Peru's Toledo threatens new protests

Peruvians burn tires in protest against intelligence chief Vladimiro Montesinos, in poster, at Plaza San Martin in Lima

LIMA, Peru (Reuters) -- Peru's main opposition leader Alejandro Toledo on Wednesday threatened to call his supporters out into the streets unless President Alberto Fujimori steps down to make way for elections in four months.

Toledo, who boycotted a May presidential runoff because he said it was rigged, also demanded proof that Fujimori had sacked the powerful spy chief at the center of a scandal that led Fujimori to call shock elections in which he would not take part.

"We're going to start intense, peaceful national demonstrations, starting in the provinces ... to put pressure on the government," he told reporters.

"Waiting until July for a new government would be agonizing and would have counterproductive effects on the economy."

VIDEO Correspondent Sharon Stevenson shows the demonstrations and hears from Fujimori Play video (QuickTime, Real or Windows Media) CNN's Tim Lister reports on the impact of a video tape on Peruvian politics (September 15) Play video (QuickTime, Real or Windows Media)     MESSAGE BOARD Peru in transition     ALSO OAS head says new elections provide Peru 'great opportunity'

The crisis has already battered financial markets and worried investors. Economy Minster Carlos Bolona said Peru was likely to miss key growth and budget deficit targets agreed with the International Monetary Fund.

Toledo's call came just before the opposition and the government had been due to resume stalled talks on democratic reforms overseen by the Organization of American States.

The government has postponed that meeting -- the first chance to discuss some of the political problems Fujimori's announcement has posed -- until Friday, when a spokesman said it would present its plans for the elections and the case centering on spy chief Vladimiro Montesinos.

Fujimori, Latin America's longest-serving democratically elected leader, stunned the nation on Saturday with a call for new polls -- now expected in March -- and a promise to disband the feared National Intelligence Service (SIN).

Many believe it signals a split with Montesinos, who was caught on camera apparently bribing an opposition congressman. But the opposition and analysts said Montesinos remained free and may have cut a deal with Fujimori.

The president says his fate is up to the courts, despite widespread belief the government controls Peru's judiciary.

Toledo, a former World Bank economist of Andean Indian origin, led a protest march in July at Fujimori's swearing-in ceremony that turned Lima's streets into a smoky battleground between police and his supporters. Six people died.

Toledo addresses a news conference in Lima, Peru, on Wednesday

Worries grew that the Fujimori-Montesinos split would create a political vacuum in which the military could take power.

But Fujimori appeared to downplay the crisis on Tuesday, displaying some of the political astuteness with which he has defeated guerrilla violence and economic chaos in the past decade.

Fujimori appeared before thousands of cheering supporters, jumped atop a pillar at the palace gates and waved Peru's red and white flag.

He then told a news conference he was in complete control of the country and would remain so until a government handover, expected in July 2001. He also hinted that he might stand again in 2006.

Commentators warned that instability would prevail until a date was agreed for elections and the Montesinos investigation was seen to be underway.

"The problem is political and we therefore need a political solution. Until we find a political solution, the economic problems will continue," Miguel Palomino, Merrill Lynch's senior analyst for Peru, told CPN radio.

A man wearing a mask depicting intelligence chief Vladimiro Montesinos at protest

Analysts said the 62-year-old leader, in power since 1990, might have diminished his influence over the powerful military by promising to disband the SIN. But even if the armed forces are now divided in their loyalties, officials and analysts say they think a military coup is unlikely.

A senior U.S. official seemed optimistic Fujimori would go through with an investigation of Montesinos.

"We feel the government recognizes it is incumbent upon them to be serious and they are making real efforts to be serious," he said.

U.S. National Security Council spokesman P.J. Crowley said the White House wanted to see a real return to democracy now.

Some Fujimori critics said the fact that Montesinos has not been detained or seen may hint that a secret deal had been cut, or that Montesinos still had the upper hand.

"Mr. Fujimori has pardoned Vladimiro Montesinos because he couldn't beat him. He can't get him out," political analyst Mirko Lauer said. "This speech was Fujimori's defeat."

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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September 19, 2000
Spy chief talks, Peru's fate uncertain
September 19, 2000
Peruvian congressman says he has been threatened over video
September 19, 2000
Fujimori meets with Cabinet as Toledo returns to Peru
September 18, 2000
Peru economic minister says crisis won't derail reform
September 18, 2000
Peruvian security chief detained by military
September 18, 2000
Fujimori calls new elections, will not run
September 17, 2000
Fujimori says strengthening Peru's democracy now his goal
September 7, 2000
Peru's Fujimori wins election that U.S. calls invalid
May 29, 2000

Bienvenidos al Ministerio de la Presidencia (Spanish)
Ministerio de Relaciones Exteriores del Peru (Spanish/English)
Congreso de la Republica del Peru (Spanish/English)
Peru Posible

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