Identifier
Created
Classification
Origin
07LAPAZ363
2007-02-09 11:54:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:
GOB, MINERS' COOPERATIVES SIGN AGREEMENT
how-toVZCZCXYZ0000 RR RUEHWEB DE RUEHLP #0363/01 0401154 ZNR UUUUU ZZH R 091154Z FEB 07 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC 2418 INFO RUEHAC/AMEMBASSY ASUNCION 6517 RUEHBO/AMEMBASSY BOGOTA 3841 RUEHBR/AMEMBASSY BRASILIA 7725 RUEHBU/AMEMBASSY BUENOS AIRES 4969 RUEHCV/AMEMBASSY CARACAS 2210 RUEHPE/AMEMBASSY LIMA 2302 RUEHMD/AMEMBASSY MADRID 3305 RUEHMN/AMEMBASSY MONTEVIDEO 4391 RUEHNE/AMEMBASSY NEW DELHI 0102 RUEHQT/AMEMBASSY QUITO 4853 RUEHSG/AMEMBASSY SANTIAGO 9441 RUEHKO/AMEMBASSY TOKYO 0282 RUEHUB/USINT HAVANA 0131 RHMFIUU/HQ USSOUTHCOM MIAMI FL RUMIAAA/USCINCSO MIAMI FL RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHC/DEPT OF INTERIOR WASHINGTON DC RUEHC/DEPT OF LABOR WASHINGTON DC RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 000363
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PREL PGOV BL
SUBJECT: GOB, MINERS' COOPERATIVES SIGN AGREEMENT
REF: A. LA PAZ 334
B. 06 LA PAZ 2860
-------
SUMMARY
-------
UNCLAS LA PAZ 000363
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PREL PGOV BL
SUBJECT: GOB, MINERS' COOPERATIVES SIGN AGREEMENT
REF: A. LA PAZ 334
B. 06 LA PAZ 2860
--------------
SUMMARY
--------------
1. (U) Two days of protests (ref A) culminated February 7 in
a comprehensive agreement between the GOB and
cooperative-affiliated miners. The GOB backed away from
proposed mining tax increases -- putting them on hold until
all parties reach consensus -- and yielded to other demands,
agreeing to adhere to an earlier pact committing the GOB to
respect cooperatives' existing lease arrangements. Both
sides portrayed the agreement as a "reconciliation" and vowed
to try to avoid further conflict, but the deal drew criticism
from diverse quarters. End summary.
--------------
GOB, COOPERATIVES SIGN AGREEMENT
--------------
2. (U) Two days of increasingly violent protests (ref A)
culminated February 7 in a comprehensive agreement between
the GOB and cooperative-affiliated miners. The two sides
emerged from a five-and-a-half-hour meeting to announce that
the GOB had backed away from proposed mining tax increases --
putting them on hold until cooperatives, salaried miners, and
the government reach consensus -- and yielded to other
demands, including miners' insistence that the GOB adhere to
an earlier pact committing the government to respect
cooperatives' lease arrangements and traditional work areas.
3. (U) The GOB further agreed to establish a $10 million fund
to provide affordable credit, technical expertise, and
project development assistance; to allow two representatives
of miners' cooperatives to join the board of Comibol, the
state-owned mining company; to exercise greater state control
over mineral sales, to the benefit of cooperatives; and to
try to provide jobs to miners left without work after October
2006 conflicts at Huanuni (ref B).
--------------
BOTH SIDES HAIL "RECONCILIATION"
--------------
4. (U) Both sides portrayed the agreement as a
"reconciliation" and vowed to try to avoid further conflict.
Press reports indicate that National Federation of
Cooperative Miners (FENCOMIN) President Andres Villca
declared the pact a "work of good will" and expressed
satisfaction with the conflict's outcome, while President
Morales said the two sides had "reconciled" and "would work
together to avoid and resolve problems." Minister of Labor
Walter Delgadillo added that cooperative-affiliated miners
had agreed to renewed dialogue and were once again part of
the Morales administration's "great national project of
change."
--------------
COMMENT
--------------
5. (SBU) The government's acquiescence may have occurred more
quickly than many expected, but given threats of prolonged
demonstrations and potentially damaging nationwide road
blockades, GOB officials may have felt it in their best
interest to reach agreement quickly. The big question now is
what happens next, as brokering a multi-party agreement on
mining tax increases will be a significant challenge. The
deal was not popular on the Bolivian street or in the media,
with La Paz residents angry that the GOB ceded to what had
become a dangerous, hostile mob and the media wondering how
the next violent social protest by a special interest group
will be rewarded. End comment.
GOLDBERG
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PREL PGOV BL
SUBJECT: GOB, MINERS' COOPERATIVES SIGN AGREEMENT
REF: A. LA PAZ 334
B. 06 LA PAZ 2860
--------------
SUMMARY
--------------
1. (U) Two days of protests (ref A) culminated February 7 in
a comprehensive agreement between the GOB and
cooperative-affiliated miners. The GOB backed away from
proposed mining tax increases -- putting them on hold until
all parties reach consensus -- and yielded to other demands,
agreeing to adhere to an earlier pact committing the GOB to
respect cooperatives' existing lease arrangements. Both
sides portrayed the agreement as a "reconciliation" and vowed
to try to avoid further conflict, but the deal drew criticism
from diverse quarters. End summary.
--------------
GOB, COOPERATIVES SIGN AGREEMENT
--------------
2. (U) Two days of increasingly violent protests (ref A)
culminated February 7 in a comprehensive agreement between
the GOB and cooperative-affiliated miners. The two sides
emerged from a five-and-a-half-hour meeting to announce that
the GOB had backed away from proposed mining tax increases --
putting them on hold until cooperatives, salaried miners, and
the government reach consensus -- and yielded to other
demands, including miners' insistence that the GOB adhere to
an earlier pact committing the government to respect
cooperatives' lease arrangements and traditional work areas.
3. (U) The GOB further agreed to establish a $10 million fund
to provide affordable credit, technical expertise, and
project development assistance; to allow two representatives
of miners' cooperatives to join the board of Comibol, the
state-owned mining company; to exercise greater state control
over mineral sales, to the benefit of cooperatives; and to
try to provide jobs to miners left without work after October
2006 conflicts at Huanuni (ref B).
--------------
BOTH SIDES HAIL "RECONCILIATION"
--------------
4. (U) Both sides portrayed the agreement as a
"reconciliation" and vowed to try to avoid further conflict.
Press reports indicate that National Federation of
Cooperative Miners (FENCOMIN) President Andres Villca
declared the pact a "work of good will" and expressed
satisfaction with the conflict's outcome, while President
Morales said the two sides had "reconciled" and "would work
together to avoid and resolve problems." Minister of Labor
Walter Delgadillo added that cooperative-affiliated miners
had agreed to renewed dialogue and were once again part of
the Morales administration's "great national project of
change."
--------------
COMMENT
--------------
5. (SBU) The government's acquiescence may have occurred more
quickly than many expected, but given threats of prolonged
demonstrations and potentially damaging nationwide road
blockades, GOB officials may have felt it in their best
interest to reach agreement quickly. The big question now is
what happens next, as brokering a multi-party agreement on
mining tax increases will be a significant challenge. The
deal was not popular on the Bolivian street or in the media,
with La Paz residents angry that the GOB ceded to what had
become a dangerous, hostile mob and the media wondering how
the next violent social protest by a special interest group
will be rewarded. End comment.
GOLDBERG