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### Viewing cable 08QUITO672, AMBASSADOR'S FAREWELL MEETINGS WITH CORREA, OTHER

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08QUITO672 | 2008-07-21 22:10 | 2010-12-17 21:09 | SECRET//NOFORN | Embassy Quito

`

    VZCZCXYZ0002
    OO RUEHWEB

    DE RUEHQT #0672/01 2032239
    ZNY SSSSS ZZH
    O 212239Z JUL 08
    FM AMEMBASSY QUITO
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 9163
    INFO RUEHBO/AMEMBASSY BOGOTA 7653
    RUEHBR/AMEMBASSY BRASILIA 3944
    RUEHCV/AMEMBASSY CARACAS 3107
    RUEHLP/AMEMBASSY LA PAZ JUL LIMA 2713
    RUEHGL/AMCONSUL GUAYAQUIL 3694
    RHEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC
    RHMFISS/HQ USSOUTHCOM MIAMI FL
    RHEFDIA/DIA WASHINGTON DC
    RHMFISS/CDR USSOUTHCOM MIAMI FL

` `

    S E C R E T QUITO 000672

    NOFORN
    SIPDIS

    E.O. 12958: DECL: 07/21/2028
    TAGS: PGOV PREL PHUM CVIS SNAR MASS ENRG EINV EC
    SUBJECT: AMBASSADOR'S FAREWELL MEETINGS WITH CORREA, OTHER
    GOE OFFICIALS

    REF: A. QUITO 616
    ¶B. QUITO 633

    Classified By: Ambassador Linda Jewell for reason 1.4 (D)

    ¶1. (C) Summary: The Ambassador had farewell meetings with
    President Correa, VP Moreno, and Government Minister
    Bustamante; attended a farewell event FM Salvador hosted in
    her honor; and received a farewell visit from Armed Forces
    Commander General Varela. She urged the GOE to return to the
    private sector the television channels and other properties
    it had seized, which Correa and Bustamante assured her they
    planned to do. The Ambassador expressed concern that the new
    GOE policy of not requiring visas for any nationality would
    allow many entrants then to travel illegally to the U.S.
    Other subjects were the GOE's change agenda, Machala Power,
    counternarcotics and military cooperation, and programs to
    assist the disabled. The Ambassador received a presidential
    award in recognition of her efforts to strengthen
    U.S.-Ecuadorian relations. End Summary

    Seizure of Isaias' Properties

    ¶2. (C) The Ambassador emphasized to both President Rafael
    Correa and Government Minister Fernando Bustamante in
    separate meetings on July 17 the importance of resolving the
    dispute over properties the GOE seized from Roberto and
    William Isaias, who are believed to have embezzled hundreds
    of millions of dollars in funds the GOE provided their
    failing bank and then fled to the United States (reftels).
    Both Correa and Bustamante acknowledged the Ambassador's
    concerns, agreeing that they did not have the skills to run
    the companies, and said that the GOE plans to sell the
    properties that are confirmed to be property of the Isaias
    family. They explained the need first to allow time for
    appeals so current owners can demonstrate where they obtained
    funds to purchase the properties; if they can show they are
    the legitimate owners and not just front people funneling
    profits back to the Isaias family, then the GOE will return
    the properties.

    ¶3. (C) The Ambassador particularly stressed that the two
    television channels need to be disposed of promptly. Correa
    said he understood the need to do so, noting that the GOE
    might give one of them to depositors who are owed funds by
    the failed Isaias-owned bank, Filanbanco. Correa expressed
    frustration that justice had not been done over the past ten
    years for so many Ecuadorians who lost their savings while
    the Isaias family profited, saying that impunity had
    prevailed for far too long.

    Visa Policy and Illegal Immigration

    ¶4. (C) The Ambassador expressed USG concern to Government
    Minister Bustamante about the GOE decision not to require
    visas for nationals of any country. Bustamante replied that
    he also was concerned about this aspect, but that Correa was
    unlikely to change his mind on the subject. He stated that
    it was not the GOE's intention to allow Ecuador to serve as a
    trampoline for those intending to immigrate to the United
    States. Bustamante asked that the USG inform him if we have
    specific information about the entry of any individuals who
    are intending to travel illegally to the United States.
    (Comment: We will follow up with Bustamante.)

    GOE Transformational Vision

    ¶5. (C) Correa said that many Ecuadorians were unable to
    understand the changes he was trying to bring about because
    they lack a sense of their responsibility to promote the
    common good and continue to promote narrow, personal agendas.
    Along with the usual frustration with the entrenched elite
    who refuse to acknowledge the injustice that has prevailed in
    Ecuador, he expressed disappointment over indigenous leaders
    who he said were acting like "caudillos" in manipulating
    their constituencies, the same sort of rent-seeking behavior
    common among the Ecuadorian elite. He mused philosophically
    about the greater success of Anglo-Saxon societies in
    development compared to Latin countries, attributing a large
    part of this difference to a sense of personal responsibility
    and an ability for self-criticism and correction that he

    feels is lacking in Ecuador. He reiterated his desire to
    maintain a positive relationship with the United States.

    ¶6. (C) Correa said he was anxious that the Constituent
    Assembly conclude. He noted that he had tried hard to get
    the Assembly (where the pro-government Proud and Sovereign
    Fatherland, called PAIS, holds the majority) to work on
    behalf of bigger principles. Nonetheless, many Assembly
    members' small personal agendas ended up getting into the
    constitutional text. Correa was furious about language that
    had been inserted at the last minute that he thought made no
    sense, such as a prohibition on genetically-modified
    organisms.

    ¶7. (S/NF) Bustamante described what the GOE is trying to
    accomplish as changing Ecuador from a post-colonial society,
    where the elite only cared about themselves and their
    families on their big haciendas (estates). He described what
    he saw as the extraordinary blindness of Ecuador's
    traditional ruling class not to care about the rest of the
    society, saying he was now in the government to try to ensure
    attention to the needs of the entire society. Bustamante
    pointed to the tremendous fear of change among the Ecuadorian
    elite, even if they are not actually being harmed, because
    they no longer feel they can manage the government. He
    suggested that they would only get over this fear with time,
    when they see that the Correa administration's actions do not
    adversely affect their interests. Bustamante expressed an
    awareness of the importance of avoiding an overly intrusive
    state, referring to the GOE's new wiretap program and the
    need to ensure advance judicial authorization.

    Business Relations, Counternarcotics and Military Cooperation

    ¶8. (C) The Ambassador thanked Correa for meeting with
    representatives of Machala Power and encouraged him to
    expeditiously resolve their lingering issues. (Note:
    Machala Power is a U.S. electricity company owed back
    payments by GOE entities; it would likely invest further if
    the GOE made the payments.) Correa assured her that it was a
    "win-win" proposition that had unfortunately dragged on too
    long. He noted that he had given his team a deadline to come
    up with a solution.

    ¶9. (C) The Ambassador raised with Bustamante the problems
    the embassy had with obtaining approval for entry of products
    that are destined to assist the GOE, such as vehicles for the
    police. While joking that perhaps the embassy should buy
    General Motors vehicles made in Ecuador, Bustamante took the
    problem seriously and offered his assistance.

    ¶10. (C) During a July 17 call by Armed Forces Commander
    General Fabian Varela, the Ambassador expressed concern that
    Defense Minister Ponce intended to reduce training programs
    and other cooperation with the U.S. military. Varela said
    that increasing military ties with other countries did not
    need to mean reducing cooperation with the U.S., and that,
    while he did not believe cooperation with the U.S. would in
    fact be diminished, if Ponce moved to limit ties with the
    U.S. military he would oppose it.

    Presidential Award and Assistance to Disabled

    ¶11. (SBU) As an indication of the President Correa's
    personal regard for the Ambassador and his appreciation of
    the importance of Ecuador's relationship with the United
    States, Correa decided to bestow on the Ambassador the
    National Order of Merit "Honorato Vasquez" at the level of
    the Great Cross. FM Maria Isabel Salvador presented the
    award in a July 16 ceremony attended by five GOE cabinet
    members, other senior Foreign Ministry officials, and
    representatives of the diplomatic corps. In offering the
    toast at the luncheon that followed, Coordinating Minister
    for Internal and External Security Gustavo Larrea emphasized
    Ecuador's friendship with the United States and highlighted
    our bilateral cooperation.

    ¶12. (C) Vice President Lenin Moreno expressed heartfelt
    appreciation to the Ambassador July 15 for USAID's work to
    improve the opportunities available to disabled Ecuadorians.
    He indicated a clear understanding of the importance of

    U.S.-Ecuador friendship and cooperation in this and many
    other fields.

    CDA Griffiths

`