Ecuador: An Oil Strike's Present and Future Consequences

Talks in Quito between strike leaders and the government of Ecuadorian President Alfredo Palacio failed Aug. 22 to result in any agreement, while military efforts to dislodge protesters from about 40 oil wells in Orellana province caused clashes in which one person reportedly was killed and 11 were wounded. The strike has hurt the Palacio government badly. Lost export earnings are estimated at $500 million, and oil production might not recover because of structural damages in many wells.