Cable Viewer

Currently released so far... 12566 / 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 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/08 2011/05/09 2011/05/10 2011/05/11 2011/05/12 2011/05/13 2011/05/14 2011/05/15

### 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 1992/06 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/09 2001/10 2001/11
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11
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 Consulate Fukuoka
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 Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples Consulate Naha
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 Sapporo 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
AR AF ASEC AORC AU AMGT AADP AMBASSADOR AS AEMR AFIN AJ AM AFFAIRS ASEAN AODE APEC AE ABLD ACBAQ APECO AFSI AFSN AY AO ABUD AG AGAO AROC AC APER AMED ATRN ADPM ADCO ASIG AL ASUP ARF AUC ASEX AER AVERY AGRICULTURE ACOA ASCH AA AFU AID ALOW AINF AMG ASECKFRDCVISKIRFPHUMSMIGEG AORL AIT ANET ADM AN AMCHAMS ACS APCS ADANA AECL ACAO AORG AGR ACABQ AGMT AX AMEX AFGHANISTAN AZ AND ARM AQ ATFN
BR BA BEXP BU BY BM BBSR BK BL BO BRUSSELS BG BB BD BTIO BIDEN BP BE BH BX BF BT BWC BN BTIU BILAT BC BMGT
CI CU CA CVIS CH CO CS CASC CM CMGT CLINTON CT CWC CJAN CARICOM CB CE CN CONDOLEEZZA CG CW CPAS CACS CY CFED CSW CIDA CIC CITT CBW CONS CDG CD CHR CACM CDB COE CDC CR CF CJUS CTM CODEL CLMT CBC CAN COUNTERTERRORISM CAC COUNTER CV CNARC COM CROS CIA COPUOS CIS CARSON CTR CBSA CEUDA CICTE COUNTRY CBE CAPC CL CKGR CVR CITEL CLEARANCE
DJ DR DISENGAGEMENT DE DA DOMESTIC DEA DOD DOE DTRA DS DEFENSE DHS DO DAO DCM DEAX DK DPRK DEPT
ECA EU ENRG EPET ETTC ETRD ELAB EC ECON EFIN EG EINV ES EAIR EAID EFIS ELTN EWWT EAGR EIND EUN ECIN ER ET ELECTIONS EXTERNAL EMIN ECPS ETRDEINVECINPGOVCS ENIV ENGR EI ECUN EFTA ENGY ECONOMICS EN EIAR EINDETRD EUR EZ EREL ECONEFIN EINT EURN EDU ETRDEINVTINTCS ECIP EFIM EAIDS EK EPA ENVR EINVETC ECONCS ECONOMIC ELN EUMEM ETRA ESA ECINECONCS EAIG ETRO EUREM ESENV ETRC ENVI EINVECONSENVCSJA ENNP EEPET EUC ENERG EUNCH EXIM ERD ERNG EFINECONCS ETRN EINVEFIN ETRDECONWTOCS ETC EAP ECONOMY EINN EXBS
FTAA FR FAO FI FAC FOI FREEDOM FJ FMLN FARC FDA FTA FBI FM FOREIGN FO FISO FOR FAS FINR FINANCE
GM GT GG GOI GZ GAZA GR GAERC GV GCC GY GA GOV GE GLOBAL GH GTIP GERARD GANGS GTMO GL GF
HO HILLARY HK HR HA HURI HU HUMAN HYMPSK HSTC HEBRON HUMOR HI
IIP IC IR IAEA IT ICAO IN IAHRC IZ IS INTERNAL ISRAELI IMF IBRD IWC INTERPOL IO ISLAMISTS ITALY ITALIAN IRAQI ILO IPR IV IRS INRB IMO ID IZPREL IRAJ ICTY ICRC ITF IQ ILC ITU IF ITPHUM IL ISRAEL IACI INMARSAT ICTR ICJ IEFIN INTELSAT INDO IA INRA INRO IDP IRC ITRA IDA IGAD IBET ITPGOV INR IEA
JA JP JO JAMES JOSEPH JM JUS JOHN JOHNNIE
KDEM KIRF KPAO KCRM KNNP KIPR KMDR KWBG KPAL KSUM KCOR KISL KTIA KSCA KWMN KFRD KFLO KDEMAF KZ KN KS KJUS KOMC KBTR KE KUNR KSEP KPLS KRVC KV KTFN KTIP KMPI KIRC KOLY KPKO KIDE KMRS KFLU KSAF KGIC KRAD KU KHLS KOCI KSTH KGHG KAWC KICC KG KSPR KPRP KDRG KGIT KVPR KGCC KSEO KMCA KSTC KBIO KHIV KBCT KPAI KICA KTDB KACT KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KHUM KREC KSEC KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KPIN KCOM KESS KDEV KCFE KNUC KAWK KWWMN KPRV KCIP KHDP KOM KBTS KCRS KNPP KWNM KRFD KVIR KLIG KMIG KTEX KDDG KRGY KR KMOC KPAONZ KNAR KIFR KCGC KID KSAC KAID KWMNCS KNEI KPOA KTER KFIN KWAC KFSC KPAK KHSA KMFO KPWR KSCI KRIM KENV KWMM KO KOMS KX KVRP KCRCM KNUP KTBT KNNPMNUC KERG KTLA KCSY KTRD KJUST KNSD KCMR KRCM KCFC KCHG KREL KFTFN
LY LI LH LTTE LE LO LG LT LABOR LU LA LAB LOG
MOPS MARR MNUC MASC MASS MCAP MZ MEETINGS MERCOSUR MX MG MW MIL MTCRE MAS MO MTCR MD MK MP MY MR MT MCC MIK MU ML MARAD MA MAPS MV MPOS MILITARY MDC MQADHAFI MEPP MRCRE MEDIA MAPP MEPN MI MUCN MASSMNUC MAR MC MTRE MOPPS MTS MLS MILI MEPI
NATO NL NU NZ NPT NI NRR NA NATIONAL NIPP NO NAFTA NT NSF NS NE NASA NP NAR NV NG NSSP NK NDP NR NATOPREL NEW NPG NSG NSFO NORAD NPA NGO NSC NH NW NZUS NC
OVIP OTRA OPRC OSCE OFDA OAS OIIP OPCW OPDC OEXC OPIC OREP OFFICIALS ODIP OECD OMIG OFDP OSCI OVP OIC OIE OHUM OPAD ON OCII OBSP OCS OES OTR OSAC
PGOV PHUM PREL PTER PINR PARM PROP PA PBTS PHSA PREF PM POL PK PINS PE PALESTINIAN PL PFOR PUNE PGOVLO PAO POLITICS PO PHUMBA PSEPC PNAT PNR POLINT PGOVE PROG PHALANAGE PARTY PDEM PECON PROV PSOE PBT PAK PP PGOC PY PMIL PLN PMAR PGIV PHUH PBIO PF PRL PG PHUS PTBS PU PINL POV PEL POLITICAL PARTIES PCUL PHUMPREL POLICY PGGV PAS PSA PDOV PCI PRAM PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PHUMPGOV POGOV PREO PAHO PREFA PSI PAIGH POSTS PARMS PTERE PRGOV PORG PS PGOF PKFK PEPR PPA PINT PRELP PINF PNG
QA
RU RS RFE RICE RW RCMP RO RP RIGHTS RIGHTSPOLMIL RUPREL RF RELATIONS RM ROBERT REACTION REGION ROOD REPORT RSO RSP
SU SENV SNAR SOCI SMIG SW SO SCUL SY SR SP SA SZ SF SIPDIS STEINBERG SN SNARIZ SG SNARN SSA SK SI SPCVIS SOFA SC SL SIPRS SARS SYR SANC SEVN SWE SHI SEN SHUM SYRIA SH SPCE SNARCS SAARC SCRS SENVKGHG SAN ST
TRGY TU TX TSPA TZ TW TPHY TSPL TBIO TN TC TS TF TI TIP TH TINT TNGD TP TD TFIN TAGS TK TL TV TT TERRORISM TR THPY TO TRSY TURKEY TBID
UK UN UP UG US UNSC UNGA UNHCR USEU UY UNESCO USTR USOAS UZ UNODC UNCHS UNFICYP UNEP UNIDROIT UNHRC UNDESCO UNDP UNC UNO UNMIK UNAUS UV UNCHR UNPUOS UNCSD USUN UNCND UNDC USNC UNICEF UNCHC USPS USAID UE UNVIE UAE
VE VM VZ VT VTPREL VTIZ VAT VN VC VI VTEG
WITH WHO WI WTRO WIPO WTO WS WTRQ WWARD WHA WHTI WEU WZ WMD WMO WA WBG WFP WB
XF XG XT XK XM XR XZ XA XV XW XL XH XE XB XU XQ XS XD XY XC XX XTAG XI
YE YM YI YMCS
ZP ZR ZB ZI ZA ZK ZU ZF ZO ZANU ZOELLICK ZEALAND ZL ZJ ZN

### 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 09QUITO121, A Somber U.S. Business Forum Briefs the Ambassador

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. #09QUITO121.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09QUITO121 | 2009-02-18 20:41 | 2011-04-29 17:30 | CONFIDENTIAL | Embassy Quito
Appears in these articles: http://www.eluniverso.com/2011/04/27/1/1355/cable-192675.html

`

    VZCZCXYZ0008
    RR RUEHWEB

    DE RUEHQT #0121/01 0492041
    ZNY CCCCC ZZH
    R 182041Z FEB 09
    FM AMEMBASSY QUITO
    TO RUEHC/SECSTATE WASHDC 0039
    INFO RUEHBO/AMEMBASSY BOGOTA 7969
    RUEHCV/AMEMBASSY CARACAS 3392
    RUEHLP/AMEMBASSY LA PAZ FEB LIMA 3035
    RUEHGL/AMCONSUL GUAYAQUIL 4104
    RUCPDOC/DEPT OF COMMERCE WASHDC
    RUEATRS/DEPT OF TREASURY WASHDC

` `

    C O N F I D E N T I A L QUITO 000121

    SIPDIS

    USTR FOR BENNETT HARMAN

    E.O. 12958: DECL:02/17/2019
    TAGS: ETRD EINV EFIN EPET ECON EC
    SUBJECT:  A Somber U.S. Business Forum Briefs the Ambassador

    Ref.  A) Quito 98, B) Quito 60, C) Quit...

    id: 192675
    date: 2/18/2009 20:41
    refid: 09QUITO121
    origin: Embassy Quito
    classification: CONFIDENTIAL
    destination: 08QUITO1178|09QUITO22|09QUITO60|09QUITO98
    header:
    VZCZCXYZ0008
    RR RUEHWEB

    DE RUEHQT #0121/01 0492041
    ZNY CCCCC ZZH
    R 182041Z FEB 09
    FM AMEMBASSY QUITO
    TO RUEHC/SECSTATE WASHDC 0039
    INFO RUEHBO/AMEMBASSY BOGOTA 7969
    RUEHCV/AMEMBASSY CARACAS 3392
    RUEHLP/AMEMBASSY LA PAZ FEB LIMA 3035
    RUEHGL/AMCONSUL GUAYAQUIL 4104
    RUCPDOC/DEPT OF COMMERCE WASHDC
    RUEATRS/DEPT OF TREASURY WASHDC

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

    C O N F I D E N T I A L QUITO 000121

    SIPDIS

    USTR FOR BENNETT HARMAN

    E.O. 12958: DECL:02/17/2019
    TAGS: ETRD EINV EFIN EPET ECON EC
    SUBJECT:  A Somber U.S. Business Forum Briefs the Ambassador

    Ref.  A) Quito 98, B) Quito 60, C) Quito 22, D) 08 Quito 1178

    Classified by Ambassador Heather Hodges.  Reason: 1.4 b and d.

    ¶1.  (C) Summary.  On February 13, U.S. companies briefed the
    Ambassador on the business climate in Ecuador.  The tone was somber,
    as the representative outlined challenges and risks, but also
    opportunities for their companies, which are representative of many
    business sectors in Ecuador.  Most were concerned about weakening
    demand in Ecuador and abroad, the risk of dedollarization, declining
    export competitiveness, problems raised by restrictive Ecuadorian
    trade measures, the need to take defensive positions by saving cash
    and reducing workforces and, for the petroleum and banking sectors,
    continued regulatory uncertainty.  Not all was negative, however, as
    the business representatives noted that the government heard their
    concerns and gave them some relief on the trade restrictions, and
    several noted that the trade restrictions will also provide
    opportunities that some industries will be able to exploit.  End
    summary.

    ¶2.  (U) The Ambassador met with the U.S. Business Forum on February
    ¶13.  The U.S. Business Forum operates in parallel with the AmCham and
    is focused on U.S.-owned or operated businesses, and provides the
    participants an opportunity to exchange information on the current
    business climate.

    Autos
    -----

    ¶3.  (C) The General Motors manager (GM) led off by discussing the
    trade restrictions that Government of Ecuador imposed in January
    (reftel b).  He said that GM participated in the discussions the GOE
    had with the private sector, and obtained some flexibility in GM's
    quota by excluding imported kits that are used to assemble vehicles
    for export, taxis or the government.  However, GM declined to sign
    the agreement that most large importers signed.  The GM
    representative noted that the trade restrictions complicate GM's
    production management in the region, since GM coordinates production
    between its facilities in Ecuador, Colombia and Venezuela, and now
    the Colombian and Venezuelan plants face high tariffs in exporting to
    Ecuador.

    ¶4.  (C) The GM manager said that his factory had to shut down for
    five days because the sudden imposition of new certification
    requirements (reftel d) blocked the importation of a range of parts
    used for auto assembly.  He said that for one product the Ecuadorian
    standard was 20 years old and no laboratory tests to that standard
    anymore.  He said his factory was on the verge of shutting down again
    when the GOE temporarily lifted the certification requirement for six
    months (reftel a).

    ¶5.  (C) Turning to the current business climate, the GM manager said
    that his sales were up 20% in January 2009 compared to January 2008,
    the only GM unit worldwide to experience a sales increase.  He
    assumed the jump was because customers were anticipating a price
    increase and/or because they were converting financial savings into
    real goods out of a concern about pending financial sector
    difficulties.  He said that most sales were for cash, as financing
    for auto purchases has sharply contracted.

    Banking
    -------

    ¶6.  (C) The Citibank representative stated that deposits in the
    banking sector have declined, reflecting an overall decrease in
    liquidity in Ecuador due to balance of payments and fiscal
    constraints, plus withdrawals by clients who are concerned about
    Ecuador's ability to maintain dollarization.  She said that the
    banking sector is protecting its liquidity by reducing lending, and
    seemed to believe that overall the sector was sound.  She was
    concerned that several smaller banks were in a difficult position
    and, if closed, might promote panic about the state of the overall
    banking sector.

    ¶7.  (C) Regarding the balance of payments pressure that Ecuador is
    facing, the Citibank manager said that she is concerned that Ecuador
    may go beyond the current 1% tax on transfers abroad and may impose
    capital controls as some point.

    Energy Sector
    -------------

    ¶8.  (C) The head of a local oil services company owned by a U.S.
    citizen said that there was little investment in the petroleum
    sector.  Foreign oil companies had dramatically cut back on
    investment in recent years with the imposition of windfall oil income
    taxes, and more recently state-owned Petroecuador suffered a dramatic
    cut in its investment budget because of falling oil income.

    ¶9.  (C) The manager of Machala Power/EDC, electricity and natural gas
    companies owned by Noble Energy, said that his company had reached an
    agreement with the GOE whereby the GOE would pay Machala Power $70
    million in arrears, and in turn Machala Power would withdraw its
    international arbitration case (refel c).  However, he has been
    informed that that GOE no longer has sufficient cash and therefore
    will not be making the payment.

    ¶10.  (C) After the meeting, the Machala Power/EDC representative told
    EconCouns that he is concerned about the GOE's approach to the EDC
    gas company.  In a recent meeting with Carlos Pareja, Under Secretary
    for Petroleum, Pareja told him that President Correa has decided that
    EDC's production contract should be converted to a service contract,
    and EDC would be paid a fee of $2 for every thousand cubic feet (Mcf)
    of gas produced.  If not, Machala Power/EDC should "begin to pack its
    bags."  The representative said that currently EDC charges its sister
    company approximately $3.75/Mcf, which is low in order to generate
    profits on the electricity side of the business, and that the fee
    proposed by Pareja was unreasonable.

    Flower Sector
    -------------

    ¶11.  (C) A representative of a U.S. flower company said that
    Ecuadorian flower exports were down because of weakening demand in
    major markets, which is accentuated in new markets in Eastern Europe
    which have experienced sharp currency devaluations as well.  In
    addition, Ecuadorian producers are facing increased competition from
    African producers where labor costs are much lower, which has been
    exacerbated by sharp increases in the minimum wage in Ecuador in 2008
    and 2009.  He said that given the loss of competitiveness of the
    Ecuadorian flower sector, the best outcome for that sector would be
    if Ecuador abandoned the dollar, although he acknowledged that could
    cause problems for other sectors.

    Tourism
    -------

    ¶12.  (C) The manager of the Marriott hotel said that business at his
    hotel was down 16% from the prior year.  He said that his hotel had
    let a limited number of staff go.

    Industrial Imports
    ------------------

    ¶13.  (C) The manager of an Ecuadorian company that imports valves and
    other types of industrial piping from the U.S. said that overall
    business has weakened.  He added that some sectors, such as the food
    processing industry, continue to invest, in part to take advantage of
    new market opportunities created by higher tariffs on consumer goods.
     He said that in the current uncertain business environment,
    companies had to hoard cash, be lean (his company has reduced staff
    by 15%), and look for new opportunities.

    Consumer Goods
    --------------

    ¶14.  (C) The representative for Energizer said that his company
    imports batteries and a range of toiletry goods.  He said that like
    GM, his company realized a jump in sales in December and January as
    Ecuadorian distributors stocked up in anticipation of price
    increases; he expects limited sales in the upcoming months.  The
    exception was batteries, where imports were also blocked for almost
    two months by the new Ecuadorian certification requirements, which
    were then lifted.

    ¶15.  (C) He said that in addition to selling to large Ecuadorian
    chains, his company sells to small shops.  He said that he has seen
    growing arrears with the small stores.  The small stores have had to
    increase the credit they extend to their customers, largely because
    of falling income due to declining remittances.  This in turn leads
    the small stores to fall behind on payments to suppliers such as
    Energizer.

    Textiles
    --------

    ¶16.  (C) The U.S. owner of a local textile company said that the
    textile sector was doing well and benefited from the trade
    restrictions on imported clothing, although he stressed that his
    industry did not ask for the restrictions.  His company will increase
    investment to take advantage of the opportunities.  He added that his
    sector did ask for tighter labeling requirements, which the GOE has
    begun to implement, as a measure to crack down on contraband.

    Information Technology
    ----------------------

    ¶17.  (C) The U.S. owner of an Ecuadorian information technology (IT)
    company said that the business outlook for his sector was uncertain.
    Overall investment was down, but some business were increasing IT
    investment to improve efficiency.  He said that some of the
    investment was in labor-saving technology as companies looked to
    reduce their payrolls.
    Comment
    -------

    ¶18.  (C) This was the most somber meeting the Embassy has had with
    the U.S. Business Forum in recent years, as U.S. companies grapple
    with the challenges of a global economic downturn that appears likely
    to create a difficult business environment in Ecuador in 2009.  This
    is further complicated by Ecuadorian trade barriers as well as
    regulatory uncertainty for key sectors such as petroleum and banking.
     Even so, most companies still see business opportunities in Ecuador
    and will manage their companies to minimize the upcoming risks and to
    take advantage of the opportunities that present themselves.

    Hodges

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

`