AMBASSADOR GOLDBERG'S VISIT TO POTOSI

C O N F I D E N T I A L SECTION 01 OF 02 LA PAZ 003056

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/14/2016
TAGS: ECON PGOV PREL BL
SUBJECT: AMBASSADOR GOLDBERG'S VISIT TO POTOSI

Classified By: Amb. Philip S. Goldberg for reasons 1.4 (b) and (d).

SUMMARY


1. (SBU) Ambassador Goldberg made his first official visit
to the city of Potosi November 6. During the one-day trip he
was welcomed by the president of the Independent Miners'
Association of Potosi and received the highest honor (the
coat of arms of the Villa Imperial) ever given to an
ambassador by the city council; he also donated books to the
municipal library, held meetings with the prefect and mayor,
and participated in three USAID-sponsored events. Senate
President Santos Ramirez, himself from Potosi, accompanied
the Ambassador throughout the day. End summary.

BACKGROUND


2. (SBU) On November 6 the Ambassador made his first
official visit to the mining city of Potosi, capital of the
department of Potosi. The department is a MAS stronghold - -
both Senate President Santos Ramirez (from Potosi) and
Prefect Mario Virreira are from the MAS party. Potosi is the
poorest of Bolivia's nine departments (with only thirty-two
percent of the population having access to running water and
electricity),and many Potosinos have emigrated to other
parts of Bolivia and abroad.

WELCOMED WITH OPEN ARMS


3. (C) Opposition Senator Rene Zamora told Emboff that the
Independent Miner's Association of Potosi, which recently
withdrew its support for the MAS, wanted to send a clear
message to MAS leadership in La Paz. It was thus decided
that Filomeno Ckacka, President of the Independent Miners'
Association of Potosi, would welcome the Ambassador at the
Potosi airport, present him with a miner's hat, and escort
him into town. The Ambassador then attended a special
session of the Potosi city council, where he received the
coat of arms of the Villa Imperial, the highest honor the
council can bestow. City council staff told Emboff that this
was the first time in the city's history that the honor was
given to an ambassador, noting that it took a lot of
negotiating among different political parties and civic
organizations to come to an agreement. During the city
council session the Ambassador announced the donation of 400
books to the municipal library system.

MEETING WITH PREFECT AND SENATE PRESIDENT


4. (C) The Ambassador later inaugurated a USAID-sponsored
employment generation program, along with Prefect Mario
Virreira and Senator Santos Ramirez. In the private meeting
that followed, the prefect was deferential to Santos Ramirez.
The prefect thanked the Ambassador for mission support for
various work generation projects, orphanages, and the
restoration of the prefectural offices. Virreira lamented
the department's extreme poverty, which causes massive
emigration, and expressed his interest in diversifying
Potosi's economy beyond mining.


5. (C) Senator Ramirez (a close associate of President Evo
Morales widely considered to harbor presidential ambitions of
his own) then spoke, congratulating the Ambassador on his
excellent "strategy" of choosing to travel to Potosi on his
first official trip outside the La Paz department. Ramirez
said that, "in the past there have been some problems, and
some governments and ambassadors have said things they
shouldn't, but now I think we can work together on the fight
against poverty." He added, "I am both surprised and happy
that you are visiting Potosi. Your visit here is an
excellent opportunity. This is the start of a new film."


6. (C) The Ambassador then went to Santos Ramirez' hometown
of Caiza D, approximately one hour outside Potosi city, to

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inaugurate a water irrigation system at a USAID-supported
orphanage. During the ride to Caiza D, Santos Ramirez
continued to banter with the Ambassador about the
government's coca reduction policy and joked that not even
President Morales had come to his hometown yet.

MEETING WITH MAYOR


7. (C) In a subsequent meeting, Potosi Mayor Rene Joaquino
(who is of indigenous descent and humble background),
displayed his contempt for Evo Morales, telling the
Ambassador that "Evo is nothing more than one of Chavez'
ministers. We do not have a Bolivian government; we have a
spokesperson for Castro and Chavez." Joaquino opined that
people are starting to realize that Evo is not going to solve
all their problems. "Evo broke his agreement with the
independent miners (not to nationalize the mining sector).
That is forty thousand miners who no longer support the MAS."
Joaquino, making no attempt to hide his ambitions, described
his plan to register his Social Alliance (AS) party as a
national party within the next few months. His goal is to be
ready for the national elections he expects to be held in
2008 after the Constituent Assembly. He said he has been
"making deals and alliances" with the miners, the Central
Labor Union (COB),and other departments to prepare to become
a real opposition. "This government is moving the country
backward. The state-managed economic system did not work in
the past. We will offer an alternative."

COMMENT


8. (C) The Ambassador's choice of Potosi as his first
official visit outside the La Paz department served to break
the ice with MAS Senate President Santos Ramirez. Ramirez
clearly saw significant political gain to be obtained from
the Ambassador's visit. In addition to trying to portray
himself as a pragmatic moderate capable of bringing American
assistance to his hometown, Ramirez offered himself up as an
alternative interlocutor for the U.S. Ramirez could be
positioning himself to try to take away GOB political
leadership with the USG from his political rival Vice
President Garcia Linera. At the same time, the Ambassador
was well received by the prefect, the Independent Miners'
Association , the Potosi city council, and the mayor, all of
whom have come under pressure from MAS party elements to
limit their contact with the USG. Whether the good will
created during this visit will translate into a better
working relationship with the national government remains to
be seen. End Comment.

GOLDBERG