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A Novel of the Foreign Service
By
Gene C. McCoy
CHAPTER 29
Panama - 1971
Panama and Quito, Ecuador - 1971
THE FOREIGN SERVICE OF THE UNITED STATES OF AMERICA INCOMING CABLE CONFIDENTIAL IMMEDIATE ACTION: AMEMBASSY, QUITO FROM: SECSTATE, WASHDC SUBJECT: PRESS REPORTS ON MISUSE OF AID FUNDS. 1. DURING MORNING PRESS BRIEFING DEPARTMENTAL PRESS OFFICER WAS QUESTIONED ABOUT NEWS ITEM WHICH APPEARED IN WASHINGTON COLUMNIST FRITZ CLAYTON'S COLUMN ALLEGING THAT AID FUNDS WERE USED TO PAY ICC FOR RECENTLY NATIONALIZED TELECOMMUNICATIONS PROPERTIES. CLAYTON CHARGES THAT FUNDS DESTINED FOR LAND REFORM WERE DIVERTED TO PAYMENT OF ICC CLAIM. 2. FOLLOWING IS A TRANSCRIPT OF CLAYTON COLUMN:QUOTE - THIS COLUMN HAS RECEIVED CONFIDENTIAL INFORMATION THAT THE MILITARY GOVERNMENT IN ECUADOR RECENTLY DIVERTED A LARGE SUM OF MONEY GIVEN TO THEM UNDER AN ALLIANCE FOR PROGRESS PROGRAM FOR LAND REFORM TO PAY OFF A CLAIM WHICH THE MULTINATIONAL GIANT INTERCONTINENTAL COMMUNICATIONS COMPANY HAD AGAINST THEM FOR PROPERTIES THAT WERE EXPROPRIATED BY THE GOVERNMENT EARLIER THIS YEAR. OUR SOURCES ALSO REPORTED THAT THE AMERICAN EMBASSY IN QUITO HAD FULL KNOWLEDGE OF THE DIVERSION AND EVEN ENCOURAGED THE GOVERNMENT TO DO IT. THIS IS JUST ANOTHER EXAMPLE OF THE BLATANT MISUSE THE STATE DEPARTMENT MAKES OF FOREIGN AID BY USING MONEY INTENDED FOR LONG-TERM DEVELOPMENT TO ACHIEVE SHORT-TERM POLITICAL OBJECTIVES. THE FILES OF THE GENERAL ACCOUNTING OFFICE ARE FILLED WITH SIMILAR REPORTS, AND IT IS TIME THAT THE CONGRESS CONDUCTED A FULL-SCALE INVESTIGATION INTO THE EXTRAVAGANT GIVE-AWAY PROGRAM THAT THE STATE DEPARTMENT USES AS A SUBSTITUTE FOR TRADITIONAL DIPLOMACY-UNQUOTE 3. EMBASSY REQUESTED TO INVESTIGATE AND PROVIDE ITS COMMENTS ASAP. STANFIELD
Mr. President, once again stories of corruption and gross mismanagement of our nation's fiscal affairs are seeping out of the morass of graft and bureaucratic ineptitde that has characterized and continues to characterize the Ministry of Finance. However, more shocking and damaging to our nation's prestige is the fact that this latest story found its way to light in pages of a foreign newspaper. Perhaps the many years that our Minister of Finance spent abroad explains this phenomenon.Mr. President, your administration came to power behind an anachronistic and decadent government with promises of a new era of honesty and integrity. Are we to assume that these promises meant nothing, and that the same cynical, self-serving politicians and bureaucrats who misappropriated public funds for their own greedy ends continue to manage our nation's affairs? Mr. President, the people of Ecuador deserve an answer to the charges reported elsewhere in this journal that in your Ministry of Finance there has been a conspiracy with foreign capitalists to sap our nations wealth. Mr. President, the people of Ecuador deserve to know why your Minister of Finance was meeting surreptitiously with an officer of the American Embassy on the night before you announced an honorable settlement with the Intercontinental Communications Company. Is it possible, Mr. President, that your Minister of Finance does not share your vision of a new era, and that during his long tenure in foreign countries he lost sight of our traditional concept of honesty and integrity?
1. IN ADDITION TO REFTEL EMBASSY WAS AWARE OF CLAYTON COLUMN THROUGH LOCAL PRESS. IN CONSERVATIVE, PREMIER MORNING DAILY, LAS NOTICIAS, LEAD NEWS STORY QUOTED CLAYTON ARTICLE verbatime, AND ON EDITORIAL PAGE THEY LEVELED CHARGES AGAINST MINFIN JORGE CHIRIBOGA OF CONSPIRACY WITH FOREIGN CAPITALISTS, AND SUGGESTED INVOLVEMENT OF AMERICAN EMBASSY. FYI EDITOR-PUBLISHER, AGAPITO ROMERO, IS SPOKESMAN FOR CONSERVATIVE LAND OWNERS BOTH IN SIERRA AND ON THE COAST, AND HAS LONG BEEN OUTSPOKEN CRITIC OF LAND REFORM OR ANY OTHER TYPE OF CHANGE-END FYI.2. EMBASSY VIEWS CLAYTON COLUMN AS JUST ANOTHER EXAMPLE OF HIS IRRESPONSIBLE JOURNALISM, AND IS INDICATIVE OF HIS NAIVETE WITH RESPECT TO WORKINGS OF AID PROGRAMS AND THE CONDUCT OF DIPLOMACY. NEGOTIATIONS ON LAND REFORM LOAN HAD BEEN IN PROGRESS FOR OVER TWO YEARS, AND WERE TOTALLY UNRELATED TO ICC MATTER. IT SO HAPPENS THAT CONCURRENT WITH RESOLUTION OF ICC NEGOTIATION, GOE ALSO RESOLVED TO UNDERTAKE LONG-AWAITED LAND REFORM AS EVIDENCED BY CALL ON DEPARTMENT BY ECUADORIAN AMBASSADOR, AND THEIR NOTE FROM FOREIGN OFFICE WHICH ACCEPTED ALL RECOMMENDATIONS BY AID TECHNICIANS. FYI-CLAYTON COLUMN IN ERROR WHEN HE STATES QUOTE FUNDS GIVEN REPEAT GIVEN TO THEM UNDER ALLIANCE FOR PROGRESS-UNQUOTE. ADVANCE TO GOE FOR LAND REFORM WAS MADE UNDER A REPAYABLE REPEAT REPAYABLE LOAN AGREEMENT ON WHICH INTEREST IS CHARGED-END FYI
3. AT THIS STAGE EMBASSY SEES NO REASON TO QUESTION SINCERITY OF GOE BY CHALLENGING REPRESENTATIONS THAT WERE MADE BOTH ORALLY AND IN WRITING. DEPARTMENT IS WELL AWARE THAT AT ANY GIVEN TIME EMBASSY AND GOVERNMENT MAY HAVE SEVERAL ISSUES UNDER CONSIDERATION, AND SOLUTION OF ONE OR TWO SIMULTANEOUSLY DOES NOT NECESSARILY LINK THE ISSUES NOR THE SOLUTIONS.
Quito, Ecuador - 1971
MOVIMIENTO ANDRES GUERRERO MANIFIESTO "TIERRA Y LIBERTAD" WARNING: LET THE OLIGARCHY AND THE POLITICIANS WHO CONSPIRE WITH THE AMERICAN EMBASSY TO HOODWINK, DECEIVE AND STEAL BE ON NOTICE THAT THEIR DAYS ARE NUMBERED. ANDRES GUERRERO WAS THE VICTIM OF A SYSTEM WHICH IGNORES THE NEEDS OF SIX MILLION PEOPLE. LET THE PERPETRATORS OF THESE OUTRAGES BE ON NOTICE THAT WE ARE NO LONGER GOING TO SIT PASSIVELY WITH OUR HATS IN OUR HANDS WHILE YOU KILL US OFF ONE BY ONE. WE ARE NO LONGER GOING TO LET YOU CIRCULATE MONEY THROUGH THE SYSTEM IN THE NAME OF DEVELOPMENT ONLY TO SKIM IT INTO YOUR FOREIGN BANK ACCOUNTS. THIS IS A MANIFESTO OF TERRORISM AND THE SEIZING OF ONE CORRUPT POLITICIAN IS ONLY THE BEGINNING. WE DEMAND "TIERRA Y LIBERTAD."
Quito, Ecuador - 1971
MINISTRY OF FOREIGN AFFAIRS
NOTE VERBALE NUMBER 1278/US
Quito, Ecuador - 1971
Como una flor un dia en
el jardin en que yo soñaba
me arancaste.
Di todo el perfume de mi melancolia
Y sin hacerte nigun mal me dejaste.