Peru: The Master is Dead

...Because of his military backing and the anti-APRA fervor in his own Accion Popular party and among his Christian Democratic allies, Belaunde was unable to form a parliamentary alliance with APRA, which joined in an "impossible" pact of its own with the right-wing forces of ex-dictator Manuel Odria that had persecuted APRA for many years...

...In Sixto's ayllu, or Indian community, more than 100 varieties of potato are grown...

...The owner of Tuman was forcibly removed from the hacienda...

...The government cannot force this kind of payment...

...The end of feudal bondage is the wellspring of the convulsive social changes that have now launched Peru into the most stunning and confused outbreak of reforms Latin America has seen since the early years of the Cuban Revolution...

...The influx stems from the handing out of food and this having finished there is nothing for you [Indians] to do in the city and therefore it is urged...

...g) at each annual rodeo (roundup) we had to deliver five percent of our animals to the master without payment...

...At the same time the Inca draft labor quota for public works, known as the mita, was converted into mass mobilizations for forced labor in the colonial mines...

...He defined imperialism as "the domination exercised by foreign capital and technology over a society with an incipient and embryonic economy," adding that the Revolutionary government considers that the final source of wealth is labor...

...We can no longer be indifferent to the problems of Peru and the deception of her politicians...

...298), November 8, 1968, p. 11...

...This supposes a new economic structuring, based on partial or progressive state comptrollership, and especially in the organization of a vast cooperative system...

...a cheap knife is sold for 10 times the real value...

...We understand [he said] that the old public administration is inadequate for the purposes of a government that wishes to transform rather than maintain the traditional system...

...If they did not, many people would be killed...

...However, the wealthier Peruvian businessmen reputedly deposit money abroad as readily as do foreigners working in Peru...

...331], July 4, 1969, p. 44...

...Again, if Southern Peru does not arrange financing for 52 Service contracts are a departure from the traditional territorial concession to mining or oil companies in that, instead of enjoying legal title to an area for a given period, the companies are merely enfranchised to look for and extract oil in exchange for a minority share of the production...

...Urban growth has become pathological...

...I am now proposing that the Administrative Council and the General Assembly of the cooperative automatically include the sindicato with voice but not vote...

...Evidently, the future of the so-called Peruvian Military Revolution will be determined in part by the success or failure of other commodity-producing nations in dealing, jointly or separately, with the major industrial powers...

...The Peruvian ruling class, especially as it developed in the late 19th and early 20th centuries, was much less an oligarchy in the Greek sense of the word than a variant of the native comprador class 10 that arose in China 1Q "The term `comprador' (of Portuguese deriva tion) had become well-established in the pidgin NORMAN GALL with the establishment of Western trading enclaves...

...349), November 7, 1969, p. 35...

...Sixto is an affable man with strong, supple features suggesting a mixture of Indian blood with that of the African slaves brought to Cuzco three centuries ago...

...This issue of a nation's control of its own economy has recently been made an even more urgent question for most countries by the extraordinary growth of what has become known as the multinational corporation...

...the great corporations generated a providential capital accumulation within its national frontiers...

...This only partially explains the profound and wide-spread indifference of the great majority of Peruvians that I observed during seven months of traveling through the country, to the apparently radical changes in their society being decreed from above by the "Revolutionary government...

...The most important of these "agroindustrial complexes" is Casa Grande, the largest sugar hacienda in all South America and the biggest agricultural estate in Peru, with 260,000 acres in the rich Chicama Valley on the Pacific Coast and another million acres in cattle and timber lands in the northern sierra and along the semitropical eastern slopes of the Andes...

...Don Alejandro then formally petitioned the Government to sell the land to his association for a reasonable price, but his petition was not so much as acknowledged...

...Peru's military regime will have to take drastic steps to become one of these exceptions...

...But those which display unremitting hostility cannot expect our assistance...

...When last May's earthquake 34 When the chairman of the congressional com mittee that investigated the contraband scandal attempted to publish a book last year disclosing his findings, the printing shop was surrounded by army intelligence agents and the entire edition carted off...

...Conflicts like these accompanied the rise of merchant i According to the newspaper El Comercio of Cuzco, February 22, 1899...

...At 4:30 each morning there was a big lineup in the plaza between the mill and the church [he told me...

...426), December 1, 1970, p. 12D...

...Nevertheless, the manufacturing sector has contributed spectacularly in recent decades to Peru's economic growth, increasing its product at an annual average of 9.3 percent between 1950 and 1967 and its blue-collar work force at nearly the same rate...

...Otherwise the "Revolutionary government" has been able to muzzle and intimidate the Peruvian press quite thoroughly...

...In 1950 a new command school for senior officers called CAEM (Centro de Altos Estudios Militares) was founded to engage generals and colonels 32 A racial mixture of Indian and Negro stock...

...Within two weeks after Peru's new land reform law was decreed, Fidel Castro gave his endorsement: "Our judgment of this law is that it is in reality a radical measure that, if executed fully, can be described as revolutionary...

...from the U.S...

...There the hangman cut out histongue and, his shackles then removed, they placedhim on the ground, tying each of his arms and legs to four different horses, which were sent gallopingin four different directions, a spectacle never beforeseen in this city...

...sources, curtailing the already scarce local credit available to national users...

...Three large Peruvian bond flotations on the London market during the 1820s, equal to roughly five times the new republic's current revenues, made Peru Britain's thirdlargest debtor in Latin America within five years of winning independence...

...They force on us brooches, fancy hatpins, blue bath powder, cheap eyeglasses, rubber stamps, and other ridiculous things, as if we Indians used these Spanish fashions...

...According to the 1963 manufacturing census, 82 percent of the 23,308 factories in Peru had fewer than five workers...

...We deeply want to transfer power to the people, but we have not been able to find a way of doing this...

...The new social conscience of the largely mestizo officer corps of the Peruvian army, long known as "the watchdog of the oligarchy," became a guiding force after the army was forced to deal with a series of peasant and guerrilla uprisings in the Andes during the 1960s...

...the capitalist system...

...34 Two weeks after the documents were removed from Congress, a press conference was called by the new interior and police minister, General Armando Artola, a bald, beefy, blustering cavalry officer in dark glasses who was chief of Army Intelligence during the 1965-66 guerrilla insurrection...

...c) an equal number of us were sent every 40 days to the malaria-ridden valley of Marcapata to work the master's hacienda there, being paid 20 cents a day...

...The man in that house once stole sheep from me," Sixto once said as we crossed the puna...

...currency of Peruvian sols...

...In his speech last October at Lima's Plaza de Armas in observance of the military's second anniversary in power, Velasco admitted before one of those huge packaged crowds that "it has not been possible during this first stage to articulate an organized and massive popular support for the Revolution, nor to resolve completely the fundamental problem of the effective participation of the people in the revolutionary process...

...Military coups do not suppress this evil, but nourish its cause...

...Land Reform on the Coast N THE DAY OF General Velasco's speechO proclaiming the new land reform law, the "Revolutionary government" moved to expropriate the great coastal sugar mills and haciendas, or "agroindustrial complexes," that had been specifically exempted from expropriation under the old law...

...but there is more to it than that...

...Apart from the social purpose, which is to give the land to those who work it, and the economic purpose, which is to redistribute agricultural incomes so as to expand the national consumers' demand for Peruvian products, the agrarian reform also intends to prevent the economic and political monopoly characterized by the existence of an agrarian oligarchy...

...NORMAN GALL tracted congressional debate over a new land reform statute, Belaunde borrowed $5 million from the Chase Manhattan Bank at commercial interest rates to finance expropriation of the Fernandini estate, Hacienda Algolan...

...17 The overseas manager of the National City Bank reported in July 1927, shortly before the bonds were issued, that "Its [Peru's] principal sources of wealth, the mines and oil wells, are nearly all foreign-owned, and excepting for wages and taxes, no part of the value of their production remains in the country...

...the harvested potatoes were gathered in small piles and covered with straw, and a small cross was planted on top to keep witches from cursing the potatoes...

...1930, the year he entered Chorillos, a zambo 32 colonel from Piura, Luis Miguel Sanchez Cerro, led a provincial rebellion that ousted the 11-year Leguia dictatorship and launched Peru into a new era of conflict, enlivened by recently imported Marxist and fascist social theories...

...41 This is quite a contribution to an economy with chronically high unemployment aggravated by rapid urbanization and a population explosion that generates massive pressures on the job market each year...

...He was approached by political interests hostile to the Government who offered their help, but Sr...

...In industry after industry, U.S...

...For his trips to Cuzco, Sixto has been paid 75 cents a day in expenses, and has spent his nights on a sheepskin in the Ministry of Agriculture garage, where a former Lauramarca peasant works as watchman...

...In the old days the Indians were regularly sent to fetch snow from the great mountain, 21,000 feet high, and carry it on their backs to the hacienda, wrapped in burlap and straw, to be made into ice cream and sold for the master's profit in the Sunday peasant market at the casa grande of Lauramarca...

...21 See the agrarian reform pamphlet, Del Latifundio a la Reforma Agraria, for the government'sversion of foreign ownership of the great haciendas...

...Kind, and Progress of the Military Coup T T HE REAL CAUSES of the military coup are more complex...

...Shortly after the 1968 coup, the military began implementing a national development plan drafted at CAEM and submitted to Belaunde in 1965...

...4 • a) we performed obligatory service as pongos (unpaid household servants) to the master and his relatives...

...this is done several times until the potato is completely dehydrated, and all that is left is a small, bitter black ball that does not rot with time...

...The new industrial laws—taken together with the agrarian reform and the other new statutes governing the main sectors of fishmeal and mining as well as the "salami tactics" being used to nationalize gradually the private banks—bring into clear focus the effort to reorganize the Peruvian economy along statist and nationalist lines...

...in the early 1950s to exploit the neighboring Toquepala mine, and exercised options on Cuajone and Quellavico, the other two unexploited deposits in what should become the world's biggest copper-mining complex...

...That may be true," the rabbi answered...

...Over the past decade, the Peruvian army has come to be known as one of the most professional in Latin America...

...The pressures for better terms of trade for producing companies have been strongest in copper and oil, and have left the consuming nations in a bad mood...

...We came to realize that the whole nation needed the same treatment if we were to survive in peace...

...The 30 comuneros rotate the tiny potato patches among themselves each year to ensure that no one permanently uses better or worse land than the rest, a practice dating from Inca times that has died out in most of the sierra...

...copper concessions in Chile could not have been brought into production without huge loans 53 Theodore H. Moran, "Chile y el mercado del cobre: `dependencia' y `independencia' en Ia decadadel 70," in Panorama Economico (Santiago: no...

...19-40...

...Among the Indian communities surrounding Carhuaz leaflets were circulated containing the text of the decree-law governing reconstruction of the earthquake zone, with a false article added granting immunity for invasion of lands...

...At the 13,000-acre Hacienda Tuman, owned by the aristocratic descendants of Presidents Manuel Pardo (1876-79) and Jose Pardo (1904-08 and 1915-19), and given to the family by Congress after the elder Pardo was assassinated on the Senate floor, the group of Ministry of Agriculture officials sent to take over the hacienda were met by Tuman's young manager, Juan Pardo Aramburu, who blocked their path and said, "I am sure that President Velasco does not know what he has done in decreeing the agrarian reform law...

...25 Moreover, the present torrent of Latin-American urbanization differs basically from that of Europe a century ago, when the rate of industrial employment was much higher and the peasant migration rates were much lower...

...Politically, the Andean departments of Peru traditionally have been somewhat akin to the Solid South in the U.S., with heavy overrepresentation in Congress elected by less than one-fifth of the voting-age population, since the Indians cannot vote because of the literacy requirement...

...After supper the family disperses to different houses to sleep, the two women and the little girl stretching out in the hovel where the potatoes and chuno are stored, while the eldest boy sleeps in a tiny, hive-like hut overlooking the corral to guard the animals and the newly harvested potatoes from theft...

...corporations in Latin America in 1968 was triple the new funds obtained from U.S...

...They often feel degraded by being stranded among the Indians, the idea of a desk job in Lima being closer to their hearts, and generally they work with little energy or enthusiasm...

...In 1849, after payment of the British bonds had been in default for 23 years, the bondholders, backed by British diplomats and English of the China coast to designate the `general manager' who represented a foreign merchant in all his operations in China...

...Nevertheless, to continue its present reforms the military will have to deal ruthlessly with both intractible social problems and its own traditional fear of mass political mobilization...

...The Revolutionary government will have to correct this situation with energetic measures...

...It was under President Belaunde's rule that, in 1964, Peru's first general land reform law was finally passed by a Congress frightened by the wave of peasant rebellions and land invasions in the sierra...

...28 In roughly two decades of clandestine and semiclandestine activity that followed the 1932 Trujillouprising, APRA developed the characteristics of both a tightly disciplined political party and a kindof quasi-religious Masonic cult, with its own passwords, ritual, and litany and all moral and politicalauthority vested in its leader, Victor Raul Haya dela Torre, who frightened Peru's traditional rulingclass with the potential voting power of the provincial mestizos...

...Few events of the 1960s did more to discredit the parliamentary system than the deals made by the political parties in control of Congress to create in the 1964 law huge procedural obstacles and exemptions preventing the expropriation of large haciendas—for which, in any case, the land reform agency was systematically starved of funds...

...The General Law of Industries (1) reserves all basic, heavy industry for the public sector...

...of the United States...

...Among those involved were the navy minister, the naval intelligence chief, and the director of the PIP (Peru's FBI...

...The revolutionary laws in the industrial sector establish the participation of labor in the profits, management, and ownership of businesses...

...What these Castillians have bought for 2 or 3 pesos they force on us for 10 or 12...

...Agriculture and manufacturing will be concentrated in cooperativetype organizations subject to state fiscal and credit control, while artisan crafts and petty commerce would remain largely in private hands to absorb the great mass of underemployed at the fringes of the economy...

...But we began to tell the landlords and politicians that this dirty work was no longer for us...

...For the Russians, it is not a question of aiding a country trying to end its dependence, but a business deal like any other...

...The long political stalemate was complicated by a series of contraband scandals involving prominent military officers and politicians and by a financial crisis leading to a 50 percent devaluation of the Peruvian sol in 1967...

...My father hated him...

...private companies invested $297 million in Peru and during the same period withdrew $628 million in dividends, interest, and other remittances, while dollar accounts of Peruvians in the United States tripled.48 The Economist estimated the drain of capital from Latin America by mutual funds alone at $450 million annually, equal to all World Bank loans to the region through 1968 and half the area's balance of payments deficit 49 This is why the "Revolutionary government" last May decreed one of the world's tightest exchange control systems...

...On a visit to Casa Grande a few months after it was expropriated by the agrarian reform, I chatted with an old field foreman who recalled the days early in this century when the expansion of Casa Grande was gathering momentum, when there were some 13,000 workers instead of the present automationreduced payroll of 5,000...

...Velasco's first important post on the bureaucratic ladder of the army was director of Chorillos from 1950 to 1953 under the violently anti-APRA dictatorship of General Manuel Odria (1948-56) . One of Velasco's main tasks as head of Chorillos was to instill in the cadets a fervent fear and hatred of APRA, and Velasco had to be especially convincing in this role because he was married to the clever and beautiful daughter of an APRA leader from Piura...

...Most of the people of the Andean area known as the mancha indigena, or Indian oilstain, are illiterate and speak only NORMAN GALL Quechua, which in its many local dialects is still the vernacular in most of the highlands of Peru, Bolivia, and Ecuador...

...He will go to Hell," my father said of him...

...litical favors and their degeneracy...

...Since the stuff was sold abroad on monopoly consignment to foreign merchant houses, who inflated shipping and handling costs, the Peruvian government's income from the London guano sales was greatly reduced...

...For all the talk (and the reality) of imperialist domination, most of the underdeveloped nations want domestic foreign investment, European and/or American, for a variety of reasons...

...Some came on horseback behind women who formed the forward phalanx, marching with swaddled infants on their backs, casting stones with slingshots at police assault troops with punishing accuracy...

...Then, beneath the gibbet, the arms andlegs of the Indian and his wife were cut off andcarried to the hill of Picchu, where they wereburned to ashes and the ashes cast to the wind and into the little river that runs by there...

...What we are seeing is a so-called revolution of the middle class on the make, an alliance between military and civilian technicians of the middle class, mainly interested in better jobs for themselves...

...13 After this was officially prohibited, the same insiders launched a spectacular financial operation politely known as consolidation of the internal debt...

...In January 1964 several hundred peasants invaded the bottomland of the Hacienda Onocora near the town of Sicuani, where the pasture land and an old flour mill were disputed in a battle between comuneros and police that left 17 dead and 30 wounded, leading to a suspension of constitutional guarantees in the southern sierra and a police roundup of "communist agitators...

...The departmental prefect called us to his office in the city of Chiclayo to discuss the strike, and had us arrested in his office when a decision came from a labor judge declaring the strike illegal...

...They are eaten when they die of sickness or old age, and their wool barely meets the family's needs for yarn to make their garments...

...During the stock market craze and commodity boom of the 1920s, the Peruvian foreign debt increased nearly tenfold, mainly through $143 million in loans from New York banks which led to the appointment of an American in 1921 as administrator of Peruvian customs to guarantee the loans...

...Also, why must he begin with Tuman, which is the country's fourth-biggest taxpayer...

...Good laws are not enough if an authentic revolutionary mystique does not exist at all levels of the public administration...

...The town was a settlement of whitewashed mud houses occupied by half-breed merchants and petty officials who prospered from buying stolen sheep and from other forbidden traffic with the Indians, which emboldened them to agitate for transfer of the region's weekly peasant market from the hacienda to the town plaza...

...General Velasco became president because he was senior commanding officer of the army when the army executed an "institutional" coup d'etat on October 3, 1968— three months before his scheduled retirement— to make him the visible head and main spokesman of what journalists call the "Peruvian Military Revolution...

...too much...

...Among the "promoters" were three senoritas—an anthropologist, a social worker, and a home economics teacher—very pretty in dark glasses and flowing kerchiefs beneath broad "The Indian and his culture have always been Peru's great beauty and agony...

...To appreciate the staggering obstacles to the achievement of this goal, it might be well to look at the structure of the Peruvian industrial sector, which is similar to that of most developing countries...

...Six months after the coup, the magazine Caretas, which had relentlessly exposed the contraband scandals in the Belaunde regime, reported and commented on a new "decreelaw" enabling the government to summarily purge army generals who were out of line politically, as well as one of the four unpublicized pay raises that the military had received since taking power...

...25 See Kingsley Davis, "The Urbanization of the Human Population," in Scientific American, September 1965, p. 41...

...army intelligence school in Baltimore, complained to me of the low cultural level of those forming the organizing committees of the new cooperatives...

...Yet the labyrinthine social and psychological depths of the Indian problem, raising complex issues of race, class, and property, are fully equal to those of the Negro question in the United States.6 Through nearly all its history, the Peruvian economy has depended on various forms of involuntary servitude, dating back 6 Under the new land reform program of the "Revolutionary government," Indians are nowcalled campesinos, which is supposed to be moredignified...

...Or perhaps in 15 years the burro might even learn how to talk...

...This process has embraced the rapid growth of towns, a flood of peasant migrants into the cities, the mushrooming of public education, the rise of a large middle class that dominates the government bureaucracy, the punching of penetration roads into remote mountains and jungles, and a series of peasant rebellions in the Andes of increasing frequency and violence that led to the guerrilla insurrections of the 1960s...

...The family lives in a compound of four adobe huts with a cold mountain stream running through the interior patio...

...Peru's financial prostration after the War of the Pacific, and its utter dependence on loans, led it to delegate its tax-collecting functions to a consortium of the five largest Lima banks, known as the Caja de Depbsitos y Consignaciones, which for the next seven decades not only charged commissions for tax-collecting and indulged in fraudulent accounting practices, NORMAN GALL but also lent out the government's money at high interest both to the public and to the government itself...

...Seven years later, titles to the land were finally being distributed, and the local agrarian reform director proudly invited me to a ceremony in the village of Quelluno, deep in the valley, where the land titles were being handed out...

...generals and colonels who ousted him, Victor Raul Haya de la Torre, who wrote in his fundamental work, El Antiimperialismo y el APRA: "The belligerent strength of the middle classes must be used in the benefit of national liberation...

...The sons of Aspillaga had no talent or appetite for the business...

...In 1933, Velasco's last year at Chorillos, Sanchez Cerro was assassinated, allegedly by an Aprista, making way for another six years of military dictatorship...

...We asked why there was no equality, since land is in abundance in some places and the rules say nobody can have more than 75 acres...

...The successful army officer is an ingrained bureaucrat...

...he had worked as a scribe in the Old Man's haciendas...

...There is an international conspiracy to overthrow this government [he told me...

...It was Archbishop Farfan who, around that time, issued a widely quoted pastoral letter that said: "Poverty is the most certain road to eternal "We don't know whether we will have a new life or just a new master, the government...

...The mill is the greatest modern monument of the valley, built more than a half-century ago by the German owners of Casa Grande, the Gildermeister family...

...On a long reporting trip I made to Cuba a few years ago, I found that virtually every casa grande of every nationalized hacienda had been converted into a school for the symbolic and functional purposes of creating a new society...

...However, by this time the newspapers had published so much about La Ciudad de Dios that it became a matter of great public interest...

...handouts and bargain sales of surplus military equipment...

...29 The New Workers Cooperatives T T HE CONVERSION of Peru's great agricultural estates into workers' cooperatives— instead of dividing the land among individual peasants—reflects an effort to preserve economies of scale and thus avoid the production declines and food shortages that have plagued most land reforms in this century...

...The engineers know technology and know how to talk while we have many illiterates...

...The great trouble with military regimes, even reformist ones, is that they provide no long-term political solution...

...embryonic Industrial Communities have been organized and registered within 60 days of the decree...

...One of those arrested later told me, "The sindicatos we organized could not be stopped...

...6), October 1967, p. 55...

...But we would not reject such a solution if it were revealed to be absolutely necessary...

...In practice, the cooperatives are dominated by merchants and richer campesinos who buy coffee from peasants desperately in need of cash and resell it to the cooperative at the higher price that is paid after several months...

...We don't know if this is entirely true...

...In 1948 the sugar and cotton barons could still induce a general to seize power, end exchange controls, devalue the currency to enlarge their exports, and crack down on the APRA unions on their plantations...

...They are overcrowded because the owners didn't care who lived in them, and so the workers brought in their relatives from the sierra, giving Cayalti a population of 19,000 supported by only 2,000 workers...

...Nevertheless, although the bitterness between APRA and the army continues, the larger social pressures involved were bringing this age to an end...

...Each worker had to deliver four tons of guano daily to the edge of a cliff...

...We are trying hard to help them along, and we are working without a political banner...

...Cuajone is a giant open-pit mine containing 470 million tons of ore, capable of yielding 140,000 tons a year of near-pure "blister" copper...

...The workers' houses are hovels, built at the turn of the century...

...16 One of the most notorious of all the escapades of the National City Bank of New York in Latin America during the twenties was the payment of a $450,000 bribe to the son of dictator Augusto B. Leguia (191930) for "not interfering" with the floating of $100 million in bond issues, which were sold at a handsome profit to American investors before Leguia was overthrown and the bonds went into default...

...The mill has to be completely replaced...

...Before the contract was signed, the Peruvians approached the Russians for PERU: THE MASTER IS DEAD help to exploit Cuajone themselves...

...in its place was painted a likeness of Tupac Amaru and a famous slogan in Quechua: "Ama Sua, Ama Llulla, Ama Kella" ("Don't Steal, Don't Loaf, Don't Lie") . Shortly thereafter, a bulldozer demolished the high wall that separated the living quarters of the foreign technicians from those of the Peruvian workers, to great fanfare and applause...

...In GM's first year of assembling cars in Peru the company grossed three times its initial investment of $5 million, with its local payroll and purchases amounting to 15 percent of sales, while its customs duties were halved as an incentive to assemble rather than import cars...

...Most army officers come from middle class mestizo families of provincial towns, and stand somewhat uncomfortably apart both from the great mass of Indians and cholos beneath them and families of whiter skin that form the traditional landholding and commercial oligarchy...

...When the 1964 agrarian reform law was being debated in Congress, they made a deal with the landlord interests to exempt the big sugar haciendas from expropriation...

...Around the time the agrarian reform "promoters" left the Hacienda Lauramarca to form cooperatives elsewhere, a governmentappointed manager moved into the manor house formerly occupied by the old administrator, and the new manager im mediately tangled with the Indians—as did the old one—over their invasion of the central pasture lands reserved for the hacienda...

...and German interests...

...When Belaunde was ousted, the mining companies held back on their investments and resisted polite pressures to go ahead until the leftist-nationalist Minister of Mines General Jorge Fernandez Maldonado delivered the companies an ultimatum: develop all unexploited concessions, or the mines would revert to the state...

...Of Peru's generals serving in the period 1955-65, 56 percent were born either in the sierra or the Amazon region, while 94 percent of the directors of Peru's largest corporations in the same period were born in Lima or elsewhere on the coast 33 The impact of the army officer corps on the profits and practices of these corporate directorates since 1968 is now a matter of historical record...

...All will come to live there...

...6-7: "Landlords sent their sons into the cities to join the lucrative business of compradoring...

...On June 24, 1969, President Juan Velasco Alvarado, who was the army commander at the time of the coup, appeared on nationwide radio and television for a historic speech, announcing that today the Government of the People and the Armed Forces put in motion a vigorous and irreversible process of national transformation, thus avoiding the chaotic outbreak of social violence and giving autonomous solutions to the age-old problems of Peru...

...2 The tropical leaf chewed by Andean Indians with a piece of lime to produce cocaine, stimulating agastric secretion that reduces hunger...

...the area is one of the centers where the potato was domesticated in pre-Columbian America...

...This has made us drastically update the curriculum of our military academies, making the army the most modern national institution that Peru has today...

...Before the agrarian reform it was impossible to take these jeeps outside the hacienda...

...The new agrarian reform either will destroy the parasitism of the mestizos who have been feeding on the Indians for centuries, or it will quickly become a sad and lurid farce...

...Then the system would change from co-management to worker management...

...We were worried about Communism, and we wanted to know who else was behind these uprisings...

...None of the hacienda's seven schools—all built by the peasants themselves in recent years—go beyond the second grade.] With the cooperative we will have medical treatment...

...409), February 5, 1971, p. 14...

...Lima: 1970), p. 113...

...1932, Velasco's third year at Chorillos, the bloody APRA uprising occurred in Trujillo and the slaughter of the 11 army officers taken hostage there was to engender hatreds that have never been erased...

...Like Mexico during the 1930s, Peru today is going through a period of extraordinary social and economic reorganization to achieve greater social justice...

...Whether the Peruvian people, and especially Peruvian bureaucrats, can run complex, automated mines and make a sweeping agrarian reform both economically productive and socially just, is the key to this extraordinary but still-undefined process of change...

...The "empire" will defend itself, obtaining customs protection...

...he is the living image of the Indian awakening to the modern world...

...The game runs this way: since the $215 million Toquepala project of the 1950s and the even larger U.S...

...They established a huge supermarket, or "bazaar," on the hacienda which made Casa Grande the dominant commercial establishment in the region, ruining local merchants in the city of Trujillo thanks to price advantages derived from the Gildermeisters' having their own ships, railroad, and duty-free port...

...The Indians then entered the town in three columns, occupying the city hall, the main plaza, and the police station and taking the subprefect's wife as hostage...

...As expected, Ford and General Motors and the First National City Bank have withdrawn from Peru, and local businessmen have not only been shy of making new investments of their own money but also of accepting easy credit from the government...

...Moreover, not understanding that Peru now lives in a new epoch, many of them frequently act as saboteurs of the Revolution...

...They actually had saved some money to buy the land, and were surprised that the agrarian reform would not be dividing the hacienda...

...The master is dead...

...He has been listening to a group of civilians acting behind the scenes...

...Between 1852 and 1854 some 60 coolies committed suicide by throwing themselves over the cliffs...

...At last he decided on a vast tract of pampa lying between the Atocongo and Ica highways with abundant water and useful construction materials...

...These abuses, however, should not becloud some of the extraordinary changes that the social conscience of the military has undergone in recent years...

...Document no...

...When the rabbi told the elders of the town of his contract, they said: "You're crazy...

...When the first shipment of the stuff reached Southampton, England, the odor was so foul that the whole town reportedly took to the hills...

...26 Nevertheless, few Peruvians would disagree with the contention of their able foreign minister, one of the ideologues of the "Revolutionary government," that "the barriadas, a new phenomenon, are a symbol—despite their scars—of the process of liquidation of the feudal system in the Andean region...

...To make sure things run smoothly, the army colonels at each hacienda report directly to the chief of army intelligence in Lima, with frequent consultations with the 11 Intelligence colonels forming the COAP (Committee of Advisers to the Presidency) in the Presidential Palace that plans and oversees the execution of the reform program of the "Revolutionary government...

...In the Andes the Spanish conquest pressed the former Inca empire into the European mercantile economy...

...We agreed that things would stay as they were until a new cooperative law is decreed...

...Belaunde's reform program was faced from the beginning with a hostile congressional majority...

...We do not seek confrontations with any government...

...14, nos...

...the leftist intellectuals who now edit Expreso each assigned themselves three or four salaries drawn in the name of relatives, and have turned the paper into a servile official organ...

...Looking forward 25 years we see a sprawling metropolis of some 6 million inhabitants...

...e) carrying the hacienda's produce to the cities of Cuzco and Sicuani, using our own pack animals on journeys of 10, 15, and 20 days, being paid five cents for each ton of wool or potatoes delivered...

...The whole issue of Caretas was confiscated and its independent editor, Enrique Zileri Gibson, deported from the country...

...From the hilltops he shouts with the voice of damnation, warning his Indians that he is everywhere...

...And not only the traditional U.S...

...Otherwise, the "Revolutionary government" can become increasingly repressive in coming years, with ennervating slogans of "revolution" blaring over loudspeakers while the people are subjected to increasingly barren and restricted lives...

...All our meals are potato or chuno, chuno or potato," Sixto told me one night over a bowl of potato soup...

...It will cost roughly $355 million to bring Cuajone into production, a sum equal to all accumulated U.S...

...When Padre Hilario Antonio Saldivar appeared at a window to speak to the mob, he was blasted with buckshot and died a few days later...

...At last it was apparent that the Government had no intention of even recognizing his hopes, and he determined to occupy the land...

...The drain of capital from the poorer countries to the richer ones, as recorded in U.S...

...PERU: THE MASTER IS DEAD secretly negotiated a contract with two French banks to swap the new bonds for gold to be repaid out of proceeds from guano sales in France...

...Within three months the Cuajone contract was signed, despite furious protests by leftist supporters of the "Revolutionary government" who urged exploitation of the mine by the state itself...

...We will build you a dairy factory to process your milk, butter, and cheese, and there will be artificial insemination as well, and you can bring your weaving to sell through the cooperative...

...The patron, Gildermeister, was there himself, on horseback, as were the field bosses, and the peons were massed like footsoldiers in a huge military formation, assigned for the day to this field or that, carefully counted so that just enough lunches would be sent to the fields at mid-day...

...35 The close relationship with the U.S...

...Since the development of Toquepala was financed by a $100 million loan from the U.S...

...Despite a tragically high dropout rate, incompetent teaching and backward curriculum, hundreds of thousands of peasant teenagers each year move into adobe hovels at the outskirts of provincial and departmental capitals to finish their primary and secondary studies, subsisting mainly on potatoes and chuno sent mouthy by their families in remote villages and Indian communities...

...The campesinos want arms to defend our agrarian reform...

...he would solve the problem...

...If they work together constructively, the Industrial Community will be a success...

...According to the progovernment magazine OIGA, "the U.S.S.R...

...parliamentary votes of censure forced some 20 cabinet changes in five years...

...In Peru today most of the manor houses of the great haciendas are being inhabited by agrarian reform functionaries, and sometimes by army colonels as well...

...The modernization of Peru has generated immense social pressures leading to the blizzard of decrees of the "Revolutionary government" that have been descending over Peru since the armed forces seized power two years ago...

...In the meantime the valley became one of the main industrial centers of Peru, with 100,000 workers concentrated there, turning the mill centers into virtual cities with administrative offices, churches, a hospital, primary and secondary schools, bank branches, stores, and later movie houses, all surrounded by the densely packed workers' dwelling compounds...

...He died just a few miles from Cuzco, and gave a curse with his last words...

...We called a sindicato meeting and decided to strike, giving three days' notice...

...Potatoes have a sweeter taste, but they can only be stored for half a year before they rot...

...Ironically, it is the ostensibly 'national' firms who eagerly `pirate' away the foreign technicians from the explicitly foreign-owned companies...

...6) provides progressive participation by the workers in management decisions as their stock ownership increases...

...ment abroad...

...Ever-mindful of this, the "Revolutionary government" repeatedly jailed APRA union leaders under a new "decree-law" providing summary imprisonment for "sabotaging the agrarian reform...

...New hopes were raised from the booming "An extraordinary series of regulations governing the day-to-day opertions of the cooperatives...

...Business activity practically ceased in the small towns of the valley, and the Chamber of Commerce of Trujillo repeatedly protested in vain to the government against the "scandalously ruinous" practices of unfair competition by the bazaar at Casa Grande.Z 7 The result was a political alliance against the power of the Gildermeisters between the dispossessed landowners of the Chicama Valley, the urban middle class, and the new sugar proletariat on the great haciendas, a pattern repeated throughout northern Peru...

...Although the government did not refute the charges of mail censorship, Zileri was found guilty, fined a month's salary, and given a six-month suspended sentence subject to "good behavior...

...But when an adverse administrative decision comes, all is lost...

...The new rules prohibit membership in any of the governing bodies of the cooperatives to all persons who have exercised leadership in any political party, or who have benefited from special leave from their jobs while holding union office, a feature of both Peruvian labor law and most union contracts...

...Casa Grande and the other principal sugar haciendas of the north coast were expropriated within a few days of General Velasco's June 1969 speech proclaiming the agrarian reform...

...the incident caused the fall a few days later of the first of Belaunde's eight cabinets (in five years) under censure by an opposition parliament controlled by landlord interests...

...Second, this process is carried out with a minimum of political mobilization...

...On the night before the attack, the mayor and other town notables crossed over to the hacienda to sell aguardiente—a crude and powerful sugarbased liquor—to the Indians on the eve of the Lenten carnival...

...Many want to divide the land among themselves and not have a cooperative...

...We admit that our greatest political problem is to give a real role to the people in the process that is going on right now.38 Audacious New Industrial Laws T T HIS POLITICAL ISOLATION, however, has not inhibited the military from undertaking some original social experiments...

...Harold Isaacs adds in his classic The Tragedy of the Chinese Revolution (Atheneum, 1966), pp...

...These old cultural molds are proving an imposing obstacle to the revolutionary changes being attempted in Peru today...

...382), October 14, 1968, p. 25...

...PERU: THE MASTER IS DEAD to Inca times...

...velopment...

...49 The Economist para America Latina, October 15, 1969, p. 8. PERU: THE MASTER IS DEAD porations...

...indeed, between 1958 and 1966 the number of Peru "Cities like Lima "have outgrown their own means of livelihood...

...See R. David Belli, "Sources and Uses of Funds of Foreign Affiliates of U.S...

...But citizens should also insist on a new attitude and should not tolerate any more the insolence, unjustifiable slowness, and corruption of bad functionaries...

...Foreign interests in partnership with Peruvian capital can keep up to 49 percent...

...Since the agrarian reform took over, the new manager and his agronomists don't go out on horseback to inspect the fields...

...He was born in 1909 in the northern coastal city of Piura, at a time when Chinese coolie labor in the nearby cotton plantations was being replaced by Indians recruited in the sierra...

...sees the best land—the rich, semitropical river bottoms where the Andes descend below 9,000 feet—still used to grow sugar cane for making aguardiente for sale to the Indians, meaning that the most lucrative use of the best land lies in keeping the Indian drunk...

...The attack came after the mayor of Ocongate was captured and marched shoeless to the casa grande, a fortress-like adobe compound encircled by walled stockyards and a few withered eucalyptus trees, which the Saldivars had owned for generations...

...The rural and smalltown economy is of such low productivity that the bureaucracy has become the main route of advancement for young mestizos, who become schoolteachers, army officers, and agrarian reform bureaucrats...

...Sixto's precious guinea pigs flee and scream on the earthen floor beneath the old hand loom on which the family's clothing is woven, and among the primitive farm tools and grinding stones and the brightly colored plastic pails and basins bought at the Sunday market in Ocongate...

...the townspeople rammed their way into the stone-paved interior patio and sacked the casa grande, leading away sheep and horses and alpacas, and carrying off stores of barley and aguardiente...

...Virtually all the great revolutionary movements of this century—in Russia, Mexico, China, Bolivia, Cuba, Algeria, Vietnam— have held aloft the banner of land reform...

...This indifference is all the more striking to a journalist who, on previous trips to Cuba, Guatemala, Santo Domingo, Venezuela and most recently Chile, has seen many thousands of people engaged in passionate conflict when such changes were in the air...

...The commitment, moreover, is not to reconstruct the misery but to build a new society...

...These unpaid loans were kept on the books as assets, and dividends on nonexistent profits were distributed among stockholders...

...Indeed, the army officers' corps comprises leading members of this middle class and would probably be among the first to oppose such measures as abolition of private schools, one of the main NORMAN GALL pillars of class distinctions in Latin America, which Fidel Castro abolished in 1961 in one of the most decisive blows he dealt his middleclass political opposition...

...In 1853 the labor force extracting guano consisted of 600 Chinese coolies and roughly half as many slaves and prison convicts...

...his wife Vicintina, whom he brought here over the mountains from the Vilcanota valley 15 years ago, is a strong, bright-eyed woman with ashen feet, wearing the traditional black homespun skirt and embroidered red jacket and canopy hat, with sodden hands working swiftly, excavating and sorting potatoes, some for chuno and some for eating as they are, placing them in different striped bags of finely woven alpaca that are brought to the high sierra by the Indians who make them near the coast...

...In this way Peru became, until the present military regime seized power in 1968, one of the most submissive fields of foreign business operations in Latin America...

...Explaining these innovations to a meeting of business executives last November, Velasco stressed that "we know that this will be a painful, slow and difficult labor...

...In all three cases a tiny minority of the work force was involved in economic activity that flooded a poor, backward country with sudden wealth...

...The Indians still live in their hovels and tend their animals and are cheated by the merchants of Ocongate, who tell them the agrarian reform will take away their land and their animals and will make them work from dawn to dark," a young schoolteacher told me, Then some students from the University of Cuzco came to the hacienda and told the peasants that the only real agrarian reform is with blood, that the land is theirs and they should not pay for it with government bonds...

...Manuel Segarra of the COAP to settle the strike by talking with the sindicato and cooperative leaders...

...Thievery is a constant danger and obsession for the campesino...

...military establishment has generated, not surprisingly, an unusually strong love-hate syndrome among Peruvian officers, which is intensified by their dependence on U.S...

...Many estate managers are staying on to administer the expropriated haciendas, so there has been little change in the traditional relations between mestizos and Indians...

...Several months later, one of the Peruvian army's leading counterinsurgency specialists, a cultivated officer with a law degree who personally ushered the once-popular President Belaunde out of the Presidential Palace in Lima at 5 A.M...

...The main structure is a cooking house that is filled with smoke at mealtimes, since there is no chimney...

...From Patch, "The City of God," Institute of Current World Affairs newsletter RWP-7, 1955...

...Nevertheless, the success of the new sugar cooperatives, and indeed of the entire process of accelerated change, is being jeopardized by the failure of Peru's military rulers and APRA, still the country's strongest political party, to reach the understanding that the situation obviously demands...

...He is the lean, lithe, bespectacled son of an Ayacucho hacendado, born in the Andean area where he was to lead the most successful of the three guerrilla operations...

...This social dynamism is reflected in the biographies of President Velasco and many other Peruvian military leaders, the army being the image, roughly speaking, of modem Peruvian society in that the officers are mestizos, the sergeants are cholos and the privates are Indians...

...In an early presidential speech, Velasco said "we military men are not beginning now PERU: THE MASTER IS DEAD to learn about Peru...

...At night the new agronomists drive the hacienda's jeeps into the city of Trujillo to go to the movies...

...The Changes T T HE NEW AGRARIAN REFORM and the other radical measures decreed by the "Revolutionary government" are climaxing the swift and convulsive change that Peru has been experiencing in the postwar years...

...The men were cooperative organizers, veterinarians, and agronomists, recently contracted by the expanding land reform bureaucracy, many of them sons of small hacendados of the Cuzco region...

...If they don't work together, the old owner may find it more conveninent to sell his remaining half to the Industrial Community...

...Quoted in OIGA [Lima: no...

...Yet remember there is a law giving a jail sentence to those who say false things to sabotage the agrarian reform...

...Last November, when Caretas sharply criticized economic policy and accused the "Revolutionary government" of censoring the mails, citing as an example Artola's reading aloud of intercepted letters at a press conference, the magazine was attacked from three sides: its offices in downtown Lima were taken over by 15 government tax investigators, and Zileri, who had been allowed to return from his 1969 exile, was accused of obscenity and "crime against press freedom" by the Interior Ministry and the attorney general...

...This just doesn't happen in society at large...

...This in turn has led to an emphasis on advanced study and merit as a key PERU: THE MASTER IS DEAD to promotion, with Peru having, for example, sent more military personnel to study in the United States than any other hemispheric republic save Brazil, which has an army roughly three times its size...

...15 Letter from John G. Meiggs to E. P. Fabri, Lima, March 13, 1870, quoted in Watt Stewart, Henry Meiggs, Yankee Pizarro (Duke University Press, 1946...

...One of the curious things about the "institutional" military coup of 1968 that created the "Revolutionary government" is that it was plotted and executed by a small elite of army Intelligence and Ranger officers who had played key roles in suppression of the 1965-66 guerrilla uprising...

...To suppose that only the military can solve our problems is to condemn all civilians eternally to the status of children, and to argue that in practice democracy is worthless...

...He was clean but withdrawn, friendly but intimate with nobody, with a large collection of sports clippings and a great will to survive...

...Britain's financing of the LatinAmerican Wars of Independence made her the principal creditor of virtually every republic, and she soon became the dominant trading power in the area for the next century...

...I was stupid not to reenlist in the army 20 years ago...

...It was this kind of repression that earned the Peruvian army its notoriety as "watchdog of the oligarchy...

...9 Padre Ricardo Antoncich, secretary of the Bishops' Commission, later explained: The hopes of the dispossessed have been awakened, but these isolated events seem to show that distrust and disillusion are beginning to undermine this hope...

...Last month at the agricultural fair in Cuzco I lost my hat while buying six prize bulls for the cooperative," Sixto told me...

...It is a strange face...

...The same mercantile system was reproduced in miniature even in remote haciendas like Lauramarca, whose manor house was burned down in the Tupac Amaru rebellion, where the hacienda monopolized trade with its serfs, a practice later recreated among the new Indian proletariat on the coastal plantations...

...also, Basadre, op cit., vol...

...After learning to speak Spanish as an army recruit 20 years ago—the immemorial way of obtaining recruits is for the army to surround an Indian village, herd all eligible youth into a truck and drive away—Sixto Flores three times has been elected personero (headman) of his community...

...sources" includes money borrowed abroad by parent companies to finance its overseas affiliates, the real proportion of local borrowing is even higher than official statistics would indicate...

...While it is still far too early for final judgments, the land reform so far seems to benefit its own em PERU: THE MASTER IS DEAD ployees more than the mass of peasants, and is threatened with strangulation by its own hands...

...He sweats and fidgets profusely during his televised speeches, making them a droning agony both for the speaker and his audience, despite the soaring prose prepared for him by an excellent team of civilian speechwriters...

...NORMAN GALL bureaucratic society...

...bumpy, dusty road, littered with dried scraps of sugar cane, that differed greatly from the modern internal road systems of the other haciendas...

...But I see it this way: In 15 years the king could die...

...5o One of the most revolutionary things about Cuajone is the contract between the "Revolutionary government" and the U.S.-owned Southern Peru Copper Corporation to develop the mine...

...NORMAN GALL Peasant Life In the Sierra T T HE HOUSE of Sixto Flores Yucra is at the top of a remote valley more than 13,000 feet high, very near the snow line, at the edge of the closed universe that for centuries was the Hacienda Lauramarca and on which Western culture still has made only a dim and fragmented impression...

...We don't plan to persecute Marxists, but we are men ofChristian philosophy...

...To keep his word in the face of pro 20 See "The Poor World's Cities," a survey, The Economist, December 6, 1969, p. 56...

...investment in Peru through 1956 and nearly twice all American investment since then...

...The hacienda system remains intact, with agrarian reform bureaucrats replacing the old hacendados and majordomos in running the haciendas, now called cooperatives...

...These are the same conditions required by the United States for operations of this nature...

...Since in Latin America there are few wars and always far too few troop commands for the number of officers seeking them, so superfluous diplomatic posts and staff jobs with fancy titles and no real purpose have to be invented, along with early retirement at full pay, to placate this important political constituency...

...From John K. Fairbank, The United States and China (Viking, 1962), p. 167...

...A high school classmate told me that young Velasco "had only one suit and one pair of shoes...

...One of the most striking psychological phenomena in this havoc was the surviving mestizo townspeople's intense fear of the surrounding Indian population...

...in this respect, thepresent Peruvian experience looks like a voluntarist policy of modernization...

...There are striking cultural parallels in the reluctance to create home industries and in the importation of skilled foreigners between Peru in the guano age, Venezuela in its present oil boom, and Spain in the 17th century as it was inundated with precious metals from America...

...The abolition of slavery had created a recurrent and critical labor shortage that led finally to the creation of a new native proletariat on these coastal plantations...

...It has welcomed the support of the weak Moscow-line Communists, but has met a mixed reaction among the ten or so other Marxist groups in Peru, which count for little anyway...

...Since these "agroindustrial complexes" had been specifically exempted from expropriation, after skillful political maneuvering by the sugar interests, under previous agrarian reform legislation, the immediate seizure of the big sugar estates by the military regime showed that the "Revolutionary government really meant business...

...Because they were unable to compete with the superior force and material technique of the foreigners, the old landlord-merchant class was transformed, in significant degree, into a class of brokers, money lenders, and speculators, with interests divided between town and country and directly tied to foreign interests...

...Ostensibly heading the delegation was General Artola himself...

...The mill was reached by a 20 See OIGA (Lima: no...

...24 See Richard M. Morse, "Recent Research on Urbanization in Latin America," in Latin American Research Review, Fall 1965, p. 56...

...51 A consortium controlled by American Smelting and Refining Co., also including Cerro Corp., Phelps Dodge, and Newmont Mining...

...They go in jeeps, and they don't go deep into the cane...

...5, Lima, 1970...

...copper companies in Chile, when he said last February in his "State of the World" message: The 1970 election of a Socialist President [in Chile] may have profound implications not only for its people but for the InterAmerican system as well...

...The people did not know what to do until a rabbi spoke up, asking the people to leave things in his hands...

...It threatens to overlay and stunt the healthy elements of expansion...

...The attempt to fence off a separate pasture for the cooperative's new breeding cattle, like the enclosure movements of the past, has awakened old conflicts and temptations...

...A A CCORDING TO AN OLD PROVERB of the Peruvian sierra, "the Indian is the kind of beast that most resembles Man...

...Quoted inBolesalo Lewin, La Rebelidn de Tz+pac Amaru (Buenos Aires, 1957) pp...

...The new administrators of Cayalti didn't believe we would strike, but the whole place was shut down...

...36 The continuing dialogue between the military and leftist intellectuals gained momentum after Velasco's speech proclaiming the new agrarian reform...

...The small mestizo electorate is so intimately involved with the bureaucracy that roughly one of every three voters is a public employee and nearly all the rest have close relatives working for the government...

...They'll kill you...

...When the Indians go to town to apply for a birth certificate so they can register their children for school, the municipal secretary of Ocongate requires them to bring "gifts" of sheep and cheese and beer, besides paying a high fee, before he will issue the birth certificate...

...Since the figure given for "U.S...

...President Belaunde, who was elected on a promise of land reform, traveled with his entire cabinet to the mountain town of Junin and, with great ceremony, signed a pact with Indian community leaders that promised them new lands under a sweeping agrarian reform if they would stop the invasions...

...In the same year, the value of United States overseas production —that is, of goods and services made in U.S.-owned factories or establishments "The important thing about the present `Revolutionary government' is that it attempts innovative solutions to the old problems of foreign domination and economic inequality...

...Lopez refused, preferring to keep his project out of the political arena...

...13 Jonathan Levin's essay on "Peru in the Guano Age" in his The Export Economies (Harvard University Press, 1960) describes these shifts in detail...

...Within the hacienda we have set aside 25 acres to build a new town...

...Consumers' cooperatives are plagued by bad purchases and the difficulty of finding honest, competent employees...

...Shortly thereafter, Indians from five communities descended upon the Hacienda San Antonio, which was owned by relatives of the subprefeet of Carhuaz...

...When the 1969 land reform law was decreed, one of the immediate consequences was the bankruptcy of an important ally and business associate of the Prados, the House of Aspillaga, one of the traditional families of the Peruvian oligarchy whose mansion was a great aristocratic center in Lima...

...The legal theory behind these obligations was payment in goods and services for the right to live on the master's land, stolen from the Indians over the past four centuries...

...It was the rare comprador who was not also an absentee landlord...

...Such investment plays a constructive role in development, for no government or public agency has the vast resources required for even basic development goals...

...31 As a result of the peasant uprisings, Peru's first agrarian reform law was specifically decreed in 1963 by an interim military regime in order to expropriate land in the La Convencion Valley...

...d) we performed the farm labor of the hacienda and pastured the master's animals, paying double the value of any animal that should die by sickness or accident...

...Near Cuzco, meanwhile, a group of Indian comuneros led by a few Trotskyites attacked the Hacienda Ninabamba...

...This is even more dramatic in the earthquake zone where practically all means of production have been destroyed...

...When international pressures forced an end to the coolie trade, recruiters from the coastal haciendas traveled among the Indian communities of the northern sierra, hiring Indians for their plantations with a small advance payment that trapped them into a permanent form of debt-servitude, and often paying local government officials a commission for each Indian recruited...

...The Government was stupefied when it learned of what had taken place, and gave the squatters three days to remove themselves...

...Part of this, undoubtedly, is due to the sharp competition among the 3,500 officers to fill the few top positions (160 colonelcies and 39 generalships) available to those rising from the junior ranks...

...Around this time, members of a tiny Marxist party involved in the 1965-66 guerrilla uprising visited the Palace to talk with a group of colonels to offer their support...

...Absolutely not...

...It is a striking and irrefutable fact that, despite these difficulties, the agrarian reform has generated remarkably little disorder or economic dislocation in nearly two years of accelerated land expropriations and the establishment of a new form of economic organization...

...When the people of Ocongate shot him, some of us carried the cura over the mountains on a sheepskin litter for two days and two nights to Cuzco to try to save his life...

...The multinational corporations are to the political economy of Latin America today what the "trusts" were to that of the United States at the beginning of this century—with the key difference that at least in the U.S...

...Background: Native Compradors and Foreign Entrepreneurs T T O FULLY APPRECIATE the audacity of the reforms being undertaken by Peru's military rulers, no matter how flawed they may appear in their execution, one must have a much clearer idea of the peculiar concentrations of political and economic power that made Peru for most of its republican history the Land of the Interlocking Directorate...

...7 Like Spain, Peru became a mercantile and 7 Both Cuzco and La Paz were besieged by Indianarmies, and manor houses were burned to the ground in the great rebellion that struck suchterror among the Spaniards as can only be measured by the horror of Ttipac Amaru's execution...

...If this possibility is considered remote by some, they should bear in mind the view recently conveyed to me by one of Peru's leading generals: The Nixon administration has played its cards very intelligently in trying to diminish tensions over the nationalization of IPC...

...PERU: THE MASTER IS DEAD transformation, from straw to adobe to brick construction, financed by the savings of workers earning less than three dollars daily...

...felicity...

...After this speech ended, six peasants announced that they refused to receive their land titles, and they were immediately arrested...

...At this point the military made its move...

...Each of the expropriated haciendas had such an army overseer, reporting directly to the chief of army intelligence in Lima, who also serves as chairman of the National Agrarian Reform Council...

...1956-62), the Prados' family bank, the Banco Popular, obtained a concession from the other banks belonging to the Caja to become the government's principal revenue-collecting agent, and remained so until the Caja was nationalized in 1963...

...The colonial bureaucracy was soon swollen with mestizos, mulattoes, and freed Negroes exacting more and more tribute from the Indians, who were also forced to buy a wide variety of luxury goods imported from Spain...

...Shortly before he was captured and marched in chains to his execution before a grandstand full of Crown dignitaries in the Plaza de Armas of Cuzco, the rebel Indian chieftain Jose Gabriel Tupac Amaru (174181), today the leading symbol of Peru's "Revolutionary government," wrote a letter to a high official to explain the great rebellion...

...5) devotes 15 percent of annual profits to the gradual acquisition of half the company's stock by the employees joined together in the Indus 38 Francois Bourricaud analyzes the problem thisway: "In the first place, the Junta has committeditself to a process of accelerated change that themilitary itself wants to control...

...In other words, agrarian reform succeeds only after the campesino takes matters into his own hands, and thus conquers his own feudal state of mind...

...9), 1958...

...Velasco's father was a poor sanitary inspector in a suburb of Piura, but even this miserable job was subject to political pressures and he was fired after one of the many changes of government in the early 1930s...

...The copper companies could deal a severe blow to the military regime by throwing the Cuajone concession back in the government's lap...

...The insatiable appetite of the huge mill for more and more cane, plus the powerful financial backing of the Gildermeisters that enabled them to benefit from the boom-andbust cycles of the sugar industry when smaller enterprises failed, turned Casa Grande into the center of an efficient and constantly expanding economic machine...

...At the ceremony in Quelluno a progovernment peasant leader, who had moved into the manor house of the hacienda after it was expropriated and set himself up as a coffeebuyer there, made an impassioned speech in Quechua, urging his audience to "denounce the counterrevolutionary enemies of the agrarian reform...

...The proliferation of Peruvian universities over the past decade has glutted the job market with ill-trained lawyers and agronomists...

...Among all these measures, however, the "Revolutionary government" has staked the greatest part of its prestige and effort in executing the most radical land reform program of the past decade in Latin America...

...The compradors of foreign firms in the treaty ports soon became merchants in their own right...

...Because they don t have real powers to govern it...

...One of the generals responsible for passage of the Industrial Law told me recently that in decreeing this statute we knew we were taking a great risk...

...This enormous investment means 200-ton trucks and giant steamshovels able to remove the 200 million tons of earth that cover the ore deposit, $50 million to build railways and tunnels—including one tunnel 10 miles long —leading from the mine to a new concentrating plant as well as $28 million for two new towns...

...Recent history has shown that agrarian reform is one of the hardest and most complex tasks any society can undertake...

...Thus the biggest companies are reorienting their investment programs toward "secure" geographic regions—plus great new copper discoveries in the U.S...

...exported $43 billion of goods and services to various parts of the world...

...Take the case of General Motors del Peru...

...A few days after the coup, army troops surrounded the vacant building of Congress in downtown Lima and removed a large quantity of documents, including a list of high-ranking officers implicated in the contraband scandals that had shaken the Belaunde regime...

...The navy minister and the PIP director were forced to resign, but the naval intelligence chief survived to head a "moralization" purge of the Finance Ministry and the Central Bank that deprived Peru of some of its best economists...

...The fate of the Industrial Community is now in the hands of the people: the workers, union leaders, factory managers and owners...

...Also see Patch's La Parada, Lima's Market: A study of Class and Assimilation, American Universities Field Staff, West Coast South America Series, vol...

...71-72...

...With the cooperative there will be modern educational techniques, even a school that goes to the fifth grade...

...The Argentines never made a profit on the hacienda," the last manager of Lauramarca told me...

...Peru's finance minister told an audience of American businessmen in March that Peru will need $700 million in foreign investment by 1975...

...14 For a detailed account of these financial operations, see Jorge Basadre, Historia de la Republica del Peru: 1822-1933 (Lima, 1969), 6th ed., vol...

...Wealthy, Jesuit-educated, permitted by the Spaniards to ride a horse and to collect "The traditional private bank was at the heart of a group or clan's business operations...

...h) beyond these exactions and robberies there was the physical punishment for infractions of these rules, such as being hanged by our fingers from a rafter of the master's house and to be whipped...

...La Parada is also where barriada land invasions of the desert hills surrounding Lima are organized by migrants trying to escape from the teeming, reeking callejdn slums of the center city...

...It comes essentially from two related sources: Christian Democracy and the Spanish fascists...

...a law that will end for all time an unjust social order that has maintained in poverty and iniquity those who have always had to till someone else's land, a social orderthat has always denied this land to millions of campesinos...

...Peter Klaren astutely wrote of"the growing inclination of Haya (as a studentleader in 1921) to place political convenience andpersonal aggrandizement above ideologcial conviction...

...Many years ago they spent a lot of money on new machinery, and it turned out to be the wrong kind of equipment...

...The son of a cabinet minister in Odria's military dictatorship, Artola announced at his press conference a new "moralization" campaign to purify official life, and denounced the "golden bureaucracy" in the dissolved Congress that included flagrant payroll padding and globe-trotting at government expense...

...New investment has dried up almost completely over the past two years despite assurance from the military that there is an important role for private enterprise in Peru's "New Industrial Society...

...At the same time, the 1964 law aggravated Peru's mini f undio problem by promiscuously granting provisional titles to hacienda serfs for the marginal lands they had occupied for centuries, without either expanding these tiny subsistence plots into more productive units or providing financial or technical support to improve them...

...abroad—came to $110 billion...

...In pauperized countries like Peru, where the immense majority of people cannot save, to reject this point of view and to maintain that savings and not labor is the generator of wealth means indefinitely sustaining the poverty and backwardness of the great marginal social sectors and, therefore, to condemn the country as a whole to eternal underdevelopment...

...The cooperative will buy all your products, and you will have trucks of your own...

...The "empire" is nourished more by speculative than monopolistic profits...

...54 OIGA (no...

...The chapel reeked of piss, and its cherished oil paintings—done by wandering artists centuries ago—were so badly damaged by the rains penetrating the chapel's tile roof, and so dim and primitive in their religious conception, that they appeared to have been made in the first strokes of a blighted Creation...

...The agrarian reform, however, brought a number of important symbolic changes...

...The departmental prefect ordered police reinforcements sent from Huaraz to "impose order in the zone," resulting in 5 Indians dead, 20 wounded, and many more arrested on charges of "cattle-stealing, property damage, land invasion, violation of individual property...

...T T HE HACIENDA LAURAMARCA—the largest estate in the Department of Cuzco, ancient seat of the Inca Empire—is a gray-green feudal domain stretching over 200,000 acres of rolling, windy puna of grass and stubble and glacial stone in the highlands of southern Peru, occupied by immense herds of sheep, llamas, and alpacas, and roughly 5,000 Indian serfs...

...Perhaps this is unavoidable under the circumstances, but it creates great problems...

...The general who directed these intelligence operations for the next four years told me recently: "The army was getting tired of being called in to put down the revolts of starving peasants...

...It is clearly for each country to decide its conditions for foreign investment, just as it is for each investor to decide what conditions provide adequate security and incentives...

...The master is dead, yet no one knows what will come in his place...

...A A T THIS STAGE, one cannot make conclusive judgments about this process...

...ss "Los Planes del `CAEM' Comienzan a Dar Frutos," in OIGA (Lima: no...

...The rising tensions between Indians and mestizos in the area was reflected in an editorial in El Diario de Huaraz, the newspaper of the departmental capital, entitled "Campesino Go Home," accusing the Indians of "causing a grave and permanent problem with the artificial presence of people [in Huaraz] who are not of the city but of the country...

...Firms, 1967-68," in Survey of Current Business, November 1970, p. 14...

...Peru, Chile, Zambia, and the Congo together produce 72 percent of the world's export copper, a demand nearly doubled between 1960 and 1967 under the artificial stimulus of the Vietnam war...

...He asked me to give his greetings to the workers, which moved me very much...

...The hacendado was a lean, dour, imperious priest, Padre Hilario Antonio Saldivar, known for his black cassock and flowing hair and for assembling his serfs each Sunday at dawn in the chapel of the casa grande to hear him intone the Latin mass, for which they paid him a fee in sheep...

...NORMAN GALL which has drifted steadily to the Right over the past three decades, yet remains Peru's strongest political party.28 The leadership of both APRA and the Peruvian military officer corps come from the provincial mestizo middle class, yet an alliance between the two has always been blocked by the blood feud resulting from a 1932 APRA uprising in Trujillo in which 11 army officers were taken hostage and killed, and later hundreds of APRA followers were taken to the pre-Incaic ruins of Chan-chan in the desert outside Trujillo and shot by army firing squads...

...It is true that army officers were forbidden to read Marx and Mao Tse-tung before, and now they are not...

...They taught me a little Spanish and to read a little, although I never went to school, and by now I could have become a sergeant or a prison guard...

...There are no union members on the Administrative Council...

...Since executing their bloodless coup d'etat at 5 A.M...

...In 1966, the U.S...

...One of the stories told by the Indians concerns the long ago murder of a hacendado, or master, of the Hacienda Lauramarca during a dispute with the neighboring town of Ocongate over the hacienda's traditional monopoly of the trade with its serfs...

...The Cuajone contract, if fulfilled, will be a major breakthrough in the relations between nations producing and consuming raw materials...

...As far as I could determine, none of the other branches of the armed forces were directly involved, although there had been coup rumors for several weeks...

...According to John Turner of the HarvardM.I.T...

...In the years that followed, the political mobilization of the provincial mestizos would increasingly curtail the power of the coastal oligarchy, yet the feud between APRA and the army would leave the traditional ruling class plenty of room for maneuver...

...From David Chaplin, The Peruvian Industrial Labor Force (Princeton University Press, 1967), p. 100...

...T T HE GREAT QUESTION raised—and still to he answered—by the wave of "structural reforms" in Peru today is whether a country so corrupted and weakened by centuries of economic dependence on serfdom and slavery can become a just society...

...186-87...

...Then, there will be some expenses of feeding him and for my full-time work, etc...

...When I interviewed them 20 minutes later in the local police station, one of them said: We stood up at the meeting to ask why we were getting just 10 or 15 acres on a steep hillside while some of our neighbors had between 200 and 500 acres each...

...N, pp...

...For this reason, it was the first hacienda in the Andes expropriated in NORMAN GALL the sweeping agrarian reform now being carried out by Peru's "Revolutionary government" of generals and colonels...

...The new manager was pulled from his horse by some Indian women whom he found herding their sheep through an opening they had cut in the barbed-wire fence...

...The potatoes are smaller this year because of the hail and the frost," Sixto said...

...While countries like Peru must fight the erosion of their export earnings by this dollar drain, they badly need the organizational and technical skills of the great foreign cor 48 Ibid., pp...

...But, Your Majesty, if it takes a human being four or five years to learn to speak correctly, it should take your illustrious burro roughtly 15 years...

...on October 3, 1968, received me in his office in the Palace, where he was serving in the brain trust of 11 Intelligence colonels that guides the reform movement in Peru today...

...In a short time the prices fixed by the "empire" are abnormally high, not only in comparison with foreign prices but also with internal competition, and it makes the wrong investments...

...Savings-and-loan cooperatives in Peru have been in trouble because of bad loans...

...One of the land reform officials replied: I understand that your words are purely subjective, due to the expropriation of your hacienda...

...We are accused abroad of being Communists because we are not operating in a constitutional democratic system and want profound changes...

...On my own journeys through Latin America over the past decade, I have seen thousands of peasants in several republics for whom the new land reform laws have done little but give them an unnegotiable title to the miserable patch of hilly, acidic, eroded soil that the landlord once assigned in exchange for 120 days of unpaid work on the hacienda...

...The agrarian reform has come in his place...

...I realized how deep the injustices were and how explosive they could be if they continued...

...Each day some 200 buses and from 1,000 to 1,500 trucks arrive from the Andes to La Parada, Lima's central marketplace and terminal, which is both the heart of the big city's underworld and the main sieve for the adaptation of new peasant migrants to city life...

...They sat on the ground in phalanxes of passive and muted suspicion, listening almost inertly to the speeches in Quechua of the mestizo "promoters" ranged before them behind a row of schooldesks and a small lectern from which they took turns presiding...

...Casa Grande today is an ocean of tall, golden-green stalks of sugar cane, with small clearings for sleepy towns that once were Indian communities, long ago de PERU: THE MASTER IS DEAD prived of their lands, with such names as Ascope, Santiago de Cao, and Paijan, centers of the great Chimed culture of pre-Inca times...

...ExportImport Bank, this could lead Peru into a confrontation with the Nixon administration much more dramatic and significant than that of expelling IPC from Peru...

...The fire glares when stirred, and throws a long shadow from the Incaic hand-plow, the chaquitaccla, hung upon the wall...

...In the late 1930s the Saldivars brought the archbishop of Lima, Pedro Pascual Farfan, on a long, dusty trip to the 4 From "Las Exacciones del Gamonalismo i la Impunidad de sus Crimenes," in El Peru, August1931...

...Also, of the hacienda's 200,000 acres, all but one-fifth have been in the Indians' possession for many years...

...This growth has strained government budgets with enormous demands for schools, streets, hospitals, and electricity, and has hideously inflated the overhead costs of economic de 23 See Turner, Uncontrolled Urban Settlement, paper given at United Nations Seminar on Urbanization, University of Pittsburgh, 1966...

...The shadow on his face stresses Tupac Amaru's Indian facial structure, yet his upper-class European dress makes him resemble one of the old mestizo landlords of the sierra...

...we have learned and explored it throughout our careers, from frontier to frontier...

...NORMAN GALL ayllu, or Indian community, espoused by many Peruvian writers in this century...

...13, P. 227...

...BERNARD MALAMUD, The Fixer...

...To the tensions created by the swallowingup of hundreds of small haciendas by the great estates and the sudden creation of a large rural proletariat, another development at Casa Grande was added that disturbed the life of the region even more...

...The mutual distrust of the campesinos, plus the desire of many to divide the land among themselves, have impeded the organization of a meaningful cooperative...

...This was the issue of Caretas that led to the government court action against its editor for "obscenity" and "violation of press freedom...

...The great problem of these countries, as always, is to find or train enough competent managers, bureaucrats, negotiators, and technicians to fully develop and implement these policies, and to obtain enough capital and technology to bring these economic activities under their own control...

...The stink of that corruption never escapes the soul, and it is the stink of future evil...

...slaves drafted into the army...

...The guano boom left the Peruvian government in bankruptcy, but enriched many merchants and politicians in Lima, who plowed their profits into the sugar plantations and the nascent capitalism that formed the economic base of the Peruvian oligarchy...

...5 no...

...The land belonged to the Government which used it infrequently for military exercises...

...Between the censuses of 1940 and 1961, 17 Peruvian cities doubled their populations, three of them growing more than tenfold...

...The bubble lasted less than a decade, and was fabricated entirely of bonds...

...The great appeal of the Caja for the government was that it made the Lima banks a sure source of more loans and intermediaries for foreign credit...

...Under the Incas all taxes were paid in labor, and money was unknown...

...61 It was signed in December 1969, after a critical phase of what can only be called a continuing poker game for tremendous stakes between U.S...

...On the other hand, the economic dislocations proceeding from the changes decreed by the "Revolutionary government" have been cushioned by a boom in export commodities that in 1970 brought Peru's foreign exchange earnings above the $1 billion mark for the first time...

...Swirling crowds of peddlers and porters, fresh from the sierra, hustle for a dollar a day—far more than the going wage for unskilled labor in most provincial towns—wandering through the great market in rubber-tire sandals...

...indeed, not to employ them would threaten the government with the opposition of a jobless white-collar proletariat in the towns of the sierra...

...This excellent book has just appeared in English, entitled Power and Society in Contemporary Peru(Praeger, 1970...

...It is a simple, black-and-white head with a high, broad-brimmed hat and a starched collar reminiscent of the dress of the Puritans of 17th-century New England...

...the recent measures in Persia have been successful, and are indeed unique, because the reform was started, and in the initial stage carried out, by a leader who believes in the peasants' power to manage their own affairs, and the affairs of their country...

...In most cases where the military seizes power, it truncates a nation's normal institutional growth and makes the army the leading political party, a situation that does not generate popular support except in the rarest cases...

...One classmate said Velasco entered the army as a private and saved enough from his meager salary—plus tips from running errands and shining shoes —to enter Chorillos the following year...

...They are so used to being cheated by the mistis, the mestizo merchants, and government officials they deal with, that they don't know what to believe...

...Popular opinion soon forced the Government to capitulate...

...Moreover, the administrative councils and general assemblies of the cooperatives are packed with white-collar and technical employees, and government representatives will control the finances of the new cooperatives until the expropriation bonds are paid off over a 20year period...

...The government's internal debt largely consisted of old claims for property damages during the Wars of Independence...

...Until drastic measures were taken by the "Revolutionary government," the Peruvian automobile industry consisted of 13 foreign-owned assembly plants producing 17,000 vehicles a year at roughly •twice the U.S...

...We will not, however, allow this process of change to be controlled by Marxists in view of the experience of other socialist societies in depriving personal liberty...

...An initial draft of the law, that was pretty bad, was published by the Ministry of Industries for public discussion...

...None of these implications have been lost on Peru's business executives...

...The traditional private bank was at the heart of a group or clan's business operations, and its primary function was to finance expansion 19 Bourricaud, Poder y Sociedad en el Peru Contemporaneo (Buenos Aires, 1967), p. 38...

...45 According to a 1963 Business Week survey of"Multinational Companies," "it's common for acorporation to get 20 percent of its total earnings NORMAN GALL Even so, the corporate contribution to the host economy consists largely of organizational skills and technology, since the multinationals more often than not borrow from local banks to finance the establishment of new plants' 46 and purchase machinery from the parent company at inflated prices...

...After three weeks of visiting and persuading the Indians to form a cooperative, the "promotors" left the Hacienda Lauramarca to form cooperatives elsewhere...

...What of the Future...

...but meanwhile that capital grows, providing jobs, improving productivity, and often contributing to export earnings.44 As in the rest of the world, the most dramatic expension in Peru of the multinational corporations during the 1960s has been in the manufacturing industries...

...The 1964 law broke new ground by providing for payment for expropriated lands in bonds instead of cash, but otherwise tried to bestride, blunderingly, the great peasant clamor for land and the demands for protection of powerful landlord interests...

...One of his teachers at the Colegio San Miguel in Piura, Hildebrando Castro Pozo, later became famous as a leader of the indigenista movement in Peruvian politics and letters that romanticized Indian communal traditions and agitated for social reform...

...Haya does not appear to have been anespecially original thinker but, instead, has talentto join, adapt and popularize the ideas of others...

...When I came home from Cuzco without my hat, my wife and mother-in-law said I had been drunk and sleeping with whores...

...This widespread passivity may be just another instance of the limited political participation that always has been an ingrained feature of Peruvian society...

...While these changes may be subject to retraction or modification later on, the social pressures that impelled them have influenced many governments and seem to be a permanent part of the Peruvian scene...

...He has never fulfilledhis presidential ambitions, but he has wrecked manygovernments, and could wreck this one as well...

...If southern Peru fails to get the money needed to finance Cuajone and the concession reverts to the state, it could find itself losing the Toquepala concession as well...

...Barring world catastrophe, Lima will have grown 1,000 percent or more in less than a modem man's lifetime and this will be typical of the majority of major cities in the urbanizing countries...

...corporations, as they are in the rest of Latin America...

...Moreover, they usually provide better social services for their workers, and certainly provide fancy career opportunities for a favored few of the elite...

...sugar quota, at double the world price, in an effort to wind down the crisis generated by Peru's seizure of the Standard Oil installations at Talara a few days after the "Revolutionary government" took power...

...Ac ' See Robert P. Case, "El entrenamiento de los militares latinoamericanos en los Estados Unidos," in Aportes (Paris: no...

...Among these dense masses of sugar cane runs an excellent system of asphalt roads, better than any public highway in Peru, built for large trailer trucks bringing cane from the fields to the towering mill that belches smoke day and night, forming the center of this little world, built right next to the master's house that is shaded by huge trees a century old...

...We can expect more social conflict as the agrarian reform is applied...

...When the military regime took over the Banco Popular last June, there were so many bad loans to the Prados' own businesses, many of which were themselves near bankruptcy, that the government found itself in a position to nationalize two television channels, a large newspaper, two textile mills, and Peru's largest cement factory, besides the Banco Popular's branches in neighboring Bolivia, which form that country's largest private bank...

...It was modeled along the colonial principle that all traders and officials must be European Spaniards, and no overseas trade was permitted except with Spain...

...See Watt Stewart, Chinese Bondage in Peru (Duke University Press, 1951), p. 98...

...The navy and air force had no choice but to fall in line when confronted with the fait accompli...

...When Negro slavery was abolished in 1854, the coastal hacendados frenetically imported indentured Chinese coolies, under conditions resembling the outlawed slave trade, who were bossed in the fields and hunted as fugitives by freed black overseers...

...there was a squeaky orchestra of home-made flutes, harps, and violins that accompanied the mass recited by the cura Saldivar in a language incomprehensible to the Indians...

...However, the director said that Lima had assigned him too many cooperatives to organize, and that he needed all the "promoters" he could get to swarm over the haciendas of the region so he could report to Lima that his quota had been fulfilled...

...According to an eye-witness, "the performanceclosed with the rebel Jose Gabriel who (after seeinghis whole family put to death) was taken to thecenter of the plaza...

...However, even this was not enough to assure the prosperity of Peru's largest banking chain...

...Mancha Indigena L PATR6N HA MUERTO," Sixto Flores told me as we traveled across the puna on two skinny horses after the Hacienda Lauramarca was expropriated last year...

...As a whole, I have no great faith in any material betterment of Peru's economic condition in the near future...

...475, 497...

...so the government droppings sometimes shriveled the skin about the eyes of the workers and occasionally caused blindness...

...They are, in addition, a main channel through which technology, developed in the West, can filter into backward nations...

...Under past governments' importsubstitution policies, scores of other factories produce foreign-patented consumer goods under expensive royalty arrangements...

...The Caretas article had criticized the army pay raises as being "inelegant, unjust, and politically negative in view of the recent extension of the salary freeze of other public employees for economy reasons...

...JOSE MARIA ARGUEDAS, Los Rios Profundos...

...According to an American writer, 1969 was a frightening year for the great international copper companies...

...The paper also attacked the mestizos who "have quickly left their homes to rent them to banking and state entities at prohibitive prices and have gone to live in tents...

...Its political rallies have had the ring of a packaged spectacle...

...A handsome architect with a bold program of social reform, Belaunde was supported by the military in the 1963 election after the army had stopped the counting of ballots and seized power the year before, when it appeared that Haya de la Torre and APRA would win the 1962 election by a narrow margin...

...The profits are very high, often averaging 20 percent annually, allowing a corporation to recover its original investment in less than five years...

...There is a priand intricate confusion of stone fences, defining each of the Indians' tiny subsistence alongside the small river dividing the puna as the steppe reaches gradually toward white slopes of Mount Ausanccate...

...brimmed cowboy hats, wrapped in the kind of neo-Inca wool ponchos with animal designs sold to tourists in Cuzco, the "archeological capital of America...

...12 This enormous debt was made possible by Peru's exports of guano, the nitrogen-rich bird droppings dug from the offshore islands in the cold Humboldt current for its remarkable fertilizing properties, which by the mid1850s was Britain's biggest single import from Latin America, bringing Peru its greatest wealth since discovery of the silver mines in the 16th century...

...67-44032, p. 43...

...Peru's "Revolutionary government" follows the pattern of many military dictatorships of incorporating into their entourage many mini-parties of the Right or Left while denying any role to the larger parties dislodged by the military coup...

...on October 3, 1968, these officers have decreed new laws placing the main sectors of the Peruvian economy—the banks, the press, the mining, petroleum, fishing, and sugar industries— under state ownership or control...

...The basic industries will be in state hands, and thus principal exports will be marketed abroad by government corporations...

...Only the state which succeeds in making the poor appreciate the spiritual treasures of poverty can solve its social problems...

...With nationalization in Zambia and an agreement for nationalization of Anaconda in Chile, plus the insecurity about the direction of change in Peru, most companies had to be most cautious in planning investments for the 1970's...

...As it is, the municipal secretary is often drunk, and swears violently at the Indians, and more often than not gets the child's name wrong, so the boy or girl must carry the wrong name with him on identity papers and official records for the rest of his life...

...If you will sign this contract, Your Majesty...

...forms, without first putting real power in the people's hands through the agrarian reform and the Industrial Community, would just bring us back to the political farces of the past without any real improvement in Peruvian society...

...We have been deceived many times...

...NORMAN GALL the entire $350 million investment by June 1971, the concession will revert to the state...

...Do you think we are doing the right thing...

...The histrionic architect quickly lost the will to fight...

...17 J. K. Galbraith, The Great Crash (Houghton Muffin, 1955), pp...

...i.e., incapacity to produce competent heirs...

...Now the workers have begun to steal automobile and tractor parts from the workshops and plumbing fixtures from the mill...

...3), December 1968, p. 563...

...121-24...

...Light and warmth are precious commodities...

...19 During the second administration of President Manuel Prado (1939-45...

...Sixto inherited his father's house high in the valley, where there was enough space to pasture his small flock in relative freedom from the majordomos of the hacienda...

...47 Both General Motors and Ford, the local industry's two largest producers, closed their Peru operations as the military regime reduced the number of auto assembly plants from 13 to 6, ordered the remaining companies to produce 70 percent of their components in Peru and, under the new Industrial Law, gave all foreign corporations from foreign operations...

...Near Piura a Standard Oil subsidiary, the International Petroleum Co...

...The image of Tupac Amaru is everywhere in Peru today...

...IV The Brave Bulls T T HE FACE OF General Juan Velasco Alvarado is the face of thousands of men who sit behind small, linoleum-covered desks at army barracks throughout Latin America...

...In 1962, after returning to Peru, I was sent to La Convencion Valleynear Cuzco when the peasants rebelled under Hugo Blanco...

...Sixto Flores Yucra, 41, is a veteran of the Peruvian army and, thus, one of the few Indians on the hacienda who can speak Spanish, though he can decipher a newspaper or a legal document only haltingly and painfully...

...he thinks they are too cheap to sell in the cities, and too dear to be eaten by his serfs...

...We understand very well that many believed in October 1968 that this was just another military coup...

...Another young colonel PERU: THE MASTER IS DEAD was sent to the central sierra to talk with the Indian communities that had invaded the great sheep ranches to obtain land...

...I spent five weeks writing portions PERU: THE MASTER IS DEAD of this article in the town of Quillabamba at the edge of the Amazon basin in southern Peru, which had been the scene of the La Convencion Valley peasant uprisings led by Hugo Blanco in the early 1960s and the short-lived 1965 guerrilla uprising led by Luis de la Puente Uceda...

...The main differences are the streamlining of expropriation procedures, elimination of escape clauses, creation of a minimum family-farm unit (7.5 acres), and granting export priorities to cooperatives formed by agrarian reform beneficiaries...

...Within two or three years, the shacks undergo a remarkable 22 The great American anthropologist Richard Patch wrote a pioneer report in 1955 on "The City of God," one of the earliest and largest of the Lima land invasions, organized by a lame worker named Alejandro Lopez: "Don Alejandro worked mainly with four labor unions: of taxi drivers, domestic servants, hotel workers and brick workers...

...tions of the new Andean Common Market, as well as the present jockeying over compensation for the U.S...

...53 So the copper companies in Peru may simply be stalling for time, while political conditions turn to their advantage and new sources of supply are developed...

...The cooperative is still in diapers, but our sindicato has a long history, and it was the only thing we had to defend ourselves for many years," Vazquez, a stocky, bronzefaced man, told me as we talked in the midst of a large group of workers in a corner of a barren union hall, furnished with only a few benches and a blasting TV set...

...45 44 Robert L. Heilbroner, "The Multinational Corporation and the Nation-State," New York Review of Books, February 11, 1971...

...Success in achieving greater sovereignty and distributive justice, however, will depend less on financing than on finding local substitutes for the two key instruments of the multinational corporations: organization and technology...

...When I strengthen my power in the cooperative I will send him to the Sepa (a penal colony in the jungle...

...According to a British consul in 1870, guards were posted at the cliffs of the guano islands to prevent coolies from killing themselves...

...The French sociologist Francois Bourricaud may have had in mind the Prado family, which twice exercised the presidency in the three decades preceding 1962 and belonged to the inner circles for the rest of the time, when he observed that these "empires" are much less centralized than they seem...

...If in Peru a true revolution develops, it does not matter that those who promoted it are a group of military leaders...

...In frightful succession they effected rape, beatings, and burnings of the Indians' wretched huts...

...A brilliant Peruvian general later told me: One of our greatest defects is the military habit of ordering and expecting to be blindly obeyed...

...We ask only that our citizens be treated fairly in accordance with international law...

...15 When the bubble burst, Meiggs was even authorized to issue his own paper money to pay off his workers, mostly Chileans and Chinese coolies...

...The orchestra produced its traditional music with a devout and incandescent mysticism, and the Indian harpist played, as always, with his eyes closed...

...They should join in defense of the anti-imperialist State...

...In this process millions of Indians have become cholos, identifying with populist political movements and generating powerful pressures for reform...

...Indian labor was so despised that many thousands of foreign workers were imported to build railroads even in the high altitudes that were the Indians' native habitat...

...The attempt at reconciliation failed...

...When the "Revolutionary government" nationalized the nearly-bankrupt Banco Popular last year to prevent a takeover by the local subsidiary of the Chase Manhattan Bank, it found something approaching a Mafia-style operation of systematically using depositors' money for loans to politicians and businesses and to the head of the clan's homosexual partners...

...We don't know whether we will have a new life or just a new master, the government, which has expropriated the hacienda to form the cooperative...

...Commerce Department statistics, is astounding...

...Hungry for more pastures because of heavy demographic pressures on their communal lands, thousands of Indian families, sounding comets and carrying red-and-white Peruvian flags, cut the wire fences of these great haciendas and descended upon their upland pastures to build precarious huts...

...The most notorious case was the expropriation of the tabloid Expreso, owned by Belaunde's ex-finance minister, which was turned into a workers' cooperative with a government-appointed manager...

...The parasitic extraction of wealth from the Indian is such a great tradition even today that, traveling the length of the Peruvian sierra as my wife and I did last year in our jeep, one invariably 5 Doreen Warriner, Land Reform in Principle and Practice (Oxford: Oxford University Press, 1969), p. 135...

...Commerce Department statis tics, local borrowing by manufacturing affiliates of U.S...

...With the cooperative social and economic differences will be removed...

...That an American company in Peru will swallow such tough terms to retain a mining concession marks a new era in economic relations...

...To these men of the land we can now say in the immortal and libertarian words of Tupac Amaru [leader of the great 18th-century Indian rebellions that swept across the highlands of Peru and Bolivia]: "Campesino, the master will no longer feed on yourpoverty...

...This is a product of the revolution...

...However, the government budget was so swollen by maintaining a large army, civilian bureaucracy and pension list, and by paying off a huge public debt that, even with its enormous guano revenues, the treasury was empty and railroad construction stopped...

...There is no doubt but that investments by large foreign corporations increase both the scale and quality of economic activity...

...So what counts is not who talks about agrarian reform, but who carries it out...

...In 1958 the Peruvian army began to strengthen its intelligence apparatus to deal with the wave of strikes and street disturbances that, in 1956, followed the end of an eight-year military dictatorship and the resumption thereafter of free trade union activity...

...As an epilogue, several Indians (named in the report) were separated from their families and deported to the jungle area of Ccosnipata, where they still remain...

...Some of the more concerned "promoters" had urged the regional agrarian reform director in Cuzco that two or three staff members stay at the NORMAN GALL hacienda for a year or so to help the cooperative through its initial period...

...It brought high-ranking officers from the navy and air force into cabinet and other high posts and, six days after the coup, seized IPC's Talara refinery, thus ending by fiat 50 years of angry litigation and recrimination—after the agrarian reform, the most popular measure taken by the "Revolutionary government...

...It was uncomfortable to walk with him because he kneeled down before all the churches and chapels and ostentatiously took off his hat to every priest he met...

...It took German engineers four years to install the new machinery after the Gildermeisters merged with a Bremen consortium that financed it, beginning operations just in time to cash in on the post-World War I boom in sugar prices...

...This explains why many public servants at all levels are insensitive to the changes of the Revolution...

...A young priest working in the valley, who is a specialist in cooperative education, told me: Cooperatives imposed from above cannot function because they do not educate...

...Two of the Lima dailies have been taken over outright, and the rest have been so cowed by a stringent new press law and close supervision by the Interior Ministry that they refrain from reporting stories that might embarrass the government, like the killings at Carhuaz or the strikes at the expropriated sugar haciendas...

...This caused both Belaunde's party and his Christian Democratic allies to split in half, forcing the greatly weakened government to reach an understanding with APRA that cleared the way for what would have been an easy victory for Haya de la Torre in the presidential elections set for 1969...

...NORMAN GALL The magnitude of this social epic is reflected in the recent educational statistics, which show that school enrollments doubled over the past decade and university attendance grew more than fourfold...

...The biggest difference, of course, is the will and authority of a military regime to carry out an ambitious expropriation program aimed at eliminating all old-style latifundios by 1975...

...It is in this critical field of negotiating better terms of trade with the "metropolitan powers" that Peru, along with the other principal commodityexporting nations of the Third World, is making some of its most dramatic moves...

...of APRA prepared the ground for the coup d'etat of October 1968...

...According to Robert Heilbroner, 71 of the top 126 [U.S.] industrial corporations averaged one-third of their employ 43 This data is analyzed in Shane J. Hunt, Distribution, Growth and Government Economic Behavior in Peru, Discussion Paper no...

...that you go back to your homes and allow us to have a decorous life...

...You cannot expect peasants already in possession of invaded lands they paid for with their blood also to pay for it with 20-year bonds...

...President Nixon could just as well have been alluding to Peru, or the severe restrictions imposed last December on foreign companies by the five na "The great trouble with military regimes, even reformist ones, is that they provide no long-term political solution...

...This, however, may prove a shallow judgment...

...23 In this way the urban population of Latin America has been growing at two or three times the rural growth rates, with the marginal populations in the squatter slums increasing at three to four times the general urban rate.24 With such cities as Lima leading the way, the worldwide rate of urbanization between 1950 and 1960 was twice that of the preceeding 50 years...

...PERU: THE MASTER IS DEAD trial Community...

...The cooperative is a union of people into a single force," Sixto told me, repeating what the government cooperative "promoters" had told him, as we went to talk with campesinos among the 16 Indian communities of the hacienda...

...In this way some 2,500 families lost their farms to the three great haciendas of the Chicama Valley, Casa Grande and Laredo, owned by the Gildermeisters, and Cartavio, owned by W. R. Grace & Co...

...the image is symmetrical, save for a shadow on the left side of the face, which gives him a harsh, haunted, distant look...

...The townspeople of Ocongate are mestizos and cholos (Indian converts to Hispanic culture), and their triumph over the traditional power of the hacienda is part of the great political and cultural mutations now changing Peru: the increasing political power of the mestizo majority in the towns and cities, and what sociologists call the "cholofication" of the Indians...

...In the cold and darkness of sagging adobe huts cradled among their sheep pens and potato patches, the Indians tell stories of bloodshed and remeval bellion that won a certain fame throughout Peru for the Hacienda Lauramarca as a symplots, bol of the struggle that led to the abolition of Indian serfdom and to the end of the hacithe enda system itself...

...The principal personages of Cuzco greeted him seriously...

...I came to Sixto's house in July, the season of sunny days and frigid nights and brilliant skies, the season when potatoes are harvested and chuno is made...

...The agrarian reform tells them the land and the animals are all theirs, but they are not sure this is true...

...The new and more radical land reform law of the "Revolutionary government" was drafted mainly by technicians who had worked with the 1964 law for five years, and retained many of its key provisions...

...3 All the deportees eventually died in the jungle, but the revolutionary strike of the Lauramarca serfs remained in effect...

...The military's fear that turning the sugar plantations into cooperatives might simply mean handing control of these huge enterprises over to the local APRA political machine has led the "Revolutionary government" to fashion an extraordinary series of regulations governing the day-to-day operations of the cooperatives, which makes them flimsy semantic fig leaves for state farms...

...On feast days the Indians filed into the chapel in glowing shawls and ponchos, winecolored and cunningly woven with designs copying the plumage of the Inca crown...

...Peru's railroadbuilding fever of a century ago is like Venezuela's highway-building of today...

...The multinationals pay higher wages, keep more honest books, pay more taxes, and provide more managerial know-how and training than do local industries...

...My visit to Cayalti came shortly after the entire hacienda had gone on strike in support of the workers' sindicato against the cooperative, despite the government's arguments that unions are no longer necessary because the haciendas now belong to the workers' cooperatives...

...and Peruvian interests...

...When I first visted the Hacienda Lauramarca, a few weeks after its expropriation, an old campesino named Mariano Mamani gave me a copy of a list of feudal obligations published in a Lima newspaper in 1931 when he and some other serfs had traveled to Lima to seek relief from the government...

...The patron was capable of showing up at the mill at crazy hours, at midnight or three in the morning, and would stand at the gate and personally beat up a worker if he found him stealing...

...In fact, we would have preferred that Nixon apply the Hickenlooper amendment [cutting off all aid funds] so we could use it as a reason to radicalize our revolutionary process...

...vian universities increased from 5 to 34...

...by 1875 Peru had borrowed more money in London than any of the other new nations...

...Yet, quite typically of the officer corps, only 5 of Velasco's 35 years in the army were spent in the provinces, and none of them in the sierra, Peru's most depressed and populous region...

...and British companies are moving their money into these "secure" areas...

...This may give added weight to a talk I had recently during a visit to Lima's Lurigancho prison with Hector Bejar, the lone surviving leader of the guerrilla insurrections of the mid-1960s...

...After Pizarro captured and killed the Inca monarch Atahualpa in 1533, the customary peasant obligations to till the lands of the state and the Sun were transferred to Spanish Crown appointees called ecomenderos who, besides utilizing unpaid Indian labor, deranged the traditional economy by demanding tribute in gold and in produce not locally grown...

...PERU: THE MASTER IS DEAD of the group's own political and economic activities...

...The many official efforts to settle the old issue of man-land relationships have in some cases crushed the power of the landlord and the merchant, but in most cases have done less at the cost of much bloodshed, economic dislocation, and official deception...

...retail price...

...Two Indians were killed while trying to stop the mob from breaking down the great door of the manor house...

...The majordomos would build fences by day and the Indians would tear them down by night and steal the pure-bred sheep that the Argentines had bought as breeding stock...

...Both this ideological aggiornamento of the Peruvian military and its hatred "The government has been trying to break the unions, most of them controlled by APRA...

...Based on simple extrapolation of growth trends from 1940 to the present, by 1990 three-quarters of the population of the entire city-4.5 million people—would be living in areas originally settled by squatters—in barriadas or exbarriadas...

...There were strikes and social conflict, and they just didn't bother to come around anymore...

...The Indians could not have done this, for they thought the cura Saldivar was something like a god," an old peasant told me in Quechua, the ancient Andean vernacular...

...In 1922 this strike, or "campaign of disobedience," began after the government of Dictator Augusto B. Leguia (1919-30) rejected the Indians' petition that their feudal obligations be abolished...

...Velasco's biography is revealing, in view of the transformations undergone by the Peruvian military in recent decades...

...cording to one of those present, a spokesman for the visitors said, "We Marxists support your struggle for Peru's national independence, even if it is nothing more than that, because we know it will carry you outside "The `Revolutionary government' has been able to muzzle and intimidate the Peruvian press quite thoroughly...

...A second invasion of Lauramarca, this time by the rural police, came shortly after the delegation of Indians returned from Lima...

...His rebellion and martyrdom now have a kind of religious significance, and the "Revolutionary government" has adopted an imagined likeness of him as its official symbol...

...the family works through the day intensely and with little talk...

...Nevertheless, there has been a nasty series of crises and conflicts that point to serious problems in the future...

...37 For all the overwhelming popular approval that accompanied the decreeing of the agrarian reform or the nationalization of IPC, the military regime has been increasingly aware that it is operating in a political void...

...The campesinos' bodies were wrapped in worn and dusty ponchos, crowned with floppy sheepskin hats, with wads of coca bulging in their jaws...

...The formation of the sindicato at Lauramarca was the beginning of a series of uprisings in the sierra of central and southern Peru in the 1950s and 1960s of some 300,000 peasants in haciendas and Indian communities that brought both military repression and a series of reform measures, each bolder than the last, leading to the destruction of the agrarian feudalism of the past...

...46 According to U.S...

...Southern Peru Copper was formed 50 See "Special Cuajone Supplement," Peruvian Times (Lima), January 29, 1971, which prints an English translation of the Cuajone contract...

...The Indians are very suspicious of paying dues to the cooperative...

...Whole towns were destroyed by the earthquake and then the avalanches of water and mud that descended into the Callejon when the crown of Mount Huascaran, the highest peak in the Peruvian Andes, collapsed and released the waters of an inland lake...

...It is an old story for the economy to be divided in state, cooperative, and private sectors," observed one of Peru's leading sociologists...

...Military life as an agency of social mobility is as old as armies themselves...

...When the terms of the contract were published, a revolution occurred in 1854 that ousted the government, freed the slaves, and abolished the hated contribucidn de indigenas, the Indian head tax that was the mainstay of the internal revenue system...

...The Belaunde regime was probably the most progressive to date in Peruvian history, and during its five years in office, both per capita income and school enrollments increased by 50 percent, agrarian reform was begun, Peru's wretched highway system underwent a huge expansion, and the oligarchic private banks were stripped of their tax-collecting functions and their control of the Central Bank...

...The challenge for governments and investors is to develop new approaches which satisfy the needs of both...

...To call elections without first carrying out our structural re 37 Caretas (Lima: no...

...that is, the peasant has been locked into subsistence agriculture with provision neither for expanded production nor for new land for his numerous sons...

...The place was in acute decline and disarray, in contrast with the other, highly efficient sugar haciendas taken by the agrarian reform...

...As Caretas observed in 1968, Some said recently when the October 3 coup occurred: "It had to happen...

...When the order came ending licencia sindical, I went to Lima and was granted an audience with President Velasco, who was very cordial but said he had nothing to do with cooperatives...

...The two industrial laws decreed in late 1970 are among the most audacious pieces of economic legislation in Latin-American history...

...After all, it is in the interests of everyone to work with greater discipline and efficiency to maximize profits for all...

...This led to the formation of Latin America's first "multi-class" political party, APRA (American Popular Revolutionary Alliance), the only mass movement in Peruvian history, 27 For an excellent account of the growth of Casa Grande and its historical consequences, see Peter Klaren's La Formacion de las Haciendas Azucareras y los Origenes del APRA, Instituto de Estudios Peruanos, Peru-Problema no...

...Like the leaders of the great majority of developing nations, Peru's rulers are torn between the conflicting needs of tighter organizational control and the cultivation of the people...

...39 (2) gives factories a series of statecontrolled tax and credit incentives for growth along planned lines...

...PERU: THE MASTER IS DEAD towns in Europe during the Middle Ages, and helped drag these feudal societies into the modern world...

...The new regime moved quickly to consolidate its military and popular support...

...Their legal status had led to the impression that the textile industry is 'national.' It is true, and important, that a smaller percentage of profits from textile mills are exported than from oil or mining industries...

...Nevertheless, nobody can now reasonably remain in doubt...

...The essential fact at this point is that there were virtually no Peruvian entrepreneurs, managers, or engineers in the Peruvian textile industry...

...Only today are foreign-owned firms hiring a few Peruvian engineers and managers in this field, and at lower wages than their foreign predecessors received, because of pressure from , the government to `nationalize' their labor force and management...

...policy in Latin America probably would have been impossible without an increasingly intimate dialogue with leftist intellectuals, such as took place at the CAEM between high army officers and the leaders of the mini-parties of Peru's "Little Left" who today serve as advisers to the "Revolutionary government...

...Why do workers strike against their own cooperative...

...Their complaint against the new Industrial Law is less of sharing profits with their workers than of giving up executive control of their own businesses...

...Nevertheless, not only does the new Cuajone contract submit the foreign mining enterprise to the highest degree of state control and taxation ever imposed in Peru, but it gives the state the option to refine and market the copper abroad, making the arrangement appear more like the "service contracts" now becoming popular in the oil industry.62 Despite the enormity of the investment needed to bring Cuajone into production, the contract will be valid only "during the period required for the recuperation of the investment, which may not exceed 10 years counted as from the date of the start of mining exploitation operations...

...The increasing control of the agrarian reform program by the military intelligence apparatus was consummated March 31 with the appointment of General Enrique Valdes Angulo, chief of army intelligence, as Minister of Agriculture...

...Then the visitador of the Crown, moved to compassion, so the unhappy man wouldnot suffer more, ordered...

...Shortly before the agrarian reform was decreed, Cayalti was sold to a syndicate of Cuban exiles and the Aspillagas obtained a $3.5 million loan from the Banco Popular on which no payment was ever made.2° When I visted Cayalti, once known as the jewel of Peru's coastal plantations and one of the few that were entirely owned by Peruvians, 21 there was a sign at the entrance that read: "Welcome If You Don't Make Trouble...

...The number of agronomists graduated each year doubled between 1961 and 1965, and the only employment open to these graduates is in the agrarian reform bureaucracy with very low pay...

...To be sure, the corporations typically send home more profits than the capital that they originally introduce into the "host" country...

...8, 30...

...While the "Revolutionary government" firmly exercises political power, APRA just as firmly controls 30 Third ed...

...So on Christmas Eve (deliberately chosen for its religious significance) between 6,000 and 8,000 persons responded to his call, carrying the materials for their huts on their backs...

...See Salvador de Madariaga's brilliant chapter on "Inflation without Enough Production to Absorb It," in his The Rise of the Spanish-American Empire (Free Press, 1965...

...But the most dramatic instance of urbanization in Peru is the avalanchelike descent of peasants from the sierra into Lima, the classic primate city, which has tripled in size since 1940 to a population of about 2.5 million...

...Hundreds of Indians listened quietly on the ground outside a whitewashed adobe schoolhouse on a bright Saturday morning in an assembly called by government "promoters" sent by the Ministry of Agriculture to organize the cooperative at the Hacienda Lauramarca...

...The ammonia fumes produced by the bird the British navy, won an agreement that half the proceeds of the booming guano sales in Great Britain would be delivered in cash to the bondholders' agents...

...In 1957 the labor federation organized the first peasant sindicato in the sierra among the serfs of Lauramarca...

...64 When pressed further by the Peruvians, the Russians said they should talk to the Americans if they wanted better terms...

...The director of the agrarian reform said we could ask questions...

...When the war was over, Peru and Bolivia had lost their nitrate lands—and Bolivia her entire seacoast—to Chilean and British nitrate financiers...

...In all the thatched adobe huts that follow the rusted glacial valleys down from the slopes of Mount Ausanccate, chuno is the main food for most of the year...

...According to the government study Aspectos Sociales y Financieros de un programa de Reforma Agraria (summarized in the Peruvian Times, December 11, 1970), there are only 149,538 potential family farm units of land available to the agrarian reform for 852,000 eligible peasant families...

...When several Indians were arrested, a delegation of peasants traveled to Cuzco to seek help from the regional labor federation, which promptly assigned two lawyers to assist the Indians...

...business investments in Peru, and the coup de grace was delivered by the present "Revolutionary government...

...some who have known General Velasco throughout his army career say there has never been anything special about him to make him stand out as a reformer or revolutionary...

...8 The official version of the January clash between Indians and police at the Hacienda San Antonio outside Carhuaz sounds like an episode from one of the classic novels of the Peruvian sierra...

...According to an official report made after the Leguia dictatorship was overthrown, the army then committed all crimes it was possible to imagine against the defenseless Indians...

...The main political parties have survived in weakened form, and are free to applaud but not to oppose, and the same goes for the press and the general condition of political liberty under the present regime...

...After that we went through four more drafts in four months of intensive work on the law...

...Since Zambia and the Congo recently nationalized their copper deposits and Chile is clearly about to do so, Peru is the last major supplying country open to direct operations by foreign companies...

...Some of them are Peruvian citizens but not fully Peruvian in a cultural sense...

...An old sign was soon torn down that bore a Franciscan motto in Latin, "Tate, Ora et Labora" (`Be Silent, Pray and Work") that for nearly a century was seen above the old clock at the entrance to the mill...

...The strike at Cayalti occurred when Antenor Vazquez, the recently elected secretary-general of the sindicato, was expelled from the cooperative for refusing to return to work after his licencia sindical was cancelled...

...5 This historical record of error and corruption has led me to believe that the only meaningful changes in rural society and the land tenure system have come from violent or threatened action by the peasants themselves...

...The troops were attacked by the Indians with slingshots, a tactic used in the peasant land invasions of the 1960s...

...But our sons will be managers of Cayalti...

...but when the earthquake broke he could not be located in Mexico and finally was traced to a penthouse suite at the Hotel Lido in Miami Beach...

...Although there are no extant portraits of Tupac Amaru, an extraordinary image of him has been created by the pop artists of the promotion department of the Ministry of Agriculture and spread about the country on billboards, in official pamphlets, and on signs at schools, factories, and at the entrance to expropriated haciendas where cooperatives have been formed by the government...

...or estates are purchased at prices above their market value and handed over to syndicates which cannot work them...

...At dawn on February 8, 1899, 1 the townspeople of Ocongate crossed the small, misty river swollen by heavy rains to attack the casa grande of Lauramarca...

...The Aspillagas have long held directorships of the Sociedad Nacional Agraria and the Banco Popular...

...The agrarian reform will buy pure-bred animals to improve your herds...

...3) distributes among workers 10 percent of net profits before taxes...

...Friends of the government frantically combed the capitol's archives for old claims and forged other documents to exchange them for new government bonds that within three years swelled the public debt fivefold.14 Such political scandal resulted that the new bondholders were afraid the government would fall and the next one would repudiate the debt...

...Shortly after the incident Monsignor Luis Bambaren, the tall Jesuit who is the auxiliary bishop assigned to Lima's squatter slums as well as a native of the earthquake zone, issued a statement in his role as president of the Bishops' Commission for Social Action which warned that the Carhuaz bloodshed is a symptom of a deep malaise that summons us to reflect beyond these concrete facts to see more profound evils...

...farms, buildings, and crops destroyed, etc...

...When Velasco finished high school he could not enter Chorillos, Peru's military academy because he lacked the money to buy a uniform and a sword...

...There is nothing in the earlier career of President Velasco that differs from that of the great mass of mestizo officers climbing the steps of the military bureaucracy...

...In the field below his house, Sixto and his family harvest potatoes until nightfall, until the whole valley is suddenly bathed in amber light and then, just as suddenly, left in primeval darkness and cold...

...Nevertheless, he cultivates three separate plots at different altitudes as insurance against his whole potato crop being destroyed by a single night's frost...

...PERU: THE MASTER IS DEAD prevailing in the sierra until the 1960s...

...I pledge my life as security...

...21 no...

...The mushrooming counterinsurgency operation—led mostly by officers trained at U.S...

...A good deal of class conflict has been generated by the coffee-growers' marketing cooperatives that were formed to take advantage of export priorities granted by law to producers' cooperatives...

...the more aggressive Japanese and European companies are doing the same...

...I first studiedMarxism in France during the 1950s while taking courses at a French army counterinsurgency school...

...We want more land, the land of those who have 31 See my earlier reports from the valley, "Letterfrom Peru," Commentary, June 1964, and "Peru's Misfired Guerrilla Campaign," The Reporter, January 26, 1967...

...After this happened, my friend Sixto Flores Yucra, president of the new cooperative, told me in a moment of confusion and despair that the only escape for the Indian is to become a cholo, to become as much a part of the misti power structure as he can...

...38 When I asked an army colonel recently about the embarrassing paternity of the military regime's pet project, he replied: It's true that APRA has been talking about this for decades...

...In the late 1950s, politicians began to talk of a "Nasserist" trend in the armed forces, suggesting a movement akin to the militant lower-middle-class Egyptian officers who in 1952 overthrew King Farouk and set up a reformist regime trumpeting a new "Arab socialism...

...Of the rest, two-thirds were located in Lima, mainly clothing and textile factories with imported second-hand machinery owned by Italians and East Euro NORMAN GALL pean Jews,40 and food-processing plants in the process of rapid absorption by large U.S...

...Many owners created dummy corporations abroad to facilitate expatriation of profits...

...Since the Wars of Independence, many men of low social origins have risen to positions of power in Peru, especially through the army...

...This was the idea of a severe-looking army intelligence PERU: THE MASTER IS DEAD colonel with a high-pitched voice who was serving as a kind of political commissar overseeing the operations of the three big sugar haciendas in the Trujillo area that were seized from U.S...

...From this material they built an estimated 3,000 "houses" during the night, scattered over many square miles of the desert...

...47 See the figures given to the Lima press by GM's Peru manager, quoted in Carlos Malpica, El Mito de la Ayuda Exterior (Lima, 1967), pp...

...the landlord and his son had submachine guns which they fired from the chimney and windows of the manor house, killing eight peasants and wounding 23 more...

...But I had written already to President Velasco, and Velasco had sent Col...

...in the Plaza de Armas in Lima, President Velasco dealt with mounting complaints of this kind...

...18 The Impermanence of Great Fortunes and Families T T HE MOST STRIKING PHENOMENON about the Peruvian oligarchy during this century is the impermanence of the so-called great fortunes and families...

...f) the obligation to sell all our produce to the master at ridiculous prices, like eight cents for a sheep or 16 cents for a baby bull...

...shortly after his inauguration Haya de la Torre, now a toothless old man, contemptuously called Belaunde a senorito—a spoiled son of the aristocracy...

...Looking back 25 years we see a smallish and quite compact city of some 600,000 people...

...While I was away the administrator of the hacienda sent a letter to my house expelling me from the cooperative...

...b) each month we were sent to Cuzco in groups of 30, where we were rented out to different homes without being paid a cent, eating only coca and scraps from the master's table...

...1 e Carey, op...

...He is a shy, passionate, moon-faced man who makes great displays of courtliness to the endless stream of visitors to his office in the Presidential Palace, though he prefers the language and customs of an army barracks...

...The army's recent decision to seize power and guide Peru toward "revolutionary" solutions came essentially from a military intelligence operation that grew like Topsy while combating three tiny—and overpublicizedguerrilla movements along the eastern slopes of the Andes...

...For some the figure runs to 50 percent and more...

...41 Banco Central de Reserva del Peru, Cuentas Nacionales del Peru, 1950-67, pp...

...Its political history at times has seemed like that of a banana republic without bananas, and its successive economic policies a series of mindless scrambles for the next foreign loan, for which its export and customs revenues were regularly hocked as security...

...The military intelligence system has closely controlled the functioning of the expropriated haciendas, yet has been wise enough to yield NORMAN GALL when faced with a serious confrontation with the rank-and-file workers...

...cit., p. 60...

...The proportion of local borrowing has risen sharply under pressure from Washington to reduce its balance of payments problem...

...The transformation of the Peruvian military from a provincial constabulary to an insurgent force challenging U.S...

...The Indians cringed in church as in the world, and brought the master-priest many gifts...

...There is also a growing flow of funds toward Australia, the Philippines, Mexico, India, Spain, and Yugoslavia...

...Because of the cooperative I haven't harvested my own potatoes...

...NORMAN GALL occurred, a large expedition of military officers was in Mexico City at government expense to watch Peru play in the World Cup soccer matches...

...We are not socialists...

...Although the surplus equipment we have been receiving from the United States may be obsolete by the standards of your army," a ranking cabinet officer said in an interview, "they are instruments of modernization for us, and require a kind of industrial organization that Peruvians have never built before...

...makes them flimsy semantic fig leaves for state farms...

...The poker game over Cuajone could involve the very survival of the "Revolutionary government...

...Cuajone will also be one of the world's most automated mines, with computers used for such varied tasks as evaluating exploration data, calculating ore reserves, production scheduling, and complex investment analysis...

...cattle and crops seized to feed troops...

...would be glad to lend the machinery for the exploitation of Cuajone by the state, but not the money needed for salaries and purchases on the local market...

...12 The extraction of guano from the offshore islands was a messy business for which no free labor was available...

...In 15 years the donkey could die...

...The most striking of these is the total reorganization of Peruvian manufacturing production units into Industrial Communities, providing for gradual transfer of ownership and executive control to the workers...

...So far we have changed things withoutbloodshed...

...Our workers are not able to discuss things with people with university degrees...

...But now they grow hard and small...

...One of the colonels replied: Our decision to fight for national independence is irreversible...

...The "Revolutionary government" could argue that Cuajone and Toquepala are essentially part of the same mining complex, and that the exploitation of these deposits has been blocked by international pressures that both threaten national development and jeopardize Peru's capacity to pay the $650 million in servicing of hard-currency loans that fall due between 1971 and 1974...

...Two peasants were killed and the Indians' herds confiscated after the Saldivar family and the prefect of Cuzco agreed to share the proceeds of the rent collection drive which greatly exceeded the value of the unpaid feudal dues...

...Twilight of the Gods There's something cursed, it seems to me, about a country where men have owned men as prop erty...

...The electorate grew fivefold over the next three decades, but the literacy requirement kept it to roughly one-fourth the voting-age population, and the election results were often vetoed by military coups...

...Joint Center for Urban Studies, let us imagine we are looking down on Lima...

...From "Los militares peruanos manos a la obra," Mundo Nuevo (Paris: no...

...This belief nowadays is rare, and even rarer is the capacity to give it a practical form...

...Since the cooperative was formed last year, Sixto has been traveling back and forth from Cuzco, lobbying in the offices of the Ministry of Agriculture there and buying expensive breeding animals for the cooperative with a loan from the Agricultural Bank, as well as rice, canned goods, and coca 2 for the co-op store that has replaced the cholo merchant's roadside establishment at the hacienda's entrance...

...Most of the hacendados had fled La Convencibn, and Peru's first land reform law was decreed in 1963 specifically to divide theland in the valley and end forced labor...

...The comuneros, who have been cutting the barbed wire must be made to understand that they are invading state property, that they are abusing the agrarian reform effort and creating obstacles...

...348), October 31, 1969, p. 8. Also, Carlos Malpica, Los Duenos del Peru (Lima: Fondo de Cultura Popular), p. 11...

...For irrigation, there are 159 small dams operated electronically from a central switch board...

...Speaking in Quechua, the "promotors told the Indians: The Revolutionary government has decreed the agrarian reform to end your sufferings...

...There is much mistrust among our people...

...They preferred to sleep on cold mountainsides and live without food for several days rather than seek refuge in Indian huts...

...The Belaunde regime had lined up roughly $700 million in new investment to bring several untapped copper deposits into production...

...In what is probably the best book to date NORMAN GALL on the world's postwar land reform move ments, Doreen Warriner writes...

...The new military man is one who thinks and has social feeling...

...Many hacendados and sons of hacendados are returning to the government as functionaries implementing the agrarian reform," a young Peruvian anthropologist told me...

...In many parts of the valley, peasants were refusing to accept their titles because the plots of land granted them were too small and infertile, usually consisting of the tiny hillside subsistence plots they had always occupied...

...My son received it and my wife cried, because it said we would have to leave Cayalti, along with two other union leaders...

...11 See W. M. Mathew, "The Imperialism of Free Trade: Peru, 1820-70" in Economic History Review (vol...

...This oligarchy was not seriously threatened until the 1960s, when its economic and political power gave way under the impact of both the great peasant migrations from the sierra into Lima and the mushrooming of U.S...

...The Indian and his culture have always been Peru's great beauty and agony and main source of national identity...

...IPC), was building new installations—with segregated housing for foreign and Peruvian personnel —to which Velasco was to send army troops in order to nationalize it within a week of assuming the presidency, causing the worst crisis in the history of U.S.-Peruvian relations...

...Under the previous government, we went to Lima to ask that the hacienda be expropriated, but the old land reform agency refused...

...This involved the initial distrust and skepticism of some sectors of the people and the true surprise of some intellectuals, who could not believe that this would be a revolutionary process...

...In 1926 the cura Saldivar's nephew, an influential member of the dictator's party, had army troops sent to the hacienda to crush the serfs' "campaign of disobedience...

...It is a good example of the kind of servitude 3 Quoted in Richard Patch, "Indian Emergence in Cuzco," in American Universities Field Staff Reports, West Coast South America (vol...

...In a recent speech before 100,000 people s See "Carhuaz: Sintoma do un Profundo Malestar," in OIGA (Lima: no...

...The guano boom financed a program of highcost railroad construction in the Andes executed by an American, Henry Meiggs...

...7) requires wholly-owned subsidiaries of foreign corporations to contract with the state fixing a term, after recovery of investment and a reasonable profit, for which foreign ownership would be reduced to onethird...

...There will be a cooperative store with low prices...

...The government has decided to form cooperatives first and educate its members later...

...He also has been a lay catechist of the Catholic faith, a leader of the peasant sindicato organized on the hacienda in 1957 with help from the Communist leaders of the Cuzco Workers Federation and, now, president of the cooperative that the Ministry of Agriculture has organized among the hacienda's 975 Indian families...

...Today, the Day of the Indian, the Revolutionary government presents the peasant with the best of tributes...

...In response to such pressures Peru's educational expenditures, for example, increased tenfold between 1955 and 1965, 42 Quoted in Caretas (no...

...In a word, the inhabitants of Lauramarca suffered the effects of a true armed invasion...

...elongated, with a broad, relaxed mouth and gentle brown eyes awakening, when roused, into quick anguish and the focusing of an acute rustic intelligence...

...Before the cura Saldivar gave his curse, our potatoes grew the size of melons...

...Roughly 85 percent of these earnings were in minerals and fishmeal, which under new legislation are being marketed abroad by state corporations...

...Hacienda Lauramarca to attempt a reconciliation with the Indians...

...In future years CAEM would serve as a meeting ground between some of Peru's ablest officers and the leftist politicians and intellectuals who lectured there...

...The main problem is that there is not enough qualified personnel to keep accounts in order and to teach illiterate people who have been cheated all their lives how to trust each other...

...and are often very badly managed...

...But I want to tell you that I think President Velasco knows just what he's doing...

...For the evening meal the family is ranged along one wall, whispering curtly in Quechua, a man and four children waiting to be fed in near-darkness as Sixto's wife and mother-inlaw fuss and bend over clay pots in a comer next to the small fire fueled with the dried PERU: THE MASTER IS DEAD dung of alpacas and sheep that is carefully stored in the yard...

...Before criticizing this belief, therefore, international experts would do well to look at Latin-American countries, where the sophisticated talk is so patently insincere and produces laws which allow so much exemption to landowners that the area distributed is whittled down to waste land, while officials safeguard their own position by inducing collective farming...

...Drastic Measures—the Example of Cuajone T T HESE DRASTIC if not desperate measures represent an effort by Peru and many other countries to influence the terms of their integration into the world economy...

...Many of us do not know what will happen...

...It was only in 1931 that Peru had its first real general election, and there were only 300,000 voters that NORMAN GALL year in a population of roughly 5 million...

...There have been more than 100 such invasions of vacant urban land over the past 20 years ' 22 the invaders inevitably carrying red-and-white Peruvian flags, answering with their slingshots the teargas assaults of riot police sent to evict them and to burn the gaunt shacks of straw matting and bamboo poles built on the desert hillsides overnight...

...We had left things to these corrupt civilians long enough...

...You should report these people to the proper authorities...

...The Economist not long ago voiced growing alarm that cities like Lima "have outgrown their own means of livelihood...

...This supervision has not been able to prevent the agrarian reform bureaucracy from miring itself in an increasing number of local conflicts...

...nitrate industry in Peru's southern deserts, but these lands were soon lost in the disastrous War of the Pacific (1879-84) to Chilean armies that swarmed all over Peru, spurred on by Chinese coolies who served as a Fifth Column and mounted plantation rebellions in their vanguard...

...Indian tribute, Tupac Amaru wrote to the royal visitador: This system has placed us near death, with its immense excesses...

...PERU: THE MASTER IS DEAD from 13 to 29 percent of the government budget, while public spending as a whole leaped from 11 to 20 percent of GNP 43 The important thing about the present "Revolutionary government" is that it attempts innovative solutions to the old problems of foreign domination and economic inequality that undoubtedly will leave some lasting benefits for the Peruvian people—as well as the disillusion of some failed experiments...

...I have seen a very bad situation in some rural zones where the agrarian reform has not been applied because of very complex difficulties...

...and French intelligence and antiguerrilla schools—mounted a military spying apparatus that penetrated not only the centers of rebellion in the universities and the countryside, but Peru's business establishment and traditional political parties as well...

...Production has risen on the sugar haciendas because the agrarian reform coincided with the end of a two-year drought in the area, and the Nixon administration last year granted Peru a large raise in its U.S...

...In 1952 the Hacienda Lauramarca was bought by a group of Argentine sheepmen who attempted a classic land enclosure movement to recover the pastures that had been invaded and occupied by the Indians for three decades...

...Under the new law, the 40 "Today the larger textile firms are still almost entirely owned and managed by foreigners...

...Finally, the course chosen by the military forthe movement seems each day more alien to whatthe society would pursue if the aspirations of itsprincipal groups were taken into account...

...Of the roughly 60 countries in the world now carrying out different kinds of land reform programs, Peru has delayed longest and presents some of the most difficult problems...

...Chuno means potatoes that survive the early frosts, dug from the ground and spread out under the July moon to freeze, then crushed under the feet of the peasant and his family as the chuno melts in the afternoon sun...

...He studied much, but had poor grades...

...NORMAN GALL in a year of full-time study of Peru's social and economic problems...

...The people learn from their own experience, and those who aspire to guide the people should ponder well what they say...

...He harvests his vegetables, and then lets them rot...

...According to Meiggs's brother and partner, "you are probably aware that we take bonds for the work: The amount seems at first thought large, but if security amounts to anything, we have the whole of Peru, Boots & Breeches...

...The great manor house looked across a garden and an empty swimming pool to the smokestacks of the mill that suffused the place with a strong smell of molasses...

...Let us now look at the area that will have grown during those 50 years...

...Today, at 76, he is a toothless old man, still themost loved and hated figure in Peruvian politics, who can still be seen giving lectures at night toworkers at APRA's Casa del Pueblo in downtown Lima, which resembles one of the big settlementhouses on New York's Lower East Side in the early decades of this century...

...Seen for the near future are automated rotary drills with digitized recording of data for computer calculation, elimination of draftsmen by computer-plotters, and conversing with computers in conventional language...

...There are acres of cholo cobblers in blue work-aprons, sitting on rustic stools behind foot-powered sewing machines, waiting all day for a pair of shoes...

...4) creates the Industrial Community, composed of all the firm's employees, including the old management...

...Wasn't his message to the nation on the purpose of the agrarian reform sufficiently clear...

...companies found that their overseas earnings were soaring and that their return on investments abroad was frequently much higher than in the U.S...

...The sums quoted are 1931 equivalents in U.S...

...42 This wait-and-see attitude might well be advisable for many other people...

...He keeps a small flock of sheep and alpacas, but these animals are very rarely slaughtered...

...81, 97...

...Between 1917 and 1920 the Gildermeisters came to the aid of the financially desperate government in Lima with loans totaling (British) £ 244,000, and obtained a permit to build their own port through which they could export sugar and import consumer goods duty-free...

...The uprising of the people of Ocongate in 1899—the weekly market was moved from the hacienda to the town not long after the cura's death—was an augury of the swift and sometimes violent changes that Peru has been experiencing in this century...

...255), July 1970...

...The irrigated fields spread westward for nearly 30 miles from the Pan-American highway to the foothills of the Andes, where the Chicama River begins to form its broad flood plain, the biggest of the 50-odd river valleys producing occasional green gashes of fertility along Peru's 2,000-mile desert coast...

...and Canada...

...Its most numerous and depressed rural population lives in a highland region that is grotesquely scarce in productive land, scattered in the folds of remote mountain valleys and on the upper reaches of the puna, dwelling within or at the edge of great latifundia like the Hacienda Lauramarca...

...See Business Week, April 20, 1963, p. 63...

...An investigating commission later decided that half the new bonds were based on illegal or fraudulent claims, but the new government chose to pay off the French bankers to save Peru's international credit standing...

...these officers later explained that they found the existing structure so rotten that it might dissolve into violence and chaos if there were no drastic reforms...

...He dresses like most Indians, in a heavy brown poncho, a broadbrimmed hat, and sandals cut from old rubber tires...

...Otherwise, frustration cannot be avoided in the face of incomplete execution of the laws or of deals contrary to justice that are made through conversion of family, friendship, or business interests...

...Even the guinea pigs that scurry in the darkness of Sixto's hovel are cooked only on very special occasions...

...the choice of taking local majority partners or leaving the country...

...The subprefect sent police to the hacienda, who arrested the comuneros' leaders, upon which roughly 2,000 Indians surrounded Carhuaz, armed with sticks, ma 8 Quoted in the Peruvian Times, July 30, 1970, p. 4. PERU: THE MASTER IS DEAD chetes, and old guns...

...He hired hydrologists to locate land near Lima with underground water that could be tapped with wells, geologists to study the clay and sand, locating materials which would be suitable for eventual brickand glass-making...

...Many governmental disputes flow from pressures against foreign private investment...

...I went to Sicuani to tell them not to take rash actions, but the comuneros would not listen and kept on seizing hacienda lands all over the province...

...12 How the income from guano exports was used by Peru's rulers is a fascinating tale...

...The Progress of Land Reform ITHIN MONTHS of the inauguration inW July 1963 of President Fernando Belaunde Terry, a son of provincial aristocracy with immense showmanship and popular appeal, the Indian communities of the central sierra invaded two giant sheep ranches, each roughly the size of Rhode Island, of the U.S.owned Cerro de Pasco Mining Corporation and the wealthy Fernandini family, which has important cotton, mining, and real estate interests elsewhere in Peru...

...The source of the Aspillaga fortune was Cayalti, a 20,000-acre sugar hacienda on the north coast, but the family branched off into banking, insurance, cement, electric power, a brewery, glass-making, and real estate...

...Yet they do so with profit margins that in overall terms seem like economic banditry, and greatly diminish the powers of national decision over the often conflicting priorities of consumer demand and capital accumulation...

...the sindicatos at the sugar haciendas and is in an excellent position to either support or sabotage the agrarian reform...

...The Government's legitimacy is not in question, but its ideology is likely to influence its actions...

...Sixto wears a bright red homespun vest with a high collar and a white felt hat...

...But when the time came for action, they always sold out to the oligarchy...

...It may be Peru's last 'chance...

...I don't know whether the horsesweren't very strong, or that the Indian in realitywas made of iron, but the horses absolutely couldnot tear him apart, even after a long time pullingat him while suspended in the air, so that he lookedlike a spider...

...This to us is nonsense...

...But never before have the provinces descended in mass upon the capital to transform the nation's social structure, nor has the provincial 33 See Luigi R. Einaudi, The Peruvian Military: A Summary Political Analysis, RAND corporation, May 1969, p. 6. middle class ever before fused with such great effect its pretentions of nationalism and social reform...

...54), December 1970, p. 4. 39 This includes iron, steel, chemicals, petrochemi cals, fertilizers, cement, shipbuilding, and machine tools...

...The government has been trying to break the unions, most of them controlled by APRA, by ending checkoff of union dues and special leave for union leaders and by requiring that the workers address all petitions to the cooperative as individuals and not through the sindicato...

...When the Hacienda Lauramarca was expropriated last year, its serfs had been on strike for nearly half a century...

...The colonel, a graduate of the U.S...

...The manager of the newly formed cooperative told me: The place is in a mess...

...It would be ideal if these reforms were carried out with the kind of massive popular support enjoyed by the Mexican Revolution, but this is not the case...

...If our brief democratic experiences have led to disaster it has been because of the truly exasperating lack of precisely this democratic experience...

...Their economic ascendancy is nearly always truncated by two factors: their craven dependence on po 1e See James C. Carey, Peru and the United States: 1900-62 (University of Notre Dame Press, 1964), pp...

...The idea of turning the big sugar haciendas into cooperatives was proposed by Belaunde in the 1956 election campaign, but it was first formulated nearly three decades before by the arch-enemy of both Belaunde and the "The feud between APRA and the army would leave the traditional ruling class plenty of room to maneuver...

...The cooperative formula in Peru draws upon the Christian Democratic ideal of communal property, the Marxist principle of collectivized agriculture, and a romantic notion of the ancient Andean traditions of the 29 From The Economist para America Latina (London), July 23, 1969, p. 10...

...Beyond that, Peru's painful struggle with the economic and psychological burdens of feudalism and mercantilism and foreign domination will depend on how much political support the "Revolutionary government" can muster in the next year or two...

...We of the Left must be more agile now that the military have become revolutionaries," Bejar said wryly...

...Although the economy is being reorganized along statist lines, a socialist revolution seems out of the question in Peru because the military cannot indefinitely remain a ruling party, and because it would impose immediate and intolerable sacrifices on the rising middle class of Lima, the classic Latin-American "primate city," where population, wealth, and political power are heavily concentrated...

...government, it is extremely doubtful that Southern Peru will find the $350 million financing assets as required before the June 1971 deadline...

...Until the beginning of the Nationalist revolution, Peru was subjected to the double and paralyzing pressure of underdevelopment and imperialism...

...What Hope in "Structural Reforms...

...By then the great mounds of guano sticking out of the sea were nearly exhausted...

...Between 1950 and 1965 U.S...

...This question is hard to answer...

...The rabbi went to the king and said: "Your majesty, I will teach your donkey to talk, and even give speeches, when I finish...

...Cause...

...Consequently, the formation of the cooperative had changed very little at the Hacienda Lauramarca...

...As a result of furious public debate in Lima as to whether Peru was being swindled out of its guano revenues, the government began issuing guano export franchises to Peruvian businessmen, whose first impulse was to sell them to foreign merchant houses at a profit...

...The great example of this problem is Cuajone, which will be one of the world's largest copper mines, that lies nearly 12,000 feet high in the desert mountains of southern Peru...

...We don't have enough education to be managers...

...7, Development Research Project, Woodrow Wilson School, Princeton University...

...that the hangman cutoff his head...

...For centuries in the colonial period, forced Indian labor worked the mines and haciendas of the sierra, while Negro slaves worked the great plantations of the coast in the kind of classic slave economy developed in the Caribbean and Brazil...

...This was shown dramatically in January when 5 Indians were killed and 20 wounded in a clash with rural police near the town of Carhuaz in the scenic Andean valley of the Callejon de Huaylas, which was devastated by the May 1970 earthquake that killed some 50,000 persons and left hundreds of thousands of others homeless...

...Some industrialists have left the country, but others have gone along philosophically, as reflected in this joke told by a leading Jewish businessman at the end of the executives' meeting addressed last November by General Velasco: A king had summoned his people and showed them a donkey, ordering them to teach it how to talk...