Identifier
Created
Classification
Origin
06LAPAZ3312
2006-12-07 18:22:00
CONFIDENTIAL
Embassy La Paz
Cable title:
MORALES REPEATS VOWS TO NATIONALIZE FORESTRY,
how-toVZCZCXYZ0000 RR RUEHWEB DE RUEHLP #3312 3411822 ZNY CCCCC ZZH R 071822Z DEC 06 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC 1583 INFO RUEHAC/AMEMBASSY ASUNCION 6363 RUEHSW/AMEMBASSY BERN 0124 RUEHBO/AMEMBASSY BOGOTA 3687 RUEHBR/AMEMBASSY BRASILIA 7553 RUEHBU/AMEMBASSY BUENOS AIRES 4807 RUEHCV/AMEMBASSY CARACAS 2059 RUEHPE/AMEMBASSY LIMA 2132 RUEHMD/AMEMBASSY MADRID 3216 RUEHME/AMEMBASSY MEXICO 1955 RUEHMN/AMEMBASSY MONTEVIDEO 4257 RUEHNE/AMEMBASSY NEW DELHI 0069 RUEHQT/AMEMBASSY QUITO 4696 RUEHSG/AMEMBASSY SANTIAGO 9281 RUEHKO/AMEMBASSY TOKYO 0267 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHC/DEPT OF INTERIOR WASHINGTON DC RHEHNSC/NSC WASHINGTON DC
C O N F I D E N T I A L LA PAZ 003312
SIPDIS
SIPDIS
STATE FOR WHA/AND LPETRONI
STATE PASS TO DEPT OF AGRICULTURE
USAID/LAC FOR AFRANCO, MSILVERMAN, RLOUDIS, AND JBISSON
USAID/EGAT FOR CJELRON, ANE FOR JWILSON
USDA/FS FOR AMOAD
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: DECL: 12/06/2016
TAGS: EMIN EINV ECON PREL PGOV BL
SUBJECT: MORALES REPEATS VOWS TO NATIONALIZE FORESTRY,
MINING
REF: A. LA PAZ 2431
B. LA PAZ 2780
C. LA PAZ 2976
D. LA PAZ 3032
E. LA PAZ 3161
Classified By: Charge d'Affaires Krishna R. Urs for reason 1.4 (d).
C O N F I D E N T I A L LA PAZ 003312
SIPDIS
SIPDIS
STATE FOR WHA/AND LPETRONI
STATE PASS TO DEPT OF AGRICULTURE
USAID/LAC FOR AFRANCO, MSILVERMAN, RLOUDIS, AND JBISSON
USAID/EGAT FOR CJELRON, ANE FOR JWILSON
USDA/FS FOR AMOAD
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: DECL: 12/06/2016
TAGS: EMIN EINV ECON PREL PGOV BL
SUBJECT: MORALES REPEATS VOWS TO NATIONALIZE FORESTRY,
MINING
REF: A. LA PAZ 2431
B. LA PAZ 2780
C. LA PAZ 2976
D. LA PAZ 3032
E. LA PAZ 3161
Classified By: Charge d'Affaires Krishna R. Urs for reason 1.4 (d).
1. (U) Echoing past declarations, President Morales vowed
December 5 to "recover" Bolivia's forests for the state and
"nationalize" the mining industry in 2007. The announcement
paralleled past threats to Bolivia's forests (ref A) and
mineral resources (refs B and C).
2. (C) Comment: Morales' most recent threats will likely have
no more immediate impact than those of the past. His
announcement of an impending mining "nationalization" may
further needle investors, but it is best viewed not so much
as a reason to panic, but as further evidence of the GOB's
policy incoherence, as it contradicts mid-November assurances
from Minister of Mining Jose Dalence and other GOB officials
that the government has no plans to nationalize the mining
industry (refs D and E). This is not to say, however, that
Morales will not eventually act. Experience in the
hydrocarbons sector has shown that the president will follow
through in at least a limited way on "nationalization" plans,
and some change to the mining code and existing tax and
royalty structures seems inevitable.
3. (C) Comment continued: Morales' announcement of plans to
"recover" forestry resources for the state should likewise be
treated as a threat with little immediate impact. Backed by
few concrete plans, it is likely little more than a statement
delivered in the context of the GOB's usual populist
rhetoric; it actually contradicts provisions of the November
28 land reform bill, which took steps to ensure respect for
existing forestry concessions. But again, this is not to say
Morales will not eventually act; if he does, he could
undermine one of Bolivia's few success stories, putting at
risk ten years and $35 million of USAID assistance and
threatening the country's position as the world leader in
certified natural tropical forests (ref A). We will continue
to monitor Morales' public statements for signs of hardening
intentions toward either sector. End comment.
URS
SIPDIS
SIPDIS
STATE FOR WHA/AND LPETRONI
STATE PASS TO DEPT OF AGRICULTURE
USAID/LAC FOR AFRANCO, MSILVERMAN, RLOUDIS, AND JBISSON
USAID/EGAT FOR CJELRON, ANE FOR JWILSON
USDA/FS FOR AMOAD
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: DECL: 12/06/2016
TAGS: EMIN EINV ECON PREL PGOV BL
SUBJECT: MORALES REPEATS VOWS TO NATIONALIZE FORESTRY,
MINING
REF: A. LA PAZ 2431
B. LA PAZ 2780
C. LA PAZ 2976
D. LA PAZ 3032
E. LA PAZ 3161
Classified By: Charge d'Affaires Krishna R. Urs for reason 1.4 (d).
1. (U) Echoing past declarations, President Morales vowed
December 5 to "recover" Bolivia's forests for the state and
"nationalize" the mining industry in 2007. The announcement
paralleled past threats to Bolivia's forests (ref A) and
mineral resources (refs B and C).
2. (C) Comment: Morales' most recent threats will likely have
no more immediate impact than those of the past. His
announcement of an impending mining "nationalization" may
further needle investors, but it is best viewed not so much
as a reason to panic, but as further evidence of the GOB's
policy incoherence, as it contradicts mid-November assurances
from Minister of Mining Jose Dalence and other GOB officials
that the government has no plans to nationalize the mining
industry (refs D and E). This is not to say, however, that
Morales will not eventually act. Experience in the
hydrocarbons sector has shown that the president will follow
through in at least a limited way on "nationalization" plans,
and some change to the mining code and existing tax and
royalty structures seems inevitable.
3. (C) Comment continued: Morales' announcement of plans to
"recover" forestry resources for the state should likewise be
treated as a threat with little immediate impact. Backed by
few concrete plans, it is likely little more than a statement
delivered in the context of the GOB's usual populist
rhetoric; it actually contradicts provisions of the November
28 land reform bill, which took steps to ensure respect for
existing forestry concessions. But again, this is not to say
Morales will not eventually act; if he does, he could
undermine one of Bolivia's few success stories, putting at
risk ten years and $35 million of USAID assistance and
threatening the country's position as the world leader in
certified natural tropical forests (ref A). We will continue
to monitor Morales' public statements for signs of hardening
intentions toward either sector. End comment.
URS