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Viewing cable 06LAPAZ1131, CONGRESSIONAL ECONOMIC COMMISSIONS' VIEWS DIFFER

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Reference ID Created Released Classification Origin
06LAPAZ1131 2006-04-26 19:21 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0003
RR RUEHWEB

DE RUEHLP #1131 1161921
ZNR UUUUU ZZH
R 261921Z APR 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 8989
INFO RUEHAC/AMEMBASSY ASUNCION 5795
RUEHBO/AMEMBASSY BOGOTA 3085
RUEHBR/AMEMBASSY BRASILIA 6948
RUEHBU/AMEMBASSY BUENOS AIRES 4191
RUEHCV/AMEMBASSY CARACAS 1491
RUEHPE/AMEMBASSY LIMA 1455
RUEHME/AMEMBASSY MEXICO 1691
RUEHMN/AMEMBASSY MONTEVIDEO 3744
RUEHQT/AMEMBASSY QUITO 4131
RUEHSG/AMEMBASSY SANTIAGO 8676
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS LA PAZ 001131 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/AND LPETRONI 
COMMERCE FOR JANGLIN 
TREASURY FOR SGOOCH 
 
E.O. 12958: N/A 
TAGS: ECON PGOV BL
SUBJECT: CONGRESSIONAL ECONOMIC COMMISSIONS' VIEWS DIFFER 
SHARPLY 
 
REF: LA PAZ 1114 
 
1. (SBU) Summary: While staff of the MAS-led Chamber of 
Deputies Economic and Sustainable Development Commissions 
look favorably on the initial performance of the Morales 
administration, the president of the commissions' 
opposition-led Senate counterpart believes the government has 
acted erratically and even foolishly, undermining domestic 
and foreign investors' confidence in the administration and 
hurting Bolivia's chances for economic growth.  The sharp 
differences in commission views reflect broad political 
divisions and rising popular frustration (reftel).  End 
summary. 
 
2. (SBU) Staff of the MAS-led Chamber of Deputies Economic 
and Sustainable Development Commissions told us April 5 they 
believed the Morales administration was moving in the right 
direction.  They lauded Morales' desire to strengthen the 
economy and expressed confidence he would fulfill promises to 
create jobs, saying they expected the president and other GOB 
officials to work to improve the lives of the poor.  They 
highlighted Morales' pledge to protect small producers and 
the indigenous from the potentially harmful effects of free 
trade and said they supported the government's efforts to 
nationalize hydrocarbons and other natural resources, arguing 
that these should be used for the benefit of the people. 
Commission staff seemed confident the Morales administration 
would effect meaningful change, both through its own policies 
and through the upcoming Constituent Assembly - a key tool, 
they said, for shaping Bolivia's future. 
 
3. (SBU) These views differ sharply from those of Podemos 
Senator Roberto Ruiz, President of the Senate Economic 
Development Commission.  Ruiz told us April 25 he believed 
the government had acted erratically and even foolishly, 
undermining domestic and foreign investors' confidence in the 
administration and hurting Bolivia's chances for economic 
growth.  Ruiz said he was concerned by GOB officials' 
inconsistencies and argued that frequent policy shifts made 
it impossible to identify the government's objectives.  He 
also said Morales' stated intent to seek alternative trade 
arrangements and nationalize Bolivia's natural resources had 
increased investment risk and caused both domestic and 
foreign firms to abandon or delay potential projects, taking 
with them thousands of jobs.  And with the Constituent 
Assembly presenting more unknowns, Ruiz feared investors 
would wait even longer to make decisions, further threatening 
Bolivia's chances of realizing long-term economic gains. 
 
4. (SBU) Comment: The sharp differences in commission views 
reflect broad political divisions and rising popular 
frustration (reftel).  Social and private sector 
organizations are increasingly lining up to support or oppose 
the Morales administration's economic policies, with the line 
between them ever more clearly defined.  According to Senator 
Ruiz, popular frustration with the government's failure to 
fulfill myriad promises - particularly those emphasizing the 
creation of new jobs and better living conditions - built up 
at an historically rapid pace.  This does not bode well for 
the Morales administration's ability to act, as its hands 
seem increasingly tied by conflicting demands for more money, 
more jobs, and more power.  End comment. 
GREENLEE