GALAPAGOS NEW YEAR: NO CAUSE FOR CELEBRATION

UNCLAS SECTION 01 OF 02 QUITO 000075

SIPDIS

E.O. 12958: N/A
TAGS: EAID ECON EFIS ETRD PGOV PREL SENV EC
SUBJECT: GALAPAGOS NEW YEAR: NO CAUSE FOR CELEBRATION

REF: A. A. 04QUITO 2614

B. B. 04QUITO 565

C. C. 04QUITO 1501

D. D. 04QUITO 1559 AND 1571

E. E. 04QUITO 2502


1. Summary. Violent strikes, instability, disregard for
conservation, and political expediency have plagued the
Galapagos over the past year. Unfortunately, the New Year
brought no cause for celebration. It now appears likely that
the Minister of the Environment, Fabian Valdivieso, will open
the Galapagos Marine Reserve to longline fishing.
Valdivieso,s commitment to transparency and independence in
the Galapagos National Park (GNP) Director selection process
also appears to be waning (Ref A). The lack of protection of
the resources in the Galapagos under the current GNP
Director's tenure garnered front-page coverage in the local
press and forced the President to call for an investigation.
The Ambassador and members of the Mission continue to push
for stability and conservation with targeted members of the
GOE. End Summary.

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2004: A Sad Review
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2. The past year in the Galapagos has been tragic. A series
of violent strikes and a parade of park directors have
destabilized management of the park and virtually paralyzed
monitoring and enforcement in the Galapagos Marine Reserve.
The Gutierrez administration has politically exploited the
park in order to garner votes from other political parties to
support the President.


3. The year started off with the fishermen in the Galapagos
protesting in January over environmental regulations. The
fishermen restricted access to the GNP and the Charles Darwin
Research Station but were not violent (Ref B). In May, the
fishermen protested a decision to regulate the sea cucumber
season (Ref C). In June, this developed into a full strike
that became violent. The fishermen blockaded the island of
Hispanola, not permitting tourists to enter or depart. The
fishermen completely took over the GNP, cutting off all
access to and from the park. The strikers attacked two
police vehicles, briefly took over a gas station, and hurled
rocks and Molotov cocktails at GNP buildings (Ref D). In
September, the employees of the GNP went on strike,
protesting the replacement of the park director with someone
closely aligned with the fishing sector (Ref E). While the
park employees were not violent, club-wielding fishermen
stormed the park in order to install their man as park
director.


4. The revolving door of GNP Directors has, more than
anything, destabilized park management and caused paralysis
within the park. In the eight years prior to President
Gutierrez assuming office the GNP had only one Director.
Over the past two years there have been ten directors, four
from September to December 2004.


5. Further, a majority (226) of the GNP's employees (roughly
300) work under contracts that expired on December 31, 2004.
The interim director, who is also a favorite son of the
fishing interests, has said that there is no money available
in the Ministry of Finance to renew non-essential contracts.
Accordingly, he decided that the head of monitoring and
enforcement for the marine reserve was one of the
non-essential positions. Even though Valdivieso later
reversed this decision publicly, the incumbent's contract was
never renewed. The same is occurring with other essential
positions, such as the Chief of the Marine Reserve on Isabela
Island. Currently, only 76 of the contract positions have
been renewed, leaving the 138,000 square kilometer marine
reserve essentially unmonitored.

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2005: No Cause for Celebration
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6. This year is shaping up to be as bleak as last. Having
essentially taken over control of the GNP, the fishermen are
now proposing opening parts of the marine reserve to longline
tuna fishing. The economic basis of the proposal seems to be
more the potential lucrative gains from the bycatch (shark
and other high value species) than the more modest earnings
possible from the tuna fishery.


7. The independent and transparent process for selecting
permanent GNP Directors is floundering. The current Minister
has not shown any intent to implement the process. He has
not even submitted the required Presidential Decree for
review. The proposed process may be shelved if Valdivieso is
replaced with his likely successor, Ruben Moreno, the current
number two at the Ministry.


8. The mismanagement of 2004 has also adversely affected the
GNP's international standing and ability to compete for
funding. Both the Ford and Moore Foundations have suspended
potential donations to the GNP because of instability in the
park.


9. On an optimistic note, a new marine research and patrol
vessel (financed by the International Development Bank) has
been commissioned. This vessel can stay at sea for extended
periods of time, and should give monitoring personnel greater
enforcement capability, if their contracts are renewed.
Also, recent press coverage and editorial commentary has
echoed the concerns of conservation and donor groups over
instability and lack of vision in the Galapagos. This
prompted President Gutierrez to call for an investigation of
GNP management.

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U.S. Mission Actions
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10. Post continues to press the GOE to prioritize
conservation of the Galapagos. The Ambassador has instructed
USAID to visit the Galapagos to meet with new political
authorities, evaluate the use of our resources in the
archipelago, and unify the message of concern with other
donors. Political officers will raise the issue of
conservation and donor investments with key members of
Congress. Economic officers will meet with Ministry of
Finance officials to push for funding for appropriate
staffing levels in the GNP. MilGroup will lobby for
stepped-up patrolling and increased vigilance to eliminate
violent strikes in the GNP. Consulate Guayaquil and Embassy
will press key tourist sector contacts to become more vocal
in expressing environmental concerns. And the Ambassador
will continue to lobby the President and the Ministers of the
Environment and Tourism for stability, transparency, and
increased conservation.

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Comment
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11. Rumors continue to fly that MOE Valdivieso,s days are
numbered. His likely successor, Ruben Moreno, is the current
number two at the ministry ) and well known to us as a
political operative loyal to Gutierrez with no background or
interest in environmental matters. It became evident over
the past six months that his was the hand behind the turmoil
in the GNP, trying to buy congressional votes with park
positions. If he is named Minister, conservation will
undoubtedly take even more of a back seat to political
expediency.

KENNEY