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In the name of "Free Trade"

Peru: Blood Flows in the Amazon

Peru: Blood Flows in the Amazon

Recent free trade agreements signed with the American and Canadian governments fueled the Peruvian government to go ahead with changes to domestic laws that would seek to advance mineral, logging, oil and agricultural ‘development’ into previously untouched areas of the Amazon. In early June, President Alan García, an ally of US President Barack Obama, ordered armored personnel carriers, helicopter gun-ships and hundreds of heavily armed troops to assault and disperse a peaceful, legal protest organized by members of Peru’s Amazonian indigenous communities protesting the entry of foreign multinational mining companies on their traditional homelands.

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Dozens of Indians were killed or are missing, scores have been injured and arrested and a number of Peruvian police, held hostage by the indigenous protestors were killed in the assault. President García declared martial law in the region in order to enforce his unilateral and unconstitutional fiat granting of mining exploitation rights to foreign companies, which infringed on the integrity of traditional Amazonian indigenous communal lands.

Alan García is no stranger to government-sponsored massacres. In June 1986, he ordered the military to bomb and shell prisons in the capital holding many hundreds of political prisoners protesting prison conditions – resulting in over 400 known victims. Later obscure mass graves revealed dozens more. This notorious massacre took place while García was hosting a gathering of the so-called ‘Socialist’ International in Lima. His political party, APRA (American Popular Revolutionary Alliance) a member of the ‘International’, was embarrassed by the public display of its ‘national-socialist’ proclivities, before hundreds of European Social Democrat functionaries. Charged with misappropriation of government funds and leaving office with an inflation rate of almost 8,000% in 1990, he agreed to support Presidential candidate Alberto Fujimori in exchange for amnesty. When Fujimori imposed a dictatorship in 1992, García went into self-imposed exile in Colombia and later, France. He returned in 2001 when the statute of limitations on his corruption charges had expired and Fujimori was forced to resign amidst charges of running death squads and spying on his critics. García won the 2006 Presidential elections in a run-off against the pro-Indian nationalist candidate and former Army officer, Ollanta Humala, thanks to financial and media backing by Lima’s rightwing, ethnic European oligarchs and US overseas ‘AID’ agencies.

Back in power, García left no doubt about his political and economic agenda. In October 2007 he announced his strategy of placing foreign multi-national mining companies at the center of his economic ‘development’ program, while justifying the brutal displacement of small producers from communal lands and indigenous villages in the name of ‘modernization’.

García pushed through congressional legislation in line with the US-promoted ‘Free Trade Agreement of the Americas’ or ALCA. Peru was one of only three Latin American nations to support the US proposal. He opened Peru to the unprecedented plunder of its resources, labor, land and markets by the multinationals. In late 2007, García began to award huge tracts of traditional indigenous lands in the Amazon region for exploitation by foreign mining and energy multinationals. This was in violation of a 1969 International Labor Organization-brokered agreement obligating the Peruvian government to consult and negotiate with the indigenous inhabitants over exploitation of their lands and rivers. Under his ‘open door’ policy, the mining sector of the economy expanded rapidly and made huge profits from the record-high world commodity prices and the growing Asian (Chinese) demand for raw materials. The multinational corporations were attracted by Peru’s low corporate taxes and royalty payments and virtually free access to water and cheap government-subsidized electricity rates. The enforcement of environmental regulations was suspended in these ecologically fragile regions, leading to wide-spread contamination of the rivers, ground water, air and soil in the surrounding indigenous communities. Poisons from mining operations led to massive fish kills and rendered the water unfit for drinking. The operations decimated the tropical forests, undermining the livelihood of tens of thousands of villagers engaged in traditional artisan work and subsistence forest gathering and agricultural activities.

The profits of the mining bonanza go primarily to the overseas companies. The García regime distributes state revenues to his supporters among the financial and real estate speculators, luxury goods importers and political cronies in Lima’s enclosed upscale, heavily guarded neighborhoods and exclusive country-clubs. As the profit margins of the multinationals reached an incredible 50% and government revenues exceeded $1 billion US dollars, the indigenous communities lacked paved roads, safe water, basic health services and schools. Worse still, they experienced a rapid deterioration of their everyday lives as the influx of mining capital led to increased prices for basic food and medicine. Even the World Bank in its Annual Report for 2008 and the editors of the Financial Times of London urged the García regime to address the growing discontent and crisis among the indigenous communities. Delegations from the indigenous communities had traveled to Lima to try to establish a dialogue with the President in order to address the degradation of their lands and communities. The delegates were met with closed doors. García maintained that ‘progress and modernity come from the big investments by the multinationals…,(rather than) the poor peasants who haven’t a centavo to invest.’ He interpreted the appeals for peaceful dialogue as a sign of weakness among the indigenous inhabitants of the Amazon and increased his grants of exploitation concessions to foreign MNCs even deeper into the Amazon. He cut off virtually all possibility for dialogue and compromise with the Indian communities.

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The Amazonian Indian communities responded by forming the Inter-Ethnic Association for the Development of the Peruvian Rainforest (AIDESEP). They held public protests for over 7 weeks culminating in the blocking of two transnational highways. This enraged García, who referred to the protestors as ‘savages and barbarians’ and sent police and military units to suppress the mass action. What García failed to consider was the fact that a significant proportion of indigenous men in these villages had served as rmy conscripts, who fought in the 1995 war against Ecuador while others had been trained in local self-defense community organizations. These combat veterans were not intimidated by state terror and their resistance to the initial police attacks resulted in both police and Indian casualties. García then declared ‘war on the savages’ sending a heavy military force with helicopters and armored troops with orders to ‘shoot to kill’. AIDESEP activists report over one hundred deaths among the indigenous protestors and their families: Indians were murdered in the streets, in their homes and workplaces. The remains of many victims are believed to have been dumped in the ravines and rivers.

Conclusion

The Obama regime has predictably not issued a single word of concern or protest in the face of one of the worst massacres of Peruvian civilians in this decade – perpetrated by one of America’s closest remaining allies in Latin America. García, taking his talking points from the US Ambassador, accused Venezuela and Bolivia of having instigated the Indian ‘uprising’, quoting a letter of support from Bolivia’s President Evo Morales sent to an intercontinental conference of Indian communities held in Lima in May as ‘proof’. Martial law was declared and the entire Amazon region of Peru is being militarized. Meetings are banned and family members are forbidden from searching for their missing relatives.

Throughout Latin America, all the major Indian organizations have expressed their solidarity with the Peruvian indigenous movements. Within Peru, mass social movements, trade unions and human rights groups have organized a general strike on June 11. Fearing the spread of mass protests, El Commercio, the conservative Lima daily, cautioned García to adopt some conciliatory measures to avoid a generalized urban uprising. A one-day truce was declared on June 10, but the Indian organizations refused to end their blockade of the highways unless the García Government rescinds its illegal land grant decrees.

In the meantime, a strange silence hangs over the White House. Our usually garrulous President Obama, so adept at reciting platitudes about diversity and tolerance and praising peace and justice, cannot find a single phrase in his prepared script condemning the massacre of scores of indigenous inhabitants of the Peruvian Amazon. When egregious violations of human rights are committed in Latin America by a US backed client-President following Washington’s formula of ‘free trade’, deregulation of environmental protections and hostility toward anti-imperialist countries (Venezuela, Bolivia and Ecuador), Obama favors complicity over condemnation.

Source: James Petras

Economic globalisation
The theory of "free trade", appearing in the 18th century, was initially formulated to prevent the Dutch from closing their colonial empire to English commerce. It served as the political rationale for British colonial expansion, imposing an international division of labor that revealed itself to be much more effective for pillaging resources than the colonial system itself.
In 1941, the Anglo-Saxons devised, as an aim of the war, a shift from the prevailing mode of colonial exploitation to that of unequal exchange in the aftermath of victory over Nazi tyranny. The Atlantic Charter promoted decolonization, free trade and freedom of the seas. This model was formalized in 1947 with the GATT Agreements. This was reinforced during the Reagan-Thatcher era by a vast movement of privatization and deregulation.
In 1991, President Bush announced his vision of a new world order: globalization. The objective was to fill and profit from the void created by the disappearance of the USSR and extend Anglo-Saxon domination in a manner that closely twinned economic and military expansion.
The new model encompassed not only the free trade of goods but also of services and capital, to be regulated by an arbitrating tribunal that would constrain the sovereignty of individual states, which is today embodied in the World Trade Organization.
In the 21st century, this on-going process has led to the dematerialization of the world economy. Favoring the expansion of military-related industries while manufacturers of domestic consumer goods shut down, the Anglo-Saxons created an economy based on "financial products’ (meaning speculation) and the profits derived from "intellectual property" (so called "fair use"). They extended their control over the free trade of goods and services in air space using the "war on terror" as a pretext and over the seas under cover of a "war on piracy". In the meantime, however, the exorbitant costs of the neocolonial occupation of Iraq in 2003 nearly brought about the complete financial collapse of the empire.
At this point, President Obama and Prime Minister Brown attempted to save the system by eliminating foreign financial positions thus compelling capital to migrate in the direction of an Anglo-Saxon fiscal paradise. Additionally, Western governments have in a concerted way placed their means of public finance entirely in the hands of a small number of private banks. As a result, these are now in a position not only to avert collapse but also to acquire firms as they spiral into failure, accelerating the already gigantic concentration of riches.
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Wall Street smart bombs
Wall Street smart bombs
THE ART OF WAR
 
SouthCom: Control of Latin America
Since the 19th century the United States have considered Latin America as their zone of influence (Monroe Doctrine), but it wasn’t until 1903 that SouthCom was created. The aim was to secure the railway strip connecting the Atlantic with the Pacific in order to build a canal. Washington secretly encouraged the secession of the Department of Panama from the Republic of Colombia and sent troops to "guarantee the security of the new State"!
During the Cold War, SouthCom at first overtly supported right-wing military dictatorships, then switched discreetly to orchestrating the repression of marxist guerrilla mouvements under the guise of the ’war on drugs’. This development generated a progressive structural reform. At present, SouthCom operates in close collaboration with numerous US agencies and not simply under the umbrella of the Defense Department.
In the future, SouthCom is expected to expand as and when US forces are withdrawn from the Great Middle East and to concentrate its efforts on controlling the oil fields in the Caribbean region. In the event of a showdown with Venezuela and Cuba, Washington has reactivated its Fourth Fleet (2008), has toppled the Government of Honduras which intended to shut down the surveillance base at Soto Cano (2009) and rented seven military bases in Colombia (2009).
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