Jon Miller reports from Lima on how the hostage crisis has come at a crucial time for President Alberto Fujimori. The president had been hugely popular for beating back inflation and largely defeating Peru's two rebel armies, even though he had taken such drastic measures along the way as disbanding Congress. But Fujimori's popularity had been plunging this year as Peru's economy took a downturn, and the takeover of the Japanese ambassador's residence in Lima punctuated the fact that the guerrillas are still a threat.
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