US embassy cable - 05QUITO1256

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 001256 
 
SIPDIS 
 
E.O. 12958: DECL: 06/01/2015 
TAGS: PGOV, PREL, PINR, MOPS, KCRM, EC 
SUBJECT: PRESIDENT PALACIO SENDING MIXED SIGNALS 
 
 
Classified By: Ambassador Kristie A. Kenney for reasons 1.4 (b&d). 
 
1. (C) Summary:  In a meeting which failed to inspire great 
confidence in his leadership ability or vision, President 
Palacio told the Ambassador on May 31 that his government is 
focused on achieving durable political reforms.  Palacio 
expressed continued concern about disloyalty in the police 
and military, and distanced himself somewhat from 
controversial security advisors.  At the Ambassador's 
suggestion, Palacio committed his government to convert an 
unfavorable upcoming USG report on efforts to combat 
trafficking in persons into an opportunity to move forward. 
He requested USG support help keep the GOE "on the right 
path," and expressed interest in meeting with President Bush 
to discuss his agenda.  Unless the new GOE starts producing 
better results, we would not support such a this request. 
End Summary. 
 
2.  (SBU) Palacio met with the Ambassador and DCM alone, at 
our request.  He opened by thanking the Ambassador for 
facilitating his recent emergency visit to Florida to attend 
the operation of his US-resident daughter Llinka, who was 
recovering nicely after unspecified surgery. 
 
Reform Agenda Underway 
---------------------- 
 
3.  (C) After commenting on economic issues (SepTel) Palacio 
turned to his political agenda.  Vice President Serrano would 
lead the GOE effort to consult with citizens through dialogue 
roundtables, he said.  The goal was to put a referendum of 
4-5 questions to the people by December 11.  Palacio did not 
specify what reforms he hoped to achieve, saying that would 
require citizen input to decide.  Government spokespersons 
later made the new timeline public, saying public comment 
would be welcome through July 15, and a proposed referendum 
would be submitted to Congress by September 15.  The dialogue 
process would be led by the Vice President, implemented by 
CONAM, the government modernization secretariat, and advised 
by the UN.  The December 11 deadline for a possible 
referendum was reportedly chosen to pre-date the holiday 
season. 
 
TIP:  Making the Most of the Report 
----------------------------------- 
 
4.  (C) The Ambassador warned Palacio that trafficking in 
persons (TIP) is a serious problem that remains to be 
addressed seriously in Ecuador.  A report to be issued 
shortly by the Department would publicize the GOE's lack of 
progress on this issue over the past year.  Palacio responded 
that the GOE "has to face the hard truth," and would seek 
opportunities to move forward on this important issue.  He 
noted that the first lady was also committed to address this 
issue, and had appreciated the Ambassador's briefing on the 
subject.  The Ambassador offered USG collaboration and 
support to help the GOE address the issue. 
 
Concern about Security Team 
--------------------------- 
 
5.  (C) Palacio commented that he still lacked full 
confidence in some elements of the police and military 
security apparatus, hinting that purges of some units were 
impending.  Asked for her views on the chief of national 
police, Gen. Jose Vinueza, the Ambassador responded that the 
Embassy was impressed by his leadership of the 
counter-narcotics unit before assuming his current position. 
Palacio said he shared the Ambassador's positive opinion, but 
added that controversial presidential security advisor Jorge 
Brito had impugned Vinueza's loyalty.  Brito was no longer a 
presidential advisor, Palacio hastened to add.  Palacio 
claimed he had barred Brito from re-entering the national 
palace since Brito had commandeered a vacant office and 
assumed powers beyond his initial mandate. 
 
6.  (C) Asked for USG views on Brito and another 
controversial security advisor, discredited Social Welfare 
Minister Patricio Acosta, the Ambassador responded that we 
are concerned by the Bolivarian circles both men are known to 
associate with.  Palacio said he did not know what to do with 
these allies, who had served him well before he became 
president.  (He denied they were "plotting" to usurp 
ex-president Gutierrez.)  He had refused Acosta a position as 
head of UDENOR, the northern border security and development 
agency, and as head of CONAM.  Instead, he was considering 
appointing Acosta to head the customs office in the booming 
port of Manta.  The Ambassador warned that Acosta has the 
added distinction of being the only Ecuadorian ever denied a 
visa based on grounds of corruption affecting USG interests. 
 
Pitch for White House Photo Op 
------------------------------ 
 
7.  (C) Palacio requested a meeting with President Bush, 
preferably before the UNGA in September, to discuss his 
government's reform and security agenda.  In requesting a 
personal meeting, he hinted that it would be important to 
help "keep the GOE on the right path." 
 
Comment 
------- 
 
8.  (C) With both sides continuing to tread lightly, we find 
the president somewhat difficult to read.  Palacio never 
fails to privately claim to seek good bilateral relations 
with us, and seeks to portray his government as committed to 
shared interests.  Nevertheless, his suggestion that without 
proper attention from the USG, the GOE could veer dangerously 
"off the tracks," smacks of a veiled threat.  In the near 
term, we will test GOE commitment on TIP and maritime 
cooperation.  But until Palacio shows greater vision and 
takes steps to address important USG interests, we would not 
recommend a White House meeting or other special treatment 
for this government. 
 
9.  (C) This meeting was also notable for what was left 
unsaid.  Despite making public comments questioning USG 
treatment of a boarded Ecuadorian fishing vessel, Palacio 
chose not to raise the issue with the Ambassador.  (We have 
since received a diplomatic note requesting a USG 
investigation into allegations of ill-treatment and damages 
by the crew of the Ecuadorian-flagged "Ochossis.") 
 
Kenney