Peru faces loss of financial aid, other assistance, U.S. warns

April 11, 1992|By Mark Matthews | Mark Matthews,Washington Bureau

WASHINGTON PHB — WASHINGTON -- Peru risks losing virtually all cooperation with the United States and new money from international lending institutions unless it restores democracy, U.S. officials warned yesterday.

"We can only help a fully democratic Peru," a senior administration official told reporters.

The United States is increasing pressure on its own, and through the international financial institutions over which it can exercise an effective veto, in the face of division within the Organization of American States over imposing a trade embargo.

Officials here fear that the Peruvian coup could have a ripple effect through a region of already fragile democracies and aggravate its domestic insurgency.

At a meeting Monday, OAS foreign ministers are seen likely to condemn this week's suspension of Peru's constitution by President Alberto K. Fujimori.

They probably will also dispatch a team that will try to persuade him to change course.

The U.S. has already blocked $320 million in pending aid.

President Bush told a news conference yesterday that he had spoken to the presidents of Argentina and Venezuela about Peru. He said he would consider sanctions and praised the idea of an OAS mission to Peru.

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