CHOQUEHUANCA UNAWARE OF USAID SUSPENSION

C O N F I D E N T I A L LA PAZ 001043

SIPDIS

E.O. 12958: DECL: 07/14/2019
TAGS: PGOV PREL KDEM PINR ECON BL
SUBJECT: CHOQUEHUANCA UNAWARE OF USAID SUSPENSION

REF: LA PAZ 1027

Classified By: Charge d'Affaires James Creagan for reasons 1.4 (b, d)


1. (C) Summary: Government of Bolivia Foreign Minister David
Choquehuanca expressed to CDA James Creagan in a meeting on
July 14 some surprise that he was unaware Planning Minister
Noel Aguirre had given Creagan a letter July 9 directing
USAID to freeze all democracy and governance programming by
July 15 (reftel). Choquehuanca indicated his preference to
discuss development aid and trade issues through bilateral
talks. After pledging to review the pending suspension
quickly, Choquehuanca complained the USG was a month late in
responding to the GOB's framework agreement draft. CDA
Creagan emphasized our desire to cooperate with the GOB in
improving relations through the bilateral discussions.
Embassy does not conclude much from Choquehuanca's desire to
work toward improved bilateral relations, however, as he
appears to be increasingly sidelined within the GOB
hierarchy, even admitting to CDA that he has not attended a
cabinet meeting in two months. End summary.

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ATPDEA Aftershocks
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2. (C) Charge d'Affaires James Creagan and A/DCM Chris
Lambert met with GOB Foreign Minister David Choquehuanca and
Vice Foreign Minister Hugo Fernandez on July 14 to review
concerns raised by the Foreign Minister regarding economic
trade benefits during his recent meeting with the Secretary,
to discuss a GOB directive to suspend all USAID activities
related to democracy and governance programming (reftel),and
to emphasize USG desire to improve all significant aspects of
the bilateral relationship through the ongoing bilateral
discussions.


3. (C) CDA Creagan gave FM Choquehuanca a copy of a letter
from A/S Thomas Shannon to Bolivian Charge d'Affaires to the
UN Pablo Solon, in which Shannon responded to several
questions and concerns raised by Choquehuanca in their July 2
meeting with the Secretary regarding the Andean Trade
Promotion and Drug Eradication Act (ATPDEA). After thanking
the Charge for the letter, Choquehuanca affirmed his prior
statements that the GOB viewed President Obama's report on
the GOB's qualifications (or lack thereof) for ATPDEA as
interfering in Bolivia's internal affairs. However, he then
softened the statement by acknowledging the interference was
"perhaps unintentional."


4. (C) Choquehuanca said the lack of ATPDEA benefits was an
important issue, especially textile exports. He said the GOB
was working increasingly successfully with Venezuela and
Mercosur to construct a combined USD 50 million vehicle to
support such exports (although he noted the Venezuelans took
too long to remit payment). Choquehuanca then changed tack,
stating that "more important than ATPDEA" was the much larger
amount of trade via the General System of Preferences (GSP).
He said it was "very important to communicate to the country"
the export opportunities that still existed under GSP and
that ATPDEA was not the only trade benefit Bolivia enjoys.
Choquehuanca repeated this several times, saying that under
GSP, some 13,860 products could gain entry to the United
States, while under ATPDEA Bolivian exporters accessed only
91 out of 1,680 product types. CDA Creagan agreed and said
he hoped we could improve our economic cooperation through
the ongoing bilateral discussions.

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USAID Suspension? What Suspension?
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5. (C) CDA Creagan then handed Choquehuanca the letter from
Planning Minister Noel Aguirre directing USAID to suspend all
democracy and governance programming by July 15. Creagan
began discussing the issue, but stopped when it became clear

Choquehuanca had neither seen nor heard of the letter before.
After reading the letter, Choquehuanca listened intently as
CDA discussed the potentially unforeseen consequences of such
a suspension of activities, including halting of the
Integrated Justice Centers (a program requested by the GOB
Justice Ministry) and work with local municipalities that was
being done in concert with the GOB. A/DCM Lambert discussed
how following the May 20-21 bilateral discussions in La Paz,
USAID sought to review USAID programming with GOB
representatives but received no response until this letter.
CDA underscored that while the USG seeks to cooperate with
the GOB, the approach outlined in the letter could have
negative repercussions, including in the U.S. Congress.


6. (C) Choquehuanca paused, said "I have a very simple
reaction to this," and then proceeded to make several
somewhat contradictory points. First, he noted that "the
U.S. has a responsibility to help all the people in a
country, not just some," and said past development aid
practices benefiting "some over others" could have led to
this decision to suspend the USAID activities in question.
However, Choquehuanca then said that he personally thought
such decisions could be better made as part of the overall
bilateral talks. After making this observation, he confessed
that he had not been to a cabinet meeting in two months and
that it was quite possible "they had made some other
decision," citing Ministers Quintana, Walker San Miguel, and
Rada as those that could have made the decision. Still, he
repeated, "it would be better to discuss this issue in detail
during the second round of negotiations." He concluded by
saying he would talk with the cabinet members about this
issue the same day and would try to call Charge Creagan soon.

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Talks Moving Too Slowly
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7. (C) Choquehuanca segued from his advocacy of the bilateral
talks to criticizing the USG for moving too slowly in
providing a response to the GOB draft framework agreement.
He commented that A/S Shannon told him that the USG desired
better relations, that it could be done quickly, and that the
GOB would receive a response to their framework agreement
draft by June 16 to 19. Noting that such a response was now
almost a month overdue, Choquehuanca said he believed
President Obama and the Secretary believed in the talks and
in advancing bilateral relations. Choquehuanca then
questioned whether the USG bureaucracy "shared the same
vision."


8. (C) CDA Creagan demurred and told the Foreign Minister
that "we are all committed to improving relations." He
further expressed that the June 27-28 trip to Bolivia by
Special Emissary Maria Echaveste (septel) represented the
Secretary's commitment to improving bilateral relations.
Choquehuanca sighed and mentioned that President Morales told
him, "Maybe the best relations with the U.S. would be
relations without any (development aid) cooperation," a
phrase also used by Presidency Minister Quintana in the May
20-21 discussions.

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Comment
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9. (C) This meeting reproduced a now-familiar pattern, in
which the Foreign Minister evinces a seemingly sincere desire
for increased bilateral engagement but appears to be
marginalized within the upper echelons of the GOB. His lack
of knowledge of the letter from Aguirre suspending USAID
democracy and governance activities, his lack of attendance
at cabinet meetings, and his lack of presence at the first
round of bilateral talks (which Presidency Minister Quintana
facilitated instead) would seem to equal a lack of influence.
Choquehuanca may well be aware of his position, as evidenced
by his frustration at the slow pace of the bilateral talks.

If he is unable to show others in the GOB who are inclined
against reengagement that the bilateral discussions are
moving forward, he may lose even more status. CDA Creagan
assured Choquehuanca that we are working through the process
and will have a response for him soon, perhaps even at the
beginning of next week. End comment.
CREAGAN