MORALES RAILROADS LAND REFORM BILL THROUGH SENATE

UNCLAS LA PAZ 003204 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PREL ECON BL SUBJECT: MORALES RAILROADS LAND REFORM BILL THROUGH SENATE REF: LA PAZ 3155 -------------- Summary -------------- ¶1. (SBU) Indigenous peoples from across Bolivia who had been marching for land reform for the past four weeks finally reached La Paz on November 28. A poloff who attended the marchers' rally in La Paz's Plaza San Francisco estimated the attendance at 4000, less than the 10,000 expected. President Morales, having just returned from a trip to the Netherlands, addressed the marchers and used the occasion to attack the senate for holding-up approval of new hydrocarbons contracts and for failing to ratify modifications to the 1996 National Agrarian Reform Law (INRA). Throughout his speech Morales repeatedly goaded the senate to reconvene later in the day and approve both land reform and hydrocarbons contracts. Late at night on November 28, MAS senate leader Santos Ramirez managed to divide the opposition and succeeded in convening a quorum which approved INRA reform, the forty-four hydrocarbons contracts, and the long-stalled Bolivian-Venezuelan military cooperation agreement. The opposition's boycott of the senate appears to have been a miscalculation. The MAS took advantage of the situation and managed to force through three of Morales' key issues. Politically, we assess that passage of these bills will fuel his resurging popularity, at least in the short term. End Summary. -------------- The March and the Rally in La Paz -------------- ¶2. (U) Indigenous peoples from across Bolivia who had been marching for land reform for the past four weeks finally reached La Paz. Groups from Santa Cruz started the movement in early November. Later, other indigenous groups from four other regions initiated their own marches and the five groups converged on La Paz on November 28. A poloff who attended the marchers' rally in La Paz's Plaza San Francisco estimated the attendance at 4000, less than the 10,000 expected. However, people at the plaza stated some marchers had not yet arrived in downtown La Paz. After the rally the marchers paraded through downtown La Paz. Both the rally and the parades were peaceful. -------------- Morales' Speech -- The Senate is the Enemy -------------- ¶3. (U) President Morales, having just returned from a trip to the Netherlands, addressed the marchers and used the occasion to attack the senate for holding-up approval of new hydrocarbons contracts and for failing to ratify modifications to the 1996 National Agrarian Reform Law (INRA). Throughout his speech Morales repeatedly goaded the senate to reconvene later in the day and approve both land reform and hydrocarbons contracts. The first half of Morales' thirty minute speech focused on the benefits of hydrocarbons nationalization and how the opposition-led senate is blocking the approval of forty-four new gas contracts. (Note: The speech was uncharacteristically short for Morales. End Note). The president repeatedly compared himself and his government, who "are helping the country," to the senators, who "only care about making more money for themselves." He stated that the senate -- currently inactive due to an opposition boycott -- has "committed a coup against democracy" and that it wishes to block investment in the country. He went on to mention that the senate was prepared to obstruct the deals he had been negotiating with Shell during his trip to the Netherlands. ¶4. (U) When he finally turned his attention to land reform, the topic of the day, he again railed at the senate and also included the "privileged classes," which he defined as the traditional political class, businessmen, and owners of the press. He reiterated his party's position that most land remains in the hands of a few privileged wealthy landowners and that it will only expropriate "unproductive land". He concluded his discussion on the land issue stating that if the senate "wants to close itself and not approve modifications to INRA that he was not afraid to convene an emergency cabinet meeting so that he could issue a supreme decree on land reform." -------------- Random Morales Comments -------------- ¶5. (U) President Morales weaved, drew parallels, and attempted to put Bolivia and the indigenous marchers into a larger Latin American context by drawing parallels between the changes in Bolivia and the recent election in Ecuador. He also argued against free trade agreements and touted the Peoples Trade Agreement among Bolivia, Venezuela, and Cuba. While touting hydrocarbons nationalization, he mentioned that Hugo Chavez would be coming to Bolivia December 10 to inaugurate a new gas pipeline to the Altiplano. -------------- Morales Wins -- Eleventh Hour Senate Approval -------------- ¶6. (U) Late at night on November 28, MAS senate leader Santos Ramirez managed to divide the opposition and succeeded in convening a quorum which approved INRA reform, the forty-four hydrocarbons contracts, and the long-stalled Bolivian-Venezuelan military cooperation agreement. Santos Ramirez "enabled" two opposition alternative senators, Abraham Cuellar Araujo (UN party) and Fermin Heredia Guzman (PODEMOS party),over the violent objections of PODEMOS Senator Antonio Franco, in order to achieve a quorum. President Morales signed the three items into law around midnight, then at 1:00 AM November 29, he gave a speech in which he stated that "tonight's actions show that the government works better without opposition." Morales told the crowd, "Although tonight is a celebration sisters and brothers, I will need you many times over and over as we change the country." He went on to encourage the indigenous to carry on their march to Sucre in order to "fix" the Constituent Assembly. He continued by saying that he needed their support to pass education reform. He promised that mining nationalization would follow and that next year there would be a mining "bonus" given to the people. Morales then attacked PODEMOS opposition leader Jorge "Tuto" Quiroga, stating that Tuto was in no position to talk about the government destroying democracy, when Tuto himself was "a small-time dictator." -------------- Comment -------------- ¶7. (SBU) The opposition's boycott of the senate appears to have been a miscalculation. The MAS took advantage of the situation and managed to force through three of Morales' key issues which will serve to bolster his resurging popularity, at least in the short term. End comment. GOLDBERG