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### Viewing cable 08LAPAZ1667, A/S SHANNON MEETING WITH PRESIDENT EVO MORALES

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08LAPAZ1667 | 2008-08-04 17:05 | 2010-12-03 21:09 | CONFIDENTIAL | Embassy La Paz

`

    VZCZCXRO2966
    PP RUEHLMC
    DE RUEHLP #1667/01 2171730
    ZNY CCCCC ZZH
    P 041730Z AUG 08
    FM AMEMBASSY LA PAZ
    TO RUEHC/SECSTATE WASHDC PRIORITY 8143
    INFO RUEHAC/AMEMBASSY ASUNCION 8206
    RUEHBO/AMEMBASSY BOGOTA 5562
    RUEHBR/AMEMBASSY BRASILIA 9501
    RUEHBU/AMEMBASSY BUENOS AIRES 6721
    RUEHCV/AMEMBASSY CARACAS 3817
    RUEHPE/AMEMBASSY LIMA 4101
    RUEHME/AMEMBASSY MEXICO 2289
    RUEHMN/AMEMBASSY MONTEVIDEO 5653
    RUEHQT/AMEMBASSY QUITO 6436
    RUEHSG/AMEMBASSY SANTIAGO 1166
    RUEHGL/AMCONSUL GUAYAQUIL 0856
    RUEHRI/AMCONSUL RIO DE JANEIRO 1011
    RUEHSO/AMCONSUL SAO PAULO 2286
    RUEAIIA/CIA WASHINGTON DC
    RUEHUB/USINT HAVANA 1321
    RUEHBS/USEU BRUSSELS
    RHMFISS/HQ USSOUTHCOM MIAMI FL
    RUMIAAA/USCINCSO MIAMI FL
    RUEHLMC/MILLENNIUM CHALLENGE CORP
    RUEATRS/DEPT OF TREASURY WASHINGTON DC
    RHEHNSC/NSC WASHINGTON DC

` `

    C O N F I D E N T I A L SECTION 01 OF 03 LA PAZ 001667

    SIPDIS

    PASS TO USAID/LAC DAVID JOHNSON, JOANN LAWRENCE

    E.O. 12958: DECL: 08/05/2018
    TAGS: ASEC EAID ECON PGOV PREL PTER SNAR BL
    SUBJECT: A/S SHANNON MEETING WITH PRESIDENT EVO MORALES

    REF: LA PAZ 1498

    Classified By: Amb. Philip S. Goldberg for reasons 1.4 (b) and (d).

    ¶1. (C) Summary: WHA A/S Shannon, accompanied by INL PDAS
    McGlynn, the Ambassador, DCM, and Emboff, met at 5 a.m. on
    July 23 with Bolivian President Evo Morales, who was
    accompanied by Foreign Minister David Choquehuanca, Minister
    of Government Alfredo Rada, Presidential Spokesman Ivan
    Canelas, and Bolivian Ambassador to the U.S. Mario Gustavo
    Guzman. Morales expressed his regret for the June 9 march on
    the Embassy and its aftermath and acknowledged that Bolivia
    "needs" the U.S. However, he also cited "proofs" of a USG
    conspiracy against him and his government. Assuring Morales
    that there was no USG conspiracy against him, A/S Shannon
    agreed that the two countries should work together to build a
    climate of confidence, using bilateral consultations as a
    mechanism to achieve this end. After the Morales meeting A/S
    Shannon and delegation held meetings with Bolivian Senate
    President Oscar Ortiz and President of the Congress Edmundo
    Novillo. End summary.

    EVO FEARS A CONSPIRACY
    ----------------------

    ¶2. (C) President Morales opened the meeting by saying he
    viewed this as a chance to improve relations with the USG.
    Evo said he wanted to be "sincere" and to say up front "I do
    not believe in the capitalist system." He remarked that his
    government is one of dialogue and then went on to talk
    about his belief that the United States was conspiring
    against his government. Morales complained that "since the
    90s the Department of State has described me as a
    narco-trafficker as a narco mafia, and I have been called the
    Andean Bin Laden" by former Ambassador Rocha. He then cited
    a litany of events that he argued proved the hostile intent
    of the United States. Morales also expressed concern about
    how USAID's resources are spent. Morales said he had been
    told that USAID offers money to Movement Toward Socialism
    (MAS) mayors for them to switch to opposition party Podemos.
    According to Morales, "Bolivian employees of USAID go
    door-to-door in northern Potosi telling people if they get
    rid of Evo the economy is going to get better." Evo said
    that one mayor told him that USAID offered him $15,000 to
    $25,000 dollars to oppose Evo. Evo closed his opening
    remarks by saying "currently there is a conspiracy led by the
    U.S. Embassy against my security, against my government.

    A/S SHANNON RESPONDS
    --------------------

    ¶3. (C) A/S Shannon said that the United States was
    committed to the success of Bolivian democracy and the
    Bolivian people and had no interest that would justify a
    conspiracy against the Morales government. He noted that he
    had no interest in receiving Morales, list of supposed
    conspiratorial behavior, but rather would like to point out
    how the USG has been trying to work with the Morales
    administration. Shannon mentioned President Bush's
    congratulatory phone call after Morales' election and the
    meeting held with Secretary Rice. The A/S highlighted how
    the USG has modified its anti-narcotics tactics to work with
    the GOB, re-certified the GOB, and extended ATPDA benefits.
    He also noted that the USG had worked with multilateral
    development banks to forgive $1 billion in loans owed by
    Bolivia. Shannon told Morales that "we have no interest in
    creating conflicts or political chaos in Bolivia. Our
    Ambassador and officers will meet with various groups, but it
    is not to conspire against you." Shannon said that Bolivia

    LA PAZ 00001667 002 OF 003

    and the United States are in a "critical moment in our
    relationship" and that he wanted security guarantees for
    USAID and the Peace Corps so as "to be able to continue with
    these programs."

    STOP THE CONSPIRACY AND GIVE US THE CASH
    ----------------------------------------

    ¶4. (C) President Morales responded that "if the conspiracy
    stops then we can begin a new relationship based on our
    proposed agenda." Evo said that "only 20% to 30% of USAID
    money reaches the people, why don't you support the 'Bolivia
    Cambia, Evo Cumple' (Bolivia Changes, Evo Delivers) program
    instead?" Evo insisted that the Venezuelan-supported program
    is "sound and transparent" and that USAID should redirect its
    money there. The president brought up ATPDA and asked for a
    five year extension and an eventual "just and beneficial"
    long term trade deal. With regard to Millennium Challenge
    Account (MCC), Evo asked the A/S "to just tell me the truth"
    about the political decision to freeze the program. Morales
    said that Brazil and Hugo Chavez are allies that will help
    with the road projects but that he hasn't given up hope on
    MCC.

    DRUGS, USAID, AND THE CHAPARE
    -----------------------------

    ¶5. (C) Morales complained that people are trying to link
    his government to the FARC and that his government is not
    being noticed for its respect for human rights. Evo told
    Shannon, "I recognize that in the Yungas there has been an
    increase in coca production. For political reasons there is
    not much we can do." Morales also said that he regrets the
    amount of drugs leaving the country. He criticized
    USAID's involvement in the Chapare, saying that USAID set up
    parallel organizations to the coca unions and that it works
    with local mayors against the coca federation. The president
    says that he receives letters "from all over the country
    asking me to remove USAID."

    AMERICAN JUSTICE
    ----------------

    ¶6. (C) Evo said that people speak well of the American
    justice system so therefore he "cannot believe that you would
    have those two delinquents (Sanchez de Lozada and Sanchez
    Berzain) there. "People are upset, you should expel them. I
    tell you this, send back Goni and you will become the mayor
    of El Alto."

    CHOQUEHUANCA SPEAKS
    -------------------

    ¶7. (C) Foreign Minister Choquehuanca said "we want to
    reestablish confidence. We want American cooperation to be
    strictly economic and to be part of the 'Bolivia Cambia, Evo
    Cumple' program." Choquehuanca said the GOB was finishing
    the Sanchez de Lozada (Goni) extradition request and that it
    should be ready by August. He asked that Bolivia be
    re-certified and that "our efforts be recognized, especially
    our respect for human rights." The Foreign Minister
    mentioned establishing exchange programs because the current
    USG programs "are not transparent and we are suspicious when
    scholarship students are asked to spy on us."

    LET'S START ANEW
    ----------------

    ¶8. (C) A/S Shannon ended the meeting by saying that we

    LA PAZ 00001667 003 OF 003

    would study the GOB's proposed agenda and add our own points.
    He suggested that subsequently dates for bilateral
    consultations could be established. Evo said that his friend
    President Lula gave him some good advice, "have lots of
    patience. If you tell me to separate out the conspiracies
    than that's what we will do. We will not break relations.
    We will continue to put up with and bear these things. I
    regret that my brothers and sisters from El Alto went down to
    the Embassy (to try and break into the compound on June 9)
    and I recognize that my country needs you."

    SENATE PRESIDENT OSCAR ORTIZ
    ----------------------------

    ¶9. (C) Immediately following the Morales meeting A/S
    Shannon and delegation met with Senate President Oscar Ortiz
    (Podemos - Santa Cruz). Ortiz stressed the importance of the
    senate being "one of the only institutions not in the hands
    of the MAS." He told Shannon that "democracy is under heavy
    attack" and that time is passing by quickly. The August 10
    revoking referendum "will only ratify the deep divisions in
    the country and Evo will lose in five departments." The
    senator expressed concern about "overt" Venezuelan influence
    and the possibility of voter registration fraud. He
    chastised the OAS for "coming here last week and making
    irresponsible declarations regarding voter registration
    records." Ortiz predicted that "eventually the economic
    crisis in the country will overtake any political crisis."
    When asked about dialogue to find a solution to the current
    political crisis Ortiz responded that the opposition wanted a
    solution through dialogue and that he had spoken to Vice
    President Garcia Linera about this. "However," Ortiz said,
    "it takes two to tango." He hopes the "friends of Bolivia"
    would be expanded to include the European Union and lamented
    the increase in drug trafficking and the fact that "the
    Brazilians and the European Union tolerate it."

    PRESIDENT OF THE CONGRESS EDMUNDO NOVILLO
    -----------------------------------------

    ¶10. (C) A/S Shannon also met with the President of the
    Congress Edmundo Novillo (MAS - Cochabamba). Novillo said
    that the August 10 referendum "will not solve the political
    crisis" and that the people do not understand what it is
    because "a revoking referendum is something new for the
    country." He admitted that "this process of change has
    generated uncertainty." When asked what role the congress
    could play in resolving the crisis Novillo was pessimistic,
    saying that "the polarization is strong, too strong, within
    the congress." Regarding Bolivia - U.S. relations Novillo
    said he thought it is a good time to reevaluate all aspects
    of the relationship with an eye toward common interests. He
    said the U.S. should realize "there are suspicions within the
    government and within the population because the
    relationships with past governments." Novillo said that
    anti-narcotics cooperation "is a difficult topic" and that it
    is necessary to have a mutually agreed upon agenda. He
    recognized that USAID's alternative development programs have
    had "a certain amount of success" but that the money could
    and should be better invested.

    ¶11. (U) Assistant Secretary Shannon has cleared this cable.
    GOLDBERG

`