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Weekly Report - 14 September 2004

BOLIVIA: U-turn on oil law revives confrontations

President Carlos Mesa has bowed to pressure from the nationalist opposition and rewritten his draft hydrocarbons legislation for the second time, on this occasion including a provision that will force the oil companies to renegotiate their current contracts. The companies are up in arms, while on the other side of the spectrum, Evo Morales has switched his stance to reappear as the defender of a major government initiative. These developments are already exacerbating the animosity between the highlands around La Paz where political power resides and the Media Luna regions that surround it.

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