Fate of Peruvian government uncertain as spy chief returns

LIMA, Peru (AP) - Peru's feared former spy chief Vladimiro Montesinos abandoned Panama and returned home yesterday, deepening a political crisis and further endangering President Alberto Fujimori's already shaky hold on power.

First Vice President Francisco Tudela, one of Fujimori's strongest backers, resigned in protest over Montesinos' return and moves to give the military widespread amnesty. "It causes me indignation," he said.

Tudela said he continued to hold Fujimori in high regard but said the president "is the victim of forces that have overwhelmed him."

Calls from the opposition grew for Fujimori to step down immediately and turn over power to a transition government that would force out the military high command, which is loyal to Montesinos.

Fujimori had already announced he was cutting his third five-year term to one year and stepping down in July 2001.

"There is no longer any doubt that there has been, in reality, a coup d'etat," said independent Congressman Rafael Rey. "The military didn't take control of the palace. But the high command, in conjunction with Montesinos, is trying to run the country, and that merits the rejection of all Peruvians."

Riot police used tear gas last night to disperse scores of anti-government protesters, mostly students, who hurled rocks, trash and plants pulled up from the roots in Lima's main plaza in front of the Government Palace.

In Washington, State Department spokesman Philip Reeker said the United States regretted Montesinos' decision to return to Peru and said it would complicate efforts to move forward on reforms and new elections.

Retired army Gen. Daniel Mora warned that if Fujimori failed to take immediate action, either by ordering Montesinos' detention or throwing him out of the country, "the situation could spin out of his control."

"The president is a hostage of Montesinos and the military high command," he said.

After an emergency Cabinet meeting yesterday, Fujimori traveled in a six-vehicle convoy to half a dozen military installations. Photographers and cameramen were allowed to film and photograph him from barricades as he talked with army officers at the buildings that housed the National Intelligence Service.

AP PHOTO

A protester burns a tire as other hold a banner that reads "Dictatorship No" in Lima yesterday after Peru's feared former spy chief Vladimiro Montesinos abandoned Panama and returned home.