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Rich Bolivian region keeps wary eye on Evo Morales

SANTA CRUZ DE LA SIERRA, Bolivia (Reuters) - As Bolivia prepares to swear in leftist Evo Morales as its first indigenous president, many wealthier residents of the country's economic heartland wonder if their worst fears will come true.

Life is good for the sizable middle-class in Santa Cruz, Bolivia's most affluent region thanks to soy and a nascent oil and gas industry, where shiny four-wheel drive vehicles line up outside boutiques and drive-in banks and sprawling houses nestle behind security fences.

Santa Cruz residents have always felt removed from the rest of Bolivia, South America's poorest nation, and the region has pressed for greater autonomy. A year ago, pro-autonomy protesters took to the streets, accusing the president of pandering to the poor indigenous majority and undermining the region's economy.

Some fear the election of Morales, an Aymara Indian who will be inaugurated on Sunday, could bring new instability and threaten their economic stability.

Morales, a former coca leaf farmer, said during his campaign he would be a "nightmare" for the United States and has vowed to increase state control of the country's resources to fight poverty.

"There is worry and uncertainty," said Mirtha Melgar, a systems engineer. "There are a lot of ignorant and illiterate people in Bolivia and perhaps Evo has promised them too much and they will lose patience quickly."

Many of the white and mestizo residents of Santa Cruz de la Sierra, the region's capital, who say they have little in common with the Andean people who lifted Morales to power, have a deep-seated distrust of central government in La Paz.

But for now, the landowners and business leaders who advocate autonomy seem to be adopting a 'wait and see' approach to Morales' Movement to Socialism (MAS) party.

"It's too early to be guessing what's going to happen after the 22nd," said Jose Cespedes, president of the Eastern Agricultural Chamber, though he added that he feared Morales would lead a "populist" government. "Knowing (his) intentions, as producers we have to be concerned," he said.

'NOTHING TO FEAR FROM US'

Political analysts say Morales - who won an unprecedented 54 percent of the vote last month - will have to juggle the conflicting demands of left-wing radicals and pro-autonomy groups in Santa Cruz and other richer provinces. Santa Cruz accounts for about a third of Bolivia's economic output.

Many here say Morales should be more concerned about the leftist hardliners based in impoverished mountain communities.

"Evo should be more wary of the left-wing groups that have given him their vote," said Daniel Castro of the Pro-Santa Cruz Committee, which spearheads the autonomy drive. "He has nothing to fear from us because our position is to respect democracy."

The Pro-Santa Cruz Committee, whose candidate won the first election for a provincial governor, or prefect, last month, is pinning its hopes of more independence from La Paz on him.

It wants to keep a bigger share of revenues generated in the province and the authority to do its own business deals.

But the prefect's powers have yet to be defined and analysts say this could become a flashpoint for relations between Santa Cruz and the central government, which the autonomists accuse of corruption and inefficiency.

"For now, they'll be trying to see what they can negotiate. When they see what they're not going to get, they'll start saber rattling," said analyst Jim Shultz of the Democracy Center, a nongovernmental organization based in the city of Cochabamba.

Not everyone wants autonomy in Santa Cruz. The province is home to many newcomers from the highlands, who helped MAS win a surprise third of the vote here.

At a sidewalk cafe, timber merchant Alfonso Herrero said Santa Cruz should be an inspiration for all Bolivians, not a cause of division.

"The western immigrant selling limes at traffic lights will have a stall next year, and the year after that he'll have six," he said.

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