Chile-Peru: An Escalating Series of Irritants

Chile-Peru bilateral relations have gradually turned sour because of a number of irritants that have created difficult relations that at times have become tense. Every couple of months a new problem would arise from Chile’s northern border. Slowly Peruvian nationalist circles began taking control of the Peru’s relations with Chile; and this was helped by silly actions by Chileans in Peru.

When Peru’s President Alejandro Toledo captured the presidency in 2000, his victory was well received in Santiago with great hope that relations would finally reach a high level of trust and friendship. Particularly because the bilateral relations with Peru, had experienced an important advancement during the years of the Alberto Fujimori Presidency.

Chile’s ruling centre-left Concertación government signed a series of bilateral treaties to foster better relations. The bilateral trade between both nations grew to the point that today, the direct investment of Chilean business in Peru totals US$ 4 Billion.

The bilateral relations improved, confidence building mechanisms were put into place. The so-called 2+2 meetings became a regular occurrence in both Capitals. The 2+2 meetings are bilateral talks that include each country’s ministers of Foreign Affairs and Defence.

The Armed Forces also established confidence building mechanisms to the point both armies have conducted joint military exercises.

But things began to sour with a series of unrelated events that put together became a major problem in relations.

The first and most difficult issue that cropped up was the decision of a Lima court that ruled Chile’s pasta maker Lucchetti, built a pasta making plant in an ecological sensitive area of Lima. The plant was built in the Lima Wetlands, an ecological sensitive area where birds would nest.

Lucchetti is owned by the Luksic family Quiñenco holding firm. It is alleged Lucchetti executives, including the head of the family holding Andrónico Luksic, bribed former Fujimori security advisor Vladimiro Montesinos with US$ 2 Million to build in the Lima Wetlands.

In the now infamous “Vladivideos,” Lucchetti executives were filmed handing money to Montesinos, so that he would grant the building permits. When Montesinos was thrown in jail for corruption, the many videos came to light including the Lucchetti executives handing the dollars.

The Mayor of Lima with the help of the Toledo government won in the Courts a ruling that ordered the demolition of the Lucchetti plant. This decision came despite the plant is built in an industrial area that houses a number of companies like the U.S. giant 3M.

Three Lucchetti executives are being prosecuted in a Lima court for corruption. It is expected shortly, that a resolution will absolved the executives.

Another case the caused a large headache in Santiago, was the arrest late last year of two Chilean graffiti artists who were accused of painting an ancient Inca wall in the ancient city of Cusco.

After spending many months in jail waiting for trial on charges of desecrating the ancient wall, they won their release when a Chilean foundation paid over US$ 100 Thousand in reparation damages.

While the two graffiti artists where in jail waiting trial, an elderly Peruvian indigent wondered drunk into the Chile’s northern border. When border guards told the man to stop, he did not. The border guards instead of intercepting the man shot and killed him.

And to further complicate matters a ruckus was caused when a video shown by the Chilean owned airliner LAN Peru, that portrayed Lima as crime ridden capital was seen in a flight by a congressman who accused Chileans of discrimination and for being insensitive to Peruvians.

A number airlines executives in Lima resigned, in Santiago LAN Airlines executives apologised removed the offending video and promised to produce and show in their flights promotional videos of Lima and Peru.

The video in question is shown in most carriers travelling to Lima and is produced by a British production house.

Then came Peru’s government decision to have its Congress approve legislation that it would redraw its sea border with Chile. The newly redrawn border claims a large area of the sea rich in fishing banks for Peru away from Chile’s jurisdiction.

This vote came despite the fact, Chile and Peru have signed two treaties in 1952 and 1954 that demarcated the sea border.

These series of events have marred Chile’s bilateral relations with Peru. Chile has tried to ensure that bilateral relations remain as normal as possible in an effort to make relations stronger not tied to historical events -like Chile’s victory of Peru and Bolivia in the 1879 War of the Pacific- nor entrapped by irritants that are nothing more than a series isolated issues.

Now after the surprise arrival of the wanted former President Alberto Fujimori, Peru has played down any anti-Chilean rhetoric in an effort to ensure Chilean courts extradite to Lima Fujimori with haste.