GOB DEFENDS MCC IN THE PRESS

UNCLAS SECTION 01 OF 02 LA PAZ 000731 SIPDIS SIPDIS STATE FOR WHA/AND TREASURY FOR SGOOCH MCC FOR AKIRSCHENBAUM E.O. 12958: N/A TAGS: EAID ECON BL SUBJECT: GOB DEFENDS MCC IN THE PRESS -------------- Summary -------------- ¶1. (SBU) On March 14, a respected opposition-leaning La Paz newspaper claimed that Bolivia had lost the USD 600 million that it hoped to gain from the Millennium Challenge Corporation (MCC). The following day, the paper published interviews with Ambassador Goldberg and Bolivia's MCC coordinator correcting the record, as well as a statement from President Morales in which he accused the newspaper of lying about MCC and half-jokingly suggested that the press should be nationalized. End summary. -------------- "USD 600 Million Lost" -------------- ¶2. (U) On March 14, La Paz newspaper La Razon published an article claiming that Bolivia had lost the USD 600 million that it hoped to gain from the Millennium Challenge Corporation (MCC),as it did not figure in the Corporation's 2007 or 2008 plans. The article was based on Ambassador Danilovich's testimony to Congress which named a list of countries likely to be ready to sign compacts in 2007 and 2008 that did not include Bolivia. -------------- No -- Not Lost -------------- ¶3. (SBU) On March 15, La Razon published interviews with Ambassador Goldberg and Bolivia's MCC Coordinator Graciela Toro that clarified the matter. Without commenting on Bolivia's pretensions to the sum of USD 600 million, the Ambassador noted that it remains theoretically possible for Bolivia to sign an agreement with MCC in 2008, noting that there are still many steps to complete before reaching that point. Toro explained that Bolivia was declared eligible by MCC to compete for funds again in November and was in the process of revising the original proposal submitted in December 2005. Toro, who finalized contracts with a technical team of approximately ten people in February, is working with her team to create a revised USD 1 billion proposal with two elements, a northern road corridor and investments for productive projects in the northern region. She told the press that her team is working towards signing a compact with MCC in early 2008. Toro and two members of her technical team will travel to Washington on March 17 to attend an MCC conference and have separate meetings with MCC regarding a preliminary proposal draft. -------------- President Morales Calls La Razon a Liar -------------- ¶4. (SBU) On March 15, respected, opposition-leaning La Paz daily La Razon also published a statement from President Morales that accused the newspaper of lying about MCC and about facts surrounding the hydrocarbons nationalization. Morales said that he would "let the people judge" La Razon, after he half-jokingly suggested that maybe the Spanish-owned press should be nationalized. Regarding MCC, he said that Bolivia has not been discarded from the list of MCC-eligible countries. He added that Bolivia "is still on the road to an agreement. It's true that there are some areas in which we must advance, but to say that the country has lost is false." The Minister of the Presidency Juan Ramon Quintana reportedly said that the GOB is working to access MCC resources, but that it is also working in parallel to find other sources of financing for the northern infrastructure LA PAZ 00000731 002 OF 002 projects. GOLDBERG