ALAN GARCIA WOWS QUITO

C O N F I D E N T I A L QUITO 001671

SIPDIS

SIPDIS

E.O. 12958: DECL: 07/07/2016
TAGS: PGOV PREL PE EC
SUBJECT: ALAN GARCIA WOWS QUITO


Classified By: PolOff Vanessa Schulz for reason 1.4 (b&d)


1. (C) Summary: Peruvian President-elect Alan Garcia and
his FM-designate Jose Antonio Garcia Belaunde visited Ecuador
on July 6 to affirm positive bilateral relations and promote
further regional economic integration between Peru, Ecuador,
Colombia, Chile, and Brazil. Garcia publicly expressed his
support for the extension of ATPDEA benefits for Ecuador and
the resumption of U.S.-Ecuador free trade talks. Acting FM
Diego Ribadeneira was privately very enthusiastic about the
visit, especially Garcia's openness to binational energy and
development cooperation. Garcia's public statements were
welcomed here, where he is viewed as the new counter-weight
to Venezuelan President Chavez in the region. End Summary.


2. (U) President Garcia arrived in Quito on July 6 and was
received by the acting Minister of Foreign Affairs, Diego
Ribadeneira. Garcia met first with Ecuadorian president,
Alfredo Palacio. He later met with the press.


3. (U) Garcia publicly supported Ecuador's petroleum policy
including its decision to expel Occidental Petroleum, saying
the Oxy decision should not affect free trade negotiations
with the United States. Likely at GOE request, he publicly
supported the extension of ATPDEA benefits for Ecuador and
the resumption of U.S.-Ecuador free trade negotiations.


4. (U) Garcia also publicly reaffirmed positive bilateral
relations between Ecuador and Peru, denying that his country
had any outstanding border disputes with Ecuador and would
not question maritime limits. Garcia also reportedly briefed
Palacio about his plan to strengthen economic integration
between Peru, Colombia, Brazil, Chile, and Ecuador. Garcia
publicly denied that he was trying to form a counterweight to
Chavez in the region and said he hoped Venezuela would rejoin
the CAN.

MFA and Public Reaction Positive
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5. (C) Acting Foreign Minister Diego Ribadeneira told the
DCM on July 7 that there was an excellent rapport between
Garcia and Palacio. The GOE found Garcia and his
FM-designate Jose Antonio Garcia Belaunde very open towards
Ecuador and committed to binational dialogue. They believed
border development projects in energy and other areas would
continue and possibly improve under Garcia. Ribadeneira said
the GOE enthusiastically supports Garcia's efforts to have
Chile rejoin the CAN as an associate member and thinks the
prospects for this are good. Chile's membership would add
needed weight to the CAN in the wake of Venezuela's recent
exit, Ribadeneira said. The UNSC seat was not discussed.


6. (U) Public reaction to the visit was generally positive,
focused on Garcia's assurances that relations between the two
countries would not become conflictive. A newspaper
editorial commented that a new Ecuadorian government will
have to decide whether to side with Chavez' anti-U.S. block
or with a pro-free trade Garcia block that seeks to maintain
good relations with the U.S.

Comment
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7. (C) Garcia's visit emphasized conciliation and
cooperation with Ecuador and the Andean region, confirming
that border clashes between the two neighbors are a thing of
the past. Public reaction to the visit was positive and it
is likely Ecuador will join Garcia's efforts to strengthen
regional integration, especially given the reportedly
excellent rapport between Garcia and Palacio.
JEWELL