LIMA, PERU, JUNE 11 -- President-elect Alberto Fujimori said today that the current program to attack the cocaine trade in Peru has failed and that he will ask U.S. officials to redirect anti-drug aid toward development projects, such as highways, railroads and schools.

Some police action will still be needed, Fujimori said, but without having "external forces" conduct operations here. Asked about the current participation of U.S. Drug Enforcement Administration agents in raids conducted by Peruvian police, Fujimori said he understood this activity was limited, and he added: "Our own armed forces have the professional capacity for these kinds of actions."

Fujimori said he did not know if he will sign a pending agreement under which the United States would provide $36 million in military aid for Peru's fight against drug trafficking. Outgoing President Alan Garcia has declined to sign the accord, saying it failed to take economic development into account.

Peru's Upper Huallaga Valley produces most of the world's coca, the plant from which cocaine is processed, and U.S. officials say that operations there offer a chance to attack the cocaine trade at its source. In recent months, U.S. funds built a fortified base at Santa Lucia, in the heart of the valley, from which Peruvian police and DEA agents conduct raids.

"Repression has not produced any result in the fight against drug trafficking," Fujimori said. "On the contrary, the acreage of coca has increased. . . . We need more money, and better use of the money."

Coca growers in the valley will not require prodding to switch to other crops, Fujimori said, if there is an effective way to get those crops to market. "An entire package of measures" is needed, he said, including funds for highways and rail lines to provide transportation links and more schools to give the area's residents alternatives.

Fujimori said he hoped to discuss these issues with U.S. officials when he makes a planned U.S. visit in the next several weeks.

Fujimori made his remarks on anti-drug policy to American correspondents as he discussed the reasons for his victory Sunday over novelist Mario Vargas Llosa and talked of his plans to lead Peru out of crisis. Through it all, he displayed ease, confidence and a style that was at times technocratic, at times homespun.

Fujimori, 51, said he won because he established an identification with Peru's poor, mixed-race majority. "I spoke in their own language," he said. "I spoke about their problems." He said Vargas Llosa's campaign was backed by an "economic elite {that} wanted to participate directly and take political control. That didn't happen."

Vargas Llosa had the support of Peru's traditional white upper class in a country that is overwhelmingly brown-skinned and poor. This racial distinction was a factor, he said, primarily in the sense that many people identified more with him than with Vargas Llosa, whose looks and manner are European.

"If I put on {traditional garb}, I am one of them," said Fujimori, whose parents immigrated from Japan. "If Vargas Llosa had done so, it would have been seen as artificial."

After his strong showing in the April 8 first-round presidential vote, Fujimori said, he had talks with Vargas Llosa about an arrangement under which the novelist would take some post in a Fujimori cabinet. But following Vargas Llosa's decision to run in the second round, there was no further contact, the winner said.

Asked whether any thinker had substantially molded his political or economic views, Fujimori described himself as "self-made." The last book he read was Vargas Llosa's most recent novel, "In Praise of the Stepmother."

Fujimori said that Peru today is "almost at the point of death," with hyperinflation, recession and political violence threatening to tear the country apart. He repeated his promise that there will be no harsh economic "shock" when he takes office July 28, no attempt to end inflation with one blow. "The problems are not solved unilaterally," he said, "but with a package of policies."

Declaring that he wants Peru to return to the good graces of international lenders, he said these institutions will have to understand that he can go only so far. "When people are making $30 a month, what more can you reduce?" he asked.

At the same time, he has promised new financial incentives to foster the growth of small enterprises, a quick reactivation of sluggish mining and fishing industries and a host of new social programs.