MORALES THREATENS TO RULE BY PRESIDENTIAL DECREE

C O N F I D E N T I A L SECTION 01 OF 02 LA PAZ 002223 SIPDIS SIPDIS E.O. 12958: DECL: 08/13/2017 TAGS: ECON PGOV PREL BL SUBJECT: MORALES THREATENS TO RULE BY PRESIDENTIAL DECREE REF: LA PAZ 2205 Classified By: Ecopol Chief Mike Hammer for reasons 1.4 (b) and (d). -------------- SUMMARY -------------- ¶1. (C) Presidents Morales and Chavez, on the last stop of Chavez' official visit to Bolivia, announced the construction of a 100 megawatt hydro-electic plant in the Chapare on August 10. President Chavez told the crowd of several hundred hardcore Morales supporters that "the hour to liberate the Bolivian people from the damned perverse formula of capitalism and neoliberalism has arrived." President Morales, caught up in the euphoria standing next to Chavez, made his strongest statement yet rejecting democratic principles, saying that he would not let the law stand in his government's way and would use presidential decrees to push through change. End summary. -------------- EVO FOLLOWING CHAVEZ' SCRIPT . . . -------------- ¶2. (C) Venezuelan President Hugo Chavez' last act during his August 9-10 Bolivia visit (reftel) was the announcement of the construction of a 100 megawatt hydro-electric plant to be built in Entre Rios, Chapare area. There, Chavez told the crowd of several hundred hard core Morales supporters that "the hour to liberate the Bolivian people from the damned perverse formula of capitalism and neoliberalism has arrived, it is time to make Tupac Katari and Tupac Amaru's dreams real. Enough already, we have been waiting for too long for the birth of a new era, a new world. It is time to turn the damn formula upside down." President Morales then spoke and asked his government to advance his agenda through political decisions, without waiting for laws or amendments to be passed. Morales, threatening to impose change through presidential decrees, stated, "being subjected to the law is damaging ourselves; though they may say our decrees are unconstitutional, that does not matter. Ministers, I tell you we should not wait for the laws; we have to continue to work with political decisions and if they file lawsuits arguing our decrees are unconstitutional, it will be the people who will judge." Vice President Garcia Linera tried to walk back the President's comments and told the press on August 12 that the Bolivian government will push its change through a combination of decrees and working with the congress. -------------- BUT NOT GETTING HIS WAY -------------- ¶3. (C) Podemos Senator Rafael "Toto" Loaiza told Emboff that he believes Evo realizes the Constituent Assembly (CA) is in very real danger of failing and that the MAS will not be able to get the constitution it wants. Loaiza speculated that Morales will resort to presidential decrees as a means to push the MAS agenda through. Senator Loaiza added that the MAS is having many internal problems and does not have a clear plan to deal with the Constituent Assembly or its aftermath. -------------- COMMENT -------------- ¶4. (C) Evo's remarks in Entre Rios were his strongest yet rejecting democratic principles. Part of the explanation could be Morales' playing up to Chavez but part can be attributed to Evo's increasing frustration at the slow pace of the Constituent Assembly, increasing internal MAS LA PAZ 00002223 002 OF 002 bickering, and the realization that his long honeymoon with the Bolivian people is coming to an end. While Vice President Garcia Linera tried to downplay Evo's remarks, Morales words may shed light on the inner thinking of the President. End Comment. GOLDBERG