AMBASSADOR CHARLES SHAPIRO NOVEMBER 28-29 LA PAZ

C O N F I D E N T I A L SECTION 01 OF 03 LA PAZ 003295

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/18/2016
TAGS: ECON PGOV PREL BL
SUBJECT: AMBASSADOR CHARLES SHAPIRO NOVEMBER 28-29 LA PAZ
VISIT

REF: LA PAZ 3229

Classified By: ECOPOL Andrew Erickson for reasons 1.4 (d).

--------------
Summary
--------------

1. (SBU) During November 28-29 travel to La Paz, Principal
Deputy Assistant Secretary Charles Shapiro and WHA Senior
Advisor Maria Tamburri met with USG and GOB officials on
counter narcotics issues, spoke with local indigenous
leaders, met with Bolivian Vice President Garcia Linera, and
reviewed USAID's comprehensive assistance efforts around La
Paz. The trip received extensive press coverage and provided
an opportunity to publicly highlight the importance of our
bilateral relationship. Reftels report on the specifics of
PDAS Shapiro's meeting with Vice President Garcia Linera and
with indigenous leaders. End summary.

--------------
Environmental Anti-Coca Project
--------------

2. (SBU) Ambassadors Shapiro and Goldberg met with La Paz
Prefect Jose Luis Paredes to discuss Paredes's views of the
challenge of coca in his department. Paredes also presented
a comprehensive plan to control the influx of precursors, to
expand the La Paz Department's capacity to disseminate
educational information about illicit coca, and the creation
of a system to tighten controls on the sale of coca leaves to
reduce the amount used in narco-trafficking. Paredes argued
this program could also be used to reduce pesticides used to
grow coca and promote organic coca for commercial markets.
Given the GOB's support for coca rationalization, Paredes
claimed the fight against cocaine production should change
focus to control chemical precursors used to make cocaine.
NAS Director William Francisco was present at the briefing,
and offered to take the proposal under consideration.

--------------
Vice Minister Caceres
--------------

3. (SBU) Vice Minister for Social Defense Felipe Caceres
next met with Ambassadors Shapiro and Goldberg to review and
defend the GOB's efforts to combat narco-trafficking without
resorting to forcible interdiction. Shapiro shared his
concerns with Caceres regarding the rising number of coca
farmers and increased production of coca in the Yungas. In
response, Caceres defended the GOB,s efforts, arguing that
the reality of Bolivian coca cultivation was that the GOB has
never, under any circumstances, gotten the quantity of legal
coca below 20,000 hectares. Shapiro replied that failure to
achieve a goal did not invalidate the goal. Given the
reality that more coca production invariably meant more
cocaine, it was essential for the GOB to keep up the fight
against coca production that exceeds Bolivia's minor market
for licit coca.

--------------
El Alto Maceration Pit
--------------

4. (U) To witness the rapid pace with which cocaine is
beginning to be produced in urban areas, Ambassadors Shapiro
and Goldberg together with Vice Minister Caceres toured a
maceration pit inside a house in an El Alto suburb and
reviewed anti-narcotics efforts in La Paz. Guided by
Bolivian anti-narcotics police (FELCN) officials, FELCN
Colonel Miquel Vasquez told Ambassadors Shapiro and Goldberg
that cocaine production in urban areas is a new dynamic in
narco-trafficking in Bolivia. Vasquez explained the FELCN is
beginning to see increased cocaine production activity in
urban areas, especially in the poor city of El Alto, which

LA PAZ 00003295 002 OF 003


Vasquez attributed to the narco-trafficker,s desire to hide
illicit activity among the hustle and bustle of urban areas
as opposed to isolated areas within Bolivia's jungles.

--------------
La Rinconada
--------------

5. (U) Ambassadors Goldberg and Shapiro visited La
Rinconada, a U.S.-supported counter-narcotics facility
located on the main highway between La Paz and the Yungas.
The Ambassadors toured the facility, used to detect, seize,
and detain individuals attempting to traffic drugs from the
Yungas to La Paz. The Ambassadors also reviewed the FELCN's
organizational structure and its counter-narcotics strategy.
On the way back to La Paz, they paused outside the "licit"
coca market in Villa Fatima, where they saw workers loading
pickups with bundles of dried coca leaves.

-------------- --
Dinner with Analysts, Opinion-Makers, and Media
-------------- --

6. (U) Ambassador Goldberg hosted a dinner in honor of PDAS
Shapiro and Senior Advisor Tamburri with noted political
analysts and opinion makers. Guests represented both sides
of the political spectrum. Conversation was lively and
covered a broad range of views. Guests were of the general
consensus that Morales would issue a decree that evening to
deal with land reform. (NOTE: The Bolivian Senate actually
convened while dinner was in progress and pass the new INRA
law.) Two analysts generally noted for their pro-government
opinions provided rather benign interpretations of current
events, while other guests were more skeptical of government
motivations. All agreed that President Morales possesses a
very adept public relations team.

--------------
Meeting with Vice President Garcia Linera
--------------

7. (C) Ambassadors Shapiro, Goldberg, and Senior Advisor
Tamburri met with Vice President Garcia Linera to lay down
strong markers on the need to curtail coca production and the
importance of respecting Bolivia's democratic traditions.
Reftel covers that meeting in more depth.

--------------
Nueva Esperanza and El Alto Business Hub
--------------

8. (U) To review the impact of ATPDEA, Ambassadors Goldberg
and Shapiro visited Nueva Esperanza, a USAID-supported
woman-owned embroidery export business in El Alto. The
Ambassadors toured the facility and were briefed on the
challenges the women faced before receiving USAID financial
and technical assistance to take advantage of ATPDEA trade
preferences to export their products to the United States.
Explaining that their business is completely self-sufficient,
the owners explained how USAID and ATPDEA preferences gave
them the opportunity to own their business as well as provide
permanent employment for the surrounding community. As a
follow-up to Nueva Esperanza, the Ambassadors attended a
presentation at a USAID-sponsored business development center
to learn how technical assistance is provided to businesses
like Nueva Esperanza and traditionally marginalized and
impoverished groups.

--------------
USAID Mini-Exposition
--------------

9. (U) Shapiro attended a USAID Mini-Exposition that
highlighted USAID activities under the Food Security,
Democracy, and Integrated Alternative Development programs.
Shapiro was briefed on how USAID assistance is helping to

LA PAZ 00003295 003 OF 003


expand democracy initiatives, generate income and employment,
improve access to justice for the poor, and increase civic
participation through election observation. Shapiro
concluded the event with a roundtable discussion that
highlighted the social development of Bolivia,s
traditionally marginalized communities through USG assistance
and what issues remain to be confronted.

--------------
COMMENT
--------------

10. (C) Shapiro and Tamburri's two-day visit provided them
with broad exposure to the wide range of activities
undertaken by USAID in support of the poorest and the most
marginal residents of the slums of La Paz. Perhaps more
importantly, the visit highlighted the intense interest of
these Bolivians in renewal of ATPDEA trade preferences, which
are seen by many in El Alto as the key to their economic
future. For more reporting on Ambassador Shapiro's exchanges
with Vice President Garcia Linera on democracy, coca, trade,
and aid, see reftel. End Comment
URS