Identifier
Created
Classification
Origin
06LAPAZ2505
2006-09-15 19:14:00
CONFIDENTIAL
Embassy La Paz
Cable title:  

BOLIVIA'S MCC FOCAL POINT EXPLAINS RESIGNATION,

Tags:  ECON PGOV PREL BL 
pdf how-to read a cable
VZCZCXRO4902
PP RUEHLMC
DE RUEHLP #2505/01 2581914
ZNY CCCCC ZZH
P 151914Z SEP 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC PRIORITY 0587
INFO RUEHAC/AMEMBASSY ASUNCION 6096
RUEHBO/AMEMBASSY BOGOTA 3413
RUEHBR/AMEMBASSY BRASILIA 7273
RUEHBU/AMEMBASSY BUENOS AIRES 4528
RUEHCV/AMEMBASSY CARACAS 1793
RUEHPE/AMEMBASSY LIMA 1831
RUEHMN/AMEMBASSY MONTEVIDEO 4007
RUEHQT/AMEMBASSY QUITO 4428
RUEHSG/AMEMBASSY SANTIAGO 8997
RHMFISS/HQ USSOUTHCOM MIAMI FL
RUMIAAA/USCINCSO MIAMI FL
RUEHLMC/MILLENNIUM CHALLENGE CORP
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 02 LA PAZ 002505 

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/18/2016
TAGS: ECON PGOV PREL BL
SUBJECT: BOLIVIA'S MCC FOCAL POINT EXPLAINS RESIGNATION,
FRUSTRATIONS


Classified By: Amb. David N. Greenlee for reasons 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 LA PAZ 002505

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/18/2016
TAGS: ECON PGOV PREL BL
SUBJECT: BOLIVIA'S MCC FOCAL POINT EXPLAINS RESIGNATION,
FRUSTRATIONS


Classified By: Amb. David N. Greenlee for reasons 1.4 (b) and (d).


1. (C) SUMMARY: Poloffs met with Bolivia's Millennium
Challenge Corporation (MCC) point of contact, Javier Hurtado,
on September 15 to discuss his still non-public resignation
and to obtain his assessment of Bolivia's Millennium
Challenge Account (MCA) proposal. Frustrated with inadequate
financial resources to hire a professional staff and a lack
of access to GOB officials with decision-making authority,
Hurtado submitted his resignation this week. Faulting the
inexperience of Morales' cabinet, Hurtado asked the United
States to remain patient, emphasizing how important the MCA
compact is for the country and arguing it can still move
forward. Putting his resignation and the MCC into a broader
context, Hurtado said President Morales recognizes the
potential benefits of a MCC compact and solid relations with
the United States. Hurtado argued that even with his
resignation, Bolivia's MCC work can proceed. It is an open
question whether the Morales administration can get this
effort back on track, but we will continue to monitor
developments closely. END SUMMARY.


2. (C) Poloffs met with Bolivia's Millennium Challenge
Corporation (MCC) Point of Contact, Javier Hurtado, September
15 to discuss his still unannounced resignation and to obtain
his assessment of Bolivia's Millennium Challenge Account
(MCA) proposal. Hurtado explained that after five months of
little progress and no demonstrable GOB support, he resigned
earlier this week. Hurtado complained the GOB provided him
with inadequate financial resources to hire a professional
staff. He said he had nonetheless recruited a solid team
only to find out that GOB budget cuts entailed even lower
salaries for his staff. His efforts to meet with GOB
officials about the resources he needed were met by low level
responses and government ineptitude. Faulting the
inexperience of Morales' cabinet, Hurtado said despite the
GOB's last-minute offers to increase his salary, he would not
stay on as the MCC point of contact.


3. (C) Hurtado asked poloffs to maintain the privacy of his
resignation, as the GOB has not yet announced it. When asked
if his MCC work had been discontinued following his
resignation, Hurtado joked that it had scarcely begun.
However, Hurtado said he hoped his resignation would spur the
GOB to move forward on a MCC proposal. He noted that the
International Development Bank (IDB) has the resources,
office space, and personnel to handle Bolivia's MCC proposal.
Further progress will depend on GOB political will. Hurtado
said existing MCC team members have the experience and
capacity to continue with Bolivia's MCC proposal, but
signaled the need for adequate funding to do so. He implored
the USG to be patient with Bolivia regarding its MCC
proposal, emphasizing how important it is for the country.


4. (C) Putting his resignation and the MCC into a broader
context, Hurtado said President Morales recognizes the
potential benefits of a MCC compact and solid relations with
the United States. While somewhat critical of the United
States' early caution of the Morales government, Hurtado
claimed Morales now realizes Chavez' assistance is driven by
Chavez' own political interests. In an effort to demonstrate
the GOB's naivet, Hurtado recalled that a month ago, he
suggested that Morales delegate more to his cabinet officials
and distance himself from potentially hazardous political
issues. Hurtado claimed that Morales responded by admitting
that he sometimes forgets he is president.


5. (C) COMMENT: Javier Hurtado's resignation is a step
backward for the GOB and its efforts to secure the benefits
of an MCC compact. His comments suggest the GOB wants an MCA
compact but that its inexperience prevents it from moving
forward. Hurtado was unaware or unwilling to say when his
resignation will become official. His tale of GOB
bureaucratic fumbling, disorganization, and political naivet
is unfortunately all too familiar. It is an open question
whether the Morales administration can get this effort back

LA PAZ 00002505 002 OF 002


on track, but we will continue to monitor developments
closely. END COMMENT.
GREENLEE