MercoPress. South Atlantic News Agency

A “constitutional” solution to Bolivian crisis seems closer

The two junior partners of the ruling coalition in Bolivia ratified their support of embattled President Gonzalo Sánchez de Lozada facing one of the country's most serious civil uprisings and who has resorted to the Army to restore law and order in the capital La Paz.

The support however is conditioned to the convening of a Constitutional Assembly that should help solve the core of the protest: the government's decision to sell oil and gas from the country's rich deposits to United States and building a pipeline to transport it across Chilean territory.

The protests initiated five weeks ago have so far left a toll of over 60 people killed --26 over the weekend, "black Sunday"-- and have virtually strangled La Paz from the rest of the country with barricades impeding the supply of perishables and fuel. Actually this weekend the Army began escorting fuel convoys into La Paz that faced strong resistance from workers and peasants but were repealed with gunfire.

Jaime Paz Zamora, head of one of the junior coalition partners stressed that "a Constitutional Assembly must be called immediately to modify existing hydrocarbons legislation with the purpose of strengthening and refunding a government oil and gas company".

On Monday vice-president Carlos Mesa distanced himself from the current heavy handed policy of President Sánchez de Lozada while three ministers resigned rejecting the "vicious violence circle" and others "have given a step back" waiting for "conciliatory gestures" from both sides and the "beginning of negotiations" with protestors.

Evo Morales leader of the Congressional opposition and of a strong peasants' movement said he favoured a "constitutional succession" to the conflict. Apparently the Bolivian president was ready to resign but this Monday Sanchez de Lozada received strong support from the US State Department, the European Union, Mercosur and the Organization of American States who called on all sides to "cease the confrontation that only leads to further violence", and sit down to negotiate. Bolivian Armed Forces also expressed their support to the "Constitutional and elected president", although in a second release they pointed out that "we're not supporting a person but the Constitutional president".

Last week as the situation worsened President Sanchez de Lozada claimed that a "seditious conspiracy" wanted him out of government, but early Tuesday he announced the drafting of a "supreme decree" which freezes the current project and conditions the sale of gas and oil overseas to a "consultation process" with the Bolivian people and social sectors. He also called for immediate negotiations. However a presidential spokesperson excluded the possibility of a referendum as demanded by leaders of the protest since "it's not contemplated in the Constitution".

With the exception of the strong presence of tanks and armoured vehicles protecting government buildings the Bolivian capital La Paz remains virtually paralysed because of insufficient fuel, an indefinite transport strike and most businesses closed. However peasant leaders have anticipated that protests and blocking of access to La Paz will continue.

Bolivia one of the poorest countries in South America with over 80% of Indian population is nevertheless extremely rich in natural resources. Politics have been traditionally ruled by a Spanish descendent elite and the Army, however Indians have lately organized politically and Mr. Morales almost became president in the last election. Besides, selling the country's natural resources is a highly sensitive issue, particularly when US and foreign corporations are involved and the pipeline has to cross Chilean territory, one of the very few rallying points for the Bolivian population. Chile actually seized Bolivia's outlet to the Pacific during the 1879 war. Bolivia has since been landlocked.

Mr. Sanchez de Lozada with limited Congressional support, growing opposition that is clearly becoming national rejection plus a stagnant economy could have to step down if negotiations with protestors don't advance or achieve a return to normality.

Meantime in Madrid Repsol-YPF one of the several corporations involved in the oil and gas export project said that they will continue with the operation, "we're working in the preliminaries and the feasibility, but the final decision belongs to the Bolivian government".

"Through where the oil and gas are transported, be it Chile or Peru does not concern us, that is exclusively in the hands of Bolivia", said a Repsol-YPF spokesperson. The Pacific LNG project as it's identified will demand between 5,5 and 6,5 billion US dollars including a giant gas liquefying plant in the export port.