BOLIVIA CONCERNED ABOUT SIGNIFICANT INCREASE IN COCA CULTIVATION

LA PAZ - The Bolivian government is concerned about a U.S. report
indicating that coca cultivation has increased 23 percent over the past
year and is twice the amount allowed by law.

Presidential spokesman Mauricio Antezana called the situation alarming,
adding that the executive branch was studying the report released by the
U.S. Embassy in La Paz.

Antezana said "the administration can do no less than express its concern"
about these reports, because the previous administration had claimed
significant advances in the eradication of illegal coca crops, "and now we
find this was not the case."

The study, based on data from satellite images collected between May and
June in Bolivia's coca-producing region, determined that 24,400 hectares
(60,247 acres) of coca are currently under cultivation.

A 1988 law governing coca and controlled substances allows coca to be grown
in 12,000 hectares (29,630 acres) in the Yungas region east of La Paz for
traditional use by peasants, which means that coca is being cultivated
illegally in the remaining 12,400 hectares.

The report indicates that new Bolivian coca crops cover 5,600 hectares
(13,827 acres), far greater than the 1,100 hectares (2,716 acres)
eradicated during the first half of the year.

In Chapare, 2,000 hectares (4,938 acres) of new coca crops have been reported.

The previous administration - which ended its term in office in August -
estimated in 1997 that 45,800 hectares (113,086 acres) of coca were planted
in Chapare. This amount was reduced to 19,900 hectares (49,136 acres) by
2001, thanks to a plan approved by the late former Bolivian President Hugo
Banzer.

According to the U.S. Embassy, Bolivian peasants could potentially produce
19,000 metric tons of coca leaves, which would yield 60 metric tons of pure
cocaine.

Antezana said the report would not affect negotiations begun over the past
few weeks between Bolivian President Gonzalo Sanchez de Lozada and coca
growers in Chapare, although he acknowledged the matter would be taken into
consideration when studies on illegal coca cultivation are undertaken.