Cablegate: Business As Usual, Despite Rising Tensions

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DE RUEHLP #2406 2492058
ZNR UUUUU ZZH
R 062058Z SEP 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 0437
INFO RUEHAC/AMEMBASSY ASUNCION 6074
RUEHBO/AMEMBASSY BOGOTA 3393
RUEHBR/AMEMBASSY BRASILIA 7243
RUEHBU/AMEMBASSY BUENOS AIRES 4509
RUEHCV/AMEMBASSY CARACAS 1774
RUEHPE/AMEMBASSY LIMA 1809
RUEHME/AMEMBASSY MEXICO 1770
RUEHMN/AMEMBASSY MONTEVIDEO 3990
RUEHQT/AMEMBASSY QUITO 4409
RUEHSG/AMEMBASSY SANTIAGO 8978
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC

UNCLAS LA PAZ 002406

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH

E.O. 12958: N/A
TAGS: EINV ETRD ECON PREL PGOV BL
SUBJECT: BUSINESS AS USUAL, DESPITE RISING TENSIONS

REF: LA PAZ 2393

1. (SBU) Summary: La Paz businessmen reacted with relative
calm to the September 1 violence in the constituent assembly
(reftel), declaring that business would continue as usual.
While not necessarily thriving, businesses appear to have
survived the uncertainty of the last few months, and most
expect to withstand rising tensions. What businessmen want,
they say, is to be left alone - free of economic and
political uncertainty and the disruptions of the "media luna"
strike called for September 8 (reftel). End summary.

2. (SBU) La Paz businessmen reacted with relative calm to the
September 1 violence in the constituent assembly (reftel),
declaring that business would continue as usual. George
Satt, President of United Furniture Industries, a leading
wood products exporter, told Econoff September 5 that he
viewed the events with much embarrassment but little
surprise; the exchange of blows and the throwing of water
bottles might make Bolivians appear incapable of maintaining
order, he said, but would not directly affect existing
operations.

3. (SBU) While not necessarily thriving, businesses appear to
have survived the uncertainty of the last few months, and
most expect to withstand rising tensions. The general sense
among businessmen, Satt commented, was that companies would
survive as well as they could, even while delaying new
investments. Satt's impression was that most businesses were
taking recent events in stride, with few firms seriously
considering drastic changes to operations.

4. (SBU) Confederation of Private Businessmen President
Roberto Mustafa echoed Satt's statements, noting that
businessmen want mostly to be left alone - free of economic
and political uncertainty and the disruptions of the "media
luna" strike called for September 8 (reftel). Strikes of any
sort, but particularly on such a scale, upset operations and
cost businessmen dearly, he pointed out, arguing that the
business community would be better served if the government
and the opposition compromised, averted large-scale work
stoppages, and brought the constituent assembly to a
successful conclusion.

5. (SBU) Comment: Despite escalating rhetoric and rising
east-west tensions, it appears business is continuing as
usual. Being the practical sort, and with years of
experience in a country in which ambiguity is the norm, most
businessmen have taken recent events in stride. They may
wish for clarity, but they recognize that the chances of
getting it are slim. End comment.
GREENLEE

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