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Viewing cable 06LAPAZ2798, STAND-OFF BETWEEN MINERS AND GOB CONTINUES

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Reference ID Created Released Classification Origin
06LAPAZ2798 2006-10-17 20:10 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0000
RR RUEHWEB

DE RUEHLP #2798 2902010
ZNR UUUUU ZZH
R 172010Z OCT 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 0901
INFO RUEHAC/AMEMBASSY ASUNCION 6192
RUEHBO/AMEMBASSY BOGOTA 3506
RUEHBR/AMEMBASSY BRASILIA 7369
RUEHBU/AMEMBASSY BUENOS AIRES 4628
RUEHBY/AMEMBASSY CANBERRA 0038
RUEHCV/AMEMBASSY CARACAS 1883
RUEHPE/AMEMBASSY LIMA 1926
RUEHME/AMEMBASSY MEXICO 1822
RUEHMN/AMEMBASSY MONTEVIDEO 4090
RUEHOT/AMEMBASSY OTTAWA 0449
RUEHQT/AMEMBASSY QUITO 4519
RUEHSG/AMEMBASSY SANTIAGO 9095
RUEHKO/AMEMBASSY TOKYO 0255
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 002798 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/AND LPETRONI 
COMMERCE FOR JANGLIN 
TREASURY FOR SGOOCH 
ENERGY FOR CDAY AND SLADISLAW 
 
E.O. 12958: N/A 
TAGS: EMIN ELAB EINV ECON PREL PGOV BL
SUBJECT: STAND-OFF BETWEEN MINERS AND GOB CONTINUES 
 
REF: LA PAZ 2729 
 
1. (U) Summary: Nearly two weeks after October 5-6 clashes 
between cooperative miners and state mining employees 
(reftel), the stand-off between miners and the GOB continues. 
 Cooperatives accepted a GOB proposal to provide compensation 
to affected families but rejected an offer to convert 
cooperative miners into salaried employees; while they later 
agreed to reconsider the latter, the situation remains tense. 
 End summary. 
 
2. (U) Nearly two weeks after October 5-6 clashes between 
cooperative miners and state mining employees in Huanuni 
(reftel), the stand-off between miners and the GOB continues. 
 While carefully avoiding legal responsibility for the 
conflict, President Morales promised October 12 to cover 
funeral expenses for the 16 dead; provide medical attention 
to the 81 wounded; ensure financial support for affected 
families; and reconstruct an estimated 150 homes.  National 
Federation of Cooperative Miners (FENCOMIN) President Pascual 
Huarachi accepted the proposal but accused the GOB of lacking 
concrete solutions to the miners' larger demand: the 
reactivation of Bolivia's mining sector. 
 
3. (U) Miners' cooperatives in Huanuni later rejected the 
GOB's October 13 offer to convert the town's 4,000 
cooperative miners into salaried employees of Empresa Minera 
Huanuni, the firm overseeing the site's tin mining 
operations.  FENCOMIN leaders called the proposal a "joke" 
and demanded a comprehensive solution to ongoing conflicts 
between cooperative miners and state mining employees.  While 
FENCOMIN later agreed to reconsider the offer - after the 
Morales administration revealed it would pay newly converted 
miners approximately $412 per month, an amount close to 
miners' average income - the situation remains tense. 
FENCOMIN President Huarachi announced that the heads of the 
organization's ten member cooperatives would consider the 
proposal October 17 and convene a general assembly the 
following week to determine a unified position. 
 
4. (SBU) Comment: While GOB officials continue to negotiate 
with both cooperative and salaried miners, the groups' 
competing demands and history of enmity will likely make a 
comprehensive solution difficult.  Even if the GOB resolves 
the current stand-off, pressure from miners may continue, as 
the groups have high expectations of a rejuvenated mining 
sector - which the GOB may be unable to meet - and can 
mobilize thousands of supporters to press their demands.  End 
comment. 
GOLDBERG