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### Viewing cable 05QUITO2653, GALAPAGOS CALM, FOR NOW

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05QUITO2653 | 2005-11-21 16:30 | 2011-05-02 00:00 | 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 002653

    SIPDIS

    DEPT PASS TO USAID

    E.O. 12958: N/A
    TAGS: SENV EAID EFIS ECON PGOV PREL EC
    SUBJECT:  GALAPAGOS CALM, FOR NOW

    REF: A. Quito 2184
         ¶B. 04 Quito 1578

    ¶1.  Summary.  Fishermen questioning the GOE's sincerity in
    finding economic alternatives for their sector walked out of
    a meeting of the Galapagos Inter-institutional Management
    Authority (AIM) on October 31.  Recent progress bringing the
    fishing sector back into a productive dialogue on Galapagos
    conservation appears to be fading, raising fears that the
    strikes and violence of 2004 may return.  Although they
    would like to avoid the legal backlash that comes with
    strikes, fishermen may feel they have no other way to obtain
    assistance from the GOE.  While the GOE appears to be trying
    to address the fishing sector's demands, it must quickly
    implement programs to address the fishermen's economic
    concerns if it is to avoid the likelihood of protests in
    February 2006 when quotas for next year's sea cucumber
    season are to be negotiated.  End Summary.

    WARNING SIGNS
    -------------

    ¶2.  In September 2005, the fishing sector returned to the
    consultative process after 18 months in which their lack of
    participation sabotaged the development of sustainable
    policies for the islands (reftel A).  The hopes prompted by
    their return were dashed when fishing sector representatives
    walked out of a meeting of the Galapagos Inter-institutional
    Management Authority (AIM) on October 31.  The walkout was
    triggered by developments -- brought to light during the
    meeting -- that reinforced their suspicions that the
    Ministry of the Environment (MOE) has no interest in
    resolving their economic problems.

    ¶3.  The meeting's first blow came when the MOE presented a
    much discussed 3 million Euro micro-credit program that
    would provide funding for fishermen to expand into non-
    extractive economic activities.  The fishing sector
    complained that the MOE originally presented the program as
    a donation -- not a loan -- even suggesting that the MOE is
    trying to keep some of the money for itself.  Financing for
    the project is to come from the Italian institution ETIMOS.
    Meeting with Econoff and USAID last week, ETIMOS expressed
    doubt that a viable market for micro-credit exists in the
    Galapagos.  If ETIMOS' perspective does not change and the
    financing is not provided, fishermen will believe that
    either the whole program was a smoke screen to keep them
    pacified or that the MOE really did take off with the money.

    ¶4.  The second blow occurred when the National Fishing
    Institute (INP), which was to present a proposal to allow
    fishermen to engage in long-line fishing, did not show up to
    the meeting.  While seeking support for developing non-
    fishing alternatives, the fishing sector continues to work
    to expand its fishing options.  Long-line fishing has been
    discussed for over a year as a possibility, but studies that
    would precede opening up this activity to fishermen on the
    Galapagos have yet to begin.  INP's no-show was the final
    straw for some fishermen, who now believe that all the talk
    surrounding long-line fishing was just that.

    ¶5.  On both matters, fishing sector leaders have told
    Econoff that they believe the MOE is lying to them.  They
    claim the MOE is disconnected from the Galapagos, leaving
    them deeply suspicious of the ministry's motives and with no
    hope.

    ¶6.  Fishermen also are edgy as they realize that their
    fishing options -- and thus their income -- are drying up.
    This year's sea cucumber catch only reached 40% of the
    allowable quota.  Fishermen acknowledge that sea cucumbers,
    which in recent years have accounted for almost 50% of their
    income, are on the cusp of commercial extinction in the
    Galapagos.  Adding to their woes, the current lobster season
    is disappointing.  Although they believe that the lobster
    catch might improve in November and December, economic
    prospects within the current fishing regime are diminishing.

    TO STAGE PROTESTS OR NOT
    ------------------------

    ¶7.  Many Galapagos observers fear that the fishing sector,
    faced with few options, may revert to strikes to influence
    Galapagos policies in their favor.  Strikes in February and
    June of 2004 were successful in increasing sea cucumber
    quotas and opening up discussions to legalize new fishing
    techniques (reftel B).  With that success in mind, fishermen
    might return to that strategy.

    ¶8.  However, fishermen also are wary of legal problems that
    come with strikes and protests.  Currently, 33 fishermen
    still have cases pending against them for their role in the
    2004 protests.  Fishermen also claim that the judicial
    process is biased against them, pointing to two incidents of
    illegal fishing that implicated the scientific community and
    the tourism sector where no action has been taken by
    judicial officials.

    ¶9.  Coordinating protests is difficult because the fishing
    sector is far from united.  The three inhabited islands host
    four different cooperatives and sometimes within
    cooperatives the incentives to strike vary widely between
    leadership and members.  However, this was also true in 2004
    and strikes occurred anyway.

    CURRENT MOE ACTION NOT ENOUGH
    -----------------------------

    ¶10.  While the MOE appears to be trying to assist the
    fishing community, few concrete actions result from their
    effort.  One of the MOE's big plans -- the infusion of
    financing through ETIMOS -- may not materialize.  Other
    large-scale financing, such as the IDB's recent $3 million
    grant, is slated for technical assistance and will not fund
    investments into productive ventures for the fishermen. What
    little is being done to address the fishermen's transition
    comes from small-scale, USAID-backed projects.  Fishermen
    rightly note that while these projects are effective, much
    more needs to be done for a fishing sector consisting of
    over 900 permitted fishermen.  NGO and USAID projects cannot
    fill the gap and the MOE appears to lack the political will
    and power to implement a successful plan.  Many fishermen
    are turning to the tourism sector for assistance.  The
    tourism sector, which has much to lose with new strikes --
    they claim they lost some $500,000 during the June 2004
    protests -- might find it in their interest to lend a
    helping hand.

    COMMENT
    -------

    ¶11.  Quotas for next year's sea cucumber season will be
    negotiated in February 2006.  Because the sea cucumber
    population is dwindling, the negotiations will be tense and
    could set the stage for protests.  Before these negotiations
    begin, the fishing sector needs to see positive results from
    its involvement in the Galapagos' participatory process if
    the likelihood of protests is to diminish.  In this effort,
    we are exploring new avenues through which to convince other
    stakeholders -- namely the tourism sector -- to look beyond
    short-term profits and realize that their own interests are
    tied to those of the fishing sector.

    JEWELL

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