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: 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.

Document: U.S., Partner Nation Marines Arrive in Jacksonville for UNITAS Gold, POA

Program: Exercises

During the two-week combined exercise, U.S. Marines deployed as Special Purpose Marine Air Ground Task Force 24 (SPMAGTF 24), will train with partner nation marines from Brazil, Chile, Colombia, Mexico, Peru, Uruguay, and soldiers from the Royal Canadian Army. In all more than 25 ships, 50 rotary and fixed wing aircraft, 650 Marines, 6,500 Sailors and four submarines will participate in the exercise.

Comprised of Marines from the II Marine Expeditionary Force, Marine Medium Helicopter Squadron 764 (HMM-764), 4th Marine Logistics Group and the 24th Marine Regiment, headquartered in Kansas City, Mo., the SPMAGTF 24, commanded by Col. Jay Huston, will conduct an amphibious assault as part of the ground training in support of this year’s 50th iteration of UNITAS.

POA is an annual U.S. Marine Corps Forces, South multinational, company-level combined and joint exercise that focuses on enhancing interoperability between U.S. Marines and partner-nation marines in the areas of amphibious operations, non-combatant evacuation operations (NEO), peacekeeping and disaster relief.

The combined exercise will provide exercise participants the opportunity to train in a realistic training environment on both land and sea, and will address a variety of mission areas; featuring live-fire exercises, undersea warfare, shipboard operations, maritime interdiction operations, air defense and surface warfare, amphibious operations, electronic warfare, and special warfare. Successful training of POA 09 and UNITAS Gold participants will enable them to return to their respective nations to further train their nation’s security forces by sharing the lessons learned from this experience.

Document: International Narcotics Control Strategy Report

Policy Initiatives. U.S. assistance to Peru focuses on strengthening governance and creating space for legal activities in isolated areas where drug traffickers and terrorists operate, using aggressive eradication, interdiction, and chemical control to reduce drug production; coupled with alternative development efforts geared 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 their quality of life (and not just that of United States citizens) is degraded by drug-trafficking.

Bilateral Cooperation. In 2008, the USG continued to work with the GOP on counterdrug operations in the major drug source zones of the UHV and the VRAE. The PNP received USG assistance to increase police presence and their operational productivity 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. Embassy support, DIRANDRO commanders and field personnel received specialized counternarcotics courses, including U.S. Special Forces Training, Colombian and Bolivian Police Jungle Schools, and refresher courses in advanced airport drug interdiction and chemical field testing. 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 participated in drug enforcement strategy conferences to address drug trafficking along its borders, such as the joint chemical diversion—Operation Seis Fronteras. 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. At the September 2008 evaluation conference, participants chose Peru as the host country for Phase XI of Seis Fronteras in 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 in Air Force of Peru (FAP) locations in Lima, Pucallpa, and Iquitos.

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. Since 2005 the FAP Joint Anti-Drug C-26 Air Squadron, supported by NAS, has conducted CN reconnaissance and airlift east of the Andes. The C-26 Forward Looking INFRA-RED (FLIR) was used to map suspected clandestine runways in Peru and update the status of known airstrips. The FAP C-26s provide critical overhead real time coverage for eradication workers, eradication police, and army personnel in the field. The installation in 2008 of a visual spectrum mapping camera in the C-26 program will provide imagery of coca fields to aid in planning eradication operations in the UHV (Upper Huallaga Valley).