VZCZCXYZ0000
OO RUEHWEB

DE RUEHQT #0639/01 0742317
ZNR UUUUU ZZH
O 152317Z MAR 06
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3871
INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 5465
RUEHCV/AMEMBASSY CARACAS PRIORITY 1641
RUEHLP/AMEMBASSY LA PAZ MAR 9733
RUEHPE/AMEMBASSY LIMA PRIORITY 0435
RUEHGL/AMCONSUL GUAYAQUIL PRIORITY 0119
RHMFISS/CDR USSOUTHCOM MIAMI FL

UNCLAS QUITO 000639 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV SOCI PHUM EC
SUBJECT: INDIGENOUS PROTEST FTA, OXY; GOVERNMENT MINISTER 
RESIGNS 
 
 
¶1.  (SBU) Summary:  Government Minister Alfredo Castillo 
resigned on May 15 after indigenous blocked key highways 
throughout eight central provinces beginning on March 14 to 
threaten an indefinite "progressive national mobilization" 
demanding an end to FTA negotiations, the expulsion of 
Occidental Petroleum, the destitution of President Palacio 
and the convocation of a constituent assembly.  Long 
threatened, the indigenous protest is led by CONAIE president 
Luis Macas and the highlands indigenous group ECUARUNARI, and 
represents a critical test of the movement's strength and 
organizational capacity, which had been questioned in recent 
years.  Coinciding with ongoing provincial strikes in the 
heavily indigenous highlands region, the indigenous 
mobilization took the government by surprise.  GOE officials 
have entered into discussions with indigenous leaders, but 
cannot accede to indigenous demands if an FTA accord is to be 
reached.  End Summary. 
 
Minister of Government Resigns 
------------------------------ 
 
¶2.  (U) Minister of Government Alfredo Castillo announced his 
resignation on March 15, saying he will remain in the 
position until March 17.  Castillo said his departure is due 
to his disagreements with other GOE members regarding the 
FTA.  It is widely assumed that Felipe Vega, Vice Minister of 
Government, will replace Castillo. 
 
Indigenous Mobilize 
------------------- 
 
¶3.  (SBU) CONAIE began its nation-wide public protests on 
March 14, demanding an end to FTA negotiations, the expulsion 
of Occidental petroleum, the resignation of President 
Palacio, and the convocation of a constituent assembly.  The 
protests took advantage of previously scheduled widespread 
provincial strikes in eight highland provinces.  The action 
by indigenous and "campesino" groups began with a march on 
March 13 beginning in Puyo, in which Luis Macas, the head of 
Ecuador's largest indigenous organization CONAIE, 
participated.  The marchers are expected to arrive in Quito 
on March 16.  So far there have reportedly been 20 arrests 
and 6 wounded in clashes between protesters. 
 
¶4.  (U) In Puyo, on the afternoon of March 15, protesters 
reportedly took 15 soldiers hostage, injured six police 
officers, and took over the city's IRS-equivalent office and 
the governor's office.  Violent clashes also occurred in the 
city of Macas.  In Quito, there were road blockages near a 
school and near the presidential palace, resulting in two 
arrests.  Other protest actions as of March 15 include: 
Chimborazo province, road blockages; Canar province, road 
blockage; Zamora Chinchipe province, anti-FTA/Oxy protests; 
Azuay province, indigenous blockages; Tunguragua province, 
strike is reaching a resolution; Imbabura province, 4 injured 
after protests; and Cotopaxi province, 2 injured. 
 
Indigenous Threatening Larger Uprising 
-------------------------------------- 
 
¶5.  (SBU) Raul Ilaquiche, VP of indigenous group Ecuarunari, 
told us on March 15 that indigenous leaders, including Luis 
Macas, had held discussions with Vice Minister of Government 
Felipe Vega until 5 a.m. that day, and were waiting for a 
public announcement from the President before deciding on 
next steps.  As of 17H00 on March 15, there has been no 
official government response.  PolOff also spoke with 
Santiago de la Cruz, VP of CONAIE, on March 15, who said that 
if there was no response by March 16, there would be an 
increase in protest activity including increased road 
blockages, the occupation of government institutions, 
facilities, and increased coordination with other social 
groups.  Indigenous groups will demand a GOE response to 
their demands on an FTA and Occidental petroleum. 
Presidential Secretary for Communication Enrique Proano has 
publicly stated that the protesters requests regarding the 
FTA cannot be met by the government.  Guayaquil business 
chambers have reiterated their support for an FTA and are 
calling on indigenous groups to drop their demands. 
 
President Concerned About Political Situation 
--------------------------------------------- 
 
¶6.  (U) President Palacio, president of Congress Wilfrido 
Lucero, and president of the Supreme Court Jaime Velasco met 
 
on March 15 to discuss the country's political situation. 
Lucero reportedly later expressed worry that some groups are 
interested in destabilizing the country.  Meanwhile in 
Congress, PSC deputies are accusing leftist parties and 
former President Gutierrez' Patriotic Society Party of 
seeking to destabilize the country. 
 
Comment 
------- 
 
¶7.  (SBU) The main goal of indigenous groups seems to be to 
intimidate the already weak Palacio government from reaching 
an FTA agreement in Washington from March 23.  The protests 
will severely test indigenous movement strength.  Street 
actions could prove hard to maintain; recent indigenous 
efforts to mobilize have largely failed.  CONAIE's gambit may 
also have electoral motivations to consolidate indigenous 
support for an indigenous candidate such as Macas. 
JEWELL