Ecuador's economic crisis continues with `imposed' president

Ecuador remained under a state of emergency yesterday as Dr Gustavo Noboa, the country's vice-president until Saturday, was sworn…

Ecuador remained under a state of emergency yesterday as Dr Gustavo Noboa, the country's vice-president until Saturday, was sworn in as president to avoid an outright coup.

"Ecuador has sunk into the deepest crisis in its history," said Dr Noboa (62), a lawyer, addressing the nation at the weekend. "I am firmly convinced that the vast majority of Ecuadoreans will support the work of my government, which calls on all honest citizens to collaborate with the national recovery effort."

Massive protests continued in Riobamba and other rural towns, where indigenous groups rejected the "imposition" of Dr Naboa as president.

President Noboa replaced the beleaguered President Jamil Mahuad, ousted after a week of escalating protests over the continuing economic crisis which culminated in Friday night's seizure of parliament by thousands of indigenous protesters.

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The indigenous co-ordinating body, Conaie, announced the launch of a civic-military junta or Council of Government, composed of Mr Mahuad's acting Defence Minister, Gen Carlos Mendoza, the former president of the Supreme Court, Judge Carlos Solorzano, and the Conaie leader, Mr Antonio Vargas.

A group of mid-level army officers backed the indigenous uprising, forcing President Mahuad to abandon parliament and take refuge in the Chilean embassy. His current whereabouts are unknown.

The key army dissident, Gen Carlos Mendoza, then suddenly resigned from the rebel government council, taking several officials with him and paving the way for Dr Noboa to be appointed president.

"We have been betrayed by the army high command," said the Conaie leader and a member of the new junta, Mr Vargas.

"The indigenous uprising is over for now," he added, "but the struggle is by no means over."

The dissident army officers have been detained, Mr Vargas is somewhere in rural Ecuador and the former supreme court president, Judge Solorzano, has returned home to Guayaquil, Ecuador's second city.

Mr Mahuad refused to abandon the presidency but left the parliament and went into hiding, allowing the military command to invoke Article 168 of the constitution, which allows the vice-president to assume the presidency should the office holder "absent himself from his duties".

"If this is how governments can be removed in this country," complained Mr Mahuad, "how long will the next one last? Three hours?"

President Noboa faces a stiff test in the days ahead, insisting on the "dollarisation" of the country's economy, the controversial proposal which detonated the indigenous uprising and the general strike which led to his predecessor's downfall.

He must also resolve the issue of frozen bank assets, restructure the external debt and convince Ecuadoreans that his replacement of the unpopular Mr Mahuad is more than a cosmetic measure.

The new President must also resolve the thorny issue of the dissident army officers, notably Col Lucio Gutierrez, who is regarded as a hero among the protest movement, reminiscent of President Hugo Chavez of Venezuela, who attained power democratically, having previously been the leader of an abortive coup.

Most of the thousands of Indian protesters who occupied Quito appeared to have left the city yesterday as Indian leaders expressed disappointment not only with Dr Noboa, but with the break-up of the junta and the lack of military support.

"We don't accept the presidential succession. Mr Noboa wants to take advantage of our people's fight to keep helping the same people as always, the corrupt bankers," said an Indian leader, Mr Salvador Quishpe. "We will defend our historic fight."

One indigenous man, reluctantly packing up his blanket and preparing to return home, admired the desk lamp he had stolen from parliament during last Friday's occupation. "I didn't really want this," he said, acknowledging that his isolated community lacked electricity. "I really wanted the whole national situation to change."