Ecuador Indians renew talks with government as protests fail

QUITO, Ecuador (Reuters) -- Ecuador's powerful main indigenous group has re-opened talks with the government after three weeks of failed attempts to mobilize opposition to Quito's economic policies, the government said on Thursday.

The Confederation of Indigenous Nationalities (Conaie), whose earlier protests led to the downfall of elected President Jamil Mahuad in January, had broken off contacts with the government in early September.

But this time, the Conaie failed to bring crowds into the streets to protest President Gustavo Noboa's actions that include the introduction of the U.S. dollar as the official currency in a bid to cut inflation.

About 40 percent of Ecuador's 12.4 million people are native Indians. Most Ecuadoreans live in poverty and the country's economy is the weakest in South America.

"We had an important meeting with the president and representatives of the Conaie," Interior Minister Juan Manrique told reporters. "It was satisfying to see that these organizations are prepared to present their aspirations while respecting civil order."

The Indian demands include the reintroduction of a national currency and the repeal of a law allowing more private capital in oil and electricity firms.

The government introduced the dollar in a bid to stem the country's spiral into economic chaos that saw it default on part of its foreign debt last year. Ecuador has since reached rescheduling agreements with foreign creditors.

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