VZCZCXYZ0000
OO RUEHWEB

DE RUCNAI #0005/01 1182251
ZNY CCCCC ZZH
O 282251Z APR 09
FM USDEL SECRETARY//LATIN AMERICA//
TO RUEHSP/AMEMBASSY PORT OF SPAIN IMMEDIATE
INFO RUEHC/SECSTATE WASHDC IMMEDIATE
RUEHQT/AMEMBASSY QUITO IMMEDIATE

C O N F I D E N T I A L PARTO 042805 
 
SIPDIS 
 
WHA PLEASE PASS TO USOAS 
 
E.O. 12958: DECL: 04/18/2019 
TAGS: OVIP CLINTON HILLARY PGOV PREL ECON EAID
EFIN, ETRD, KDEM, SNAR, SMIG, SOCI, EC 
SUBJECT: (C) Secretary Clinton's April 18, 2009, 
conversation with Ecuadorian President Rafael Correa 
 
¶1.  (C)  Classified by:  Paul D. Wohlers, Deputy 
Executive Secretary, S/ES, Department of State. Reason 
1.4.(d) 
 
¶2.  (C)  April 18, 2009; 3:00 p.m.; Port of Spain, 
Trinidad and Tobago. 
 
¶3.  (C) Participants: 
 
U.S. 
The Secretary 
A/S Thomas A. Shannon, WHA 
Amb. Hector Morales, USOAS 
Deputy Chief of Staff Huma Abedin, S 
Deputy Chief of Staff Jacob Sullivan, S 
Heide Bronke Fulton (Embassy Notetaker) 
 
ECUADOR 
President Rafael Correa 
Foreign Minister Fander Falconi Benitez 
Minister Natalie Celi, Minister of Social Development 
Amb. Carlos Jativa Naranjo, Under Secretary for 
Multilateral Relations 
Amb. Miguel Carlo Benites, Diplomatic Coordinator 
Amb. Denys Toscano, Counselor, Mission to the OAS 
 
¶4.  (C) SUMMARY.  Secretary Clinton and Ecuadorian 
President Correa met for a cordial discussion that 
emphasized a mutual desire for a closer relationship 
based on respect and equality; counternarcotics 
cooperation; trade preferences; immigration; and 
economic development.  President Correa characterized 
his and other Latin American governments as often 
misunderstood, differentiating populism from popularity. 
Both leaders agreed on the importance of seeking justice 
through democracy to bring the greatest benefits to 
citizens.  President Correa outlined the benefits of 
Andean Trade Promotion Act (ATPA) preferences to both 
Ecuador and the United States, but said he would not beg 
for ATPA extension.  President Correa posited that there 
was no universal recipe for economic development and 
committed to dialogue with the United States to reduce 
misunderstandings and coordinate solutions.  Secretary 
Clinton solicited ideas for ways to address mutual 
challenges and underscored the need for greater 
cooperation to work together effectively.  END SUMMARY. 
 
------------------------------- 
Seeking a Positive Relationship 
------------------------------- 
 
¶5.  (C) President Correa warmly greeted the Secretary 
and expressed his fondness for the United States and the 
American people despite occasional differences.  He 
stated that at times Latin American governments were not 
well understood; frequently when governments took 
actions that were "non-traditional," they were viewed as 
populist ? which Correa differentiated from being 
popular.  He observed that, although Latin America was 
living its most fully democratic period in history, 
having elections did not automatically mean that 
democracy existed.  He emphasized that democracy equaled 
 
 
justice, which was not yet fully developed across the 
hemisphere, and that democratic governance was 
impossible when injustice and inequality existed.  He 
confirmed the aspiration of his and other regional 
governments for justice for people, between people, on a 
global level.  Countries in the hemisphere sought a 
positive relationship with the United States, but the 
President cautioned that it must be based on respect and 
equality. 
 
¶6.  (C) Secretary Clinton agreed with the importance of 
justice, adding that seeking justice through democracy 
would bring the greatest benefits to citizens.  She 
echoed President Obama's stated intention to reestablish 
hemispheric relations on a more respectful basis.  The 
Secretary emphasized that although disagreements would 
still exist, her goal was to find a way to work together 
on a range of issues, and to promote democracy and 
development to achieve the greatest benefits for both of 
our countries. 
 
¶7.  (C) The Secretary underscored that the Obama 
Administration had turned a page and we did not yet know 
what would be written on it.  We shared the same values, 
faith, and respect for human dignity, and we must find a 
way to translate rhetoric into reality.  She proposed a 
broader strategic dialogue that would transcend the 
problems between our two countries and enable us to work 
together to determine sensible solutions.  The Secretary 
expressed her understanding of frustrations with 
injustice that led to a desire to short-circuit the 
process, but emphasized the need to continue to work 
together pragmatically to identify mutually beneficial 
solutions.  President Correa agreed and observed that we 
shared in common the characteristic of pragmatism, and 
emphasized his preference for concerted, collective 
action. 
 
--------------------------------------------- ----- 
Counternarcotics Cooperation and Trade Preferences 
--------------------------------------------- ----- 
 
¶8.  (C) President Correa raised the issue of the Andean 
Trade Preferences Act (ATPA), under which Ecuador 
received trade benefits that were tied to its 
cooperation in counternarcotics efforts.  He observed 
that countries spent millions of dollars each year to 
fight drugs and that although the Government of Ecuador 
(GOE) was committed to this, he also was committed to 
domestic concerns ? pointing out that more children in 
Ecuador die of diarrhea daily than of drug abuse, and 
that every dollar spent on counternarcotics activities 
took money away from other domestic concerns.  He opined 
that Ecuador was one of the most successful Andean 
countries in the fight against drugs and the only one 
that did not grow coca, yet the GOE was forced routinely 
to beg to have preferences extended.  He underscored 
that ATPA paid dividends not just for Ecuador, but also 
for the United States in terms of reduced coca 
cultivation.  President Correa confirmed that he had 
directed his diplomats in Washington not to beg to 
 
 
extend preferences when ATPA was reviewed in June, and 
expressed his hope to pursue a permanent trade agreement 
at some point in the future. 
 
------------------------------------ 
Immigration and Economic Development 
------------------------------------ 
 
¶9.  (C) President Correa raised the issue of immigration 
and emphasized that any discussion should focus on a 
holistic approach that included job creation, access to 
education, and the creation of opportunities at home so 
citizens would not be compelled to seek them overseas. 
He expressed his view that economic development plans 
historically had over-emphasized multinational companies 
at the expense of sovereign states.  Secretary Clinton 
acknowledged the President's concerns and observed that 
many were concerned about the perceived imbalance of 
power in the region.  She proposed exploring proposals 
for reforms that the GOE would like to see.  She 
characterized employment as the top problem facing the 
hemisphere, emphasizing the need to help citizens find 
work in a global economy and to make local economies 
competitive in a way that respected property rights and 
the rule of law.  She observed that expropriating or 
driving out multinational corporations also would drive 
out investment, technology, and competitive advantage, 
and emphasized the need to identify a 21st century 
blueprint for the best way to achieve market conditions 
to directly improve citizens' lives. 
 
¶10.  (C) President Correa stated his preference for 
centrally-planned actions, stemming from his analysis of 
reality in Ecuador ? something that was not always 
understood in the United States.  He opined that a 
market economy had given the United States great 
benefits, but it could be a disaster in other countries 
with great socio-economic asymmetries.  In Ecuador, the 
role of the state was vital to generating financing.  He 
observed that the U.S. economy was competitive, and thus 
the United States would inevitably come out on top in 
pursuing free trade and competitiveness.  The United 
States did not become the modern economic power that it 
was today without relying on protectionism; what Ecuador 
was doing today, the United States did in the nineteenth 
century.  He emphasized that Ecuador's view and its 
actions were often misunderstood in the United States; 
President Correa underscored that there were no 
universal recipes for economic development and committed 
to dialogue with the United States to reduce 
misunderstandings and coordinate solutions.  Secretary 
Clinton pointed to the example of the Scandinavian 
countries in the early 20th century, offering a model to 
build institutional capacity.  She further emphasized 
the need for greater cooperation to build the confidence 
and trust necessary to work together effectively.  There 
was room for differences on an economic approach.  The 
U.S. view was that democracy, development, justice and 
the rule of law must go hand in hand, and we would work 
together to find the right balance. 
CLINTON