The Bolivian government has ordered the arrest of the governor of Pando province following violent clashes that have killed at least 16 people.
President Morales accused the region's governor of hiring foreign hitmen to attack his peasant supporters.
The governor, Leopoldo Fernandez, who rejects the claims, is reported to have fled to neighbouring Brazil.
The crisis has arisen over radical plans by the President Evo Morales to re-distribute the country's wealth.
The government has been trying to re-establish control in much of the east of the country after several days of violence which has seen opposition groups ransacking government offices and taking control of regional airports.
The government declared a state of emergency in Pando the worst hit region and troops have retaken control of the local airport.
Sporadic clashes have continued between pro and anti government groups throughout much of the east of Bolivia.
