US embassy cable - 04QUITO3115

UNCLAS SECTION 01 OF 02 QUITO 003115 
 
SIPDIS 
 
DEPARTMENT PLEASE PASS TO USAID AA/LAC AND USAID/LAC/SA 
 
E.O. 12958: N/A 
TAGS: EAID, EC, ECON, EFIS, ETRD, PGOV, PREL, SENV, Environment 
SUBJECT: DONORS LOSING PATIENCE WITH MANAGEMENT OF GALAPAGOS 
 
REF: A. QUITO 2923 
 
     B. QUITO 2704 
 
1.  Summary.  Ecuador continues to take two steps backward 
for each step forward in the Galapagos.  President Gutierrez 
signed a decree in October banning the export of shark fins 
from Ecuador (Reftel A), to promote conservation.  The 
Minister of the Environment, Fabian Valdivieso, however, 
replaced the interim director of the Galapagos National Park 
(GNP) yet again with a pro-fishing advocate, to the 
consternation of the donor community.  The Japanese aid 
agency (JICA) is threatening to withdraw funding if stability 
in the GNP is not restored.  In a meeting with the 
Ambassador, Valdivieso acknowledged the problems but 
presented no clear vision on fixing them.  His only request, 
when asked how we could help him, was to ask the Ambassador 
to raise these issues with President Gutierrez.  The Embassy 
is currently re-evaluating our aid program, looking for ways 
to promote conservation in the Galapagos.  End Summary. 
 
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Another Interim Director 
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2.  Citing the Civil Service Law that only permits interim 
directors to be in place for a period of no more than 60 
days, Minister of the Environment Fabian Valdivieso removed 
Victor Carrion as Interim Director of the GNP on November 11. 
 Valdivieso seems to have broadly (some would say dubiously) 
interpreted this law, which further states that after the 
60-day period has expired a permanent director must be 
installed.  Victor Carrion was only in office for 45 days 
when he was removed.  However, contrary to his own legal 
view, Valdivieso did not name a permanent director.  Instead 
he appointed another temporary director, Marco Hoyos, who had 
been working in the Environmental Education department in the 
GNP.  Hoyos, 60-day term will expire on January 11, 2005. 
Valdivieso also mentioned that he had faced political 
pressure to replace Carrion, thus fueling Mission concerns 
about GOE's commitment to depoliticize the GNP. 
 
3.  Hoyos made his agenda clear from day one - aid local 
fisherman.  He removed the Chief of the Marine Reserve Unit 
and the Control and Surveillance Unit.  He also "recommended" 
that many of the Marine Reserve guards take vacation until 
their contracts expire at the end of December 2004, the same 
time the lobster-fishing season ends.  These changes will 
severely limit monitoring of the Marine Reserve during this 
critical fishery season. 
 
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Minister of the Environment - All Rhetoric/Little Action 
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4.  The Ambassador met on November 26 with Valdivieso to 
discuss the prolonged instability in the Galapagos.  She 
frankly noted that there is a lot of discontent in the 
international community about how management of the GNP is 
spinning out of control.  Donors are contemplating pulling 
out of the Galapagos because of the lack of stability and 
vision in park management, she told Valdivieso.  JICA (the 
Japanese International Aid Organization) sent a strongly 
worded letter to GNP Director Hoyos (which has received wide 
distribution) stating that such abrupt changes in personnel 
would cause the Japanese Government to consider the GNP 
unstable.  They stated that there is clear precedence of JICA 
projects being terminated because of such instability. 
 
5.  In addition to the conflict between "conservationists" 
and "extractionists", Valdivieso noted that there is a 
growing tension between the tourism and fishing industries 
over the utilization of the marine reserve.  He talked 
obtusely of short-term actions and long-term goals to address 
the conflict between users of the Galapagos Marine Reserve. 
He said he would have the new, permanent director in place 
before Hoyos' term expires (See Reftel B for explanation of 
proposed process for choosing park directors).  He said he 
would also work to stabilize the contracts of the park 
employees.  (Note: Some 225 GNP yearly contracts expire on 
December 31.  Neither Valdivieso nor Hoyos have indicated if 
those contracts would be renewed or if those workers would be 
replaced with new employees.)  Valdivieso proposed 
establishing a Sub-Secretary position in the Ministry of the 
Environment to oversee the Galapagos.  He would also like to 
convene an international forum here in Ecuador some time in 
the Spring 2005 to address the broader Galapagos issues.  He 
also asked the Ambassador to call President Gutierrez and 
clearly explain the ramifications of continued international 
discontent. 
 
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Comment 
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6.  Valdivieso would be the primary beneficiary from the 
proposed establishment of a Sub-Secretary to oversee the 
Galapagos, because it will give him a ready scapegoat should 
else go wrong in the Galapagos.   We gave a lukewarm response 
to his idea to introduce yet another level of bureaucracy 
into the process. 
 
7.  We support the idea of an international forum on the 
Galapagos to address the long-term issue of sustainable 
development, but have made it abundantly clear to Valdivieso 
that the instability in and politicization of the GNP needs 
to be addressed now, before other donors begin withdrawing 
support.  We are also re-evaluating our Galapagos aid program 
looking for more sticks in addition to the carrots we have 
offered in the past. 
 
8.  The Ambassador regularly bends the President's ear on 
Galapagos matters and, given the heightened international 
exasperation with how the Gutierrez administration has 
handled the Galapagos, will raise the issue again.  But, 
without concrete measures by the GOE to stabilize the 
situation, Ecuador will  soon face serious consequences from 
donors and in degradation to this International Heritage 
site. 
 
KENNEY