VZCZCXYZ0012
OO RUEHWEB

DE RUEHQT #0483/01 0542231
ZNR UUUUU ZZH
O 232231Z FEB 06
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3711
INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 5371
RUEHCV/AMEMBASSY CARACAS PRIORITY 1584
RUEHLP/AMEMBASSY LA PAZ FEB 9673
RUEHPE/AMEMBASSY LIMA PRIORITY 0353
RUEHGL/AMCONSUL GUAYAQUIL PRIORITY 9970
RHMFISS/CDR USSOUTHCOM MIAMI FL

UNCLAS QUITO 000483 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ASEC PREL PGOV PHUM EC
SUBJECT: NAPA-PASTAZA STRIKE SUSPENDED, NEGOTIATIONS BEGIN 
 
 
¶1.  (SBU) Summary:  A disruptive citizens strike in the 
eastern province of Napo, supported by neighboring Pastaza 
province, was suspended pending the outcome of negotiations 
between protesters, the Ministry of Government, and the 
Minister of Economy and Finance Diego Borja on February 23. 
Ecuadorian military units regained control of the private OCP 
oil pipeline pumping station in Sardinas on the same day, but 
the pipeline is not yet operational. The state-run SOTE 
pipeline was largely unaffected by this strike.  However, 
PetroEcuador officials claim that two recent protests that 
shut down the SOTE cost the GOE 34 million.  Forty-three 
injuries and eleven arrests have been reported during the 
localized state of emergency in Napo and Pastaza provinces, 
including arrest of the mayors of Tena and Santa Clara and 
the Prefect of Napo.  No AmCits have been hurt in the 
strikes. 
 
¶2.  (SBU) The strike action is typical of the pressure 
tactics used by provincial leaders to demand central 
government attention and resources.  By generally acceding to 
striker demands, the Palacio government has ensured that 
these tactics will be replicated elsewhere.  While disruptive 
and damaging economically, the strikes have not seriously 
threatened national political stability.  The GOE has vowed 
to prosecute violent protesters, and Presidential Secretary 
Jose Modesto Apolo publicly blamed ex-president Lucio 
Gutierrez for the strikes.  End Summary. 
 
¶3.  (U) On February 22 President Palacio declared a state of 
emergency suspending civil liberties and imposing a curfew in 
the eastern provinces of Napo and Pastaza after protests 
turned violent.  Press reported forty-three civilian 
injuries, thirteen from gas inhalation; two police officers 
suffered injuries from dynamite and molotov cocktails hurled 
by protesters.  Eleven individuals were arrested, including 
Mayor Washington Varela of Tena, Mayor Ricardo Reyes of Santa 
Clara, and Prefect Gina Sanmiguel of the Napo.  Ecuadorian 
military units regained control of the OCP Sardinas oil 
pumping station early on February 23, after strike leaders 
suspended protests pending the outcome of negotiations with 
the government. 
 
¶4.  (U) Striker demands include increased funding for 
education, road and infrastructure improvements, and an 
international airport promised to Tena by ex-president Lucio 
Gutierrez, a native son.  Presidential Secretary Jose Modesto 
Apolo publicly accused deposed ex-president Lucio Gutierrez, 
who remains imprisoned in Quito, of being behind the domestic 
disturbance.  Gutierrez still enjoys wide support in the Napo 
and Pastaza provinces, and the arrested officials hail from 
his Patriotic Society party.  OCP technicians have re-entered 
the pumping station to assess the damage done by the 
protesters.  An industry source told us that they hope to 
have the OCP operational within the next three days.  Over 
the past two weeks, protesters have also temporarily shutdown 
the state owned SOTE pipeline.  State oil company 
PetroEcuador claims those shutdowns cost the government about 
34 million in lost revenue. 
 
Comment 
------- 
 
¶5.  (SBU) The region's association with Gutierrez could make 
the GOE less inclined to concede to striker demands, or at 
least more inclined to aggressively prosecute lawbreakers. 
Unfortunately, these types of citizen strikes to demand 
additional resources from the central government are 
commonplace in Ecuador.  This strike follows earlier strike 
actions or threatened disruptions in 13 other provinces (all 
successful in wringing concessions from the Palacio 
government, totaling $1.2 billion), and is a repeat of the 
August 2005 disruption of oil production in the neighboring 
Amazonian provinces of Orellana and Sucumbios.  That strike 
took more than a week to resolve, at high economic cost to 
private companies, and led President Palacio to replace his 
Minister of Defense.  Thus far, the political impact of the 
strikes has been limited to Cabinet members, and the current 
strike is unlikely to go beyond that.  With the carnival 
holiday quickly approaching, it is in everyone,s interest to 
reach a compromise on this issue. 
 
¶6.  (SBU) Current Defense Minister Oswaldo Jarrin has proved 
more decisive ordering troops to clear road and oil facility 
blockages, causing more injuries but bringing strike leaders 
more quickly to the table.  Minister of Government Alfredo 
Castillo does not inspire confidence in ensuing negotiations, 
however, and would be a most worthy casualty of any extended 
conflict. 
 
BROWN