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C O N F I D E N T I A L LA PAZ 000501 
 
SIPDIS 
 
E.O. 12958: DECL: 03/30/2019 
TAGS: PGOV ECON KDEM PHUM SNAR ASEC BL
SUBJECT: SANTA CRUZ LEADERS ALARMED BY EROSION OF 
DEMOCRATIC INSTITUTIONS 
 
REF: LA PAZ 469 
 
Classified By: Acting Deputy Chief of Mission Christopher Lambert for r 
eason 1.4 (b). 
 
¶1. (C) Summary:  During several recent trips by embassy 
officials to Santa Cruz, leaders and common citizens alike 
have expressed concern over the growing anti-democratic 
tendencies of the Morales government.  Issues such as the 
continued imprisonment of Pando Prefect Leopoldo Fernandez, 
the self-imposed exile, and irregular arrests and 
imprisonment of political opponents from the Eastern 
departments, violence against political rivals such as Victor 
Hugo Cardenas (who is popular in Santa Cruz), land 
confiscations for political motives, the growth in 
narcotrafficking and related violent crime, and the draft 
electoral law are some of the leading concerns.  In a March 
27-28 outreach trip to Santa Cruz, A/DCM met briefly with the 
Prefect (Governor), new Civic Committee President, business 
leaders, leaders in the forestry sector, a media owner, and 
the Cardenal.  While they understand there are limits to what 
the U.S. can do to reverse anti-democratic trends in Bolivia, 
they are grateful for continued U.S. engagement.  End summary. 
 
¶2. (C) The Acting DCM traveled to Santa Cruz March 27-28 to 
participate in the forestry fair EXPOFOREST (partly sponsored 
by USAID), and had side meetings with several local 
officials.  Santa Cruz Prefect (Governor) Ruben Costas had 
just returned from a civic march in Sucre, where local 
residents and opposition leaders called for the restoration 
of the constitutional court and an end to harrassment of the 
supreme court.  Costas and the new civic committee president 
Luis Nunez told emboffs that Santa Cruz would hold a similar 
march on Friday, April 3 to protest anti-democratic moves by 
the government, highlight the recent threats against private 
property, call for restoration of the judicial branch, and 
insist on protection of human and civil rights.  Costas and 
Nunez stressed the necessity of opposition unity in this 
election year, because by 2010 it will be too late if the MAS 
is able to gain 2/3 control of the new congress.  Both 
expressed alarm over the draft electoral law which, if passed 
in the form drafted and passed by the MAS-controlled lower 
house, will give an unfair advantage to the MAS by increasing 
representation from MAS rural strongholds at the expense of 
opposition departments and urban areas, virtually 
guaranteeing a 2/3 victory (reftel). 
 
Electoral Law: Only MAS Indigenous Count 
---------------------------------------- 
 
¶3. (C) Secretary for Indigenous Development at the Prefecture 
Antonio Surubi (a Chiquitano from rural Santa Cruz) told 
American Presence Post Officer (APPO) March 17 that the Santa 
Cruz indigenous community is very upset by the draft 
electoral law and its treatment of the seats reserved for 
indigenous delegates.  As currently drafted, the method for 
determining who is "indigenous" requires certification by the 
local indigenous union.  In Santa Cruz, that would mean 
approval by the Confederation of Indigenous Peoples of the 
Orient (CIDOB).  However, the parallel CIDOB recognized by 
the MAS government would be the one charged with declaring 
candidates qualified to run for office.  The other, which 
represents the majority of indigenous people in Santa Cruz, 
would be ignored.  This means that indigenous candidates from 
Santa Cruz who do not support the MAS would never even make 
it on to the ballot. 
 
Cardinal Will Continue Speaking Up for What is Right 
--------------------------------------------- ------- 
 
¶4. (C) The A/DCM paid a courtesy call on Cardinal Julio 
Terrazas, who is slowly recovering from his January open 
heart surgery.  Terrazas expressed concern that the political 
situation in Bolivia during 2009 could become heated, perhaps 
 
resulting in violence.  He said there did not seem to be much 
will on the part of the Morales government for a 
reconciliation with the church, but that he would continue 
speaking out about problems affecting the Bolivian people 
according to his conscience.  (Terrazas drew the wrath of the 
government for speaking about the dangers of increased 
narcotrafficking late in 2008.)  He lamented that the current 
government's policies, rather than resulting in the promised 
"change" that is needed in Bolivia, are instead reducing job 
opportunities and dividing the country.  Terrazas asked that 
the U.S. consider restoring ATPDEA trade benefits, as their 
suspension hurt the poorest people, not the government. 
Emboffs explained that ATPDEA was directly linked to 
cooperation against narcotrafficking.  Emboffs also explained 
that despite the Morales government's accusations against the 
Embassy, including the expulsion of the Ambassador and DEA, 
the Embassy continued to provide assistance throughout the 
country.  The Cardinal was pleased to hear that our aid to 
the poorest Bolivians continues. 
 
¶5. (C) Owner of national television station Unitel, Ernesto 
Monasterio, told A/DCM that government pressure on press 
freedom is increasing, and he predicted it would get worse as 
the electoral campaign heated up.  He stressed the 
importance, but extreme difficulty, of amending the electoral 
law before it is passed by Congress, and then uniting the 
opposition before December elections.  Monasterio asserted 
that if the current version of the MAS-drafted electoral law 
is passed, "The game is over. The MAS will rule Bolivia for 
years to come."  The prefect's advisor for international 
relations, Karen Balcazar (a U.S. citizen), told APPO that a 
high-level meeting with President Morales at the Summit of 
the Americas "would send the message that the United States 
has abandoned the Bolivians fighting for democracy." 
 
Outreach--Ever More Important 
----------------------------- 
 
¶6. (C) Santa Cruz residents express concern that President 
Morales' rhetoric against the U.S. Embassy will result in the 
embassy's closure.  They appreciate Embassy officials 
visiting the region and ensuring first-hand that our 
assistance programs continue.  The A/DCM's remarks at the 
EXPOFOREST closing ceremony highlighted U.S. government 
contributions to the forestry sector, especially in helping 
small, rural and indigenous producers and in supporting 
sustainable use and biodiversity conservation.  Bolivia is 
proud of its wood exports and sound land management policies. 
 However, several speeches criticized the new constitution as 
a return to an old regime in which there was corruption in 
granting land use rights in forests.  The Prefect's address 
called for greater autonomy over forest use permits, so that 
Crucenos could better protect their natural resources. 
 
¶7. (C) The A/DCM spoke to an AmCham gathering about the 
global economic crisis and the U.S. stimulus plan.  He 
stopped by the hospital that was hosting a surgical mission 
of the U.S. NGO Operation Smile, and greeted U.S. and 
international volunteers, patients, and their families.   He 
also visited a civic education project funded by USAID 
through the NGO FIDEM and implemented by the Santa Cruz 
binational center (CBA).  This may be the first partnership 
between USAID and a binational center in the hemisphere, and 
represents an initiative by the CBA to grow a "civic 
responsibility" arm in addition to its educational and 
cultural activities.  The project is reaching 21,000 (out of 
150,000) residents in the marginalized neighborhood "Plan 
3000" which is widely-thought to be a MAS stronghold. 
However, the local residents are enthusiastic about the 
USAID/CBA initiative, and received the A/DCM with open arms. 
While they appreciate the USAID civic education project, they 
wish for more economic development projects that will create 
employment opportunities in their growing neighborhood on the 
outskirts of Snata Cruz. 
 
 
¶8. (C) Comment: Santa Cruz residents are determined as much 
as possible to halt democratic back-sliding.  Their main 
request to us is to report accurately to Washington and the 
international community what is really happening in Bolivia. 
URS