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