VZCZCXYZ0009
PP RUEHWEB

DE RUEHLP #3204/01 3331735
ZNR UUUUU ZZH
P 291735Z NOV 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC PRIORITY 1457
INFO RUEHAC/AMEMBASSY ASUNCION 6330
RUEHBO/AMEMBASSY BOGOTA 3654
RUEHBR/AMEMBASSY BRASILIA 7517
RUEHBU/AMEMBASSY BUENOS AIRES 4774
RUEHCV/AMEMBASSY CARACAS 2026
RUEHPE/AMEMBASSY LIMA 2097
RUEHME/AMEMBASSY MEXICO 1922
RUEHMN/AMEMBASSY MONTEVIDEO 4224
RUEHQT/AMEMBASSY QUITO 4663
RUEHSG/AMEMBASSY SANTIAGO 9248
RUEHRI/AMCONSUL RIO DE JANEIRO 0898
RUEHSO/AMCONSUL SAO PAULO 2061
RHEHNSC/NSC WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL

UNCLAS LA PAZ 003204 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON BL
SUBJECT: MORALES RAILROADS LAND REFORM BILL THROUGH SENATE 
 
REF: LA PAZ 3155 
 
------- 
Summary 
------- 
 
¶1. (SBU) Indigenous peoples from across Bolivia who had been 
marching for land reform for the past four weeks finally 
reached La Paz on November 28.  A poloff who attended the 
marchers' rally in La Paz's Plaza San Francisco estimated the 
attendance at 4000, less than the 10,000 expected.  President 
Morales, having just returned from a trip to the Netherlands, 
addressed the marchers and used the occasion to attack the 
senate for holding-up approval of new hydrocarbons contracts 
and for failing to ratify modifications to the 1996 National 
Agrarian Reform Law (INRA).  Throughout his speech Morales 
repeatedly goaded the senate to reconvene later in the day 
and approve both land reform and hydrocarbons contracts. 
Late at night on November 28, MAS senate leader Santos 
Ramirez managed to divide the opposition and succeeded in 
convening a quorum which approved INRA reform, the forty-four 
hydrocarbons contracts, and the long-stalled 
Bolivian-Venezuelan military cooperation agreement.  The 
opposition's boycott of the senate appears to have been a 
miscalculation.  The MAS took advantage of the situation and 
managed to force through three of Morales' key issues. 
Politically, we assess that passage of these bills will fuel 
his resurging popularity, at least in the short term.  End 
Summary. 
 
------------------------------------- 
The March and the Rally in La Paz 
------------------------------------- 
 
¶2. (U) Indigenous peoples from across Bolivia who had been 
marching for land reform for the past four weeks finally 
reached La Paz.  Groups from Santa Cruz started the movement 
in early November. Later, other indigenous groups from four 
other regions initiated their own marches and the five groups 
converged on La Paz on November 28. A poloff who attended the 
marchers' rally in La Paz's Plaza San Francisco estimated the 
attendance at 4000, less than the 10,000 expected.  However, 
people at the plaza stated some marchers had not yet arrived 
in downtown La Paz.  After the rally the marchers paraded 
through downtown La Paz.  Both the rally and the parades were 
peaceful. 
 
------------------------------------------ 
Morales' Speech -- The Senate is the Enemy 
------------------------------------------ 
 
¶3. (U) President Morales, having just returned from a trip to 
the Netherlands, addressed the marchers and used the occasion 
to attack the senate for holding-up approval of new 
hydrocarbons contracts and for failing to ratify 
modifications to the 1996 National Agrarian Reform Law 
(INRA).  Throughout his speech Morales repeatedly goaded the 
senate to reconvene later in the day and approve both land 
reform and hydrocarbons contracts.  The first half of 
Morales' thirty minute speech focused on the benefits of 
hydrocarbons nationalization and how the opposition-led 
senate is blocking the approval of forty-four new gas 
contracts.  (Note: The speech was uncharacteristically short 
for Morales.  End Note).  The president repeatedly compared 
himself and his government, who "are helping the country," to 
the senators, who "only care about making more money for 
themselves."  He stated that the senate -- currently inactive 
due to an opposition boycott -- has "committed a coup against 
democracy" and that it wishes to block investment in the 
country.  He went on to mention that the senate was prepared 
to obstruct the deals he had been negotiating with Shell 
during his trip to the Netherlands. 
 
¶4. (U) When he finally turned his attention to land reform, 
the topic of the day, he again railed at the senate and also 
included the "privileged classes," which he defined as the 
traditional political class, businessmen, and owners of the 
press.  He reiterated his party's position that most land 
remains in the hands of a few privileged wealthy landowners 
and that it will only expropriate "unproductive land".  He 
concluded his discussion on the land issue stating that if 
the senate "wants to close itself and not approve 
modifications to INRA that he was not afraid to convene an 
emergency cabinet meeting so that he could issue a supreme 
decree on land reform." 
 
----------------------- 
Random Morales Comments 
----------------------- 
 
¶5. (U) President Morales weaved, drew parallels, and 
attempted to put Bolivia and the indigenous marchers into a 
larger Latin American context by drawing parallels between 
the changes in Bolivia and the recent election in Ecuador. 
He also argued against free trade agreements and touted the 
Peoples Trade Agreement among Bolivia, Venezuela, and Cuba. 
While touting hydrocarbons nationalization, he mentioned that 
Hugo Chavez would be coming to Bolivia December 10 to 
inaugurate a new gas pipeline to the Altiplano. 
 
--------------------------------------------- 
Morales Wins -- Eleventh Hour Senate Approval 
--------------------------------------------- 
 
¶6. (U) Late at night on November 28, MAS senate leader Santos 
Ramirez managed to divide the opposition and succeeded in 
convening a quorum which approved INRA reform, the forty-four 
hydrocarbons contracts, and the long-stalled 
Bolivian-Venezuelan military cooperation agreement.  Santos 
Ramirez "enabled" two opposition alternative senators, 
Abraham Cuellar Araujo (UN party) and Fermin Heredia Guzman 
(PODEMOS party), over the violent objections of PODEMOS 
Senator Antonio Franco, in order to achieve a quorum. 
President Morales signed the three items into law around 
midnight, then at 1:00 AM November 29, he gave a speech in 
which he stated that "tonight's actions show that the 
government works better without opposition."  Morales told 
the crowd, "Although tonight is a celebration sisters and 
brothers, I will need you many times over and over as we 
change the country."  He went on to encourage the indigenous 
to carry on their march to Sucre in order to "fix" the 
Constituent Assembly.  He continued by saying that he needed 
their support to pass education reform.  He promised that 
mining nationalization would follow and that next year there 
would be a mining "bonus" given to the people.  Morales then 
attacked PODEMOS opposition leader Jorge "Tuto" Quiroga, 
stating that Tuto was in no position to talk about the 
government destroying democracy, when Tuto himself was "a 
small-time dictator." 
 
------- 
Comment 
------- 
 
¶7. (SBU) The opposition's boycott of the senate appears to 
have been a miscalculation.  The MAS took advantage of the 
situation and managed to force through three of Morales' key 
issues which will serve to bolster his resurging popularity, 
at least in the short term.  End comment. 
 
GOLDBERG