US embassy cable - 05QUITO2652

UNCLAS SECTION 01 OF 02 QUITO 002652 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV, PINR, PREL, ETRD, EC, FTA 
SUBJECT: INDIGENOUS MARCH IN QUITO AGAINST FTA 
 
1.  (U) Summary:  Approximately 1,000 indigenous from the 
provinces participated in mobilizations on November 16 and 17 
organized by indigenous organization CONAIE against the free 
trade agreement (FTA) and the US-owned Occidental petroleum 
company, and in favor of a constituent assembly.  Protest 
leaders were received by President Alfredo Palacio on the 
evening of November 17; Palacio said he would not sign an FTA 
that went against Ecuador's interests, agreed with the need 
for a popular assembly, and said he was already taking action 
against Occidental petroleum.  Indigenous leaders also 
expressed their opposition to an FTA and support for a 
popular assembly in meetings with the Ambassador.  Eduardo 
Delgado of the anti-FTA social movement "Ecuador Decides" 
told us on November 18 that his group would lead large-scale 
marches if an FTA is signed, but not put to a referendum. 
Delgado doubted any popular assembly would take place given 
the vested interests of political parties.  End Summary. 
 
Indigenous March and Meet with President 
---------------------------------------- 
 
2.  (U) Indigenous leader and vice president of ECUARUNARI 
Raul Ilaquiche told PolOff on November 18 he estimated 10,000 
indigenous from outlying provinces including Cotopaxi and 
Tunguragua had marched on November 17, however, Embassy and 
police estimates were closer to 1,000.  As of November 18, 
only 300 indigenous remained in Quito's Arbolito Park and 
were expected to march on the same day to the presidential 
palace.  Evangelical indigenous groups did not participate in 
these protests. 
 
3.  (U) President Palacio met with approximately 50 of the 
indigenous protesters in the presidential palace on the 
evening of November 17 in a meeting that lasted several 
hours.  During the meeting, CONAIE head Luis Macas asked 
Palacio to not sign the free trade agreement and asked for 
Occidental petroleum to leave the country immediately. 
Palacio told indigenous that if, for example, FTA 
negotiations on agriculture and intellectual property did not 
reach desired results, then "clearly we'd have to say, we're 
not signing."  Ilaquiche told PolOff he predicted a "social 
convulsion" if Palacio signs the FTA. 
 
4.  (U) Palacio told indigenous that he agreed with them on 
the need for a constituent assembly.  Ilaquiche said 
indigenous groups would like a constituent assembly to decide 
all foreign treaties including an FTA, and also to review 
treaties already signed in the past, including the Manta 
agreement.  On Occidental petroleum, Palacio said the company 
had been given 60 days notice to respond to alleged contract 
violations, saying that he was "complying totally with the 
interests of his country." 
 
5.  (U) Ilaquiche told PolOff that the clear message from 
Palacio was that he would not betray the interests of the 
Ecuadorian people.  However, Ilaquiche said that indigenous 
groups were not yet satisfied; while they had returned to the 
provinces, they would see what happened, and be prepared to 
protest again. 
 
Indigenous Share Concerns With Ambassador 
----------------------------------------- 
 
6.  (SBU) Indigenous leaders Gilberto Talahua and Leonidas 
Iza told the Ambassador on November 8 that they differed with 
the USG on the FTA and other issues, and supported a national 
assembly.  Indigenous leader and former FM Nina Pacari, while 
agreeing on the need for a popular assembly, told the 
Ambassador on November 15 that currently the atmosphere was 
too negative and that cool heads were not prevailing.  Pacari 
believes an assembly is needed because the current Congress 
does not act with legitimacy, in part because political party 
representatives are incapable of self-criticism. 
 
Social Groups Oppose FTA, Want Assembly 
--------------------------------------- 
 
7.  (SBU) On November 18, PolOff met with Eduardo Delgado of 
the social movement "Ecuador Decides" which claims to include 
200 social groups as members.  (Note:  This is the same group 
that said last year it would collect the signatures necessary 
to force a referendum.  That effort resoundingly failed, but 
Delgado is viewed as one of the main leaders of the 
anti-Gutierrez "forajido" movement.)  Delgado said that his 
group, formed a year ago, believes that the signing of a free 
trade agreement should be decided "democratically," by 
referendum.  He said his group had been protesting against 
the FTA daily in front of the presidential palace since 
November 14.  Delgado believes that an FTA would damage 
Ecuador in health and agriculture.  Delgado said he would 
support a "fair" US-Andean free trade agreement, with the US 
lifting agricultural subsidies and limiting pharmaceutical 
patents.  He also said the FTA should not be concluded until 
decisions on agricultural subsidies are made by the WTO at 
its upcoming meeting in Hong Kong.  Delgado said that under 
current conditions, Ecuador should not sign an FTA and the 
GOE should subsidize those industries that would lose ATPDEA 
trade benefits (e.g. duty free cut flowers, textiles, and 
pouch tuna) when they expire in December 2006. 
 
8.  (SBU) Delgado said he did not believe a constituent 
assembly would happen.  Neither Palacio nor Congress really 
want an assembly, he said.  Instead, they want to be 
perceived as taking action on reform to placate popular 
sentiment.  Delgado said he would like to see a constituent 
assembly with full powers to help revitalize Ecuador's 
institutions and pass laws that political parties with vested 
interests currently block.  As to who would serve on the 
assembly, he believed it should include some members of 
political parties, and that other representatives should be 
decided by the public, not just by other social groups with 
their own vested interests such as labor unions. 
 
9.  (SBU) Delgado said that after FTA negotiations concluded, 
there would be an outburst of public protests nationwide, 
including those led by his group.  He also predicted many in 
the agricultural sector believe they would not benefit from 
an the FTA and would protest on a wide scale.  He said these 
social movements could force the Congress to act on the issue 
of the popular assembly. 
 
Comment 
------- 
 
10.  (SBU) The final round of free trade agreement 
negotiations is giving social groups a cause to rally around. 
 Thus far, the number of protesters on the street has been 
underwhelming.  Past anti-FTA efforts have also been 
short-lived.  However, under the right circumstances, massive 
numbers of people are not necessary to force dramatic 
political change here.  (Witness the fall of former President 
Lucio Gutierrez in April which succeeded with media, middle 
class Quito protesters, and opposition political support, but 
never more than 50-70,000 in the streets.)  Social groups and 
indigenous are also calling for a popular assembly, yet one 
looks unlikely, further adding to social frustration. 
JEWELL