US embassy cable - 04QUITO2891

UNCLAS QUITO 002891 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL, PGOV, ECON, ETRD, EC, CH, Regional 
SUBJECT: ECUADORIAN, CHILEAN FM'S TALK BORDERS, TRADE 
 
REF: QUITO 2874 
 
 1.  Summary.  Chilean Foreign Minister Ignacio Walker met 
with Ecuadorian officials in Quito on October 28.  In a 
subsequent joint declaration, the countries committed to 
begin FTA negotiations in 2004, respect existing 
international treaties (in reference to Chile's maritime 
disagreements with Peru and Bolivia), and investigate ways to 
increase Chilean investment in Ecuador.  Walker spoke 
publicly in support of Gutierrez and Ecuadorian democracy, 
and Chilean and Ecuadorian officials later told Emboffs they 
believed the comments could strengthen Gutierrez's hand 
against possible impeachment.  End Summary. 
 
2.  Chilean FM Ignacio Walker visited Quito October 28, 
seeking Ecuadorian support in Chile's territorial disputes 
with Peru and Bolivia, and searching for opportunities to 
increase Chilean investment in Ecuador.  Media reported the 
following day that Walker had met with President Gutierrez, 
Ecuador's Foreign Minister Patricio Zuquilanda, President of 
Congress Guillermo Landazuri, the Congressional Committee on 
International Subjects and National Defense, the 
Ecuadorian-Chilean Parliamentary Committee, and Quito Mayor 
Paco Moncayo.  To obtain a more direct readout, Poloff 
October 28 called on Chilean Ambassador Nelson Haddad. 
 
3.  Haddad claimed Walker had achieved three major 
breakthroughs in the bilat.  The foreign ministries signed an 
agreement to begin negotiating an FTA at the end of 2004 and 
sign the agreement by 2005.  Both governments affirmed the 
importance of respecting international law and the maritime 
treaties that Chile, Ecuador, and Peru had signed in 1952 and 
1954.  Finally, Chile's National Petroleum Company will 
strengthen its relations with Petroecuador and invest in 
additional petroleum infrastructure and exploration in 
Ecuador.  The last point is of particular sensitivity in 
Ecuador, as Chilean investment here has decreased since 2001. 
 Recent press reports note the countries will begin a 
dialogue over ramping up Chilean investment, particularly in 
infrastructure projects along Ecuador's southern border. 
 
4.  During public appearances, Walker expressed support for 
Gutierrez and Ecuadorian democracy and institutions.  In 
later readouts, Chilean and Ecuadorian diplomats told poloffs 
they believed the Chilean FM's statements could strengthen 
the Gutierrez government, as Chile's leaders and democracy 
are well respected in Ecuador. 
 
4.  Comment:  Ecuadorians do respect Chile.  In fact, we've 
often suggested Gutierrez seek bilats with Ricardo Lagos, 
hoping the latter's statesman status would rub off on the 
younger GoE leader.  Yet we're dubious the Chilean FM's 
comments will do much to lower political temperatures here, 
currently running hot.  And while we applaud free trade and 
the GoE's efforts to seek an FTA with Chile, we doubt Ecuador 
has the staff or capacity to simultaneously negotiate deals 
with that nation and the United States.  End Comment. 
KENNEY