Pubdate: Wed, 17 Sep 2008 Source: Wall Street Journal (US) Copyright: 2008 Dow Jones & Company, Inc. Contact: http://www.wsj.com/ Details: http://www.mapinc.org/media/487 Author: John Lyons Bookmark: http://www.mapinc.org/people/Evo+Morales Bookmark: http://www.mapinc.org/area/South+America U.S. CENSURE OF BOLIVIA RAISES HEAT ON MORALES SANTA CRUZ, Bolivia -- Days after President Evo Morales expelled the U.S. ambassador to Bolivia, Washington has added the country to its list of nations failing to fight illegal narcotics, a decision that could have economic consequences for the natural-gas-rich nation. The move could embolden U.S. lawmakers who oppose the renewal of Bolivia's trade preferences, which are due to expire in the coming months. Such an economic blow would add to Mr. Morales's problems. Mr. Morales is battling provincial governors who have declared autonomy in the nation's gas-rich farmlands. They accuse Mr. Morales of trying to impose a Cuba-styled regime by nationalizing industries and pushing a new constitution that redefines property, centralizes power and grants rights based on ethnicity. Late Tuesday, Mr. Morales and the governors agreed on a road map to end a weeklong crisis in the country, Reuters reported. The governors pledged to end occupations of government buildings, after a wave of violent protests left 17 dead last week, and Mr. Morales said he would discuss their demands for more autonomy and a greater share of state energy revenue. The agreement came even though Bolivian troops arrested one of the governors, Leopoldo Fernandez, the leader of Pando province, as part of a crackdown earlier Tuesday. Mr. Morales and his chief ally, Venezuelan President Hugo Chavez, blame the U.S. for Bolivia's troubles. Last week, Venezuela and Bolivia expelled their U.S. ambassadors, accusing Washington of orchestrating Bolivia's political opposition, a charge the U.S. denies. The U.S. and Bolivia, a major cocaine producer, have clashed over drugs. The U.S. ambassador was expelled as he was questioning the Morales government about threats made to U.S. Drug Enforcement Administration officials in Bolivia, the U.S. State Department said. The populist Bolivian president leads a union of growers of coca leaves, the raw material in cocaine. Bolivia joins Venezuela and Myanmar on the U.S. list of countries not fulfilling obligations to stem drug trafficking. Bolivia's neighbors, which depend on its natural-gas reserves, met in a grouping of South American leaders Monday in Chile and vowed to help Mr. Morales find a peaceful resolution. Sabotage curtailed gas flows to Brazil and Argentina last week. Mr. Morales had ordered Mr. Fernandez arrested after a clash in Pando last week that left at least 14 people dead, many of them Morales supporters. Mr. Morales, without providing evidence, says Mr. Fernandez organized an ambush. Mr. Fernandez denies it. In response to the clash, Mr. Morales deployed troops to the province and ordered them to enforce martial law and arrest opposition leaders. Upon arrival in Pando, soldiers killed an unarmed evangelical minister. Since then, several opposition leaders have been arrested by soldiers. - --- MAP posted-by: Richard Lake