CONGRESS ELECTS U.S.-EDUCATED BUSINESSMAN PRESIDENT OF BOLIVIA

LA PAZ, Bolivia-Gonzalo Sanchez de Lozada, a wealthy businessman who grew
up in the United States, has won the presidency of this crisis- wracked
South American nation for a second time.

Congress voted the millionaire mining executive back into office Sunday,
choosing him over Evo Morales, the rebellious Indian leader of Bolivia's
coca growers, by an 84-43 vote.

The two men topped the voting in a June national election, but neither won
an outright majority. Under Bolivian law, Congress had to decide between
the two for president.

Sanchez de Lozada, who was president from 1992 to 1997, clinched the
victory more than a week ago after forging an alliance with his one- time
rival, leftist former President Jaime Paz Zamora.

Sanchez de Lozada, 72, will take the helm of a nation mired in an economic
slump as unemployment and rising crime have fueled social unrest. He will
also face a contentious opposition, spearheaded by Morales and his
Indian-dominated Movement to Socialism congressional bloc of 35 legislators.

Morales, 42, the son of Aymara Indian shepherds, gained Bolivia's
long-neglected indigenous majority, a political presence not seen before.
His group may join forces with Indian leader Felipe Quispe's bloc of six
congressmen.

Their victories led to an unusual sight in Congress during the marathon
session to elect Sanchez de Lozada. During the 24-hour debate, many Indians
made their speeches in indigenous languages while wearing their native garb.

Others chewed coca leaf, the raw material of cocaine but also an important
part of centuries-old Indian culture in the Andes.

Morales has led sometimes violent protests against U.S.-backed efforts to
eradicate coca plantations. He has organized regional strikes and highway
blockades that have paralyzed parts of the country.

Morales's supporters railed against Sanchez de Lozada during the
legislative vote, equating him with centuries of repression and accusing
him of "selling the homeland" in a privatization program during his first
presidency.

After the vote, Sanchez de Lozada called for cooperation among Bolivia's
often quarrelsome political factions.

"I don't think that everything that's been said, all the zeal and
confrontations have been anything other than the expression of democracy in
a free country," he said.

Still, he added, "We can't be fighting each other and misunderstanding each
other because the country is in crisis."

Known by the nickname "Goni," Sanchez de Lozada was raised in Washington,
where his father was a diplomat, and later studied philosophy and English
literature at the University of Chicago. He still speaks Spanish with a
distinct American accent.

He has pledged to continue Bolivia's unpopular coca eradication - a program
the United States has hailed as a major success in the war on drugs. But
Morales's opposition force will likely make the program a thorny issue.

Sanchez de Lozada has promised to create jobs immediately with public works
projects such as highway construction. Fighting corruption and social
exclusion were also campaign planks, with pledges to provide up to 800,000
fellowships for poor students.

Bolivia, with 8.2 million inhabitants, is South America's poorest country.
At least six of 10 Bolivians live in poverty; the ratio climbs to 9 of 10
in rural areas. Various economic sectors have clamored for wage increases,
and unemployment now tops 10 percent.

The main legacy of Sanchez de Lozada's first presidency was a
"capitalization" program that partially privatized many of Bolivia's
state-owned industries. He also increased public financing for Bolivia's
impoverished municipalities.

He will be inaugurated for a five-year term on Tuesday. A national teachers
union has announced a strike for the same day.