BUSH HAILS PERU'S WAR ON DRUGS, TERRORISM

LIMA, Peru - Extending a hand to a shaken nation, President Bush declared
Saturday that the United States would work with Peru to fight terrorism
wherever it occurs, saying that the two nations share a common perspective
on the problem: "We must stop it.''

"Security is impossible in a world with terrorists,'' Bush said in a joint
news conference with Peruvian President Alejandro Toledo. "Our nations
understand that political and economic progress depends on security.''

Toledo, for his part, said he and Bush share "the energy and the
stubbornness'' to combat terrorism without wavering. He called it "a war
with no ambiguities whatsoever against terrorism and drug trafficking.''

Bush, the first U.S. president to visit Peru, arrived three days after a
car bombing near the U.S. Embassy killed nine people and embarrassed the
Peruvian government.

"Peruvians have been reminded again this week of the terrible human toil of
terror,'' Bush said, offering U.S. sympathy to the victims. He thanked Peru
for taking the lead "in rallying our hemisphere to take strong action
against this common threat.''

Toledo added: "On this issue, we are partners. We are stubborn.''

Bush said he had talked with Toledo about how the United States can help in
the fight against drug trafficking and terrorists. ``That's part of the
reason I'm here, is to support our mutual desire to fight terrorism and to
help democracy thrive,'' he said.

Bush said the United States had tripled assistance to Peru for fighting
drugs but also has an obligation to reduce U.S. demand for illegal drugs.
"We've got to do a better job at home of convincing Americans to stop using
drugs,'' he said. "That will, in turn, help the region.''

The increased U.S. aid will support Peru's efforts to stem a possible
resurgence in coca production and the recent appearance of heroin poppy
crops in remote highland areas.

Bush came out of his meeting with Toledo having made no decision on whether
to resume drug surveillance flights over Peru.

They were suspended after a Peruvian military jet shot down a plane
carrying American missionaries, killing 35-year-old Veronica Bowers and her
infant daughter, Charity. A CIA-operated surveillance plane had mistakenly
identified the aircraft as a possible drug-smuggling flight.

"We are reviewing all avenues toward an effective policy of interdiction,''
Bush said. He said the shootdown had caused the United States to ``step
back'' and study how best to combat narcotics trafficking.

"We want to make sure that when we work with countries like Peru, we
achieve the common objective, we make it hard for narcotraffickers to move
through their lands and cross their oceans,'' he said.

Toledo said he asked Bush to consider a new initiative ``for bilateral
trade and investment within the framework of the Andean community.'' He
said the two saw eye-to-eye on expanding trade.

"I think it's important because trade is a synonym for work, and work is a
way to deal with poverty,'' Toledo said.

Bush, meanwhile, said he was committed to renewing and extending the Andean
Trade Preferences Act, which sets special tariff treatment for imports from
those countries. The legislation is pending in the U.S. Senate, and Bush
urged senators to move it forward.

The president's calls for free trade with hemispheric neighbors comes as
his administration is imposing tariffs totaling 29 percent on Canadian
softwood lumber for what the Commerce Department said was unfair trading
practices.

Bush also announced the return of Peace Corps volunteers to Peru for the
first time in nearly 30 years, with the first of them to arrive in August.
He called it ``a symbol of stronger ties between our people and the
stronger relationship between our nations.''

The terror attack on Wednesday loomed over Bush's visit. The president said
he trusted Toledo's government to keep his one-day visit safe, and Peruvian
officials tightened security throughout Lima, the capital, especially at
the embassy.

Riot police firing tear gas dispersed dozens of anti-American
demonstrators, and smoke billowed over a square near the Palace of Justice.

Toledo, whose approval ratings have plunged to less than 30 percent after
eight months in office, gave a nationally televised address Friday to
outline eight anti-terrorism measures, such as rebuilding the state
intelligence structure and doubling the anti-terrorism budget.

"We will not allow a return to violence,'' Toledo said.