From: Aftenposten
Date: 30.01.2008
C O N F I D E N T I A L QUITO 000090 
SIPDIS 
SIPDIS 
E.O. 12958: DECL: 01/30/2018 
TAGS: PGOV, EFIN, SNAR, KCOR, EC 
SUBJECT: ECUADOR: CONSTITUENT ASSEMBLY FOCUS UNCLEAR 
REF: A. QUITO 55 B. 07 QUITO 2580 
Classified By: Ambassador Linda Jewell for reason 1.4 (B, D)

1. (SBU)
Summary: As the Constituent Assembly reaches the two-month
mark, members are meeting with various interest groups and
holding private committee meetings, but have yet to debate
publicly any constitutional language. The Assembly has
approved six laws or other documents, including the
controversial tax reform. President Correa´s speech to the
Assembly marking his first year in office and the government´s
denunciation of bribery attempts have been highlights. End
Summary

60 DAYS AND COUNTING 
-------------------- 

2. (SBU)
Since its inauguration on November 29 in Montecristi, the
Constituent Assembly has sometimes appeared more interested in
legislating than in drafting a new constitution. So far it has
approved the tax reform law (Ref A), three "constituent
mandates," and two resolutions. Democratic Left Assembly
member and former Finance Minister Diego Borja explained to
poloff the differences between these legal instruments: Laws
are equivalent to those that the suspended Congress would
approve, constituent mandates are approved under an expedited
process and last only as long as the Assembly is in session,
and resolutions are the Assembly´s internal rules.

3. (U)
The Assembly´s legislative and oversight committee is
currently analyzing two additional bills submitted by the
executive branch. One would regulate land transport, transit,
and road safety. The other deals with restructuring management
of public finances, including bringing the petroleum funds
into the central budget.

4. (C)
Proud and Sovereign Fatherland (PAIS) political bureau member
Augusto Barrera, who is serving as a liaison between the
Executive and Assembly on substantive matters, acknowledged to
the Ambassador on January 24 that each law the Assembly passes
has a political cost. While claiming that 80% of past
constituent assemblies in Ecuador have also legislated, he
said the government would seek consideration of only a minimum
number of laws, namely those necessary for effective
governing.

5. (SBU)
The constituent mandates have addressed diverse topics. One
approved mandate regulates salaries in the public sector so
they do not exceed that of the President. It sets a monthly
ceiling of $5,000, with the exception of personnel
representing Ecuador abroad and "specific strategic jobs."
Another mandate suspended the elections of members of congress
representing two new provinces, Santo Domingo de los Tsachilas
and Santa Elena, until after the official results

SIPDIS 

of the referendum on the new constitution. Ref B described the
first constituent (or constitutional) mandate, which affirmed
the Assembly´s full powers.

INTEREST GROUPS SWARM TO MONTECRISTI 
------------------------------------

6. (C)
The work of the Assembly´s nine constitutional-drafting
committees has centered thus far around consultations with
interest groups, plus executive and judicial officials, and
private committee discussions. The committees and Assembly
leadership have been besieged by requests for meetings on
every imaginable constitutional and legislative topic. Several
committees are also holding meetings outside of Montecristi to
solicit citizen input in specific constitutional areas under
their jurisdiction. Barrera mentioned that PAIS was struggling
with how to balance being responsive to citizen groups with
the need to focus on substance ) he cited a recent meeting
between a group that believes in UFOs and the Sovereignty
committee as an example of how things were out of control to
the point of near absurdity.

7. (SBU)
There are indications that the committees are hard at work
debating constitutional issues behind closed doors. For
example, after a draft text leaked to the press, PAIS assembly
member Betty Amores, the vice president of the Committee on
Reform of State Structure and Institutions, explained during a
January 22 television interview that the committee is
contemplating a number of changes, including the elimination
of the vice presidency and extension of the presidential term
from four to six years. Amores stated that the committee had
not yet reached a consensus on whether immediate reelection of
the president would be allowed under the new constitution.

8. (SBU)
An encouraging sign of seriousness as well as open-mindedness
on at least some issues, the international donor community has
been approached for technical assistance in several areas, in
most cases by request from ministries working with given
committees on specific policies. USAID, for example, has been
asked to provide technical assistance on several issues under
review by the Environment committee.

CORREA SPEAKS TO ASSEMBLY 
-------------------------

9. (SBU)
On January 15, President Correa delivered a speech to the
Constituent Assembly describing his government´s
accomplishments during his first year in office and detailing
ambitious plans for the coming year. Perhaps harking back to
his days as a professor, Correa spoke for more than two hours,
accompanied by a 133-page PowerPoint presentation. A system
for governing through seven regions was among the new
proposals. Correa also urged amnesty for several groups
involved in protests and release from prison of individuals
charged with carrying small amounts of drugs as "mules." Some
opposition Assembly members walked out at the start, arguing
that the Constitution required that the President´s annual
speech be delivered to the Congress, not the Assembly.

A WEEK OF CONTROVERSY 
--------------------- 

10. (SBU)
Minister of Government Fernando Bustamante and Anticorruption
National Secretary Jose Luis Cortazar announced January 22
that a bribery attempt in the Assembly had been discovered.
Authorities detained Bolivar Lopez and Cao Lay Munoz after
PAIS assembly member and former Anticorruption Secretariat
employee Gabriel Rivas claimed that they had offered him USD 3
million to obtain 25 assembly votes against the new
constitution and for re-opening Congress.

11. (SBU)
A video recording that is being used as evidence by the
authorities mentions Patriotic Society Party (PSP) Assembly
member Julio Logrono, which triggered angry responses from the
PSP. During a press conference, Minister Bustamante cast blame
on former PSP President Lucio Gutierrez, who categorically
denied any involvement in the matter.

COMMENT
------- 

12. (C)
Suspicions that PAIS already has a written constitution in its
pocket continue to worry commentators, although PAIS
leadership strongly denies it. The government´s investigation
of acts of corruption implicated the second largest bloc in
the Assembly, which in turn gave the latter ammunition to
claim political persecution. With the perceived lack of
results thus far and with corruption rearing its evil head,
the Assembly needs to demonstrate a greater focus on
constitution drafting if it is going to retain a wide measure
of public support.

JEWELL