US embassy cable - 05QUITO932

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 000932 
 
SIPDIS 
 
E.O. 12958: DECL: 04/22/2015 
TAGS: PGOV, PREL, SNAR, PINR, EC 
SUBJECT: ECUADOR: FM PARRA OPENS BILATERAL DIALOGUE 
 
 
Classified By: Amb. Kristie A. Kenney for reasons 1.4 (b) and (d) 
 
1.  (C) Summary:  In a cordial one-on-one encounter on April 
26, FM Antonio Parra Gil told the Ambassador that, by natural 
inclination and necessity, Ecuador seeks good relations with 
the United States.  He offered open and honest dialogue with 
the USG, and pledged to address specific issues in subsequent 
meetings.  He expressed special interest in counter-narcotics 
cooperation and concern about money-laundering in Ecuador.  A 
mature and moderate interlocutor, Parra will travel to 
Santiago for the Community of Democracies meeting; we 
recommend a meeting on the margins with A/S Noreiga.  He is 
reviewing all MFA political appointments and carefully 
considering who to send as Ambassador to the U.S.  End 
Summary. 
 
Affinity for U.S.; Recognition 
------------------------------ 
 
2.  (C) Like his boss, Parra emphasized his personal affinity 
for the U.S. and recognized the importance of the U.S. to 
Ecuador in terms of its geo-political influence, and status 
as Ecuador's main market and foreign assistance donor.  He 
said he valued the Ambassador's frankness and invited her to 
join in an open and honest private dialogue. 
 
3.  (C) As a practicing lawyer, Parra ran through the 
arguments in favor of the legitimacy and constitutionality of 
the new government.  The Ambassador told Parra that the USG 
is now focused on helping Ecuador move forward rather than 
look backward.  The OAS mission is coming to Ecuador in that 
spirit, and offers the GOE an opportunity to receive the 
support of its hemispheric friends.  Parra agreed, saying the 
GOE welcomed the visit. 
 
Immediate Plans: Travel, Appointments, Calls, Dialogue 
--------------------------------------------- --------- 
 
4.  (C) Parra said he intended to attend the Community of 
Democracies meeting in Santiago, which offered a great 
opportunity to meet counterparts and make Ecuador's case.  He 
was considering whether to recommend that President Palacio 
attend an upcoming Latin America-Arab summit.  Traveling now 
is particularly difficult, when so many personnel 
appointments need to made.  The Ambassador asked that Parra 
give special attention to the appointment of an Ambassador to 
the United States.  Parra said he would do so, but did not 
mention any possible candidates. 
 
5.  (C) Parra said he had asked his staff to prepare a list 
of bilateral issues with the U.S., which he would like to 
discuss with the Ambassador at a later date.  The Ambassador 
welcomed the opportunity to convert problem issues into 
opportunities. 
 
Interest in Counter-Narcotics Issues 
------------------------------------ 
 
6.  (C) The Ambassador told Parra she had suggested President 
Palacio call his counterparts in Colombia and Peru sooner 
rather than later.  Parra said he had recommended the same 
thing, and expected Palacio to do so soon.  He expressed 
concern about the "contagion effect" of the Colombian 
conflict, and wondered if subsidies for alternate crops would 
help wean the border region away from coca growing.  The 
Ambassador cited USG-supported efforts to promote cacao as an 
alternative.  Parra also expressed concern about 
money-laundering in Ecuador.  The Ambassador agreed, 
regretting the lack of an effective legal regime to combat 
this crime, and commending legislation pending in Congress. 
Parra said he wanted to make the issue an early priority. 
 
FTA: "No Choice" 
--------------- 
 
7.  (C) Turning to trade, Parra said Ecuador simply had no 
choice but to negotiate an FTA with the U.S., with ATPDEA 
expiring in 2006.  People worry about being flooded by U.S. 
products, but in an increasingly globalized world, no country 
can afford to sit on the fence.  Given Ecuador's dependence 
on the U.S. market, there were few practical alternatives. 
Expanding trade with Europe was not a viable option. 
 
Bucaram Effect 
-------------- 
 
8.  (C) The Ambassador said it was unfortunate that Ecuador 
had fallen into a recurrent cycle of interrupted 
presidencies.  Parra blamed "El Loco" ex-president Abdala 
Bucaram, who initiated the cycle in 1997.  Bucaram was a 
difficult case for the current government as well, which was 
in discussion with the Panamanian government over the terms 
of his asylum there.  In his previous exile in Panama he had 
flagrantly violated the terms of his refuge by continuing to 
run his political party from abroad.  It was in Ecuador's 
interest for these divisive leaders to live abroad, he said. 
Parra fully expected ex-president Gutierrez to respect the 
terms of his asylum in Brazil; Bucaram in Panama would be 
another story. 
 
Comment 
------- 
 
9.  (C) This charm offensive came naturally to Parra, an 
engaging interlocutor who inspires confidence.  He is 
certainly a welcome replacement for his insubstantial 
predecessor.  We have heard similar praise from the 
Brazilians, who worked with Parra on safe passage for 
ex-president Gutierrez.  Though not yet prepared to address 
the full range of bilateral issues, Parra clearly signaled a 
more open and pragmatic approach which could help moderate 
more extreme cabinet views.  President Palacio stuck a 
similar tone in an April 24 press conference, when he again 
expressed firm commitment to respect exiting international 
agreements and defended the agreement on the Manta 
cooperative security location as worthy for its contribution 
to the eradication of drugs (SepTel).  We should take 
advantage of the GOE's acute interest in dialogue to promote 
USG interests. 
 
Biographic Notes 
---------------- 
 
10.  (SBU) Parra is 68, overweight (he joked about the 
dietary restrictions his wife has recently enforced), suffers 
from poor hearing (and wears a hearing aid), and said he was 
having difficulty adjusting to Quito's high altitude.  He is 
also jovial, frank and delightfully gregarious, in the manner 
of many Guayaquilenos.  Parra urged the Ambassador to address 
him by his nickname, "Japo," which he acquired as a child for 
his oriental appearance (which has faded away with age).  He 
admitted to poor English language ability, but seemed proud 
of his international and legal training and experience.  One 
daughter lives in Chicago, a city he loves to visit.  Another 
daughter lives in Guayaquil with his four grandchildren. 
 
KENNEY