PRESIDENT GUTIERREZ CONFIDENT IN FACE OF

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 002929

SIPDIS

DEPARTMENT PLEASE PASS TO USOAS

E.O. 12958: DECL: 11/05/2014
TAGS: PGOV PREL MARR EC
SUBJECT: PRESIDENT GUTIERREZ CONFIDENT IN FACE OF
IMPEACHMENT THREAT

REF: QUITO 2900

Classified By: DCM Arnold Chacon for reason 1.4 (b&d)


1. (C) Summary: The GoE reacted calmly to the initiation of
impeachment proceedings against President Gutierrez by
Congress on November 4. The Ambassador spoke with President
Gutierrez by telephone on November 4 and on the margins of an
unrelated event on November 5. Gutierrez thanked the USG for
our efforts in support of democratic stability and when
pressed by the Ambassador had no further request for USG
action. He said there was no justification for charges
against him, and expressed confidence that the
pro-impeachment opposition would fail in its attempt to oust
him. He had every intention of staying the course, and not
letting impeachment proceedings distract him from governing.
The Ambassador also spoke on November 4 with Defense Minister
Herrera, who said the President was in good spirits during a
Cabinet meeting earlier that day, and that the military would
respect Constitutional rights and Congressional prerogatives.
End Summary.

GoE Reacts Calmly
--------------


2. (U) President Gutierrez and other GoE officials took the
news of impeachment proceedings calmly and reacted
cautiously. Minister of Government Baca told reporters that
the President was not required under the Constitution to
attend impeachment hearings, should they occur, and seemed
critical of Foreign Minister Zuquilanda for requesting Rio
Group mediation. Economy Minister Yepez commented that a
prolonged conflict with Congress could put at risk reforms
needed to promote economic growth. VP Palacios was nowhere
to be seen, skipping a Cabinet meeting without public
explanation.


3. (C) The Ambassador called Minister of Defense Nelson
Herrera shortly after the impeachment event took place in
Congress. Herrera said the President was in good spirits
during a Cabinet meeting earlier that day which focused on
"national issues" rather than impeachment. He expressed
concern that the impeachment debate had turned personal
between Gutierrez and Febres-Cordero. The Ambassador also
discussed impeachment on November 5 with Finance Minister
Yepez and other Cabinet members (SepTel).


4. (C) The Ambassador spoke later on November 4 by telephone
and on November 5 on the margins of an unrelated public event
with President Gutierrez, who denied any justification for
charges of misuse of public funds and proceeded to denounce
Febres-Cordero's motives. He thanked the Ambassador for USG
efforts to support democratic stability. The Ambassador
expressed regret that the impeachment process had turned
personal with Febres-Cordero, and concern that political
conflict could undermine economic stability. Gutierrez said
he would fight off baseless impeachment charges, saying he
was convinced he was in the right. Asked by the Ambassador
if there was anything we could do to help, Gutierrez had no
requests.


5. (SBU) Gutierrez used the occasion of the Ambassador's
call to congratulate the United States for its successful
election and President Bush for his re-election. The
Ambassador emphasized the gracious victory and concession
speeches and joint calls by both candidates for national
unity. Gutierrez said he had drafted a letter of
congratulations to President Bush (Quito 2927). After the
Ambassador noted that Senator Kerry would remain an
influential leader in the U.S. Senate, Gutierrez said he
might send a letter to Kerry as well.

Comment
--------------


6. (C) The GoE appears confident it has the votes to stave
off impeachment and has not requested USG assistance to help
it do so. For our part, we will continue to reach out to the
GoE and both the pro and anti-impeachment opposition forces
to encourage fuller consideration of the consequences of
political instability. We will also review and suggest
opportunities to reinforce our stability message in coming
weeks.

Additional Procedural Background
--------------


7. (U) On November 4, three major parties and one minor
party submitted 50 (not 52, as previously reported)
Congressional signatures in favor of initiating impeachment
proceedings against President Gutierrez on various grounds
(see below). President of Congress Landazuri formally
accepted the request and said he would propose the approval
by the plenary of a Special Committee comprised of
representatives from all parties with 10 or more seats in
Congress. A simple majority of a quorum (51 members) is
required to approve the special committee, which would have
five days to issue an opinion. If conformed, the committee
is expected to issue majority and minority reports, one of
which will recommend impeachment proceedings.


8. (C) PSC Congress member Luis Fernando Torres told PolOffs
on November 5 that despite believing impeachment to be a
mistake, he hoped to become the PSC representative on the
special commission. However, he said it is not clear that
the pro-impeachment forces will have the simple majority of
the quorum to assure the creation of the special commission,
since some signers are wavering. Due to the closeness of the
vote, he said, the PSC was forced to accept separate grounds
for impeachment from each party. Torres provided us a copy
of the documents presented to Landazuri, which call for
impeachment under article 130 of the Constitution, on the
following grounds:

-- PSC (25 signatures, plus one ex-PRIAN independent): for
embezzlement, "for having arbitrarily spent funds, resources
and public property in favor of PSP candidates of his party;"

-- ID (14 signatures): for embezzlement, "for allowing the
State Bank to give non-reimbursable loans to private
institutions... and for the use of public funds of the
Solidarity Fund... for abandoning his responsibilities to
participate in the promotion of PSP candidates...for
importing posters and electoral propaganda from Mexico for
the 2002 presidential campaign, resulting in his fraudulent
election;"

-- Pachakutik (8 signatures): for violation of national
security, for suggesting publicly that the people might "burn
down the courts;"

-- MPD (3 signatures): for "betraying the motherland"...by
favoring interests of foreign companies which benefit from
oil fields in production...taking advantage of state
resources for personal use and abandoning his
responsibilities for his party...violating national security
by involving our country in Plan Colombia...violating
national sovereignty by permitting the sinking of Ecuadorian
fishing vessels."
KENNEY