US embassy cable - 05QUITO1274

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 001274 
 
SIPDIS 
 
E.O. 12958: DECL: 06/03/2015 
TAGS: PGOV, PREL, EC 
SUBJECT: VP READY TO DIALOGUE 
 
 
Classified By: Ambassador Kristie A. Kenney for reasons 1.4 (b & d) 
 
1.  (C) Summary:  Vice President Alejandro Serrano Aguilar 
discussed his role as coordinator of national dialogue with 
the Ambassador, including plans for the upcoming public 
dialogue process and referendum that the GOE is planning to 
hold by December 11.  Serrano also discussed his past 
experience as Mayor of Cuenca, and the growth and progress 
occurring now in many of Ecuador's major cities.  Overall we 
were impressed with the courtly but accessible Serrano.  As 
the dialogue process moves toward formulation of referendum 
questions, we hope Serrano will be a force for moderation. 
End Summary. 
 
2.  (SBU) On June 3, Serrano met with the Ambassador and 
PolChief alone in his office at our request.  At the end of 
the meeting, he introduced his wife and daughter for 
photographs with the Ambassador.  He has a son living in 
Boston. 
 
Process Leading to Referendum Still Vague 
----------------------------------------- 
 
3.  (C) At President Palacio's request, Vice President 
Serrano will lead the dialogue process in preparation for the 
referendum that the GOE plans to hold in December.  The first 
phase will consist of a nation-wide dialogue in which the 
government will listen to citizen concerns and suggestions 
for political reform.  Serrano admitted the GOE had not yet 
settled on a specific strategy for this, but said the GOE 
would be flexible when considering format.  "Nothing has been 
ruled out," he emphasized when discussing formats for citizen 
input.  The issues raised during the dialogue process would 
later be synthesized into four or five questions to be 
addressed in a referendum on December 11. 
 
4.  (C) Asked why December 11, Serrano explained that it was 
a carefully considered date.  First, the referendum should 
occur before the holiday season begins in late December, and 
before the upcoming electoral year begins in January.  The 
idea is to keep the referendum separate from the electoral 
issues and campaigning that will draw public attention 
beginning in January of 2006.  December 11 also immediately 
follows the Quito festivities, reducing political fervor in 
the contentious capital.  The greatest political tension in 
the country is in Quito, he said, but since the majority of 
the population does not reside in the capital, the GOE must 
carefully balance the interests of the Quito electorate with 
those of the rest of the nation. 
 
5.  (C) The Ambassador warned Serrano that the dialogue 
process would raise public expectations for real change. 
Because the Vice President is neither seeking re-election nor 
affiliated with any particular party, he is in a unique 
position to consider political reform to serve national 
interest.  Dialogue is clearly needed and a referendum could 
help focus reform debate--but the GOE must carefully consider 
which issues are put to the people.  Serrano agreed, saying 
any referendum must be limited to four to five key questions. 
 
 
VP Upbeat on Economy, Youth 
--------------------------- 
 
6.  (C) To signal USG economic concerns, the Ambassador 
mentioned her experience with hyper-inflation in Argentina in 
the 1980s.  Serrano talked about his experience with the 
difficulties of living with high inflation, and said that the 
younger generation is very lucky to not have that problem 
now.  The Ambassador commented that based on a recent meeting 
with a group of Ecuadorian students, she found this younger 
generation to be very optimistic about Ecuador's future.  The 
conversation then turned to the generation gap in Ecuador 
right now, and Serrano noted that a whole generation aged 
25-40 seem to have opted out of politics. 
 
7.  (SBU) The Ambassador complimented the growth and progress 
occurring in Ecuador's cities.  Serrano said he was a 
committed "municipalista," citing his experiences as Mayor of 
Cuenca in the 1970's, a city the Ambassador praised for its 
work ethic and governance.  Serrano is well-known for 
building the main soccer stadium in Cuenca, which is named 
for him.  He said he would need to build on that reputation 
to increase his effectiveness as Vice President.  Serrano 
said that a highlight of his mayorship had been an 
Embassy-sponsored tour of several US cities.  He also proudly 
mentioned a bicentennial medal he received from the Embassy 
as mayor. 
 
Comment 
------- 
 
8.  (C) We left hopeful that the Vice President will be a 
moderating force in the Cabinet.  We will maintain close 
contact with the VP and his staff to monitor the dialogue 
process, which will likely involve US interests. 
Kenney