SANTA CRUZ LEADERS ALARMED BY EROSION OF

C O N F I D E N T I A L LA PAZ 000501

SIPDIS

E.O. 12958: DECL: 03/30/2019
TAGS: PGOV ECON KDEM PHUM SNAR ASEC BL
SUBJECT: SANTA CRUZ LEADERS ALARMED BY EROSION OF
DEMOCRATIC INSTITUTIONS

REF: LA PAZ 469

Classified By: Acting Deputy Chief of Mission Christopher Lambert for r
eason 1.4 (b).


1. (C) Summary: During several recent trips by embassy
officials to Santa Cruz, leaders and common citizens alike
have expressed concern over the growing anti-democratic
tendencies of the Morales government. Issues such as the
continued imprisonment of Pando Prefect Leopoldo Fernandez,
the self-imposed exile, and irregular arrests and
imprisonment of political opponents from the Eastern
departments, violence against political rivals such as Victor
Hugo Cardenas (who is popular in Santa Cruz),land
confiscations for political motives, the growth in
narcotrafficking and related violent crime, and the draft
electoral law are some of the leading concerns. In a March
27-28 outreach trip to Santa Cruz, A/DCM met briefly with the
Prefect (Governor),new Civic Committee President, business
leaders, leaders in the forestry sector, a media owner, and
the Cardenal. While they understand there are limits to what
the U.S. can do to reverse anti-democratic trends in Bolivia,
they are grateful for continued U.S. engagement. End summary.


2. (C) The Acting DCM traveled to Santa Cruz March 27-28 to
participate in the forestry fair EXPOFOREST (partly sponsored
by USAID),and had side meetings with several local
officials. Santa Cruz Prefect (Governor) Ruben Costas had
just returned from a civic march in Sucre, where local
residents and opposition leaders called for the restoration
of the constitutional court and an end to harrassment of the
supreme court. Costas and the new civic committee president
Luis Nunez told emboffs that Santa Cruz would hold a similar
march on Friday, April 3 to protest anti-democratic moves by
the government, highlight the recent threats against private
property, call for restoration of the judicial branch, and
insist on protection of human and civil rights. Costas and
Nunez stressed the necessity of opposition unity in this
election year, because by 2010 it will be too late if the MAS
is able to gain 2/3 control of the new congress. Both
expressed alarm over the draft electoral law which, if passed
in the form drafted and passed by the MAS-controlled lower
house, will give an unfair advantage to the MAS by increasing
representation from MAS rural strongholds at the expense of
opposition departments and urban areas, virtually
guaranteeing a 2/3 victory (reftel).

Electoral Law: Only MAS Indigenous Count
--------------


3. (C) Secretary for Indigenous Development at the Prefecture
Antonio Surubi (a Chiquitano from rural Santa Cruz) told
American Presence Post Officer (APPO) March 17 that the Santa
Cruz indigenous community is very upset by the draft
electoral law and its treatment of the seats reserved for
indigenous delegates. As currently drafted, the method for
determining who is "indigenous" requires certification by the
local indigenous union. In Santa Cruz, that would mean
approval by the Confederation of Indigenous Peoples of the
Orient (CIDOB). However, the parallel CIDOB recognized by
the MAS government would be the one charged with declaring
candidates qualified to run for office. The other, which
represents the majority of indigenous people in Santa Cruz,
would be ignored. This means that indigenous candidates from
Santa Cruz who do not support the MAS would never even make
it on to the ballot.

Cardinal Will Continue Speaking Up for What is Right
-------------- --------------


4. (C) The A/DCM paid a courtesy call on Cardinal Julio
Terrazas, who is slowly recovering from his January open
heart surgery. Terrazas expressed concern that the political
situation in Bolivia during 2009 could become heated, perhaps

resulting in violence. He said there did not seem to be much
will on the part of the Morales government for a
reconciliation with the church, but that he would continue
speaking out about problems affecting the Bolivian people
according to his conscience. (Terrazas drew the wrath of the
government for speaking about the dangers of increased
narcotrafficking late in 2008.) He lamented that the current
government's policies, rather than resulting in the promised
"change" that is needed in Bolivia, are instead reducing job
opportunities and dividing the country. Terrazas asked that
the U.S. consider restoring ATPDEA trade benefits, as their
suspension hurt the poorest people, not the government.
Emboffs explained that ATPDEA was directly linked to
cooperation against narcotrafficking. Emboffs also explained
that despite the Morales government's accusations against the
Embassy, including the expulsion of the Ambassador and DEA,
the Embassy continued to provide assistance throughout the
country. The Cardinal was pleased to hear that our aid to
the poorest Bolivians continues.


5. (C) Owner of national television station Unitel, Ernesto
Monasterio, told A/DCM that government pressure on press
freedom is increasing, and he predicted it would get worse as
the electoral campaign heated up. He stressed the
importance, but extreme difficulty, of amending the electoral
law before it is passed by Congress, and then uniting the
opposition before December elections. Monasterio asserted
that if the current version of the MAS-drafted electoral law
is passed, "The game is over. The MAS will rule Bolivia for
years to come." The prefect's advisor for international
relations, Karen Balcazar (a U.S. citizen),told APPO that a
high-level meeting with President Morales at the Summit of
the Americas "would send the message that the United States
has abandoned the Bolivians fighting for democracy."

Outreach--Ever More Important
--------------


6. (C) Santa Cruz residents express concern that President
Morales' rhetoric against the U.S. Embassy will result in the
embassy's closure. They appreciate Embassy officials
visiting the region and ensuring first-hand that our
assistance programs continue. The A/DCM's remarks at the
EXPOFOREST closing ceremony highlighted U.S. government
contributions to the forestry sector, especially in helping
small, rural and indigenous producers and in supporting
sustainable use and biodiversity conservation. Bolivia is
proud of its wood exports and sound land management policies.
However, several speeches criticized the new constitution as
a return to an old regime in which there was corruption in
granting land use rights in forests. The Prefect's address
called for greater autonomy over forest use permits, so that
Crucenos could better protect their natural resources.


7. (C) The A/DCM spoke to an AmCham gathering about the
global economic crisis and the U.S. stimulus plan. He
stopped by the hospital that was hosting a surgical mission
of the U.S. NGO Operation Smile, and greeted U.S. and
international volunteers, patients, and their families. He
also visited a civic education project funded by USAID
through the NGO FIDEM and implemented by the Santa Cruz
binational center (CBA). This may be the first partnership
between USAID and a binational center in the hemisphere, and
represents an initiative by the CBA to grow a "civic
responsibility" arm in addition to its educational and
cultural activities. The project is reaching 21,000 (out of
150,000) residents in the marginalized neighborhood "Plan
3000" which is widely-thought to be a MAS stronghold.
However, the local residents are enthusiastic about the
USAID/CBA initiative, and received the A/DCM with open arms.
While they appreciate the USAID civic education project, they
wish for more economic development projects that will create
employment opportunities in their growing neighborhood on the
outskirts of Snata Cruz.



8. (C) Comment: Santa Cruz residents are determined as much
as possible to halt democratic back-sliding. Their main
request to us is to report accurately to Washington and the
international community what is really happening in Bolivia.
URS