A Fish in the Water

  Velázquez traveled with us thanks to Genaro Delgado Parker, one of the owners of TV Channel 5, who paid his expenses. At the time, Genaro, an old acquaintance of mine and a friend, was said to be an enthusiast of my candidacy. On the night that it was launched, in Arequipa, on June 4, 1989, he gave us a million dollars’ worth of ad time for nothing, after a discussion with Lucho Llosa, in which the latter accused him of being ambiguous and opportunistic when it came to his political tactics. Genaro visited me every so often to make suggestions and pass on political gossip to me, and in order to explain that if I was attacked on Channel 5’s news broadcasts and programs, it was the fault of his brother Héctor, an Aprista and an intimate friend and adviser to President Alan García during the latter’s first year in office.

  According to Genaro, Héctor had won over his younger brother, Manuel, to his cause, and between the two of them they had placed him in the minority in the running of the channel, so that he had found himself obliged to give up any sort of executive post and the directorship of the company. Genaro always made me feel that I had been the original cause of his breaking off with Héctor—which had even gone as far as a fistfight—but that he had preferred to go through this family crisis rather than renounce a view of economics and politics that coincided with my own. Ever since I had worked with him as a reporter when I was still an adolescent, at Radio Panamericana, I had felt an irresistible warmth of feeling toward Genaro, but I always took his declarations of political love with a grain of salt. For I think I know him well enough to be certain that his great success as an impresario has been due not only to his energy and to his talent (of which he has more than enough), but also to his gift as a chameleon, his skill as a sharp businessman with a talent for swimming in both water and oil and for persuading both God and the Devil, at one and the same time, that he is their man.

  His conduct, during the campaign against nationalization, was erratic. In the beginning, he placed himself in a position of headlong opposition to the measure, and Channel 5, which at the time he headed, opened its doors to us and was little short of being the spokesman for our mobilization. On the eve of the rally in the Plaza San Martín, he came to see me with suggestions, some of them very amusing, for my speech, which Channel 5 broadcast live. But in the days that followed, his position gradually changed from solidarity to neutrality, and then to hostility, with the rate of speed of an astronaut. The reason was a summons, at the most heated moment of the campaign, that he received from Alan García, who invited him to breakfast at the Presidential Palace. Once this interview was over, Genaro hurried out to my house, to tell me all about it. He recounted to me a version of his chat with the president, in which the latter, in addition to railing against me, had made veiled threats against him, which he did not tell me about in detail. I noted that he was quite upset by that meeting: half panic-stricken and half euphoric. The fact is that immediately thereafter Genaro left for Miami, where he disappeared into thin air. It was impossible to locate him. Manuel—the manager as well of a chain of radio stations—who took over the business, eliminated us from the news bulletins and placed many obstacles and difficulties in our way, even when it was a matter of getting our paid advertisements on the air.

  After a few months, Genaro came back to Lima and, as though nothing had happened, renewed his contacts with me. He often visited me at my house in Barranco, offering me aid and counsel, while at the same time he pointed out to me that his influence with regard to the channel was limited now, since Héctor and Manuel had ganged up on him. Despite this, his offer of a million dollars’ worth of free publicity was honored by the company even after Genaro was no longer the director of the channel. Through almost the whole of the campaign, Genaro posed as a man on our side. He was present at the launching of my candidacy in Arequipa, and in order to promote it brought together a small group of journalists who, working with Álvaro, distributed materials to the press that could be of help to us. That was how it happened that Paco Velázquez traveled through Asia with me.

  Less intelligent and clever than Genaro, his brother Héctor chose to become involved with the APRA, assuming ticklish responsibilities in Alan García’s administration. He was commissioned by the latter to negotiate with the French government a smaller-sized purchase than the twenty-six Mirage planes that the Belaunde administration had ordered, part of which Alan García had decided to send back. The long-drawn negotiation, whereby in the end Peru kept twelve and returned fourteen, led to an accord that was never completely clear. This was one of the matters in which, according to persistent rumors, there had been shady dealings and commissions amounting to millions.*

  I was repeatedly counseled by advisers and allies of the Front to avoid all mention of the Mirages, because of the risk that Channel 5 would turn into a merciless enemy of my candidacy. I disregarded the advice for the reason already mentioned: so that nobody in Peru would have the wrong idea as to what I was intending to do if I were elected. I am not definitely accusing Alan García and Héctor Delgado Parker in connection with this affair. For, even though I made every effort to acquire detailed information concerning the negotiations having to do with the Mirages, I never managed to arrive at a definite opinion about it. But, for that very reason, it was necessary to determine if the accord had been an open and aboveboard negotiation or not.

  In the middle of my trip through Asia, a fax from Álvaro arrived for me one night in the hotel in Seoul: Héctor Delgado Parker had been kidnapped, on October 4, 1989, in the vicinity of Panamericana Television, by a commando unit of the Túpac Amaru Revolutionary Movement, which, in the course of the operation, had killed his chauffeur and wounded Héctor. He remained a captive for 199 days, until April 20, 1990, when his kidnappers let him loose in the streets of Miraflores. During this time, the executive director of Channel 5 was the youngest of the brothers, Manuel, but Genaro again came to have a certain hand in running the company. At a press conference during the Economics and Agriculture Forum 1990–1995, organized by the Universidad Nacional Agraria, on January 30, 1990 (at which, let it be said in passing, exasperated by the ferocity of the slander of me by officialdom, which was becoming even worse at that time, I went too far, calling Alan García’s administration “a government of shitheads and thieves”), I mentioned, among the affairs that would be the object of an investigation, the matter of the Mirages. Days later, in one of the most mysterious episodes of the campaign, Héctor’s captors allowed him to answer me and proclaim his innocence, from the “people’s prison,” by means of a videotape that was broadcast on César Hildebrandt’s program on Channel 4, on Sunday, February 11, 1990. The evening before, Manuel Delgado Parker had sought Álvaro out, so as to inform him of the existence of this videotape and assure him that the family would not authorize its being broadcast. The Aprista press accused me of putting Héctor’s life in danger by mentioning the Mirages while he was being held captive by his kidnappers. After that episode, Channel 5 was to turn into a key element of the campaign orchestrated by the government against us.

  But all that took place a few months later, and during the trip to the Orient, at the beginning of October 1989, thanks to the good offices of Genaro and his cameraman, Álvaro was able to inundate the TV channels and the daily papers with pictures in which I appeared as little less than a head of state, conversing with the president of the Republic of China, Lee Tenghui, in Taiwan, or with the prime minister of Japan, Toshiki Kaifu. The latter proved to be very cordial toward me. On October 13, 1989, he postponed a meeting with Carla Hills, the United States trade representative, in order to receive me, and in our brief talk together he assured me that if I was elected Japan would support my administration in its efforts to bring Peru back into the financial community. He told me that he looked with favor on our effort to attract Japanese investments. Prime Minister Kaifu had been chairman of a Peruvian-Japanese friendship committee of the Diet and was aware of the fact that I had frequently used the example of Japan as proof that a country could
rise from its ruins and that as a presidential candidate I stood in favor of the economic opening of Peru toward the Pacific. (In the second round of the election, Fujimori made good use of my harangues on the subject, telling the voters: “I agree with what Doctor Vargas Llosa says about Japan. But don’t all of you think that the son of Japanese parents can be more successful than he in pursuing that policy?”)

  The Keidanren, a federation of private companies in Japan, organized a meeting in Tokyo between representatives of Japanese industries and banks and the entrepreneurs who accompanied me on the tour: Juan Francisco Raffo, Patricio Barclay, Gonzalo de la Puente, Fernando Arias, Raymundo Morales, and Felipe Thorndike. I asked them to travel with me because in their respective branches—finance, exports, mining, fishing, textiles, metallurgy—they represented modern businesses, and because I considered them to be efficient entrepreneurs, eager to progress and capable of learning from the companies that we visited in the “four dragons.” It was a good thing to show Asian governments and investors that our project for opening up trade could count on the support of the Peruvian private sector.

  This was one of the few cases which involved a coordinated effort between groups of entrepreneurs and my campaign for the presidency. The positive feelings that, in the society we wanted to build, the private entrepreneur would be the driving force behind development, thanks to whose vision the jobs that we needed would be created, the foreign currency that was in such short supply would reach Peru, the standards of living of the populace would continually rise—someone recognized and approved of by a society without complexes, conscious of the fact that, in a country with a market economy, the success of businesses favors the entire community.

  I never hid from entrepreneurs the fact that, during a first stage, they would be the ones who would have to make great sacrifices. Today I am less certain, but at the time it seemed to me that many, the majority perhaps, came around to admitting that they would have to pay that price if they wanted someday to be the peers of those entrepreneurs who, in Japan, Taiwan, South Korea, or Singapore, showed us their factories and made our heads swim with their figures on rates of growth and their worldwide sales. I managed to communicate to at least some of them my conviction that it depended solely on us whether, on a day in the not too distant future, that filthy and violent metropolis that the City of Kings (as Lima was called in the colonial period) had become would look in the eyes of tourists like the impeccable and wholly modern city-state of Singapore.

  “When I arrived here thirty years ago, there, where you now see those skyscrapers, that avenue with boutiques that need not envy those in Zurich, New York, or Paris, and those five-star hotels, were swamps infested with crocodiles and mosquitoes.” I can still see that figure, pointing, from his window at the Singapore Chamber of Commerce, of which he was the head, at the center of that city, of that tiny country, that left me with an unforgettable impression.

  Like Peru, Singapore was a multiracial society—whites, Chinese, Malayans, Hindus—with different languages, traditions, customs, and religions. But they had as well a very small area of land, with barely room for the country’s population, and suffered from an extreme tropical climate, with suffocating heat and torrential rains. Except for a good geographical situation, they lacked natural resources. That is to say, they were the victims of all those factors regarded as the worst obstacles to development. And yet they had become one of the most modern and most advanced societies in Asia, with a very high standard of living, the largest and most efficient port in the world—whose perfect, spanking-white cleanliness made it look like a sort of clinic, and where a ship unloaded and loaded again in barely eight hours—and high-technology industries.* (The growth rate of its gross domestic product between 1981 and 1990 had averaged 6.3 percent per year and the growth rate of its exports between 1981 and 1989 7.3 percent, according to the World Bank and the International Monetary Fund.) Its different races, religions, and customs coexisted in that financial mecca, with one of the most active stock exchanges on the globe and a banking system that had interlocking networks throughout the planet. All of this had been brought about in less than thirty years, thanks to economic freedom, the market, and internationalization. It is true that Lee Kuan Yew had been authoritarian and repressive (only recently had he begun to tolerate opposition and criticism), something that I was not going to imitate. But why couldn’t Peru attain a similar development, within a democratic system? It was possible, if a majority of Peruvians so chose. And at that point in the campaign, the signs were favorable: the polls always placed me very far ahead, with those intending to vote for me wavering between 40 and 45 percent.

  It was not easy to obtain offers of aid and investments, since I was a mere candidate for president. However, we secured concrete promises for the Program for Social Aid of some four hundred million dollars (Taiwan, two hundred million, and South Korea and Japan, a hundred million each). On the tour, I could show the governments of those countries and many companies what we were going to do to change the self-destructive course that Peru had taken. The country’s image had fallen to lamentable extremes: an insecure and violent place, quarantined by the financial community, which, since the declaration of war by the Aprista administration against the International Monetary Fund, had removed Peru from its agenda, excluding it from all programs for credit or aid and with no interest in its continued existence.

  To my arguments that Peru was endowed with resources that the Asian countries of the Pacific needed—beginning with petroleum and minerals—and that it was therefore possible to make both economies complementary by converting the Pacific into a bridge for exchanges, the answers always tended to be the same ones. Yes, but before that, Peru had to get out of its impasse with the International Monetary Fund, without whose endorsement no country, bank, or business enterprise would trust commitments made by the Peruvian government. The second condition was to bring a definite end to terrorism.

  In the case of Japan, the matter was a particularly delicate one. Government officials and entrepreneurs told us, without beating about the bush, of their annoyance at the lack of compliance with the commitments made by Peru regarding the North Peru pipeline, financed by Japan. Many years ago, Peruvian administrations had stopped amortizing this debt that had been contracted in the days of the military dictatorship, but more serious still for a country where formality is everything, the present administration did not even offer any explanation. The officials in charge of the project answered neither letters nor telexes. And the special envoys that had been sent had been received neither by the president nor by government ministers but by second-level bureaucrats whose instructions appeared to be to answer with excuses and evasive promises (the famous Peruvian institution of the meceo: to keep shilly-shallying until one’s conversational partner gets tired of insisting). Was this any way to behave toward friendly countries?

  I tirelessly repeated to bureaucrats and entrepreneurs that it was against this sort of procedure and political morality that I was fighting. And I explained to everyone that in our program renegotiation with the IMF and the fight against terrorism were absolute priorities. I don’t know whether they believed me or not. But I did obtain a number of things. Among them, an accord with the Keidanren to hold in Lima, immediately following the election, a meeting of Peruvian and Japanese entrepreneurs charged with laying the foundations of a collaboration that would include everything from the thorny subject of unpaid debts to the way in which Japan could aid Peru to reenter the financial world and the sectors in which Japanese businesses could invest in the country. Tireless Miguel Vega Alvear, who had organized the trip through the Orient, was placed in charge of making preparations for this meeting, at the end of April or the beginning of May (the elections were to be held on April 10 and we did not reject the idea that we might win in the first round of voting).

  The most spectacular reception given me on the entire tour was in Taiwan. And I left there convinced that important investments w
ould be forthcoming from that country as soon as we won the election. Officials from the Ministry of Foreign Relations were waiting for me as I got off the plane, two cars with sirens escorted me wherever I went, President Lee Teng-hui received me at an official audience, as did the minister of foreign relations, and we had a long working session with the leaders of the Kuomintang and with private entrepreneurs. And also something that I had insistently requested: a detailed account of the agrarian reform that had transformed the island of great semifeudal landholdings that Taiwan had been when Chiang Kai-shek arrived there into an archipelago of small and medium-sized farms in the hands of private owners. This reform was the driving force that led to the industrial takeoff that turned Taiwan into the economic power that it is today.

  When I was a student, in the 1950s, Taiwan was a bad word in Latin America. The progressivist sectors considered that for a country to “Taiwanize itself” was the worst sort of opprobrium. For the ruling ideology—that confused mixture of socialism, nationalism, and populism that had ruined Latin America—the image of Taiwan was that of a semicolonial factory, a country that had sold its sovereignty for a mess of pottage: the U.S. investments that allowed the existence of manufacturing plants in which millions of miserably paid workers sewed trousers, shirts, and dresses for multinational corporations. In the middle of the 1950s, the Peruvian economy—whose export volume then amounted to as much as two billion dollars per year—was superior to Taiwan’s and the income per capita of both countries was under a thousand dollars. When I visited the island, income per capita in Peru had gone down to around half of what it was in the 1950s and Taiwan’s had increased more than 700 percent ($7,530 for 1990). And after having experienced an average annual growth rate of 8.5 percent between 1981 and 1989 (with its exports increasing at the rate of 12.1 percent over the same period),* Taiwan now had reserves of $75 billion, whereas when Alan García’s tenure in office ended, Peruvian reserves were negative and the country was bearing the crushing burden of an external debt of $20 billion.