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Viewing cable 06LAPAZ1537, BUSINESS ASSOCIATIONS, MORALES TRADE CRITICISMS

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Reference ID Created Released Classification Origin
06LAPAZ1537 2006-06-06 21:22 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0000
RR RUEHWEB

DE RUEHLP #1537/01 1572122
ZNR UUUUU ZZH
R 062122Z JUN 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 9467
INFO RUEHAC/AMEMBASSY ASUNCION 5898
RUEHBO/AMEMBASSY BOGOTA 3211
RUEHBR/AMEMBASSY BRASILIA 7059
RUEHBU/AMEMBASSY BUENOS AIRES 4314
RUEHCV/AMEMBASSY CARACAS 1606
RUEHPE/AMEMBASSY LIMA 1598
RUEHME/AMEMBASSY MEXICO 1714
RUEHMN/AMEMBASSY MONTEVIDEO 3826
RUEHQT/AMEMBASSY QUITO 4240
RUEHSG/AMEMBASSY SANTIAGO 8786
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 001537 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/AND LPETRONI 
STATE PASS TO USTR FOR BHARMAN 
COMMERCE FOR JANGLIN 
TREASURY FOR SGOOCH 
 
E.O. 12958: N/A 
TAGS: ETRD EINV ECON PREL PGOV BL
SUBJECT: BUSINESS ASSOCIATIONS, MORALES TRADE CRITICISMS 
 
 
1. (SBU) Summary: In a joint declaration May 31, seven 
departmental business associations harshly criticized the 
Morales administration and charged the president with leading 
Bolivia in the wrong direction.  Morales responded in an open 
letter published in leading newspapers June 3, accusing the 
business community of adopting the discourse of Podemos, 
Bolivia's principal opposition party, and of defending an 
"archaic, anti-national" economic model.  These may be the 
first formal public statements in an increasingly emotional 
debate over Bolivia's economic future.  End summary. 
 
2. (U) In a joint declaration May 31, seven departmental 
business associations harshly criticized the Morales 
administration and expressed a "high degree of concern" for 
Bolivia's future, plainly stating their belief that the 
president was leading the country in the wrong direction. 
Business leaders recognized the population's desire for 
change but accused the government of introducing an era of 
political uncertainty and "ideological confrontation" that 
would slow efforts to "resolve basic problems like 
employment."  The declaration called attention to the 
administration's lack of "a coherent economic plan consistent 
with national and world reality" and noted that observers 
both within and outside Bolivia believed the country had 
embarked on "an ideological adventure" contrary to basic 
principles of economic development. 
 
3. (U) Signatories to the declaration not only charged GOB 
officials with isolating Bolivia and threatening poor 
families' access to foreign markets - paradoxically hurting 
the very people officials had promised to help - but also 
argued that the Morales administration had "damaged the 
independence of the judiciary, the Constitutional Tribunal, 
and state entities" and weakened democracy by attacking key 
institutions.  Business leaders indicted the government for 
concentrating power in a single body, adopting a 
"quasi-monarchical" posture, and violating constitutional 
guarantees. 
 
4. (U) The administration's actions, business leaders argued, 
had threatened investment and "sown unease among neighboring 
and partner countries," undermining foreigners' trust in 
Bolivia and harming the country's image abroad.  Signatories 
highlighted the negative effects of the hydrocarbons 
nationalization and declared that attacks on the mining and 
manufacturing industries would deter investment and limit 
economic growth.  In a parting shot, business leaders 
declared that Bolivia was moving toward "a despicable 
dependence on Cuba and Venezuela... such that (Bolivia's) 
troops had to sing other countries' hymns."  They told 
Morales that Bolivia did not need "foreign tutors whose 
interests exceeded the limits of international cooperation." 
 
5. (U) Morales responded in an open letter published in 
leading newspapers June 3, accusing the business community of 
adopting the discourse of Podemos, Bolivia's principal 
opposition party, and of defending an "archaic, 
anti-national" economic model rejected by the Bolivian 
people.  Morales reminded business leaders that he won 54 
percent of the vote in December's presidential election and 
noted that more than 80 percent of the population supported 
his administration.  The president charged the business 
community with "trying to confuse the public" by saying the 
government had no economic plan, when in fact GOB officials 
were working on the "reconstruction of a strong and dynamic 
public sector, the construction of basic infrastructure 
oriented toward economic, social, and regional development, 
the industrialization of natural resources, and the 
empowerment of indigenous economies." 
 
6. (U) Morales further attacked business leaders for 
defending "institutions captured by multinational interests 
and military officials who turned over strategic weapons to a 
foreign power."  The president labeled those who supported 
the latter "sell-outs" and suggested that business leaders 
protected foreign companies that came to "invest" in Bolivia 
but violated the laws of the state.  In response to 
accusations that Bolivia had become dependent on Cuba and 
Venezuela, Morales asked when business leaders had "raised 
their voices against imperial ambassadors who acted like 
viceroys, undermining sovereignty and trampling on the 
dignity of Bolivians."  He also asked when the business 
community had objected to "the entry of military officials to 
massacre and humiliate indigenous and farmers in the name of 
fighting narco-trafficking, terrorism, and zero coca." 
 
7. (U) Morales closed by declaring that "the international 
community - for the first time in history - looked at Bolivia 
as a country that deserved respect, that had stopped being a 
land for no one and had become a land for all."  He noted 
that the past was too fresh for people to "so easily forget 
the difference between those who defend the nation and those 
who have sold it with impunity." 
 
8. (SBU) Comment: These may be the first formal public 
statements in an increasingly emotional debate over Bolivia's 
economic future.  In an unprecedented display of unity and 
coherence, business leaders explicitly criticized Morales and 
his administration and outlined their opposition to the 
government's policies.  Morales' rebuttal, with its veiled 
references to the United States, may have been less coherent, 
but it may open the door to a wide-ranging discussion of the 
economic policies Bolivia should pursue - assuming attacks on 
persons and foreign powers do not derail debate before it 
starts.  End comment. 
GREENLEE