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Bolivia president resigns over nationalism protests Original Source Link: (May no longer be active)
http://www.bloomberg.com/apps/news?pid=10000087&sid=akYD_BMY41Mw&refer=top_world_newshttp://www.bloomberg.com/apps/news?pid=10000087&sid=akYD_BMY41Mw&refer=top_world_news
Bolivia's Mesa Resigns, Opposition Demands Elections (Update1)
June 7 (Bloomberg) -- Bolivia's main opposition party said it will continue to demand early elections after President Carlos Mesa resigned in a bid to end street protests demanding the nationalization of the oil and gas industry.
Demonstrations will not stop until Congress accepts Mesa's offer to step down and elections are called, Manuel Morales, congressman for Bolivia's second-largest party, the Movement Toward Socialism, said in a phone interview from La Paz early today.
``The protests will continue until we reach a solution,'' Morales said. ``That means those who replace Mesa have to resign and call elections. If they don't resign, we'll kick them out.''
Mesa's resignation will spur pro-nationalization movements and make it harder for the country to attract the foreign investment needed to tap Bolivia's 28.7 trillion cubic feet of natural gas, Latin America's second-largest reserves after Venezuela, say congressional leaders such as Erica Brockman Erica of Bolivia's third-largest party, the Leftist Revolutionary Movement,
``Nationalization isn't a practical solution,'' Brockman said in a phone interview from La Paz. ``It's going to further isolate Bolivia from the rest of the world.''
Mesa, 51, offered to step down during a speech to the nation yesterday on Bolivian cable television, Bolivision. ``We have reached a point where no one wants to listen to each other,'' he said. ``This is why I offer my resignation so as not to be an obstacle.''
Safety Concerns
Congress will not go into session until the government and protesters guarantee legislators' safety, Congress spokesman Edil Herrera said in a phone interview from La Paz. Protesters attacked members of Congress outside the building last week, he said, and yesterday Mesa worked from a secret location out of safety concerns at the Presidential Palace, according to an Interior Ministry spokeswoman.
Mesa first offered to resign in March after protests against the government's energy policies shut down the capital. He said he will remain as president until Congress acts on his resignation and that he will not seek asylum abroad.
``This is no longer a tactical resignation,'' political analyst Carlos Toranzo told CNN en Espanol. ``It's a fait accompli, although late in the making.''
Thousands of protesters yesterday tried to break through a police blockade around the main square, site of the presidential palace and Congress, state news agency ABI said. Police responded with tear gas and arrested 26 people, according to the agency.
Demonstrators broke open the main drinking water pipe to La Paz, cutting off the water supply to the capital, La Paz radio station Radio Panamericana reported. Protesters today continue blocking roads into the capital, the radio said.
Roadblocks, Shortages
Gasoline stations and stores closed due to shortages of fuel and basic foodstuffs after two weeks of roadblocks by protesters, according to La Paz daily La Razon.
Mesa has faced daily protests since Congress on May 17 passed a smaller increase in oil and gas taxes than demanded by the Movement Toward Socialism. The movement, headed by coca farmer Evo Morales, is a representative of Bolivia's indigenous majority who are demanding a larger share of the country's resources.
The law also forces 12 foreign oil companies including Spain's Repsol YPF SA, Irving, Texas-based Exxon Mobil Corp. and Brazil's Petroleo Brasileiro SA, Petrobras, to renegotiate 72 oil and gas contracts signed from 1993 to 2003.
Lost Investment
After the new law's passage, the president of the Bolivian Hydrocarbon Chamber, Raul Kieffer, said the country stood to lose $10 billion in planned investment as companies such as BG Group in London said they would review their involvement in the Bolivia. Rio de Janeiro-based Petrobras, the biggest foreign oil and gas company in Bolivia, said it will cut back on investment.
Morales, who is not related to Manuel Morales, had called on Mesa to resign and for his replacement to order a state takeover of all oil and gas fields.
``This is the consequence of Carlos Mesa's bad government,'' Morales told CNN en Espanol. ``Until the social problems of racial discrimination and poverty are solved, we can never solve the country's political problems.''
Once Congress accepts Mesa's resignation, Congress president Hormando Vaca and Lower House president Mario Cossio will have to resign, leaving Supreme Court chief justice Eduardo Rodriguez as caretaker president to call elections within six months, Brockman said.
Mesa stepped up from the vice-presidency 18 months ago after violent street protests over plans to export natural gas killed at least 80 people and triggered the resignation of President Gonzalo Sanchez de Losada. Mesa's mandate was scheduled to expire in January 2007.
Last Updated: June 7, 2005 11:36 EDT
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