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### Viewing cable 07LAPAZ2400, OPPOSITION, OTHERS DEFEND US AID

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07LAPAZ2400 | 2007-08-30 21:09 | 2010-12-03 21:09 | CONFIDENTIAL | Embassy La Paz

`

    VZCZCXRO4952
    PP RUEHLMC
    DE RUEHLP #2400/01 2422118
    ZNY CCCCC ZZH
    P 302118Z AUG 07
    FM AMEMBASSY LA PAZ
    TO RUEHC/SECSTATE WASHDC PRIORITY 4852
    INFO RUEHAC/AMEMBASSY ASUNCION 7042
    RUEHBO/AMEMBASSY BOGOTA 4410
    RUEHBR/AMEMBASSY BRASILIA 8303
    RUEHBU/AMEMBASSY BUENOS AIRES 5534
    RUEHCV/AMEMBASSY CARACAS 2761
    RUEHGE/AMEMBASSY GEORGETOWN 0399
    RUEHPE/AMEMBASSY LIMA 2942
    RUEHMN/AMEMBASSY MONTEVIDEO 4823
    RUEHPO/AMEMBASSY PARAMARIBO 0097
    RUEHQT/AMEMBASSY QUITO 5395
    RUEHSG/AMEMBASSY SANTIAGO 0003
    RUEHKO/AMEMBASSY TOKYO 0326
    RUEHLMC/MILLENNIUM CHALLENGE CORP
    RUEHC/DEPT OF LABOR WASHINGTON DC
    RUEHUB/USINT HAVANA 0509
    RUEATRS/DEPT OF TREASURY WASHINGTON DC
    RHMFISS/HQ USSOUTHCOM MIAMI FL
    RUEHBS/USEU BRUSSELS
    RUMIAAA/USCINCSO MIAMI FL
    RHEHNSC/NSC WASHINGTON DC

` `

    C O N F I D E N T I A L SECTION 01 OF 03 LA PAZ 002400

    SIPDIS

    SIPDIS

    E.O. 12958: DECL: 08/30/2017
    TAGS: ECON PGOV PREL PHUM EAID BL
    SUBJECT: OPPOSITION, OTHERS DEFEND US AID

    REF: A. LA PAZ 2387
    ¶B. LA PAZ 2386

    Classified By: A/DCM Mike Hammer for reasons 1.4 (b) and (d).

    - - - -
    Summary
    - - - -

    ¶1. (U) Following Minister of the Presidency Quintana's August
    29 attacks on USAID in which he accused the USG of supporting
    the opposition and told USAID to get in line with government
    policies or leave the country, the opposition, NGOs and
    pundits are defending USAID and criticizing the government
    for the unwarranted attack. The official State Department
    response to the Bolivian government's accusations has
    received wide coverage, and many editorials are suggesting
    that the MAS attack on USAID is a smokescreen to cover recent
    domestic problems including civic strikes, rising inflation
    and Venezuelan cash assistance.

    - - - - - - -
    Blowing Smoke
    - - - - - - -

    ¶2. (U) Many political commentators and opposition
    politicians have drawn attention to the timing of Minister
    Quintana's diatribe, coming as it did only a day after six of
    Bolivia's nine departments shut down in strikes against the
    ruling MAS government. The head of the opposition party
    National Unity (UN) Samuel Doria Medina said, "It's an old
    method of (Hugo) Chavez. Every time he has a domestic
    problem, he insults the U.S. government and fights with them.
    It's no coincidence that on Tuesday there was a massive
    strike against the government of Evo Morales, and that now
    Quintana comes out to tell lies and hoaxes." In the words of
    Carlos Hugo Molina, one of the former government officials
    (under Goni Sanchez de Lozada) listed by Quintana as evidence
    that USAID is financing the "old way" and the opposition:
    "They are trying to scare us...this should be denounced at
    international levels." Another USAID contractor, Juan Carlos
    Urenda (a Santa Cruz civic leader) described the MAS
    accusations as an attempt to cast a smokescreen over the
    "serious problems in this country," and opined that this was
    "another mistake of the government that will do no less than
    deepen the differences and confrontations in the country."

    - - - - - - - - - - - - - - - - - - - - - - - - - - -
    Pay No Attention to the Venezuelan Behind the Curtain
    - - - - - - - - - - - - - - - - - - - - - - - - - - -

    ¶3. (C) On August 29, as Minister Quintana criticized USAID's
    "flagrant interference in Bolivian politics", President
    Morales was handing out Venezuelan checks to mayors in the
    department of La Paz. In the past, President Morales has
    publicly called for European, Japanese and U.S. aid to be
    more like Venezuelan aid, which in practice would mean almost
    no accountability or transparency. In his attack on USAID,
    Minister Quintana praised European aid for being transparent
    and for following Bolivian laws. Although Quintana did not
    directly mention Venezuelan aid, the MAS is clearly
    responding to criticism of the increasing Venezuelan
    influence in the country. The official government news
    source ABI on August 30 ran an article describing how
    President Morales has been handing out "cooperation checks"
    from Venezuela and Europe. This attempted conflation of
    Venezuelan and European aid seems to be a MAS attempt to both
    isolate the United States and justify its acceptance of
    increasing Venezuelan involvement in the country. Following
    Quintana's presentation, Vice President Garcia Linera
    announced that the Bolivian government will push for a new
    law to control the destination of international aid and will

    LA PAZ 00002400 002 OF 003

    investigate the programs of all international aid in Bolivia.

    - - - - - - - - - - - - - - - - - - - - - -
    Biting the Hand that Continues to Feed You
    - - - - - - - - - - - - - - - - - - - - - -

    ¶4. (U) Many Bolivians are concerned about the more immediate
    and concrete impact that could result from poking a stick at
    the United States. The Bolivian External Trade Institute
    (IBCE) is concerned for the future of ATPDEA, pointing out
    that Bolivia is even now preparing a proposal for the
    extension of ATPDEA trade preferences. IBCE head Gary
    Rodriguez stated, "We understand that the (Bolivian)
    Government doesn't need trade preferences, but the workers do
    need them, as do entrepreneurs who seek to consolidate and
    not lose free access for their exports."

    ¶5. (C) More directly, many observers are pointing out that
    Bolivia cannot afford to risk USD120 million in assistance
    from USAID. Few are suggesting that all USAID assistance
    could be lost, but concerns are rife that funding could be
    reduced in the future. While Morales and the MAS may be
    willing to wave goodbye to our assistance, other officials
    either doubt that Venezuela will step up to completely fill
    the gap or, pragmatically, see a benefit in receiving as much
    aid as possible from various sources. (Comment: At a time
    when Vice President Linera is heading to Washington to, among
    other issues, push for Millennium Challenge aid to Bolivia
    and a continuation of ATPDEA trade benefits, the timing of
    the attacks against the USG seems self-defeating. End
    comment.)

    - - - - - - - - - - - - - -
    Next Target: NAS Assistance
    - - - - - - - - - - - - - -

    ¶6. (C) Minister Quintana also announced his "suspicions of
    U.S. double morality" in the fight against drugs, questioning
    the U.S. focus on cocaine in Bolivia while claiming that
    marijuana is not part of counternarcotics programs here.
    Quintana said that the Bolivian government is investigating
    NAS assistance and will publish their findings in the
    following weeks. (Comment: It is understandable that a
    government whose president is also the head of the
    coca-growers union would turn its sights on NAS's programs.
    Considering the egregious accusations that the Bolivian
    government has just leveled at USAID, we expect that their
    'investigation' of NAS will be equally rigorous. End
    comment.)

    - - - -
    Comment
    - - - -

    ¶7. (C) In the wake of Quintana's press conference, USAID has
    received an outpouring of support. Many partner NGOs are
    publicly challenging the government's accusations, and some
    have requested more information from USAID in order to
    repudiate the MAS stance. Morale in USAID could take a hit,
    particularly among the Bolivian locally-engaged staff, some
    of whom fear that after Quintana's threats and insinuations
    about 'traitors' who 'sell out their country', they may be
    targeted by the MAS in the future. Their fears are not
    unfounded, considering that Quintana named USAID contractors,
    listed their posts in previous governments, and accused them
    of working against the MAS program of change. To address
    initial concerns and assure employees of USG support, USAID
    held an all-hands staff meeting right after Quintana's press
    briefing. The Ambassador will hold a mission wide townhall
    meeting immediately upon his return to La Paz.

    LA PAZ 00002400 003 OF 003

    URS

`