Govt 23 Nov ended martial law in Pando department, imposed after dozens killed in Sept demonstrations; prefect Leopoldo Fernandez still detained, awaiting trial. National electoral court (CNE) early month warned Jan constitutional referendum would be suspended if martial law not lifted. President Morales 1 Nov suspended U.S. DEA activity in Bolivia, accused of espionage and “funding criminal groups”; 20 Nov said hopeful of improving relations with incoming Obama administration.

Agreement on constitutional referendum offers hope of resolving protracted political crisis that left dozens dead in Sept clashes. Govt-opposition talks failed early month, but compromise over new constitution text eventually reached. Congress 20 Oct passed law with two thirds of vote, setting referendum for 25 Jan 2009, new general elections Dec 2009. Almost 100 articles modified in new charter, including increasing regional autonomy. President Morales accepted will stand for re-election only in 2009, renounced possible 2014 third term.

Violent demonstrations over constitutional referendum intensified, but late month govt- opposition talks present opportunity to ease political crisis. At least 30 killed in Pando department clashes early month; govt deployed troops, 12 Sept imposed martial law in Pando, 16 Sept arrested prefect Leopoldo Fernández.Anti-govt protesters in opposition departments occupied govt buildings, natural gas fields, continued blockade of transport routes throughout month. UNASUR heads of state 15 Sept declared support for President Morales, called for dialogue. OAS-, UN-observed govt-opposition talks from 17 Sept prompted lull in violence; negotiations opened over modifications to new constitution, departmental autonomy, tax revenues. Both sides 29 Sept agreed to postpone further talks until 5 Oct. Morales 11 Sept expelled US ambassador, accused of supporting opposition. Venezuela President Chávez 11 Sept said will intervene if Morales “toppled or killed”.

Mandate of President Morales confirmed in 10 Aug recall referendum, but political deadlock continued and violence grew end-month. Morales received 67.4% of recall vote; 3 of 9 prefects, 2 from opposition, recalled. 14 Aug attempt by Morales to broach dialogue with opposition failed. Sporadic violence at pro- and anti-govt demonstrations through month: 2 miners killed 6 Aug in clashes with police. Violent demonstrations erupted in Santa Cruz 29 Aug after govt issued decree on 7 Dec constitutional approval referendum. Opposition prefects said would not carry it out in their departments; Chuquisaca prefect 30 Aug announced 30 Nov departmental autonomy referendum. VP García denounced formation of “terrorist group” in Santa Cruz. General strike in 5 opposition departments 19 Aug to protest govt use of gas revenue for pension scheme; opposition in eastern lowlands organised blockades from 25 Aug of key transport routes to Argentina, Paraguay.

Confusion ahead of 10 Aug recall referendum for president, VP, departmental prefects: constitutional court 23 July ordered national electoral court (CNE) to suspend poll pending decision on constitutionality; CNE 24 July refused, said to go ahead as planned. 6 of 9 departmental electoral courts (CDE) 30 July also asked CNE to suspend. Earlier, opposition prefects said would accept referendum, had threatened boycott June.

Massive pro-autonomy votes in Beni, Pando departmental referendums 1 June, Tarija 22 June (all over 80%). Prefects of these departments, plus Cochabamba, Santa Cruz, 23 June said would boycott 10 Aug recall referendum unless complies with autonomy statutes, instead seek early general elections. Opposition candidate Savina Cuéllar won 29 June Chuquisaca departmental elections, promised autonomy referendum. U.S. relations further deteriorated with 9 June violent protests at La Paz embassy, late-June ousting of USAID from Chapare region. Protests followed confirmation that U.S. last year granted asylum to former defence minister Berzaín, accused of ordering 2003 crackdown on protesters.

Political situation remains polarised after 85.6% vote in favour of autonomy in 4 May Santa Cruz (SC) referendum; no major violent incidents around poll. President Morales dismissed referendum as unconstitutional. SC started implementation of autonomy statutes 15 May. In ongoing political deadlock, govt and opposition agreed 8 May to hold recall referendum for president, vice president, departmental prefects 10 Aug. Minor clashes ahead of Beni, Pando 1 June autonomy referendums.

Political crisis over new constitution continued, tensions grew, ahead of 4 May referendum in Santa Cruz (SC), first of 4 provinces to vote on increased autonomy. Govt froze SC accounts 25 Apr, but reversed decision shortly after. President Morales said referendum unconstitutional but rejected MAS party calls to declare martial law, ruled out military response. Regional representatives visited country early month to mediate. Land ownership conflicts erupted, including violent clashes between Guarani indigenous people and estate farmers in Santa Cruz mid-month. Pro-Morales Guarani People’s Assembly self-declared autonomy from Santa Cruz department 20 Apr.

National Electoral Court (CNE) 7 March suspended 4 May referendum on new constitution citing insufficient preparation time. CNE also rejected autonomy referendums initiated by departments; Santa Cruz, Beni departments said would ignore decision.

President Morales signed law 29 Feb setting 4 May date for referendum on draft of proposed new constitution after congress approved national vote; Morales’s supporters blocked many opposition lawmakers from attending vote. Technical dialogue commission set up to address constitutional, autonomy dispute failed to make progress, while central government began pension payments 1 Feb using provincial funds allocated from hydrocarbon tax without governors’ agreement. Santa Cruz department said autonomy referendum to be held 4 May.