NAPA-PASTAZA STRIKE SUSPENDED, NEGOTIATIONS BEGIN

UNCLAS QUITO 000483 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ASEC PREL PGOV PHUM EC SUBJECT: NAPA-PASTAZA STRIKE SUSPENDED, NEGOTIATIONS BEGIN ¶1. (SBU) Summary: A disruptive citizens strike in the eastern province of Napo, supported by neighboring Pastaza province, was suspended pending the outcome of negotiations between protesters, the Ministry of Government, and the Minister of Economy and Finance Diego Borja on February 23. Ecuadorian military units regained control of the private OCP oil pipeline pumping station in Sardinas on the same day, but the pipeline is not yet operational. The state-run SOTE pipeline was largely unaffected by this strike. However, PetroEcuador officials claim that two recent protests that shut down the SOTE cost the GOE 34 million. Forty-three injuries and eleven arrests have been reported during the localized state of emergency in Napo and Pastaza provinces, including arrest of the mayors of Tena and Santa Clara and the Prefect of Napo. No AmCits have been hurt in the strikes. ¶2. (SBU) The strike action is typical of the pressure tactics used by provincial leaders to demand central government attention and resources. By generally acceding to striker demands, the Palacio government has ensured that these tactics will be replicated elsewhere. While disruptive and damaging economically, the strikes have not seriously threatened national political stability. The GOE has vowed to prosecute violent protesters, and Presidential Secretary Jose Modesto Apolo publicly blamed ex-president Lucio Gutierrez for the strikes. End Summary. ¶3. (U) On February 22 President Palacio declared a state of emergency suspending civil liberties and imposing a curfew in the eastern provinces of Napo and Pastaza after protests turned violent. Press reported forty-three civilian injuries, thirteen from gas inhalation; two police officers suffered injuries from dynamite and molotov cocktails hurled by protesters. Eleven individuals were arrested, including Mayor Washington Varela of Tena, Mayor Ricardo Reyes of Santa Clara, and Prefect Gina Sanmiguel of the Napo. Ecuadorian military units regained control of the OCP Sardinas oil pumping station early on February 23, after strike leaders suspended protests pending the outcome of negotiations with the government. ¶4. (U) Striker demands include increased funding for education, road and infrastructure improvements, and an international airport promised to Tena by ex-president Lucio Gutierrez, a native son. Presidential Secretary Jose Modesto Apolo publicly accused deposed ex-president Lucio Gutierrez, who remains imprisoned in Quito, of being behind the domestic disturbance. Gutierrez still enjoys wide support in the Napo and Pastaza provinces, and the arrested officials hail from his Patriotic Society party. OCP technicians have re-entered the pumping station to assess the damage done by the protesters. An industry source told us that they hope to have the OCP operational within the next three days. Over the past two weeks, protesters have also temporarily shutdown the state owned SOTE pipeline. State oil company PetroEcuador claims those shutdowns cost the government about 34 million in lost revenue. Comment -------------- ¶5. (SBU) The region's association with Gutierrez could make the GOE less inclined to concede to striker demands, or at least more inclined to aggressively prosecute lawbreakers. Unfortunately, these types of citizen strikes to demand additional resources from the central government are commonplace in Ecuador. This strike follows earlier strike actions or threatened disruptions in 13 other provinces (all successful in wringing concessions from the Palacio government, totaling $1.2 billion),and is a repeat of the August 2005 disruption of oil production in the neighboring Amazonian provinces of Orellana and Sucumbios. That strike took more than a week to resolve, at high economic cost to private companies, and led President Palacio to replace his Minister of Defense. Thus far, the political impact of the strikes has been limited to Cabinet members, and the current strike is unlikely to go beyond that. With the carnival holiday quickly approaching, it is in everyone,s interest to reach a compromise on this issue. ¶6. (SBU) Current Defense Minister Oswaldo Jarrin has proved more decisive ordering troops to clear road and oil facility blockages, causing more injuries but bringing strike leaders more quickly to the table. Minister of Government Alfredo Castillo does not inspire confidence in ensuing negotiations, however, and would be a most worthy casualty of any extended conflict. BROWN