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APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 CONFIDENTIAL 97 /GS /CP 11 J s i Ecuador July 1973 NATIONAL INTELLIGENCE SURVEY S :c 1' CONFIDENTIAL NO FOREIGN UISSEM APPROVED FOR RELEASE: 2009/06/16: CI4- R6P01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 WARNING I The NIS is National Intelligence and may not be re- leased or shown to representatives of any foreign govern- ment or international body except by specific authorization of the Director of Central Intelligence in accordance with -:he provisions of National Security Council Intelligence Di- rective No. 1. For NIS comuining unclassified material, however, the portions so marked may be made available for official pur- poses to foreign nationals and nongovernment personnel provided no attribution is made to National Intelligence or the National Intelligence Survey. Subsections and graphics are individually classified according to content. Classification /control designa- tions are: (U /OU) Unclassified /For Official Use Only (C) Confidential (S) Secret APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 GENERAL SURVEY CHAPTERS COUNTF,Y PROFILE Integrated perspective of the subject country Chronology Area Brief a Sum- mary Map TI!E SOCIETY Social structure Population Labor Health a Living conditions Social prob- lems Religion Education Public information e Artistic eapnesion GOVERNMENT AND POLITICS Political evo- lution of the state Governmental strength and +stability Structure and function a Political dy- nounics s National policies Threats to stability The police Intelligence and security Counter subversion and Qounterinsurgency capabilitles THE ECONOMY Appraisal of the economy Its structure agriculture, fisheries, forestry. fuels and power, metals and minerals, manufacturing and cm- struction Domestic trade Economic policy and devebpment International roonomic relations TRANSPORTATION AND TELECOMMUNICATIONS Appraisal of systems Strategic nubility Railnwds Highways in- land waterways Pipolines Ports Merchant marine a Civil air Airfields The telecom system MILITARY GEOGRAI IIY Topography and climate Military geographic regions Strategic Internal routes Approaches: land, sea, air ARMED FORCES The defense establishment joint activities Ground forces Naval forces Air forr.+es INTELL;GENCE AND SECURITY Structure of organizations corncerned with internal security and foreign intelligence, their responsibilities, professional starndanb, and intemiatiorsships Mission, organi- zation. fundions, effectiveness and methods of opera- tion of each service Biographies of hey officials APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 CUADOR Situate for National Definition 1 Eemmmic and Social Diversily Elusive Search for El Dorado At the Cmunm ds Cir "hw Aresfflw ......................1Z su"mry 111sp folio" 12 Thk Cowury revflk war prgmmd for the NIS by Me CewtW Istelhgenc+e Agmq. Aemamb wss mb- ssmftNy cvipkfed by March 1973. CG,4nm% No Fommcr4 Mum APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 4 1;T A-11 ov- E! 4 /_1 �:Za1T/ 4 x1767:Jll0 File N 11I1ZfSihyfly /:ZhhYQZfi bhY:� 9 ..J Struggle for National Definition (c) Regional geographic diversity and the dissimilar economic interests that result, together with racial differences, are the root causes of problems Ecuador has been trying to surmount in a long struggle to define its territory and achieve nationhood. "together with historical experiences that produced deep social cleavages, these factors explain in part the instability of government that also has characterized Ecuador's development. The incumbent military administration of Guillermo Rodriguez has been more responsive than most Ecuadorean governments to the need for social reform and expects to finance social programs with revenues from newly developing oilfields. But it faces fomidable barriers in its quest for the political stabili- ty and economic viability conducive to the reforms that could nurture a genuine national consciousness. Fronting the Pacific Ocean for about 640 miles. Ecuador consists of a triangular wedge of land 103,000 square miles in area that has been uplifted markedly in the middle by the spectacular Andean mountains, The two parallel north -south ranges, their intermontane valleys, and the basin between the ranges together are commonly known as the Sierra, Flanking the moun- tainous backbone on the seaward side is the Costa, a somewhat irregular, hilly to flat lowland. On the landward side is the Oriente, a vast, jungled portion of the Amazon Basin. Mainland Ecuador is supplemented by an archipelago, the Galapagos Islands, lying 600 miles due west in the Pacific Ocean. This topography, ;n conjunction with a combination of trade winds ane ocean currents, results in an ex- tremely diversifici climate, and despite its location astride the isquator �from which Ecuador got its name �much of the country lies in the cool Sierra highlands. As with the Incas before them, the great majority of Spanish colonists settled almost exclusively in the temperate basins of the Sierra, which made Quito the traditional center of the cultural and political life of Ecuador. From the middle of the 19th century, however, there began to develop a populous and economically important regional society centered on QWo. Ecwoder's calWal. cltrrfis the nwwaaku surrmn4log its *,200-feer -hl1h *repay. 4 ^r Co TAB RIENTE t S M WIM ors Ecuador's three historical regions. Unlike present regional boundaries, which generally follow those of the provinces for statistical reporting, these historical regional boundaries approximately .race the 1,600 foot contour line. the port of Guayaquil, and the contest of sectional in- terests resulting from the challenge by the progressive Costa element to the political doininance of the Sierra aristocracy has become a constant in national political life. The Oriente, still thinly settled, remained for most Ecuadoreans little more than a zone of contention with neighbors, particularly Peru, until significant o reserves were discovered in that isolated region in 1967. Tht Galapagos Islands were largely a curiosity of nature �and more so for outsiders than for Ecuadoreans �until 1966, when Ecuador began to en- force its claim to territorial waters for fishing purposes not only for 200 mites off the mainland but extending the same distance from these offshore islands as well. Ecuador's struggle for territorial definition began with the conquest of the aboriginal Kingdom of Quito by the Inca Empire and the selection of Quito as capi- tal of the northern half upon division of the territory w sm r W, APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 by the Inca Huayna Capac between Atahualpu (son of his Quito wife) and Huascar (son of a Cuzco wife). Quito became capital of the whole empire upon the defeat of Huascar by Atahualpa, who in turn was liquidated by the Spanish congv under Francisco Pizarro, It then became a Spanish coiunial city (found- ed in 1534 as San Francisco de Quito by Sebastian de Benaleazar). Throughout the colonial period that lasted nearly 300 'cars. Quito and its surrounding territory fought to survive and to maintain its identity as it was shifted back and forth as an audiencia (royal court of justice, with some political and military func- tions) under the Spanish viceroyalties whose seats were at Bogota and Lima. The struggle continued into the fight for independence. Its proclamation in 1809, though abortive, led finally to liberation from Spain in 1822 and then to separation from the Confederation of Gran Colombia in 1830. Even since independen(v. however, Ecuador has had to maintain the struggle. submitting to losses of claimed territories in the AnJes to Colombia and in the Amazon region to Brazil, Colombia, and Peru. Although Ecuador acceded to a 1904 treaty with Brazil and a 1916 treaty with Colom- bia, it has declared null and void the 1912 Protocol of Rio de Janeiro, which attempted to resolve the border conflict with Peru by awarding the dLputed territory in the Amazon Basin to that country. Ecuador is striv- ing still for further definition of its nationhood by claiming jurisdiction over 200 miles of tuna -rich waters along its coastline. 2 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 Z Y l� Economic and Social Diversity Climatic conditions associated with Ecuador's varied terrain range from the strictly tropical, con- tinuously hot and humid conditions of the eastern lowlands of the Oriente and the northwestern lowlands of the Costa to the permanent snowscapes of the high Andes in the Sierra. Within the Sierra, below the timber line, lies the Quito basin, described by many as a "laud of eternal spring," and numerous similarly temperate intermantane valleys; at lower altitudes there are subtropical pockets. The coastal region, too, is divided into the burning hot and humid area of the north and the hot, dry desert of the south. Except for the recent petroleum bonanza, mineral resources have been discovered only in small quantities in Ecuador as compared with neighboring Andean countries. Claims to and exploitation of abundant fisheries in the Pacific have been initiated with determination and some success. The tourist attraction of the Galapagos Islands shows promise for continued development. Ecuador's basic resources consist chiefly of its tropical forests, which cover an estimated 55% of the land area and are yet to be fully exploited, and a climate that combines with the soil and an adequate labor supply to produce virtually any temperate or tropical crop, the latter in fair abundance. Agriculture, therefore, as has been the case for four centuries, is the mainstay of the economy, despite the fact that a scant I M of the land surface is arable. The output of the two principal agricultural areas �the Sierra and the Costa �is directly related to their geography and climate. Since colonial times, the principal products of the Sierra have been grains, livestock, and root crops for domestic consumption; planters of the fertile Costa plains, whose contribution to the economy became significant only after the mid -19th century, have specialized in cocoa, coffee, and more !ecently bananas� largely for export. The location of economic resources and the manner of their development, t,.t least until the late 19th cen- tury, have contributed to the pattern of regional divergence of interest and the rigid stratification that are both characteristic of colonial society. Land tenure and labor organization still reflect their feudal origin, particularly in the Sierra. Small subsistence farms (minffundim) predominate in terms of numbers of units but hold only one -tenth oir the land, while large estates (latlfundios) with over 250 acres account for almost one -half. Indians including the true Indian and such derivatives as the mestizo (Spanish- Indian) and moutuolo (Indian -Negro- Caucasian), who alto- gether constitute 80% of the population� perform most of the manual labor They serve as agricultural workers (whose numbers compose more than half of the labor force), nonskilled urban laborers, and domestics. The characterization of the perpetually poor non Furor an masses dominated by a small, wealthy, white minority closely reflects Ecuador s socioeconomic reality �the majority of the people con- tinue to live on a subsistence level and an estimated one -third to one -half of the total population rema:ns outside the money ^cunomy altogether. Ecuador is a mosaic of racial and cultural elements. The socially, economically, and politically dominant whites nia'ce up 10% of the population-, Indians ac- count far approximately 40%: a wide range of Ecuadoreans of Indian- Caucasian as well as In- dian- Negroid- Caucasian combinations mane up another 40 'r; and a small number of Negroes, Orien- tals, and others constitute the remainder. Rigidifying this ethnic diversity is a class system that has been fair- y well entrenched since colonial times but is less es- tablished in the Costa than in the Sierra. The masses consisting at the bottom of the Indian peasants and above them the rural Sierra mestizos, rural Costa monruvios, domestic servants, artisans, small shopkeepers, and most factory workers �are eparated from the wealthy elite by a wide gulf that is slowly being bridged by an emerging middle class. The white minority has preserved the Spanish heritage kn its language, religion, and intellectual life: in its great estates; and in its domination of political and economic life since the founding of the Eeuadojean republic. Concentrated in the Sierra, the descendants of the Spaniards for three centuries have sought successfully to preserve the essentials of their own way of life: the Roman Catholic Church, despite constitutional experiments with anticlericalism, remains strong, and the principle of hereditary privilege continues to enjoy tacit acceptance. The im- print of the Hispanic cultural traditions imposed by the oligarchic Sierra aristocracy completely overshadows the strong Indian heritage. Its only real challenge comes from the commercial Costa aristocracy, which, albeit Hispanic, has been profoundly influenced by values and changes wrought by foreign trade and Industrialization. 3 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 The Indian heritage is also evident, especially in the Sierra. Somewhat more than half the people of Ecuador speak an Indian language, principally Quechua, and approximately 10% use no other language. The Sierra Indian, who far outnumbers the members of isolated tribes in the Oriente and has been economically crucial since the days of the traditional Hispanic aristocracy, in a real sense leads a double life. He typically wears a mask of humble, uncom- municative, hardworking resignation in his contacts with employers and other outsiders, whereas his behavior within his own group is much more frank, talkative, generous, and convivial. He has remained mostly separate from the stream of national social and political life in his strugvlc for a livelihood that barely maintains his family near a subsistence level. Though impoverished, he maintains a deep attachment to the land. during the colonial era, Sierra Indians demonstrated talent for fine craftsmanship in church construction, ornamentation, and art, and some of their descendants remain competent artisans. Iri a few places, such as Otavalo. Indians have managed through handicrafts, especially weaving, to ac- cumulate enough capital to buy small plots of land. Almost totally dominated by a basically hostile social environment, the Sierra Indians demonstrate neither time for nor interest in politics. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 The wide range of 111CStiZo Ecuadorcans extends from the Sierra into the Costa. Afontuvios also form a significant portion of the coastal population. Mestizos and montuvim in general share the poverty of tine In- dians, although, unlike the Indians, they are ordinarily an integral part of the social and economic life of the country. Many Sierra mestizos are subsistence small farmers; others are town dwelling craftsmen or tradesmen. Costa rnemizos are mostly small farmers, but some are wage earners on large plantations. it4estizos retain some traditional Indian values, but almost always use the Spanish language and European dress, and often live in an urban environment. They normally stress family and kinship loyalties but, unlike the village Indians, show little sense of community. Although both Sierra and Costa mestizos themselves generally identify with the Spanish element in national society, they are disparaged by the whites and scorned by the Indians. Even though the diverse groups making up the pop- ulation of Ecuador have lived in the same territory un- der common rule for more than four centuries, they have not formed a single people with a single language and a shared way of life. The dual cleavage, persistent and intense, that on the one hand sets the whites apart from the bulk of the population, and an the other hand sets the Sierra and Costa whites apart from each other, has forestalled in the past and continues to im- pede the emergence of a national sotlety. Overwhelmed by a poverty that requires virtually his full energy merely for subsistence, (lie Indian, traditionally illiterate and apathetic, has little sense of nationhood. In their striving to rise within the social, economic, and political environment, the mestizos and nsontuotos, rejected by both cultures that spawned them, have developed considerable dissatisfaction and restlessness. These factors. too, are incornpatiWe with the development of a national consciousness. Sd APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5rr APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 The elitist political overlay net Ecuador's economic and social reality has given rise to a series of con- stitutions that barely serve the needs of the whole na- tion. A charter of representative democracy with balanced powers was drawn up at independence, but frequent periods of political disorder and unstable governments have led to new constitutions on the average of once every 9 years. Formal governmental structure, however, has changed little throughout the nearly 130 years of independence. Political struggle during they 19th century focused chiefly an the role of the Roman Catholic Church in government, with separation eventually winning out. The 20th century witnessed the struggle for dominance between the legislative and executive branches. The 1967 Constitu- tion is the most accent, but the 1915 Constitution, which contains some relatively strong checks on the ex- ecutive, was put into effect by the 1972 Nationalist Revolutionary Government insofar as that charter did not conflict with the decrees of the military regime. The presidential story of Ecuador is capsuled in the record of more than 70 changes of government since independence nn 13 May 1&30. In general, the Presidency has been occupied by more or less demagogic strongmen �some military, some civilian --in the deeply embedded cultural trad ?tion called cauddllarno. Although their tenure has been un- certain, unpredictable, and often short, a succession of caudillos has occupied the Presidency. This per- sonalistic rule has precluded the formation of the solid political base that is needed for economic aad social development The chronic instability of government may stem in part from the leaders' failure to deal with widespread economic problems. Rut other major fac- tors are the intense personal rivalries within the small ruling class, strong regional animosities, ineffective leadership in general, and a low level of civic respon- sibility. The charismatic appeal of some leaders, such as five -time President Jose Maria Velasco has propelled the average voter into a kind of mystical confusion of the man and the nation's destiny. Exceptional charismatic personality can work electoral magic, but unfortunately it does not imply an ability to govern. Velasco was not able to impart qualities of effective administration to his governments, and was allowed by the ever present military to complete only one of his terms of office. In line with O cuador s history of a succession -it carrdillos, most political parties have revolved r- tiound the ambitions of such strong men rather thaan fun- damental political programs, and some hove been 6 organized expressly for the purpose of furthering the Political career of a single individual. historically, the two oldest parties represent philosophies characterized by their names, Conservative and Radical Liberal. In fact, however. they defend the interests of the oligarchies of the Sierra and Costa, respectively. The Conservative arty is composed of wealthy land- owners, middle class professionals in small and medium -sized cities, and Roman Catholic priests and intellectuals. The Radical- Liberal Party draws its sup- port from businessmen, middle class professionals in Guayaquil, and anticlerical intellectuals. The smaller Socialist Christian Party is supported by conservatives who are independent of the church, including some landowners, along with middle class professionals and upper class women. of considerable recent importance is the moderately left Concentration of Popular Forces, headed by Guayaquil businessman Assad Bucaram. With a program promoting better living conditions for the poor, Bucaram's strong bid for the Presidency in the aborted 1972 election was a major factor in the military takeover. Fur leftist parties are fragmented and have little influence. The military establishment, along with the police, is constitutionally disenfranchised. Nevertheless, the military leadership has been and still is a key element in political life. Perhaps truly considering itself a reluc- tant neutral, the military has stepped into the ex- ecutive branch at times to become the final arbiter of politics. Basically disenchanted with civilian politics in general, the mility y has expressed disgust at rampant administrative e,rruption, though military officers have themselves at times been involved in graft. Prior to the 1972 intervention, the armed forces ousted the inept civilian government in 1963 and remained in power until 1966. Although apparently not eager to reassume the burdens of government, the armed forces again felt compelled on 17 February 1972 to take over the Velasco government. There was little popular reac- tion for air against the coup. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 Elusive Search for El Dorado The legend of El Dorado, the mythical country that represented gold in abundance, was an attraction to the Spanish adventurers who searched far and wide in the mountains and jungles of the New World seeking to fulfill their fantasies of instant riches. Althougn no abundant mother lode was ever found, new generations of dreamers and seekers carry on. Pros peri- ty truly has been elusive for Ecuador as a nation, though some individuals and families have achieved wealth, A poor, small country which produces hardly any capital goods and few of the devices that are re- rluired for the dev: lopment of modern agriculture and industry, Ecuador' ability to fi!I its material needs is highly dependent upon its capacity to import. which in turn depends upon its r ap Acity to produce exports and its ability to attract foreign capital. Ecuador still is basically rural, and agricultural output is nearly evenly divided for export and domestic consumption. Large imports are required, partienlarly of wheat. Agricultural growth has been slow and is a powerful drag in terms of overall growth of the economy. Production for domestic consumption, although in- creasing at the same rate as production for export, nas not kept up with demand because of the rapid popula- tion increase --the current arinual population growth rate of 3.4% is second only to that of Venezuela in South America. Ecuador's recent balance of payments problems follow directly from the widening gap between rapidly rising import demands and slowly in- creasing exports. The beginning of modem commercial life in Ecuador came with the expansion of exports of cocoa after 1870. Reaching a peak between 1910 and 1925, cocoa declined commercially until 1948, but by 1971 it was back near its highest export Ievei, accounting for one -tenth of export earnings. Other tropical plantation products came to the rescue of Ecuadorean exports during the period of decline in cocoa, rice and coffee being the mainstays until bananas took the lead after 1945. By 1950 Ecuador was the third largest banana producer in the world, and its share of about 41 of world banana exports rose to more than 251 during the 1960's. Since 1964 it has maintained omth its export volume and its position as number one exporter, partly by switching to the s.tuw marketable Cavendish varie- ty of "green gold." The nation's trade balance, naturally, has been highly sensitive to erratic fluc- tuations of world market prices for its chief export products. Although not as vulnerable as some countries that depend on the export of only one or two products. Ecuador's reliantx on bananas. c- offev, cfwou, and sugar for Wei or more of its total foreign exchange ear- nings nevertheless has been precarious. Despite the flashiness of major agricultural export production at some times, economic development, particularly of the agricultural sector producing for domestic consumption. has been painfully slow. The list (if factors impairing gr is long: A limited amount of arable land combined with the traditional land tenure system and the very poverty of tile Indian laborers forestalls anything beyond subsisivrice agriculture; a lack of technical exp rtise results in the widespread application of primitive methods of sowing and harvesting; a deficient marketing structure results from a sparse and low quality transportation system. rugged geography, and high construction costs; the great expense of refrigeration and other forms of preservation lead to ina&ILlate supply and storage facilities; and n traditional reliance on private funds for development snake for a general absence of effec- tive agricultural credit. Solutions by the government to the restraints on agricultural production have been limited and sporadic. But there is a positive side. A modest program of agrarian reform was carried out by the 1963.66 military regime: 11trasiprrngaje. a feudal system whereby Indians were allowed to live on miniplots in return for labor on hu ge estates, Has abolished. and some government lands were sub divided and resettled. Public investment, com- plemented by international financial assistance, has improved the highway system as well as maritime facilities at Guayaquil. A program of agricultural diversification is receiving prime emphasis, African palm oil growing on old banana plantations and in- creased plantings of soybeans and peanuts being specifically encouraged. And the answer to improving economic development for the urban areas has focused mainly on expanding manufacturing, particularly as thousands of migrants to the cities have crowded the scene to Increase the problems related to rapid ur- banization. Urban migration, indeed, is one manifestation of Ecuador's socioeconomic problem. It sterns from the rapid population increase �from 3.2 million at the time of the 1930 census to 6.6 million at the beginning of 1973 --and the greater employment opportunities in 7 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 urban areas. Even before this, population pressure on the agricultural land had established a migrational trend not only io the cities but from the Sierra to the Costa, so that, whereas less than 107: of the population lived in the Costa at the end of the colonial 1k�riod, by 1972 the populations of the Sierra and the Costa were abot., dual. In ;addition to the agricultural developmental problem inherent in a race between prMuction and constant population growth, urbaniza- tion and the population growth in general have accented demands for employment, housing, educa- tion, and other social services. 'rhe elusive search for El Dorado continues, as an ex- pe;ted improvemen! in Ecuador s economic situation \sIM poehme has 1wec ushered in by a petro }cum Immin. Veposits of this "black gold" had been exploited since the 1920's in the Peninsula de Santa Elena in the Loma region, and until the mid- 1950's &rrovided for the bulk of domestic requirements. But the 1960's witnessed rapid depletion of known reserves, as well as ineira:.ed de- mand. Fortunately, in the Oriente a Texaco -Gulf con- sortium came up with a significant discovery of oil in 1967. This led to investment in exploration and de-elopment that included a more than 300 -mile, 2u- to 26- inch- diameter crude oil pipeline fmm fields around Lago Agrio across the high Andes to storage and loading i- eilities adjacent to the port of Esmeraldas. Foreign exchange earnings from petroleum are expected to net approximutely USS130 million in 1973, which would amount to mo. e than half the value of total 1971 export earn'ngs. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 1 r l i At the Crossroads Prospects for paying for social reform with the benefits expected from economic growth are problematical, kIven Ecuador's history of political in- stability. The turmoil deriving from regional disunity, deep ethnic divisions, indian apathy, and the huge challenge of food production remains a very great con ctrn. Politicians all ton frequently praise the richness and potential of their land but falter in pushing for its balanced development. At the some time. developments of the 20th century, particularly since World War It, have mutco regional hostilities somewhat. Population shifts, combined with improved transportation and comrranications which have made more people aware of existing inequities, have focused the concern of the political and social elite more on orob #ems relative to urbanization and the need for in- tegrated economic advancement than on their traditional dilfereaces. It may be that an awakening of national dignity, ex- pressly evoked by President Velasco in his 1960 in- auguration when he rejected the 1942 Protocol of Rio de Janeiro, will serve as a catalyst, as o larger propor- tion of the populace becomes conscious of its distinc- tive Ecuadorean character amid foreign buffetings in the world arena. Stimulation of such an identity is natural consequence of seeking to find economic sup- port regionally in the Latin American Free Trade Association, the Andean 5ubregional Pact, and the An- dean Common Market. The stress on increased foreign trade and the augmented flow of foreign capital, characteristic of recent years, can have a similar effect. Certainly, the determination with which Ecuador af- firms its claim to 200 mile limits of territorial seas against foreign powers such as the United States can be expected to stimulate national sentiment. And fun- damental differences between Ecuador s position on jurisdict and exclusive fishing rights and the traditional U.S. concept of freedom of the seas which have come to a head in "tuna war" incidents �are nol likely to disappear in the forsecable futu. Even as the flowing "black gold" of the newly dis- covered oil has set the stage for changing the nation's internal complexion, the diverse members of Ecuadorean society may be moved closer together by external pressures as well. The promise of an increase in government proceeds resulting from oil revenues brings a gm-At opportunity for easing chronic national budget problems, for relieving balance of payments streins, and for financing public investment in roads. communicatiofis, electric power, agrarian reform, agricultural extension, health, education, and welfare. But dangers also underlie the oil boom, with both the government and the public tending to forget that in contrast to the potentially renewable soil resources. that support agriculture, petroleum resources are finite. Nevertheless, current resources provide Ecuador with an unprecedented opportunity for advancement. At this juncture in its development, 6cuadoi s military government has been trying to apply the ex- perience and special abilities of the armed forces to the complexities of government and economics, and it has had limited success. Gen. Guillermo Rodriguez Lara calls his government revolutionary and nationalist. The failure of the military to set forth a clear reformist strategy, however, indicates disagreement between moderates and liberals within the govemmerf which also parallels Interservice and regional rivalries, since the more radical point of view comes from the coastal naval faction. A moat question is whether a lack of military consensus for an adequate reform program will impair the execution of policies that can forestall widespread public disenchantment with the regime as it stands at the crossroads. V .I,, I APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 Chronology Woe) 146" Inca Tupae Yupanqui conquers southern pruvtnces of F.cuadur. 1526 Tupac Yupanqul's non 1lualna Capac dies, dividing his kingdom hetweco Iluasear, in the south, and Atahualpa in the north. Civil wars reRult, weakening the Incas, with Atahualli s the ultimate victor. 1534 Colonial Quito is founded by Sebastlan de llenalcater after Inca settlement is burned by retreating Indians. ISO Quito is made it scat of the Royal Audiencia. 1715 Economic griovancen lead w pnpular revolt. 1776 -1 A" Indian pdtaantx engage In four uprisings. 1822 Ifaltle of Pichinehn secures Ecuadorean independence from Slain; Ecuador Joins Cola -ibis and Venezuela in the Cun- federation of Gran Colombia. 1 us Ecuador scccdc" from gran Colombia to form an independ- ent republic. 18W75 Gxbriel Garcia Moreno dominates politics In attempt to build a theocratic state. Isis Liberalism triumphs under Eloy Alraro. 1925 Milstary revolta agalnst politiral elite dominated by coastal bankers. 1924 .sass+ Smarts Velasco lbarra in elected President. Isis Yetmeo is deposed. 1941 Jdl- August Fcusdor zuffers humiliating military defeat by I'cru in border war. 1942 Jaaaar= Protocol is signed at Pro do Janeiro defining the -puted borders with Peru wad providing for their definitive Jemnren. Lion, under guArantee of Chile, Argentina, MAO. and the United States. 1914 My-J rfe Coup returns Velaaeo to power. 1947 Au ffesl velasco is ousted by military coup. September Carlos Julio Aroseaena is declared lnte.-im President by Congress. 1946 Joe Galo Plana ]Amww is elected President in a fair national election. 1652 MW Velasco, candidate of the National Velwquiots Afovemeot, in elected President In the firer transfer of power by an elected President to an elected successor in over three decades. 1956 JIMe Camillo Ponce �nriquez is elected Predden the first elected to the office by ti;,a Conservatives in 60 years. IM ime Y is Mpla elected President. 1963 November Velaseo, ousted by popular and military action, is replaced by leftWt Vice President Carlos Julio Arosemens Monroy, son of pravloua Ptwident. 10 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 1963 My Aroscmena� alcoholic, inept, and lenient toward Consmu- niPtr-- is ousted by armed forces; military junto taken power. 1964 July Junta announcers agrarian and other reforms aimed at allaying criticism and discontent. It" Mares May New l.'nUstitulion in adopted; Aronnincnr_ term is extended to 1 September 1068; national elections are scheduled. Ilia Jattc Volxco Is again sleeted in elope tbrEY way premdential rare. Ilicamoral legislature is also e!ected. &pie rarer Velasco beconies President for fifth t in final phase of full return to constitutional gvernment. Junta relinquishes power to civilian interim President 1970 Clemente Yerovi lndaburu. Jape 0claWr President felasce assumes extraconstitutio m) power is the A Constituent Assembly is elecies3 to prepare groundwork face of a continuittg financial crisis and student disorders. Congress is closed and a modifictl version of 1440 Constitu� for return lu cowl ltutiunality. lion is relmliewed. Move tale C Assembly name Otto Arosemrna Comes Pro- visional President. 1"7 Aging During meeting of American Chiefs of State at Punts del Crte, Uruguay, President Arommena adopts stance critical of U.S. hemispht,ric actions. 1972 Feiraary President Velasco is again ousted by military coup; Army Comm9ndcr Gen. Guillermo Rodriguez Lam becomes Presi- dent. Angaat Fird cargo cf Fcuadorcan crude oil leaves port of Iialao near Esmeraldas, making Ecuador Latin Amedra's wond- InMest oil exporter, behind Venezuela. It APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 ;ON F 14)EN 1. Area Brief LAND (ufOU} Sim: 106,000 square miles Use: 55'6 forests; 11 arable; &y6 pastures and meadows; 26% built -up arras, eraateland, and other Casatlisx: 640 miles FWF LK (uf0[f) Popolellea: 4,817,000, "cluding nomadic Indians (eat. I January 1973); density about 63.6 persons per square mile RLtzde /saps: 487E Indian; 4W% mestizo; 10% white; IOPA mulatto and Negro Religion: fla4ornivantl) Roman Cathnllc Layosigm Spanish is the national language, but over 10% of the population speaks an Indian language, mainly Quechua Litrraey: Appm-imatel) 70% of the rmpululiun age 10 and IM-f licalth, nutrition. and sanitation Icvcls: I,ua Mules 13--s}!; 1,572,ODD; 64% fit for military service GOV9111KMICNT (WOU) Unitary republic of 19 provinces and the territory of Galapapios lslande Constitutional democracy; executive mad legislative powers held by executive since f bruary 1972, when army com- mander general became President following coup PeWkel putties: National Velaaotubsla Federation. Concen- tralion of Popular Forces, Social Christian Party, Con- servative Petty. Radical Liberal Patty of Ecuador, Ecua- dorean Socialist Party, Communist Party of Ecuador Member of the United Nations and the Orgsniaation of American States 1[xparta: 8241 million (f.o.b.. 1971); bananas, coffee, cocoa, sugar, and fish products; Ecuador began to export crude petroleum In August 1972 at n rate of 300,000 barrcis per day lmposiu: 5388 million (c.1.1., 1970; wheal ebomicalti metals, petroleum products, construction materials, transportation equipment, and most capital goods Ceoversiew role: 25.25 sucres US$i (Welling rate) Fiscal tear: Calendar year COMMUN[CAT[ONiS (C) flliikOa411a: 680 route miles nrrrow -Sage, single -track non electrified listens; 61 S milts 3WO -gage and 45 miles 2'5 [[iwways: 14,200 miles; 1,900 paved; 5.100 crushed stone, gravel, cobblestone, or stone blocks; 3,800 improved earth; 3,400 unimproved earth Island waterways: 960 miles navigable Pipelines; 387 miles crude oil; 50 miles refined products Pow 2 major (Guayaquil and Slants), I I mine. Merertt,@r marine: 9 ships of 1.0013 g.r.t. nod over, totaling 49,773 g.r.t, or 57,585 d.w.t. Civil air. 46 major transport& AirfkYs: 169 umble, 23 sites, 3 seaplane stations; 5 airfields have runways between 5,000 and 11,999 reel, and 19 have runways between 4,000 and 7,989 feet; 15 have permanent srrfaced runways Tekeounnieasiens: Adequate only in larger cities; 105,600 telephones; 680,000 radio and 120,000 TV receivers; 220 AM, 20 FM, and 13 TV ntaUons; communications satellite ground station DIf5 NSK 70KC118 (C) Felso"d: Army 17,000, navy 3,150 (including SW marine.), KONOMY (UIOU) sir force 1,665 (117 pilots) 1 GDP: 81.7 billion (at official exchange rate 1971); $260 per Major posiod violis; a brigades (5 infantry and l cavalry), capita 6 separate ba.tallons Feat: Self sufficient in most staple fowls: except wheat, milk, and vegetable oils; main crops are bananas, sugar rant, coffee, cocoa, corn, ricft beans Main indasiries: Food poceminlL beverages, textile% drugs, rubber and leather products, petrokum, fiWng, fertilisers, cement Zkwtrk power: installed capacity 320,080 kw. (1971); esti- mated production 1.1 bdlkm kw. -hr.; per capita eoasumption 158 kw.-hr. (1971) i I 12 NO FOREIGN D1SSF.M 1 tfbipo: 7 combat ships, including 2 pntrul esearta and 3 amphlbioun warfare ships; 3 ausilfarhss, 5 service craft Alrerah: 91 (28 jet) in gir lone. 5 (pop) In navY, 10 (plop) in army SoWyt Dr-pendent primarily ion U.S., some major purchases from Western Eumpe 1 lhlilary befto: For fiscal year ending 31 December 8972, 535.3 milUoe; about 10.44% of central piovernment budget C A) S VI I)t?N77A t. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 O j Q A Q C M 0 C CL a V� f A K g APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110026 -5 a o n n- r+r+r.r.nn- `e 0 o n o g 5 c p arc E 3 c e P n a 7 o c` a it a i d- r y4 C eO, C 4 C L r h. q: W IQ w V i p 1 h O p9 ,a W N- N V 1 it craoa v V V izga``gm 'mVU t C? 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