ECUADOR'S NEW VISION FOR RELATIONS WITH U.S.

C O N F I D E N T I A L QUITO 000160

SIPDIS

E.O. 12958: DECL: TWENTY YEARS
TAGS: PREL SNAR EINV PGOV ETRD KJUS EC IR
SUBJECT: ECUADOR'S NEW VISION FOR RELATIONS WITH U.S.

REF: QUITO 122 AND PREVIOUS

Classified By: Ambassador Hea...

id: 195473
date: 3/5/2009 16:19
refid: 09QUITO160
origin: Embassy Quito
classification: CONFIDENTIAL
destination: 09QUITO122
header:
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INFO RUEHBO/AMEMBASSY BOGOTA 8020
RUEHBR/AMEMBASSY BRASILIA 4098
RUEHCV/AMEMBASSY CARACAS 3442
RUEHLP/AMEMBASSY LA PAZ MAR LIMA 3086
RUEHGL/AMCONSUL GUAYAQUIL 4166
RUEATRS/DEPT OF TREASURY WASHDC
RHEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC
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C O N F I D E N T I A L QUITO 000160

SIPDIS

E.O. 12958: DECL: TWENTY YEARS
TAGS: PREL SNAR EINV PGOV ETRD KJUS EC IR
SUBJECT: ECUADOR'S NEW VISION FOR RELATIONS WITH U.S.

REF: QUITO 122 AND PREVIOUS

Classified By: Ambassador Heather Hodges for reason 1.4 (D)


1. (C) Summary: In a March 4 meeting, MFA U/S Orbe,
speaking on instructions from FM Falconi, set the stage for
Ecuador's vision for future relations with the U.S. He then
called for a meeting between President Obama and President
Correa to set a strategic agenda for future cooperation on
the basis of mutual interests. The Ambassador reminded him
of the harm that GOE expulsions of Embassy personnel had done
to the relationship, and protested Minister Carvajal's
continuing public rhetoric against one of the expelled
officials. She informed Orbe about problems with continuing
cooperation in several areas and suggested we move ahead on
planning the Manta FOL's withdrawal and future
counternarcotics cooperation under the gas-and-go model as
next steps in the relationship. Other MFA officials raised
the Bilateral Dialogue and a planned protest note on the
Serrano case. End Summary.


2. (SBU) The Ambassador met with MFA Under Secretary for
Bilateral Affairs Jorge Orbe on March 4 at his request. The
new North American Affairs Director General Juan Salazar,
Advisor to the Foreign Minister Marco Albuja, and PolCouns
also joined the meeting.

MFA REACHING OUT IN ITS OWN WAY


3. (C) In a wide-ranging introduction to the purpose of the
meeting, U/S Orbe sought to establish the parameters for
future bilateral cooperation by highlighting what he called
profound changes in Ecuador under President Correa and the
new constitution. He said the Correa administration found
weak government institutions when it came into office, so it
was strengthening the regulatory, planning and control
functions. Orbe stressed that investment must now give
priority to development of microenterprises and small and
medium companies, rather than to large ones. In that
context, he said the GOE provided investment guarantees and
recognized the private sector's role; it wished to control
only strategic economic sectors and would not repeat the
errors of the past in its "21st Century Socialism." Orbe
said that to counter crime and narcotics trafficking, the GOE
focused not only on security measures, but also addressing
the public health impact and border region underdevelopment.


4. (C) Orbe described Ecuadorian foreign policy as seeking
good relations with all countries, particularly those in
Latin America, but also with developed countries. He
stressed that ties (including those with the U.S.) must be
developed on the basis of shared interests in strengthening
democracy, promoting development, increasing employment,
reducing inequality, treating migrants humanely, controlling
narcotics trafficking, and fighting trafficking in persons.
Orbe cited the will of the Ecuadorian people who voted
against pro-FTA candidates, saying that commercial agreements
must be concluded on new terms. In an aside on Iran, he
claimed that the GOE did not support Iran's nuclear
initiatives.


5. (C) Orbe then proposed to the Ambassador that the two
governments agree on a strategic agenda for wide-ranging
bilateral cooperation and a political dialogue. He suggested
that the point of departure for improved relations with the
U.S. should be a meeting between our presidents. He noted
the efforts of the Ecuadorian Ambassador in Washington to
secure a meeting for FM Falconi with the Secretary and one
between POTUS and Correa, "if not at the Summit (of the
Americas),then before or after." Orbe believed such a
dialogue would allow us to reconstruct and revitalize our
relationship on new terms.

AMBASSADOR LAYS OUT CONTINUING PROBLEMS


6. (C) The Ambassador responded by recalling our long
history of good bilateral relations, despite occasional
moments of friction, and our many current areas of
cooperation. She highlighted the Bilateral Dialogue, which
finally kicked off with the participation of various agencies
in November 2008, after GOE delay in responding to our
proposal. The Ambassador then made clear that events of the
last month (reftel) had harmed the perception of Ecuador in
the U.S., to an even greater extent than Correa's anti-U.S.
rhetoric in the preceding months had. She emphasized that
the absence to date of any U.S. reprisal for GOE actions did
not mean there would not be one if Washington so decided.
The Ambassador stated that she was not sure that Coordinating
Minister for Internal and External Security Miguel Carvajal
understood what the U.S. needed to continue supporting
specialized police units. She protested Carvajal's public
comments on March 3, again calling one of the expelled
Embassy officers the CIA Chief of Station and alleging that
he held the same role in other countries.


7. (C) Orbe rolled his eyes, saying he and Falconi had
spoken with Carvajal to remind him that only the President
and Foreign Minister should speak on foreign policy matters.
He argued that declaring an innocent Ecuadorian diplomat in
Washington persona non grata would be unfair. He also
continued to maintain that Ecuador was justified in its
actions. The Ambassador swiftly retorted that expelling the
U.S. Embassy officers was unjustifiable and that PNGing
another diplomat in response was diplomatic practice, and
therefore one option Washington was considering.


8. (C) The Ambassador lamented the consequences of the GOE's
actions. She pointed out that Ecuadorian police at the
moment are reluctant to exchange information with the Drug
Enforcement Administration and that the U.S. Southern Command
was no longer allowed to put its logo on projects it funds.
Orbe acknowledged that government officials at the working
level were afraid to cooperate with the U.S., but insisted
they should not be. On the logo issue, he had no specific
response, but noted that in his previous position at the
National Planning Secretariat, he had difficulties with USAID
not adhering to the Paris Declaration on development
assistance. The problem had only been cleared up to the
extent that USAID had said it could not conform and that U.S.
aid has proceeded.

OUR CALL FOR SMALL STEPS FORWARD


9. (C) The Ambassador emphasized that meetings with POTUS
were generally preceded by preparations at the working level,
and that we might need to start with small steps rather than
at the top. She suggested that securing the meetings Orbe
sought would be difficult, but assured Orbe she would report
his requests to Washington.


10. (C) The Ambassador asked if Orbe had any concrete ideas
for bilateral cooperation. He reiterated the GOE's desire
for a presidential-level meeting. The Ambassador then
suggested we should move forward in discussions with the MFA
on counter-narcotics cooperation under a gas-and-go model
once the Manta Forward Operating Location (FOL) closes. She
also informed Orbe that the Embassy would be meeting again
with the Defense Ministry to plan the FOL withdrawal. When
DG Salazar raised the working groups to prepare for a next
Bilateral Dialogue meeting, the Ambassador expressed a
willingness to move forward.

SERRANO PROTEST


11. (C) Advisor Albuja then informed the Ambassador that the
MFA would be sending an official note of protest in the case
of Nelson Serrano, an Ecuadorian-American found guilty of
murder and imprisoned in Florida. The subject of protest was
the role of U.S. officials in securing the deportation of
Serrano from Ecuador, which Albuja called contrary to the
Ecuadorian constitution. The note would include a request
for Serrano's return to Ecuador. He said the note would be
sent to fulfill the requirements of the Inter-American Court,
which had considered the case. Albuja said the GOE was
hoping to make a financial settlement with the family. The
Ambassador noted that the U.S. was unlikely to extradite
Serrano. All nodded as if they fully understood. The
Ambassador thanked Albuja for informing her in advance about
the note.

COMMENT


12. (C) We are struck by the MFA's lack of understanding of,
or refusal to acknowledge, the depth of damage to the
bilateral relationship caused by expelling our employees,
based on trumped up sensitivities. Virtually simultaneous to
our meeting with U/S Orbe, Foreign Minister Falconi was
giving a press conference on the U.S.-Ecuador relationship,
calling for a "solid and stable" relationship based on mutual
cooperation and respect, blaming the U.S. for unacceptable
interference, and expressing hope that things would "not get
more complicated." Falconi's comments, while his underlings
were giving us their Alice-in-Wonderland version of the
future bilateral relationship, is a continuation of the GOE's
refusal to engage in real dialogue. The Correa game plan
continues to be publicly scoring domestic political points,
while "making nice" with us in private.

HODGES

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