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Bolivian official warns of efforts at destabilization

Bolivia's defense minister backed accusations by President Evo Morales that some multinational energy companies and political rivals were conspiring to destabilize his new leftist government.

"There are indications that a foreign multinational could be financing a slow and gradual, but systematic, process of destabilization," said Defense Minister Walker San Miguel said on Wednesday, without naming any companies.

The conspiracy is seeking to "weaken the president, to say he's a short-lived, circumstantial leader without the ability to govern," San Miguel said.

He said there still is no strong proof of the alleged plot or knowledge of whether the plotters are operating in Bolivia or abroad. But he said members of the main opposition party led by former president Jorge Quiroga are linked to it.

Morales, who has been in office just over two weeks, has promised to increase state control of Bolivia's vast natural gas reserves and renegotiate contracts with several multinational energy firms.

ENERGY RESOURCES

Bolivia is one of the poorest countries in South America but it has the largest natural gas reserves after Venezuela. Multinational companies have invested US$3.5 billion in the country.

Morales said Tuesday night that Venezuelan President Hugo Chavez's recent warnings that the US government was planning to destabilize his government "have not been in vain."

The potential plot is not related to Chavez's accusations, according to San Miguel, as internal Bolivian intelligence does not point to US involvement.

On Tuesday, Morales said he had been informed that certain preparations were underway against his government "and we'll assume the responsibility when it's time to take action."

US AID CUT

In other news, the Bush administration is planning to cut military aid to Bolivia by 96 percent. In the current fiscal year that began Oct. 1, 2005, Bolivia is to receive about US$1.7 million. Next year, according to the budget proposal, Bolivia would get only US$70,000.

While the amount of aid is small, much of the money is used to train Bolivian military officers in the US and so the cut holds the potential to anger Bolivia's powerful military establishment, which has been responsible for a long history of coups.

The State Department said the military aid is being cut because of a law that says Washington must end military assistance to countries that have failed to ratify a pledge not to extradite Americans to the International Criminal Court.

The Bush administration does not recognize the international court as legitimate.

Bolivia and five other countries -- Romania, Bahrain, Kyrgyzstan, Ethiopia and Jordan -- have signed the agreement but not ratified it in their legislatures. The US waived the requirement for the other five countries, leaving their military aid at roughly the same level as in previous years.

Morales has upset the US by promising to end US-financed programs to eradicate Bolivia's coca crop.

US officials fear that farmers in Peru and other coca-producing states could demand their governments do the same, which could lead to a flood of cheap cocaine in the Americas and Europe.
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