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Viewing cable 08LAPAZ373, CODEL ENGEL VISIT TO BOLIVIA FEBRUARY 18-20

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Reference ID Created Released Classification Origin
08LAPAZ373 2008-02-21 21:46 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0016
PP RUEHWEB

DE RUEHLP #0373/01 0522146
ZNR UUUUU ZZH
P 212146Z FEB 08
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC PRIORITY 6515
INFO RUEHAC/AMEMBASSY ASUNCION 7603
RUEHBO/AMEMBASSY BOGOTA 4971
RUEHBR/AMEMBASSY BRASILIA 8877
RUEHBU/AMEMBASSY BUENOS AIRES 6092
RUEHCV/AMEMBASSY CARACAS 3311
RUEHPE/AMEMBASSY LIMA 3526
RUEHMN/AMEMBASSY MONTEVIDEO 5247
RUEHQT/AMEMBASSY QUITO 5940
RUEHSG/AMEMBASSY SANTIAGO 0558
RUEAIIA/CIA WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUMIAAA/USCINCSO MIAMI FL
RUEHUB/USINT HAVANA 0916
RHEHNSC/NSC WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
UNCLAS LA PAZ 000373 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
BA FOR CODEL ENGEL 
H FOR JOEL STARR 
WHA FOR SHELBY SMITH-WILSON 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PBTS MARR OPDC OPRC OREP ECON ETRD
KTIA, KDEM, KTEX, IR, BL 
SUBJECT: CODEL ENGEL VISIT TO BOLIVIA FEBRUARY 18-20 
 
1. (SBU) Summary: Codel Engel, including Representatives 
Green (D-TX), Hinchey (D-NY), Weller (R-IL), and Foxx (R-NC) 
visited La Paz and Santa Cruz February 18-20.  While in La 
Paz, the Codel enjoyed an hour-long meeting with President 
Evo Morales; met a cross-section of Bolivian politicians, 
media pundits and business leaders at a dinner hosted by the 
Ambassador; and visited a USAID project and a textiles 
manufacturer, which is a beneficiary of ATPDEA.  During a 
brief stop-over in Santa Cruz, the Codel met with five of 
nine department prefects (governors), representing the 
political opposition.  One of the prefects belonging to Evo 
Morales' MAS party attended the dinner in La Paz but was 
unable to travel to Santa Cruz with the other prefects.  The 
visit received extensive press coverage, focusing mostly on 
Chairman Engel's and Congressman Weller's concerns that as 
supporters of ATPDEA extension, the task becomes more 
difficult if anti-U.S. rhetoric persists and if Bolivia 
develops closer ties to Iran.  Speaking for the entire Codel, 
Chairman Engel and Congressman Weller expressed publicly that 
the United States was interested in good relations with 
Bolivia, supported Morales' efforts to alleviate poverty, 
defended U.S. aid programs and the Embassy's work, and 
expressed concern over anti-U.S. rhetoric and Bolivia's 
relations with Iran. End Summary. 
 
Morales:  "Best Meeting I've had with a U.S. Delegation" 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
2. (SBU) President Evo Morales, accompanied by Minister of 
the Presidency Quintana, received Codel Engel at the 
Presidential Palace for a cordial yet frank hour-long 
meeting.  Chairman Engel opened the meeting stressing that 
the Congressional delegation came in friendship, wanting to 
accentuate the positive in the bilateral relationship, and 
with a willingness to move forward and work closely with the 
Morales administration to help alleviate poverty.  The 
Chairman took the opportunity to express condolences for the 
disastrous floods and highlighted U.S. assistance to the 
victims, including the fact that Bolivia is the third largest 
recipient of U.S. aid in Latin America. 
 
3. (SBU) Morales described how Bolivia is undergoing 
tremendous change through democratic means.  He said his main 
task is to work for people in need but that there were groups 
who did not want to give up their privileged position. 
Morales stressed that he is committed to a "dialogue of 
cooperation" as he seeks to address social problems.  Turning 
to U.S. assistance, he said his objective is to make it 
transparent.  Flood relief was welcome, he added, pointing 
out the assistance he had received from Venezuela, Brazil, 
Argentina, Chile ) unconditional aid; that is what he wants, 
also from the United States.  Morales described his vision of 
democracy; democracy advanced through consensus similar to 
what he grew up with in his indigenous culture.  The view of 
democracy by the majority was an "imported" concept to 
Bolivia, but Morales understood it and now he was prepared to 
govern through referenda, letting the people decide.  Morales 
proudly noted he had just been recently reelected president 
of his union, the coca growers, and said he hoped that the 
Ambassador would not object. 
 
4. (SBU) Morales expressed a desire for improved relations 
with the United States, recognizing U.S. leadership in the 
world even if he did not agree with the American economic 
philosophy.  "We do not want external opposition," he added. 
He made the point that the indigenous were the most 
discriminated peoples in the world, some have tried to 
"exterminate us...even today groups oppose the indigenous and 
perhaps it is because they are jealous, resent us."  Morales 
noted he would like to be received by President Bush, adding 
that he "wants excellent relations."  He then complained 
about the treatment his Ministers have received entering the 
United States.  "We are not terrorists," he stressed. 
Morales said he wants to transform the country and to do it 
through democratic means.  He added that he understood he 
needed to change the established norms in Bolivia and that he 
planned to do it through legislation in Congress.  He 
identified corruption as a top priority and that he was 
committed to rooting it out of government.  Morales noted 
that the attitude in Bolivia has always been to take 
advantage of one's time in office to profit personally. 
Morales highlighted that the first enemy of Bolivia was not 
"neoliberalism" but rather corruption.  His goal, therefore, 
is a transparent government. 
 
5. (SBU) Chairman Engel noted that harsh things have been 
said by both the United States and Bolivia, and that what he 
hoped for was a new start.  Engel remarked that many elected 
U.S. representatives admire what Morales has been trying to 
do to help the indigenous people.  "We want to help you to 
help your people," the Chairman said.  The United States and 
Bolivia need to work through their differences, added Engel. 
The Chairman then highlighted that his entire delegation 
supports ATPDEA extension and that while he supported a 
two-year extension, it looked like the extension would be for 
ten months.  Engel then presented Morales with a copy of a 
letter, co-signed by 27 other house members, which he had 
sent to Ways and Means Committee Chairman Rangel urging 
long-term ATPDEA renewal. 
 
6. (SBU) Congressman Weller noted he was a friend of Latin 
America and a friend of Bolivia.  He shared Morales' goal of 
lifting those in poverty and praised the work of USAID, which 
he had seen first hand earlier in the day in a visit to the 
Catholic University's rural campus, which AID has supported 
with computers and a broadband internet connection.  Speaking 
as a friend of Bolivia, Weller expressed concern over 
anti-U.S. rhetoric and attacks on U.S. aid programs, noting 
that these are amplified by the media and raise concerns in 
the U.S. Congress.  Weller added that both Democrats and 
Republicans are concerned about Bolivia's evolving relations 
with Iran given Iran's support for terrorism.  Weller 
remarked that these things made it much harder to continue to 
include Bolivia in ATPDEA and that if tensions and concerns 
increase it will make the next extension that much more 
difficult.  Morales explained that his interest was in 
establishing ties with all countries as he needed foreign 
investment, which Iran had promised.  Morales said he had no 
interest in military actions and that the new constitution he 
is pushing makes that clear.  "We don't conspire," Morales 
declared.  "We have learned through the many wars we have 
lost, the Chaco War, the War of the Pacific, that we must 
reject aggression." 
 
7. (SBU) Congressman Green expressed his concern that the 
Bolivian government had frozen an exchange of diplomatic 
notes on status of forces that has stopped U.S. military 
medical assistance.  Responding to Congressmen Green, Morales 
explained that this had been done in response to a briefing 
by U.S. Southern Command's Admiral Stravidis, who Morales 
claimed had labeled him a narcoterrorist (Note: Morales, who 
said the briefing was on CNN, was referring to a briefing the 
Admiral gave at CSIS where he expressed concern about Iran's 
ongoing efforts to extend its influence in Latin America, 
specifically the potential nexus between terrorism and 
narcoterrorism while a slide of Presidents Morales and 
Ahmedinejad was up on the screen.  The Embassy has tried to 
explain that no offense was intended, but to no avail.  End 
Note.)  Morales also described how he had learned during his 
mandatory military duty at an early age that no uniformed 
foreign military should be present in Bolivia and recounted 
how "uniformed DEA had shot at us, harmed our families."  He 
added that former Ambassador Manuel Rocha had described him 
as Bin Laden and his fellow coca growers as the Taliban.  "If 
I were a murderer, terrorist, drug dealer, would you be 
meeting with me?" Morales asked. 
 
8. (SBU) Representative Hinchey praised Morales for his 
leadership.  He expressed hope that with United States help 
and support, Morales could succeed.  Hinchey added that he 
looked forward to a close relationship between the two 
countries. 
 
9. (SBU) Congresswoman Foxx remarked that she had been 
impressed by the hard working and intelligent Bolivians she 
had met during her stay.  She echoed the sentiment of various 
members of the delegation that they too had been subjected to 
searches entering the United States and asked that the 
President accept their apologies for the way his Ministers 
may have been treated but that they please recognize the 
security environment that necessitated greater vigilance. 
 
10. (SBU) Morales remarked that the discussion with the 
Congressional delegation had been constructive and that his 
best school for learning is this kind of exchange of views. 
He explained that he was for the coca leaf but against 
cocaine; that he was for the coca producer but against the 
narcotrafficker.  Morales said he was committed to the 
counter-narcotics fight and that he wanted U.S. cooperation. 
He noted that his nationalization had not been an 
expropriation, that he respected private property, and was 
keen to attract foreign investment.  He acknowledged that 
Bolivia's productive sector was a weakness but having 
achieved 4.5 percent growth in 2007, he hoped to achieve 6 
percent growth in 2008.  He worried about natural disasters 
like the current flooding and rising inflation but remarked 
that both were "imported" problems. (Note: Morales has said 
publicly that the flooding is a result of neoliberal policies 
that have led to global warming. End Note.)  He expressed 
appreciation for U.S support in the Inter-American Bank that 
had led to debt forgiveness and said he hoped problems could 
be overcome so that Bolivia could achieve a Millennium 
Challenge Account compact.  In closing, Morales commented 
that he never thought he had admirers in the United States 
and that the meeting with Codel Engel was the best he had 
ever had with an American delegation.  Morales urged that the 
United States support Bolivia's national unity. 
 
11. (SBU) Chairman Engel thanked President Morales for 
meeting with the Codel and for being so generous with his 
time.  He repeated his hope that both sides tone down the 
rhetoric, including urging a stop personal attacks on 
Ambassador Goldberg, whom he had known for many years.  The 
Chairman asked that Bolivia recognize Kosovo's newly declared 
independence.  (Note: Morales did not respond to either the 
Chairman's request that Bolivia recognize Kosovo or moderate 
its rhetoric and attacks on the Ambassador.  End Note.) 
 
Press Focus on Codel's Iran and Anti-U.S. Rhetoric Concerns 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
12. (U) Bolivian media coverage of the press conference 
following the Morales meeting focused on the delegation's 
warning that Bolivia's growing ties with Iran and increasing 
public attacks on the U.S. Embassy could damage the prospects 
for ATPDEA renewal.  In comments covered widely by local 
media and picked up by the Associated Press, Congressmen 
Weller noted, "There is a very high level of concern 
regarding the activities of Iran in Latin America.  If this 
concern continues to grow in our Congress, it will be come 
more difficult to extend these preferences in the future." 
Congressmen Weller added the delegation wanted to "help the 
people of Bolivia."  He said the announcement earlier the 
same day of Iranian financing to establish a Bolivian 
hemispheric-wide television station did not go unnoticed. 
Chairman Engel contended that although all countries are 
sovereign and are "free to decide" which countries to have 
relations with, "actions have consequences," noting Iran's 
"negative role supporting global terrorism." 
 
13. (U) Leading daily La Razon focused on Chairman Engel's 
characterization of bipartisan agreement that Bolivian 
officials need to tone down public attacks on the Embassy. 
"We Democrats and Republicans express our growing concern 
about the rhetoric about some negative things that have been 
said about U.S. officials in Bolivia and that has to stop." 
(Note: Government officials occasionally state a belief that 
relations will instantly improve with a Democratic 
administration.  End Note.)  Government-leaning daily La 
Prensa reminded their readers of prior Bolivian government 
attacks on USAID and the Ambassador.  Chairman Engel called 
on "both sides" (United States and Bolivia) to halt heated 
public exchanges. 
 
14. (U) During the press conference, Chairman Engel also 
emphasized the importance of improving bilateral relations, 
continuing ATPDEA, and underlining positive, common goals. 
"We need to talk about our two countries being partners," 
said Engel.  Chairman Engel said he was honored that 
President Morales described the meeting as the best he's ever 
had with representatives of the United States. 
 
Codel Meets with Opposition Prefects 
- - - - - - - - - - - - - - - - - - 
 
15. (SBU) On February 20, Codel Engel invited all nine of the 
prefects (state governors) to a meeting in Santa Cruz during 
their refueling stop in the lowland capital of the Department 
of Santa Cruz.  Five prefects attended: Ruben Costas of Santa 
Cruz, Manfred Reyes Villa of Cochabamba, Leopoldo Fernandez 
of Pando, Ernesto Suarez of Beni, and Jose Luis Paredes of La 
Paz.  MAS-aligned Oruro Prefect Alberto Aguilar had 
originally accepted, but was kept away by a family emergency, 
however he did attend the dinner hosted by the Ambassador the 
previous evening.  Chairman Engel opened the meeting by 
expressing to the group that he wanted to get the full 
picture of the situation in Bolivia and therefore very much 
appreciated an opportunity to meet with regional leaders. 
 
16. (SBU) Speaking on behalf of the prefects, Santa Cruz's 
Costas said, "It is very important that you met our 
president, but in the search to know other realities in 
Bolivia, we appreciate that you wanted to meet with us."  The 
prefects then gave an overview of the current political 
situation and their concerns.   Focusing primarily on what 
they see as President Morales" actions that threaten 
democracy and the rule of law in Bolivia, the prefects also 
emphasized that they are seeking a middle road, "not even 
federalism" as Santa Cruz"s Costas put it, "just an 
intermediate state" with more power and autonomy for the 
democratically elected prefects.  Costas said emphatically 
that none of the assembled prefects, despite coming from 
different parties and political backgrounds, wanted to divide 
Bolivia.  "We are all Bolivians and proud of that," he said 
to the approval of his fellow prefects.  Pando Prefect 
Fernandez also pointed out that the prefects" call for 
autonomy was not a move against President Morales, rather 
that the autonomy movement predates President Morales as 
regions farther away from the capital's centralized control 
had suffered from neglect. 
 
17. (SBU) The main concern of the prefects is what they 
consider the creeping totalitarianism of the Morales 
administration.  Pando Prefect Fernandez gave a rundown of 
the extra-legal machinations used by the MAS to push through 
their draft constitution and to get around their lack of a 
majority in the Senate (using civic groups to physically 
block access to the constituent assembly and Senate, 
respectively.)  Beni Prefect Suarez then explained that, 
since the MAS government has currently incapacitated the 
Constitutional Tribunal (the court of final recourse on 
questions of constitutionality), there is nowhere to turn 
when unconstitutional actions are perpetrated. 
 
18. (SBU) Cochabamba Prefect Reyes Villa also described how 
the MAS-led central government has pressured prefect 
governments, including Reyes Villa, calling for his 
resignation and fomenting protests in his department.  Beni 
Prefect Suarez later pointed out that, in contrast, the 
central government refused to accept the resignation of the 
Chuquisaca Prefect, because he was from the MAS party and the 
central government did not wish to lose an ally.  Suarez said 
due to pressure from the central government "we prefects have 
been forced to unite as regions to defend democracy."  Suarez 
said that the prefects are "all that remains, now that the 
opposition has been eliminated from Congress and the 
Constituent Assembly."  Suarez lamented that "our reality is 
not known outside (Bolivia), but we live it." 
 
19. (SBU) La Paz Prefect Jose Luis Paredes, who had just 
returned from Washington as part of a Bolivian delegation 
urging ATPDEA renewal, commented that Evo Morales had been 
the great hope when he was elected, but now had become part 
of the problem.  Paredes admitted he was not entirely 
comfortable with some departments pushing forward with 
autonomy statutes, but nonetheless understood why they were 
doing it.  He commended the Ambassador for his "important 
voice" standing up for Bolivian's democracy, stressing that 
defending democracy was the main goal of the prefects. 
Paredes added that while the prefects remained willing to 
continue dialogue with Evo to try to find a consensual way 
forward, he did not see any real chance for progress.  In his 
view, the government is stuck since it remains unwilling to 
budge on either the issue of resources to the prefectures or 
on amending the draft constitution to meet the opposition's 
concerns. 
 
20. (SBU) Congresswoman Foxx remarked that she admired the 
prefects' courage.  She questioned whether support for ATPDEA 
extension, while important support to the Bolivian people, 
did not also serve to help Morales.   She stressed that she 
wanted to help Bolivians, but worried about lending support 
to Morales.  "What would you like us to do?" she asked. 
Ruben Costas replied that this opportunity to meet was all 
the prefects wanted.  Ruben Costas wanted to make sure the 
Codel understood that even if the Morales government does not 
like the United States,  that does not mean the Bolivian 
people do not like us,  "Bolivians like the United States 
because we share values such as liberty and democracy." 
Costas repeated that what the prefects wanted was a united 
Bolivia. 
 
21. (SBU) In closing, the prefects again thanked the 
delegation, the Ambassador, and the mission for continued 
support of democracy in Bolivia.  Chairman Engel ended the 
meeting by noting that the prefects' perspectives were 
valuable in order for the delegation to understand the true 
situation in Bolivia.  Engel noted that he had raised 
concerns directly with President Morales, including the need 
to cease attacks against the Embassy. 
 
Media Highlight Prefects-Morales Standoff, FM Remarks 
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22. (U) The Codel held a brief press conference with Prefect 
Costas prior to departing for Argentina, expressing their 
support for the Bolivian people through support for ATPDEA, 
their desire to meet with all the prefects in the future, and 
their intent to listen to and learn from a variety of 
Bolivian leader.  Codel Engel took some general questions 
from the press, but refrained from commenting on the meeting. 
 Prefect Costas said the Codel's visit was proof of how 
democracy can work and thanked the Codel for listening to 
their analysis of the situation in Bolivia. 
 
23. (U) In comments highlighted by the press after the press 
conference concluded, prefects used the opportunity to defend 
departmental autonomy referendums against "stupid" government 
criticisms.  The Prefects of Cochabamba and La Paz 
departments also conducted a separate press conference later, 
announcing they would send representatives to a February 22 
meeting between the federal government and prefects, but that 
they would send no future delegations barring a reversal of 
the administration's redistribution of prefect funds to 
support payments to the elderly.  Daily La Prensa lumped the 
two press conferences together, possibly confusing the public 
about a cause and effect relationship between the two. 
 
24. (U) La Prensa's February 21 Codel article also added 
Foreign Minister Choquehuanca's response to the Codel's 
concern about Iranian relations, statements covered 
separately by most Bolivian media.  Inferring a direct link 
between Bolivia's relations with Iran and extension of 
ATPDEA, Choquehuanca said "Bolivia will not accept 
conditions" on ATPDEA.  "You have to respect our sovereignty 
and we will continue to build relations with respect (to 
Iran)."  He clarified that Iranian financing of a Bolivian 
television station was just an idea, not an approved project. 
 Nevertheless, Choquehuanca added any Iranian assistance to 
improve Bolivian television broadcasting capability would be 
"well received." 
 
Codel Impressed with USAID's Work 
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25. (SBU) On February 19, Codel Engel visited USAID education 
support for historically marginalized Bolivians at one of 
five Catholic University rural campuses in the altiplano and 
largely Aymara municipality of Batallas.  The atmosphere was 
festive, as CODEL members were warmly received by students 
and faculty, as well as several local authorities, including 
the Batallas mayor.  After participating in a traditional 
dance with area students, the CODEL received a short 
presentation on the Catholic University's USAID-funded broad 
band internet access, including a virtual Google Earth 
flyover of the Lake Titicaca area. The Dean of the Catholic 
University's rural programs stressed the importance of this 
I.T. support to expanding learning opportunities for area 
students and communities through greater access to electronic 
libraries. 
 
26. (SBU) Following the presentation, CODEL members spoke 
with promising rural indigenous students who are pursuing 
university studies thanks to USAID-funded scholarships, as 
well as with beneficiaries of an innovative social inclusion 
program whereby indigenous students spend up to six months as 
USAID and Embassy interns.  These students spoke to CODEL 
members about how these programs open up new opportunities 
for them, enable them to gain valuable professional 
experience, and expose them to the United States work in 
Bolivia.  CODEL members then continued their discussions with 
students and faculty while sampling a range of dairy and 
other products from the University's experimental farm. 
 
27. (SBU) CODEL members were impressed with the USG-Catholic 
University partnership and openly expressed their 
satisfaction at the opportunity to meet with indigenous 
Bolivian students and see first hand how USG programs improve 
the lives of the rural poor.  Congressman Engel gave an 
impromptu speech underscoring the United States' desire for 
continued good relations with Bolivia, including this kind of 
people-to-people support.  The event was attended by a large 
press corps who engaged the CODEL in a substantive interview 
on a wide range of bilateral issues. 
 
Codel Visit to ATPDEA Beneficiary 
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28. (U) Codel Engel visited AMETEX, a La Paz textiles 
manufacturer and main beneficiary of ATPDEA, on February 20. 
CEO of AMETEX Marcos Iberkleid expressed appreciation for 
both the Codel's support for ATPDEA extension and to USAID 
for its help over the years in training AMETEX employees. 
Iberkleid highlighted that his company's exports to the U.S. 
have grown exponentially, nearly 30 percent a year, thanks to 
ATPDEA and were currently at $40 million.  Ametex has grown 
from a mere 200 employees to 3,000, with an additional 9,000 
indirect jobs.  The Codel heard moving testimonials from five 
subcontractors/employees, including one Quechua indigenous 
woman who emphasized how ATPDEA had provided her a dignified 
job, health care, and education.  Another AMETEX worker, 
speaking on behalf of all AMETEX employees, thanked the 
United States "for giving us a hand and extending us your 
hand."  Chairman Engel addressed those present saying that 
after the Codel"s visit to AMETEX, he "felt even more 
strongly" that ATPDEA should be extended for Bolivia, adding 
that he supports its extension for two years or more.  ATPDEA 
represents support and friendship from the United States, the 
Chairman concluded. Much of the event was carried live by 
Bolivian news agencies and the Codel addressed the press 
after touring the factory. 
 
Codel Engel has cleared this message. 
GOLDBERG