Dozens dead and wounded in Peruvian Amazon clashes

LIMA, (Reuters) – Up to 33 people died and 100 were  wounded as Amazon tribes clashed with Peruvian police yesterday  in escalating protests against the government’s drive to lure  foreign energy and mining companies into the rain forest.

In the worst unrest of President Alan Garcia’s current  government, tribal leaders said at least 22 protesters were  killed. The government reported the deaths of 11 police  officers, some from stab wounds, and three demonstrators.

Angry protesters responded by taking a group of police  hostage near an oil pumping station of state-owned Petroperu.  They threatened to set it ablaze unless police called off  efforts to break up demonstrations in the Amazon basin.

“We have taken 38 police hostage,” Carlos Huaman, a  protester, said on RPP radio. “There are 2,000 of us and we are  ready to burn the station.”

The conflict, which has prompted calls for Garcia’s prime  minister and interior minister to quit, has underscored deep  divisions in Peru between wealthy elites in Lima and poor  indigenous groups in the countryside.

Critics say the government has not done enough to lower the  poverty rate from 36 percent and that economic boom times  enjoyed before the current downturn failed to reach the poor.

“I hold the government of President Alan Garcia responsible  for ordering this genocide,” indigenous leader Alberto Pizango  told reporters in Lima as the government issued a warrant for  his arrest for encouraging the protests.

Members of Garcia’s cabinet accused protesters of being  inflexible, refusing to negotiate and said they would impose  curfews. “The government had to act to impose order and  discipline,” said Prime Minister Yehude Simon.

Simon, a former left-wing activist who was hired a year ago  by Garcia to help avert social protests, has failed for weeks  to negotiate a peaceful end to the blockades.

In the violence yesterday, indigenous leaders said police  shot at hundreds of protesters from helicopters to end a  roadblock on a remote jungle highway 870 miles (1,400 km) from  Lima, the capital.

Police said protesters fired first, but tribesmen denied  having guns and said they only carried traditional spears.
Thousands of Amazon natives, demanding more control over  natural resources, have intermittently blocked roads and  waterways since April to try to force the government to revoke  a series of investment laws passed last year and to revise  concessions granted to foreign energy companies.

The laws encourage oil, mining, and agricultural companies  to invest billions of dollars in the mostly pristine region.
Opposition leaders from the left and right said Garcia  should fire Prime Minister Simon and Interior Minister Mercedes  Cabanillas for allowing the standoff to turn violent.

“This is very damaging for Peru,” former President  Alejandro Toledo said in an interview with television network  Canal N. “Garcia needs to show leadership.”

The protests have shut the main pipeline that carries oil  from the Amazon to the Pacific Ocean for weeks and highlighted  the risks of investing in Peru.

Argentina’s Pluspetrol, which had already curtailed most  work at its lot 1AB in northern Peru, said yesterday it halted  production. It normally pumps about a fifth of Peru’s total oil  output. In April, lot 1AB produced about 16,770 barrels a day.

Garcia, whose approval rating is just 30 percent, blamed  protesters for provoking violence and said it was time to lift  the blockades of roads, rivers and energy installations.

“It appears that this is being done to generate disorder  for electoral reasons,” Garcia said.
Garcia’s allies have at times linked the protests to  populist opposition leader Ollanta Humala, who spooked  investors when he nearly won the 2006 presidential race and is  expected to run again in 2011.

Humala, who enjoys support among the rural poor, said  Garcia’s APRA party made a serious error on Thursday, when it  blocked a motion in Congress to open debate on a law that  tribal leaders want to revise or overturn.

Some of the controversial laws encouraging foreign  investment in the Amazon were passed last year as Garcia moved  to bring Peru’s regulatory framework into compliance with a  free-trade agreement with the United States.

“The government has decided to solve this social, economic  and political problem not in Congress, where it should be  solved, but on the battlefield,” Humala said.