Secretary Clinton's June 12, 2009 conversation

C O N F I D E N T I A L STATE 062142

SIPDIS

E.O. 12958: DECL: 06/12/2012
TAGS: OVIP CLINTON HILLARY PREL PREF ETRD MARR
SNAR, SENV, CO, EC
SUBJECT: Secretary Clinton's June 12, 2009 conversation
with Ecuadorian Foreign Minister Fander Falconi


1. Classified by WHA Assistant Secretary Thomas Shannon.
Reason: 1.4 (d)


2. (U) 06-12-2009; 11:45 am; Washington D.C., United
States.


3. (U) Participants:

U.S.
The Secretary
Chris McMullen, WHA/DAS
Ian Kelly, Press Spokesperson
Jake Sullivan, Deputy Chief of Staff
Les Johnston (Bureau Notetaker)
Patsy Arizu (Interpreter)

ECUADOR
Foreign Minister Fander Falconi
Minister Coordinator for Internal and External Security
Miguel Carvajal
Ambassador Luis Gallegos
DCM Juan Carlos Castrillon
Political Counselor Isabel Albornoz
Marco Albuja, Legal Advisor to the Foreign Minister
Lenyn Muela, Communications Advisor to the Foreign
Minister


4. (C) SUMMARY. On June 12, 2009, the Secretary met
with Ecuadorian Foreign Minister Fander Falconi, as well
as Ecuadorian Coordinating Minister for Internal and
External Security Miguel Carvajal. FM Falconi expressed
a desire to broaden bilateral relations beyond
counternarcotics and security matters. He suggested
Ecuador and the United States use the mechanism of the
already existing Bilateral Dialogue (BD) as a means for
enhanced engagement. He proposed a new "Trade for
Development" agreement between the United States and
Ecuador, requested support for Ecuador's Yasuni
environmental conservation program, and commented that
recent difficulties in security cooperation could be
overcome by a new cooperation agreement. Minister
Carvajal briefed the Secretary on the state of illegally
armed groups (IAGs) and refugees along Ecuador's border
with Colombia. The Secretary expressed support for the
BD as a means of enhancing bilateral relations and a
venue to discuss the issues raised during the meeting.
She urged the GOE to cooperate with Embassy Quito to
reestablish cooperation in support of vetted police
units. END SUMMARY.

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INVITATION FOR PRESIDENT OBAMA TO ATTEND PRESIDENT
CORREA'S AUGUST 10 INAUGARATION
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5. (C) After welcoming the Ecuadorian delegation,
Secretary Clinton told Minister Falconi that the United
States sought a productive and constructive relationship
with Ecuador. She asked for an open discussion in which
Ecuador would outline its goals and expectations. She
acknowledged the difficult relations of recent years and
said that the USG hoped to build upon the Secretary's
and the President's meetings with Ecuadorian officials
in Trinidad and Tobago at the Summit of the Americas
(SOA) in April. FM Falconi warmly responded that his
delegation was pleased to meet the Secretary, that they
came with an open and positive agenda, and that they
brought greetings from President Correa. Falconi said
he would like to formally invite President Obama to
attend President Correa's swearing in ceremony on August

10. He noted Correa was recently reelected with 52
percent of the vote, and both the President and the
Secretary would be welcome at the inauguration.

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A DESIRE TO BROADEN RELATIONS THROUGH THE BILATERAL
DIALOGUE
-------------- --------------


6. (C) Falconi said Ecuador would like to broaden the
bilateral agenda with the United States by moving beyond
what he characterized as an excessive focus on
counternarcotics and security issues. He noted that a
mechanism for such engagement already existed in the
Bilateral Dialogue (BD) between both countries. Falconi
stressed that development was a principal goal for the
GOE, especially as President Correa was elected with a
mandate to further economic development. He noted that
sovereignty and control over Ecuador's territorial
boundaries were also key elements of Ecuador's foreign
policy.

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GOE PROPOSES "TRADE FOR DEVELOPMENT" AGREEMENT
-------------- -


7. (C) After acknowledging that 45 percent of Ecuadorian
exports are to the United States, Falconi said the GOE
sought a new trade policy with the United States. He
noted Ecuador's exports currently entered the United
States under the Andean Trade Preference Act (ATPA),
which was linked to counternarcotics efforts, and was
renewed for short time intervals such as one year. He
suggested one item for discussion within the BD
framework would be to extend the duration of ATPA
benefits. He further suggested what he referred to as a
new type of trade agreement with the United States that
would be called a "Trade Agreement for Development"
(TAD). [Note: the Ecuadorian delegation also provided a
letter to the Secretary stating the GOE's interest in
pursuing such a trade agreement with the United States.
End Note.] Falconi briefly alluded to a discussion
between President Obama and President Correa at the SOA
in which the Ecuadorians mentioned a trade agreement
with the United States would be of strategic importance.

-------------- --------------
YASUNI INITIATIVE, SECURITY COOPERATION, MIGRANT ISSUES
-------------- --------------
-


8. (C) Falconi commented on what he called tremendous
opportunities for cooperation on environmental issues as
well. He raised the GOE's Yasuni initiative, in which
Ecuador would forgo oil development in the
environmentally sensitive Yasuni Park in exchange for
billions of dollars from the international community.
He said preservation of this region is a priority for
the GOE and that the government of Spain as well as the
German parliament had shown an interest. He did not
state it explicitly, but Falconi seemed to be seeking
U.S. support for the Yasuni initiative.


9. (C) Falconi stated the United States and Ecuador
enjoyed "magnificent cooperation" on security matters.
Referring to the recent difficulties between the GOE and
Embassy Quito over vetted police units, he said the GOE
was working on an agreement with Post that met
Ecuadorian constitutional and legislative obligations,
was consistent with Ecuador's development plans, and was
fully transparent. He said such an agreement would be
the best way to "address the small problem earlier this
year."


10. (C) Falconi commented on another GOE priority,
migrant rights. Stating that 29 percent of Ecuador's
population had departed the country since 1999 for the
United States, the United Kingdom, Spain, and Italy,
Falconi suggested that "we could work jointly on the
rights of migrants to be regularized." He again
stressed that the Bilateral Dialogue would be an
appropriate forum for this discussion, and urged that a
date be set for the next meeting.

-------------- --------------
SECRETARY EXPRESSES SUPPORT FOR THE BILATERAL DIALOGUE
AND URGES PROGRESS ON SPECIAL VETTED POLICE UNITS
-------------- --------------


11. (C) The Secretary responded that the number and
depth of issues raised by Minister Falconi required
another meeting of the BD. She said such matters as
trade, security, and migration all called for special
attention. She said she would like both sides to work
towards a specific date for the next BD, but a date that
provided adequate time to prepare properly for the next
meeting. The Secretary said the GOE's TAD proposal was
intriguing. She noted that the EU had pursued such
trade agreements, and while the United States had never
developed such an agreement, it was of interest. On the
Yasuni Initiative, the Secretary responded that this was
a very creative idea and suggested Ecuador consider
presenting the concept at the upcoming climate change
conference in Copenhagen as a place to seek credit and
support for the program.


12. (C) The Secretary thanked the Ecuadorians for their
hard work fighting narcotics trafficking along the
northern border, as well as confronting the FARC and
other IAGs. She said she was hopeful that both sides
could reach an agreement on security cooperation that
respects Ecuadorian sovereignty and brings our security
forces closer. Referring to the recent dispute between
the GOE and Embassy Quito over vetted police units, she
said she hoped Ecuador would reach an agreement that
would allow support for the special police units to
continue.


13. (C) Returning to the BD, the Secretary said both
sides should work to determine the subjects for the next
BD meeting, observing: "We have a lot to talk about in
our bilateral dialogue." She noted that she would pass
on to President Obama the GOE's invitation to attend
Correa's August 10 inauguration and that the United
States would send a high level delegation that reflected
the significance the United States placed on its
relationship with Ecuador.

-------------- --
MINISTER CARVAJAL BRIEFS ON THE NORTHERN BORDER
-------------- --


14. (C) After greeting the Secretary and expressing his
admiration for both her and President Clinton, Minister
Carvajal spoke about security matters. He stated the
GOE is developing a security cooperation agreement with
Embassy Quito it planned to complete within the next 30
days. This "protocol of procedures" would help address
the difficulties that had arisen with respect to jointly
vetted police units. Carvajal asserted that Ecuador
maintained a vigilant fight against narcotics
trafficking and had zero tolerance for illegal armed
groups (IAGs) within Ecuador's borders. He said, "we
are the victim of the internal conflict in Colombia."


15. (C) Carvajal provided the Secretary several maps of
the northern border, and elaborated Ecuador's
perspective of border issues. He highlighted the large
presence of FARC and other IAGs along the border and
within Colombia, and stressed the difficulties imposed
on Ecuador by an estimated 130,000 Colombian refugees in
northern Ecuador. He noted that the GOE was working
with the international community, particularly the UN
High Commissioner for Refugees (UNHCR),to register
displaced Colombians and guarantee them their rights.
He also contrasted Ecuador's 7,000 forces deployed along
the border with what he said were significantly fewer
numbers on the Colombian side. In answer to a question
from the Secretary asking if the GOE considered Colombia
to have too few troops on the border, Carvajal responded
that, without a doubt, the Colombians lacked troops and
did not have control of the border. He urged greater
international cooperation and recognition for the
problems Ecuador faced in this region.


16. (C) Regarding relations with Colombia, Carvajal said
the problem was more than just the March 1, 2008 bombing
incident that destroyed a FARC camp and killed FARC
leader Raul Reyes. He said the Government of Colombia
(GOC) falsely asserted links between the GOE and IAGs.
He added that, despite a May 2008 agreement for the GOC
and GOE to share actionable intelligence against IAGs in
Ecuador, the GOE had received no information from the
GOC, and this was "just a game."


17. (C) The Secretary thanked Minister Carvajal for his
useful information and said both countries should
discuss security matters with an eye towards seeing
whether the United States might help with Ecuador's
communications with Colombia on security-related issues.

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WRAP UP
--------------


18. (C) In answer to a question from the Secretary,
Ambassador Gallegos noted that the Ecuadorian delegation
had met with Congressman McGovern and other members of
Congress, Dan Restrepo at the NSC, and representatives
from several think tanks. Gallegos also suggested that
President Obama invite President Correa to the United
States. The Secretary concluded that both sides would
work on the BD and include all the issues discussed in
the meeting at the next BD event.
CLINTON