JUDY WOODRUFF, CNN ANCHOR: The Clinton administration is considering what measures, if any, it should take against Peru following the controversial re-election of President Alberto Fujimori. CNN State Department correspondent Andrea Koppel reports.</s>ANDREA KOPPEL, CNN CORRESPONDENT (voice-over): One day after openly calling President Alberto Fujimori's re-election invalid, the U.S. State Department softened its tone and message.</s>PHIL REEKER, STATE DEPARTMENT SPOKESMAN: The correct thing is to say that we haven't taken any steps or made any final determinations.</s>KOPPEL: Privately, State Department officials say the U.S. is reviewing possible sanctions against Peru, including cutting off military aid, but no decision is expected before Wednesday's meeting of the Organization of American States in Washington. If the OAS agrees with its envoy to Peru, Eduardo Stein, that Sunday's elections were not free or fair that could provide political cover for countries like the United States to take unilateral action.0</s>KEN WOLLACK, NATIONAL DEMOCRATIC INSTITUTE: The world is watching what takes place in Peru, and I think what happens in Peru will affect events well beyond the Peruvian border.</s>KOPPEL: Analysts say democracy in Latin America is at a crossroads, and worry, if President Fujimori's re-election goes unchallenged, that could send the wrong signal to other leaders, like Venezuela President Hugo Chavez, who has been accused of authoritarian rule. (on camera): The dilemma for the United States? How to pressure Fujimori to return to Democratic rule without ending Peru's support for the war on drugs in Latin America. Some believe Fujimori may be betting the U.S. needs his help more than it needs to set an example for the rest of the region. Andrea Koppel, CNN, the State Department.
U.S. Criticizes Peruvian Elections, Considers Sanctions