Identifier
Created
Classification
Origin
06SANTIAGO909
2006-05-03 19:06:00
UNCLASSIFIED
Embassy Santiago
Cable title:  

MEDIA REACTION - BOLIVIA

Tags:  OPRC KMDR KPAO CI BL 
pdf how-to read a cable
VZCZCXYZ0008
RR RUEHWEB

DE RUEHSG #0909 1231906
ZNR UUUUU ZZH
R 031906Z MAY 06
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 9024
RUEHLP/AMEMBASSY LA PAZ 4598
UNCLAS SANTIAGO 000909

SIPDIS

SIPDIS

STATE FOR IIP/G/WHA, INR/R/MR, WHA/BSC, WHA/PDA, INR/IAA

AMEMBASSY FOR PAO/IO

E.O. 12958: N/A
TAGS: OPRC KMDR KPAO CI BL
SUBJECT: MEDIA REACTION - BOLIVIA


On May 3, conservative, influential newspaper-of-record "El
Mercurio" (circ. 116,807) carried an editorial entitled, "The Costs
of Bolivia's Nationalization." Quote:

"Nationalization favors Evo Morales' popularity, but creates a
problem in attracting foreign investment; uncertainty in the supply
of gas for Argentina, Brazil, and Chile; directly affects Bolivia's
bilateral relations with Europe and the two main South American
economies; directly discourages foreign investment in Latin America;
and affects Peru's presidential campaign, since the Peru's ties
between Bolivia and Venezuela have deteriorated due to the
intervention of both presidents in Peru's internal affairs. What
has happened in Bolivia has also domestic and external consequences
for Chile, beyond the issue of energy. Evo Morales' radicalization
proves right those who called for caution in the bilateral dialogue
and discourages those who believed that the Bolivian president would
be more moderate in fulfilling international commitments."

On May 3, conservative, independent "La Tercera" (circ, 102,000)
carried an editorial entitled, "Bolivia and the South American
Axis." Quote:

"The region is increasingly divided in two fronts with opposing
visions, styles, and interests.... One of the axes, articulated by
Venezuela but notoriously inspired by Cuba's experience, tactics,
and strategy, has added Bolivia to its realm of influence. This is
key to understanding the tone and moment at which Morales decreed
the nationalization of Bolivia's gas reserves.... The other front
includes Chile and Colombia and is led by Brazil, which has enormous
leverage and thus the natural moderator role in the region....
Despite Brazil's influence and interests in Bolivia...it was unable
to prevent La Paz from aligning with Caracas and Havana.... The
events in Bolivia...are for starters a tombstone for any expectation
of regional integration but above all a strong signal of the support
the Bolivian president has and, therefore, of the path he is likely
to take on other issues.... The Bolivian president...is clearly not
part of any moderation process."

On May 3, center-left "Diario Siete" (circ. 23,000) carried an
editorial entitled, "Nationalization of Gas in Bolivia." Quote:

"The decision symbolizes Bolivia's desire to regain honor and is
tied to the idea of settling accounts with foreign companies....
The question is what happens now... Thus far Morales has generated
sympathy and goodwill in many parts. Now doubts may surface as to
what can be expected of his administration in the area of
guaranteeing foreign investment.... It is too early to have a final
opinion on the scope of Morales' audacious decision. We will have
to wait and see what happens with the companies affected by this
decision and observe Bolivia's ability to show that the decision
favors its future."

KELLY