Fujimori Defends Reforms

President Alberto Fujimori, stung by public-relations coups scored by Marxist guerrillas holding 74 high-profile hostages at the Japanese ambassador’s residence here, branded their action “senseless violence” Thursday and said it would not affect Peru’s economic future.

In his most extensive public comments since members of the Tupac Amaru Revolutionary Movement seized the residence Dec. 17, Fujimori defended his government’s free-market reform plan--a program that has been denounced by the guerrillas as detrimental to the poor.

Fujimori declared that the attack was an “isolated incident” that would not scare off foreign investment in Peru.

“That will surely be a disappointment to those who thought they could stop” economic growth and reform, he said, adding that it was a mistake to think that violence could end Peru’s desperate poverty.

The rebels, meanwhile, freeing hostages a few bedraggled men at a time, are holding on to select captives--apparently to keep their bargaining power strong.

Five Supreme Court judges, eight generals, five congressmen, two ambassadors and Pedro Fujimori, the president’s younger brother, are among the men still being held since nearly 500 people were seized during a party at the residence.

The Peruvian government announced that six of the generals held hostage--including two in charge of security matters--have been replaced.

Two of the generals who were replaced are Gen. Maximo Rivera Diaz, in charge of anti-terrorism, and Gen. Guillermo Bobbio, head of state security. It was unclear whether the replacements are temporary.