Peru's government has offered dramatic concessions to quell protests by indigenous Amazonians that sparked the worst violence since the Maoist Shining Path insurgency. However, oil and gas exploration will remain the cornerstone of economic policy.
Yehude Simon will resign as prime minister while the government has overturned two controversial laws on land rights and forestry. Alan García, Peru's president, is tipped to announce further cabinet changes by next month's Independence Day celebrations.
