ECUADOR: OAS ON THE GROUND, QUITO CALM

C O N F I D E N T I A L SECTION 01 OF 03 QUITO 000947

SIPDIS

E.O. 12958: DECL: 04/26/2015
TAGS: PGOV PREL PINR ASEC EC
SUBJECT: ECUADOR: OAS ON THE GROUND, QUITO CALM

REF: QUITO 945

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


1. (SBU) Summary: Quito is relatively calm, with a very
small protest reported on April 27. The OAS mission arrived
late on April 26 and began meetings with the government and
others the following day. The Ambassador met with the new
Defense Minister on April 27. For the first time in recent
memory, Congress moved decisively on April 26 to replace its
leadership, purge its ranks, terminate the constitutional and
electoral tribunals, and approve a method to select a new
Supreme Court. They will meet again on April 27 to debate
how to replace the constitutional and electoral tribunals.
The Ambassador met with international financial institutions
representatives and the American business community; they are
nervous but already engaging with the new government. We
continue to do the same, hoping to help prevent any
unfortunate decisions.

OAS On the Ground
--------------


2. (C) The OAS delegation headed by Acting SecGen Einaudi
arrived late on April 26, and met shortly thereafter with OAS
Ambassadors, including Ambassador Kenney. The group was
joined by the Peruvian VFM, in town for the South American
Community troika mission. On April 27, the group met with
President Palacio, Government Minister Gandara, and Foreign
Minister Parra at the national palace. Palacio argued that
his government had not broken Ecuador's democracy, which he
inherited broken from his predecessor. Ecuador welcomed and
requested OAS support to help rebuild its institutions. He
denied plotting to overthrow the Gutierrez government, saying
the people had spontaneously decided his predecessor's fate.
He described his government's efforts to promote
participative democracy in the Jeffersonian model, including
recently-announced national dialogue roundtables to discuss
needed structural reforms, including electoral reform. This
dialogue process might be followed by a referendum proposal
in the next 3-6 months.


3. (C) The delegation then met with church representatives,
including Quito Archbishop Chiriboga, Mons. Jaime Bravo
Cisneros, Secretary-General of the Ecuadorian Episcopal
Conference, and (separately with Lutheran and evangelical
representatives). Religious leaders also asked the OAS to
help Ecuador rebuild its democratic institutions. The
delegation then met with Quito mayor Paco Moncayo and
Pichincha Prefect Ramiro Gonzalez, who also requested OAS
assistance to rebuild democracy by supporting an independent
judiciary. Moncayo argued for increased decentralization of
government services.


4. (C) Later on April 27, the delegation will meet with
indigenous and civil society groups, and congressional party
leaders. On April 28, they will meet with jurists, the
business community, PRE and PSP congress deputies, human
rights groups and ex-presidents and ex-vice presidents. The
group is not currently scheduled to visit Guayaquil, although
President Palacio suggested they do so.

Ambassadorial Outreach
--------------


5. (C) The Ambassador met with Defense Minister Gen. (ret.)
Anibal Solon Espinoza on April 27 (SepTel). She emphasized
USG support and appreciation for GOE efforts to secure its
northern border from harmful spill-over effects of the
Colombian conflict, including narco-trafficking.


6. (C) The Ambassador also met with local representatives of
the World Bank, IMF, IADB, and private sector representatives
on April 26, and met with the steering committee of the
Ecuador-American Chamber of Commerce on April 27. All were
already engaging with the new government to present their
views. There were no signs of a run on financial
institutions (see RefTel for more details).

Congress Gets Results, Finally
--------------


7. (U) In a 12-hour, uninterrupted session on April 26 with
83 members present, Congress voted to:

-- approve Wilfredo Lucero (ID) as its new president (with 65
votes in favor);

-- purge its ranks of 11 members (72 votes in favor);

-- approve a method to select a new Supreme Court (69 votes
in favor);
-- dismiss the constitutional court installed in November
2004 (59 votes in favor); and

-- replace the membership of the Supreme Electoral Tribunal
(TSE),(58 votes in favor).

Congress will meet again on April 27 to debate a method to
select new members of the Constitutional court.


8. (U) The actions of the new majority, comprised of the
PSC, ID, Pachakutik, the DP, and several independents,
consolidated its control of congress. This majority then
selectively purged the Congress of 9 members and two
alternates. The nine had left the PSC, ID or Pachakutik, and
will be replaced by alternates loyal to their parties. The
two alternates (one from PSC and other ID) will presumably be
replaced by party loyalists. Opponents quibbled with the
method used to make these changes, objecting that ethics
committee (controlled by opponents of the new majority) had
not issued a required report to the plenary. Undeterred by
procedural etiquette, the majority rolled on, pledging to
change the composition of the ethics committee and pursue
another purge of seven independent deputies who had allied
themselves with ex-president Gutierrez.


9. (U) The current makeup of the majority in Congress is as
follows:

PSC - 24 (from 22)

ID - 15 (from 14)

PRE - 13 (from 15)

Pachakutik - 10 (from 6)

PRIAN - 9

PSP - 5

DP - 4

PSE (Socialists) - 4

MPD - 3

CFP - 1

Independents - 12 (from 21)

Total: 100

Notes: The PRE bench shrank from 15 to 13 members, due to
the disaffiliation by Marco Proano Maya and Freddy Cruz.
Congress took no measures to sanction these members for
abandoning their party. PRIAN congress member Carlos Vallejo
resigned but was replaced by his alternate. PSP congress
member Ximena Bohorquez, wife of ex-president Gutierrez, also
resigned and was replaced by former Gutierrez secretary and
social welfare minister, Patricio Acosta.


10. (U) The current makeup of the TSE includes
representatives of the PRIAN (president),MPD (vice
presidency),PSC, ID, PRE, PSP and DP. PSC sources predicted
that Pachakutik would replace the PSP in the new TSE.

Security Situation Calm
--------------


11. (U) A small, non-violent, anti-government protest
involving approximately 100 took place outside the national
palace on April 27, while the OAS mission was meeting with
the President. While the OAS delegation members were
departing the palace, demonstrators chanted anti-OAS slogans,
but did not threaten the group in any way. Another small
group (less than 50) gathered outside Congress in
anticipation of the afternoon session.

Next Steps
--------------


12. (SBU) The Ambassador will meet with Minister of
Government Mauricio Gandara on April 28 to initiate dialogue
on security and political issues. On the same day she will
also meet with the First Lady, Maria Beatriz Paret de
Palacio, who has assumed leadership of the national
children's organization (INNFA),to discuss TIP and child
labor issues.
KENNEY