Identifier
Created
Classification
Origin
06LAPAZ2519
2006-09-18 18:27:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:
HYDROCARBONS MINISTER RESIGNS
VZCZCXYZ9501 PP RUEHWEB DE RUEHLP #2519 2611827 ZNR UUUUU ZZH P 181827Z SEP 06 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC PRIORITY 0599 INFO RUEHAC/AMEMBASSY ASUNCION 6101 RUEHBO/AMEMBASSY BOGOTA 3418 RUEHBR/AMEMBASSY BRASILIA 7278 RUEHBU/AMEMBASSY BUENOS AIRES 4533 RUEHCV/AMEMBASSY CARACAS 1798 RUEHPE/AMEMBASSY LIMA 1836 RUEHMN/AMEMBASSY MONTEVIDEO 4012 RUEHQT/AMEMBASSY QUITO 4433 RUEHSG/AMEMBASSY SANTIAGO 9002 RHEHNSC/NSC WASHINGTON DC RHEBAAA/DEPT OF ENERGY WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS LA PAZ 002519
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND
TREASURY FOR SGOOCH
ENERGY FOR CDAY AND SLADISLAW
E.O. 12958: N/A
TAGS: ECON EINV ENRG EPET BL
SUBJECT: HYDROCARBONS MINISTER RESIGNS
REF: LA PAZ 2511
UNCLAS LA PAZ 002519
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND
TREASURY FOR SGOOCH
ENERGY FOR CDAY AND SLADISLAW
E.O. 12958: N/A
TAGS: ECON EINV ENRG EPET BL
SUBJECT: HYDROCARBONS MINISTER RESIGNS
REF: LA PAZ 2511
1. (SBU) Hydrocarbons Minister Andres Soliz Rada, along with
the Vice Minister and two Directors of Hydrocarbons, resigned
on the evening of September 15 following Vice President
Alvaro Garcia Linera's freeze of a ministerial resolution
that would have shifted hydrocarbons companies' revenues to
the state oil company YPFB (reftel). Garcia Linera froze the
resolution after it provoked a strong reaction from Brazilian
President Lula da Silva due to the negative impact that it
would have had on the Brazilian firm Petrobras. Former
Development Planning Minister Carlos Villegas was named
Hydrocarbons Minister on September 16. Villegas, in line
with President Morales' statements, affirmed that the GOB's
nationalization plan would go forward, but in a "broader
spirit" of "more open" negotiation with private companies.
The Vice Minister of Public Investment and External Finance,
Hernando Larrazabal, was named Development Planning Minister.
2. (SBU) Private investors in the sector viewed Soliz Rada,
the main proponent of the GOB's hydrocarbons nationalization
strategy, as a hard-liner with whom negotiations were
difficult. Company representatives are hopeful that Villegas
will be a more agreeable interlocutor as GOB-company
negotiations begin anew on September 18.
3. (SBU) Comment: Political analysts in La Paz have had a
field day interpreting first Garcia Linera's decision to
freeze Soliz' resolution, then the Minister's rapid
resignation. Some expressed the view that the Vice
President's decision reflects a softening by the GOB of its
hard-line approach on nationalization or at least a
repudiation of failed tactics. The government does seem to
be taking a more conciliatory tone, although it maintains
that its nationalization goals have not changed. The
Brazilian Charge told us September 18 that he expects
Villegas to adopt a less confrontational approach than Soliz.
He added, however, that the GOB's main objectives remain the
same. The Charge forecast a difficult month ahead for
Brazilian/Bolivian relations. End comment.
URS
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND
TREASURY FOR SGOOCH
ENERGY FOR CDAY AND SLADISLAW
E.O. 12958: N/A
TAGS: ECON EINV ENRG EPET BL
SUBJECT: HYDROCARBONS MINISTER RESIGNS
REF: LA PAZ 2511
1. (SBU) Hydrocarbons Minister Andres Soliz Rada, along with
the Vice Minister and two Directors of Hydrocarbons, resigned
on the evening of September 15 following Vice President
Alvaro Garcia Linera's freeze of a ministerial resolution
that would have shifted hydrocarbons companies' revenues to
the state oil company YPFB (reftel). Garcia Linera froze the
resolution after it provoked a strong reaction from Brazilian
President Lula da Silva due to the negative impact that it
would have had on the Brazilian firm Petrobras. Former
Development Planning Minister Carlos Villegas was named
Hydrocarbons Minister on September 16. Villegas, in line
with President Morales' statements, affirmed that the GOB's
nationalization plan would go forward, but in a "broader
spirit" of "more open" negotiation with private companies.
The Vice Minister of Public Investment and External Finance,
Hernando Larrazabal, was named Development Planning Minister.
2. (SBU) Private investors in the sector viewed Soliz Rada,
the main proponent of the GOB's hydrocarbons nationalization
strategy, as a hard-liner with whom negotiations were
difficult. Company representatives are hopeful that Villegas
will be a more agreeable interlocutor as GOB-company
negotiations begin anew on September 18.
3. (SBU) Comment: Political analysts in La Paz have had a
field day interpreting first Garcia Linera's decision to
freeze Soliz' resolution, then the Minister's rapid
resignation. Some expressed the view that the Vice
President's decision reflects a softening by the GOB of its
hard-line approach on nationalization or at least a
repudiation of failed tactics. The government does seem to
be taking a more conciliatory tone, although it maintains
that its nationalization goals have not changed. The
Brazilian Charge told us September 18 that he expects
Villegas to adopt a less confrontational approach than Soliz.
He added, however, that the GOB's main objectives remain the
same. The Charge forecast a difficult month ahead for
Brazilian/Bolivian relations. End comment.
URS