BOLIVIA'S NEW "PEACEFUL" RELATIONS WITH IRAN/LIBYA

C O N F I D E N T I A L SECTION 01 OF 03 LA PAZ 002626

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/28/2017
TAGS: ECON PARM PGOV PREL KNNP MNUC IAEA UN IR BL
SUBJECT: BOLIVIA'S NEW "PEACEFUL" RELATIONS WITH IRAN/LIBYA

REF: A. LA PAZ 2587

B. LA PAZ 2525

C. LA PAZ 2510

D. LA PAZ 2500

Classified By: EcoPol Chief Mike Hammer for reasons 1.4 (b) and (d)


1. (C) Summary: With the visit of Iranian President Mahmoud
Ahmadinejad and signing of $1.1 billion in cooperation
agreements September 27, Bolivia and Iran have fundamentally
deepened both their commercial and political relationship.
In his signing ceremony speech, Morales emphasized Bolivia's
right to establish relations with whatever country it wanted,
the right to natural resources and technology, and the "false
peace" perpetrated by leading world powers. Foreign Ministry
contact told poloff September 25 the government will continue
to stress publicly the economic benefits of the relationship,
although the core motive is a symbolic distancing from U.S.
foreign policy. He added the opposition will use its
congressional role for approving Ambassadors to argue against
formal relations. Bolivian Government leaders also announced
September 25 a "gradual" establishment of diplomatic
relations with Libya over the next few months and appear to
have embraced a political relationship with Iran, in contrast
to earlier claims the relationship would be confined to
commercial sectors. End Summary.

Morales Assures &Peaceful8 Iranian Relations
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2. (U) Bolivian President Evo Morales and Iranian President
Mahmoud Ahmadinejad cemented their intention to establish
full diplomatic relations during a September 27 signing
ceremony for three commercial agreements and a joint
declaration. The agreements pledge a total of $100 million
in projects for technological cooperation and increased trade
in the hydrocarbon, agriculture, and manufacturing sectors
and a vague promise for $1 billion over 5 years in industrial
cooperation, although it is not clear whether this is
investment, assistance, or some combination. Although
Morales stressed economic and commercial development and
assured the "international community that we are oriented
toward peace," he also provided gist for doubt about
Bolivia's intentions regarding Iran's nuclear program. He
said all countries have the right to natural resources,
justice, knowledge, and technology. The joint declaration
asserts the right of "peaceful development" of energy to all
countries, but "not in the use of arms."

Viva Bolivia, Viva Iran Lovefest
--------------


3. (U) Amid hugs, fist pumping, and intermittent cries from
the crowd of "viva Bolivia, viva Iran," President Morales and
President Ahmadinejad spoke at length about the emerging
friendship between the two peoples. "I say in a loud voice,
we will always be at the side of the Bolivian people,"
asserted Ahmadinejad, who added the two countries should not
let "any obstacle" get in the way of improving the lives of
their peoples. Morales thanked Iran for "working without
limits with Bolivia" and, in a swipe to critics of the new
relationship, asserted "we have every right to improve our
economy with relations with all the world." Morales asserted
Bolivia would continue to build diplomatic and commercial
inroads throughout the world, including the Middle East. The
joint declaration calls for other Latin American countries to
join Bolivia and Iran to offer an alternative to
"neoliberalism." Morales also argued that "great powers
should not demand (compliance from other countries) for that
which they do not themselves comply" and made multiple
references to Bolivia's culture of peace and dialogue.

FM Source: Iranian Relations "All About the U.S."
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4. (C) A Foreign Ministry source told poloff September 25
that Iranians in Bolivia have been working on the Ahmadinejad

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visit for about three months. He described the "vague"
cooperation agreements as an excuse to bring Ahmadinejad to
La Paz and show Bolivia's independence from U.S. foreign
policy. He predicted the government would publicly emphasize
the commercial, but this is "all political" and "all about
the U.S." He said the Foreign Ministry advised against a
diplomatic relationship with Iran, but their report was
discarded by palace advisors and Morales "sees no downside to
establishing relations."

Senate Ambassadorial Approval/Future Relations:
Watch This Space
-------------- --


5. (C) Although the executive has the power to establish
diplomatic relations without consent of congress, Foreign
Ministry source predicted the opposition-controlled senate
would make a case against relations when it is called upon to
approve the eventual Bolivian Ambassador to Iran. When asked
about future relations with other rouge regimes, he ruled out
Syria and North Korea, who have "nothing to offer."
(Comment: GOB officials had discounted Iranian relations
until recently. End Comment.)

GOB/Opposition Pressing the Press
--------------


6. (U) Bolivian Government officials have frenetically
advanced their Iran policy to both the international and
domestic media this week, seeking to clarify and calm
international skeptics on one hand, while maintaining a core
message of defiance to the U.S. Officials have tried to
clarify that Bolivia supports only the "peaceful" development
of Iran's nuclear program, not development of weapons or
"policies against life." In what has since become the
leading government talking point, Morales said September 25,
"We are opening relations with Iran not to hurt or offend
anyone, only to improve the economic situation of the
country."


7. (U) In a BBC interview September 26, Morales said it is a
matter of sovereignty that countries have diplomatic
relations, not a matter for third countries to decide. "We
are not ever breaking relations with the U.S. and we have
relations with Iran even though some politicians and
journalists do not like it." When asked to explain why
Bolivia is ignoring international concern by opening
relations with Iran, Morales responded, "I do not tell you
who you can interview."


8. (U) Morales told CNN September 26 that the new
relationship is not intended to "offend" or endorse hostile
acts. "There will never be (Bolivian) agreements to attack
anybody, to offend anybody, to implement interventionist
policies of death " because we belong to the culture of life
we want to complement ourselves with Iran in search of
solutions." Morales explained relations with Iran and Libya
would not lead to a break in relations with the U.S. because
Bolivia belongs to a "culture of dialogue." He added, "We
will bear the criticisms."


9. (U) In statements to the domestic press September 26, MAS
leaders shifted tone from the old emphasis on commercial
relations to admitting and embracing a political relationship
with Iran. Vice President Alvaro Garcia Linera said the new
relationship was prompted by a "political agenda," but
explained "all diplomatic relations have a political
component" (La Prensa). MAS Senator Gaston Cornejo projected
a deep relationship with Iran, describing an "alternative
block (of countries) against the U.S. with great reserves of
non-renewable natural resources." The Bolivian Senate
Foreign Relations Committee member envisioned the "circle of
countries" to include Bolivia, Iran, Venezuela, Ecuador, and
Cuba (La Prensa)(Note: other leaders include Libya as well.
End Note). MAS Deputy Gustavo Torrico said September 26 that
Iran wants Bolivia's "friendship" in order to bolster its
position in the UN against "a U.S. scheme to submit it to

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international isolation" (La Razon). Opposition politicians
accused the government of aligning Bolivia with a rouge
regime with links to terrorism and nuclear arms development.
Ahmadinejad's visit was also criticized by businessmen and
press editorials, particularly in Santa Cruz, where El
Mundo's September 26 cover has the Iranian President's photo
superimposed with an anti symbol.

What the Cat Drug In: Libya Next Rouge Relation
-------------- --


10. (U) Presidential Minister Juan Ramon Quintana announced
September 25 that Libya and Bolivia will pursue "in a gradual
manner over the next few months" diplomatic relations and
economic cooperation. The announcement follows a September
24 meeting of delegations along the margins of the UNGA,
including President Morales and Libyan Foreign Minister
Abdurrahman Mohammed Shalgam. Both countries will exchange
"technical" delegations in the coming weeks to explore areas
of potential cooperation, such as brining Libyan
petrochemical expertise to Bolivia and exporting Bolivian
agricultural products to Libya. Bolivian media seemed
alarmed about relations with another regime linked to
terrorism following the September 11 announcement of
diplomatic ties with Iran.

Comment
--------------


11. (C) Comment: Morales' speech had seemingly contradictory
objectives of reassuring an alarmed international community
of his commitment to peace and dialogue while simultaneously
supporting the right of Iran to pursue "peaceful" nuclear
technology. Evo refrained from attacking the U.S. by name
and continues to assert a commitment to maintaining
relations. However, broad criticisms of great powers, the
"false peace" of the existing world order, and the rights of
the marginalized to resources and knowledge are obviously
aimed at Uncle Sam. Evo appears to believe he can manage the
consequences of these new relationships and walk the
rhetorical tightrope that a commitment to "peace" and a
friendship with Iran will require. It is unclear if this
schizophrenic discourse is the product of sincere navet or
a cynical double game.


12. (C) Despite an alleged Bolivian Government aversion to
"policies of death," it has not supported UN resolutions or
compliance with IAEA inspections regarding Iran's nuclear
program (refs a and c). Morales' reference to the right to
have relations with Iran is a straw man, as no one is arguing
against this right. The insinuation that Evo is standing up
to U.S. pressure in advancing relations with Iran, however,
works to energize his base. End Comment.
GOLDBERG