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Viewing cable 06LAPAZ657, JET FUEL DEADLINE PASSES, GOB ASKS FOR MORE TIME

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Reference ID Created Released Classification Origin
06LAPAZ657 2006-03-10 19:39 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0000
RR RUEHWEB

DE RUEHLP #0657 0691939
ZNR UUUUU ZZH
R 101939Z MAR 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 8391
INFO RUEHAC/AMEMBASSY ASUNCION 5671
RUEHBO/AMEMBASSY BOGOTA 2939
RUEHBR/AMEMBASSY BRASILIA 6817
RUEHBU/AMEMBASSY BUENOS AIRES 4050
RUEHCV/AMEMBASSY CARACAS 1374
RUEHPE/AMEMBASSY LIMA 1289
RUEHME/AMEMBASSY MEXICO 1668
RUEHMN/AMEMBASSY MONTEVIDEO 3623
RUEHQT/AMEMBASSY QUITO 4014
RUEHSG/AMEMBASSY SANTIAGO 8536
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RUEANHA/FAA NATIONAL HQ WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 000657 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EB/TRA JHORWITZ AND WHA/AND LPETRONI 
COMMERCE FOR EALFORD AND JANGLIN 
STATE PASS TO DOT FOR CCOLDREN 
TREASURY FOR SGOOCH 
 
E.O. 12958: N/A 
TAGS: EAIR PREL BL
SUBJECT: JET FUEL DEADLINE PASSES, GOB ASKS FOR MORE TIME 
 
REF: LA PAZ 440 
 
1. (U) Summary: In a March 8 letter to the Ambassador, the 
GOB acknowledged the expiration of the 14-day deadline to 
eliminate taxes on jet fuel uplifted by U.S.-registered air 
carriers (reftel) but asked for more time, noting that 
institutional reorganization had delayed consideration of the 
issue.  Econoffs told Ministry of Foreign Affairs officials 
that they recognized the GOB's difficulties but said USG 
agencies had already begun the process of removing Bolivian 
air carriers' exemption from U.S. fuel taxes.  Econoffs noted 
that the process could take several weeks, which gave the GOB 
a narrow window for action.  Despite the GOB's request for an 
extension of the deadline, we recommend that USG agencies 
move ahead to remove Bolivian airlines' exemption from U.S. 
fuel taxes.  End summary. 
 
2. (U) In a March 8 letter to the Ambassador, Vice Minister 
of Foreign Relations Mauricio Dorfler acknowledged the 
expiration of the 14-day deadline to respond to USG demands 
that taxes on jet fuel uplifted by U.S.-registered air 
carriers be eliminated (reftel) but asked for more time, 
noting the GOB's "strong desire" to resolve the issue.  He 
said he had established contact with the ministries of the 
presidency, hydrocarbons, and public works and asked them to 
determine the actions needed to bring policy into line with 
existing bilateral agreements.  Dorfler noted that the 
previous administration's efforts to address the matter via 
supreme decree had been interrupted by the transition and 
indicated that a draft decree (whose provisions reportedly 
call for the equalization of jet fuel prices for foreign and 
domestic air carriers rather than the complete elimination of 
taxes) had been developed by the Rodriguez government and 
sent to the National Council on Economic Policy for review. 
 
3. (SBU) Dorfler asked the Ambassador to "use his good 
offices" to extend the 14-day deadline, noting that 
institutional reorganization had delayed the GOB's 
consideration of the issue.  In a March 8 meeting with 
Econoffs, Dorfler's counterpart, Vice Minister of Economic 
Relations and Foreign Trade Maria Luisa Ramos, said she had 
never received a copy of the Ambassador's February 16 letter 
notifying the administration of USG intentions.  She lamented 
the confusion in the vice ministry and proceeded to berate 
her staff in front of us for failing to make her aware of "a 
very serious issue" that could represent "a conflict" between 
the two governments.  In response, Econoffs recognized the 
GOB's difficulties but said USG agencies had already begun 
the process of removing Bolivian air carriers' exemption from 
U.S. fuel taxes.  Econoffs noted, however, that the process 
could take several weeks, which gave the GOB a narrow window 
for action. 
 
4. (SBU) Comment: Despite the GOB's request for an extension 
of the deadline, we recommend that USG agencies move ahead to 
remove Bolivian airlines' exemption from U.S. fuel taxes. 
Ministry of Foreign Affairs officials seemed to lack in-depth 
understanding of the problem, and comments in a separate 
March 6 meeting with Econoffs indicated they were unsure how 
to proceed.  Officials seemed to lack any real sense of 
urgency, and none could provide an estimate of when the GOB 
might consider the matter.  Even with Ramos' renewed 
interest, immediate action to resolve the issue seems as 
unlikely now as it did a few months ago, particularly given 
other ministries' failure to respond to the Ministry of 
Foreign Affairs' request for action.  End comment. 
ROBINSON