ID LEADERS SUPPORT PALACIO'S REFORM EFFORTS

UNCLAS SECTION 01 OF 02 QUITO 002191 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: PGOV PINR PREL EC SUBJECT: ID LEADERS SUPPORT PALACIO'S REFORM EFFORTS ¶1. (SBU) Summary: In initial office calls on President of Congress Wilfredo Lucero and Quito Mayor Paco Moncayo, the Ambassador discussed prospects for political reform. Both Moncayo and Lucero were emphatic that Palacio needed support for his reform agenda, echoing the sentiments of other leaders of the Democratic Left ("Izquierda Democratica - ID) party, which is now openly supporting Palacio's reform efforts. Lucero said Palacio's recent change of Minister of Government (with ID member Oswaldo Molestina replacing former minister Mauricio Gandara) signaled flexibility and willingness to dialogue on the part of the Palacio government. References to patriotic duty in a time of national need belied the fact that party interests are being served. End Summary. Supporting Palacio's Reforms -------------- ¶2. (SBU) On September 20, Lucero told the Ambassador that Molestina's appointment had greatly increased the chances for congressional approval of proposed political reforms. Lucero said Molestina, a former ID member of Congress and president of the international affairs committee (1998-2003),is widely respected in Congress and had sent a positive signal by requesting an early meeting with him. Molestina's new position could also help prospects for congressional consideration of an FTA. Lucero said that in addition to sending a congressional delegation to the Cartagena round, he was organizing a congressional retreat October 4-6 to analyze the status of FTA negotiations in depth. ¶3. (SBU) Asked by the Ambassador what reforms are likely to be included in November/December referendum, Lucero said the size of Congress might be reduced, as well as the length of its sessions. More important than the quantity of legislators was their quality, which had declined over the years, according to Lucero, who was first elected to Congress in 1977. He warned that the government must be cautious lest a referendum on reforms be converted into a plebiscite on the Palacio government's popular support. ¶4. (SBU) President Palacio deserved support, Lucero said, during a time of democratic recovery from the effects of the Gutierrez "dictatorship." The interest in doing so is not partisan but national. Beyond reforms, it was urgent to change the "culture of confrontation." The media was also at fault, not playing a responsible role. He cited as an example the media flap over his recent change of hair color. The change was provoked by his chemotherapy treatments, which he preferred to keep private. Media had shamelessly alleged he had used public funds to re-style his "look," forcing him to sue for slander. Mayor Promotes Patriotic Duty -------------- ¶5. (SBU) Mayor Moncayo was equally emphatic that the Palacio government deserved support for its reform agenda. Without specifying any particular reform (possible reforms are under negotiation between the executive and Congress),Moncayo implied that the ID was performing a patriotic duty by increasing political stability. Moncayo, a popular second-term mayor with presidential prospects, was at the forefront of efforts to oust former president Gutierrez (and presidents Mahuad and Bucaram before him). ¶6. (SBU) Moncayo was eager to share his vision of municipal-level accomplishment with the Ambassador, discussing USG-supported plans for a new Quito airport and highlighting plans for other transit system improvements (light rail, and a possible monorail project for the new airport. He promised continued cooperation with our plans to construct a new Embassy in a more secure location of the city. Comment -------------- ¶7. (SBU) The accolades from these two prominent ID leaders for fellow party member Molestina are not surprising, but their exhortations of "patriotic duty" to support reform ring a bit hollow. ID public relations "spin" trumpets the "unprecedented political maturity" of the move. PSC leaders, in contrast, were quick to distinguish themselves by stating plainly they have made no such pro-government arrangement. ¶8. (SBU) What is becoming ever more clear is that ID support for the Palacio government is apparently not linked to any particular reform. That raises the question of what else the ID might be expecting for its support. Upon shifting cabinet seats, Molestina immediate demanded the resignation of all sitting governors (appointed by the president here, not elected),raising the possibilities of patronage. Others speculate that it involves control of government positions for electoral advantage. The PSC, which tacitly supports the Palacio government's stability (SepTel),has shied away from tying its own public support to a sitting government. JEWELL