PM Castillo 17 March warned Venezuela against providing covert funding for radical leftist groups; call followed arrest of 2 alleged Coordinadora Continental Bolivariana members for importing $150,000 alleged Venezuelan cash - Caracas denied. Suspected Shining Path rebels killed police officer in Apurimac River valley 23 March. Shining Path logistics leader Félix Mejía Asencio captured 18 March in Upper Huallaga. 2 alleged FARC members captured 19 March in Iquitos.

100 police to be sent to coca-growing region of Apurimac and Ene river valley in south-central Peru after rebels killed police chief in Ocobamba 1 November. 4 police killed in clash with suspected remnants of Shining Path rebel group in Huancavelica region 14 November. Government asked for increased funding for security forces to fight terrorism and insurgency in Amazon.

Authorities regained control of major roads 25 April after roadblocks by coca farmers protesting eradication programme erupted in violence twice in month. 1 killed, 5 injured in central Peru after suspected Shining Path ex-rebels attacked crop destruction team. President Alan Garcia announced plan for aerial bombardment of drug trade infrastructure, declared state of emergency in 3 provinces.

Lima placed southeastern province of Abancay under 30-day state of emergency 6 December after thousands protested governor’s transfer of funds.

Shining Path founder Abimael Guzmán sentenced to life imprisonment for crimes committed during Peru’s “dirty war”. Achuar Indians led 13-day blockade that shut down half of country’s oil output in protest at poor environmental conditions; government ended standoff by promising tax and heath concessions.

President Garcia made controversial decree granting legal assistance to hundreds of military officials due to face trial for alleged human rights abuses during Peru’s 1980s and 1990s conflict against Shining Path guerrillas. Former intelligence chief Vladimiro Montesinos given 20-year prison term for arms sales to Colombian FARC in 1999.

Opposition leader Ollanta Humala, runner-up in June’s presidential run-off election, indicted on charges of human rights abuses allegedly committed during Peru’s 1990s struggle against Shining Path guerrillas. Abimael Guzman, Shining Path leader, asked government for general amnesty for crimes committed during 1980-2000 conflict.

President-elect Alan Garcia took office 28 July, while his APRA party gained control of legislature, with election of Mercedes Cabanillas as head of congress.

Presidential runoff poll 4 June deemed free and fair by EU and OAS. Former President Garcia won with 53% of vote, defeating nationalist candidate Humala whose party won largest share of seats in April congressional elections. Venezuelan President Chavez declared Garcia’s victory fraudulent, aggravating relations between countries.

Presidential runoff to be held 4 June between nationalist candidate Humala and former President Garcia, top 2 after first round 9 April. Campaigning by candidates continued amidst allegations of foul play on both sides; 5 killed in clashes between supporters. Relations with Venezuela remained tense. Chile’s Supreme Court released former Peruvian President Fujimori on bail pending extradition decision.