INTERVIEW-BOLIVIA'S BANZER SAYS WINNING DRUG WAR

Bolivia, - Bolivian President Hugo Banzer said on Friday that his country
will drop out of
the international drug circuit by the end of his term in 2002 as
eradication of coca leaf hits record levels.

"We are going to continue at this pace and we are going to meet our
promise to eradicate drug trafficking in Bolivia," Banzer said in a
written reply to questions by Reuters.

"It is a commitment with the international community and, above all,
with Bolivians, because in our country also the indices of drug
consumption have increased dramatically in recent years," Banzer added.

Bolivia is the world's second largest producer of coca leaf and the
third largest producer of cocaine paste, which is later purified and
sold. Peru and Colombia are the other leaders.

In 1998 the fields of coca leaf that were wiped out represented lost
production of 70 tonnes of the drug's sulphate base, Banzer said.

During the first year and a half of his government "we achieved a
record net eradication of coca," he said. "We reduced illegal crops by
20 percent, which had never been done before."

A former general, Banzer is in office for the second time. He ruled
Bolivia as a dictator from 1971-1978 following a bloody coup.

Higher economic growth is one of the four basic goals of the new
Banzer administration's Operative Plan of Action, with the others
being more equitable distribution of wealth "without drugs," more
justice and less extreme poverty.

"Today I would add a fifth element that, in my judgment, is
fundamental for institutional strength: the fight against corruption,"
Banzer wrote.

The government has launched an "Integrity Plan", which includes
reforms in the justice system, public administration, the police and
other institutions, Banzer said.

The fight against poverty in one of Latin America's poorest nations
was aided last October when the Paris Club of rich creditor nations
said it was forgiving 80 percent of $1.1 billion in debt owed to it by
Bolivia.

But key to poverty is also underemployment, which affects more than 40
percent of the economically active population, Banzer noted.

Bolivia's economy was expected to grow 5.2 percent this year
accompanied by inflation under five percent, Banzer said. The outlook
for this year is based on austere government spending but increased
public and social investment, he added.