Weekly Report - 1 July 2003

GUTIERREZ ENDORSES KEY ITEMS OF CONAIE 'MANDATE' 

President Lucio Gutiérrez has just about persuaded his indigenous allies to stay aboard the ruling coalition, but now finds himself having struck a peculiar alliance with the right in congress, largely motivated by his reaction to recent statements by a left-of-centre former President.

Last week was expected by many in Ecuador to culminate in a make-or-break challenge for the ruling alliance. The umbrella indigenous confederation Conaie -sponsor of the Pachakutik movement, junior partner in the ruling coalition- had given its leader Leonidas Iza a 'mandate' which he was expected to get endorsed by President Gutiérrez. 

Rejection would mean that Conaie would follow its member-organisation Ecuarunari into opposition. 

Agreeing with Conaie. Quite unexpectedly, Gutiérrez decided to sign with Iza a document committing the government to: 

* Eschew any projects entailing the privatisation of 'strategic' state enterprises. 
* Review several oil contracts with a view to their amendment or annulment. 
* The promotion of public forums to discuss future oil and energy policies. 
* Refrain from increasing the price of cooking gas.