Cable Viewer

Currently released so far... 11218 / 251,287

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 96 97 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/06
1986/05
1987/06
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/10 2001/11
2002/01 2002/02 2002/03 2002/04 2002/07 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne
Embassy Nicosia Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AF AM AJ ASEC AS AFIN AMGT AU AE AR ABLD AG AY AORC ASIG AEMR APER AMBASSADOR ASEAN AA AL ASUP ABUD AMED AX APECO AID AUC ASECKFRDCVISKIRFPHUMSMIGEG ADANA AFFAIRS AND AN ADCO ARM ATRN AECL AADP ACOA APEC AGRICULTURE ACS ADPM ASCH AMEX ACAO ANET AODE ARF ACBAQ APCS AMG AQ AMCHAMS AORG AGAO ADM AFSI AFSN AINF AIT ASEX AO ATFN AROC AFGHANISTAN AFU AER ALOW AC AZ AVERY AGMT
BA BRUSSELS BR BL BM BEXP BH BTIO BIDEN BO BT BC BU BY BX BG BK BF BBSR BMGT BTIU BE BD BWC BB BP BILAT
CA CW CH CO CONDOLEEZZA CR CASC CSW CVIS CPAS CMGT CS CI CU CJUS CY CDG CE CG CBW COUNTER CN CKGR COUNTERTERRORISM CODEL CWC CJAN CIA CD CLINTON CT CARSON CONS CB CM CFED CLMT CROS CNARC CIDA CBSA CIC CEUDA CHR CITT CAC CACM CVR CDC CAPC COPUOS CBC CBE COM CDB CAN COE COUNTRY CLEARANCE CACS CF CL CIS CTM CV CICTE
DR DEA DA DOMESTIC DHS DAO DCM DEPT DTRA DPRK DEFENSE DE DJ DISENGAGEMENT DOD DEAX DOE DK DS
ENRG EPET ETRD EFIS ECON EK EAID EUN ES EFIN EWWT ECIN EINV ETTC EAGR EC ELAB ECPS EN EG ELTN EAIR EPA ER EI EU EZ ET EIND EINVECONSENVCSJA ECONOMICS EXTERNAL ELN ELECTIONS EMIN EINN EFINECONCS ETRDEINVECINPGOVCS ENIV ECUN EINT ENGR ENNP EUR EAP EEPET ETRDEINVTINTCS ENVI EFTA ETRO ESENV ECINECONCS ENVR ECONOMY ECONOMIC EUMEM EAIDS ETRA ETRN EUREM EFIM EIAR EXIM ERD EAIG ETRC EXBS EINVEFIN ECIP EINDETRD EUC EREL ECA ENERG ENGY ECONCS EINVETC ECONEFIN ESA ETC ETRDECONWTOCS EUNCH
FI FR FREEDOM FTAA FARC FAO FJ FMLN FBI FOR FTA FOREIGN FINANCE FO FISO FDA FAC FOI FM FINR
GG GT GM GV GH GOI GA GTIP GR GZ GE GCC GY GOV GAERC GANGS GL GLOBAL GERARD GF GAZA GTMO
HO HA HK HUMAN HU HR HILLARY HSTC HUMOR HEBRON HI HURI HYMPSK
IWC IR IZ ICAO IV IRS IC IS IT IZPREL IRAQI IO IN IAEA ID ITPHUM ITPGOV ITALIAN IPR INRB IMO ITALY ICRC INTERPOL IQ ICTY INTELSAT IEFIN IA INR IRC IACI ITRA IL ICJ INTERNAL ISRAELI INMARSAT ITU ILC IBRD IMF ILO IDP ITF IBET IGAD IEA IAHRC ICTR IDA IIP INRA INRO IRAJ IF
JP JA JO JOSEPH JOHNNIE JM JUS JAMES
KSCA KNNP KIPR KOLY KS KPAO KMPI KDEM KZ KG KJUS KRVC KICC KTIA KISL KTIP KCRM KWMN KMDR KVPR KV KHLS KU KTFN KIRF KR KPKO KTDB KIRC KGHG KFRD KCOR KE KSUM KPAL KSEP KSTC KGIC KOMC KFLO KAWC KUNR KNPP KIDE KNEI KBIO KPRP KN KWBG KMCA KCIP KTEX KGIT KNSD KCFE KLIG KFLU KBCT KOMS KBTS KACT KCRS KGCC KDRG KWMM KAWK KHIV KSPR KRAD KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KOCI KSTH KPAI KHSA KTLA KO KFSC KVIR KX KFTFN KHDP KPLS KSAF KMFO KRCM KCSY KSAC KPWR KTRD KID KWNM KMRS KICA KRIM KSEO KPOA KCHG KREC KOM KRGY KCMR KSCI KFIN KVRP KPAONZ KCGC KNAR KMOC KWAC KMIG KSEC KIFR KDEMAF KNUC KPIN KPRV KBTR KERG KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KNUP KTER KDDG KPAK KREL KCOM KNNPMNUC KRFD KHUM KDEV KCFC KWWMN KTBT KWMNCS KJUST
LE LY LU LTTE LI LO LH LG LAB LA LABOR LOG LT
MNUC MARR MASS MCAP MIL MO MOPS MU MX MEPI MR MDC MPOS MEETINGS MD MTCRE MK MUCN MY MASC MRCRE ML MA MEPP MAR MAPP MP MT MAS MTS MLS MI MERCOSUR MC MV MEDIA MILI MEPN MG MW MIK MTCR MARAD MZ MOPPS MAPS MCC MASSMNUC MQADHAFI MTRE
NZ NL NATO NO NAFTA NDP NIPP NP NS NPT NU NI NATIONAL NPG NGO NG NK NA NSSP NRR NSG NSC NPA NORAD NT NW NEW NH NSF NV NR NE NSFO NC NAR NASA NZUS
OTRA OEXC OIIP OVIP OAS OREP OSCE OPRC ODIP OSAC OPIC OPDC OFDP OIE OECD OPCW OVP OPAD OFDA OIC OSCI OMIG OBSP ON OCS OCII OHUM OTR OFFICIALS
PGOV PARM PREL PHUM PTER PINR PK PREF POL PINS PSOE PAK PBTS PHSA PAO PM PF PNAT PE POLITICS PARMS PBIO PSI POLINT POLITICAL PARTIES PL PA PROP PO PGOVLO PORG PGOVE PLN PINF PRELP PAS PPA PRGOV PUNE PG PALESTINIAN POLICY PROG PDEM PREFA PDOV PCI PRAM PTBS PSA POSTS PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PGIV PHUMPGOV PCUL PSEPC PREO PAHO PMIL PNG PP PS PHUH PEPR PINT PU PECON POGOV PINL PKFK PY PFOR PHALANAGE PARTY PMAR PHUMPREL PHUS PRL PGOC PNR PGGV PROV PTERE PGOF PHUMBA PEL POV
QA
RICE RUPREL RU RS RIGHTS RO RW RSP RP REACTION REPORT RCMP RSO RF RFE RM RIGHTSPOLMIL ROBERT REGION
SENV SCUL SNAR SOCI SW SMIG SP SZ SA SY SENVKGHG SU SF SAN SR SO SHUM SYR SAARC SL SI SNARCS SWE SN SARS SPCE SNARIZ SCRS SC SIPDIS SEN SNARN SPCVIS STEINBERG SG SIPRS SH SOFA SANC SK ST SEVN
TPHY TW TC TX TU TI TN TS TT TRGY TO TH TBIO TSPL TIP TP TERRORISM TURKEY TSPA TD TZ TFIN TNGD TINT THPY TBID TF TL TV TAGS TK TR TRSY
UNSC UZ USEU US UN UK UP USTR UNGA UNMIK USUN UNESCO UNHRC UY UNO UG UNDC UAE UNAUS UNDESCO UNHCR UNEP UNCHC UNFICYP UNCHR USNC UNIDROIT UNCSD UNDP UNC UNODC USOAS UNPUOS UNCND USPS UNICEF UV UNCHS UNVIE UE USAID
VZ VT VE VTPREL VM VI VAT VN
WS WTRO WITH WHO WTRQ WBG WI WTO WHA WMD WMO WIPO WHTI WFP WB WWARD WA WEU WZ
XM XV XF XR XA XK XH XL XS XG XW XY XE XT XD XZ XX XTAG XQ XB XU XI XC
YM YI YMCS YE
ZR ZI ZANU ZU ZO ZP ZB ZL ZK ZF ZEALAND ZN ZA ZOELLICK ZJ

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 09QUITO204, ECUADOR'S MFA PITCHES YASUNI ITT CONSERVATION PROJECT TO

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09QUITO204.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09QUITO204 | 2009-03-24 19:07 | 2011-04-20 18:06 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Quito
Appears in these articles: http://www.eluniverso.com/2011/04/19/1/1355/cable-198620.html

`

    VZCZCXYZ0006
    RR RUEHWEB

    DE RUEHQT #0204/01 0831915
    ZNR UUUUU ZZH
    R 241915Z MAR 09
    FM AMEMBASSY QUITO
    TO RUEHC/SECSTATE WASHDC 0192
    INFO RUEHBO/AMEMBASSY BOGOTA 8056
    RUEHCV/AMEMBASSY CARACAS 3468
    RUEHLP/AMEMBASSY LA PAZ MAR LIMA 3116
    RUEHBR/AMEMBASSY BRASILIA 4118
    RUEHGL/AMCONSUL GUAYAQUIL 4211
    RUEATRS/DEPT OF TREASURY WASHDC
    RUEHRC/USDA FAS WASHDC 0630
    RUCPDOC/DEPT OF COMMERCE WASHDC

` `

    UNCLAS QUITO 000204

    SENSITIVE
    SIPDIS

    E.O. 12958: N/A
    TAGS: EPET PREL SENV ECON EC
    SUBJECT: ECUADOR'S MFA PITCHES YASUNI ITT CONSERVATION PROJECT TO
    WESTERN DIPLOMATS

    Ref.  A) 08 Quito 1497

    ¶1.  (SBU) Summary.  On March 5, 2009 the...

    id: 198620
    date: 3/24/2009 19:15
    refid: 09QUITO204
    origin: Embassy Quito
    classification: UNCLASSIFIED//FOR OFFICIAL USE ONLY
    destination: 08QUITO1497
    header:
    VZCZCXYZ0006
    RR RUEHWEB

    DE RUEHQT #0204/01 0831915
    ZNR UUUUU ZZH
    R 241915Z MAR 09
    FM AMEMBASSY QUITO
    TO RUEHC/SECSTATE WASHDC 0192
    INFO RUEHBO/AMEMBASSY BOGOTA 8056
    RUEHCV/AMEMBASSY CARACAS 3468
    RUEHLP/AMEMBASSY LA PAZ MAR LIMA 3116
    RUEHBR/AMEMBASSY BRASILIA 4118
    RUEHGL/AMCONSUL GUAYAQUIL 4211
    RUEATRS/DEPT OF TREASURY WASHDC
    RUEHRC/USDA FAS WASHDC 0630
    RUCPDOC/DEPT OF COMMERCE WASHDC

    ----------------- header ends ----------------

    UNCLAS QUITO 000204

    SENSITIVE
    SIPDIS

    E.O. 12958: N/A
    TAGS: EPET PREL SENV ECON EC
    SUBJECT: ECUADOR'S MFA PITCHES YASUNI ITT CONSERVATION PROJECT TO
    WESTERN DIPLOMATS

    Ref.  A) 08 Quito 1497

    ¶1.  (SBU) Summary.  On March 5, 2009 the Ecuadorian Foreign Ministry presented a revised proposal to forego development of oil fields in the environmentally sensitive Yasuni Park in exchange for
    international compensation.  The new initiative focuses on
    compensation based on carbon credits rather than the value of
    foregone oil production.  End Summary.

    A "Revolutionary" Proposal
    --------------------------

    ¶2.  (U) Foreign Minister Fander Falconi presided over the March 5
    meeting, and former Foreign Minister Francisco Carrion and former
    Quito Mayor Roque Sevilla briefed Western diplomats on the proposal.
     The meeting was attended by Ambassadors from several European
    countries.  Falconi presented the Yasuni initiative as a
    "revolutionary" idea in which Ecuador would make development
    sacrifices on behalf of the global community.  The plan was first
    presented in June 2007 by President Rafael Correa and was initially
    called "Keeping Oil in the Ground" (reftel a).

    ¶3.  (U) The Ishpingo-Tambococha-Tiputini (ITT) field constitutes an
    estimated 20% of Ecuador's total oil reserves.  It is located within
    Ecuador's Yasuni National Park, a UNESCO Biosphere Reserve in
    Amazonian rainforest with exceptional biodiversity, intact and
    contiguous habitat, and traditional indigenous populations.  The
    park is located within Ecuador's "Untouchable Zone," a 750,000
    hectare area with no road, infrastructure, hydroelectric, oil, or
    mining development.  This allows "uncontacted" indigenous people in
    the area to continue their traditional lifestyle without
    disturbance.  The GOE's original plan called for the international
    community to compensate Ecuador for half the value of the petroleum
    in the ITT field, which, at the time, was about $1.75 billion.  In
    exchange, Ecuador would agree not to exploit the field, thus
    protecting the biodiversity of the park by preventing deforestation,
    mitigating climate change by reducing carbon pollution from
    deforestation and from combustion of the oil, and supporting the
    indigenous communities in their traditional way of life.

    ¶4.  (SBU) The March 5 meeting was to provide an update on the
    initiative and present a modified proposal.  The key difference is
    that the GOE now proposes using a carbon-pricing mechanism to value
    the reserves.  Sevilla said that exploiting the ITT reserves would
    release 410 million metric tons of CO2 into the atmosphere.  The
    mechanism he proposed for financing the initiative was modeled after
    the Kyoto protocol, and would consist of the GOE issuing
    "Certificates of Guarantee Yasuni" (CGYs), which would be classified
    as carbon bonds ("certified carbon credits") by the signatory
    countries for Annex 1 of the Kyoto Protocol.  Companies and
    investors would be able to purchase CGYs like other carbon credits
    through the European Trading System (ETS) and would register these
    purchases with participating governments.  The Yasuni initiative
    would also solicit voluntary contributions from supporting
    governments and individual contributors.  Noting the success that
    the Obama campaign had in raising large sums through a broad network of small donors, Sevilla presented a scenario in which individuals could purchase, either online or through cell phone transactions, "symbolic" barrels of oil that would remain in the ground.  Proceeds from the sales of CGYs would be placed in an international trust, whose directors would have a fiduciary responsibility to ensure that the funds are used to advance development goals.  The directors
    would only be able to spend interest from the trust, meaning that
    the benefits of the initiative would theoretically extend to
    perpetuity.

    Valuing the Reserves
    --------------------

    ¶5.  (SBU) The CGY bonds would be issued over a ten-year period, and
    the total amount issued would be for the full value of the 410
    million metric tons of carbon at ETS prices.  The GOE's estimates
    based upon carbon pricing have a value of $11.75 billion at October
    2008 ETS carbon prices ($29 per metric ton) and $7.9 billion at
    December 2008 prices ($15 per metric ton).  If based upon oil
    prices, the 820 million barrels in the ITT reserves have a
    GOE-estimated net present value (NPV) of $11.6 billion at the
    October 2008 West Texas Intermediate (WTI) price of $75/barrel, and
    an NPV of $3.3 billion at the December WTI price of $49/barrel.
    (Note: The ITT fields contain heavy oil.  Current Ecuadorian oil
    production sells at a discount from the WTI reference price, and the
    ITT production would likely sell at even a larger discount, so using
     the WTI reference price likely overstates the value of the oil.  End
    Note.)

    Use of the Proceeds
    -------------------

    ¶6.  (U) There are five proposed objectives for the use of funds
    raised through this initiative: 1) Protection of 40 "Natural Areas"
    in Ecuador, which contain exceptional levels of biodiversity and
    several indigenous communities.  2) Natural regeneration and
    reforestation of 2.3 million hectares.  3) Upgrading Ecuador's
    energy network to make it more efficient.  4) Subsidies to encourage
    businesses and homes to convert to renewable sources of energy.  5)
    Financing sustainable development initiatives, including the
    exploitation of renewable energy resources.  Some of these programs
    might themselves be marketable for carbon credits or future
    financing for Reducing Emissions from Deforestation and Forest
    Degradation (REDD).

    State of the Project
    --------------------

    ¶7. (U) The Yasuni initiative has received backing from the
    Governments of Germany ($300,000) and Spain ($200,000).  Sevilla
    said the GOE was using these funds to perform studies on the
    project, which are to be completed in March 2009.  These studies
    will be presented to the German government, which will evaluate the
    initiative.  If it approves of the legal, political, and technical
    aspects, the German government will promote the certification of CGY
    bonds as carbon credits to other countries in the EU and the OECD.
    If an "important number" of European countries back the initiative,
    the GOE will begin issuing CGYs.  FM Falconi emphasized that this
    initiative still had strong backing from Ecuadorian President
    Correa, and suggested that it had also attracted a broad range of
    support from European governments, politicians, NGOs, and
    celebrities.

    Comment
    -------

    ¶8. (SBU) There is little doubt that the Yasuni Reserve contains
    remarkable biodiversity and is worth preserving.  However, there are
    several aspects in the proposal that are problematic, including:
    the valuation of the project, using either the oil or carbon credit
    benchmarks; still undefined post-Kyoto rules for different forest
    uses; lack of clarity on the guarantees that the GOE will provide;
    continued pressure to develop the petroleum reserves; and likely
    Ecuadorian resistance to an internationally managed fund because of
    sovereignty concerns.  In addition, within Ecuador there are many
    other areas that equal Yasuni in the scope of their biodiversity,
    and these funds could probably be applied even more effectively in
    protecting these areas.

    Hodges

    =======================CABLE ENDS============================

`