Thursday, May 04, 2006

Bolovia's Pres. Takes Over Investor's Oil Fields

LA PAZ, Bolivia (Reuters) - Bolivia's leftist government said on Tuesday it would forge ahead with its sweeping energy nationalization despite international concern over the move by President Evo Morales.

Former coca farmer Morales was making good on election promises to reassert state control over Bolivia's natural resources, which he says have been exploited by foreign companies with little benefit to the country's poor majority.

But the extent of the decree to wrest control of energy fields from foreign oil companies and hand them to a state-owned company stunned analysts and rattled investors, though many ordinary Bolivians welcomed the decision. More

Newmont Mining Is `Nervous' About Bolivia Oilfields Takeover
Excerpt: ``Looking at what's happening in Bolivia, Ecuador and Venezuela, of course we're nervous,'' Lassonde told reporters in Lima. ``This is every foreign investor's worst nightmare: you invest billions, and then you find your investment nationalized.'' Source

Meanwhile Chavez Arrives........
Morales' election in December reflected a popular backlash against free markets and foreign investment in Latin America.

Since taking office three months ago, Morales has forged close ties with Washington's leading Latin American antagonists, Cuba's Fidel Castro and Venezuela's Hugo Chavez, who applauded the nationalization. "Bolivia will recover its sovereignty," Chavez said in Caracas.

Over the weekend, the three leaders launched a "people's trade agreement," which they call an alternative to U.S.-led free trade talks with other Latin American countries.

Morales' decision to limit foreign companies' profits follows similar moves in Ecuador and Venezuela, where Chavez has forced a rewriting of contracts and imposed retroactive tax hikes in the world's fifth-largest oil exporter -- conditions that oil majors largely accepted. More

Venezuela's President Hugo Chavez arrived at El Alto international airport in Bolivia on Wednesday, May 3, 2006.
Don't forget their other buddy Iran's President....It looks like they are closing in tigher!!! Another reminder of what a leftist government will do for you.
This is one more wake-up call. Other Sources:
Bolivia News
UPDATE: Latin America holds Summit
Others Blogging
Rep. Jack Kingston (R-Ga) posted Hugo Chavez Is Building A Hostile Empire. And We’re Helping

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