US embassy cable - 04QUITO2588

UNCLAS SECTION 01 OF 02 QUITO 002588 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV, ETRD, EC, Trade 
SUBJECT: MIXED VIEWS FROM INDIGENOUS ON FREE TRADE 
 
REF: QUITO 2509 
 
1.  Summary.  Indigenous leaders are not all opposed to a 
Free Trade Agreement (FTA); however, there is mounting social 
opposition from some indigenous organizations and unions. 
Starting October 1, various social groups will try to obtain 
one million signatures to demand a referendum on whether the 
GoE should negotiate an FTA with the US.  On a different 
topic, the leaders of indigenous groups FEINE and CONAIE both 
believe that the extradition of corrupt Ecuadorian bankers is 
crucial for the US to maintain a positive image in Ecuador. 
Discussing Ecuadorian politics, neither spoke of calling for 
a change in government.  End summary. 
 
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Indigenous Views On FTA 
----------------------- 
 
2.  On September 16, PolOff met with Marco Murillo, head of 
FEINE, an organization of evangelical indigenous.  Murillo 
said he is friends with Minister of Trade Ivonne Baki.  He 
stated he is not opposed to an FTA but wants the Ecuadorian 
public, including indigenous, to be included in the 
negotiation process. 
 
3.  On September 17, PolOff met with Leonidas Iza, president 
of CONAIE (Federation of Indigenous Nationalities of 
Ecuador).  Iza emphasized that he is not anti-US or against 
free trade, but he feels Ecuador is not ready for an FTA at 
this time.  He feels that economic competition would be 
unfair as the US is such a large power.  He also believes an 
FTA would take away Ecuadorian sovereignty, which he feels 
has already been compromised by the presence of the Forward 
Operating Location in Manta. 
 
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Call For A Referendum On FTA 
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4.  Iza said that, starting October 1, CONAIE will work on 
collecting a million signatures to demand a referendum on the 
FTA.  (According to the Article 105 in the Constitution, 8% 
of the electorate's signatures are needed for a referendum. 
One million votes represents approximately ten percent of 
Ecuador's population.)  Newspapers report that up to 30 
organizations will participate in the collection of 
signatures. 
 
5.  Unions such as the CEDOCUT labor federation, led by 
Mesias Tatamuez, also have voiced opposition to an FTA. 
Union boss Tatamuez stated to the press that the FTA 
negotiating team does not represent Ecuadorian society, but 
only the economic sectors.  According to the press, FENOCIN 
(National Federation of Peasant, Indigenous and Black 
Organizations) has called for Minister of Trade Ivonne Baki's 
and the FTA negotiating team's dismissal.  While FENOCIN has 
asked CONAIE to participate in protests at the FTA 
negotiating round in Guayaquil October 25-30, Iza said he has 
still not decided if CONAIE will participate. 
 
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US Image Hurt By Hosting Bankers 
-------------------------------- 
 
6.  Both Murillo and Iza raised the issue of corrupt bankers 
living in the US who have not been extradited back to 
Ecuador.  Iza said that, by allowing them to reside in the 
US, the USG is not helping Ecuador end corruption.  Murillo 
also echoed this statement and added that the US needs to 
show in the Occidental Petroleum case (reftel) that we are 
not just protecting our own interests, but that we support 
impartial justice. 
 
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Views On Ecuador's Political Future 
----------------------------------- 
 
7.  Murillo said that although FEINE does not support Ecuador 
President Lucio Gutierrez, they will not try to get rid of 
him.  He said they would join CONAIE in political 
mobilizations if there is a clear goal; however, they are not 
looking for a change in government.  (Murillo was not 
referring to FTA protests but instead to previous CONAIE 
mobilizations).  He said they would try to influence the GoE 
with a "transparent voice." 
 
8.  Iza mentioned the three things he wants for Ecuador - 
transparency, foreign investment (Iza feels there is a public 
misperception that he opposes it) and an end to corruption. 
Concerning the upcoming October 17 municipal elections, Iza 
feels that Pachakutik will gain some posts. 
 
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Comment 
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9.  By mounting large protests, the indigenous and other 
social groups could disrupt the next round of FTA 
negotiations in Guayaquil, slated to begin October 25. 
Worse, should CONAIE and its allies succeed in obtaining one 
million signatures and forcing an FTA referendum, a clear 
display of no confidence in Gutierrez's chosen economic 
track, the GoE might reconsider the value of continuing free 
trade negotiations.  CONAIE has enjoyed little success lately 
in organizing mass protests, however, and Iza's talk appears 
more bluster than fact.  On corrupt bankers, Murillo and Iza 
seem to be jumping on the bandwagon of criticizing the US. 
The leaders are ignorant of the complexity of the cases and 
of the GoE's poor response to continuous USG requests for 
needed information. 
KENNEY