US embassy cable - 05QUITO947

C O N F I D E N T I A L SECTION 01 OF 03 QUITO 000947 
 
SIPDIS 
 
E.O. 12958: DECL: 04/26/2015 
TAGS: PGOV, PREL, PINR, ASEC, EC 
SUBJECT: ECUADOR: OAS ON THE GROUND, QUITO CALM 
 
REF: QUITO 945 
 
Classified By: Ambassador Kristie A. Kenney, Reason 1.4 (b&d) 
 
1.  (SBU) Summary:  Quito is relatively calm, with a very 
small protest reported on April 27.  The OAS mission arrived 
late on April 26 and began meetings with the government and 
others the following day.  The Ambassador met with the new 
Defense Minister on April 27.  For the first time in recent 
memory, Congress moved decisively on April 26 to replace its 
leadership, purge its ranks, terminate the constitutional and 
electoral tribunals, and approve a method to select a new 
Supreme Court.  They will meet again on April 27 to debate 
how to replace the constitutional and electoral tribunals. 
The Ambassador met with international financial institutions 
representatives and the American business community; they are 
nervous but already engaging with the new government.  We 
continue to do the same, hoping to help prevent any 
unfortunate decisions. 
 
OAS On the Ground 
----------------- 
 
2.  (C) The OAS delegation headed by Acting SecGen Einaudi 
arrived late on April 26, and met shortly thereafter with OAS 
Ambassadors, including Ambassador Kenney.  The group was 
joined by the Peruvian VFM, in town for the South American 
Community troika mission.  On April 27, the group met with 
President Palacio, Government Minister Gandara, and Foreign 
Minister Parra at the national palace.  Palacio argued that 
his government had not broken Ecuador's democracy, which he 
inherited broken from his predecessor.  Ecuador welcomed and 
requested OAS support to help rebuild its institutions.  He 
denied plotting to overthrow the Gutierrez government, saying 
the people had spontaneously decided his predecessor's fate. 
He described his government's efforts to promote 
participative democracy in the Jeffersonian model, including 
recently-announced national dialogue roundtables to discuss 
needed structural reforms, including electoral reform.  This 
dialogue process might be followed by a referendum proposal 
in the next 3-6 months. 
 
3.  (C) The delegation then met with church representatives, 
including Quito Archbishop Chiriboga, Mons. Jaime Bravo 
Cisneros, Secretary-General of the Ecuadorian Episcopal 
Conference, and (separately with Lutheran and evangelical 
representatives).  Religious leaders also asked the OAS to 
help Ecuador rebuild its democratic institutions.  The 
delegation then met with Quito mayor Paco Moncayo and 
Pichincha Prefect Ramiro Gonzalez, who also requested OAS 
assistance to rebuild democracy by supporting an independent 
judiciary.  Moncayo argued for increased decentralization of 
government services. 
 
4.  (C) Later on April 27, the delegation will meet with 
indigenous and civil society groups, and congressional party 
leaders.  On April 28, they will meet with jurists, the 
business community, PRE and PSP congress deputies, human 
rights groups and ex-presidents and ex-vice presidents.  The 
group is not currently scheduled to visit Guayaquil, although 
President Palacio suggested they do so. 
 
Ambassadorial Outreach 
---------------------- 
 
5.  (C) The Ambassador met with Defense Minister Gen. (ret.) 
Anibal Solon Espinoza on April 27 (SepTel).  She emphasized 
USG support and appreciation for GOE efforts to secure its 
northern border from harmful spill-over effects of the 
Colombian conflict, including narco-trafficking. 
 
6.  (C) The Ambassador also met with local representatives of 
the World Bank, IMF, IADB, and private sector representatives 
on April 26, and met with the steering committee of the 
Ecuador-American Chamber of Commerce on April 27.  All were 
already engaging with the new government to present their 
views.  There were no signs of a run on financial 
institutions (see RefTel for more details). 
 
Congress Gets Results, Finally 
------------------------------ 
 
7.  (U) In a 12-hour, uninterrupted session on April 26 with 
83 members present, Congress voted to: 
 
-- approve Wilfredo Lucero (ID) as its new president (with 65 
votes in favor); 
 
-- purge its ranks of 11 members (72 votes in favor); 
 
-- approve a method to select a new Supreme Court (69 votes 
in favor); 
-- dismiss the constitutional court installed in November 
2004 (59 votes in favor); and 
 
-- replace the membership of the Supreme Electoral Tribunal 
(TSE), (58 votes in favor). 
 
Congress will meet again on April 27 to debate a method to 
select new members of the Constitutional court. 
 
8.  (U) The actions of the new majority, comprised of the 
PSC, ID, Pachakutik, the DP, and several independents, 
consolidated its control of congress.  This majority then 
selectively purged the Congress of 9 members and two 
alternates.  The nine had left the PSC, ID or Pachakutik, and 
will be replaced by alternates loyal to their parties.  The 
two alternates (one from PSC and other ID) will presumably be 
replaced by party loyalists.  Opponents quibbled with the 
method used to make these changes, objecting that ethics 
committee (controlled by opponents of the new majority) had 
not issued a required report to the plenary.  Undeterred by 
procedural etiquette, the majority rolled on, pledging to 
change the composition of the ethics committee and pursue 
another purge of seven independent deputies who had allied 
themselves with ex-president Gutierrez. 
 
9.  (U) The current makeup of the majority in Congress is as 
follows: 
 
PSC - 24  (from 22) 
 
ID - 15 (from 14) 
 
PRE - 13 (from 15) 
 
Pachakutik - 10 (from 6) 
 
PRIAN - 9 
 
PSP - 5 
 
DP - 4 
 
PSE (Socialists) - 4 
 
MPD - 3 
 
CFP - 1 
 
Independents - 12 (from 21) 
 
Total:  100 
 
Notes:  The PRE bench shrank from 15 to 13 members, due to 
the disaffiliation by Marco Proano Maya and Freddy Cruz. 
Congress took no measures to sanction these members for 
abandoning their party.  PRIAN congress member Carlos Vallejo 
resigned but was replaced by his alternate.  PSP congress 
member Ximena Bohorquez, wife of ex-president Gutierrez, also 
resigned and was replaced by former Gutierrez secretary and 
social welfare minister, Patricio Acosta. 
 
10.  (U) The current makeup of the TSE includes 
representatives of the PRIAN (president), MPD (vice 
presidency), PSC, ID, PRE, PSP and DP.  PSC sources predicted 
that Pachakutik would replace the PSP in the new TSE. 
 
Security Situation Calm 
----------------------- 
 
11.  (U) A small, non-violent, anti-government protest 
involving approximately 100 took place outside the national 
palace on April 27, while the OAS mission was meeting with 
the President.  While the OAS delegation members were 
departing the palace, demonstrators chanted anti-OAS slogans, 
but did not threaten the group in any way.  Another small 
group (less than 50) gathered outside Congress in 
anticipation of the afternoon session. 
 
Next Steps 
---------- 
 
12.  (SBU) The Ambassador will meet with Minister of 
Government Mauricio Gandara on April 28 to initiate dialogue 
on security and political issues.  On the same day she will 
also meet with the First Lady, Maria Beatriz Paret de 
Palacio, who has assumed leadership of the national 
children's organization (INNFA), to discuss TIP and child 
labor issues. 
KENNEY