforcement operations, interrogate suspects and witnesses, secure evidence, supervise the destruction of illegal facilities such as laboratories or airstrips, and prepare cases for trial by 331 Western Hemisphere providing training, and some travel expenses. Prosecutors are also required to accompany eradication teams in confrontational areas to serve as impartial witnesses to ensure that rights are not being violated and to defuse protests. Additionally, FY 2010 funds will support advanced training for prosecutors already in the program and entry-level training for new prosecutors. Funding will allow selected jurisdictions with inadequate resources to learn to better manage heavy narcotics caseloads by providing technical assistance and training.

Demand Reduction

The demand reduction program has moved away from the more traditional programs that focused on educational workshops, epidemiological research, treatment, and the training of teachers and health professionals. In FY 2010 we will use the Community Anti-Drug Coalitions (CAC) model will be utilized, which has been very successful in the U.S. and are adapting it in Peru. There are currently twelve CACs in nine municipalities. Already more than 50 percent of the cost for CAC activities comes from local sources. Support from local stakeholders is positively impacting drug-related municipal policies and norms. U.S. funds will be used to purchase promotional materials and publications used in CAC campaigns, to train community based facilitators in the CAC model, and to sponsor public events designed to publicize CAC activities.

Money Laundering

FY 2010 funds will support advanced training and technical assistance by the U.S. Dept. of Treasury Office of Technical Assistance (OTA) and United Nations Office of Drugs and Crime (UNODC) on money laundering, asset forfeiture and bulk cash smuggling problems in Peru and the GOP’s ability to address it. Based on this assessment, the OTA will offer a series of seminars and training for financial analysts, police, prosecutors and judges in the area of detecting and prosecuting illegal activity ties to money laundering. Funds will also pay for a series of seminars and training programs for Peruvian judges in all aspects of investigating and prosecuting money laundering crimes organized by OAS/CICAD.

Document: Bureau for International Narcotics and Law Enforcement Affairs Program and Budget Guide, Fiscal Year 2010

Program: International Narcotics Control and Law Enforcement

Program Objectives and Performance Indicators

Assist the Government of Peru (GOP) to institutionalize policy-making and coordination and take over management of certain counternarcotics programs. Indicators include:

• The maintenance and operation of Peruvian National Police (PNP) air wing is performed by Peruvian nationals, with an USG contractor providing oversight on maintenance, training, and operation of equipment and helicopters.

• Graduate 900 new counternarcotics police annually to expand the presence and capability of the Peruvian national counternarcotics anti-drug police (DIRANDRO) for enforcement and security tied to counter narcotics efforts.



• Maintain a comprehensive maritime and port interdiction program to diminish substantially the exploitation of Peru's northern ports by drug traffickers through an increase of seizures and inclusion of the National Cargo Manifest Review Unit.



• Establish and employ reciprocal maritime operational procedures with the USG to expedite communications and decisive interdiction action between USG and GOP maritime operations centers.


Program Justification

Peru is the second largest cocaine producing country in the world and a major exporter of cocaine and cocaine base to markets in South America, Mexico, the United States, and Europe. USG financial support for the GOP's 2007-2011 National Strategy against Drug Trafficking supports Peru's democracy and economic growth and is a key U.S. national interest. Given its strategic ""swing-state"" position, as an essential player in preserving peace and security in the Andean region, Peru's success has a clear positive multiplier effect throughout the region.

The transnational nature of the narcotics-trafficking threat, along with the challenge of mounting a coordinated response in the Andean region, combined with a lack of state presence in remote areas with significant coca cultivation underscore the challenge. In this context, incrementally expanding coca cultivation after a decade of sharp declines, the rising incidence of narcotics-related violence including from remnants of the Sendero Luminoso (SL; Shining Path) terrorist group, and evidence that Mexican trafficking groups are increasingly involved in Peru's cocaine trade all highlight the need for continued U.S. counternarcotics assistance.

Program Accomplishments

Peru's National Drug Plan for 2007-2011 emphasizes the nexus between interdiction, eradication, alternative development, and prevention. An area of the Huallaga Valley historically notorious for drugs and the SL insurgency is now being referred to in media reports as ""The Tocache Miracle"" or ""The San Martin Success Story."" A recent analysis by the Institute for International Studies of Catholic University in Peru (IDEI) of the economy of the region around San Martin confirms that a substantial diminution of coca production reduced coca's impact to the regional economy from a high of 17.4 percent in 1992, to 1.9 percent in 2006, and by 2008, to an ""insignificant"" level. This decrease can be directly linked to the success of eradication programs working in tandem with alternative development where aid and assistance following eradication included infrastructure improvements for roads, potable water supply, and schools, and the introduction of crops such as African Palm Oil, cacao, coffee, bananas; offering viable and legal alternatives for farmers.

In 2008 U.S. assistance supported the GOP's efforts to disrupt production and transshipment of cocaine via operations on land, sea, and air; seizing 28 metric tons (MT) of cocaine. Manual eradication of 10,143 hectares of coca helped tamp down the impact of illicit coca cultivation. With the support of U.S. backed initiatives, the GOP investigated and dismantled major drug trafficking organizations, and shut down drug-processing sites in coca-growing areas. The Peruvian National Police (PNP) Directorate of Antinarcotics Agency -- DIRANDRO destroyed 1,225 cocaine-production laboratories, including 19 cocaine HCl and 1,206 base laboratories; and 2,119 MT of dry and macerated coca leaf.

Police capacity east of the Andes continued to expand with 935 new police officers making 3-year commitments to serve in counternarcotics units such that approximately 2,000 anti- drug police were operating in coca source zones by the end of the year.

Backed by U.S. program support, Peruvian agencies involved in maritime and airport counter-drug enforcement accounted for seizures nationwide of approximately 13 metric tons of cocaine and Peruvian Customs (SUNAT) personnel examined an average of 9,500 containers per month nationwide, compared to 3-4 per month less than two years ago. USG- provided training in non-intrusive inspection (NII) technology enabled SUNAT to inspect more than 116,000 export seagoing containers in 2008. Use of NII technology expanded to the southern frontier city of Tacna, with the deployment of a Body Scanner for screening suspect ""mules"" crossing into Chile. Additionally SUNAT concentrated efforts to interdict illicit money transported through the international airport and domestic flights, resulting in the seizure of nearly one million dollars.

FY 2010 Program

Eradication

Eradication is a resource-intensive objective as it requires high operational costs taking teams to remote coca growing areas for labor-intensive manual eradication protected by a significant security presence to counter lethal threats from narcotics traffickers and producers.

Coca and Opium Poppy Eradication: In FY 2010, coca eradication efforts will continue in the Upper Huallaga Valley (UHV) with the intent to initiate similar operations in the Monzon as the activities move to the southern Huallaga Valley. Additionally, eradication operations anticipate entering several difficult areas such as Polvora-Pizana and northern Huanuco. This activity will support creation of a coca free corridor that will extend from Northern San Martin, through the Upper Huallaga Valley and northern Huanuco along the Fernando 329 Western Hemisphere

Belaunde Terry Highway. This corridor will, in turn, connect with the Federico Basadre Highway through Aguaytia leading to Pucallpa. The USG will provide operational support for the labor intensive manual eradication program, including transport, food, salary supplements, field gear and tools, tents, first aid, and training for the eradicators.

Crop Research & Extension (ICT): A joint USG-Organization of American States Anti-Drug Office (OAS/CICAD) Alternative Crop Research and Extension (ICT) project provides a research arm for Embassy Lima's Narcotics Affairs Section (NAS). This project will continue to help refine the Embassy Lima Cocaine Production Averted Formula, assist in determining the best methodology to measure coca plant density, perform field research into coffee and cacao diseases with a focus on finding ways to increase production yields, and disseminate practical research results to farmers practicing alternative development throughout the region. ICT is crucial to the efforts to expand the eradication program into the Monzon. ICT will continue its efforts to implement a five-year strategic plan containing a strong marketing component with a goal of self-sufficiency for ICT by the end of calendar year 2010.

Aviation Support (eradication): Aviation support for eradication funds provides operating and maintenance costs for the National Police Aviation Division (DIRAVPOL) which includes airlift for eradication, and logistical support for the Coca Monitoring and Reduction Agency (CORAH). Funding supports pilots, aircrews, and support personnel for 23 USG- owned Huey II helicopters, four fixed-wing aircraft (including two C-26s which are used for counternarcotics missions), and limited operational support for Peruvian MI-17 helicopters and fixed-wing aircraft -- all of which support the coca eradication and security forces working east of the Andes. Funding also supports fuel, maintenance, hangars and warehousing, aircraft rental when needed, and operational support for DIRAVPOL personnel.

Crop Monitoring and Research: A branch of the GOP's CORAH called the Corps for Assistance to Alternative Development (CADA) monitors and maps coca and poppy cultivation and provides a means to verify the extent of coca eradication within communities, which is also a critical condition for continued alternative development success. In FY 2010, INL will provide technical support to CADA for the development of a business plan to market CADA services so it can become self sustaining. Demand for CADA expertise has been high, and information is shared with the USG, GOP, and international organizations to guide counternarcotics efforts. CADA is collaborating with the police, the UN and GOP to develop a methodology to detect and map opium poppy capable of overcoming terrain and weather obstacles. USG funding will provide maps, salary supplements, per diem, travel costs, vehicles, and training.

Interdiction

Law Enforcement Support: FY 2010 funding will provide operational support such as vehicles, radios, field gear for interdiction deployments, security for eradication operations, as well as training and field exercises to enhance the capabilities of the Peruvian National Police Narcotics Directorate (DIRANDRO). The goal is to drive down coca leaf prices by disrupting the market as well as to interdict drugs and chemicals. Support for enhanced law enforcement efforts in the Eastern Andes will include some minor renovations and refurbishment of existing infrastructure to house graduating officers from the U.S. supported Basic Police Academies. Support for pre-academies includes teacher's salaries, textbooks, uniforms, computers, updated communications equipment, field gear, emergency/safety reaction gear, travel costs, communications support, to the drug detector canine unit, as well as to the special operations and eradication security forces.

Port Security: Peru has achieved significant success in detecting drug shipments in Pacific ports and the Lima airport. This program will continue to improve the Government of Peru's capacity to examine cargo and passengers through facilities improvements, equipment acquisitions, training, operational planning and execution. Emphasis will be placed on the renovation and development of additional Manifest Review Units (MRUs) based on the U.S.- sponsored model MRU, which has been established at Callao, Peru's largest seaport.

Peruvian Customs: The Peruvian Customs Service inspects arriving and departing passengers and cargo at Lima's air and maritime terminals, at other air and maritime ports of entry, and at land border checkpoints. The Customs Service's drug enforcement section is responsible for narcotics interdiction at national airports and seaports. FY 2010 support includes procurement of computers and ion scan machines that will enable this section, in concert with DIRANDRO, to bolster inspection and enforcement operations at the country's principal airport and seaport, as well as at other smaller installations.

Aviation Support (interdiction): Aviation support for narcotics law enforcement provides operating and maintenance costs for the National Police Aviation Division (DIRAVPOL), which is responsible for airlift for interdiction, and logistical support to counternarcotics. This program supports pilots, aircrews, and support personnel for 23 USG-owned UH-2 helicopters, four fixed-wing aircraft (including two C-26s which are used for counternarcotics missions), and limited operational support for Peruvian MI-17 helicopters, and fixed-wing aircraft -- all of which support coca eradication and other law enforcement activities east of the Andes. Funding also supports fuel, maintenance, hangars, warehousing, aircraft rental when needed, and operational support for DIRAVPOL personnel.

Document: 2007 End-Use Monitoring Report

Program: International Narcotics Control and Law Enforcement

Procedures

Inventory Management

NAS Logistics is an eleven person logistics section headed by an American U.S. hired Personal Services Contract (PSC) employee as Logistics Management Advisor, who manages warehouse facilities in Pucallpa and the Embassy facilities on the Peruvian Air Force Base located at the Lima International. The latter houses 25 to 30 NAS, DEA and contractor personnel. NAS Logistics has extensive security controls in place at both locations. The NAS Logistics Section is charged with Customs clearances; shipping/receiving of all NAS commodities; preparing donation letters; maintaining inventories; and coordinating EUM spot-checks and drafting the annual End Use Monitoring report.

The Logistics database contains detailed information on commodities and End Use Monitoring inspection visits and can be sorted by location to facilitate End Use Monitoring spot-checks.

In 2007, NAS Logistics cleared and processed through Customs about 400 shipments valued at over $15.3 million of which 93 percent of these shipments cleared Customs within 24 hours of arrival in country. Additionally, NAS Logistics received and processed approximately 300 local purchase shipments and shipped from Lima some 400 tons of materials to Forward Operating Bases (FOBs) and Forward Operating Locations (FOLs). From the Pucallpa site, NAS Logistics shipped 278 tons to FOL's and Lima via truck and air transport, which doubles the 139 tons shipped last year.

The NAS staff performs regular and unannounced End Use Monitoring inspections throughout the year. Participants include Project Advisors and supervisors of all NAS programs. Aviation assets are inspected by NAS Logistics and 9 U.S. hired American Personal Services Contractors (Field Advisor Security Specialists). One US PSC Ports and Maritime Advisor and one Locally Engaged Staff (LES) share responsibility for EUM of Maritime assets with the NAS Logistics Section. Two Eradication Advisors and a Program Analyst monitor commodities and assets donated to CORAH (Coca Reduction Project), its subdivision, CADA (Coca Measurement Corps), and the Institute of Tropical Crops (Instituto de Cultivos Tropicales- ICT). ICT is a Non-Government Organization (NGO) dedicated to improving crops that may be substituted for coca. MAAG personnel visit military installations to perform spot checks on Defense Articles provided to the Peruvian Armed Forces and Drug Police under security assistance programs for counternarcotics purposes. DEA special agents assist in monitoring equipment, materials and consumables provided to the Peruvian National Police (PNP).

On-Site Inspections

During 2007, NAS Logistics visited 68 counterpart organizations at a total of 132 sites in 26 different cities and conducted inspections of 3,985 donated items out of a total of 5,028 items subject to inspection, resulting in about 80 percent of donated items being verified. Of the remaining 20 percent (1043 items), about 500 had been inspected in 2006. The NAS visited all sites containing large concentrations of equipment and targeted any site where discrepancies had been noted in the past. Inspection results were compared to existing NAS inventories to produce a computerized list of discrepancies. These discrepancies were reported to the appropriate NAS program advisor and counterparts for appropriate action. NAS Logistics also assists the MAAG and DEA with donations to counternarcotics units and the tracking of the same.

After each EUM inspection, NAS Logistics submits a final report to the program advisors for follow-up action to locate any shortages and/or to correct errors. Throughout the year, NAS Logistics also tasked Peruvian counterparts with submitting up-to-date inventories, including the location and condition of all donated commodities. Some counterparts maintain vehicles and equipment in their inventories that have outlived their useful life span. The NAS routinely encourages counterparts of established guidelines for replacement of equipment. CORAH is attempting to hold an auction to dispose of unserviceable equipment. However, this auction is being delayed by bureaucracy within the Minister of Interior. Most Peruvian governmental and other counterparts submitted detailed inventories. The submissions are compared to existing records. The results of physical inspections are used to update the NAS database.

The Embassy's Management Section is responsible for the physical inventory of non-project (NAS) property maintained on the Embassy's NEPA system. A NAS Administrative Assistant oversees non-project, non-expendable property at the Embassy location. NAS Logistics is responsible for the inventory of NAS personal property at FOLs and FOBs. In 2007, NAS Logistics reconciled property book inventories of 5,676 NAS program items out of a total of 7,696 items located nationwide.

Status

All commodities are used full-time in the conduct of counternarcotics activities, including construction and logistical support. While conducting End Use Monitoring inspections of counterpart sites, NAS Logistics found no evidence of improper use of donated materials. In addition, the cooperation of counterparts as a whole was satisfactory.

Vehicles

NAS Logistics maintains an inventory and tracks a total of over of 800 vehicles in 33 cities nationwide. Seven hundred and seventeen vehicles have been donated over the years to 23 counterpart organizations and include sedans, pickups, SUV's and motorcycles. Included in the total figure of 800, 86 are NAS program vehicles, i.e., fuel trucks, forklifts, cargo trucks, sedans, pickups, SUV's etc. The vast majority of donated vehicles are provided to various elements of the central and regional Drug Police (DINANDRO and DIVANDRO), the Aviation Police (DIRAVPOL), the Coca Reduction Project of the Upper Huallaga (CORAH), its sub-division, the Coca Measurement and Eradication Verification Corps (CADA). CORAH/CADA has 64 vehicles and 29 motorcycles in their inventory. Six (6) vehicles are totally inoperable. The Instituto de Cultivos Tropicales (ICT) was funded previously under CADA but is now funded with its own budget. Besides NAS-provided vehicles, ICT has acquired a vehicle and several motorcycles through a coca yield study (BREAKTHROUGH) funded by DEA. ICT has a total of four vehicles and 20 motorcycles. Eleven motorcycles are beyond their useful lifespan; however, eight are still operational and three are not. The latter will be disposed of by auction. The Ministry of Education, the Judicial Prosecutors, the PNP/DIRANDRO Chemical Control Group, and the Peruvian Customs Service also possess NAS-donated vehicles.

The NAS employs a FSN motor vehicle maintenance supervisor within the Logistics Section, who is responsible for tracking NAS project vehicles, maintaining stocks of essential spare parts, and providing preventive maintenance oversight at repair shops which are handled with Blanket Purchase Agreements (BPA's) whenever possible. Aviation personnel have overall responsibility for all aircraft, tugs, fuel trucks, fire trucks, and forklifts, including preventive maintenance.

The NAS requires counterparts to provide proof of preventive maintenance whenever they request NAS financial assistance for major repairs to vehicles purchased with project funds. Funding is not provided if the preventive maintenance has not been performed.

In 2007, NAS Logistics disposed of one excess/obsolete program vehicle in the Embassy auction and funds are to be returned to the NAS. In addition, two used program vehicles were donated to counterparts, one of them being a fork lift to the Peruvian Air Police (DIRAVPOL) and the other a laboratory van to Peruvian Customs (SUNAT). The NAS also donated a total of five new vehicles to counterparts during 2007. Presently, there are about 20 inoperative/obsolete counterpart vehicles being prepared for auction and/or disposal. Auctions are coordinated with counterparts and supervised by NAS Logistics personnel with all funds received being returned to the appropriate program in accordance with regulations.

Communications Equipment

In 2007, the NAS continued to monitor the use and maintenance of radio equipment to support interdiction and eradication missions, including eight satellite phones provided to CORAH for use inn Lima, Pucallpa, and Santa Lucia.

Computer Equipment

The NAS continues to upgrade computer systems for counterparts, including surge suppressers and UPS as necessary in areas where the electrical current is unstable. In addition, the NAS is assisting counterparts in improving internal communications through LANs and web connections. Post encourages counterparts to automate inventory, case management and filing systems. These help to improve internal controls, produce a smoother flow of paperwork, and provide more accurate documents. Computer equipment provided to DIRANDRO. and CORAH is maintained at the assigned sites and upgraded as needed and as funds permit.

Additional project equipment was provided to DEA's Sensitive Investigative Units (SIU's) in 2006. DEA agents performed End Use Monitoring activities throughout the year. They did not find any instances of equipment being misused, poorly maintained or used for purposes other than those intended by the USG.

Defense Articles

Drug Police (DINANDRO and DIVANDROS)-Weapons procured with FMF funds for use of DINANDRO and DIVANDROS participating in the counter-narcotics program are surveyed periodically by the NAS and MAAG representatives. There is no evidence that the equipment is being used for any purpose other than police counternarcotics operations. All monitored equipment was in serviceable condition. The NAS monitored 200 M-60D machine-guns and 131 M16A rifles received from DLA; 12 Smith & Wesson 357 Cal M-19, 14 M4 carbines, received from the RSO. The NAS, with INL approval, provides non-lethal weapons to the PNP (DIRANDRO). The weapons include twelve complete Pepperball systems.

Riverine-The Chief of Mission and the NAS Director cancelled the NAS Riverine program due to inefficiency and lack of commitment by GOP counterparts. Personnel and resources previously dedicated to the NAS Riverine Program have been reprogrammed to the Maritime and Ports Program that is focused on interdicting drugs leaving Peru by sea and airports.

Aircraft

Working jointly with the Air Wing of the Police (DIRAVPOL), the Aviation Program, the program provides airlift support for interdiction and eradication missions. The process funds travel and incentive pay for aircrew and provided specialized training during 2007 totaled $3,880,000. With the lack of DOD 9201 funds for Initial Entry Rotary Wing (IERW), the NAS has had to fund this expensive training. In 2007, Aviation Program helicopters (UH-IIs) logged 7,209 hours. The total for aircraft flown was 9,694 flight hours. The NAS funded fuel and support to DIRAVPOL MI-17 helicopters and fixed wing aircraft during CN operations in 2007.

The NAS supports a total of 23 USG-owned INL Airwing UH-II helicopters that are operated by the National Police Aviation Directorate (DIVAVPOL) for counternarcotics interdiction and eradication missions. NAS Lima received ten of the 23 in 2006. INL rotary wing assets are based at the Main Operating Base (MOB) in Pucallpa where all major helicopter maintenance is performed. In Lima, there is one fixed wing aircraft B 1900 D twin-engine passenger aircraft capable of carrying 19 passengers or cargo. This aircraft supports CN operations in Peru. The B 1900 is pressurized. Stationed east of the Andes at the Main Operating Base at Pucallpa is a fixed wing C-208 single engine passenger aircraft capable of carrying eight passengers or light cargo. The C-208 is not pressurized. GOP police MI-17 helicopters and fixed-wing aircraft are also used for counternarcotics operations. The NAS provides funding for maintenance and fuel for GOP aviation assets in support of CN operations. As needed, the NAS rents small aircraft to move personnel and cargo to locations east of the Andes. The NAS supports two FAP V-26s (four were donated by the USG) with maintenance support, fuel, and crew training. One of the FAP C-26 has a FLIR installed. The FLIR is interchangeable with the C-26s. The C-26s are used to identify illegal runways, reconnaissance, and transport for CN personnel in support of NAS and GOP CN efforts in Peru.

NAS Aviation Program personnel and the INL Air Wing contractor DynCorp performed support and End Use Monitoring activities for the NAS Aviation Program in 2007. DynCorp and NAS aviation personnel maintain flight and maintenance records for all INL aircraft. A task order incorporated into DynCorp's contract authorizes procurement of spare parts, lubricants, chemical additives, and aviation life support equipment (ALSE) for CN aircraft. No diversion of NAS-purchased parts and equipment was detected.

No additional aircraft were received during 2007. Two C-26s are owned by Peruvian Air Force (FAP). The NAS spent $2,975,142 in 2007, which included a maintenance, training, and operation package.

MAAG continues to conduct EUM of 24 DragonflyA-37 aircraft. Two other aircraft have been lost to attrition and three are being used as static displays.

The aviation program continues to be the cornerstone of the counternarcotics program. Without the airlift and emergency evacuation capabilities of the 23 INL helicopters, NAS-supported PNP helicopters and fixed aircraft, the eradicators would not have been able to operate in most coca-growing locations. The ability to move operations quickly from one location to another added to the element of unpredictability needed to safety operate in areas of grower resistance to eradication missions.

Fuel

The NAS provides all fuel required for the UH-1 and UH-II helicopters and the fixed-wing aircraft. In addition, the NAS also pays for fuel for police fixed-wing aircraft and helicopters on selected counternarcotics missions. The NAS closely monitors all fuel ordering, receiving, and dispensing procedures of fuel stocks for aviation. The NAS has Blanket Purchase Agreements (BPA's) with fuel suppliers and transporters and has ordering, receiving and payment procedures in place. In 2007, $2,594,465 was spent on the purchase of aviation fuel. An additional $238,000 was paid to transport the fuel from Lima to forward locations. The NAS in-house quality control of aviation fuel is strictly monitored through daily, weekly and monthly testing, weekly spot-checks and monthly audits. Additionally, the Defense Logistics Agency (DLA) conducts quarterly inspections of DOD quality assurance of all in-plane contracts, which includes both NAS BPA's. All meet or exceed standards established by DLA.

The NAS stores and dispenses fuel from 11 locations in Peru, nine of which are east of the Andes. The main facility is in Pucallpa and has a maximum Jet-A capacity of 42,500 gallons. Tingo Maria has a capacity of 35,000 gallons of Jet-A1. Aguaytia has 13,500; Santa Lucia has 40,000; Mazamari has 23,000; Palma Pampa has 18,000; Puerto Maldonado has 10,000; Las Palmas 10,000; Lima Grupo Ocho 9,500; and Pichari 14,500 gallons. All locations have CORAH-contracted refuelers who report daily to the NAS embassy Field Coordinator in Pucallpa. The NAS Petroleum Logistics Advisor visits all locations at least quarterly.

During 2007, the NAS purchased fuel and space parts for the Maritime Program for use by Coast Guard Maritime Units for selective operations.

Ion Scan Machines

The three Ion scan machines purchased by Ports program, which detect atomic- sized particles of cocaine (or other drugs/explosives if so programmed) have been used daily on cases ranging from airport passengers to cargo and fishing vessels.

Construction

The NAS provides construction support to advance counternarcotics operations through CORAH personnel. During 2007, CORAH prepared 77 projects and executed 49 of these projects at a cost of $4,589,009. This included 20 projects for aviation, 19 for the Police Program, 5 for the Maritime and Ports Program, 4 for CORAH facilities, and 1 for the Drug Executive Office (OFECOD). In all cases, renovated facilities were used for their intended purpose.

Weapons

Weapons provided for the use of DIRANDO and DINANDRO (National and Provincial Drug Police) units that participate in the counternarcotics program are surveyed periodically by NAS and MAAG representatives. There are no indications that the weapons are being used for other than intended purposes. All monitorable equipment is in serviceable condition. The NAS monitors 200 M-60 machine guns and 131 M16A rifles received from DKA. The NAS with INL approval provided non-lethal weapons to the PNP (DIRANDRO). The non-lethal weapons include 102 complete Pepperball systems.

Demand Reduction

In 2007, the NAS Demand Reduction program provided funding for several drug prevention programs with a strong focus on community mobilization to increase protective factors that reduced the likelihood of drug abuse such as educating children and parents in school, training teachers, providing counseling and early intervention services. The Demand Reduction programs also provides funds for media campaign, printed material like manuals and workbooks, office equipment, office space, and consultant services, which provide reports evaluating the efforts and impact of the community anti-drugs coalition programs, and to develop a needs assessment and base-line study for six community anti-drug coalitions.

The NAS provides funding to a number of NGOs to promote efforts designed to sensitize the Peruvian public about the harmful personal and societal effects of illegal drug consumption, production, and coca cultivation. The Demand Reduction office supports organizations in strengthening their institutional capacity, developing community-based activities for building social skills, and conducting surveys and research on drug abuse to identify groups requiring collaboration and assistance. Funding for this office also supports workshops for Peruvian professionals on drug abuse and prevention nationwide. Additionally, this funding supports a drug hotline counseling service and information center to reach the youth in the zones of intervention of the CACs.

Problems

Importation of Goods

Over the years, NAS Logistics has been concerned with the fact that the Ministry of Interior has basically had control over the importation of goods under the bilateral agreement by originally creating tax libration codes in the name of the Ministry/USEmbassy. In 2007, NAS Logistics discovered that other GOP organizations and possibly independent customs agencies were importing and/or attempting to import goods duty free under the bilateral agreement using these codes. This was immediately reported to the NAS Director and Deputy Director. With their approval and support, NAS Logistics held several meetings with SUNAT and managed to reverse the situation and officially regain exclusive control and use of these codes for NAS. In doing so, NAS Logistics eliminated the requirement for four (4) Ministry of Interior/Peruvian Police customs dispatchers and replaced them with two (2) contracted personnel without affecting overall service to the mission.

Registration of Vehicles

In July 2007, NAS Logistics solved a long-standing problem for counternarcotics regarding registration of vehicles processed under the bilateral agreement and donated by the NAS. Counterparts can now legally register these vehicles in less than 15 days whereas in the past, some counterparts have been unsuccessful in obtaining standard licensing and registration for these vehicles.

Reassignment of Vehicles

During an inspection of DIVANDRO in late November, NAS Logistics discovered that two vehicles donated to a counternarcotics unit in Iquitos had been reassigned to other police sections (Vehicular traffic) by the Regional General of the Peruvian National Police (PNP). This was immediately reported to the NAS Police Program Adviser and Ports Program Adviser for their action.

Impact

The Government of Peru has had continued success throughout the year in conducting law enforcement operations. The statistics in seizures and arrests follow:

Coca

12,072.00 hectares

Coca leaf seized

1823.90 metric tons

Cocaine HCL seized

7.9.00 metric tons

Essential chemicals seized

858.25 metric tons

Laboratories destroyed

650.00

Cocaine base/labs

800.00

Cocaine HCL labs

16.00

Arrests (Total)

11,197.00

Cocaine seizures in 2007 more than doubled 2005/2006 totals. The newly purchased body scanner allowed GOP personnel to interdict a record-breaking 408 internal carries during the months of August through January 2007. This new technology is being used as an enforcement detection tool. The maritime cargo effort yielded multiple several hundred-kilogram seizures in 2007.

Document: Oak Hill Returns Home After Southern Partnership Station 2009

Program: Exercises

Oak Hill, based at Naval Amphibious Base, Little Creek, Va., departed June 3 for SPS 2009, a combined multinational naval and amphibious operation with Oak Hill and maritime forces from Argentina, Brazil, Chile, Peru and Uruguay.

Oak Hill also supported the U.S. Marine Corps Forces South (USMARSOUTH) multinational amphibious exercise, Southern Exchange 2009.

During SPS 2009, Oak Hill embarked more than 20 partner nation liaison Sailors and Marines who worked and trained with the crew in daily shipboard operations. Embarked Sailors from the Expeditionary Training Command in Little Creek also shared their expertise in small boat operations; visit, board, search and seizure; and other areas during subject matter expert exchanges (SMEEs) with Sailors and Marines in Argentina, Uruguay and Brazil.

Oak Hill Sailors who participated in SMEEs said they learned a lot from training with their Navy counterparts and enjoyed the experience.

Oak Hill also conducted joint maritime security operations with the Uruguayan Navy. Together the navies executed a swept channel mine avoidance exercise and conducted deck landing qualifications (DLQs) with Uruguayan helicopter pilots. The crew also conducted DLQs with Brazilian pilots flying a Brazilian Super Puma helicopter.

Document: Multinational Southern Exchange 2009 Exercise Begins in Brazil

Program: Exercises

The multinational combined exercise is meant to train various countries’ forces together to effectively learn to operate as one force, as well as to bolster overall stability and security throughout the region. The countries participating this year are the United States, Brazil, Argentina, Chile, Peru, Colombia and Uruguay.

Afterward, the row of the nations’ flags was raised simultaneously, symbolizing the official start of SE09. Seven countries will work as one over the next three weeks, learning from each other and training together.


During this two-phased exercise, Law of War and Human Rights classes will be taught daily, and training will be taught by various experts from each participating nation. Training will focus on fundamentals that are common amongst all Marine Corps' throughout the Americas: convoy operations, first aid, water survival, amphibious training, martial arts, patrolling, and checkpoint operations in order to enhance each nation’s peacekeeping and humanitarian disaster relief capabilities, should the need arise.


Phase two will culminate with a three-day final peace-keeping exercise in which participants will showcase the lessons learned and seize the opportunity to utilize the mission-focused knowledge and expertise shared amongst each other during the initial phase.

Document: U.S., Partner Nation Marines and Sailors Join for Southern Exchange Exercise in Brazil

Program: Exercises

Brazil’s Marine Corps, or Corpo de Fuzileiros Navais (CFN), will host approximately 1,000 Marines and Sailors from the United States, Argentina, Chile, Peru, Colombia and Uruguay for exercise Southern Exchange 2009 (SE09), July 13-31 at the Divisão Anfibia and the island of Marambaia, Rio de Janeiro.

This year’s exercise is designed as a transparent, multinational exchange that focuses on enhancing proficiency and interoperability between partner nation Marine Corps’ forces.

SE09 helps to strengthen relationships resulting in improved stability and security throughout the region. The concept of operations is structured toward Marine fundamentals and focused on building partner nation capability to execute United Nations’ coalition missions such as Haiti and Congo.

During this two-phased exercise Law of War and Human Rights classes will be taught daily, and training will be taught by various experts representing each participating nation.

Training will focus on fundamentals that are common amongst all Marines throughout the Americas: convoy operations, first aid, water survival, amphibious training, martial arts, patrolling, and checkpoint operations in order to enhance each nation’s peacekeeping and humanitarian disaster relief capabilities.

Phase two will culminate with a three-day final peacekeeping exercise in which participants will showcase the lessons learned and seize the opportunity to utilize the mission-focused knowledge and expertise shared amongst each other during the initial phase.

Lt. Col. Miguel Ameigeiras, the MARFORSOUTH SE09 exercise director, says that he sees multinational combined exercises as the way of the future for U.S. Marine Corps involvement in South America.

Document: U.S. Ships Take Part in Operacion Multinacional Alianza Naval Exercise

Program: Exercises

Ships from Brazil, Chile, Colombia, Peru and the United States are participating in Operacion Multinacional Alianza, a post-UNITAS Gold naval exercise hosted by Colombia, from May 8 to 14.

Participating ships are BNS Constituicao (F-42), CS Blanco Encalada (CF-15), ARC Almirante Padilla (FM-51), ARC Cartagena De Indias (BL-161), BAP Aguirre (FM-55), USS Doyle (FFG-39) and USS Kauffman (FFG-59).

During the exercise, participants will practice Maritime Interdiction Operations, ship formations, anti-submarine warfare, air attack exercises and practice firing.

Document: FY 2010 Congressional Budget Justification for Foreign Operations

The United States will help the Government of Peru (GOP) consolidate its democratic gains and assist in ensuring that the benefits of trade and economic growth are shared broadly, especially among the poor and long-excluded population in marginalized areas and assist in ensuring effective implementation of the U.S.- Peru Trade Promotion Agreement. U.S. foreign assistance will also help the government assert control over its territory, thereby denying terrorists and other criminals access to areas to train, organize, or transit.

Peace and Security: The United States will help build economic, political, and social stability in fragile areas of Peru by improving law enforcement, strengthening the linkages between former coca-growing communities and their local governments, providing opportunities for licit economic activities, and improving the capacities of local government. More than 48,000 hectares of licit crops developed with U.S. assistance continue to bolster the economy. Assistance to former coca growers will help them increase their incomes by 10 percent. Complemented by alternative development activities, other U.S. programs will focus on eradication to sustain the reduction in coca cultivation and will also boost interdiction capabilities in drug producing areas and gateways to foreign markets. Eradication and interdiction efforts are expected to keep 30 percent of Peru’s estimated cocaine production from reaching the market. U.S. assistance will help the GOP enforce money-laundering laws and reduce drug use. Funding will also help professionalize and modernize the Peruvian military through training focused on the professional development of military officers at U.S. military colleges and schools, and on the development of joint doctrine and procedures. Training and equipment will be provided to the Peruvian military to enhance its border security and ability to control its national territory. Additionally, assistance will support improving civil-military relations, peacekeeping, humanitarian efforts, and disaster relief capabilities.

Working with the Department of Defense (DoD), U.S. assistance will be used for the professional development of mid-grade military officers, non-commissioned officers, and selected civilians. This training will improve Peru’s capabilities in the following areas: counter-narcoterrorism operations in a joint and combined environment; establishment of joint doctrine; and the execution of joint operations, including improved civil-military relations, peacekeeping operations, humanitarian assistance, and disaster relief operations. These objectives will be met through the use of resident courses in the United States as well as through Mobile Training Teams in Peru. The additional funds will be used to expand the number of host country military personnel to be trained.

Governing Justly and Democratically: The United States will assist and collaborate with local governments in selected regions to respond to citizen needs and provide public services more efficiently and effectively. U.S. assistance will help ensure that resources generated by extractive industries are invested transparently into programs that meet citizen needs. Activities will build on the successes of past programs that helped over 500 municipalities improve transparency and effectiveness and increased local public investments.

Following fair and transparent elections in 2006, the challenge facing Peru is to show that democracy can deliver to all its citizens, rich or poor. While the Government of Peru has identified decentralization as one of his top policy reforms, progress remains uneven. As a result, and partially due to a weak and fragmented 650 political system, public opinion polls indicate that citizens' disillusionment with the current political system has increased. In FY 2010, funds will assist political parties to articulate their platforms and policy agendas and develop voter-outreach strategies to inform the Peruvian electorate on important policy issues identified by citizens.

Investing in People: The United States will work with the GOP to improve the quality of social services. U.S. programs will strengthen key aspects of health systems and services, including the quality of care and promotion of healthy behaviors. Technical assistance in maternal and child health, infectious diseases, including HIV/AIDS, and family planning and reproductive health will assist national, regional, and local entities to address persistent problems in Peru’s health sector, such as inequity, inefficiency, and poor quality. Results will include increased institutional birth attendance, reductions in maternal and infant mortality and chronic malnutrition, and a lower incidence of infectious diseases.

Education activities will build on past programs that have demonstrated increased academic achievement among students in basic education (e.g., 71 percent of students reaching mastery or near mastery levels in reading and writing in U.S.-supported schools vs. 41 percent in control schools). U.S. programs will help improve learning outcomes in primary education by supporting policy and institutional reforms, and strengthening the management and technical capacity of the national, regional, and local governments to deliver quality education services efficiently and effectively. These programs also will focus on improving the quality of teaching, and participatory and decentralized education management which will include capacity building in education planning and implementation; evidence-based policy and decision-making; implementing teacher training standards and programs; enhancing community participation and dialogue; increasing accountability; and building public-private partnerships.

FY 2010 funds will support a new education program that begins in FY 2009. The new program will focus on administrators’ and officials’ abilities to implement key education reforms. Thus, the indicator is new for this program. The first year of the program will begin laying the foundation for training administrators and officials, while increasing the number of regions in Peru that receive technical assistance and training. The additional funds in FY 2010 will be used to expand the program geographically from two to five (or more) regions, thereby increasing the impact of the U.S. education program.

Economic Growth: Trade capacity building assistance will seek to eliminate the most important barriers to trade and investment for micro, small, and medium enterprises. In cooperation with the GOP, the United States will help extend the benefits of free trade to Peru's poorest citizens by linking local producers in the impoverished highlands and Amazon regions to national and international markets. U.S. programs will help the economically disadvantaged overcome bureaucratic barriers to improving business practices, including 651 the reduction in time and cost of starting and managing a business. U.S. assistance will help Peru promote sustainable forest management, increase transparency in environmental decisions, and comply with the environmental provisions of the Peru Trade Promotion Agreement. The United States will help Peru’s Ministry of Labor strengthen its labor inspection system by implementing a risk-based inspection program, improving the efficiency and effectiveness of labor dispute settlement mechanisms, and assisting workers exercise their labor rights.

Linkages with the Millennium Challenge Corporation In June 2008, the United States signed a bilateral agreement with the GOP to implement a MCC Threshold Country Program to reduce corruption in public administration and improve nationwide immunization coverage.