BOLIVIA AND VENEZUELA WASTE NO TIME SIGNING

UNCLAS LA PAZ 000168 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PREL ECON SOCI BL SUBJECT: BOLIVIA AND VENEZUELA WASTE NO TIME SIGNING COOPERATION AGREEMENTS ¶1. (U) On President Evo Morales' first full day in office, Morales and Venezuelan President Hugo Chavez signed a series of cooperation agreements covering energy, sports, health, medicine, education and agriculture. Chavez called the signing of these agreements "the start of a new period of relations between Bolivia and Venezuela and the integration of our peoples." He continued that the entire Government of Venezuela would be at Morales' disposal. Chavez said that the Venezuelan state-owned petroleum company PDVSA would help the GOB with the nationalization of the hydrocarbons sector, "even as we did to combat the domination of the American petroleum companies in our country." (This was the only reference to the United States during the signing ceremony.) ¶2. (U) Morales responded with gratitude, noting that within 24 hours of taking office he was signing his first agreement as President. To Chavez he said "Your presence strengthens us, not only Evo Morales but all the Bolivian people." He highlighted that the GOV offered 5,000 scholarships to Bolivian students and committed to buy 200,000 tons of soy. He also commended the Venezuelan offer to assist in combating illiteracy, to complement efforts to be made in this area by the Cuban government. Morales concluded by giving Chavez a gift of a Simon Bolivar portrait made entirely from coca leaves. ¶3. (U) The two leaders also signed a joint declaration in which they committed to work together to end the "neo-liberal" economic model which has allegedly oppressed their people. (Embassy will seek to obtain texts of joint declaration and cooperation agreements.) ¶4. (SBU) Comment: While Chavez did not receive any special treatment at the Sunday inauguration, today is a different story. Following the signing ceremony, Morales and Chavez appeared jointly on the balcony of the Presidential Palace to an exuberant parade. Today's display underscored the close personal relationship between Morales and Chavez. It also may have signaled growing Bolivian dependence on Venezuelan largesse. End Comment. GREENLEE