June 01, 2005

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Bolivia: Protests continue, lawmakers meet

La Paz, Bolivia, May. 31 (UPI) -- Bolivian lawmakers met Tuesday for the first time in two weeks amid protests by tens of thousands calling for revisions to the nation's gas industry.

Riot police helped the Bolivian officials enter their offices in downtown La Paz where protesters were also calling for the resignation of President Carlos Mesa and an overhaul to the country's constitution, La Razon newspaper reported in its online edition.

Bolivia's lucrative gas reserves have been a flash point for unrest since March, and on several other occasions in the last few years.

Earlier this month lawmakers approved a controversial bill drastically increasing taxes on foreign-owned oil and gas companies. Many protesters and the country's hard-line opposition, say the measure is insufficient and that total nationalization of the industry is in the best interest of the Bolivian people.

Although opposed to it, Mesa allowed the bill to pass hoping it would quell protests that have recently gripped the capital.

The measure adds a 32 percent tax to an 18 percent royalty that foreign energy companies operating in Bolivia must already pay. All companies will also be required to sign new contracts with the Bolivian government.

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