US embassy cable - 05QUITO871

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 000871 
 
SIPDIS 
 
E.O. 12958: DECL: 04/19/2015 
TAGS: PGOV, PREL, ASEC, EC 
SUBJECT: ECUADOR: POLITICAL SITUATION UPDATE AS OF 2:45 
P.M. ON 4/20/05 
 
REF: A. QUITO 867 
     B. QUITO 868 
 
Classified By: Ambassador Kristie A. Kenney for Reasons 1.4 (b) and (d) 
 
1.  (C) Summary:  At 1:15 p.m., Congress voted to replace 
President Gutierrez with Vice President Alfredo Palacio.  The 
military has announced the withdrawal of its support for 
President Gutierrez.  Protests, which formerly met with 
police resistance, turned celebratory with news of 
Gutierrez's downfall.  However, there were two deaths 
reported.  Minister of Government Ayerve publicly called for 
calm, announced ex-president Abdala Bucaram's imminent 
departure from Ecuador, and offered dialogue with the 
opposition as the Ambassador had recommended earlier to 
President Gutierrez.  This signal of conciliation appears to 
have come too late.  No incidents of violence have been 
reported by AmCits.  As of 3 p.m., the President told the 
Ambassador he had left the palace and was on his way to an 
unnamed city in Ecuador.  He seems to have accepted that his 
term is over.  End Summary. 
 
Security 
-------- 
 
2.  (C) As outlined in Ref A and previous reporting, the RSO 
initiated proactive security measures to protect USG 
personnel and property.  These security initiatives were 
successful as even in the face of violent protests, there 
were no reported incidents against USG personnel or property. 
 
Embassy Actions 
--------------- 
 
3.  (C) The Ambassador got through to Joint Chief VADM Rosero 
at noon to urge restraint.  Rosero said the military had 
withdrawn support to Gutierrez. The Ambassador told Rosero he 
must try again to convince Gutierrez to appeal to the people. 
 Rosero said the situation was beyond that point and the 
military was considering creating a "civic junta" to replace 
the president temporarily.  The Ambassador said that should 
the President resign any replacement must conform with the 
Constitution.  Rosero said the military had no intention of 
taking political control itself. 
 
4.  (C) At 1:45 p.m., the Ambassador spoke with President 
Gutierrez who said he intended to appeal to the nation for 
support and calm.  The Ambassador told him that if the 
military withdraws their support, Gutierrez would have to go. 
 The President thanked the Ambassador for all her support. 
 
5.  (C) At 2:45 p.m., Gutierrez called the Ambassador again 
from the palace and still reluctant to resign.  The 
Ambassador told him that she didn't see any other way out. 
He confirmed at 3 p.m. that he was leaving the palace, 
possibly to his hometown of Tena or Guayaquil.  He did not 
request asylum and made no mention of leaving the country. 
 
Government Response 
------------------- 
 
5.  (U) At approximately 1 p.m., Government Minister Oscar 
Ayerve publicly called for calm, said ex-president Bucaram 
would shortly depart the country, and called on all political 
factions to engage in dialogue. 
 
6.  (U) Press reported at 2:20 p.m. that President Gutierrez 
was seeking asylum in Panama.   Other report indicate he may 
travel to Chile or Canada. 
 
Congress 
-------- 
 
7.  (U) A rebel Congress, consisting of 62 opposition 
deputies, voted to replace Omar Quintana as President of 
Congress with Cynthia Viteri (PSC).  They then voted to 
relieve President Gutierrez of his responsibilities and at 
2:15 p.m. swore in Vice President Alfredo Palacio as the new 
President. 
 
Military and Police 
------------------- 
 
8.  (U)  General Marco Cuvero has replaced Jorge Poveda as 
national police chief. 
Economic Implications 
--------------------- 
 
9.  (U) Dollarization continues to insulate the Ecuadorian 
economy from political stability.  Citibank and other 
contacts tell us that no run on the banks has occurred and 
that very little capital flight is underway.  Citibank said 
only three of its clients have moved funds out of Ecuador so 
far.  A very few were moving funds from local banks into Citi. 
 
Next Steps 
---------- 
 
-- PD:  We are refraining from public comment about the 
evolving situation. 
 
-- RSO: There will continue to be a curfew for Embassy 
employees and dependents in Quito this evening.  Post 
continues to have additional ENP assets protecting the 
Embassy's perimeter.  There have been no reported threats 
against AmCits and/or property at this time.  The rest of the 
country is calm. 
 
KENNEY