Strikes over gas cripple Bolivia

BOLIVIA: Bolivian president Carlos Mesa's fate could be sealed this week as the country enters a third week of crippling Indian…

BOLIVIA: Bolivian president Carlos Mesa's fate could be sealed this week as the country enters a third week of crippling Indian protests and political divisions deepen.

Mr Mesa's only ally at this point is the Catholic church, which answered his plea for mediation and has begun talks with the government, the fragmented congress, rich regions demanding autonomy, and Indian leaders.

Indigenous groups in the militant city of El Alto, above the capital La Paz, vow to maintain their indefinite strike because Mesa and congress have not budged on their main demand - the nationalisation of Latin America's secondlargest natural gas reserves.

El Alto protesters also refuse to lift their roadblock around the gas plant that supplies La Paz.

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As a result, gasoline is running short in the capital and few service stations were open on the weekend. Taxis turned off their engines on the steep hills of the world's highest capital to save gas. "The social movements have lost confidence in the president and will continue their mobilisations," said political analyst Jorge Lazarte. "The president has made things worse." Mr Mesa's mandate ends in 2007, but as a political independent, he has struggled to remain in power since taking office 19 months ago.

The latest upheaval started after congress approved an energy law two weeks ago that sharply raises taxes on foreign firms exploiting gas and oil, but fell short of Indian demands for heavy state control which would give money to the poor.

It is the worst crisis for South America's poorest country since Mr Mesa's predecessor was toppled by an Indian revolt over gas policy in October 2003 that left 70 dead. No one has died this time around, but vandalism and racial attacks have flourished in the last week. - (Reuters)