Bolivians back bid to control gas output

BOLIVIA: Bolivians faced the unwieldy task yesterday of turning their referendum over the nation's natural gas reserves into…

BOLIVIA: Bolivians faced the unwieldy task yesterday of turning their referendum over the nation's natural gas reserves into real policies to tighten state control over the industry.

The referendum, seen also as a vote of confidence in President Carlos Mesa, essentially asked Bolivians if they wanted to increase state participation in the impoverished nation's energy industry and export the gas abroad.

Mr Mesa, installed nine months ago after his predecessor stepped down following an Indian revolt, declared victory in the referendum late on Sunday, saying the country had backed each of his five proposals.

Early results appeared to support his claim. The National Electoral Court's web site showed a majority of Bolivians in support of his proposals, with 12 per cent of the voting stations counted early yesterday.

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Analysts say it is a vote that will lend Mr Mesa's government legitimacy in a country divided between the rich elite and millions of poor Indians.

But political analysts say interpreting the referendum's questions and enacting legislation presents another challenge for the 50-year-old leader.

Mr Mesa has no formal political support in a congress known for its internal squabbling.

"This is undoubtedly a victory for Mesa. But the government has only overcome its first obstacle," said Mr Jorge Lazarte, a political analyst.

Fury at a $5 billion plan to export gas via Chile, Bolivia's historical enemy, lay behind a siege of the capital by Indian groups in October in which dozens of protesters were killed by troops.