VZCZCXYZ0004
PP RUEHWEB

DE RUEHLP #0168 0232046
ZNR UUUUU ZZH
P 232046Z JAN 07
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC PRIORITY 2166
INFO RUEHAC/AMEMBASSY ASUNCION 6484
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RUEHBR/AMEMBASSY BRASILIA 7687
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RUEHNE/AMEMBASSY NEW DELHI 0099
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RUEHSG/AMEMBASSY SANTIAGO 9407
RHEHNSC/NSC WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL

UNCLAS LA PAZ 000168 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON BL
SUBJECT: PRESIDENT MORALES' STATE OF THE UNION SPEECH 
 
REF: LA PAZ 125 
 
SUMMARY 
 
¶1.  President Evo Morales marked his first year in power on 
January 22 by giving a rambling four-and-a-half-hour State of 
the Union speech attended by the Ambassador and DCM.  Morales 
triumphantly highlighted his government's accomplishments 
(hydrocarbons nationalization and macro-economic growth) and 
outlined his plans for this year (mining nationalization and 
education reform).  Throughout the disjointed speech, Morales 
repeatedly praised Cuban and Venezuelan aid while taking 
swipes at the United States (Morales did praise a U.S. 
justice sector project).  Other than the GOB's intention to 
sign commercial agreements with Libya, India, Iran, and South 
Africa, Morales offered little new substance.  End summary. 
 
REVIEWING THE PAST, LOOKING FORWARD 
 
¶2.  President Morales marked his first year in power and the 
opening of the 2007 congressional term on January 22 with a 
four-and-a-half-hour State of the Union speech attended by 
the Ambassador and DCM.  The main opposition party, Podemos, 
walked out of the session when Morales opened his speech with 
a joke about the Podemos senator who had him expelled from 
congress five years ago, and quipped that he owed his current 
position as president to this senator's action then. 
 
 
¶3.  Morales said that necessary economic and political 
changes remain with the Constituent Assembly, calling it "the 
best instrument for change for the country, to unite the 
national territory."  The president reviewed the successes of 
his first year in office (hydrocarbons nationalization and 
macro-economic growth) and laid out his goals for this year, 
among them mining nationalization and education reform. 
Morales also threatened to nationalize any multinational 
company that does not "fulfill its promised investment or 
where there is proof of corruption."  He also raised the 
MANPADS case, exhorting congress to bring responsible parties 
to justice. 
 
PRAISE FOR CUBA AND VENEZUELA 
 
¶4.  Throughout the speech Morales repeatedly praised Cuban 
and Venezuelan aid, at one point saying "the country that has 
suffered the most aggression (Cuba) from the empire is the 
one who has helped us most in public health."  The president 
did give credit to the United States for USAID-financed 
justice centers but took other swipes.  Citing the highly 
unusual case of a mentally-disturbed Amcit who traveled to 
Bolivia on a non-existent country's passport and blew up a 
hostel (Reftel), Morales justified his decision to require 
visas from American tourists. 
 
 
OTHER ANNOUNCEMENTS 
 
¶5.  Morales announced a new push upon the World Health 
Organization to get the United Nations to de-list the coca 
leaf as a controlled substance.  The president also announced 
that his government would sign commercial agreements with 
Libya, India, Iran, and South Africa.  Morales said that his 
supporters are "very welcoming of such accords."  There was 
no mention of ATPDEA or of pursuing any kind of trade 
agreement with the United States. 
 
COMMENT 
 
¶6.  Morales did not offer much new substance during his long 
and often disjointed speech.  At one point, when Morales 
discovered the MAS congressional party chairman had fallen 
asleep, he publicly called for someone to give the 
congressman coca tea to keep him awake.  While mentioning the 
United States in favorable terms once, clearly the darlings 
in his eyes are Cuba and Venezuela.  End comment. 
 
 
URS