

Currently released so far... 12648 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AORC
AF
AU
ASEC
AMGT
AS
APER
AR
AG
ARF
AJ
AA
AINF
APECO
AODE
ABLD
AMG
ATPDEA
AE
AEMR
AMED
AGAO
AFIN
AL
ASUP
ASECKFRDCVISKIRFPHUMSMIGEG
AID
ASCH
AM
AORL
ASEAN
APEC
ADM
AFSI
AFSN
ADCO
ABUD
AN
AY
AIT
AGR
ACOA
ANET
ASIG
AMCHAMS
AGMT
AADP
ADPM
ATRN
ALOW
ACS
APCS
AFFAIRS
ADANA
AECL
ACAO
AORG
AROC
AO
ACABQ
AX
AMEX
AFGHANISTAN
AZ
AND
ARM
AQ
ATFN
AMBASSADOR
ACBAQ
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
AFU
BR
BTIO
BY
BO
BA
BU
BL
BN
BM
BF
BEXP
BK
BG
BB
BTIU
BBSR
BRUSSELS
BD
BIDEN
BE
BH
BILAT
BC
BX
BT
BP
BMGT
BWC
CS
CA
CH
CD
CO
CE
CU
CVIS
CASC
CJAN
CI
CPAS
CMGT
CDG
CIC
CAC
CBW
CWC
COUNTER
CW
CT
CY
CNARC
CACM
CG
CB
CM
CV
CIDA
CLINTON
CHR
COE
CR
CIS
CDC
CONS
CF
CODEL
COPUOS
CIA
CFED
CARSON
CL
CROS
CAPC
CTR
CACS
CN
CBSA
CEUDA
COM
CONDOLEEZZA
CICTE
COUNTRY
CBE
CKGR
CVR
COUNTERTERRORISM
CITEL
CLEARANCE
CARICOM
CSW
CITT
CDB
CJUS
CTM
CAN
CLMT
CBC
EAID
ECON
EFIS
ETRD
EC
ENRG
EINV
EFIN
EAGR
ETTC
ECPS
EINT
ES
EIND
EAIR
EU
EUN
EG
EPET
ELAB
EWWT
EMIN
ECIN
ESA
ER
ETRDEINVECINPGOVCS
EAIG
ET
ETRO
ELTN
EI
EN
EUR
EK
EUMEM
EPA
ENGR
EXTERNAL
EUREM
ELN
EUC
ENERG
ENIV
EZ
ERD
EFTA
ETRC
ETRN
EINVECONSENVCSJA
EEPET
EUNCH
ESENV
ENNP
ENVI
ETRDECONWTOCS
ECINECONCS
EFINECONCS
ELECTIONS
ENVR
EXIM
ERNG
ECA
EINVEFIN
ETC
EAP
ECONOMY
EINN
ECONOMIC
EXBS
ECUN
ENGY
ECONOMICS
EIAR
EINDETRD
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
EFIM
EAIDS
EREL
EINVETC
ECONCS
ETRA
IC
IV
IAEA
IR
IO
IT
IN
IS
IZ
IMO
IPR
IWC
ICAO
ILO
ID
ICTY
ICJ
INMARSAT
INDO
IL
IMF
IRS
IQ
IA
ICRC
IDA
IAHRC
IBRD
ISLAMISTS
IGAD
ILC
ITU
ITF
INRA
INRO
IDP
ICTR
IEFIN
IRC
ITRA
ITALY
INRB
INTELSAT
IBET
IRAQI
ISRAELI
IIP
ITPGOV
ITALIAN
INTERNAL
INTERPOL
IEA
INR
IZPREL
IRAJ
IF
ITPHUM
ISRAEL
IACI
KBTR
KPAO
KOMC
KCRM
KDEM
KHIV
KBIO
KTIA
KMDR
KNNP
KSCA
KTIP
KWMN
KIPR
KCOR
KRVC
KFRD
KPAL
KWBG
KE
KTDB
KUNR
KSPR
KJUS
KGHG
KAWC
KCFE
KGCC
KOLY
KSUM
KACT
KISL
KTFN
KFLU
KSTH
KMPI
KHDP
KS
KHLS
KMRS
KID
KN
KU
KAWK
KSAC
KCOM
KAID
KIRC
KWMNCS
KMCA
KNEI
KCRS
KPKO
KICC
KPOA
KV
KDRG
KIRF
KSEO
KVPR
KSEP
KTER
KBCT
KFIN
KGIC
KCIP
KZ
KG
KWAC
KRAD
KPRP
KTEX
KNAR
KPLS
KPAK
KSTC
KFLO
KSCI
KIDE
KOMS
KHSA
KSAF
KPWR
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KFSC
KRIM
KVRP
KENV
KNSD
KCGC
KDDG
KPRV
KTBT
KWMM
KMFO
KMOC
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KPAI
KO
KVIR
KREC
KX
KR
KCRCM
KBTS
KOCI
KGIT
KNUP
KPAONZ
KNUC
KNNPMNUC
KERG
KTLA
KCSY
KTRD
KNPP
KJUST
KCMR
KRCM
KCFC
KCHG
KREL
KFTFN
KLIG
KDEMAF
KICA
KHUM
KSEC
KPIN
KESS
KDEV
KWWMN
KOM
KWNM
KRFD
KMIG
KRGY
KIFR
MARR
MOPS
MASS
MX
MNUC
MCAP
MO
MR
MEPP
MTCRE
MAPP
MEPN
MZ
MT
ML
MA
MY
MIL
MD
MASSMNUC
MU
MK
MTCR
MUCN
MAS
MEDIA
MAR
MC
MI
MQADHAFI
MPOS
MTRE
MASC
MG
MARAD
MRCRE
MW
MP
MOPPS
MTS
MLS
MILI
MEPI
MEETINGS
MERCOSUR
MCC
MIK
MAPS
MV
MILITARY
MDC
NATO
NZ
NL
NO
NK
NU
NPT
NI
NG
NEW
NSF
NA
NPG
NSG
NE
NSSP
NS
NDP
NSC
NAFTA
NH
NV
NP
NPA
NSFO
NT
NW
NASA
NORAD
NATIONAL
NGO
NR
NIPP
NZUS
NC
NRR
NAR
NATOPREL
OEXC
OTRA
OPRC
OVIP
OAS
OIIP
OSCE
OREP
OPIC
OFDP
OMIG
ODIP
OVP
OSCI
OIC
OECD
OIE
OPDC
ON
OCII
OPAD
OBSP
OFFICIALS
OPCW
OHUM
OES
OCS
OTR
OSAC
OFDA
PGOV
PREL
PM
PHUM
PTER
PINR
PINS
PREF
PARM
PL
PK
PU
PBTS
PBIO
PHSA
PE
PO
PROP
PA
PNAT
POL
PLN
POLITICAL
PARTIES
PCUL
PAK
PGGV
PAO
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PAS
PGIV
PHUMPREL
PCI
PG
POGOV
PHUMPGOV
PEL
POLITICS
POLICY
PINL
PP
PREO
PAHO
PBT
PMIL
POV
PRL
PDOV
PTBS
PRAM
PREFA
PSI
PAIGH
POSTS
PALESTINIAN
PARMS
PROG
PTERE
PRGOV
PORG
PS
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PMAR
PRELP
PINF
PNG
PFOR
PUNE
PGOVLO
PHUMBA
PSEPC
PNR
POLINT
PGOVE
PHALANAGE
PARTY
PDEM
PECON
PROV
PGOC
PY
PHUH
PF
PHUS
RU
RS
RO
RW
RP
RFE
REGION
REACTION
REPORT
ROOD
RCMP
RM
RSO
ROBERT
RICE
RSP
RF
RIGHTS
RIGHTSPOLMIL
RUPREL
RELATIONS
SENV
SU
SCUL
SOCI
SNAR
SL
SW
SMIG
SP
SY
SA
SHUM
SZ
SYRIA
SF
SR
SO
SARS
SN
SC
SIPRS
SI
SYR
SEVN
SG
SPCE
SK
STEINBERG
SH
SNARCS
SAARC
SCRS
SENVKGHG
SAN
ST
SIPDIS
SNARIZ
SNARN
SSA
SPCVIS
SOFA
SEN
SANC
SWE
SHI
TW
TU
TBIO
TSPL
TPHY
TRGY
TC
TT
TSPA
TINT
TERRORISM
TX
TR
TS
TN
TD
TH
TIP
TNGD
TI
TZ
THPY
TP
TBID
TF
TL
TV
TK
TO
TRSY
TURKEY
TFIN
TAGS
UN
UK
UNSC
UNGA
US
UNESCO
UP
UNHRC
UNAUS
USTR
UNDP
UNEP
UY
UNCHR
UG
UZ
UNPUOS
USEU
UNMIK
UNDC
UNICEF
UV
UNHCR
UNCHC
UNCSD
USOAS
UNFCYP
USUN
USNC
UNIDROIT
UNO
UNCND
USPS
USAID
UE
UNVIE
UAE
UNODC
UNCHS
UNFICYP
UNDESCO
UNC
Browse by classification
Community resources
courage is contagious
Viewing cable 10QUITO37, China cautiously seeks to expand commercial interests in
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #10QUITO37.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
10QUITO37 | 2010-01-26 22:21 | 2011-04-16 20:30 | CONFIDENTIAL | Embassy Quito |
Appears in these articles: http://www.eluniverso.com/2011/04/16/1/1355/cable-245644.html |
VZCZCXYZ0100
RR RUEHWEB
DE RUEHQT #0037/01 0262221
ZNY CCCCC ZZH
R 262221Z JAN 10
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 0689
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHBJ/AMEMBASSY BEIJING 0008
RUEHBO/AMEMBASSY BOGOTA
RUEHBR/AMEMBASSY BRASILIA
RUEHCV/AMEMBASSY CARACAS
RUEHGL/AMCONSUL GUAYAQUIL
RUEHLP/AMEMBASSY LA PAZ
RUEHMO/AMEMBASSY MOSCOW 0005
RUEHPE/AMEMBASSY LIMA
RUEHQT/AMEMBASSY QUITO
C O N F I D E N T I A L QUITO 000037
SENSITIVE
SIPDIS
E.O. 12958: DECL: 2035/01/26
TAGS: ECON EFIN SENV ENRG EC CH
SUBJECT: China cautiously seeks to expand commercial interests in
Ecuador
REF: 09 QUITO 1059; QUITO 5; 09 QUITO 934 ...
id: 245644
date: 1/26/2010 22:21
refid: 10QUITO37
origin: Embassy Quito
classification: CONFIDENTIAL
destination: 09QUITO1059|09QUITO934|10QUITO5
header:
VZCZCXYZ0100
RR RUEHWEB
DE RUEHQT #0037/01 0262221
ZNY CCCCC ZZH
R 262221Z JAN 10
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 0689
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHBJ/AMEMBASSY BEIJING 0008
RUEHBO/AMEMBASSY BOGOTA
RUEHBR/AMEMBASSY BRASILIA
RUEHCV/AMEMBASSY CARACAS
RUEHGL/AMCONSUL GUAYAQUIL
RUEHLP/AMEMBASSY LA PAZ
RUEHMO/AMEMBASSY MOSCOW 0005
RUEHPE/AMEMBASSY LIMA
RUEHQT/AMEMBASSY QUITO
----------------- header ends ----------------
C O N F I D E N T I A L QUITO 000037
SENSITIVE
SIPDIS
E.O. 12958: DECL: 2035/01/26
TAGS: ECON EFIN SENV ENRG EC CH
SUBJECT: China cautiously seeks to expand commercial interests in
Ecuador
REF: 09 QUITO 1059; QUITO 5; 09 QUITO 934
CLASSIFIED BY: Heather M Hodges, Ambassador, Department of State,
EXEC; REASON: 1.4(B), (D)
Summary
------------
¶1. (C) China's Ambassador to Ecuador, Cai Runguo, told Ambassador
January 15 that the PRC is moving forward with negotiations with
the GoE on financing various commercial projects, but that
Ecuadorian President Correa's criticisms of China's tough
negotiating position had caused some concern in Beijing. It
appears the GPRC-GoE negotiations over the $1.7 billion Coca Codo
hydro project are progressing, although it is still unclear whether
Correa will accept China's standard commercial loan conditions
(particularly access to international arbitration). Cai noted he
was confused by the GoE's efforts to strengthen ties with Iran,
asked whether Correa's frequent criticism of the U.S. was
ideological, and mentioned that China is maintaining good and
economically beneficial relations with Venezuela. Clear from Cai's
remarks and those of other Chinese officials, China believes it has
significant economic interests in Ecuador, but is moving cautiously
in talks with a GoE government that it does not seem to fully
trust. End Summary.
Correa's Comments Disconcerting
---------------------------------------------
¶2. (C) Chinese Ambassador Cai Runguo called on the Ambassador in
her office on January 15, at Ambassador Cai's request. Ambassador
Cai was accompanied by his political officer, Tiefei Xu. Embassy
DCM also sat in. Ambassador Cai expressed interest in a range of
U.S.-Ecuadorian bilateral issues, as well as Obama administration
policy towards Latin America, but was open to discussing Chinese
issues in Ecuador and Venezuela.
¶3. (C) Ambassador Cai indicated that China was disconcerted by
Correa's verbal attack in December 2009 over China's negotiating
position for loans to Ecuador, in which Correa alleged that even
the IMF had not treated Ecuador as poorly as did China (Ref A).
According to local press reports, Ecuadorian Finance Minister
Viteri traveled to China in mid-January 2010 to negotiate various
credits with the PRC government. Cai confirmed that
Chinese-Ecuadorian loan/investment agreements were proceeding, but
argued that China was "substantially" maintaining insistence on the
guarantees that Correa found objectionable and had complained about
publicly during his December remarks. Later in the conversation
Cai also expressed China's unhappiness with Ecuador's continued
maintenance of safeguard tariffs, and concern over when they would
be lowered.
¶4. (C) The focus at the moment is a 1.7 billion dollar loan from
China's export-import bank to construct the Coca-Codo Sinclair
hydroelectric project. If terms can be agreed on that loan, Cai
said there is another one billion dollar loan from China's
development bank, for projects yet to be defined. As part of the
arrangement, the GoE has designated the Chinese firm Sinohydro as
the chief contractor on the Coca-Codo project. China's agreements
stipulate bilateral negotiations first in the event of disputes,
but then provide recourse to international arbitration. China is
"still negotiating" this clause with Ecuador. (Ecuador's new
constitution bars the GoE from entering into contracts that include
international arbitration, and the GoE has publicly announced its
intention to terminate most of its Bilateral Investment Treaties,
including with the U.S., mainly because they allow dispute
settlement via international arbitration mechanisms.)
¶5. (C) Ambassador Cai said that Correa does not seem to understand
that China is negotiating "commercial deals" with Ecuador, similar
to deals with other countries, and that China would not want to set
a concessionary precedent for other countries. In general, Cai
said Correa wants Chinese investment in Ecuador, in petroleum,
mining, telecommunications and infrastructure. China is "studying
the investment situation." Ecuadorian Press quoted Finance
Minister Viteri on January 13, from China, stating that the GoE had
signed a memorandum of understanding on a loan from China's
Export-Import Bank to finance Coca-Codo. Although she acknowledged
that talks were still ongoing, GoE sources commented that the MOU
represented the end of the difficult phase of the talks.
Interest in Exploiting Yasuni ITT oil reserves
--------------------------------------------- -------------
¶6. (C) Prompted by the Ambassador's query, Cai stated that "all"
petroleum companies were interested in developing the Yasuni-ITT
petroleum field if conservation initiatives fell through. (See
Refs B and C for background on Yasuni ITT and the recent political
crisis it caused in Ecuador, including the resignation of Foreign
Minister Falconi.) Cai mentioned that Russia was interested in
Block 31 in Ecuador, which is in the Yasuni National Park and next
to the ITT block. (PetroBras previously held the Block 31
concession but returned it to the GoE.) According to local press
reports, PetroEcuador consulted with foreign oil companies,
including Chinese oil company SINOPEC, on the possible exploitation
of Yasuni ITT as recently as 2008.
¶7. (C) The Ecuadorian government had also solicited Chinese
involvement in building the Refinery of the Pacific, a joint
initiative of Venezuelan President Chavez and Correa. However,
Ambassador Cai pointed out that if Chavez goes from power, would a
subsequent government continue with crude deliveries? If
Yasuni-ITT were developed, Cai seemed to believe that could change
the calculus for the Pacific Refinery. (Ecuadorian press report
that the South Korean company SK Group is slated to build the $12.5
billion refinery, and that Deutsche Bank and China's Export-Import
Bank are considering providing up to $5 billion in financing
between them.)
Skepticism over GoE Interest in Developing Manta as Aviation Hub
--------------------------------------------- ----------------------
---------------------
¶8. (C) Ambassador Cai said that Correa had twice asked China to
look at investing in Manta (site of the former-U.S. Forward
Operating Location) as a transportation node, but Cai said that
Chinese companies were neither interested nor experienced in such
an overseas project. Cai evinced skepticism over Correa's concept
of a Manta-to-Manaus transportation link. When Cai suggested
Russia might be interested in Manta after Correa's Russia trip, the
Ambassador noted that Russian ambassador Yan Burliay had told her
that Russia's interest in Manta at this point was merely as an
aviation stop for airplanes picking up flowers at Latacunga in the
mountains, then proceeding to Manta on the coast to load shrimp and
bananas.
Ecuador's Relationship with Iran and the U.S.; China's Growing
Relationship with Venezuela
--------------------------------------------- ----------------------
--------------------------------------------- ---------
¶9. (C) Ambassador Cai asked what the U.S. thought of Ecuadorian
relations with Iran; what was the benefit to Ecuador? He said he
had asked this of the Ecuadorian Foreign Ministry, which replied
that "various economic projects" were the benefit. The Ambassador
noted our principal concern was Ecuador's budding relationship with
an Iranian Bank that had been designated by the USG for
facilitating proliferation of WMD.
¶10. (C) Ambassador Cai said that China's relations with Venezuela
were good, citing a joint development fund with two-thirds Chinese
capital. The fund originally was for $8 billion, but after Chavez
requested a doubling, was raised to $12 billion. Credits from the
fund are guaranteed by petroleum.
¶11. (C) Cai asked whether Correa's frequent criticism of the U.S.
stemmed from ideology, and the Ambassador answered, yes.
Ambassador Cai nodded and said, "but he is different from Chavez."
He opined that Correa has substantial support in Ecuador but
appears to be losing the middle class.
China's Rapidly Increasing Commercial and Investment Ties with
Ecuador
--------------------------------------------- ----------------------
------------------------------
¶12. (C) China has already shown itself willing to make large deals
in Ecuador (as it also appears to be doing in other oil-producing
states in the region, particularly Venezuela). In July 2009, the
two countries announced a four-year oil sales deal, under which
China providing a $1 billion advance payment. The terms of the
deal reportedly favored China. Ecuadorian press reported that
during the November 2009 visit of Jia Qinglin, Chairman of the
Chinese People's Political Consultative conference (CPPCC) national
Committee, the two countries announced the signing of three
cooperation agreements, including an arrangement to buy Chinese
military planes for Ecuador's Air Force. This was on top of the
January 2009 $60 million deal to purchase an air defense radar
system from the China Electronics Technology Group Corporation.
During his visit, Jia reportedly emphasized the benefits that China
sees in enhancing economic cooperation between the two countries.
He encouraged Chinese companies to increase commercial and
investment ties with Ecuador, noting that Chinese investment in
Ecuador had reached $2.2 billion and also that two-way trade in
2008 was almost $2.5 billion, 50% above 2007 levels.
Comment
-------------
¶13. (C) Faced with a $3-4 billion (or higher) fiscal deficit in
2010, and with no ability to print money or issue debt, and no
intention of returning to the IMF or World Bank, the GoE is
desperate to find large-scale financing from non-traditional
sources. Its efforts to date with Russia and Iran have been a
bust, but China has proven a more willing, if demanding, source of
both financing and investment. Successful conclusion of the Coca
Codo talks would further increase the importance of China to
Ecuador. However, faced with the often counterproductive public
comments of President Correa and a complex investment climate
resulting from the new constitution and apparent GoE ambivalence
about attracting foreign investment, the GPRC is moving cautiously
and making sure to negotiate terms favorable to China.
HODGES
=======================CABLE ENDS============================