US embassy cable - 05GUAYAQUIL412

UNCLAS SECTION 01 OF 02 GUAYAQUIL 000412 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL, PGOV, ETRD, EC 
SUBJECT: LOS RIOS PROVINCE: WORKING HARD FOR PROGRESS 
 
 
1.  SUMMARY: Despite its rich soil and subsequent 
agricultural importance for Ecuador, Los Rios province 
faces an uphill battle in its struggle to regain the 
prosperity it realized during the glory days of the 
cacao industry boom.  Woebegone colonial mansions may 
dot the capitals landscape, but the decrepit, run-down 
architecture pervading the rest of the city reflects the 
reality for the majority of the provinces population. 
Nevertheless, municipal and provincial leaders are 
striving to make a better future for the next 
generation.  They view the signing of a free trade 
agreement with the U.S., improvements in the education 
system, attracting more tourists, and closer ties with 
h 
Quito as their best hopes. END SUMMARY. 
 
 
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So Close, Yet So Far Away 
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2.  Guayaquil Consul General, Pol/Econ officer, and PAS 
specialist traveled to Babahoyo, capital of Los Rios 
province, on March 30 for meetings with local 
authorities, the first such official USG visit in many 
years.  He also visited with the Consulates warden in 
Babahoyo and toured a factory that exports canned fruits 
and vegetables to the U.S. 
 
3.  The provincial capital of Babahoyo may be just an 
hour away from financial powerhouse Guayaquil, but it is 
worlds away in terms of development.  In fact, it is 
often referred to as Ecuadors least urbanized capital, 
and within minutes of crossing Babahoyos city limits, 
it becomes apparent how it achieved such notoriety. 
Noteworthy tourist attractions include a litter-strewn 
park, a modern cathedral rapidly losing its facade, 
and former floating brothels recently converted to 
family dwellings. 
 
gs. 
 
4.  Poised between the two dominant provinces of 
Pichincha and Guayas, Los Rios has a population of 
750,000.  According to the governor, 80% of Ecuadors 
agriculture is based in Los Rios, its 300-odd rivers 
providing irrigation to soil rich in nutrients. 
However, as other officials pointed out, because 85% of 
the land is owned by a small number of people, the 
majority of the population is comprised of poor farmers 
with barely enough land to turn a profit, much less 
compete with the agro-industrial conglomerates.  That 
fact, combined with a lack of employment opportunities 
outside of farming, produces high levels of emigration 
to other cities and countries. 
 
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Authorities Agitating for Change 
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5.  In office less than three weeks, newly appointed 
Governor Roboan Gavilanes used the CGs protocol visit 
to publicly lay out his plans for the province.  At a 
surprise (at least to us) press conference/staff 
f 
meeting, he expounded on the merits of education to 
promote development, and of the need to impart 
discipline in the governing structure and population. 
Heavy on sweeping statements emphatically delivered, and 
light on substance, his speech was redolant of the 
campaign trail of his failed run for prefect in the 2004 
sectional elections.  However, he did profess interest 
in dialogue with the USG regarding efforts both entities 
could undertake to promote regional investment. 
 
6.  During a luncheon hosted in honor of the CG by the 
acting prefect and members of the provincial council, 
several people expressed their strong support for the 
signing of a free trade agreement with the USG.  Though 
they all hail from the agricultural sector, one of the 
sensitive areas in current negotiations, they are more 
apprehensive about what they would lose if such an 
agreement did not come to term than any difficulties 
they may face during a transition period. 
 
7.  Los Rios Prefect Jorge Marun (PRE) was away in 
Quito, joining other provincial leaders in a meeting 
with President Gutierrez.  The purpose of the meeting 
was to secure project funds and transfer payments the 
central government had promised the province more than a 
year ago, and according to newspaper reports the prefect 
prevailed.  A member of the PRE party, Marun began his 
second term as prefect in January 2005.  He enjoys 
tremendous support from the provincial council, whose 
members credited him with triple the number of paved 
roads in the area and for obtaining greater recognition 
for Los Rios from Quito, among other things.  Several 
even expressed their desire to see him become Ecuadors 
next president. 
 
8.  Babahoyo mayor Jonny Teran of the PSC (Social 
Christian Party), also discussed his efforts at 
improving the image of Los Rios through a variety of 
public works projects in its provincial capital.  Teran 
said he had participated in an international visitor 
program and was visiting Washington, D.C. on September 
11, 2001.  Though not a proponent of the autonomy 
movement, Teran did say that he was a friend of 
Guayaquil mayor and fellow PSC party member Jaime Nebot, 
and that Nebot had collaborated with him on a number of 
projects. 
 
9.  Re-elected with 56% of the vote in the 2004 
sectional elections, Teran is interested in projects to 
help clean up the city (ranging from recycling and 
landfills to converting brothels and casinos into low- 
income housing), as well as improving education through 
tutoring programs and increased access to computers. 
Like his colleagues in the provincial council and 
governors office, he boasted of the numerous, yet 
undeveloped, tourism opportunities in the region 
primarily related to their almost 300 rivers. 
 
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Comment 
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10.  Los Rios province is faced with challenges and 
opportunities.  Its heavy concentration in agriculture 
has left many of its inhabitants in poverty, while at 
the same time eclipsing alternative development options. 
As a result, its leaders view improvements in the 
education system as the key to their breaking the cycle 
of poverty.  As one councilman put it, how can a child 
schooled in a rural area with few resources hope to 
compete with an urban child who has access to trained 
teachers and superior materials.  At the same time, they 
are hopeful that a free trade agreement with the U.S. 
would help to diversify their market base. 
 
11.  As is often the case on visits to less-prominent 
areas, the CGs trip was widely covered by local press, 
both print and television media.  Questions by these 
reporters, as well as during a radio interview with the 
provinces largest station, focused on what the U.S. 
could do for Los Rios than any protests against U.S. 
policies.  There were no negative comments or questions. 
 
 
HERBERT 
 
 
 
 
 
 
 
UNCLASSIFIED4 
 
SIPDIS 
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