ECUADOR: FM AND MINDEF MEETINGS

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 001177

SIPDIS

DEPARTMENT PLEASE PASS TO USOAS

E.O. 12958: DECL: 05/12/2015
TAGS: PGOV PREL MARR MASS PINR SNAR EC
SUBJECT: ECUADOR: FM AND MINDEF MEETINGS


Classified By: Ambassador Kristie A. Kenney, for reasons 1.4 (b&d).


1. (C) Summary: The Ambassador met separately with FM Parra
and MinDef Espinosa on May 19. Parra expressed hope for the
strongest possible relations with the U.S., and pledged MFA
support for successful FTA negotiations. He expressed GOE
discomfort with language in the draft OAS resolution, said
the GOE had not decided on its candidate for Ambassador to
the U.S., and said he would not be traveling soon to Colombia
to meet with his counterpart, contrary to press reports.
Parra also said he was undecided whether to attend the
upcoming Ft. Lauderdale OASGA. The Ambassador urged Parra to
accept a credible OAS resolution and develop fluid relations
with his Colombian and Peruvian counterparts, and told him
that the GOE must do more to combat TIP or face USG
sanctions. Espinosa also expressed hope for good relations
with the United States. He explained his recent replacement
of the Army chief, outlined his goals, and signaled GOE lack
of interest in an Article 98 agreement. End Summary.

FM Parra Staying Close to Home
--------------


2. (C) The Ambassador and DCM lunched with FM Antonio Parra
and VFM Marcelo Fernandez de Cordova at her residence on May

19. Parra said a busy schedule in Quito would prevent him
from traveling May 21 to Colombia to meet with his
counterpart, contrary to erroneous press reports. The
Ambassador suggested he develop close relations with both
Colombian and Peruvian counterparts, to permit fluid
communications. Parra said events in Quito might also keep
him away from the OASGA in Ft. Lauderdale June 5-7. After
all, he said, the GOE did not support any candidate for OAS
Assistant SecGen, and the agenda for Ft. Lauderdale seemed
thin. Parra expressed concern that the OAS resolution on the
change of government here not "put Ecuador under a cloud" by
offering new oversight mechanisms. He agreed with the
Ambassador, however, that a forward-looking, credible
resolution could be helpful, and said he would study the
issue further.


3. (C) The Ambassador thanked the GOE for its rapid approval
of agrement for the U.S. Ambassador-designate.
Unfortunately, our process for agrement usually took longer,
but we would do our best to expedite it. Parra said the
post of Ambassador to the U.S. was still vacant. The GOE is
searching for a candidate of "great prestige." The
Ambassador said it was important for the candidate to enjoy
President Palacio's and FM Parra's confidence.


4. (C) The Ambassador also thanked the ministry for its
rapid turnaround of USG requests for maritime interdiction
cooperation, and its agreement to cede jurisdiction over the
Colombian national in the Simon Bolivar case. VFM Fernandez
agreed that bilateral maritime cooperation was working well.
Shifting to economic themes, Parra said he was a proponent of
the FTA and the MFA would play a supportive role to the
Ministry of Commerce, which had the lead in negotiations.
Unfortunately, unhelpful misperceptions exist in Ecuador
which need to be countered with public information campaigns.



5. (C) The Ambassador told Parra that Ecuador was facing
Tier III sanctions for its lack of effort to combat
trafficking in persons (TIP). Parra and Fernandez both
seemed surprised to learn this, and clearly had only vague
conceptions about TIP as an issue. The Ambassador referred
them to the efforts of their underlings on the issue, offered
to provide background information, and urged the GOE to seize
the opportunity of a negative report to redouble GOE efforts
to combat this scourge. Parra pledged to do so, and welcomed
an Embasssy briefing on TIP.

MinDef Rebuilding Mil Prestige
--------------


6. (C) Gen. (ret.) Solon Espinoza invited the Ambassador to
breakfast with him in his office on May 19. He told her that
he had replaced Army Chief Ubillus the day before because he
lost confidence in Ubillus' loyalty. Espinoza said that
President Palacio had agreed with his decision, and, after
Espinoza offered to resign, also agreed that Col. (ret.)
Jorge Brito's responsibilities should not include military
security issues. Espinoza would be the exclusive advisor to
the president on these issues. Palacio denied having offered
the controversial Brito a position with cabinet rank, and
immediately called him in to clear the air with Espinoza
present. Espinoza said no further changes were contemplated
in the military leadership, but added that he would not
hesitate to replace any officer in whom he loses confidence.


7. (C) The Ambassador ventured that Brito and Patricio
Acosta, both linked to Chavez and Acosta proven corrupt, were
not worthy of GOE confidence. Espinoza agreed, saying
President Palacio was troubled by their presence in his
administration. Espinoza also agreed to reach out to his
Colombian and Peruvian counterparts, to prevent
misunderstandings and build confidence.


8. (C) Espinosa outlined the following priorities for his
term as MinDef:

-- recuperate the military's prestige, which has declined
following ten years of political instability and political
plotting;

-- to bring military codes and procedures into compliance
with the 1998 constitution;

-- to ensure the military fulfills its professional and
constitutional role without deviation (an allusion to the
military's role in the downfall of Gutierrez); and,

-- to streamline and audit military finances.


9. (C) Espinoza said that while the military benefits from a
cut from national oil revenues from parastatal Petroecuador,
it receives no such benefit from private oil companies. Many
of those companies benefit from security provided by the
military. He concluded the meeting saying that while the GOE
sought strong relations with the U.S., ever country must
pursue its own interests. Ecuadorian political debate over
sovereignty concerns are exaggerated in today's globalized
world, he said. Ecuador needs to think globally, and as a
fundamental tenet of its foreign policy would continue to
support international institutions of justice.

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


10. (C) Parra and Espinoza are cabinet members we respect
and are coming to trust. Espinosa is clearly a man of
principle and a welcome ally against Bolivarian inroads (in
the persons of Brito and Patricio Acosta) in this
administration. Parra seems a genuine ally in our efforts to
smooth this administration's rougher edges. Both men were
convincing when professing hope for strong bilateral
relations, within limits. Espinoza's comments on
globalization clearly signaled that Article 98 is not within
those limits. His hint that foreign companies should somehow
contribute to the military budget is another cause for
concern.

KENNEY