Released on 2013-02-13 00:00 GMT

Email-ID 3008353
Date 2011-06-21 15:30:18
From brian.larkin@stratfor.com
To os@stratfor.com

US in new push against drugs in Central America
June 20, 2011


WASHINGTON – The United States will discuss efforts to be a “more
effective” partner with Central America in fighting drug trafficking when
Secretary of State Hillary Clinton visits Guatemala Wednesday, aides said.

The chief US diplomat, aides said Monday, will visit Guatemala City to
discuss a counternarcotics strategy with the leaders of Guatemala, Belize,
El Salvador, Honduras, Nicaragua, Costa Rica and Panama.

Other leaders or top officials attending the talks will represent Mexico,
Colombia, Chile, Spain and the European Union, they added.

Clinton has “been concerned about the situation in Central America for
some time,” Arturo Valenzuela, the assistant secretary of state for
Western Hemisphere affairs, told reporters.

As Mexico has tried to fight its drug trafficking scourge, drug mafias
have increasingly pushed south into Central America and countries like
Guatemala and Belize have seen a surge in violence that they seem almost
powerless to stop.

Clinton has “been pushing for greater engagement on the part of the United
States since she began to focus on these issues some time ago,” Valenzuela

However, he said, the meeting will not amount to a donors’ conference and
will instead focus on using existing resources better.

“The question is: Is the funding being used strategically in the
appropriate way? And that?s what we?re going to be addressing in this
meeting,” Valenzuela said.

“The various donors have been pledging monies now for some time in
different kinds of categories,” he added.

“The secretary may announce how we?re repackaging some of our own
assistance,” in support of the counternarcotics strategies of the region’s
countries, he said.

“We want to be more effective partners in carrying out their expectations,
which of course, is also in our fundamental interest,” Valenzuela said,
referring to US efforts to fight drug traffickers traveling north.

Washington cooperates with Central America, which UN figures say is the
world’s most violent region outside of war zones, through the Central
American Regional Security Initiative, with a budget of 260 million

Clinton’s main concern is organized crime and its threat to the
continent’s democratic institutions, particularly those in Central
America, said Michael Shifter, who heads the Inter-American Dialogue, a
DC-based think tank.

“When she thinks about the region, it is what concerns her most, and I
believe she wants to achieve a concrete result to contain and respond to
this growing criminality in Central America,” Shifter told AFP.

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INSIGHT-BOLIVIA-St. Dept source’s take on Morales

Released on 2013-02-13 00:00 GMT

Email-ID 1146360
Date 2010-04-27 18:57:10
From zucha@stratfor.com
To secure@stratfor.com

SOURCE DESCRIPTION: State Dept. source in Bolivia
PUBLICATION: if desired

In response to Evo Morales saying ‘Chicken causes baldness and

Evo says stupid things every day, but the local media here (which is under
his thumb) protects him in their ‘lack of reporting’ or twisting it for
disinformation purposes. Unfortunately for him, he was addressing an
international audience so he could not be protected by his lackey media
drones from the international press. For the first time, the world got to
see firsthand what a buffoon this 4th grade educated, narco-trafficking,
murderous thug is. He is NOT the messiah and genius that everyone touts
him to be. His rhetoric is anti-US and anti-Capitalism, so he is the
darling to the ultra-left and self-hating US citizens (Danny Glover, Sean
Penn, Oliver Stone, etc.) He is destroying Bolivia like Chavez is
destroying Venezuela. However, there are now chinks in his armor. His
recent hypocrisy was to dispatch his Minister of Finance last week to the
US to engage those ‘evil capitalists’ there to invest in Bolivia. And,
this was only a few days after he lashed out (ala MO of Fidel Castro) on
the evils of capitalism and how the US was responsible for everything bad
in the world. Over the weekend, Evo announced his government is engaging
Vietnam and North Korea to establish formal diplomatic relations with
them, open embassies and exchange ambassadors in an attempt to strengthen
socialist governments to destroy the US and capitalism. He speaks of
Robert Mugabe as a ‘dear freedom fighter’ who is doing great things for
Zimbabwe. If George W. Bush made a stupid statement like his
genetically modified chicken (and drinking Coca Cola, consuming Alka
Shelzer, both were made in his diatribes but omitted by the media), the
MSM (CNN, MSBNC, et all) would beat this Bush statement to death. You
hear nothing from them when idiots like Chavez and Evo speak. This media
bias is the double standard the left-leaning MSM media is guilty of. If
they were doing their job, instead of being coconspirators in their
liberal politics, FoxNews would not be needed to balance out objectivity.
Finally, the nomination of Evo for the Nobel Peace Prize was just formally
accepted yesterday as a result for his “Mother Earth” Summit [aka,
vehement anti-US, anti-Capitalism (specifically targeting Coca Cola),
anti-UN, pro-coca (sic cocaine) and narco-trafficking platform that was
embraced by 22,000 anti-US, left-wing anarchists in attendance] as a
result of the recent Climate Change Summit in Cochabamba.

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BOLIVIA/ECON/GV – Government announces that it may intervene in Coca Cola company

Released on 2013-02-13 00:00 GMT

Email-ID 2044279
Date 1970-01-01 01:00:00
From paulo.gregoire@stratfor.com
To latam@stratfor.com

This has to do with the fact that Coca Cola raised 12% the price of their
products on Friday. Today they will audit their finances in case they find
problems with it, the government may fine the company or even suspend
their commercial license.

Gobierno anuncia intervenir Coca Cola

Por Agencias – Agencia – 17/01/2011


La Autoridad de FiscalizaciA^3n y Control Social de Empresas advirtiA^3
ayer con multar o suspender las operaciones de la embotelladora local de
Coca-Cola, de capitales chilenos, en Bolivia si halla irregularidades en
sus finanzas que auditarA! desde hoy, despuA(c)s de que la empresa subiera
el viernes hasta en un 12 por ciento el coste de sus productos.

El director ejecutivo de la Autoridad de FiscalizaciA^3n y Control Social
de Empresas, Oscar CA!mara, declarA^3 ayer a medios estatales que hoy
ingresarA! a la empresa Embotelladoras Bolivianas Unidas SA (Embol) que
produce la Coca Cola, para hacer una auditorAa “rigurosa, con lupa” de sus

CA!mara comunicA^3 a la televisora estatal BTV, la decisiA^3n despuA(c)s
de hacerlo a Embol.

“Y si corresponde sancionar econA^3micamente lo haremos, si corresponde
sancionar administrativamente con la cancelaciA^3n de la matricula
comercial, lo vamos a hacer. No nos va a temblar la mano”, apuntA^3 la
autoridad reguladora del sector empresarial nacional.

“Yo sA(c) que voy a tener problemas con Embol porque no estoy hablando de
una empresa de la esquina, sino de una empresa trasnacional”, aA+-adiA^3
el funcionario.

El funcionario, poco despuA(c)s, dijo a los periodistas que la empresa
Embol ha recibido un millA^3n de quintales de azA-ocar subvencionados por
el Estado y que no se deberAa subir el precio de la Coca-Cola.

“Luego que Embol habrAa adquirido 1.037.400 quintales de azA-ocar del
ingenio Unagro, el 50 por ciento de su cosecha de 2010, y sabiendo que
A(c)sta fue comercializada a un precio especial subvencionado entre 150 y
198 bolivianos, por lo cual no pueden subir sus precios, se ha tomado la
determinaciA^3n de empezar una fiscalizaciA^3n a Embol SA, a sus estados
financieros, sus inversiones y memorias”, informA^3 en la entrevista.

Los tA(c)cnicos de la empresa tienen un plazo de 40 dAas para demostrar
“las razones los motivos para elevar el precio porque eso es jugar con la
economAa del paAs. Ellos tienen que demostrar tA(c)cnicamente la subida de
su producto”. La Coca-Cola Embonor SA de Chile comprA^3 en 1995 las
franquicias y activos de las operaciones de Embol.

SegA-on la agencia de noticias AP, los intentos de contactar ayer a un
representante de la compaA+-Aa para que se pronunciara sobre el anuncio
del Gobierno fueron infructuosos.

Nadie respondiA^3 a los nA-omeros listados en el directorio.

SegA-on medios locales, la embotelladora aumentA^3 los precios por el
aumento del precio del azA-ocar en el mercado.

La estatal Empresa de Apoyo a la ProducciA^3n Alimentaria (Emapa)
incrementA^3 el viernes un 23 por ciento el precio del azA-ocar. El
Gobierno importa azA-ocar de Brasil y otros paAses para cubrir la demanda.

“La materia prima para la fabricaciA^3n de la Coca Cola es el agua, la
electricidad y el azA-ocar, que no han subido en sus precios, por tanto
llegamos a la conclusiA^3n de preguntar cuA!l es el elemento que ha
provocado estA! especulaciA^3n”, considerA^3 CA!mara.

El Gobierno del presidente Evo Morales acusa a Coca Cola de aprovecharse
de la escasez del azA-ocar para justificar el aumento, pese a que
acumulA^3 un millA^3n de quintales de ese producto con un coste

CA!mara ha multado a decenas de empresas por diferentes razones y en los
A-oltimos dAas tambiA(c)n impuso que las principales productoras de leche
de Bolivia, participadas por capitales de PerA-o, desistan de incrementar
el coste de sus productos como pretendAan.

Unagro espera hasta abril

La Paz | Anf

El gerente de Relaciones Internacionales del ingenio azucarero de la
UniA^3n Agroindustrial de CaA+-eros SA (Unagro) Miguel Montero, explicA^3
ayer que en el paAs no existe desabastecimiento sino escases del producto,
que atribuye a la actividad del contrabando.

“En la prA^3xima zafra Unagro se compromete a producir el doble de
azA-ocar que el aA+-o pasado, nuestra provisiA^3n estarA! orientada a
satisfacer la demanda interna”, dijo Montero. El caA+-ero explicA^3 que
A(c)ste fue el A-onico aA+-o en el que faltA^3 azA-ocar en los A-oltimos
20 aA+-os, por lo que el compromiso fue reiterado para cubrir la demanda
por completo este 2011.

El gerente de Unagro explicA^3 que el 2010 se cerrA^3 la zafra en
septiembre, tres meses antes de los previsto, teniendo en cuenta que el
2009 se cerrA^3 en diciembre y esto a raAz de un decremento en la
producciA^3n de de caA+-a.

Montero explicA^3 que el 2010 hubo 35 por ciento menos caA+-a lo que
generA^3 un producciA^3n menor a los 12 millones de quintales que se
producen en una temporada normal teniendo en cuenta los factores
climatolA^3gicos con lluvias excesivas produciendo solamente 8,5 millones
quintales con un consumo aproximado de 7,5 millones de quintales.


El Director Ejecutivo de la Autoridad de FiscalizaciA^3n y Control Social
de Empresas (AMEP), Oscar CA!mara, anunciA^3 ayer que como medida contra
el contrabando las primeras bolsas de azA-ocar serA!n macadas con un
cA^3digo de barras para hacer el seguimiento correspondiente y evitar que
el artAculo salga del paAs.

“Este aA+-o vamos a aplicar en los primeros quintales un control de barras
con el cual vamos a hacer seguimiento, si nosotros sabemos que de
cualquier ingenio ha salido esa azA-ocar con ese control y lo encontramos
en la frontera o en otro paAs, vamos a saber por dA^3nde ha salido y quien
ha comprado” dijo CA!mara.


Authority Control and Social Control of Business warned yesterday to fine
or suspend the operations of the local bottler of Coca-Cola, the Chilean
capital in Bolivia if it finds irregularities in its finances that will
audit today after the company raised its Friday up to 12 percent the cost
of their products.

The executive director of the Drug Control Authority and Social Control of
Business, Oscar House, state media said yesterday that today will enter
the United Bolivian Bottling Company SA (embolus) that produces the Coca
Cola, to audit “rigorous, with magnifying glass “of its finances.

Chamber informed the state television BTV, the decision after doing a

“And if appropriate we will impose a financial penalty, if any
administrative sanction by the cancellation of the commercial
registration, we will do. We are not going to shake his hand,” said the
regulatory authority of the national business sector.

“I know I’m going to have problems with a plunger because I’m not talking
about a company in the corner, but a transnational corporation,” added the

The official, shortly after, told reporters that the company’s piston has
received one million quintals of sugar subsidized by the state and should
not be raising the price of Coca-Cola.

“After piston had acquired 1,037,400 quintals of sugar from UNAGRO, 50
percent of their harvest in 2010, and knowing that it was sold at a
special price subsidized between 150 and 198 Bolivians and therefore can
not raise their prices, has taken the decision to begin an audit Pitcher
SA, its financial statements, investments, and memories, “said in the

The company’s technicians have 40 days to demonstrate “the reasons the
reasons to raise the price because that is playing with the country’s
economy. They have to demonstrate technically the rise of its product. The
Coca-Cola Embonor SA of Chile in 1995 bought the franchises and assets of
the piston operation.

According to AP news agency, yesterday attempts to contact a company
representative for comment on the Government’s announcement were

No one answered at the numbers listed in the directory.

According to local media, the bottler raised prices by increasing the
price of sugar on the market.

The State Company for the Support of Food Production (EMAP) on Friday
increased by 23 percent the price of sugar. The government imports sugar
from Brazil and other countries to meet demand.

“The raw material for the manufacture of Coca Cola is water, electricity
and sugar, which have not increased their prices, so we concluded to ask
what is the element that has caused this speculation,” said Chamber .

The government of President Evo Morales accuses Coca Cola to take
advantage of the sugar shortage to justify the increase, despite
accumulating a million pounds of this product at a subsidized cost.

House has fined dozens of companies for different reasons and in recent
days also imposed that the major milk producing Bolivia, Peru participated
by capital, to desist from increasing the cost of their products as

UNAGRO wait until April

La Paz | Anf

The manager of International Relations of the EU sugar mill CaA+-eros
Agroindustrial SA (UNAGRO) Miguel Montero, said yesterday that the country
but there is no shortage of product shortages, which gives the smuggling

“In the next harvest UNAGRO undertakes to produce twice as much sugar as
last year, our supply will be geared to meet domestic demand,” said
Montero. The sugarcane explained that this was the only year in which
sugar was missing the last 20 years, so that the commitment was reiterated
to meet demand this entire 2011.

UNAGRO manager explained that the 2010 harvest was closed in September,
three months ahead of schedule, taking into account that 2009 was closed
in December and that following a decrease in cane production.

Montero said that 2010 was 35 per cent less cane which generated a lower
production at 12 million bushels produced in a normal season, taking into
account climatic factors with heavy rains producing only 8.5 million
bushels with an approximate consumption 7.5 million quintals.


The Authority Executive Director Control and Social Control of Business
(AMEP), Oscar House, announced yesterday that as a smuggling bags of sugar
early will macadas with a bar code corresponding to track and prevent the
article leave the country.

“This year we will implement in the first quintals a control bar with
which we make up, if we know that any sugar mill that has come with that
control and are at the border or in another country, we know from where it
came from and who has bought “House said.

Paulo Gregoire

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INSIGHT – AR 516 – Peru’s response to the spy scandal, and thoughts from upper level military

Released on 2013-02-13 00:00 GMT

Email-ID 375935
Date 2009-11-18 17:26:01

This demonstrates a relatively high level of agitation among the
Peruvians. My main military contact in Chile has been downplaying this
issue strongly, saying it doesn’t matter, tha tensions between Peru and
Chile are no big deal and that the Peruvians are exaggerating all of it.

Bypassing WO as per Stick.

SOURCE: AR 01 chatting with AR 516
ATTRIBUTION: Stratfor Source
SOURCE placement : B
Handler: Karen

He said well we talked a lot about the Peruvian officer, Chile spy case.
I asked what they thought/opinionated about that and his immediate
response was `well we have to by more arms.’ From there I asked him to
elaborate on that and explain how he arrived at this conclusion. And as a
result the following comments were made:

– First I asked how serious and credible this was. Was Peru 100% sure
that this guy was spying and be paid by Chile. He said that they were
more than 100% sure. He said that in Venezuela and Bolivia and sometimes
even in Argentina you’ll hear about all sorts of scandals or rumors or
exaggerated stories that should be taken with a grain of salt. He said,
however, that when it comes to Chile and Peru these things were taken
very seriously and as credible problems/threats.

– Peru is taking this scandal as a very big offense that, to an extent, is
being treated a bit like `the straw that broke the camel’s back’ in terms
of Chile-Peru tensions. He said that Alan
and the Frgn Min coming back shows just how serious the govt is taking
this issue and that they felt relations with Chile were put at a huge
risk. He said that while they haven’t officially broken off diplomatic
relations with Chile or recalled ambassadors, but that could be a
potential next step.

– He said this was shameful for Chile to finance such a spy project. He
said more importantly that Peru (at least the military) was absolutely
embarrassed and feels like they have
really been made the fool. He literally said at one point in the
conversation `somos los payasos.’

– At this point the recent diplomatic efforts by Peru to promote its pact
of non-aggression came up in the conversation. Again he said that Peru
looks foolish now for doing that and that they should not have believed
Chile saying `yeah not a bad idea.’ For him and the people in this
conversation and many in the military that diplomatic approach was over.
The idea of using diplomacy and believing in a possible agreement to
limit/control arms purchases is dead. Peru can’t afford to pursue that
any more and needs to make more assertive moves if it wants to be taken
seriously by Chile and not get so easily walked upon.

– He reiterated that Chile’s arms purchases were just way too much and
could not be justified by any means and for Peru it was clearly an
aggressive move that now can be interpreted no other way.

– He also said that the potential deal between Chile and the US was
particularly alarming. For them it signifies that the US has chosen to
side with Chile in any future Chile-Peru conflicts. They feel that Peru
can now not go to the US to buy weapons since its basically looks certain
that the US will be supplying Chile with arms.

– I asked if he knew how the Chile-US arms deal came about. If the US
started it or Chile. He said he didn’t know but that it didn’t matter
because a deal like that requires two very willing parties.

– They were also just very surprised in general that the US would side or
support Chile. According to him, the US has some DEA, anti-drug projects
in Peru and at least in this area, the military has always considered the
US a reliable and good partner. Betrayal is way to strong a word, but
perhaps snubbed or surprised describes some of their reactions/feelings to
the US possibly selling arms to Chile.

– Then came talk about what Peru would do. He said that Peru had to buy
weapons. I said they should only buy from the best and with the US not
being seen as an option, who was left. He said Israel and Russia were the
big, good, reliable arms suppliers out there for Peru to deal with. I
asked a bit of why for Israel since I
thought Israel purchased a lot of US arms. He said that Israel produces
some arms and that it has very good defense capability, both in equipment
and with the personnel. He also said that Peru has the money to make
large arms purchases should it so choose.

– I asked if the General or people were worried about things. He said the
general was not `preocupado’ but that he was certainly `consternado’.
They are all expecting a very tense week ahead and are waiting to see what
Garcia, the cabinet and governments do in the coming days.

BOLIVIA – Women Fight Superstition, Machismo in Mining Cooperatives

Released on 2013-02-13 00:00 GMT

Email-ID 2992381
Date 2011-06-23 21:29:51

Women Fight Superstition, Machismo in Mining Cooperatives
June 23, 2011; IPS

LA PAZ, Jun 23, 2011 (IPS) – Hundreds of women belonging to mining
cooperatives in Bolivia are striving for the right to mine seams of tin
and silver in the country’s western highlands, where an age old
superstition maintains that the presence of women “scares away” the

In these freezing high-altitude mineral-rich but impoverished areas,
native women have been assigned a secondary economic role for centuries.
But now they are seeking to make headway in traditionally male domains,
say researchers interviewed by IPS.

Growing international demand for metals and soaring prices for the tin,
silver and gold that are abundant in Bolivia have encouraged thousands of
mainly indigenous peasant farmers and people from outside the altiplano
region to go down the mines, organised in cooperatives.

The mining cooperative model in Bolivia, which dates back to 1968, is
based on the principles of social solidarity, equal opportunity, respect
for individuals and the elimination of exploitation, according to a
declaration by the National Federation of Mining Cooperatives (FENCOMIN).

But these principles only applied to men, to the extent that the
organisation’s Women’s Secretariat was headed by a man, the coordinator of
the project on children and families in mining at the Centre for the
Promotion of Mining (CEPROMIN), Cecilia Molina, told IPS.

“Women had to fight for the leadership of their own secretariat in the
organisation of cooperatives,” Molina said.

After years of struggle, women won a first victory at the congress of
representatives of mining cooperatives in 2001, when they achieved
recognition as partners and shareholders, privileges that had previously
been denied to them, Jose Antonio Condori, author of the book Historia del
Cooperativismo Boliviano (History of the Bolivian Cooperative Movement),
told IPS.

Bolivia’s cooperative system of mining is unique. In principle there is
equality among shareholder members, but this becomes open to question when
some members accumulate several mining concessions, rise to power on the
cooperative governing bodies and hire labourers, as if they were private

Since the 1980s, these entrepreneurial cooperative members have gained
ground with the expansion of mine-working areas belonging to the state
Bolivian Mining Corporation (COMIBOL), and have gained influence in the
political sphere, replacing the once-powerful union of COMIBOL workers,
who shrunk from 27,000 in the mid-1980s to nearly none as a result of

Some 650 mining cooperatives operate in the country, extracting tin,
tungsten, silver, zinc and gold. They have about 62,000 stakeholding
members, and adding the number of labourers without shares brings the
total to 75,000, the deputy minister for Mining Cooperatives, Isaac
Meneses, told IPS.

Women cooperative members work up to 14 hours a day in tunnels dug into
the side of mountains and deep underground to extract mineral ore. Often
their only aid to endure fatigue and hunger is the ancestral practice of
chewing coca leaf.

Under the former rules, a cooperative member’s shares were not bequeathed
to his widow upon his death, but to his eldest son. If a woman was widowed
and had no sons, she lost the stake in the cooperative, Condori said.

The governing bodies of cooperatives would admit women only as “palliri”,
who collect and sort metal ore from waste rock from the mines. Only their
struggle to gain recognition as stakeholder cooperative members with
speaking and voting rights has changed women’s status, Molina said.

Condori said there are now all-women cooperatives that reject male
members, such as a cooperative of 200 women in Chorolque, in the south of
Potosi province.

Although there is light at the end of the tunnel for women cooperative
members, there are still plenty of hurdles to be overcome, Molina said.

In Atocha, a mining area in Potosi province, women held the Education and
Culture Secretariat of the male-led cooperative for three consecutive
terms. However, they still face discrimination, by being assigned to
mineral-poor areas, and even excluded from some mines, she said.

Molina cited the ban on women’s access to Cerro Rico in Potosi, the
mountain that was a symbol of fabulous silver wealth and power during the
Spanish colonial era.

Molina organises workshops and classes for women miners about their
rights. She explains that their status as cooperative shareholders means
they are “owners of the means of production, without bosses to answer to.”
She also underscores the importance of contributing to the social security
system, which many women do not join, in order to draw a pension when they
stop working.

She said women miners with little schooling and limited knowledge of
financial matters are at a disadvantage when selling minerals to
intermediary buyers, who offer them low prices. (END)

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