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### Viewing cable 05QUITO1191, WELCOME TO ECUADOR, CODEL SHAW

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05QUITO1191 | 2005-05-23 17:05 | 2011-05-02 00:12 | UNCLASSIFIED | Embassy Quito

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 02 QUITO 001191

    SIPDIS

    E.O. 12958: N/A
    TAGS: PGOV ECON SENV EC
    SUBJECT: WELCOME TO ECUADOR, CODEL SHAW

    ¶1. The U.S. Mission in Ecuador extends a warm welcome to the
    Honorable E. Clay Shaw, Nancy L. Johnson, John M. Spratt, Sam
    Johnson, Bill Archer, Ed Pastor and spouses.  You are coming
    to one of the most environmentally diverse and spectacular
    countries on Earth.   You will experience the diversity of
    the Andean highlands as well as the Galapagos Islands.  The
    Nature Conservancy (TNC) will be guiding your trip, however,
    the Embassy stands by to provide the support necessary to
    ensure your trip is an informative and productive one.  We
    are grateful that you are coming in order to highlight the
    importance of conservation in one of the most environmentally
    rich countries of the world.

    Your Environmental Program
    --------------------------

    ¶2.  You will arrive in Quito late in the evening.  The
    following day TNC will take you to the 300-plus year old
    Hacienda Zuleta to discuss the importance of Ecuador and
    introduce TNC,s strategies.  You will overnight at Zuleta,
    and the next day you will visit the Condor Biosphere Reserve.
     The Condor Bioreserve (named after the planet,s largest
    flying bird and Ecuador,s national symbol), in the heart of
    the Kichwa indigenous community, presents a unique
    opportunity to experience diverse vegetation, Andean forests,
    bird watching, and local culture.

    ¶3. USAID has formed an alliance with TNC, the Municipality of
    Quito, The Quito Water Fund (FONAG) and the Ministry of the
    Environment to conserve the Condor BioReserve, half of which
    is comprised of five protected areas of the Condor BioReserve
    (Cayambe-Coca, Antisana, Sumaco-Napo Galeras, Cotopaxi and
    Llanganates National Parks).  These protected areas provide
    70% of the water for the city of Quito and conserve the
    Tropical Andes Ecoregion, the world,s richest.

    ¶4. The main threats are seasonal burning of the pramo (or
    the highland areas) for pastureland, clearing for
    agriculture, environmental consequences of infrastructure
    projects including roads, dams, pipelines, and the same
    infrastructure that provides water to the City. You will
    overnight in Papallacta at approximately 11,000 ft, known for
    its hot springs.

    ¶5. The following day you will return to Quito (at
    approximately 9,500 feet, it is the second highest capital in
    the world) for a tour of the city and meetings with the Mayor
    of Quito, Paco Moncayo, and other local representatives.
    That night, U.S. Embassy officials will join you, TNC, Quito
    officials and representatives from other NGOs for an intimate
    discussion of environmental matters in Ecuador.

    ¶6. After your highland experience ends, you will proceed to
    the Galapagos Islands to experience a rare and unusual
    ecosystem.  In the Galapagos, you will discuss conservation
    with TNC,s representative.

    ¶7. Over the past five years, the USG has given through USAID
    some $9 million to Ecuador to support conservation in the
    Galapagos.  While no previous Ecuadorian administration had
    been particularly interested in Galapagos conservation, they
    did at least maintain stability in the Galapagos National
    Park.  The main threats to the Galapagos are political
    instability in the national park system, unsustainable use of
    the park,s natural resources by fishermen, and illegal
    immigration to the islands.  The USG provides aid to the
    Galapagos through various channels.  The bulk of the aid is
    channeled through USAID.

    ¶8. During your stay in the Galapagos, you will visit a
    variety of islands, experiencing a panorama of both flora and
    fauna.  After visiting the islands, you will meet with
    scientists from the Charles Darwin Research Station.  From
    the Galapagos, you will return to Quito in transit to the U.S.

    The Hand of Man on the Environment
    ----------------------------------

    ¶9. In terms of natural resources, Ecuador is an extremely
    rich country.  It may have more biological diversity per area
    than any other nation on earth.  Much of this is concentrated
    in the Tropical Andes, the biologically richest region on the
    planet.  In marine environments, the conservation priority is
    the 133,000 km2 Galapagos Marine Reserve, the world,s second
    largest protected marine area.
    ¶10. The potential for Ecuadorians to benefit from natural
    areas is enormous.  In 2004, tourism totaled $367 million,
    and most international tourists came to visit a protected
    area.  Watershed management is key to providing water for
    hydropower, which accounts for 60% of the countries nations,
    electricity, for personal and industrial consumption, and for
    agriculture.

    ¶11. Unfortunately, Ecuador suffers the second highest rate of
    deforestation among South American countries.  The fall of
    Gutierrez and the succession of Palacio as President have
    brought no relief to the environmental situation in Ecuador.
    Experts agree that the environmental area - which is
    typically not a priority during calm times - has suffered
    particular neglect and instability.  Illegal logging,
    overexploitation of the Galapagos, and weak institutions top
    most experts, list of concerns.

    ¶12. Ecuador has established an impressive park system, which
    covers 18% of the mainland plus 95% of the Galapagos.
    Unfortunately, mainland parks are significantly under funded,
    and in some cases one person is responsible for as many as
    200,000 acres. In the Galapagos, monitoring and enforcement
    has been severely undercut by disputes between the national
    park authorities and fishermen allied with local politicians.

    Political Considerations
    ------------------------

    ¶13. Ecuador is highly unstable politically, with seven
    presidents in the past nine years.  None of the last three
    democratically elected presidents served their term.
    Ex-president Lucio Gutierrez was the most recent to fall to
    popular uprisings, on April 20.  His vice president, Alfredo
    Palacio, succeeded him after Congress declared Gutierrez to
    have "abandoned" his constitutional responsibilities.  Some
    Ecuadorians criticized the USG for not immediately
    "recognizing" the Palacio administration.  Relations with the
    Government of Ecuador were never broken, however, and
    continue to be strong.  Given the uncertainty surrounding the
    recent change of government, it is appropriate that your
    visit maintain a low political profile.  We suggest you keep
    the focus on environmental issues, which are of great concern
    to this Mission.

    Economic Situation
    ------------------

    ¶14. Blessed with substantial petroleum reserves, excellent
    soil and perfect climate, Ecuador is a rich country with a
    poor population.  Endemic corruption, bad economic policies
    and political instability are to blame, resulting in 25 years
    of stagnant wages and a 70 percent poverty rate.  Despite
    coffers swelled by rising oil revenues, government
    expenditures never approach meeting the population,s needs.
    Many migrate, others take up illegal trade, especially in the
    border areas near Colombia.  We are currently negotiating a
    free trade agreement with Ecuador and Andean neighbors Peru
    and Colombia.  A successful FTA could stimulate job creation
    that helps reduce these problems.

    Chacon

`