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Bolivian
President Evo Morales has said he will expel the US Agency for International
Development (USAID).
Mr Morales
accused the agency of seeking to "conspire against" the Bolivian
people and his government.
US state
department spokesman Patrick Ventrell rejected the allegations as
"baseless and unfounded".
USAID has
been working in Bolivia for almost five decades, and had a budget of $52.1m
(£33.4m) for the country in 2010, according to its website.
"This
harms the Bolivian people. We think the programmes have been positive for the
Bolivian people and fully co-ordinated with the Bolivian government and
appropriate agencies under their own national development plan," said Mr
Ventrell.
In 2008, Mr
Morales expelled the US ambassador and Drug Enforcement Administration (DEA)
for allegedly conspiring against his government.
'Nationalise
dignity'
On previous
May Days, Mr Morales had announced the nationalisation of key industries, such
as hydroelectric power and the electricity grid.
But on
Wednesday he said he "would only nationalise the dignity of the Bolivian
people".
Speaking at
a rally in La Paz, the president said there was "no lack of US
institutions which continue to conspire against our people and especially the
national government, which is why we're going to take the opportunity to
announce on this May Day that we've decided to expel USAID".
He then
turned to his Foreign Minister, David Choquehuanca, and asked him to inform the
US embassy of his decision.
The
president said the expulsion was in protest at a recent remark by US Secretary
of State John Kerry, who referred to Latin America as "the backyard of the
United States".
Mr Kerry
made the remark as he tried to persuade US Congressmen of the importance of the
region.
Mr Morales
has threatened USAID with expulsion in the past, saying that its programmes
have "political rather than social" ends. He has also accused it of
"manipulating" and "using" union leaders.
Drugs war
The
president, who heads his country's union of coca growers, has also been
critical of US counter-narcotic programmes in Bolivia, repeatedly stating that
the fight against drugs is driven by geopolitical interests.
In 2008, he
expelled the Drug Enforcement Administration, saying it was aiding the
opposition.
Bolivia is
among the top three producers of coca in the world, according to the United
Nations World Drug report. Coca, the raw ingredient for cocaine, has been used
in the Andes for thousands of years as a mild stimulant and sacred herbal
medicine.
USAID cites
as its main aims the strengthening of Bolivia's health system and the provision
of "equal access to health care by eliminating social exclusion", as
well as improving "the livelihoods of economically and socially
disadvantaged people by increasing income and managing natural resources".
The agency
also supports programmes to help Bolivian farmers to replace coca with other
crops.
The US
government had a separate budget of $20.3m (£13m) for its counter-narcotics and
military programme in 2010, but it is not clear which agency distributes that
money in Bolivia.
Evo Morales
became Bolivia's first indigenous president in 2005.
He was
re-elected by a landslide in 2009, but has since faced protests from indigenous
communities angered by the construction of a major road through their
territory, and by police and army officers demanding better pay.

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