Saturday, October 02, 2010

Ecuador army frees President Correa from hospital siege

Ecuador army frees President Correa from hospital siege
By BBC News
Fri 01 Oct. 2010, 11:10 CAT

Ecuador's President Rafael Correa has been rescued from a hospital in the capital, Quito, where he had been trapped for several hours in an uprising by disaffected police.

Widespread gunfire was heard as the army moved in to free the president, who was there for treatment after being attacked by police with tear gas. Mr Correa went on to address supporters outside the presidential palace. Two people died and dozens were injured in the unrest, officials said.

The president and his supporters said the police revolt over a new law cutting benefits for public servants amounted to an an attempted coup.

Mr Correa, a 47-year-old US-trained economist, took power in 2007 and was elected for a second term in 2009, despite a decision to default on $3.2bn of global bonds causing widespread fiscal problems for the government.
'Kill the president'

Mr Correa had been holed up in the police hospital, where he was treated after being hit by tear gas in a confrontation.

Hundreds of police, angry over a law that would cut their benefits, appeared to have prevented him from leaving the clinic.

The sight of two key state institutions, the national police force and the military, exchanging gunfire will be one which worries many ordinary Ecuadoreans, and reminds them of the past.

Ecuador's history is peppered with violent street uprisings which often ended with the removal of the head of state. In this instance, there was to be no such outcome, but it was a sign of how polarised life in Ecuador has become in recent years, with Mr Correa dividing opinion across the country.

The initial reason for the protests -austerity measures - was almost lost among the high drama of the presidential siege. But that, and other issues such as an impending decision on whether to dissolve parliament and call an early general election, are facing Mr Correa when he recovers from what was, without doubt, his toughest day since taking office.

Under cover of darkness Mr Correa was reportedly smuggled out of the hospital in a wheelchair as a gun battle between troops and police raged.

Speaking to his supporters outside the presidential palace, Mr Correa said he hoped the events of the day would serve "as an example to those who want to bring a change and stop the citizens' revolution without going through the polls".

"I give so much thanks to those heroes who accompanied me through this hard journey," the Reuters news agency reported him saying.

"Despite the danger, being surrounded, ministers and politicians came, to die if necessary. With that bravery, with that loyalty, nothing can defeat us."

The commander of Ecuador's police force has resigned, a police spokesman said on Friday.

The drama began on Thursday morning when members of the armed forces and police angry at the austerity measures occupied several barracks and set up road blocks across the country.

TV stations showed images of police setting tyres on fire in the streets of Quito, Guayaquil and other cities. The National Assembly building was also occupied.

Police also took control of Quito's international airport for several hours.

Looting was reported in the capital and Ecuador's largest city, Guayaquil. Banks were robbed and schools and businesses closed.
Map

Peru and Colombia closed their borders with Ecuador in solidarity.

In an emotional speech to soldiers from Quito's main barracks, President Correa tore at his shirt and said: "If you want to kill the president, here he is. Kill him, if you want to. Kill him if you are brave enough."

Moments later he was forced to flee the barracks wearing a gas mask when tear gas was fired by the protesters, and he was taken to hospital.
Regional support

During the day Mr Correa received strong support from governments throughout the Americas, with a string of Latin American nations and the US all speaking up for the embattled president.

Within hours of the violence erupting in Ecuador, the South American regional body, Unasur, called an emergency meeting.
Continue reading the main story
Ecuador's political instability

* 2005: President Lucio Gutierrez deposed after two years, following massive protests in response to his attempt to overhaul the Supreme Court
* 2000: Jamil Mahuad, elected 1998, forced to step down as president after two years following indigenous protests led by Col Lucio Gutierrez
* 1997: President Abdala Bucaram, nicknamed "El Loco" ("the crazy one"), declared mentally unfit to rule after a year in power
* 1987: President Leon Febres Cordero kidnapped and beaten up by the army in protest at policies of privatisation and public expenditure cuts

* Ecuador timeline

Mr Correa has blamed the Patriotic Society Party (PSP), led by Lucio Gutierrez, for fomenting the unrest, and said "bad elements" in the police force would "be removed".

On Wednesday, one minister had said the president was considering disbanding Congress because members of his Country Alliance had threatened to block proposals to shrink the bureaucracy.

Ecuador's two-year-old constitution allows the president to declare an impasse and rule by decree until new elections. However, such a move would have to be approved by the Constitutional Court.

The BBC's Will Grant, in Venezuela, says Mr Correa could still choose to rule by decree in an effort to stay in control in the immediate future.

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Wednesday, September 02, 2009

Correa blames Cuba’s problems on US sanctions

Correa blames Cuba’s problems on US sanctions
Written by Larry Moonze in Havana, Cuba
Thursday, September 03, 2009 12:05:38 AM

ECUADORIAN President Rafael Correa has said Cuba has huge problems because of continued US harsh economic sanctions

President Correa, who just a week ago paid a private visit to Havana and held separate discussions with revolution leader Fidel Castro and President Raul Castro, urged the US to lift its decades old embargo against Cuba.

"Assessing the Cuban model abstracted from the 40-plus years of the US economic and commercial blockade is as hypocritical and cynical as investigating the death by drowning of somebody found at the bottom of a swimming pool with their feet encased in a bucket of cement and reaching the amazing conclusion that they drowned because they did not know how to swim," President Correa said, according to Granma Daily report.

He said even so, Cuba had withstood 50 years under the US blockade.

"I assure you that no country in Latin America could withstand five months," President Correa said. ìAnd with the ability and human resources that they have, as well as their social cohesion, I can assure you that when this absurd blockade is lifted there will be tremendous prosperity in Cuba. They have huge problems, no one doubts that, in terms of housing, which we saw, but they also have tremendous achievements."

He said Washington should know that it would not be the United States or the Latin American oligarchies that were going to tell the Cuban people how to solve their problems.

"But take the first step, lift this criminal blockade," President Correa urged the US.

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Sunday, May 24, 2009

(REUTERS) Ecuador says mining, oil must be in state hands

Ecuador says mining, oil must be in state hands
23 May 2009 12:23am EDT

QUITO (Reuters) - Ecuador's President Rafael Correa said on Saturday that key sectors of the economy, including oil and mines, must be in government hands.

During his first two years in office Correa has taken a tough stand with mining and oil companies, pushing for new contracts more favorable to the state, but has so far shied away from nationalizing any firms.

"We will fulfill the goal of having strategic sectors in government hands," Correa said.

The U.S.-educated economist has recently said he will not nationalize foreign oil companies, but will push for more state control in the key industry via new contracts.

During a joint news conference with his Ecuadorean counterpart, Venezuelan President Hugo Chavez said his drive to nationalize strategic sectors of his own country's economy would continue.

Many sectors of Venezuela's economy, including energy and telecommunications, have passed into state hands since Chavez took office 10 years ago. In recent weeks he has nationalized oil service companies and iron producers.

Chavez also said that Venezuela and Brazil were in talks to create a joint fund worth billions of dollars. It is likely it would be for infrastructure investment.

"One of the subjects we will discuss is the creation of a joint strategic fund ... worth billions of dollars," said Chavez, adding the fund will have funds from the Brazilian Development Bank, BNDES. He said he will meet with Brazilian President Luiz Inacio Lula da Silva next week.

He said earlier his country and Ecuador had signed a deal for a joint fund for investment in energy projects.

(Reporting by Alonso Soto; Writing by Frank Jack Daniel; Editing by Eric Walsh)

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Monday, April 21, 2008

(METAL MARKETS) Ecuador revokes 80% of mining concessions

Monday, April 21, 2008
Ecuador revokes 80% of mining concessions
Story link: Ecuador revokes 80% of mining concessions by Gill Montia

Ecuador has suspended mining exploration activities and revoked a large number of concessions while it prepares new mining legislation.

The country’s government, headed by President Rafael Correa, says it has taken the dramatic action to secure greater control of Ecuador’s natural resources and increase the amount of profit the mining sector contributes to the state.

The ban could last for around 180 days and is accompanied by the cancellation of 80% of the country’s 5,000 plus mining concession.

Around 40 international mining companies operate in the country, contributing millions of dollars in investment to the mining economy.

It is understood that the Ecuadorian government believes the concessions were sold too cheaply and it will therefore be renegotiating their terms.

There are also plans to create a state-owned mining company to exploit the country’s mineral reserves, which are estimated at $220 billion.

No large-scale mining activity is currently taking place in Ecuador and critics of the country’s concession system say that it has favoured speculators rather than serious investors.

Toronto-based Aurelian Resources held a concession for the Fruta del Norte gold-silver discovery, which is believed to be a world-class prospect.

The company had plans to commence an initial development of the discovery this year.

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