VZCZCXYZ0005
PP RUEHWEB

DE RUEHLP #0680/01 0721843
ZNR UUUUU ZZH
P 131843Z MAR 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC PRIORITY 8406
INFO RUEHAC/AMEMBASSY ASUNCION 5675
RUEHBO/AMEMBASSY BOGOTA 2943
RUEHBR/AMEMBASSY BRASILIA 6821
RUEHBU/AMEMBASSY BUENOS AIRES 4054
RUEHCV/AMEMBASSY CARACAS 1378
RUEHPE/AMEMBASSY LIMA 1293
RUEHMN/AMEMBASSY MONTEVIDEO 3627
RUEHQT/AMEMBASSY QUITO 4018
RUEHSG/AMEMBASSY SANTIAGO 8540
RUEHRC/USDA FAS WASHDC
RHEHNSC/NSC WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS LA PAZ 000680 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/AND 
TREASURY FOR SGOOCH 
ENERGY FOR CDAY AND SLADISLAW 
 
E.O. 12958: N/A 
TAGS: EAGR ECON ETRD PINR PGOV PREL EAID BL
SUBJECT: AGRICULTURE MINISTER FOCUSES ON LAND TITLING 
 
REF: LA PAZ 598 
 
¶1. (SBU) Summary: In a March 8 meeting with the Ambassador, 
Minister of Agriculture Hugo Salvatierra explained that the 
new Ministry of Rural Development and Agriculture had taken 
over the tasks of two and a half ministries, and was 
currently consulting with civil groups for their input into 
the National Development Plan.  Salvatierra said the 
Agriculture Ministry would work on four themes: land 
redistribution and titling, production stimulation, expanding 
markets, and improving access to financing.  Salvatierra, 
with a background in law, human rights, and indigenous 
issues, is clearly focused on resolving Bolivia's land 
conflict.  In this context, he emphasized the need for 
implementing expedited titling procedures, particularly in 
the eastern lowlands.  While Salvatierra hopes to defuse 
social tensions by pursuing land reform, others believe this 
will only spread altiplano-type poverty to other parts of the 
country.  Salvatierra also expressed concern that small soy 
producers would lack the infrastructure to compete with U.S. 
companies in Colombia after the U.S.-Colombia Free Trade 
Agreement (FTA) entered into effect.  The Ambassador noted 
the importance of alternative development in counternarcotics 
efforts.  End summary. 
 
New Ministry Structure and Goals 
-------------------------------- 
¶2. (SBU) In a meeting with the Ambassador on March 8, 
Minister of Agriculture Hugo Salvatierra explained that the 
new Ministry of Rural Development and Agriculture had taken 
over the tasks of two and a half ministries, i.e., the former 
Agriculture Ministry, the Ministry of Indigenous Affairs, and 
land/biodiversity/forestry/coca issues from the Ministry of 
Sustainable Development.  His ministry was currently 
consulting with civil groups, including businesses, farmers, 
fishermen, and owners of cattle and camelids, to obtain their 
input into the National Development Plan, due to be presented 
by the GOB at the end of April.  Salvatierra said that his 
ministry would work on four themes: land redistribution and 
titling, production stimulation, expanding markets, and 
improving access to financing. 
 
Focus on Land Redistribution and Titling 
---------------------------------------- 
¶3. (SBU) Throughout the conversation, Salvatierra, with a 
background in law, human rights, and indigenous issues, 
emphasized his focus on resolving Bolivia's land conflict. 
He stressed the need for implementing expedited titling 
procedures, particularly in the eastern and northern parts of 
the country, "where cattle have more land than human beings." 
 According to Salvatierra, land redistribution and titling 
has been going on for the past ten years, but even though USD 
87 million has been spent on the process only 14% of the 
national land had been titled.  He explained that the current 
titling procedure requires 704 days on average if there is no 
opposition, and that the law provides for an expedited 
procedure that has never been used.  He said the government 
would implement an expedited procedure, focusing on 
conflictive areas with large, unproductive land holdings, 
particularly Santa Cruz, the Beni, and the Chaco, and that 
this would help achieve a "legal, economic, and social 
solution" to Bolivia's land conflicts. 
 
Concern for Small Soy Farmers 
----------------------------- 
¶4. (SBU) Salvatierra mentioned that Bolivian soy producers 
were alarmed by the announcement that once the FTA went into 
effect, U.S. soy beans and soy meal would gain immediate 
duty-free access to the Colombian market -- one of Bolivian 
soy producers' main export destinations (reftel).  He said 
that Bolivia needed to open discussions with the U.S. and 
other Andean nations on trade issues, as well as to seek 
alternative markets.  He said the Agriculture ministry 
planned to discuss options with company associations and 
small producers organizations, expressing particular concern 
about small producers, whom he said produced 40% of Bolivia's 
soy products and whose lack of infrastructure and diversified 
markets would cause them to suffer the most harm from the 
U.S.-Colombia FTA. 
 
Alternative Development 
----------------------- 
¶5. (SBU) The Ambassador noted the importance of alternative 
development in counternarcotics efforts.  The Director of 
USAID described the success of alternative development 
projects, including the promotion of pineapple, palm heart, 
and banana exports (2.5 million boxes of bananas in 2005). 
The Polecon Councilor mentioned that the U.S. Department of 
Agriculture opened an APHIS (Animal and Plant Health 
Inspection Service) office in Santa Cruz last year, which had 
successfully collaborated with the Bolivian equivalent 
organization (SENASAG) to combat hoof and mouth disease and 
implement other animal health surveillance programs. 
 
Comment: 
------- 
¶6. (SBU) Even though he hails from Santa Cruz, Bolivia's most 
productive agricultural region, Salvatierra has little 
background in agriculture.  After he placed third as the MAS 
candidate in the Santa Cruz prefect election, syndicates and 
campesino organizations reportedly recommended him for the 
Minister of Agriculture slot.  In this position, Salvatierra 
wants to bring to the eastern lowlands of Bolivia the kind of 
land reform that occurred in the western highlands in the 
1950s.  While he apparently feels such reform might defuse 
social tension, large landholders and cattle ranchers in 
Santa Cruz and the Beni who have much to lose disagree.  So 
do independent analysts who believe that the 1950s land 
reform effort, by subdividing land into ever smaller 
individual plots good only for subsistence farming, only 
guaranteed the poverty of altiplano peasants.  It did this, 
they say, by preventing the kind of large-scale farming that 
has enabled the eastern lowlands to prosper.  End comment. 
GREENLEE