C O N F I D E N T I A L LA PAZ 000259

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/03/2017
TAGS: PGOV PREL KPAS EAID MGMT PINR BL
SUBJECT: SANTA CRUZ CALLS FOR MAY 4 VOTE ON AUTONOMY WHILE
EMBASSY INAUGURATES VPP SITE

REF: LA PAZ 150

Classified By: ECOPOL Counselor Mike Hammer for reason 1.4 (b) and (d).


1. (U) The Ambassador's January 31-February 1 visit to Santa
Cruz coincided with Prefect Ruben Costas' call for a
referendum on the Santa Cruz autonomy statute to be held on
May 4, 2008. The prefect and the departamental council
issued a resolution calling for the vote, and the
Constitutional Court must approve or negate the resolution
within eight days. Vice Minister for Coordination of Social
Movements and Civil Society Sacha Llorenti declared the
resolution illegal, arguing that referenda can only be
convoked by the Congress.


2. (C) Costas told the Ambassador that Santa Cruz was
determined to follow through, step by step, on its quest for
autonomy. He did not expect the national dialogue between
President Evo Morales and the nine departamental prefects to
achieve the desired results for the opposition: reversing the
cuts in hydrocarbon revenues (IDH) distributed to the
prefects and making significant changes to the government's
draft constitution, including significant powers for
autonomous departments. Forseeing an eventual breakdown in
the dialogue, Costas and the other opposition prefects would
then push for a recall referendum to stall any constitutional
referendum. Costas believes most, but not all, prefects
would win any recall referendum. The prefect also expressed
his extreme displeasure with OAS SYG Insulza's recent visit
to Bolivia and public remarks endorsing the Morales
government. Costas spoke in depth about the crisis caused by
heavy rains and flooding throughout Santa Cruz Department and
the need for heavy investments in infrastructure, including a
new dam and road repairs, to prevent further losses of lives
and livelihood. The cuts in IDH directly affect the
prefect's ability to carry through on those urgently-needed
projects.


3. (SBU) Similarly, interlocutors from the Santa Cruz Civic
Committee opined that the national dialogue was going
nowhere. They repeated previous claims (reftel) that it was
a useful delaying tactic while they worked at the grass-roots
level to promote the autonomy statute. On the other hand,
they admitted the ruling MAS party is working equally hard at
the grass-roots level to promote the draft constitution.


4. (U) In addition to meeting with political and business
leaders, the American Presence Officer and mission personnel
organized an aggressive agenda of public outreach to
highlight U.S. activities in Santa Cruz:

-- The Ambassador inaugurated the new Virtual Presence Post
website "Enfoque Santa Cruz," with participation by the
Prefect, the Mayor, the Municipal Council President, and 400
guests including all the major local press. Personnel from
embassy agencies/sections were on hand to explain the various
USG programs in Santa Cruz.

-- The Ambassador announced a donation of humanitarian aid
for flood victims, and the USAID Director delivered relief
supplies to citizens in the municipality of San Pedro.

--The Ambassador visited the Santa Cruz Binational Center and
met with beneficiaries of the John F. Kennedy scholarship
program, which grants English scholarships to poor students
in public high schools who excel in academics and leadership.
At the same time, he inaugurated a poster show on civil
rights and announced a new English scholarship program
"Martin Luther King: College Horizons" for Afro-Bolivian and
indigenous students.

-- The Ambassador highlighted USAID's Santa Cruz Business
Development Center assistance to small and medium
enterprises, including a metallurgical company that is the
first in Bolivia to obtain certification by the American
Society of Mechanical Engineers thanks to USG assistance.

-- The Ambassador visited Peace Corps Volunteers working on
agricultural and microenterprise projects, and met with
beneficiaries of the volunteers' programs.
GOLDBERG