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Peru Foreign Relations Under García
Traditionally, Peru was an active and initiating member
of
regional multilateral organizations, such as the
Andean Pact (see Glossary).
Yet, the nation's economic crisis and García's
loss of
prestige, both within and outside Peru, forced the country
to
turn inward and abandon its high-profile stance. Peru's
stance on
the international front was influenced to a great extent
by the
rise and fall of García's anti-imperialist strategy. His
antiimperialist and anti-IMF rhetoric, as well as his
unilateral
limitation of debt payments, placed a major strain on
relations
with the international financial community and the United
States
in particular.
Under Belaúnde, a de facto moratorium on debt service
already
had existed. By 1985 it was clear that no new capital was
headed
in Peru's direction, and that the country could not afford
to pay
its debt. García took an openly confrontational approach,
with
the hope that the rest of Latin America would follow. At
the
time, there were speculations that the threat posed by
García was
one reason the Ronald Reagan administration (1981-89)
presented the
Baker debt-reduction plan (see Glossary)
in October 1985.
Although García's debt policy limited payments to 10
percent
of export earnings, in reality the government paid
approximately
20 percent for the first few years, but then stopped
making any
payments at all. García's insistence on maintaining a
confrontational stance, even after its political utility
was
exhausted, was counterproductive. On several occasions,
accords
in principle with the IMF were prepared with
representatives of
the APRA government and the IMF, and then cancelled at the
last
minute by García. García's stance initially had some
appeal among
Third World debtor countries, and a few even followed his
example. As the limits to Peru's economic strategy became
evident
both at home and abroad, however, his stubborn adherence
to the
policy became the subject of ridicule rather than respect.
Peru
was declared ineligible for IMF funds in August 1986, and
was
threatened with expulsion from the organization in October
1989.
García also made heightening Peru's visibility in the
Nonaligned Movement and in the Socialist International a
priority.
Ties were expanded with a number of Third World socialist
nations, including Angola, Mozambique, and Zimbabwe; and
García
took a staunchly pro-Sandinista position in the Central
American
conflict. Improving Peru's relations with its neighbors,
particularly Ecuador and Chile, was also a priority early
on.
Although some productive discussions were held with
Ecuador,
including a historic visit by Peru's minister of finance
to Quito
in October 1985, progress was limited by competition with
both
the Ecuadorian and Chilean military establishments.
García's
attempts to curb military expenditures were not
reciprocated by
Chile, for example.
As the economic crisis in Peru deepened, meanwhile,
García
took a lower profile stance on the foreign policy front.
Relations with the United States remained remarkably good
despite
García's stances on debt and on Central America. This was
in part
owing to Washington's desire to maintain good bilateral
relations
because of the threat of instability caused by the SL.
Thus,
foreign aid flows were maintained despite Peru's violation
of the
Brooke Alexander Amendment, which makes a country
ineligible for
United States aid if it is over a year late in repaying
military
assistance. García's willingness to collaborate, at least
rhetorically, on the drug issue, in sharp contrast to his
stance
on debt, helped ameliorate relations. Finally, relations
were
maintained owing to a good working relationship between
United
States ambassador Alexander Watson and President García.
Peru's relations with its neighbors were strained also
by the
extent of the economic crisis and the cholera epidemic. In
late
1989, over 6,000 Peruvians crossed the border to Chile in
order
to buy bread, which was scarce and expensive in Peru.
Chile's
dictator Augusto Pinochet Ugarte (1973-90), when
campaigning
prior to the 1988 plebiscite, warned of the dangers of
populist
democracy by pointing out neighboring Peru. Contraband
trade
along the Chilean and Ecuadorian borders at times has been
a
contentious issue. Another concern were the thousands of
Peruvians emigrating to neighboring countries seeking
employment.
The fear of the spread of subversion over neighboring
borders
also worried Peru's neighbors, a concern heightened by
events
such as the SL's assassination of a Peruvian military
attaché in
La Paz, and by the MRTA's support of the 19th of April
Movement
(Movimiento 19 de Abril--M-19), a Colombian guerrilla
group.
Data as of September 1992
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