[Salon] International Negotiation: The Peru-Ecuador Case



International Negotiation: The Peru-Ecuador Case
By  Luigi R. Einaudi April 4th, 2025
The Washington Psychiatric Society 2025 Spring Symposium.



Thank you. I am delighted to be here with you.

Back when I was in a position to advise young Americans considering a diplomatic career, I would tell them that they would have to be very tough psychologically, because if they became diplomats they would be ground to dust between the nationalism of the United States and the nationalisms of the foreigners with whom they would be dealing. The foreigners would see them as agents of U.S. power, and Americans would see them as defenders of foreigners.

Giandomenico Picco felt pressures like these to an extreme as he ventured far beyond the normal confines of diplomacy to understand the personal narratives of those involved in conflicts. Gabrielle Rifkind has stressed the importance of empathy for all sides and of the contributions of third parties.

My experience is that their insights are essential. Conflicts among nations are hard to understand, let alone resolve. A would-be peacemaker has to have the patience to listen a lot. Patience to take part in interminable negotiating sessions and to hear stubborn, unyielding wrangling by the parties. Patience to deal with his or her own government. Patience to learn the history of the conflict. Patience to listen to the complaints and fears of all sides. Patience to identify all the many interests involved. Patience to assess them. And perhaps above all, patience and imagination to help redefine them if necessary. And all the while, patience to mobilize the necessary domestic and international support.

My remarks today draw on a consequence of the nineteenth-century breakup of the Spanish empire in the New World. The ownership of enormous tracts of the Amazon was left ambiguous. Most disputes were settled, but one, between Peru and Ecuador, was not. More than a century later, it led to a 1941 war that proved disastrous for Ecuador. A treaty known as the Rio Protocol ended that war.  Brazil, Argentina, Chile and the United States signed on as guarantors.  Within a few years, Ecuador challenged the Protocol, claiming its boundary provisions mistakenly deprived Ecuador of access to the Amazon. In 1995, Ecuador moved troops into an area it contested and fighting broke out again. Each guarantor named a special envoy to try to end the conflict. I was named the envoy of the United States.

From the start, our efforts took place in an aura of impossibility. A ceasefire might be possible, but the dispute itself could not be resolved. The two republics were born in its shadow, and so it would always be there. Our first challenge was to separate the special forces soldiers of the two sides who had become inextricably entwined in dense mountain jungles. We were told we would never be able to separate them without fresh casualties, but thanks to the skill of our military observers and the discipline of the combatants themselves, over three months five thousand fighters were separated without a single new death.

Next it was said that we would never reach agreement on procedures because the debate over procedures was an excuse to avoid negotiating the real issues. When we reached agreement on procedures and began substantive negotiations, it was said we would never be able to decide anything because it would be impossible to reconcile the demands of international law—by which we were bound—with political viability in the two countries, without which no solution could work.

Then it was said that, in any case, these countries were too violent and unstable: nothing would ever work. And, in fact, we ran into serious delays when the Minister of Foreign Affairs of Peru was taken hostage by terrorists and when the President of Ecuador was removed by his Congress.

Finally, it was said that we could play all the diplomatic games we wanted, but that the two militaries needed hostilities to justify buying arms and that they would never accept a settlement. The conflict might be managed, skeptics said, but it would never be resolved.

In this atmosphere several “rules of the road” emerged almost as a matter of survival as we went along.

First of all, Maintain Unity, among ourselves, within our own governments and as far as possible with others affected by the conflict. Whatever course of action was decided had to be the product of the four special envoys deciding together, on the basis of everybody’s inputs. Hammering out decisions collegially was hard. No one came out of a meeting with the same position with which they had begun, but it also meant that each of us was committed to the outcome. And unity did not just mean we four diplomats stuck together. It meant making sure that we only made commitments our governments could support.

Second, ensure military support for diplomacy and diplomatic support for the military. Six militaries were involved, the two who were fighting each other, and the four guarantors whose observers separated the fighters and then enforced a demilitarized zone. Military opposition might prevent a solution, but their own limitations and sense of duty might lead them to accept a negotiated peace, even to claim it as a victory for their side – if their views were taken into account..

Third, always remember that it is the parties in conflict that will have to live with the result. If they do not, whatever is negotiated will not last. That meant Peru and Ecuador had to lead or be put in the lead. Even when there was a total impasse, we never let a negotiating session end without the parties publicly agreeing to a date for a new session. No matter how much we had to do ourselves, we never forgot that it was the parties themselves who would in the end determine whether a settlement would last.

A critical fourth rule was Use the law. We lived by the Rio Protocol, the ensuing declarations, and the Terms of Reference we negotiated for the military observers. These were the foundations for common action, predictability, and legitimacy. The military have a practical operational term: interoperability – ensuring that cooperating forces have the rules and equipment to work together. Diplomatic interoperability is shaped by the law, treaties and multilateral bodies. We sought support from the UN, the OAS and subregional organizations. And then we created a special commission of geographers and jurists chaired by the Chief Justice of the Brazilian Supreme Court to examine specific territorial claims.

Our fifth operating rule was Keep sights high. Optimism -- even illusion – was essential to avoid being bogged down by unyielding difficulties, delays, interruptions, exhaustion or simple inertia. We worked to shift focus from points of contention where one party would “lose” to areas that had a “win-win” potential. We looked for ways to put the immediate dispute into a broader context that provided benefits for both countries. Most of Ecuador’s territorial claims proved invalid, but what began as a straight-forward territorial dispute revealed several other previously neglected aspects of relations between the two neighbors that were open to improvement, and the negotiating process itself provided dignity.

These five points: maintain unity, integrate military and diplomatic efforts, remember the parties are key, use the law, and keep sights high, are of course abstractions. The realities were often even more complicated. Here is a key example. The commission chaired by Brazil’s Chief Justice ruled that the major jungle outpost captured by Ecuador was inside Peruvian territory. But the Ecuadorians at that outpost, known as Tiwintza, had not “run like rabbits” as their predecessors had been accused of doing in previous armed outbreaks. They had stood and fought and died there. And there they had had buried some of their dead. Tiwintza was a real deal killer. The dead were few, but the screams of blood are even louder and thicker than the waters of the Amazon for which those soldiers had fought and died.

After three years, the negotiations had advanced so far that a win-win solution was in sight. Yet the deal killer was still there. And the potential settlement, so far advanced, now suddenly coexisted with moves to rearm and a threat of renewed fighting. As the two parties and the guarantors prepared to meet again in Buenos Aires, my Argentine counterpart said he feared the week could lead as readily to war as to peace. He did not want war happening on his turf.

It was in Buenos Aires that necessity begat invention. The total historically disputed area had been enormous, some 120,000 square miles, smaller than France but larger than Italy. I was struck that Tiwintza, the epicenter of fighting, where Ecuador had buried its dead, was tiny. I pulled a matchbox from my pocket and put it on the table to symbolize how small the area was, and proposed that we find a special status for one square km that would include Ecuador’s graves.

The negotiations that week ended without agreement. The elements of a potential settlement were there. But some still felt permanent stalemate was preferable to settlement. The Chilean guarantor captured the negative psychology of the moment, commenting privately: “Ecuador does not have the strength (fuerza) to lose, and Peru does not have the grandeur (grandeza) to win.”

This is the point at which the six proved they were stronger together than any one of them alone. First, the presidents of Peru and Ecuador formally wrote to the four guarantor presidents that they had agreed on many things, trade, navigation, and frontier integration, but that they had been “unable to find a mutually acceptable formula to complete the common land frontier.”

Then the guarantor presidents responded that they would decide the formula for the land frontier if the congresses of Peru and Ecuador would each agree to accept a guarantor verdict, in advance and sight unseen. In October 1998, both congresses voted to do so. The guarantor presidents then declared that, under the Rio Protocol, Peru was sovereign over the Amazon watershed that Ecuador had claimed. At the same time, Peru must “grant as private property to the government of Ecuador an area of one square kilometer” at Tiwintza. “This transfer,” they declared, “will not affect sovereignty.” As owner, Ecuador would enjoy all rights conferred under the laws of Peru for private property, except for the right to sell the property; Peru was sovereign but could not expropriate it.

The Pope and the King of Spain, whom we had kept informed throughout because they had in a sense been "present at the creation," blessed the finding. The presidents of Peru and Ecuador accepted formally, and simultaneously signed agreements covering frontier integration, trade, navigation, security, respect for the fallen, development, commercial access to the Amazon, the rights of indigenous peoples and a binational ecological zone. That spring, the six armed forces put in the markers closing the agreed frontier.

Peru and Ecuador could not have made peace without outside support. The parties and the guarantors had listened to each other and, in listening, learned how to maximize interests they shared. Neither side gained all it wanted, but the settlement respected the basic interests of both countries and of the larger hemispheric community. As we meet today, the peace has held for more than 26 years.

I close by noting that this outcome successfully overcame what I like to call the “Riddle of Sovereignty.”  Sovereignty is the basis of the modern state system. Sovereignty is psychologically powerful because it expresses a nation’s ability to make its own decisions. But science and globalization make absolute sovereignty impossible. Today’s world requires that we cooperate with others if we want to protect ourselves and keep the problems of others from spilling over onto us. The best defense of sovereignty today is cooperation in accordance with national and international law.

I am particularly glad to have been able to make these points before this audience. As psychiatrists, you understand the art and power of active listening to articulate interests, clarify situations, and promote understanding. And the patria of Giandomenico Picco was Italy, whose experience over a thousand years with its extraordinary city states proved that peace and prosperity depend on the ability to unite for the greater good.

Thank you very much.



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