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C O N F I D E N T I A L QUITO 002384 

SIPDIS 

SIPDIS 

E.O. 12958: DECL: 09/06/2014 
TAGS: PREL MARR MASS MOPS SNAR PTER EC CO
SUBJECT: ECUADOR-COLOMBIA BORDER PROGRESS REPORT - 
JUNE-SEPTEMBER 

REF: A. QUITO 02078 

     ¶B. QUITO 02151 
     ¶C. QUITO 02289 

Classified By: PolOffJarahnHillsman, Reasons 1.4 (b&d) 

¶1.  (C) Summary:  The following report provides a quarterly 
update of developments along Ecuador's northern border with 
Colombia.  Highlights include the Ambassador's travel to 
Esmeraldas province, progress disrupting narco-trafficking, a 
change of Defense Minister, and renewed diplomatic tension 
over an errant mortar attack from Colombia which injured 
three Ecuadorian civilians.  End Summary. 

Ambassador Highlights Development in Esmeraldas 
--------------------------------------------- --- 

¶2.  (C) The Ambassador visited the province of Esmeraldas on 
June 30 to inaugurate a USAID funded water system in the town 
ofBorbon, and to express continued USG support for basic 
infrastructure projects in vulnerable northern border 
communities.  In public and private the Ambassador stressed 
the importance of investing in basic sanitation and health 
projects, as well as licit income generating ventures. 
USAID, by 30 September will have completed 36 water and 
sanitation systems, bringing much needed basic services to 
populations along the troubled northern border with Colombia. 

¶3.  (U) The Ambassador on June 16 signed an agreement with 
Foreign Minister Carrion adding 10.5 million in FY06 ACI 
funds for northern border development.  Carrion told the 
press that "the Ecuadorian government appreciates U.S. 
assistance for the most abandoned areas of Ecuador...which 
reflects how the two countries are united to develop 
vulnerable zones in the northern border." 

Progress Disrupting Narco-Trafficking 
------------------------------------- 

¶4.  (C) The Ecuadorian National Police (ENP) Anti-Narcotics 
Unit discovered and destroyed 10 hectares of coca plants over 
the last six months, the majority of which were found in the 
Esmeraldas province.  The ENP Anti-Narcotics Unit carried out 
eradication with military force protection, a major 
indication that police-military counter-narcotics cooperation 
is improving.  Meanwhile, maritime interdiction efforts 
resulted in the capture of 20 metric tons of cocaine in 
September alone.  The Ecuadorian military seized over 160,000 
gallons of petroleum ether (white gas) between 01 July and 13 
September.  Petroleum ether is an organic solvent used in the 
manufacturing of cocaine in Colombia.  Information provided 
by DEA's Ecuador office led to the seizure of 319 kilos in a 
cargo container in Bridge Port, Bahamas and 200 Kilos in 
Mumbai, India, the largest such bust ever made there. 

¶5.  (SBU) Conclusion of the NAS funded San Lorenzo pier in 
the northern province of Esmeraldas has been delayed due to 
contracting problems (now set for December/January 2007). 
The $2.7 million dollar investment will greatly improve the 
Ecuadorian Navy's ability to monitor and interdict narcotics 
traffickers in an area where we have seen a significant 
increase in activity.  Narco-traffickers are currently moving 
drugs into Ecuador on speed boats and connecting with larger 
vessels off the Esmeraldas coast.  Drugs are also being 
smuggled through San Lorenzo's extensive riverine and 
estuarine networks.  Completion of this project will be good 
news for our counter-narcotics efforts in the region. 

IAG Activity Persists 
--------------------- 

¶6.  (C) Colombian Illegal Armed Group (IAG) activity in 
Ecuadorian territory, mainly in the Carchi and Sucumbios
provinces, is on the rise.  We have seen an increase in IAG 
movement in this region as well as in the number of Colombian 
sympathizers and local residents entangled in illegal 
activity.  In response, the Ecuadorian military executed two 
very large operations (approximately 1500 personnel) in 
Sucumbios, disrupting FARC activity in that sector.
Ecuadorian-Colombian military cooperation at the tactical 
level remains very positive, helping to deny FARC and other 
narco-terrorist free reign in the northern border region. 
Unfortunately, aside from the anti-narcotics units, police in 

the region remain understaffed, underfunded, and corruption 
within the ranks a persistent problem. 

Cross-Border Relations Positive But Tense 
----------------------------------------- 

¶7.  (C) Ecuador-Colombia cross-border cooperation and 
communication remains positive despite several border 
incidents over the last four months.  Director General for 
Border Relations with Colombia Ambassador Claudio Cevallos
recently expressed GOE concern that FARC sympathizers in the 
northern border region are actively trying to undermine GOE 
efforts to deepen cross-border development and security 
initiatives.  Cevallos explained that the GOE has information 
that the FARC through the press and local supporters is using 
hot-button issues like aerial fumigations on the Colombian 
side of the border and accidental Colombian military 
incursions to try and derail high-level government 
cooperation.  Cevallos reported that many in the GOE are 
acutely aware of the FARC's activities and of the growing 
narco-terrorist threat and are working, within current 
political constraints, to address the problem.  This may be 
the reason for the GOE's more muted response to accidental 
Colombian military incursions into Ecuador over the last few 
months.  The GOE's more measured responses and the previously 
established bi-national committees have helped the two 
governments maintain fluid communication on a number of 
cross-border issues. 

¶8.  (C) The bilateral border development plan originally 
scheduled to be signed by the foreign ministers on September 
7 was postponed due to scheduling conflicts.  Cevallos
reported that the signing would take place in mid-October. 

Mortar Incident Tests Relations 
------------------------------- 

¶9.  (C) Improved cross-border relations were severely tested 
when a mortar round from a Colombian military-FARC fire 
exchange in Teteye, Putamayo exploded in the Ecuadorian town 
of Puerto Nuevo, SucumbiosonAugust 23.  The explosion 
damaged a bus station and injured three Ecuadorian nationals. 
 Public outrage spread quickly forcing the GOE to issue a 
strong public statement condemning the action and demanding 
an explanation and compensation for the injured.  The 
Colombian government initially faulted the FARC and said that 
an investigation was underway, but after further GOE pressure 
announced that it would compensate the victims.  However, the 
GOC response stopped short of any admission that the mortar 
originated from the Colombian military - a claim made by the 
GOE.  Ecuadorian Foreign Minister Francisco Carrion told the 
Ambassador in a recent meeting that he phoned Colombian 
Foreign Minister Maria Araujo to encourage a speedy response 
given public discontent in Ecuador.  Soon thereafter, 
according to Carrion, the GOC agreed to compensate the 
injured.  Seeking to put the issue to bed, the GOE did not 
demand an actual admission of guilt on behalf of the 
Colombian military (reftel A).

White Paper Released; MinDef Resigns 
------------------------------------ 

¶10.  (SBU) Former Defense Minister OswaldoJarrion on August 
10 released the Ministry's "National Defense Policy 2006", 
citing the need to have a well defined strategy for 
addressing transnational crime and to protect national 
sovereignty.  The "white paper" offers a significant shift in 
Ecuador's security policy, stressing the need to secure the 
country's northern border with Colombia and frustrate 
narco-trafficker efforts in Ecuador (reftel B).  Many 
criticizedJarrin for overstepping the military's role by 
suggesting increased counter-narcotics measures.  Jarrin on 
August 28 announced his resignation, citing unspecified 
elements in opposition to the military's counter-narcotics 
role as forcing his unexpected exit.  Newly appointed Defense 
Minister Marcelo Delgado has vowed to maintain efforts 
initiated under Jarrin, recently announcing that he would 
close and move 14 military bases from southern Ecuador to the 
northern border region (reftel C). 

U.S. Military Support Limited But Effective 
------------------------------------------- 

¶11.  (U) The U.S. Military Group (MILGP) conducted a Medical 
Readiness Training Exercise July 13-29 in the northern border 
province of Esmeraldas.  The U.S. military team performed 37 
plastic surgery operations, repairing cleft lip and palates 
and severe burns.  The humanitarian exercise was well 
received by local residents and received positive press 
coverage.  The MILGP also recently provide 12,000 back-packs 
with school kits for distribution in select school districts 
along on the northern border, and has additional kits ready 
for distribution. 

¶12.  (C) The MILGP currently has a U.S. Army Special Forces 
Team training select Ecuadorian military units in the 
northern provinces of Esmeraldas and Sucumbios on light 
infantry tactics.  To increase the Ecuadorian military's 
operational capabilities, the MILGP supplied northern border 
units with 195 night observation devices.  MILGP funding also 
helped the Ecuadorian military produce and disseminate 84,000 
informational packets in support of their weapons control 
initiative.  The same program provided funding that allowed 
the Ecuadorian Police to produce and disseminate 250,000 
anti-drug informational products. 

¶13.  (C) A MILGP funded mobile radio station was successfully 
brought on-line in Maldonado, Carchi province.  As the first 
Ecuadorian government radio station established in the area, 
the initiative will help counter the FARC dominated messages 
currently broadcasted.  The radio station will play music and 
broadcast messages that support Ecuadorian national identity, 
discourage illicit activities, and promote the Ecuadorian 
military's positive role in the region. 

"JUNTOS" Campaign Hits Primetime 
-------------------------------- 

¶14.  (U) USAID expanded its "JUNTOS" (together) campaign, 
adding an additional $500,000 in funding.  The new messages 
hit radio and TV news programs in late August, and over 24 
2-minute infomercials will appear on TV news programs into 
October.  USAID also secured agreements with newspapers, 
magazines, and credit card companies to include "JUNTOS" 
information in their mass mailings.  The GOE financed the 
cost of "JUNTOS" commercial spots played during the 2006 
World Cup.  Worth an estimated $200,000 in free advertising, 
the spots reached 80% of the Ecuadorian population.  The 
"JUNTOS" campaign is quickly gaining recognition and should 
help to better highlight USG development activities in the 
northern border region. 

Poor Sanitation Linked to NB Health Problems 
-------------------------------------------- 

¶15.  (U) An important new study was completed documenting the 
health impact of water and sanitation in northern border 
communities.  Nine communities where USAID had funded water 
and sanitation improvements were compared to areas still 
lacking such investment.  The report found a consistent 
correlation with improved health statistics and USAID funded 
water sanitation projects in the nine communities, and an 
even greater consensus among beneficiaries and health workers 
interviewed that theses infrastructure improvements led to 
better health.  This confirms our suspicions that health 
problems previously attributed to aerial glyphosate spraying 
are more likely connected to poor health care and limited 
access to clean water and basic sanitation services. 

Economic Development Slow But Steady 
------------------------------------ 

¶16.  (U) Overall, jobs and income improved in the region as 
well.  A total of 2,000 new hectares are ready to be planted 
with new cocoa plants from nurseries owned by farmers 
associations, increasing to more than 20,000 hectares. 
Approximately 500 farmers are completing a basic training on 
cocoa farming and post-harvest technologies through the 
highlight successful Farmers Field Schools.  The Coffee 
Growers Cooperatives Association of Rio Intag (ACCRI) is 
collecting and processing arabiga coffee beans to ship 400 
quintals to Japan in early October 2006.  Producers from the 
northern border Amazon provinces continue to export robusta
beans to Colombia at favorable prices. 

Comment 

------- 

¶17.  (C) The Ecuadorian government on balance continues to be 
a good partner in regional counter-narcotics and 
counter-terrorist fights.  The Ecuadorian military and the 
Anti-Narcotics Unit are fully cooperative and open to U.S. 
regional objectives to combat international crime.  The 
recently released "white paper" and Minister of Defense 
Delgado's vow to strengthen the military's security presence 
in the north to counter IAG activity and deny narcotics 
traffickers entry into Ecuador is another indication of a GOE 
focus on the nation's real security threats. 
Ecuador-Colombia military-to-military cooperation at the 
tactical level is also positive and supports USG regional 
objectives.  We remain concerned, however, that military and 
anti-narcotics funding constraints continue to hinder greater 
engagement. 

¶18.  (C) High-level Ecuador-Colombian cross-border 
cooperation is improving, but remains fragile.  Another 
Puerto Nuevo type incident could provide the FARC and 
anti-Plan Colombia elements ammunition to undermine bilateral 
political gains.  Outrage here over the mortar explosion and 
what many view as empty promises by the Colombian government 
to avoid such incidents persists.  With an agreement on 
monetary compensation for the Puerto Nuevo injured still 
pending, the incident remains subject to political 
manipulation.  While it appears that the GOE's approach was 
measured and meant to quell public concern, it becomes harder 
to do so with each fresh incident. 
JEWELL 

=======================CABLE ENDS============================