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

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Summary
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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.

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The March and the Rally in La Paz
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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.

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Morales' Speech -- The Senate is the Enemy
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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."

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Random Morales Comments
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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.

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Morales Wins -- Eleventh Hour Senate Approval
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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."

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Comment
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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