PALACIO SUFFERS SETBACKS, DROPS OUT OF WHO RACE

C O N F I D E N T I A L QUITO 002550 SIPDIS SENSITIVE SIPDIS PLEASE PASS ALSO TO USOAS AND USAID/LAC E.O. 12958: DECL: 09/27/2016 TAGS: KDEM PGOV EC PREL SUBJECT: PALACIO SUFFERS SETBACKS, DROPS OUT OF WHO RACE REF: A. QUITO 2549 ¶B. QUITO 2544 ¶C. QUITO 2002 Classified By: PolOff Erik Martini for reasons 1.4 (B&D) ¶1. (C) Summary: President Alfredo Palacio announced he would abandon his controversial campaign for the WHO Director Generalship on October 18. At the same time, Palacio's fifth Minister of Economy resigned and a major political party conditioned its support for president in the second round on Palacio's political trial. With Palacio's low approval rating, he faces a difficult final three months in office that couldn't get much worse. Rough Day for Palacio -------------- ¶2. (SBU) In a press conference on October 18, GOE Foreign Minister Francisco Carrion announced that President Alfredo Palacio would withdraw from the race to become the next Director General of the World Health Organization. The press conference had been postponed half an hour as most of the press corps was listening to President Palacio's fifth Minister of Economy, Armando Rodas, announce he was quitting after only three months on the job (Ref A). In other news, the Patriotic Society Party (PSP) specifically declared that it would throw its surprisingly substantial electoral support to any candidate that promised to bring President Palacio to trial for his role in toppling the Gutierrez administration in April, 2005. ¶3. (U) Palacio had come under increasing pressure for his open campaigning for the WHO Directorship. Through his foreign minister, Palacio claimed 18 of the 34 members of the WHO Executive Council had promised to vote for his candidacy and another six expressed their support. Palacio said he decided to drop out "in a demonstration of responsibility to Ecuadorians and his country." Carrion thanked, on Palacio's behalf, Presidents Lula da Silva of Brasil and Evo Morales of Bolivia for their support. According to an informal Cedatos survey, the public disapproved by a margin of 75% to 25% of using government resources, including heavy diplomatic campaigning, to further Palacio's personal career. On top of this, Palacio's overall approval rating has been fluctuating and generally very low all year. Comment -------------- ¶4. (C) Although Palacio is at this point the lamest of lame ducks, his presidency still has three months left. The PSP's success (Ref B) at the polls gives them a potent bargaining chip to move the next government to go after Palacio in a political trial. Palacio,s dropping out of the WHO Director General race is a blessing for the WHO (Ref C),but leaves this failed caretaker president with little to do for the next three months except grow increasingly paranoid and, probably, focus on lining his pockets while he still has the chance. JEWELL