US embassy cable - 05QUITO2746

UNCLAS QUITO 002746 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV, PINR, PREL, EC, Regional 
SUBJECT: ECUADOR-CHILE: PRESIDENTS SIGN JOINT DECLARATION 
 
REF: LIMA 5145 
 
1.  Summary:  During a six hour visit to Ecuador on December 
1, Chile's President Ricardo Lagos and President Alfredo 
Palacio signed seven bilateral agreements and issued a 
declaration on maritime limits between South American 
countries on the Pacific.  The declaration echoed statements 
made by both countries' FMs on November 25, rejecting 
maritime border claims in Peru's Maritime Limits Law passed 
November 3.  Lagos also agreed to invest $430 million in 
Ecuador's petroleum industry.  End Summary. 
 
2.  President Ricardo Lagos of Chile, on a long-planned 
farewell visit to Ecuador, met with President Palacio on 
December 1.  The visit, originally scheduled for April of 
this year, had been postponed due to political instability in 
Ecuador. 
 
GOE and GOC Agree on Maritime Boundaries 
---------------------------------------- 
 
3.  The two Presidents issued a 52-point joint declaration 
reiterating that both countries respected the international 
agreements of 1952 and 1954 on maritime boundaries.  For its 
part, the GOP  responded that the GOE-GOC statement lacked 
legal authority and the agreements of the 1950s did not 
delineate Peru's maritime border with Chile (RefTel).  The 
Peruvian Congress passed a law on Maritime Limits on November 
3 and since then Chile has been working to gain the support 
of Ecuador for its opposing view.  On November 25, during a 
visit of Chilean FM Ignacio Walker, the Foreign Ministers of 
both countries issued a joint statement on the maritime 
issue, offering the same opinion that the 1950s agreements 
constitute recognition of the maritime border at the 
corresponding parallel.  Their statement was also publicly 
rejected by Peru's MFA. 
 
Chile To Invest in Petroleum 
---------------------------- 
 
4.  The bilateral commercial agreements reached during Lagos' 
visit include an agreement between Petroecuador and Chile's 
state petroleum company (ENAP) for Chilean investment in 
Ecuador's exploration and exploitation of petroleum for $430 
million.  Chile's investments in Ecuador are currently 
approximately $500 million.  The two countries also signed 
bilateral agreements on science and technology, labor, 
children, space activities, foreign trade, and Modernization 
Councils and the Civil Registry.  Cooperation agreements were 
also reached in the areas of health, tourism, education, and 
atomic energy.  Also, in the declaration, Ecuador expressed 
interest in joining APEC. 
 
Comment 
------- 
 
5.  The visit by Lagos showcased the GOE-GOC's historically 
strong ties.  It is no surprise that the GOE has sided with 
Chile against Peru on the issue of maritime limits, since 
Peruvian law treats both maritime borders equally, raising 
concern here that, despite the GOP's repeated assurances, 
Peru could one day make a similar claim against Ecuador. 
BROWN