Bolivians demand nationalized oil

Indigenous Bolivian demonstrators surround Murillo Square during protests in La Paz, Bolivia on Tuesday, demanding the nationalization of the country's oil industry and refusing an autonomy referendum proposed by the oil-rich region of Santa Cruz. PHOTO: AP

Thousands demonstrators blocked major roads in and around the Bolivian capital, isolating the city in a protest demanding the nationalization of the oil industry and opposing autonomy for an oil-producing region.

Police tear gas and water cannons in the streets Tuesday to disperse the demonstrators, mainly peasants who had marched for several days to La Paz to press for their demands and who were later joined by miners, students, and teachers.

Explosions be heard throughout the city from both the police tear gas canisters and dynamite sticks traditionally used by Bolivian miners. There were no reports of injuries or arrests.

Police off the central Murillo Plaza, site of the presidential palace and Congress, preventing demonstrators from reaching the area. In the neighboring city of El Alto, protesters blocked the road between La Paz and the airport as well as several connecting the capital with other cities.

At dusk, demonstrators began to retreat and the blockades were lifted. They were expected to resume their protest and blockades yesterday.

A key leader of the protests is Congressman Evo Morales, whose Movement Toward Socialism party has demanded higher taxes on foreign oil companies than the 50 percent established in a law passed by congress. Morales also wants President Carlos Mesa to send troops to occupy the oil installations, claiming the contracts between the foreign companies and the government are invalid because they lack congressional approval. Many demonstrators have more radical positions, demanding nationalization of the oil industry. The protesters are also opposed to an autonomy drive by Santa Cruz, Bolivia's richest region and the site of its oil industry.

Army General Marcelo Antezana said Tuesday his institution does not oppose greater autonomy for the regions but rejects "the division of our country.''

He dismissed reports that the continued political tension may lead to a coup, saying the military maintains "a policy of respect for constitutional order.''