Bolivian crisis defused

Press, 30 January 1984, Page 10

Bolivian crisis defused

NZPA-Reuter La Paz Bolivian workers have accepted a Government wage increase and defused a crisis that had led to a hunger strike by 4000 trade unionists. But leaders of the com-munist-led Labour Confederation, who have been fasting since last Monday, said they would end the protest only after a formal pact is signed with the Government. President Hernan Siles Zuazo’s Government offered to increase the SUS 62 minimum wage by 57 per cent, back-dated to last Decem-

ber 1, and freeze the price of basic goods over four months. Labour had sought a minimum wage of $3OO tied to inflation. The hunger strike and a row between the presidency and the opposition-con-trolled Congress, posed the greatest challenge to the President since he took office in October, 1982. The crisis was sparked last November when the Leftist Government announced an austerity programme, devalued the peso by 60 per cent, and increased food and fuel prices.