World Notes PERU

When Alberto Fujimori was running for President, he promised he would not try to revive Peru's disastrous economy with shock tactics. Last week Fujimori's two-week-old government unveiled an austerity plan that prompted protests and food riots. Overnight the price of gasoline jumped from 10 cents per gal. to more than $2, and food prices rose 300%. In Lima at least three people were killed by police and army troops, who were enforcing a state of emergency invoked two days before the measures were made public. The plan calls for taxes to be raised, import duties to be enforced and controls on currency exchange to be lifted.

Many Peruvians said they felt betrayed by their new President. Fujimori has promised $450 million to help the poor survive the economic adjustment, but some Peruvians fear that if the situation gets worse, the army will be needed to maintain order.