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### Viewing cable 07LAPAZ597, MORALES TO TOBIAS: THANKS FOR THE ASSISTANCE

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07LAPAZ597 | 2007-03-02 20:08 | 2010-12-03 21:09 | CONFIDENTIAL | Embassy La Paz

`

    VZCZCXYZ0001
    PP RUEHWEB

    DE RUEHLP #0597/01 0612038
    ZNY CCCCC ZZH
    P 022038Z MAR 07
    FM AMEMBASSY LA PAZ
    TO RUEHC/SECSTATE WASHDC PRIORITY 2707
    INFO RUEHAC/AMEMBASSY ASUNCION 6602
    RUEHBO/AMEMBASSY BOGOTA 3923
    RUEHBR/AMEMBASSY BRASILIA 7811
    RUEHBU/AMEMBASSY BUENOS AIRES 5057
    RUEHCV/AMEMBASSY CARACAS 2292
    RUEHPE/AMEMBASSY LIMA 2390
    RUEHMD/AMEMBASSY MADRID 3355
    RUEHMN/AMEMBASSY MONTEVIDEO 4458
    RUEHQT/AMEMBASSY QUITO 4933
    RUEHSG/AMEMBASSY SANTIAGO 9521
    RUEHUB/USINT HAVANA 0191
    RHMFISS/HQ USSOUTHCOM MIAMI FL
    RUMIAAA/USCINCSO MIAMI FL
    RHEHNSC/NSC WASHINGTON DC

` `

    C O N F I D E N T I A L LA PAZ 000597

    SIPDIS

    SIPDIS

    E.O. 12958: DECL: 03/03/2017
    TAGS: ECON PGOV PREL SNAR BL
    SUBJECT: MORALES TO TOBIAS: THANKS FOR THE ASSISTANCE

    Classified By: DCM Kris Urs for reasons 1.4 (b) and (d).

    --------
    SUMMARY
    --------

    ¶1. (C) As part of Director of Foreign Assistance and USAID
    Administrator Randall Tobias' visit to Bolivia, President
    Morales met with Tobias, WHA PDAS Charles Shapiro, and
    Ambassador Goldberg early March 2. Morales thanked
    Ambassador Tobias for U.S. natural disaster assistance,
    saying that this year's flooding is the worst Bolivia has
    seen in 60 years. On the bilateral relationship in general,
    Morales said Bolivia wants an "excellent relationship" with
    the United States. Ambassadors Tobias and Shapiro offered
    support for Bolivia's goal of a more inclusive society, but
    Tobias noted that the goal should be placed in the context of
    a democracy that includes all Bolivians. Morales asked for
    aid in creating jobs and improving infrastructure and said he
    has "great interest" in the Millennium Challenge Account
    (MCA) and in an additional ATPDEA extension. Morales
    described Bolivia's many marches and blockades as largely
    local problems and accused opposition party Podemos of
    organizing them and plotting against his government. Morales
    thanked Ambassador Tobias for USAID assistance, highlighting
    alternative development and infrastructure programs in
    particular. Ambassador Tobias noted both countries' interest
    in close counternarcotics cooperation and acknowledged the
    GOB's interdiction efforts; Morales responded by saying his
    government is serious about fighting narcotics trafficking.
    Morales spoke in terms of a net reduction of coca and said
    his government plans to work harder in the Yungas; he also
    stressed the GOB's desire for closer counternarcotics
    cooperation with the United States. In an unprecedented move,
    Morales joined Tobias for a joint press conference following
    the meeting and publicly thanked the USG for disaster
    assistance and general cooperation. In perhaps the Embassy's
    most positive meeting with Morales to date, the president
    repeatedly thanked Tobias (both privately and publicly) for
    U.S. assistance and seemed to appreciate the finer points of
    USAID operations in Bolivia. End summary.

    -------------------
    DISASTER ASSISTANCE
    -------------------

    ¶2. (C) As part of Director of Foreign Assistance and USAID
    Administrator Randall Tobias' visit to Bolivia, President
    Morales (along with Amcit MFA trade advisor Tom Kruse) met
    with Tobias, WHA PDAS Charles Shapiro, and Ambassador
    Goldberg early March 2. Morales thanked Ambassador Tobias
    for U.S. natural disaster assistance, saying that this year's
    flooding is the worst Bolivia has seen in 60 years. Morales
    said he is "very grateful" for the international cooperation
    Bolivia has received. Ambassador Tobias conveyed the
    sympathy of the American people for Bolivia's flooding
    victims and informed Morales that two relief planes will
    arrive March 5 to provide additional assistance. Tobias said
    the USG is glad to have the opportunity to help Bolivia in
    its time of need. Morales thanked Tobias for two additional
    plane loads of assistance and said food rations and donations
    will be needed for approximately six months in some areas,
    until Bolivians can begin to recover from the disasters.

    -------------------------
    BILATERAL RELATIONSHIP
    -------------------------

    ¶3. (C) On the bilateral relationship in general, Morales said
    he wants an "excellent relationship" with the United States.
    He explained that Bolivia has a culture of dialogue and that
    debate is welcome. Morales said that while sometimes the
    press wants to generate conflict between us, he wants the
    "maximum level of cooperation with the USG." He acknowledged
    that the United States is the most developed country in the
    world, but noted that the United States faces environmental
    challenges, implying that the United States could learn from
    the Bolivians about how to live at peace with nature.
    Ambassadors Tobias and Shapiro offered support for Bolivia's
    goal of a more inclusive society, but Tobias noted that the
    goal should be placed in the context of a democracy that
    includes all Bolivians. Ambassador Tobias emphasized the
    long relationship between Bolivia and the United States,
    which he said the United States values and wants to continue.
    Tobias told Morales that the United States and Bolivia have
    many things in common, and that they should continue to work
    to find common interests.

    ¶4. (C) Morales asked for aid in creating jobs and improving
    infrastructure and said he has "great interest" in the
    Millennium Challenge Account (MCA) (particularly for a
    highway from La Paz to Pando via Beni) and in an additional
    ATPDEA extension. Morales thanked Tobias for Congress'
    extension of ATPDEA benefits and said Bolivia wants commerce
    with the United States so it can export goods to the U.S.
    market. He noted that as developed and developing countries,
    the United States and Bolivia complement each other well.
    Morales also acknowledged the United States' prominent role
    in international institutions including the World Bank and
    the IDB, and said he was grateful for that assistance.
    Morales said Bolivia's macroeconomic stability has improved
    overall, largely due to increased hydrocarbons revenues, but
    not enough to create sufficient jobs. He also pointed out
    that his government's hydrocarbons' nationalization did not
    include expropriation of property or assets. Ambassador
    Tobias responded by saying that the USG is working hard to
    improve lives, create jobs and increase investment in
    Bolivia. We recognize that a stable economy is key to those
    goals, he said. Tobias also encouraged Morales to
    aggressively pursue a MCC proprosal. He emphasized that his
    visit should be read as a strong signal that the United
    States wants to work with Bolivia toward these goals.

    -------------
    SOCIAL UNREST
    -------------

    ¶5. (C) Morales described Bolivia's many marches and blockades
    as largely local problems and accused opposition party
    Podemos of organizing them and plotting against his
    government. He said that in contrast to protests over the
    past year, the marches he led prior to becoming president
    were "apolitical"-- in support of human rights, coca, and
    other causes. He said the Bolivian people received his
    marches warmly by supporting the marchers and providing them
    with food. Morales lamented the most violent conflict in his
    administration to date-- the October 2006 conflict between
    miners in Huanuni. Before the conflict, Morales said he
    personally met with miners more than 15 times. He said he
    told both sides that he would work to help them but that they
    would have to work together. Morales regretted that they
    couldn't, calling the violence the "worst moment" in his
    administration.

    --------------
    USAID SUPPORT
    --------------

    ¶6. (C) Morales thanked Ambassador Tobias for USAID
    assistance, highlighting alternative development programs in
    particular. He noted the current high prices for
    Chapare-produced palm hearts, as well as the GOB's desire to
    export more bananas. Morales said Bolivia wants to export
    alternative development products, as successes in alternative
    development reduce coca cultivation. He mentioned the
    importance of a good infrastructure for alternative
    development projects, and thanked Tobias for USAID assistance
    in constructing a road in the Chapare. While stating that
    the GOB "wants to maximize U.S. cooperation," Morales
    suggested that USAID assistance could be more efficient. He
    said that for the cost of one USAID-constructed soccer field,
    the GOB could have built three. (NOTE: Morales made this
    argument previously and Ambassador Goldberg responded via
    letter to explain that our numbers indicated otherwise).
    Morales also mentioned health and education as critical areas
    for international cooperation in Bolivia.

    ¶7. (C) After expressing gratitude for USAID assistance,
    Morales indicated that he would prefer that international
    assistance be donated to the central government, not
    Bolivia's prefects or mayors. He said he would like to
    establish a type of open registry to monitor aid, not for
    purposes of controlling it but for the benefit of Bolivia's
    development process. He said it would be useful to know the
    amount of USAID assistance in Bolivia and what the money is
    spent on.

    --------------------
    COCA: MORE IS LESS?
    --------------------

    ¶8. (C) Ambassador Tobias highlighted both countries' interest
    in close counternarcotics cooperation and acknowledged the
    GOB's interdiction efforts. He said that while the United
    States remains concerned that any increase in coca
    cultivation will go to the illegal drug trade, he looked
    forward to continuing to work through those issues with the
    GOB. Morales responded by saying his government is serious
    about fighting narcotics trafficking. He said that although
    he has been accused of being a narcotrafficker, the GOB
    policy is "zero cocaine, zero drugs." He said in Bolivia,
    "one can't talk about zero coca." At the same time, he said,
    his government's respect for the traditional use of coca does
    not imply unrestricted growth. Morales also explained that
    cocaine is not part of Bolivia's indigenous culture.

    ¶9. (C) In giving Ambassador Tobias some of his personal
    history, Morales said he was not born a cocalero but moved to
    Chapare in 1979-80 after completing his mandatory military
    service. His family, he said, focused on rice production but
    also grew a few catos of coca on the side. Because of
    globalization and increased international trade in the
    1980's, Brazilian rice became cheaper than Bolivian rice,
    thus damaging his family's business. He recounted that in
    those years of hyperinflation, people had to sell large
    bundles of bananas to buy a coke or a beer. Morales said
    eradication with government compensation failed because
    people became accustomed to being paid large sums of money,
    "like by a bank." In Morales' opinion, militarization also
    failed, as it led to permanent confrontation without results.
    These failures, Morales said, led him to suggest one cato of
    coca per affiliate to limit production of coca and to prevent
    conflict. He said that when he speaks to the Six Federations
    (the main coca labor organization in the Chapare), he tells
    them if they fail to respect the cato of coca, the GOB will
    have to return to militarization. He said this serves as a
    strong deterrent.

    ¶10. (C) Regarding the GOB's future plans, Morales spoke in
    terms of a net reduction of coca and said his government
    plans to work harder in the Yungas (particularly in La Asunta
    and in Caranavi). He also stressed the GOB's desire for
    closer counternarcotics cooperation with the United States.
    Morales lamented a lack of progress in the Yungas but said he
    hoped the situation would improve. He thanked the USG for
    its help eradicating in Bolivia's national parks, calling
    counternarcotics a "shared responsibility." Morales,
    however, also defended the GOB's proposal to raise the legal
    limits of coca production to 20,000 hectares, saying it is
    "impossible to guarantee 10,000- 12,000 hectares of coca" but
    that 20,000 hectares is a more realistic goal. Likewise, he
    defended the GOB's human rights-conscious policy of
    "rationalization," or voluntary eradication, stating that
    statistics show that the process is more effective if it is
    voluntary. While Morales admitted increased coca cultivation
    in some areas, he maintained those cases are the exception
    and not the rule. Morales said he knows if he fails, the
    United Nations and United States will be watching. In
    response to Ambassador Tobias' inquiry about how much coca
    should be approved for traditional uses under ideal
    circumstances, Morales replied "less than 20,000 hectares."
    He admitted, however, that the European Union's legal demand
    study was "stuck." Overall, Morales said, he is optimistic
    about the GOB's ability to fight narcotics trafficking,
    having met its obligations in 2006.

    ---------------------------------------------
    A FIRST JOINT PRESS CONFERENCE WITH MORALES
    ---------------------------------------------

    ¶10. (SBU) In an unprecedented move, Morales joined Tobias for
    a joint press conference following the meeting. Morales
    stated publicly that he was "very happy" with the meeting,
    and publicly thanked the USG for disaster assistance (noting
    that more would arrive next week) and general cooperation.
    Morales said the GOB's dialogue with the United States was
    important to Bolivia and that it would continue. Morales
    emphasized the GOB's "culture of dialogue" and its respect
    for differences with other countries. Additionally, in
    response to questions about the release of the INCSR report
    March 1, Morales said that he respected the report as an
    internal evaluation of our government, but that GOB
    statistics on counternarcotics progress were very different.

    ---------
    COMMENT
    ---------

    ¶11. (C) In perhaps the Embassy's most positive meeting with
    Morales to date, the president repeatedly thanked Tobias
    privately and publicly for U.S. assistance. Morales seemed
    to appreciate the finer points of USAID operations in Bolivia
    and to have a superficial understanding of U.S. concerns on
    counternarcotics (as reflected by his discussion of a net
    reduction of coca). On trade, Morales clearly wants an
    ATPDEA extension, as further evidenced by Foreign Minister
    Choquehuanca's late February trip to Washington, but again
    made no mention of a concrete free trade proposal. While it
    seems that Morales may be warming to the benefits of a good
    bilateral relationship, his willingness to cooperate on the
    more difficult issues and to deliver solid political,
    economic, and counternarcotics policies may still be another
    matter. End comment.

    This cable has been cleared by Ambassadors Tobias and Shapiro.
    GOLDBERG

`