PERU'S LEADER REPLACES NO. 2 ARMY COMMANDER

LIMA, March 3 (Reuters) - Peruvian President Alberto Fujimori on Wednesday
replaced the army's second-in-command, who was arrested last month
following allegations he possibly stole $1 million during a 1995 drug bust.

Gen. Tomas Marky, who in February became Peru's highest-ranking soldier
ever detained as part of a drug investigation, denies the allegations that
first surfaced three years ago.

"There is a detention order against him (Marky) in a civilian court and so
he cannot carry out the function as army number two. Therefore I have
removed him from his post," Fujimori told reporters.

Fujimori has said he believes Marky is innocent.

Military sources said Gen. Leopoldo Uriarte has moved up from the
third-ranking army post to replace Marky, who retains his rank as general.

The allegations against Marky were first made three years ago by Lt. Omar
Zegarra while he served under the general's command in a dangerous Andean
region rife with guerrillas and traffickers.

Zegarra claims Marky supervised an army drug bust and captured a small
plane piloted by Colombians, who handed over suitcases that one trafficker
said contained $1 million.

While Marky's detention has followed other drug-related arrests involving
the military, including a 1996 case when cocaine was found aboard a
presidential plane, all have involved middle-ranking or junior officers.

It remained unclear why Marky was detained three years after the initial
accusations.

Since 1995, Marky had climbed swiftly through the army ranks, becoming head
of the key region around the second city of Arequipa before his January
appointment as the army's second-in-command.