317. Telegram 2314 From the Embassy in Peru to the Department of State1

2314. Subject: Continuing Political Uncertainty. Ref: Lima 2204.

Summary: Political tension, catalyzed in part by recent events in political/labor area, remains high. Dissident military officers led by navy are disturbed by perceived leftward governmental drift and have been discussing various forms of opposition including possible coup. APRA party and private industry organizations may prepare for more active opposition role. Fact that current “coup plotting” is not being closely held may mean serious attempt is not to be mounted now. End summary.

1. Recent surfacing of political tensions is attributable to preview of GOP Plan Tupac Amaru (draft of which is radical in content and tone); labor unrest, particularly the Arequipa general strike; and more vocal [Page 858] opposition within and without military to perceived leftward drift of Morales Bermúdez regime: “Coup plotting” which occasioned spate of rumors late last week apparently continues but planning is vague and does not seem to be too closely held. This activity seemingly centered in navy, and linked to APRA as well as the private business community, may be intended more as a warning to Morales Bermúdez that leftward drift will meet with stiff opposition than as serious coup effort.

2. A Peruvian industrialist who is at least tangentially involved outlined opposition effort to EmbOff March 8. He said effort is centered on firm navy opposition to what it perceives as the leftward trend which is clearly demonstrated in the Plan Tupac Amaru. The navy is allegedly supported by a significant number of army and air force officers. According to same source, three regional army commanders are in contact with navy dissidents. Expanding on theme of discord in army, source said that General Sanchez, Commander of the Third Region (Arequipa) had his “ears pinned back” by ruling junta last week for his mismanagement of Arequipa general strike. Embassy is unable to confirm this, but Ambassador was told by FonOff official March 7 that Cabinet had split over Arequipa strike issue. Fernandez Maldonado and his supporters prevailed and it was Fernandez Maldonado who finally resolved Arequipa situation (this may have led to weekend rumor that Fernandez Maldonado had taken over government). The Arequipa strike was settled March 5 by making various concessions to unions.

3. According to above source and others familiar with dissident activity, the APRA party is involved in whatever plotting is taking place and is said to “support fully with its civilian force” efforts of navy and other military dissidents. In addition, an air force colonel approached the Peruvian Society of Industries asking that they continue to press for modification of the governments economic policy which is said by society to be strangely private enterprise. Society of Industry official told EmbOff that his organization, jointed by Automobile Manufacturing Association and the Chambers of Commerce throughout Peru, are stepping up activity for their own reasons unrelated to any coup plotting. Official said that business groups have concluded that the Morales Bermúdez regime intends to proceed toward a socialized economy and now may be their last opportunity to alter that course.

4. Serious student rioting in downtown Lima March 5, which according to students resulted in one student death, and the March 5 machine-gunning of the home of ex-Navy Minister and Ambassador to the U.S. Admiral Jose Arce Larco (no injuries reported) added to weekend tension. According to leftist Expreso, Arce, who claimed he had no enemies, said machine-gunning could have been work of CIA. (Note: Arce was and remains extremely unpopular with navy officer corps.)

[Page 859]

5. Comment: Political pot is bubbling but “coup plotting” appears too widely known on the Lima rumor circuit to constitute a credible effort. Although timing for possible coup is said to be the March 7–15 period, this appears unlikely. Neither military nor police now seems to be on alert status although both are aware of coup talk. Discontent, however, is serious and certain to continue. End result may be modification of GOP political plan (Embassy now analyzing and will report on preliminary draft of the plan) or isolation and removal of the dissident elements.

Dean
  1. Summary: Dean reported that members of the Peruvian military disliked Morales Bermúdez’s leftist political stance. Because rumors of coup plotting were so openly discussed, the Ambassador concluded that they were not credible.

    Source: National Archives, RG 59, Central Foreign Policy File, D760091–0365. Secret. The Embassy acquired a February 5 draft of Plan Tupac Amaru, which called for a pro-labor domestic policy, a more activist state, and a Third World agenda in foreign policy. (Telegram 2681 from Lima, March 22; ibid., D760107–1050) In telegram 2204 from Lima, March 6, Dean reported that because Morales Bermúdez did not seem to be “in charge” there had been a spate of rumors of coup-plotting. (Ibid., D760085–0463)