(C) Secretary Clinton's April 18, 2009,

C O N F I D E N T I A L PARTO 042805

SIPDIS

WHA PLEASE PASS TO USOAS

E.O. 12958: DECL: 04/18/2019
TAGS: OVIP CLINTON HILLARY PGOV PREL ECON EAID
EFIN, ETRD, KDEM, SNAR, SMIG, SOCI, EC
SUBJECT: (C) Secretary Clinton's April 18, 2009,
conversation with Ecuadorian President Rafael Correa


1. (C) Classified by: Paul D. Wohlers, Deputy
Executive Secretary, S/ES, Department of State. Reason
1.4.(d)


2. (C) April 18, 2009; 3:00 p.m.; Port of Spain,
Trinidad and Tobago.


3. (C) Participants:

U.S.
The Secretary
A/S Thomas A. Shannon, WHA
Amb. Hector Morales, USOAS
Deputy Chief of Staff Huma Abedin, S
Deputy Chief of Staff Jacob Sullivan, S
Heide Bronke Fulton (Embassy Notetaker)

ECUADOR
President Rafael Correa
Foreign Minister Fander Falconi Benitez
Minister Natalie Celi, Minister of Social Development
Amb. Carlos Jativa Naranjo, Under Secretary for
Multilateral Relations
Amb. Miguel Carlo Benites, Diplomatic Coordinator
Amb. Denys Toscano, Counselor, Mission to the OAS


4. (C) SUMMARY. Secretary Clinton and Ecuadorian
President Correa met for a cordial discussion that
emphasized a mutual desire for a closer relationship
based on respect and equality; counternarcotics
cooperation; trade preferences; immigration; and
economic development. President Correa characterized
his and other Latin American governments as often
misunderstood, differentiating populism from popularity.
Both leaders agreed on the importance of seeking justice
through democracy to bring the greatest benefits to
citizens. President Correa outlined the benefits of
Andean Trade Promotion Act (ATPA) preferences to both
Ecuador and the United States, but said he would not beg
for ATPA extension. President Correa posited that there
was no universal recipe for economic development and
committed to dialogue with the United States to reduce
misunderstandings and coordinate solutions. Secretary
Clinton solicited ideas for ways to address mutual
challenges and underscored the need for greater
cooperation to work together effectively. END SUMMARY.

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Seeking a Positive Relationship
--------------


5. (C) President Correa warmly greeted the Secretary
and expressed his fondness for the United States and the
American people despite occasional differences. He
stated that at times Latin American governments were not
well understood; frequently when governments took
actions that were "non-traditional," they were viewed as
populist ? which Correa differentiated from being
popular. He observed that, although Latin America was
living its most fully democratic period in history,
having elections did not automatically mean that
democracy existed. He emphasized that democracy equaled


justice, which was not yet fully developed across the
hemisphere, and that democratic governance was
impossible when injustice and inequality existed. He
confirmed the aspiration of his and other regional
governments for justice for people, between people, on a
global level. Countries in the hemisphere sought a
positive relationship with the United States, but the
President cautioned that it must be based on respect and
equality.


6. (C) Secretary Clinton agreed with the importance of
justice, adding that seeking justice through democracy
would bring the greatest benefits to citizens. She
echoed President Obama's stated intention to reestablish
hemispheric relations on a more respectful basis. The
Secretary emphasized that although disagreements would
still exist, her goal was to find a way to work together
on a range of issues, and to promote democracy and
development to achieve the greatest benefits for both of
our countries.


7. (C) The Secretary underscored that the Obama
Administration had turned a page and we did not yet know
what would be written on it. We shared the same values,
faith, and respect for human dignity, and we must find a
way to translate rhetoric into reality. She proposed a
broader strategic dialogue that would transcend the
problems between our two countries and enable us to work
together to determine sensible solutions. The Secretary
expressed her understanding of frustrations with
injustice that led to a desire to short-circuit the
process, but emphasized the need to continue to work
together pragmatically to identify mutually beneficial
solutions. President Correa agreed and observed that we
shared in common the characteristic of pragmatism, and
emphasized his preference for concerted, collective
action.

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Counternarcotics Cooperation and Trade Preferences
-------------- --------------


8. (C) President Correa raised the issue of the Andean
Trade Preferences Act (ATPA),under which Ecuador
received trade benefits that were tied to its
cooperation in counternarcotics efforts. He observed
that countries spent millions of dollars each year to
fight drugs and that although the Government of Ecuador
(GOE) was committed to this, he also was committed to
domestic concerns ? pointing out that more children in
Ecuador die of diarrhea daily than of drug abuse, and
that every dollar spent on counternarcotics activities
took money away from other domestic concerns. He opined
that Ecuador was one of the most successful Andean
countries in the fight against drugs and the only one
that did not grow coca, yet the GOE was forced routinely
to beg to have preferences extended. He underscored
that ATPA paid dividends not just for Ecuador, but also
for the United States in terms of reduced coca
cultivation. President Correa confirmed that he had
directed his diplomats in Washington not to beg to


extend preferences when ATPA was reviewed in June, and
expressed his hope to pursue a permanent trade agreement
at some point in the future.

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Immigration and Economic Development
--------------


9. (C) President Correa raised the issue of immigration
and emphasized that any discussion should focus on a
holistic approach that included job creation, access to
education, and the creation of opportunities at home so
citizens would not be compelled to seek them overseas.
He expressed his view that economic development plans
historically had over-emphasized multinational companies
at the expense of sovereign states. Secretary Clinton
acknowledged the President's concerns and observed that
many were concerned about the perceived imbalance of
power in the region. She proposed exploring proposals
for reforms that the GOE would like to see. She
characterized employment as the top problem facing the
hemisphere, emphasizing the need to help citizens find
work in a global economy and to make local economies
competitive in a way that respected property rights and
the rule of law. She observed that expropriating or
driving out multinational corporations also would drive
out investment, technology, and competitive advantage,
and emphasized the need to identify a 21st century
blueprint for the best way to achieve market conditions
to directly improve citizens' lives.


10. (C) President Correa stated his preference for
centrally-planned actions, stemming from his analysis of
reality in Ecuador ? something that was not always
understood in the United States. He opined that a
market economy had given the United States great
benefits, but it could be a disaster in other countries
with great socio-economic asymmetries. In Ecuador, the
role of the state was vital to generating financing. He
observed that the U.S. economy was competitive, and thus
the United States would inevitably come out on top in
pursuing free trade and competitiveness. The United
States did not become the modern economic power that it
was today without relying on protectionism; what Ecuador
was doing today, the United States did in the nineteenth
century. He emphasized that Ecuador's view and its
actions were often misunderstood in the United States;
President Correa underscored that there were no
universal recipes for economic development and committed
to dialogue with the United States to reduce
misunderstandings and coordinate solutions. Secretary
Clinton pointed to the example of the Scandinavian
countries in the early 20th century, offering a model to
build institutional capacity. She further emphasized
the need for greater cooperation to build the confidence
and trust necessary to work together effectively. There
was room for differences on an economic approach. The
U.S. view was that democracy, development, justice and
the rule of law must go hand in hand, and we would work
together to find the right balance.
CLINTON