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Viewing cable 07LIMA2708, PRESIDENT MORALES BLASTS NEOLIBERAL MODEL DURING

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Reference ID Created Released Classification Origin
07LIMA2708 2007-08-08 22:32 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Lima
VZCZCXYZ0012
PP RUEHWEB

DE RUEHPE #2708/01 2202232
ZNR UUUUU ZZH
P 082232Z AUG 07
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC PRIORITY 6456
INFO RUEHAC/AMEMBASSY ASUNCION PRIORITY 1748
RUEHBO/AMEMBASSY BOGOTA PRIORITY 4949
RUEHBR/AMEMBASSY BRASILIA PRIORITY 7514
RUEHBU/AMEMBASSY BUENOS AIRES PRIORITY 3035
RUEHCV/AMEMBASSY CARACAS PRIORITY 0645
RUEHLP/AMEMBASSY LA PAZ AUG 4432
RUEHMN/AMEMBASSY MONTEVIDEO PRIORITY 9262
RUEHQT/AMEMBASSY QUITO PRIORITY 1385
RUEHSG/AMEMBASSY SANTIAGO PRIORITY 1427
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
RUMIAAA/USCINCSO MIAMI FL PRIORITY
UNCLAS LIMA 002708 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL SNAR PINR BO PE
SUBJECT: PRESIDENT MORALES BLASTS NEOLIBERAL MODEL DURING 
PERU VISIT 
 
 
1. (U) Summary: During his first visit to Peru as Bolivian 
President August 1, Evo Morales met with President Garcia to 
discuss bilateral integration, addressed Peru's Congress, and 
met with local indigenous and labor leaders.  In his speech 
to Congress, Morales called for an end to discrimination, 
railed against the neoliberal economic model and said he owed 
his political ascent to the coca leaf.  While public reaction 
to Morales' visit was generally muted, his ideologically 
no-holds-barred Congressional speech and his call to support 
Cuba drew criticism from government and opinion leaders.  End 
Summary. 
 
Goodwill Invitation 
------------------- 
2. (SBU) Evo Morales August 1 visit to Peru, his first as 
President of Bolivia, simultaneously helped overcome and 
probably added to the strain in bilateral relations. 
According to MFA officials, the third time was the charm as 
Morales finally accepted President Garcia's invitation, which 
had been extended as a gesture of good will.  During their 
meeting, the two leaders reportedly discussed ways to enhance 
ties through the bilateral integration agreement and also 
pledged to strengthen cooperation against narco-trafficking 
and terrorism.  A Bolivian Embassy official and his MFA 
counterpart told us the offical meeting was cordial in tone 
and intended to clear the ground for future progress. 
 
Fiery Speech to Congress 
------------------------ 
3.  (SBU) Morales' interventions in Congress and in public 
were less conducive to smooth bilateral relations.  During 
his speech to Congress, Morales drew a sharp contrast with 
his hosts' economic policies by praising the success of 
hydrocarbon nationalization in Bolivia.  Nationalization, he 
said, had created the first fiscal surpluses in decades, and 
should be followed by the nationalization of other resources. 
 He then blasted the neoliberal economic model, which he 
argued had plundered the natural resources of whole countries 
while benfitting small privileged groups at the expense of 
the majority.  "It is time to close the open veins of Latin 
America," Morales said (quoting the title of Eduardo 
Galeano's infamous dependency theory tract). 
 
4.  (SBU) Morales also lauded Bolivia's coca policy.  Calling 
the coca leaf an instrument for the sovereignty of the people 
and crediting it with his political birth, Morales argued 
that the only effective policy involved cooperation with 
social sectors rather than forced eradication.  Repeating 
familiar refrains to the applause of deputies from Ollanta 
Humala's Nationalist Party (PNP), Morales called for an end 
to a "zero coca" policy in favor of "zero narcotrafficking, 
zero cocaine".  Morales later encouraged the Humala-led 
opposition by saying his own party (the MAS) had taken more 
than a decade to grow from four congressmen to the majority 
he now controlled. 
 
Meeting with Social Sector Leaders 
---------------------------------- 
5. (U) Accompanied by the Cuban and Nicaraguan Ambassadors 
and a Venezuelan representative, Morales then met with 
Peruvian social movement representatives and labor leaders. 
In an impromptu speech at that event, Morales criticized 
U.S.-Latin American FTAs and called for continued struggle 
against colonialism, imperialism, and neoliberalism.  He also 
praised Fidel Castro as a "father" and welcomed the presence 
of Hugo Chavez's ALBA in Peru. 
 
Subdued Public Reaction 
----------------------- 
6. (U) Public and government reaction to Morales's visit has 
been critical but subdued.  Local press focused on the 
message of cooperation promoted by President Garcia, while 
some editorial writers faulted Morales for his openly 
challenging and divisive message.  Prime Minister Jorge del 
Castillo criticized Morales' lack of courtesy, and others 
have noted that the kinds of statist policies promoted by the 
Bolivian President had destroyed Peru's economy in the 1970s. 
 President Garcia publicly acknowledged his ideological 
differences with Morales but said that both leaders wanted to 
reduce poverty and that "the future will tell" which approach 
 
worked faster.  He added that radical experiments "will not 
last long" and criticized governments that "throw rocks" and 
"provoke confrontations." 
 
Comment: Understanding the Context 
---------------------------------- 
7. (SBU) The Peruvian leadership's measured response to 
Morales' provocations should be understood in context.  For 
one, Garcia is keenly aware of the Bolivian President's roots 
in social protest and sympathizes with his message of ending 
poverty, social injustice and exclusion.  It's the proposed 
solution that causes grief.  On this score, Garcia and his 
government are like concerned parents listening to the 
outraged antics of an adolescent child who is grappling with 
the bitter realities of the world and suddenly wielding big 
ideas for solving them.  They understand but believe they 
know better, having learned that much from their own past. 
WUNDER