REPRESENTATIVE LOWEY VISITS BOLIVIA AND MEETS WITH

UNCLAS LA PAZ 000597 SIPDIS SENSITIVE SIPDIS STATE FOR WHA/AND TREASURY FOR SGOOCH ENERGY FOR CDAY AND SLADISLAW STATE FOR H/CNORMAN E.O. 12958: N/A TAGS: PREL PGOV EAID ECON SNAR ETRD USTR BL SUBJECT: REPRESENTATIVE LOWEY VISITS BOLIVIA AND MEETS WITH MORALES ¶1. (SBU) Summary: Representative Nita Lowey (D-NY) accompanied by House Appropriations Clerk Nisha Desai and State Department Congressional Liaison Cherith Norman, visited La Paz and Santa Cruz February 23-25. The delegation met with President Morales who complained about the 2004 visa revocation of a MAS Senator, asked for the extension of existing trade benefits, and argued for the immediate extradition of former President Gonzalo Sanchez de Lozada. The group also discussed women's representation in Bolivian politics with women legislators, met with NGO representatives, visited two USAID sites in El Alto where they viewed microfinance and indigenous youth training projects in operation, and attended a reception at the Charge's residence. In Santa Cruz, the delegation was briefed on counternarcotics and alternative development strategies, visited a USAID-supported furniture factory working with certified lumber, and met with regional business, political, and religious leaders. Representative Lowey, a strong proponent of foreign aid, appreciated the opportunity to see how U.S. aid dollars are being spent in Bolivia and commented on the success of USAID's programs and the importance of economic development for Bolivian families. She encouraged business leaders to find a way to work with the GOB and to partner with USAID and NGOs to leverage development funds and improve Bolivia's future. End summary. Visits to USAID Projects and with Congressional Representatives -------------- -------------- ¶2. (U) Representative Nita Lowey (D-NY) accompanied by House Appropriations Clerk Nisha Desai and State Department Congressional Liaison Cherith Norman, visited La Paz and Santa Cruz February 23-25. The delegation met with women parliamentarians from three political parties to discuss the participation of women in Bolivian politics. Representative Lowey noted that the number of women in the Bolivian parliament had declined with the last election, and encouraged the women to work together across party lines to increase women's political participation and to promote better lives for Bolivian families. In a lunch with various NGOs, Representative Lowey noted that she was a strong supporter of USAID, but encouraged the NGOs to leverage private funds instead of relying mainly on U.S. aid. The NGO representatives agreed that they must expand donor outreach efforts, but also noted that important USG programs, such as Title II Food Aid, enabled them to reach vast areas of Bolivia and respond to emergencies, such as recent floods which will impact families for the next nine months due to crop losses. The delegation then visited Promujer, a USAID-funded microfinance and health NGO which provides services to more than 64,000 women, and an indigenous youth training center funded by USAID which provides vocational and leadership training to youth in two of the poorest areas of El Alto. Meeting with Morales -------------- ¶3. (SBU) Representative Lowey, Charge Robinson and Embassy officials met February 25 with President Evo Morales and Minister of the Presidency Juan Ramon de la Quintana. Lowey congratulated Morales on his convincing electoral victory and emphasized the U.S. interest in helping his government succeed. Morales thanked Lowey for her kind words. He continued by reporting on his recent meeting with Bolivian private sector representatives in which they agreed to cooperate to create jobs and fight corruption. Morales noted that, thanks to the MAS party, there was no Shining Path or FARC in Bolivia, because the MAS responded to the needs of the people. He lamented that in the past "the White House" has accused the MAS of many things, including receiving money from Libya, Venezuela, Cuba, the FARC, and narcotraffickers. ¶4. (SBU) Morales expressed concern and regret about the recently resurfaced 2004 visa revocation of MAS (substitute) Senator Lucilda Zurita. Visibly upset, he stated his hope that this revocation was a bureaucratic mistake made by lower level officials in the U.S. Government. Lowey observed that this was a consular issue and not a matter handled by the U.S. Congress. Morales replied that, as Congressmen, "we have the responsibility to control our Executive branch." He noted how politicians associated with former president Jaime Paz Zamora and who were convicted of narcotrafficking had their visas reinstated. ¶5. (SBU) On coca, Morales told Representative Lowey that it was important to understand that coca in its natural state was not harmful, and cited unspecified studies from the World Health Organization to back his claim. "How can coca be OK for Coca-Cola and not for the Andes and others?" he asked. Morales assured that his government did not promote unrestricted coca growth, but did hope to allow coca growers to have small plots to cultivate this traditional crop. The President wanted to fight narcotrafficking and expressed appreciation for alternative development assistance. ¶6. (SBU) Turning to the Constituent Assembly, Morales observed that the Bolivian people wanted peaceful democratic change. "We're talking about refounding Bolivia. People want to recover their natural resources." As an example, he continued, Potosi possessed significant mineral resources, "but with so much wealth, so much poverty." He hoped Bolivia would be forgiven its debt with the World Bank. Lowey reminded the President that the USG had already forgiven Bolivia's bilateral debt years ago. In Morales' first mention of trade issues, he said it was important for Bolivia to maintain its current trade benefits with the U.S. (though not mentioning ATPDEA by name). Morales also regretted that the (then) pending conclusion of the Colombia-U.S. FTA negotiations would negatively impact Bolivia's soy exports and threaten existing regional agreements. ¶7. (SBU) In an abrupt negative turn in tone, Morales said that the GOB would never break relations with the U.S., "but I won't be subject to conditionalities or blackmail, because we have our dignity. The USG cannot say that they accept or do not accept the appointment of certain ministers, vice-ministers, or military commanders." Lowey agreed that with mutual respect and understanding, our bilateral relationship could move forward. Morales replied that threatening the sovereignty of a nation was unacceptable. He concluded that former President Gonzalo Sanchez de Lozada should be extradited to Bolivia and that the U.S. should not harbor criminals who violate human rights. Santa Cruz Provides A Somewhat Different Perspective -------------- -------------- ¶8. (U) In Santa Cruz, the delegation visited a furniture factory that utilizes certified wood from a USAID-supported Bolivian sustainable forestry project to build doors and garden furniture for export. The delegation then met with leaders of Santa Cruz business chambers, banks, business owners, and a senator, who provided the delegation with a viewpoint that was significantly less rosy than the prevailing attitude in La Paz. The business leaders lamented that they could not find common ground with the Morales administration, which lacks a clear policy but seems intent on reducing the role of the private sector. The business leaders explained that they want to focus on investment, job creation, and poverty reduction, but find themselves at odds with the GOB on those goals. They stated that their economic model had successfully reduced poverty in Santa Cruz (where the poverty rate is 38% compared with a national rate of 59%),but that the GOB was against their model. The business leaders feared that the GOB intended to consolidate power through the constituent assembly and then install a new economic model in which the state would play a major planning role. Because of the negative economic signals sent thus far by the GOB, business leaders explained that investment is currently at 11% of production, rather than the 15 to 18% needed to maintain economic growth of 4% of GDP. Representative Lowey asked if the Santa Cruz business community could find a constructive way to work with the GOB to reduce poverty. The business leaders responded that the GOB does not think it needs the business community, although Santa Cruz department provides 45% of national taxes. Thus, Santa Cruz is focusing its efforts on achieving regional autonomy, rather than working with the central government. ¶9. (U) Comment: Congresswoman Lowey in two full days was able to view firsthand the diversity and ambiguities of Bolivia. She witnessed the impact of USG assistance programs and engaged numerous Bolivian elected officials on issues ranging from economic development to human rights. Her message encouraging the development of Bolivian democracy and a productive U.S.-Bolivian bilateral relationship were well-received. Morales, upset by the visa revocation of his close political ally, was certainly more combative and less warm then during previous meetings with the Ambassador. End comment. ¶10. (U) The Congressional delegation did not have an opportunity to clear this report. GREENLEE