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