BOLIVIA'S DRUG WAR WINS U.S. APPROVAL

WASHINGTON (Reuters) - Bolivia, the third-largest cocaine producer in
the world, has done enough to fight the drug trade over the past year
to be spared U.S. sanctions, U.S. officials said yesterday.

The officials, who spoke on condition of anonymity because the
decision will not be made public until Monday, said Bolivia would not
be put on the U.S. list of states that have "failed demonstrably" to
meet their counter-narcotics commitments.

If Bolivia were on the list, which is to be announced by the White
House Monday, the United States could cut off U.S. aid other than
counter-narcotics and humanitarian funds.

U.S. officials cited two reasons for the decision.

First, Bolivia met a U.S. target of eradicating at least 5,000
hectares of coca crop. Second, U.S. officials believe placing it on
the list could undercut counter-narcotics co-operation.

The presidential determination will likely paint a mixed picture of
counter-narcotics work in Bolivia, showing increased drug seizures,
but suggesting those reflected higher cocaine production.

Cocaine seizures were up 17 per cent to 11 tonnes in Bolivia from
October 2006 to May 2007, while coca leaf seizures increased by 48
per cent, said one U.S. official.