US embassy cable - 05QUITO2191

UNCLAS SECTION 01 OF 02 QUITO 002191 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV, PINR, PREL, EC 
SUBJECT: ID LEADERS SUPPORT PALACIO'S REFORM EFFORTS 
 
 
1.  (SBU)  Summary:  In initial office calls on President of 
Congress Wilfredo Lucero and Quito Mayor Paco Moncayo, the 
Ambassador discussed prospects for political reform.  Both 
Moncayo and Lucero were emphatic that Palacio needed support 
for his reform agenda, echoing the sentiments of other 
leaders of the Democratic Left ("Izquierda Democratica - ID) 
party, which is now openly supporting Palacio's reform 
efforts.  Lucero said Palacio's recent change of Minister of 
Government (with ID member Oswaldo Molestina replacing former 
minister Mauricio Gandara) signaled flexibility and 
willingness to dialogue on the part of the Palacio 
government.  References to patriotic duty in a time of 
national need belied the fact that party interests are being 
served.  End Summary. 
 
Supporting Palacio's Reforms 
---------------------------- 
 
2.  (SBU) On September 20, Lucero told the Ambassador that 
Molestina's appointment had greatly increased the chances for 
congressional approval of proposed political reforms.  Lucero 
said Molestina, a former ID member of Congress and president 
of the international affairs committee (1998-2003), is widely 
respected in Congress and had sent a positive signal by 
requesting an early meeting with him.  Molestina's new 
position could also help prospects for congressional 
consideration of an FTA.  Lucero said that in addition to 
sending a congressional delegation to the Cartagena round, he 
was organizing a congressional retreat October 4-6 to analyze 
the status of FTA negotiations in depth. 
 
3.  (SBU) Asked by the Ambassador what reforms are likely to 
be included in November/December referendum, Lucero said the 
size of Congress might be reduced, as well as the length of 
its sessions.  More important than the quantity of 
legislators was their quality, which had declined over the 
years, according to Lucero, who was first elected to Congress 
in 1977.  He warned that the government must be cautious lest 
a referendum on reforms be converted into a plebiscite on the 
Palacio government's popular support. 
 
4.  (SBU) President Palacio deserved support, Lucero said, 
during a time of democratic recovery from the effects of the 
Gutierrez "dictatorship."  The interest in doing so is not 
partisan but national.  Beyond reforms, it was urgent to 
change the "culture of confrontation."  The media was also at 
fault, not playing a responsible role.  He cited as an 
example the media flap over his recent change of hair color. 
The change was provoked by his chemotherapy treatments, which 
he preferred to keep private.  Media had shamelessly alleged 
he had used public funds to re-style his "look," forcing him 
to sue for slander. 
 
Mayor Promotes Patriotic Duty 
----------------------------- 
 
5.  (SBU) Mayor Moncayo was equally emphatic that the Palacio 
government deserved support for its reform agenda.  Without 
specifying any particular reform (possible reforms are under 
negotiation between the executive and Congress), Moncayo 
implied that the ID was performing a patriotic duty by 
increasing political stability.  Moncayo, a popular 
second-term mayor with presidential prospects, was at the 
forefront of efforts to oust former president Gutierrez (and 
presidents Mahuad and Bucaram before him). 
 
6.  (SBU) Moncayo was eager to share his vision of 
municipal-level accomplishment with the Ambassador, 
discussing USG-supported plans for a new Quito airport and 
highlighting plans for other transit system improvements 
(light rail, and a possible monorail project for the new 
airport.  He promised continued cooperation with our plans to 
construct a new Embassy in a more secure location of the 
city. 
 
Comment 
------- 
 
7.  (SBU) The accolades from these two prominent ID leaders 
for fellow party member Molestina are not surprising, but 
their exhortations of "patriotic duty" to support reform ring 
a bit hollow.  ID public relations "spin" trumpets the 
"unprecedented political maturity" of the move.  PSC leaders, 
in contrast, were quick to distinguish themselves by stating 
plainly they have made no such pro-government arrangement. 
 
8.  (SBU) What is becoming ever more clear is that ID support 
for the Palacio government is apparently not linked to any 
particular reform.  That raises the question of what else the 
ID might be expecting for its support.  Upon shifting cabinet 
seats, Molestina immediate demanded the resignation of all 
sitting governors (appointed by the president here, not 
elected), raising the possibilities of patronage.  Others 
speculate that it involves control of government positions 
for electoral advantage.  The PSC, which tacitly supports the 
Palacio government's stability (SepTel), has shied away from 
tying its own public support to a sitting government. 
JEWELL