U.S. EXPANDING PLAN COLOMBIA INTO REGIONAL ANDEAN PLAN

WASHINGTON (CNN) - The Bush administration is in the process of
designing an expansion of Plan Colombia, into a regional-wide plan for
Colombia's neighbors in the Andes, US, Colombian and other Latin
American officials tell CNN.

As the US assists Colombia with its counter-narcotics efforts,
Colombia's neighbors in Ecuador, Peru and Bolivia are worried that
rebels will begin drug cultivation across Colombia's borders.

The neighboring economies are fragile, and poor citizens living in
squalor along the border would see an incentive to join the rebels
with drug production.

The original US commitment to Plan Colombia for Bogota's neighbors was
$180 million. But a senior official tells CNN that while the "actual
numbers" are not worked out yet, President Bush's 2002 budget will see
a "major increase" in programs for Colombia's neighbors, and "some
countries could see an increase in US aid by two or even three times."

US officials say they have solicited ideas from Andean countries on
how they would develop their borders to strengthen, democracy, human
rights and their justice and law enforcement programs. One senior
State Department official said the plan won't be "one size fits all,"
but rather will be "tailor made" for each country -taking into account
the "commonalties" of problems endemic to the region.

"The Andean Ridge has problems that are relatively unique to the rest
of Latin America," added Phil Chicola, the State Department Director
for Andean affairs. "You have marginalized populations, you have
perhaps deeply seeded or perhaps even more deeply seeded social
economic problems in those countries than you do in many of the rest
of the area."

"I think that what you are likely to see is a broader effort with
additional resources that, while not neglecting the counter-narcotics
dimension because it's a very important dimension, is very cognizant
that there are many other socio-economic problems that interceded the
narcotics problem that will be a factor," he said.

Colombia President Andres Pastrana is convening a meeting of Andean
leaders before the April Summit of the Americas, in Quebec, so they
can present their ideas to President Bush in a meeting on the
sidelines of the summit, a Colombian official said.

But officials warn that the Bush administration will be "smart" about
the distribution of aid, and will ensure the US is not "stampeded" by
countries who see it as a "cash cow.

A Colombian official said "the most important thing the US can do to
help the situation" in the Andes is to increase trade - what Pastrana
sees as "phase two" of Plan Colombia.

"The movement away from drugs with alternative development is not
sustainable in the long term unless there is a market for the new
products and that is where the US can come in," he said.

He added that during his visit to Washington, Pastrana received a
commitment by the Bush administration that it would support enhanced
trade with the region, both through an renewal of the Andean Trade
Preference Act and eventually through a proposed free trade agreement
across the Americas.

The administration appears to have softened its position regarding
involvement in Colombia's peace process and has held out the
possibility of participating in talks with FARC rebels.

President Bush publicly refused Pastrana's appeals in the press for
the US to participate in peace negotiations with the rebels.

US and Colombian officials tell CNN, however, that Pastrana never
raised the issue directly during his meeting with Bush.

"The Bush administration went on record saying they would not
participate," the Colombian official said. "So there was no reason for
the president to start pushing it."

But Secretary of State Colin Powell has called for a "clarification"
in the administration's position, and the State Department is now
saying that US participation in the peace process would be conditional
upon the FARC meeting specific US demands.

"The United States is not going to engage in talks with the FARC
until it begins to cooperate with the appropriate government
authorities on cases that involve American citizens," State Department
Spokesman Richard Boucher said, referring to incidents in 1993 and
1999 where Americans were allegedly murdered by associates of the FARC.

He added the US would also not engage with the rebels until there is a
"clear intention on the part of the FARC to begin serious, substantive
negotiations with the Colombian government."

A Colombia official said the comments marked a "definite softening" of
the Bush administration's original position of refusing to engage with
the rebels, which was a "huge deal" for Colombia.

"It is significant because US support for the peace process can do a
lot to get the Europeans and the rest of the international community
to support it as well," the official said. "When the world is watching
and involved, the guerillas feel there is accountability, but when
they are just dealing with the Colombian government, it is a different
dynamic."