CHOQUEHUANCA SAYS USAID SUSPENSION "LIMITED"

C O N F I D E N T I A L LA PAZ 001111

SIPDIS

E.O. 12958: DECL: 07/29/2019
TAGS: PGOV PREL KDEM PINR EAID SNAR BL
SUBJECT: CHOQUEHUANCA SAYS USAID SUSPENSION "LIMITED"

REF: A. LA PAZ 1062

B. LA PAZ 1043

C. LA PAZ 1027

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


1. (C) Summary: Government of Bolivia Foreign Minister David
Choquehuanca told CDA James Creagan July 29 that a GOB
directive to suspend USAID democracy and governance programs
(reftels) applied only to a limited number of democracy
programs and agreed with Charge that it would be better to
discuss the broader topic of USAID assistance as part of the
ongoing bilateral talks. Choquehuanca agreed to sign a
face-sheet amendment to allow continued anti-narcotics
funding until a framework agreement is achieved, but
expressed impatience at the delay in holding a second round
of talks. Charge explained the difficulties in setting a
date for continued discussions but affirmed USG desire to
keep moving forward. End summary.

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Impact of USAID Suspension Limited
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2. (C) In his July 29 meeting with Charge, GOB Foreign
Minister David Choquehuanca signaled that a July 9 letter
from Planning Minister Noel Aguirre directing the suspension
of all USAID Democracy and Governance programs (reftels) was
more limited in scope than initially communicated. Although
he did not say precisely which programs would remain
suspended, he agreed with Charge's suggestion that USAID
Acting Director meet with Aguirre or Vice Minister Javier
Fernandez to discuss the issue in more detail. Charge then
referenced certain USAID programs, such as the Integrated
Justice Centers, which have been implemented at the GOB's
request, and mentioned that we categorized these as public
administration projects rather than democracy programs.
Choquehuanca agreed. Charge suggested that the broader theme
of USAID assistance could be discussed in the next round of
the bilateral talks, to which Choquehuanca also assented.

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Setting a Date for Bilateral Talks
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3. (C) Choquehuanca reprised earlier complaints about the
slow pace of bilateral talks (reftel B) and queried the
Charge about the USG's response to the GOB's proposed
framework plan. Charge apologized for the deliberate pace of
the interagency process but said he believed we could deliver
a counterproposal by August 6 or August 7. Choquehuanca said
the GOB would review the counterproposal and expressed his
hope that we could soon thereafter set a date for the second
round of talks. He repeatedly mentioned a desire to keep
moving forward and said "if we can't solve the issues in the
second round, we can return to Bolivia for a third round."
Choquehuanca added that "the first round was very positive;
it exceeded our expectations."


4. (C) Charge explained that U.S. Senate approval of Arturo
Valenzuela as Assistant Secretary had been delayed, but
assured the Foreign Minister this would occur in due course.
He remarked that Valenzuela would likely lead the next round
of bilateral talks. Choquehuanca opined somewhat approvingly
that he thought Valenzuela was being punished for his
comments critical of Honduras' interim government, and said
he looked forward to his approval. Charge related to the
Foreign Minister Valenzuela's comments to the subcommittee
where Valenzuela discussed his desire to see the USG
cooperate with its partners through programs of free trade,
education, environmental stewardship, equality, and energy
security, all of which closely mirror the GOB's stated goals.

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Anti-Narcotics Assistance
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5. (C) Charge discussed two pending funding issues related to
anti-narcotics. First, he informed Choquehuanca that the
Narcotics Affairs Section (NAS) had not received USD 1.5
million in recovered value-added taxes from 2006 and asked
for the Foreign Minister's help in returning the taxes.
Charge emphasized that if these funds were sent to NAS, they
could be quickly reinvested in eradication efforts, thus
benefiting the GOB. Second, Charge requested that the GOB
sign a face sheet amendment to the prior bilateral agreement
on anti-narcotics funding by September 30 in order to keep
NAS financing available for GOB programs. Choquehuanca
agreed on both points.

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Comment
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6. (C) While Choquehuanca was not specific in his discussion
of the suspension of USAID programming, his tone and body
language seemed to indicate a lack of significant concern.
He quickly moved on to other issues and did not seem troubled
by Charge's proposal to use the bilateral talks as the
appropriate forum to discuss overall USAID programming.
Choquehuanca was much more animated about setting a date for
the next round of discussions and nodded approvingly at the
news that he would soon see the USG counterproposal.
Choquehuanca has twice stated that he hopes to agree on a
framework plan in perhaps one or two more meetings. We
believe he is under pressure from President Morales to
"produce something." Embassy will attempt to set
expectations for potentially longer discussions. End comment.
CREAGAN