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UNCLAS LA PAZ 001233 
 
E.O. 12958: N/A 
TAGS: PGOV PINR PREL ECON EAID SNAR BO
SUBJECT: CODEL DODD VISIT TO BOLIVIA MAY 27-28 
 
¶1.  (SBU)  Summary.  Despite aircraft problems, CODEL Dodd 
was able to visit La Paz for meetings with Vice President 
Garcia Linera, joined by the Foreign Minister, and with 
opposition leader former President Jorge "Tuto" Quiroga.  The 
Vice President said his government was interested in better 
relations with the U.S. but repeated accusations that USAID 
was working against the government.  In response to Dodd's 
mentioning that harsh anti-U.S. rhetoric is not helpful, 
Garcia Linera tried to explain that President Evo Morales is 
scarred by his prior experiences with the United States (as a 
cocalero) and that at times these "wounds" resurface. 
Quiroga spent much of his time with Dodd and Becerra talking 
about Chavez and his negative role in the hemisphere, 
including Bolivia.  In his press opportunity, Dodd defended 
the Ambassador and urged a "lowering of the temperature" in 
the hopes that a better relationship can be forged, 
particularly with a new U.S. Administration on the horizon. 
The CODEL departed for Santa Cruz, where Dodd met with peace 
corps volunteers before proceeding on to Buenos Aires. End 
Summary. 
 
CODEL Dodd Meeting with VP, FM; USAID Accused Again 
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¶2. (SBU)  Senator Dodd and Congressman Becerra, accompanied 
by staffers Blumenfled and Orringer, met with Vice President 
Alvaro Garcia Linera and Foreign Minister David Choquehuanca 
May 28.  (Note: The CODEL requested a meeting with President 
Evo Morales and had been assured by Ambassador Guzman in 
Washington that it would happen, only to learn last minute 
that the President would not be available - no specific 
reason was provided.  End Note.)  Senator Dodd expressed an 
interest in trying to improve relations between the United 
States and Bolivia, noting that we share many common 
interests -- improving education, health care, human rights, 
economic opportunities; but, the harsh anti-American rhetoric 
coming from President Evo Morales was not helpful. 
 
¶3.  (SBU)  The Vice President explained that one needs to 
understand the Morales Administration's rhetoric in the 
context of many cabinet members' negative personal 
experiences with the USG in the past.  Garcia Linera said 
that there is an interest in "turning the page but the past 
weighs heavily."  For example, he related a recent press 
account based on an interview with a policeman who alleges 
that there was a plot to assassinate Evo when he was a 
cocalero in 2002, a plot that supposedly involved 
anti-narcotics units financed by the USG.  Garcia Linera also 
remarked that he himself was tortured and that he was certain 
that those who tortured him were being directed by a Spanish 
and an American adviser, and that one day he was going to 
find out who these people were but for now he has tried to 
put it behind him, but it is hard, "wounds open and come out 
in our rhetoric." 
 
¶4.  (SBU)  "We want to move on," Garcia Linera added, "we 
want friendly relations, focused on economic terms.  We do 
not want to be a beggar government.  We want respect.  We do 
not want intervention.  I have no complaints about the 
Ambassador (Goldberg), he is a professional, not even the 
Embassy, they know how to do things but is it USAID that 
worries me.  We have come across an e-mail from some person 
at USAID to an NGO which talks about supporting moderate 
indigenous groups, and a few days later we see some of these 
people meeting with the Prefect from Santa Cruz."  We see 
this as you working to oppose the government."  The Vice 
President complained that USAID also had hired a number of 
former officials from previous governments, implying that 
this constituted support for the opposition.  Garcia Linera 
mentioned that there were plans to brief the U.S. Congress 
once all the information on USAID's anti-government 
activities had been compiled.  "But, what worries me most, 
what is most dangerous, is not this support to individuals 
but rather that you are trying to win the hearts and minds of 
the people.  That has a long-term effect, we cannot allow 
that."  The Ambassador explained that our USAID programs are 
meant to support democracy, that individuals are hired 
becuase of their qualifications and expertise, and noted that 
he has repeatedly asked the government to provide proof to 
substantiate Evo's and the FM's accusations, but had yet to 
receive anything. 
 
¶5.  (SBU)  Dodd and Becerra both said that it was important 
to move beyond the past.  "Words matter,"  Dodd stressed, 
urging that there be a "lowering of the temperature."  There 
soon will be a new Administration in Washington and this will 
provide an opportunity for a fresh start, Dodd added. 
Becerra added that it was difficult for the American people 
to understand attacks on the United States and that it would 
be better to work to establish friendly relations.  Garcia 
Linera replied that there is great interest in the U.S. 
market, "we need permanent trade preferences, more U.S. 
investment, we want to industrialize."  But, under Morales 
there is a different economic model.  Garcia Linera explained 
that "for 500 years of colonial history and 180 as a republic 
we have been a resource rich nation but remained poor.  We 
are determined to change this.  We will have more state 
involvement, more taxation of natural resources.  Companies 
complain about paying more taxes, but they will pay. We are 
now a country run by the indigenous and it is our right." 
 
¶6.  (SBU)  The Vice President touted the economic successes 
of his government, an economic growth rate of 4.5 percent 
each of the past two years, which he said would have been 6 
percent were it not for natural disasters resulting from El 
Nino and La Nina.  Hydrocarbon revenues are up 150 percent, 
revenues from minerals are up from $600 million to $2 
billion, and there is no budget deficit.  But, the VP 
acknowledged, there were problems as well.  While agriculture 
exports are up there is not enough supply for the domestic 
market, "and this needs to change.  We will provide food 
security for our people," Garcia Linera asserted. 
 
¶7.  (SBU)  Senator Dodd asked about recent news of Argentina 
signing a gas deal with Trinidad and Tobago apparently 
because Bolivia was unable to provide sufficient supply.  The 
Vice President acknowledged that Bolivia does not have the 
money to invest in order to expand gas production but wants 
to attract foreign investment.  "We are not getting it. 
Perhaps we need to tighten the screws..." Garcia Linera 
remarked.  Then, the VP said that the oil companies did not 
want to invest in Bolivia because they say that Argentina is 
not a good payer.  "Do you want me to take that message to 
Buenos Aires," Dodd joked.  "No, no," the VP replied quickly, 
"that is between us."  "But, companies are worried about 
investing in Bolivia,"  Dodd noted.  "They should not be," 
said Vice President, "we provide juridical security and 
Bolivia should be the energy center of South America.  The 
estimates are that we have anywhere between 54-80 trillion 
cubic feet in gas reserves." 
 
¶8.  (SBU)  Turning to drugs, the Vice President said that his 
government is fully committed to combatting drug trafficking. 
 "We have never placed any restrictions on our police and 
military to do the necessary against the drug trade.  We will 
put a chip in every coca leaf if that is what it takes," 
remarked Garcia Linera.  "We want your help and cooperation," 
he added. 
 
¶9.  (U)  Bio note on Foreign Minister.  Representative 
Becerra commented that he understood that the Foreign 
Minister had relatives in California, to which Choquehuanca 
sheepishly said "yes, many of my relatives migrated to 
California some 15-20 years ago.  One sister and a brother 
live in the Los Angeles area.  The brother does contracting 
work, hiring Mexican subcontractors because, according to 
Choquehuanca, Americans trust Bolivians because they are more 
responsible than Mexicans. Choquehuanca then remarked that 
one of his nephews was a war veteran -- of Iraq.  "But, he 
doesn't speak to me, perhaps you (U.S. authorities) have told 
him not to talk to me," quipped the Foreign Minister. 
 
Opposition's Quiroga Stresses Chavez Menace 
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¶10.  (SBU)  Senator Dodd noted that he hoped that with a 
change in the U.S. Administration in January there would be a 
renewed focus on the Hemisphere and asked former President 
Quiroga how he viewed the situation in Bolivia.  Quiroga said 
that paradoxically Bolivia was facing the "best of times and 
the worst of times."  The best in that the economic situation 
has never been better, the worst in that politically the 
country is becoming increasing polarized as Evo Morales 
looks to impose his vision of change and perpetuate himself 
in power.  On the economy, Quiroga noted that exports were 
four-fold what they were five years ago, remittances have 
also quadrupled in that time period.  Bolivia's natural 
resources are in high demand and getting record prices - gas 
and minerals.  But, inflation is on the rise and there is no 
production, "we don't even have enough gas production because 
foreign investment has dried up," Tuto remarked.  "We should 
be in a period of economic bonanza, but it is being wasted," 
he added.  Quiroga also noted the surge in coca production 
and drug trafficking, noting that his government had made 
great strides but, "now drugs are coming back, it makes me 
sad, it breaks my heart," he said. 
 
¶11.  (SBU)  On the political front, Quiroga stressed the 
threat that Hugo Chavez poses to the Hemisphere, and Bolivia 
in particular.  "He (Chavez) is looking to spread his 
tentacles, establish satellites and Bolivia is a prime 
candidate...Evo, like Chavez, wants to centralize power, 
liquidate institutions, perpetual reelection -- impose a 
constitution, legitimize a bad government."  But, Quiroga 
said defiantly, "we will not let him, we will sort this out, 
we know we are in for a long, protracted fight, but we are 
determined." 
 
¶12.  (SBU)  Senator Dodd inquired what the opposition was 
doing to appeal to the indigenous majority, noting that the 
opposition has a reputation as being antithetical to 
indigenous interests.  Quiroga proudly replied that he had 
the first indigenous women in his cabinet and that the issue 
of indigenous rights was being manipulated by Evo.  Quiroga 
explained that on civil rights, the indigenous have had equal 
rights since 1953, but that the real issue is economic 
empowerment.  Tuto said that his government worked to improve 
economic conditions, provide better education, better health 
care.  What was Evo doing?  "The government exploits the 
perception that if "you have a pale face, you are against the 
indigenous," remarked Quiroga.  "The reality is that 300,000 
Bolivians (out of population of 9 million) have left to Spain 
under Evo's two years in office in search of jobs." 
 
¶13.  (SBU)  Dodd asked if other leaders in the region, Uribe, 
Garcia, Lula, were providing a counterweight to Chavez and 
helping bring stability to Bolivia.  Quiroga complained that 
Brazil has ceded its leadership to Chavez and "does nothing" 
in Bolivia.  Quiroga commented that the opposition is well 
aware that it has to defend democracy, "our problems will not 
be fixed by Brussels or Washington, we know we need to fix 
them." 
 
¶14.  (SBU)  Representative Becerra asked about the prospects 
for a new constitution.  Quiroga explained that the 
government had been poised to push for a vote to approve the 
constitution it drafted, while physically blocking the 
opposition from sessions where the language was "approved." 
Therefore, he decided that in order to avoid a referendum on 
the constitution, the opposition would approve the 
governments original proposal for a recall referendum.  "It 
was our move to stop the constitution," Quiroga said.  (Note: 
 Under Bolivian law, there can only be one national 
referendum per legislative session so in effect by having a 
recall referendum, the government will have to wait until 
2009 to have a referendum on the constitution.  End note.) 
Quiroga added that the opposition is determined to prevent 
Evo from codifying his totalitarian regime with a 
constitution.  Quiroga believes that the recall move had 
significantly reduced the prospects for a new constitution, 
although he is sure Evo will try again. 
 
 
CODEL's Press Opportunity: "Attacks on Ambassador Unhelpful" 
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¶15.  (U)  Senator Dodd's opening statement focused on 
highlighting the common interests between the United States 
and Bolivia, promoting education, health, and economic 
prosperity.  The Senator noted that he had a good and frank 
discussion with the Vice President and Foreign Minister, 
stressing the need for both countries to work together. 
Becerra for his part highlighted the ties between the 
American and Bolivian people, a common desire to see growth, 
and remarked that much had been done in this regard but more 
needed to be done. 
 
¶16.  (U)  In response to press questions regarding the 
constant attacks by the government on Ambassador Goldberg and 
the Embassy, Senator Dodd said "I have a lot of faith in our 
Ambassador here, he is a professional, a man with 
considerable experience, and who understands very well the 
importance of working every day to have good relations 
between our two countries.  Hopefully, in the coming days we 
can have a lowering of the temperature, I understand that 
politically (those attacks) are popular in certain places but 
it is important when change is coming (a new U.S. 
Administration), as we have an opportunity to improve 
relations between our two countries. It is in the interest of 
both countries to improve the lives of our people. 
Therefore, attacking an Ambassador, an Embassy, maybe has 
political value, but ultimately those words do not help 
much."  Becerra added: "what we are looking for is friendship 
and the will to move forward, so that our democracies 
progress.  Although words matter, I believe we are family and 
what matters most in the family are actions, not words." 
 
¶17.  (U)  After departing La Paz, the CODEL met with Peace 
Corps volunteers in Santa Cruz prior to taking off for Buenos 
Aires.  CODEL Dodd cleared this message. 
 
GOLDBERG