LA PAZ, Bolivia – Bolivia’s leftist government said Tuesday it would extend control over mining, forestry and other sectors of the economy after President Evo Morales nationalized the country’s huge natural gas industry. Foreign governments warned relations could be damaged.

Soldiers were posted at 56 gas installations around the country a day after Morales issued a decree that analysts say could drive petroleum companies from South America’s poorest nation and isolate Bolivia from important allies like Brazil and Spain.

The move solidifies Morales’ role alongside Venezuela’s Hugo Chavez and Cuba’s Fidel Castro in Latin America’s new axis of socialist-inclined leaders united against “capitalist, imperialist” U.S. influence.

In Peru, Ollanta Humala, the nationalist presidential hopeful headed to a runoff election, has said he too would force foreign mining and gas companies to renegotiate contracts. But his vice presidential running-mate, Gonzalo Garcia, said Tuesday that Humala would take a less confrontational stance than Morales.

Morales said Monday that the gas decree “was just the beginning, because tomorrow it will be the mines, the forest resources and the land.” Morales’ planning minister earlier this month spoke of plans for “drastic reforms” of mining laws.
thestate.com

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