MFA ON UPCOMING DC ROUND OF BILATERAL TALKS

C O N F I D E N T I A L LA PAZ 000828

SIPDIS

E.O. 12958: DECL: 06/04/2019
TAGS: ASEC PGOV PREL PINR OFDP OPDC OVIP SNAR EAID
ETRD, KTIA, BL
SUBJECT: MFA ON UPCOMING DC ROUND OF BILATERAL TALKS

Classified By: A/EcoPol Chief Brian Quigley for reasons 1.4 (b)(d)


1. (C) Summary: Vice Foreign Minister Hugo Fernandez told
Charge June 4 that he would confirm the timing of D.C.-based
bilateral talks with UN Charge Pablo Solon. Fernandez urged
that President Obama reverse suspension of ATPDEA trade
preferences for Bolivia by June 30. Fernandez said it would
be difficult to make significant new progress on
counternarcotics (CN) before June 30, but that the CN issue
could be revisited prior to CN certification in September.
Fernandez was open to forging creative solutions regarding CN
intelligence sharing, but said any new approach would have to
be worked through the Ministry of Government. He agreed that
a delegation to the Department of Justice to examine USG
extradition policy was best postponed until after the DOJ had
made an initial review of the request regarding former
President Gonzalo Sanchez de Lozada. End Summary.


2. (C) Charge met with Vice Foreign Minister Hugo Fernandez
June 4 to discuss next steps for a second round of high-level
bilateral negotiation in Washington, D.C., following initial
talks May 20-21 in La Paz. Charge explained that A/S Shannon
and Bolivian UN Charge Pablo Solon had discussed the
possibility of conducting a second round the third week of
June, but asked if a summit the second week of June would be
possible. Charge also explained that the USG was pleased to
receive the GOB's "framework agreement" proposal and that
D.C. agencies were busily reviewing the document in the hopes
of having a counterproposal, or at least comments, regarding
the Bolivian draft for the next round of negotiations.
Charge inquired about several recent confusing and sometimes
contradictory public statements made by GOB officials
regarding the timing and composition of both the next round
of comprehensive talks and separate fact-finding delegations
being considered to assess contentious issues such as
extradition (Department of Justice),the Millennium Challenge
Fund, and USAID programs. Charge also noted that the June 30
deadline for President Obama to decide to reinstate or
continue suspending ATPDEA benefits is fast approaching and
the GOB would need to quickly work to show progress on
counternarcotics cooperation if it wanted to bolster its
ATPDEA case.

Third Week in June Most Likely for Next Round of Talks
-------------- --------------


3. (C) Vice Minister Fernandez deferred to Charge Solon on
details regarding the second round of talks, but said he
would try to ask him about it later in the day after he
returned to New York from the OAS General Assembly in
Honduras. Fernandez speculated that scheduling the talks for
the second week in June would be workable only if Solon was
allowed to represent the GOB. Fernandez implied this was
unlikely due to Solon's busy schedule and noted that he is
something of a turbo-charged UN representative, responsible
broadly for U.S. relations and OAS strategy, in addition to
his UN duties. According to Fernandez, it would be "very
difficult" to assemble a Bolivian delegation, the more likely
and preferred scenario, before the third week in June. He
mentioned such a delegation would include high-level
representatives from the Ministries of Justice and Government
and likely include Presidency Minister Juan Ramon Quintana.
Fernandez promised to inform Charge of the GOB's preferences
regarding the talks after discussing the matter with Solon,
Quintana, and FM Choquehuanca, after he returns to Bolivia
June 7.

Side Delegations After Main Talks
--------------


4. (C) Fernandez likewise agreed to coordinate with the
Embassy on separate issue-specific delegations discussed at
the May 20-21 talks and agreed that any delegation regarding
the extradition of former Bolivian President Gonzalo "Goni"
Sanchez de Lozada be postponed until after the Department of
Justice completes an initial review of the case. Fernandez
flatly said "people do not believe" Minister Quintana's
statements that Sanchez de Lozada will "be returned in two
months. What can I do if a Minster says these things?"
Fernandez said the MFA understood the "long and technical
nature" of the U.S. extradition process, but that such a
delegation to the DOJ would help other GOB officials
"understand the process with precision, instead of making
predictions." MFA Director of Bilateral Affairs Jean Paul
Guevara generally agreed with Fernandez, but also said it was
"important to understand" that the United States could no
longer avoid resolving the issue "now that we have delivered
the extradition (request)." Guevara reasoned that, since the
official submission of the request in November 2008, the
clock is ticking and the GOB's patience for a resolution in
the matter is limited.

ATPDEA Deadline May Not Be Catastrophic to Talks
-------------- ---


5. (C) Vice Minister Fernandez discounted the prospects of
providing significant new counternarcotics progress before
the June 30 ATPDEA decision deadline, including even signing
a relatively benign bilateral statement on shared CN
commitments "This June 30 date is fatal ... (significant
progress) can't be achieved." Fernandez added, however, that
"perhaps this is not a big problem," as the issue could be
reexamined before the September 15 CN certification decision
or even in December or January, when Congress reexamines the
legislation for 2010. Fernandez suggested "the United States
needs to present a new (CN) agreement" at the second round of
talks. He added that although an initial general statement
about CN cooperation, such as the USG proposed during the May
20-21 talks, could be a positive step, "we shouldn't just be
talking about principles, but developing something practical.
Who will be contributing to what."


6. (C) Fernandez added that despite the unlikelihood of
changing the CN bilateral dynamic, President Obama "could
still look at the facts and say they (the Bolivians) are
complying. If the last President said they are not
complying, the new President can just say they are
complying." Fernandez implied that the State Department
could suggest this, as President Obama "takes advice from
you." Charge explained that President Obama would look to a
wide range of agencies for advice on the ATPDEA decision and
reiterated that the interagency community in Washington would
have to see signs of improved cooperation to improve the
chances of a reversal on ATPDEA.

Vice Minister Punts on CN Intel Sharing
--------------


7. (C) Fernandez was lukewarm to exploring creative
alternatives to share CN intelligence and cooperate on
interdiction efforts, particularly aimed at cartels, in the
wake of DEA's expulsion. Fernandez did not seem averse to
rethinking the issue, but noted that any decisions on CN
would "ultimately be up to the Ministry of Government." He
added that Government Minister Alfredo Rada was not terribly
enthusiastic about CN intelligence sharing during the May
20-21 talks, an opinion he did not expect would easily
change.

Questions About New A/S
--------------


8. (C) Guevara asked if the A/S Shannon's named replacement
would be participating in the meetings and opined that this
would help provide continuity. Charge explained that the
A/S's replacement would not attend as he was not confirmed by
Congress and would not likely be before the second round of
talks. He added that the A/S was trying to move the talks as
far along as possible before he left with the intent of
providing the incoming A/S as much negotiating momentum as
possible when he or she takes over the process.

Comment
--------------


9. (C) Despite a generally positive and frank discussion with
VM Fernandez, Fernandez is unlikely to be able to sway other
more senior officials. Fernandez gave the impression that
Solon is the driver of the GOB's reengagement strategy,
mentioning the Foreign Minister only once regarding the talks
and as an afterthought. Given the GOB's typically weak
interagency coordination, we can only hope Fernandez's
position on putting parameters on the proposed DOJ trip and
taking it out of the press are adopted by the GOB and that
Minister Quintana gets the speaking points. End Comment.
URS