US embassy cable - 05QUITO894

C O N F I D E N T I A L SECTION 01 OF 03 QUITO 000894 
 
SIPDIS 
 
E.O. 12958: DECL: 04/22/2015 
TAGS: PGOV, PREL, ASEC, EC 
SUBJECT: ECUADOR: INITIAL CONTACTS WITH NEW GOVERNMENT 
 
Classified By: Amb. Kristie A. Kenney for reasons 1.4 (b) and (d) 
 
1.  (C) Summary:  Initial contacts indicate that the Palacio 
government is greatly concerned about possible OAS actions 
and seeks USG recognition, and would welcome a visit by an 
OAS delegation.  They are also intimidated by the very forces 
of popular discontent that brought them into office, and 
therefore leery of granting safe passage for former president 
Gutierrez to depart the country.  DCM attended the FM Parra's 
briefing of diplomats from OAS nations on April 21.  PolChief 
met separately with Minister of Government Gandara and 
Presidential Secretary for Administration Herreria on April 
21.  End Summary. 
 
Foreign Minister Defends Legitimacy 
----------------------------------- 
 
2.  (C) The MFA convoked OAS-member state representatives to 
an April 21 briefing with Palacio's Foreign Minister, Antonio 
Parra.  OAS member states in attendance included Canada, 
Venezuela, Mexico, Costa Rica, El Salvador, Guatemala, Peru, 
Chile, Argentina, Colombia, Honduras, DR, Panama and the US. 
The OAS rep in Quito, former Paraguayan Senator Carlos Maria 
Ocampo, also attended.  Notably absent from the gathering was 
the Brazilian Ambassador (who has ex-President Gutierrez 
staying at his residence).  Parra greeted everyone warmly, 
especially the Venezuelan whom he regaled with stories about 
his father's and his tours as Ambassadors in Caracas years 
ago. 
 
3.  (C) Parra explained his purpose was to offer the official 
GOE explanation of the confused political situation.  He 
claimed Gutierrez set destabilizing events in motion on 
December 8, 2004, when he blatantly violated the constitution 
by firing the Supreme Court.  He alleged that Gutierrez 
continued to violate the Constitution with other unspecified 
acts, culminating in his lawful removal from office after a 
justified popular uprising.  He offered that several 
countries appeared confused by the Ecuadorian congressional 
ruling that Gutierrez had "abandoned" his office, and 
expressed frustration that some countries were concerned 
about the constitutionality of succession mechanism.  Parra 
said he was concerned that friendly nations of the hemisphere 
had not expressed support for Ecuador, which wanted friendly, 
productive relations.  He said he had spoken with several 
Foreign Ministers, singling out the Peruvian FM, to clarify 
the facts. 
 
4.  (C) Parra made repeated references to Bolivia in 
defending GOE actions, implying that Bolivia was the 
precedent for recent action in Ecuador. He rhetorically asked 
how friendly countries could doubt Ecuador's commitment to 
democracy; surely it was all a misunderstanding.  Gutierrez's 
"abandonment" of office need not be literal (physically still 
in office when Congress voted him out).  Gutierrez had most 
certainly abandoned democracy, the constitution and his 
responsibility to uphold law and order.  Ecuadorian 
authorities could not let the capital city explode while 
standing by doing nothing. 
 
5.  (C) Parra said that a distinguished group of jurists from 
Ecuador would make Ecuador's case on April 22 before the OAS 
Permanent Council.  They are:  constitutional expert Gil 
Barragan Romero; former FMs Edgar Teran and Mario Aleman; and 
former Vice President Blasco Penaherrera.  (Comment:  The 
latter three are well known lawyers who are very slick and 
talk a pro-American game.  However, their actions are often 
at odds with their professed American sympathies.  They come 
from the established political classes, viewed Gutierrez as 
an upstart, and refused even to talk to him from the outset 
of his mandate.) 
 
6.  (C) OAS Rep. Ocampo was the only member of the invited 
group to offer his views.  He requested of Parra an official 
written communique clarifying with "precision" Ecuador's 
actions for tomorrow's OAS meeting.  He noted there were many 
questions remaining about constitutionality of congressional 
action to unseat Gutierrez.  Parra said the press had 
misrepresented the facts, confusing everyone, and undertook 
to get Ocampo an official position paper tomorrow.  The 
meeting adjourned after 30 minutes. 
 
Minister of Government Concerned about Stability 
--------------------------------------------- --- 
 
7.  (C) PolChief met with Minister of Government Mauricio 
Gandara on April 21.  The USG has not come to a decision on 
recognition, he told Gandara, but would like to open a 
dialogue with key GOE officials.  We have enjoyed good 
cooperation with Gandara's predecessors on security issues of 
mutual interest, and would hope to engage on those issues 
once the situation stabilized. 
 
8.  (C) Gandara welcomed the contact, and expressed concern 
about Secretary Rice's reported statement encouraging early 
elections in Ecuador and possible OAS actions against 
Ecuador.  PolChief clarified that Secretary Rice did not 
directly call for early elections and encouraged Gandara to 
review the text of her comments.  The OAS is naturally 
concerned about the instability in a member country; would 
Ecuador be open to a high-level OAS visit, should it be 
offered?  Gandara replied adamantly "of course we would." 
 
9.  (C) The irregular transfer of power from President 
Gutierrez to Palacio "had its legal aspects," Gandara said, 
but the political reality facing Ecuador was that there is no 
going back to Gutierrez.  He had attended the rebel Congress 
session which swore in Palacio, and been sequestered with 
Palacio and the Congress by the enraged crowd outside. 
Formerly peaceful protests had been infiltrated by extreme 
leftist elements, he said, which physically threatened him 
and even the new president.  Should Gutierrez somehow be 
allowed to return to the political scene, these protesters 
would react violently.  For this reason, international 
recognition is essential to the legitimacy of the Palacio 
government. 
 
10.  (C) Asked about his near-term agenda, Gandara said he 
would meet with the leader of the main indigenous 
organization (CONAIE), Luis Macas, next to seek their 
support.  With the support of the congressional factions 
which dismissed Gutierrez, the government would prepare a 
bill to introduce to Congress on April 26 to name a Supreme 
Court, and overturn the illegitimate Constitutional and 
Electoral tribunals.  Gandara expressed confidence that by 
then, the uncertain situation would be substantially calmer. 
 
11.  (C) Belying his reputation as a fierce nationalist and 
critic of the U.S. on certain issues, Gandara spoke in 
general, conciliatory terms, saying "we agree with the U.S. 
on our goals, but sometimes differ on methods only."  Gandara 
went on to emphasize that he had warm feelings for the people 
of the U.S. and respect for the U.S. political system.  He 
cited as an example how impressed he was, when invited by the 
Ambassador to meet visiting U/S Bolton at her residence last 
year, that the U.S. would want to hear from its critics as 
well as its friends on divisive issues. 
 
Pres Admin Sec Cites Mutual Interests 
------------------------------------- 
 
12.  (C) On April 22, PolChief met with Administrative 
Secretary General Luis Alberto Herreria, who also made a 
 
SIPDIS 
pitch for OAS and USG recognition.  Asked whether the GOE 
would provide safe conduct for President Gutierrez, Herreria 
denounced Gutierrez' links to Venezuelan President Chavez, 
through Col. Patricio Acosta (who was fired by Gutierrez). 
The new government rejects the Chavez-Castro-Lula axis, he 
said, and would firmly oppose any further Chavez inroads in 
Ecuador.  The Brazilian offer of asylum for Gutierrez 
presented the new government with a quandry--should the 
government provide safe conduct, Herreria said with alarm, 
"they (the protesters who brought Gutierrez down) would burn 
down this national palace the same day."  To emphasize how 
reluctant the government is to confront protesters of any 
sort, Herreria credited the new government with allowing a 
protest outside the palace on April 21, even when military 
intelligence sources indicated that the small group (of 
approximately 50) had been organized by Gilmar Gutierrez, the 
brother of the former president. 
 
13.  (C) PolChief noted that safe conduct is a provision of 
international law and the GOE might consider the signals it 
was sending at this sensitive time.  Similarly, on the 
economic front, it would be wise to carefully consider the 
messages being sent to the business community.  One example 
affected a key USG interest--resolution of commercial 
disputes.  Any expropriation of U.S. firms such as 
Occidential Petroleum would seriously damage our economic 
relationship.  Herreria said he was concerned by rash public 
statements by new Finance Minister Correa and implied that he 
would raise his concerns in the Cabinet meeting scheduled the 
same day.  Herreria also mentioned his own connections to the 
U.S.--a warm relationship with a former Guayaquil CG, a 
month-long IV program visit to the U.S. in the 1980's, and 
deep respect for the U.S. political system. 
 
Comment 
------- 
 
14.  (C) Though the atmospherics of these initial contacts 
has been warm and friendly, the Palacio government is clearly 
concerned about its own survival.  The GOE intensely craves 
international community affirmation of this government's 
legitimacy, and is intimidated by the popular forces which 
brought them into office.  Gandara, a fierce nationalist 
critic of the U.S. on a host of issues (boat sinkings, the 
Manta CSL, Occidential Petroleum dispute) was at his warmest, 
citing the Ambassador's natural charm and his warm feelings 
for the U.S. at length.  Herreria emphasized his own links to 
the USA, through contact with CG Guayaquil and participation 
on a US-funded IV program in the '80s, and strenuously 
invoked the spectre of Chavez to sway us toward recognition. 
 
KENNEY