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 000874 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ASEC EC
SUBJECT: ECUADOR:  STREETS CALM, GUTIERREZ SAFE, PALACIO 
SPEAKS 
 
REF: A. QUITO 872 
 
     ¶B. QUITO 871 
     ¶C. QUITO 870 
 
¶1.  (U) SUMMARY:  Providential rains cooled demonstrators' 
temperatures and cleared Quito streets late April 20, 
although additional protests focusing on Congress are likely 
April 21.  The Ecuadorian Red Cross is claiming two dead, 
more than 300 injured (mainly from tear gas) since mass 
demonstrations began a week ago.  Media reports that 
ex-President Lucio Gutierrez has holed up in the residence of 
the Brazilian ambassador, with Brasilia soon to grant him 
political asylum.  Police continue their search for former 
administration officials and PRE leader Abdala Bucaram.  With 
police and armed forces assistance, President Alfredo Palacio 
at 1900 hrs departed the site of the alternative 
Congressional session and proceeded to the Joint Command HQ 
in southern Quito, where he delivered his first presidential 
press conference.  Highlights included Palacio's stated 
intention to foment "direct democracy" in Ecuador, govern 
constitutionally, and not dissolve Congress or call immediate 
elections (although he will seek the public's opinion on the 
next vote's timing).  "I am Ecuador's last hope," he boasted. 
  END SUMMARY. 
 
Security 
-------- 
 
¶2.  (U) Despite Congress having dismissed Gutierrez and 
installed Palacio as president, crowds attempted to penetrate 
both the Congressional building, where pro-GoE delegates 
worked, and the CIESPAL facility in north Quito, where 
opposition Congressman had established a "rebel" session. 
Police at the former prevented a breach, but some 3-4000 
demonstrators were crowding the entrance to CIESPAL as late 
as 1830 hrs, demanding complete dissolution of Congress. 
Embassy contacts told us approximately 30 legislators and 
Palacio were trapped inside.  Rains intensified, however, 
dispersing the crowds, and the eventual arrival of GoE 
security forces allowed the Ecuadorian president and deputies 
to depart at approximately 1930. 
 
¶3.  (SBU) Inflammatory Quito radio station La Luna overnight 
broadcasted messages blasting the U.S.-Andean Free Trade 
Agreement and the USG military presence in Manta, but issued 
no calls for actions against the Embassy or American 
citizens.  It also called on protesters to return home, 
"their work done" (Septel will provide background on La Luna) 
 RSO sources indicate sporadic protests will continue April 
21, however, the participants mainly hard-core leftists and 
rabble-rousers.  Quito's Red Cross April 21 tabulated the 
casualty toll from a week of Quito violence at two dead, 360 
wounded. 
 
Gutierrez 
--------- 
 
¶4.  (U) Former President Gutierrez, after a surreal 
helicopter/airplane/helicopter/car escape, allegedly is holed 
up in the residence of Brazilian Ambassador Sergio Florencio. 
 Peaceful protesters overnight gathered near the compound, a 
mile north of the Embassy, but dispersed by early morning; 
there remains a squad of police protecting the Brazilian 
mission.  Media report that Brasilia intends to grant 
Gutierrez asylum, although we have heard nothing through 
official channels.  In order to depart the country, the 
ex-president would require an Ecuadorian MFA-issued "safe 
conduct" determination, equal to what former FM Patricio 
Zuquilanda granted former GoE President Gustavo Noboa 
eighteen months ago.  Police continue their manhunt for 
former Supreme Court President Guillermo Castro, ex-President 
Abdala Bucaram, and one-time Minister of Social Welfare 
Bolivar Gonzalez, for whom Ecuador's acting attorney general 
has issued arrest warrants. 
 
Congress 
-------- 
 
¶5.  (SBU) Public dissatisfaction with Ecuador's legislature 
continues.  CIESPAL demonstrators attacked Congressional 1st 
VP Cynthia Viteri (PSC), who earlier had administered 
Palacio's oath of office, as well as independent Patricio 
Davila and Pachakutik's Miguel Lopez.  Media claimed that, in 
response to protesters' "throw the bums out" demands, two 
deputies allegedly have resigned (we are confirming).  On a 
positive note, Carlos Vallejo (PRIAN), chief of the 
International Relations Committee and long-time US-hater 
announced his intention to resign once the political 
situation stabilizes.  One PSC contact told Poloff that 
Congress would not reconvene until April 26 or 27, while 
another said the Democratic Left (ID) party would inherit the 
legislative presidency.  There has been no formal 
Congressional resolution tapping the ID, however. 
 
Government Response 
------------------- 
 
¶6.  (U) At Joint Forces HQ April 20, newly installed 
President Alfredo Palacio conducted his first press 
conference; seated with him were Ecuador's military high 
commanders.  Palacio proclaimed his intention to establish 
"direct democracy" in Ecuador, without elaborating.  He would 
steadfastly honor the constitution, although he was not 
averse to amending it legally.  Palacio was "no dictator"; as 
such, he would not cave to protesters' demands to dissolve 
the legislature, believing anarchy would result.  Nor would 
he call immediate elections.  "Such an action would benefit 
the current, corrupt political class," the president 
asserted.  Instead, he would seek a revised electoral law, to 
be approved via referendum, that included options for the 
next presidential vote. 
 
¶7.  (U) Palacio had not yet finalized his Cabinet selections 
(media claim three are in place now), but would consider 
candidates of any political stripe.  His VP "must be 
intelligent, prepared, and have experience in public 
service."  On issues of USG importance, Palacio did not 
dismiss out-of-hand the Free Trade Agreement, but claimed 
Ecuador's negotiating position and team were weak.  He did 
not mention Manta.  Concluding the conference, the president 
pleaded for time to recast and rebuild the nation.  "I am 
Ecuador's last hope," he contended. 
 
Embassy Actions 
--------------- 
 
¶8.  (SBU) The RSO and others continue outreach to their GoE 
law enforcement and military intelligence counterparts.  At 
0830 hrs, DAO and Milgroup commander are calling on Joint 
Forces Chief Victor Rosero to gauge the current situation and 
urge the military to behave responsibly.  Late April 20, PSC 
leaders Leon Febres-Cordero and Jaime Nebot attempted to 
reach the Ambassador, urging her to declare the presidential 
change "constitutional."  Seeing a trap, she declined the 
calls, although she will call Nebot April 21. 
 
Third Party Efforts 
------------------- 
 
¶9.  (U) Media here reported that Venezuela, Chile, Bolivia, 
Peru, and Argentina had issued statements calling for calm 
and constitutional order in Ecuador.  The local UN mission 
forwarded us the UNSYG's statement, which tracks closely with 
ours in its calls for a non-violence and a return to rule of 
law.  We understand the OAS Permanent Council is meeting 
April 21, and we have forwarded comments to USOAS regarding 
the U.S. permrep's statement. 
 
Next Steps 
---------- 
 
¶10.  (SBU) Septel will detail the Embassy's short-term plans 
for engaging the new government.  Broadly, we will seek 
meetings with the few Palacio Administration officials 
already named, maintain regular contacts with Ecuadorian 
security forces, and reach out to important third-party 
actors, from business leaders and former politicians to 
academics and heads of NGOs. 
KENNEY