Pay no attention to those men with the guns!

Edna Fernandes provides my laugh for today after reading her coverage of Evo Morales' latest move as President of Bolivia in the Times of London: President Evo Morales of Bolivia has ordered the military to seize 56 foreign-owned oil and gas fields in a nationalisation move that hit shares of companies operating in the Latin American country today. Senor Morales called on the military to occupy the fields and gave warning he would throw out foreign companies who refused to recognise the nationalisation of the country?s oil and gas fields, which are the second largest reserves in the region after Venezuela. The leftwing President, who came to power on a platform of re-nationalisation, warned of similar action in other sectors. "We are beginning by nationalising oil and gas. Tomorrow we will add mining, forestry and all natural resources ? what our ancestors fought for," he said in a May Day speech at the San Alberto gas field in southern Bolivia. Foreign investors were unable to assess the full impact of the decision, as details of the nationalisation policy were not readily available. The President has given the companies 180 days to renegotiate contracts. The nationalisation policy would effectively downgrade the role of foreign companies from owners of the assets to simply operators. The Spanish Government swiftly declared its "profound worry" about the nationalisation, as shares in the Spanish energy group Repsol YPF took a hit. The Bolivian Embassy in London told Times Online the President would issue a further statement on the details of the nationalisation policy in the coming week and denied the move would undermine foreign investment in the country, as investors take fright. "In the end, the companies will understand these new rules help Bolivia and make it more stable. They should not be scared," said Pablo Ossio, the Charge d?Affairs at the embassy. Asked whether the Bolivian Government would compensate foreign companies who lose their assets, he said there would be an audit of foreign energy assets over the coming six months. "But I don?t think they?ll be compensated," he said. UPDATE: The Financial Times reports on the international fallout. The Bolivian move has the greatest impact on... the socialst governments of Spain and Brazil: Spain on Tuesday warned Bolivia that nationalisation of its energy sector would have ?consequences [for] the bilateral relationship?, a threat that could lead to the ending of debt relief. The Spanish government said it was ?deeply concerned? by the nationalisation law introduced by Evo Morales, Bolivia?s leftwing president, and complained about the ?way the changes were promulgated?. Repsol YPF, the Spanish energy group, has invested more than $1bn in Bolivian gas production, which accounts for 18 per cent of the company?s total energy reserves and 11 per cent of production. Brazil?s Petrobras is another big investor, and other international companies could be forced to write off their Bolivian gas reserves, analysts said.... Reacting angrily to Mr Morales? decision to seize control of gas fields using army troops and annul existing contracts, Antonio Brufau, Repsol?s chairman, told Argentine radio: ?We were told there would be time for negotiations, but obviously this was not the case.? In Brazil, which receives half of its natural gas from Bolivia, President Luiz In?cio Lula da Silva called an emergency meeting of his cabinet and Petrobras executives, amid fears that any supply interruptions could trigger an energy crisis in South America?s largest economy. Mr da Silva intended to consult other South American leaders about how to respond to the ?unfriendly? move, his spokesman said. Mr Brufau said Repsol the new decree ?sidestepped all industrial logic that ought to govern the relations between governments and companies?.