World Notes Bolivia

In recent years, the twin pillars of the Bolivian economy have been cocaine and tin. The illicit cocaine trade was jolted in July, when President Victor Paz Estenssoro heeded a Washington request and invited U.S. troops to participate in raids on Bolivian drug labs. Now Paz Estenssoro faces a crisis over tin. When more than 5,000 miners marched toward the capital city of La Paz last week to protest present layoffs and future mine closings, Paz Estenssoro responded by declaring a state of siege. Bolivian soldiers promptly halted the advance. Meanwhile, police arrested at least 162 persons, including labor leaders and heads of radical left-wing parties.

The firing of 7,000 miners and the proposed pit closings were part of a desperate government plan to rescue Bolivia's tin industry. Collapsing prices have plunged the country's 21 nationalized mines deep into the red. Paz Estenssoro wants to shut two of the mines and lease most of the rest to worker-run cooperatives. The moves could cost an additional 8,000 jobs.

The state of siege, which includes a nationwide midnight-to-6-a.m. curfew and bans on union and political activity, was the second that Paz Estenssoro has declared in the past twelve months. The President took a similar step in September 1985 to halt a general strike that protested economic austerity moves.