AMBASSADOR'S TOUR D'HORIZON WITH PRES. GUTIERREZ

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 002303 SIPDIS E.O. 12958: DECL: 08/19/2014 TAGS: PGOV PREL EC SUBJECT: AMBASSADOR'S TOUR D'HORIZON WITH PRES. GUTIERREZ Classified By: Ambassador Kristie A. Kenney. Reason 1.5 (b&d). ¶1. (C) Summary: In a private breakfast meeting with the Ambassador and DCM on August 18 at the National Palace, President Lucio Gutierrez discussed upcoming municipal elections, his Cabinet, and requested additional U.S. aid for the social sector. The Ambassador encouraged free and fair elections, emphasized the importance of combating trafficking in persons, described extensive USG assistance programs in the social sector, and urged Ecuador to consider how to help strengthen democracy in Venezuela in the aftermath of the referendum there. Gutierrez exuded confidence and control, despite his unpopularity. End Summary. Elections -------------- ¶2. (C) Asked about the upcoming October municipal elections, Gutierrez exuded confidence. "After all, I control the purse strings," he said. Asked about the major mayorships up for election, Gutierrez said he believed Gen. (ret.) Paco Moncayo would win Quito. The Ambassador noted that the USG is scrupulously neutral in Ecuador's internal political affairs. She raised the need for the Executive to carefully separate affairs of state from partisan political activity, saying the free and fair elections in October will truly be a feather in the president's cap. A successful and fair election would culminate a year of positive exposure for Ecuador on the international stage. TIP and Cabinet: Changes Ahead -------------- ¶3. (C) President Gutierrez hinted that there may be changes in his Cabinet after upcoming elections, but did not elaborate on specific planned changes. (Note: he recently said the same publicly.) The Ambassador praised the President and Minister of Government Raul Baca for this leadership on the important issue of trafficking in persons. The President agreed that TIP is a very important issue, and mentioned the press conference to take place later that day at which he would sign a decree making TIP official government policy. The President said he had established a Commission to develop a national plan related to TIP and proposed legislative reforms to strengthen prosecutions against traffickers. The Ambassador noted great interest and leadership in the Ecuadorian Congress on this issue by key members, including Jacqueline Silva (PSC) and Miriam Garces (ID),and highlighted USG interest in working together with other nations to jointly combat this scourge. Social Sector Assistance -------------- ¶4. (SBU) Gutierrez made a pitch with the Ambassador for additional USG assistance in the social sector, as he had done with CoDel Weller (septel). What is needed, he said, is a "Plan Ecuador" to invest in social infrastructure in health and education to combat poverty and external threats fueling political instability. The DCM noted that several USG assistance programs designed to address these concerns will be announced in September, including $20 million in INL funding and $20 million from AID. The Ambassador mentioned the series of unquantifiable Medrete exercises we conduct to provide health services to Ecuadorians, which target under-served and indigenous areas. Venezuela -------------- ¶5. (C) The Ambassador raised with the President the need for Venezuela's Andean neighbors to consider how to contribute to the strengthening of Venezuelan democracy in the wake of the referendum. Public aspiration for democracy was reflected in the patience and determination of voters to endure long lines to cast their referendum vote. Gutierrez agreed this is an important issue to consider. Comment -------------- ¶6. (C) Gutierrez appeared relaxed, in control and optimistic, despite his low popularity in the polls. Perhaps energized by recent campaign-like trips to inaugurate public works projects in areas his party has electoral hopes, his manner belied conventional wisdom that the Patriotic Social Party is heading towards electoral oblivion. (Note: the party narrowly failed to meet the 5% threshold in the 2002 election, and will lose its official registry if it fails to do so in the upcoming municipal elections.) Gutierrez' naming of Moncayo as the clear favorite in the Quito mayoral race was also somewhat odd, since most view that race as very tight. It may be explained by the fact that although now political competitors, Moncayo and Gutierrez served together in the Army, and Moncayo has referred to Gutierrez as a protege. KENNEY