US embassy cable - 04QUITO2303

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 002303 
 
SIPDIS 
 
E.O. 12958: DECL: 08/19/2014 
TAGS: PGOV, PREL, EC 
SUBJECT: AMBASSADOR'S TOUR D'HORIZON WITH PRES. GUTIERREZ 
 
 
Classified By: Ambassador Kristie A. Kenney.  Reason 1.5 (b&d). 
 
1.  (C) Summary: In a private breakfast meeting with the 
Ambassador and DCM on August 18 at the National Palace, 
President Lucio Gutierrez discussed upcoming municipal 
elections, his Cabinet, and requested additional U.S. aid for 
the social sector.  The Ambassador encouraged free and fair 
elections, emphasized the importance of combating trafficking 
in persons, described extensive USG assistance programs in 
the social sector, and urged Ecuador to consider how to help 
strengthen democracy in Venezuela in the aftermath of the 
referendum there.  Gutierrez exuded confidence and control, 
despite his unpopularity.  End Summary. 
 
Elections 
--------- 
 
2.  (C) Asked about the upcoming October municipal elections, 
Gutierrez exuded confidence.  "After all, I control the purse 
strings," he said.  Asked about the major mayorships up for 
election, Gutierrez said he believed Gen. (ret.) Paco Moncayo 
would win Quito.  The Ambassador noted that the USG is 
scrupulously neutral in Ecuador's internal political affairs. 
 She raised the need for the Executive to carefully separate 
affairs of state from partisan political activity, saying the 
free and fair elections in October will truly be a feather in 
the president's cap.  A successful and fair election would 
culminate a year of positive exposure for Ecuador on the 
international stage. 
 
TIP and Cabinet: Changes Ahead 
------------------------------ 
 
3.  (C) President Gutierrez hinted that there may be changes 
in his Cabinet after upcoming elections, but did not 
elaborate on specific planned changes.  (Note: he recently 
said the same publicly.)  The Ambassador praised the 
President and Minister of Government Raul Baca for this 
leadership on the important issue of trafficking in persons. 
The President agreed that TIP is a very important issue, and 
mentioned the press conference to take place later that day 
at which he would sign a decree making TIP official 
government policy.  The President said he had established a 
Commission to develop a national plan related to TIP and 
proposed legislative reforms to strengthen prosecutions 
against traffickers.  The Ambassador noted great interest and 
leadership in the Ecuadorian Congress on this issue by key 
members, including Jacqueline Silva (PSC) and Miriam Garces 
(ID), and highlighted USG interest in working together with 
other nations to jointly combat this scourge. 
 
Social Sector Assistance 
------------------------ 
 
4.  (SBU) Gutierrez made a pitch with the Ambassador for 
additional USG assistance in the social sector, as he had 
done with CoDel Weller (septel).  What is needed, he said, is 
a "Plan Ecuador" to invest in social infrastructure in health 
and education to combat poverty and external threats fueling 
political instability.  The DCM noted that several USG 
assistance programs designed to address these concerns will 
be announced in September, including $20 million in INL 
funding and $20 million from AID.  The Ambassador mentioned 
the series of unquantifiable Medrete exercises we conduct to 
provide health services to Ecuadorians, which target 
under-served and indigenous areas. 
 
Venezuela 
--------- 
 
5.  (C) The Ambassador raised with the President the need for 
Venezuela's Andean neighbors to consider how to contribute to 
the strengthening of Venezuelan democracy in the wake of the 
referendum.  Public aspiration for democracy was reflected in 
the patience and determination of voters to endure long lines 
to cast their referendum vote.  Gutierrez agreed this is an 
important issue to consider. 
 
Comment 
------- 
 
6.  (C) Gutierrez appeared relaxed, in control and 
optimistic, despite his low popularity in the polls.  Perhaps 
energized by recent campaign-like trips to inaugurate public 
works projects in areas his party has electoral hopes, his 
manner belied conventional wisdom that the Patriotic Social 
Party is heading towards electoral oblivion.  (Note: the 
party narrowly failed to meet the 5% threshold in the 2002 
election, and will lose its official registry if it fails to 
do so in the upcoming municipal elections.)  Gutierrez' 
naming of Moncayo as the clear favorite in the Quito mayoral 
race was also somewhat odd, since most view that race as very 
tight.  It may be explained by the fact that although now 
political competitors, Moncayo and Gutierrez served together 
in the Army, and Moncayo has referred to Gutierrez as a 
protege. 
 
KENNEY