US embassy cable - 04QUITO2446

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 002446 
 
SIPDIS 
 
SECSTATE FOR USTR 
 
E.O. 12958: DECL: 09/07/2014 
TAGS: PREL, PGOV, ELAB, EC, President 
SUBJECT: PRESIDENT GUTIERREZ' LATEST POLITICAL BLUNDER 
 
REF: QUITO 2251 
 
Classified By: Ambassador Kristie A. Kenney for reasons 1.4 (b&d). 
 
1.  (C) Summary:  President Gutierrez urgently invited the 
Ambassador to a private breakfast on September 7 to discuss 
fallout from his recent visit to Panama.  There, he had met 
with disgraced former president Abdala Bucaram, setting off a 
political firestorm at home.  After hearing the President's 
explanation of events, the Ambassador took the opportunity to 
stress key USG priorities on TIP, labor rights, the promotion 
of an environment conducive to trade, and Galapagos national 
park stability.  SepTels will report on points related to 
Galapagos park management and ongoing Occidental commercial 
disputes. End Summary. 
 
Background 
---------- 
 
2.  (SBU) Press interest in a possible meeting was provoked 
by ongoing speculation that Gutierrez has agreed to help 
Bucaram return from exile in Panama, where he has resided 
since he was declared mentally incompetent to rule by 
Congress in 1997 (see RefTel).  In this context, the trip to 
Panama to attend the inauguration of Panamanian President 
Torrijos caused speculation about whether Gutierrez and 
Bucaram would meet, which FM Zuquilanda publicly denied. 
 
Panama:  Comedy of Errors 
------------------------- 
 
3.  (C) Nevertheless, the meeting with Bucaram did in fact 
take place and became public.  The President explained his 
political blunder by telling the Ambassador simply that 
"these things just happen."  Gutierrez said that upon 
returning after midnight to his hotel room after an eventful 
inauguration schedule, (during which he met, productively, 
with President Lagos; with the President of Taiwan, prompting 
inquires from the PRC; and (inexplicably) with a 
representative of the Polisario), he found Bucaram waiting 
from him in the hallway outside his room, and felt obliged 
out of common courtesy to agree to a brief meeting. 
 
4.  (C) According to Gutierrez, Bucaram proceeded to plea his 
case to return to Ecuador on "humanitarian" grounds, alleging 
a political conspiracy to keep him from returning to Ecuador 
after eight years of separation from family, friends and even 
Ecuadorian cuisine.  Despite the notorious corruption of his 
government, Bucaram also pleaded financial difficulty 
maintaining his lifestyle in exile.  He accused the 
opposition Social Christian Party of Leon Febres Cordero and 
others of trying to entice him to return to overthrow 
Gutierrez.   Comment:  this is farfetched, since Bucaram is 
probably the only Ecuadorian politician with lower popularity 
than Gutierrez himself.  End Comment. 
 
5.  (C) Ultimately, according to Gutierrez, Bucaram asked him 
to form a governmental commission to review the charges 
against him (a sort of "truth commission," as he put it) with 
a view to clearing the legal obstacles preventing his return 
(i.e. several warrants for his arrest on corruption charges). 
 Gutierrez said he responded to Bucaram's request with a 
promise only to ask his government's legal experts to 
consider the request.  Gutierrez said his legal experts have 
advised against any such effort, and he now has no plans to 
create such a commission.  He believes the political reaction 
to his meeting with Bucaram is a symptom of election politics 
in which the opposition (especially the PSC) seeks to gain 
advantage, especially in the Sierra region where his party, 
the PSP, hopes to gain ground. 
 
Other Issues:  TIP and Labor 
---------------------------- 
 
6.  (C) Gutierrez brightened when the Ambassador raised other 
areas of USG interest.  He cited the submission to Congress 
of new anti-TIP legislation on September 9, noting the 
positive press and public reaction to government efforts in 
this area.  "Even Congressional Deputy Bohorquez," he said, 
"has supported Government efforts in this area, for a 
change," alluding to his sometimes politically strained 
relationship with his wife.  The Ambassador responded that 
there are several women Congressional deputies who have shown 
great interest and deserve credit for efforts to address 
deficiencies in the laws against TIP, from various political 
parties. 
 
7.  (SBU) The Ambassador also raised the draft Presidential 
decree on subcontracting, which we understood would be issued 
shortly and would clarify the labor code and prevent abuse of 
subcontracting to inhibit workers' freedom of association. 
Gutierrez indicated he was aware of the issue and would check 
with Labor Minister Izurieta on its status.  The Ambassador 
told the President we would do the same. 
 
Comment 
------- 
 
9.  (C) Gutierrez' clumsy handling of his visit to Panama 
reflects either poor political judgment or naivete.  We tend 
to agree with the President that the opposition, led by PSC 
leader Febres Cordero, is milking the Bucaram issue primarily 
for electoral purposes in the run-up to October 17 municipal 
elections.  Unfortunately, this blunder is only the latest in 
a series of events which have cost this government its 
credibility and threatens to undermine public faith in 
democracy.    - 
KENNEY