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It goes back a long time and was because Chile and Bolivia do not have full diplomatic relations because of the long-festering dispute over Bolivia's maritime status (landlocked since the War of the Pacific.)
Bolivian Foreign Minister David Choquehuanca said Bolivia could not support Insulza, but also could not vote against him because Bolivia has had and will maintain good relations with the OAS. Choquehuanca said the OAS has supported Bolivia's claims to access to the Pacific, and noted that La Paz did not vote for Insulza in 2005 either. ---------------------
En el caso de Bolivia, el país decidió abstenerse al sugerir la ausencia de relaciones diplomáticas entre Chile y Bolivia por efecto de la desatendida demanda marítima. “No podíamos apoyarlo a Insulza, tampoco queremos obstaculizar el desarrollo importante de esta institución. Hemos hecho conocer que no somos parte de la aclamación. Bolivia no tiene relaciones diplomáticas con Chile; nosotros trabajamos con la OEA, hemos tenido buen trabajo, buena coordinación con las autoridades de la OEA, ellos han respaldado la institucionalidad democrática de Bolivia, por eso hemos decidido no obstaculizar”, declaró el canciller, David Choquehuanca, en La Paz, donde además recordó que tampoco votó a favor del chileno el 2005.
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An interesting aside: Chile only supported Insulza after Pinera insisted that the OAS not meddle in Chile's internal affairs, i.e. the negotiations between La Paz and Santiago under Michelle Bachelet and Evo Morales in recent years. (I think that under Pinera those negotiations will be put on hold.)
Apparently there is bad blood between rightwinger Pinera and Insulza, a member of Chile's Socialist Party.
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Suspect that the OAS will wither on the vine during Insulza's new term. It is a Cold War anachronism that is no longer relevant. With the formation of the new hemisphere body (sans USA and Canada) next year, the OAS likely will become ever more pointless.
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