litics and domestic military interventions in the 1960s, while foreign companies developed oil resources in the Ecuadorian Amazon. In 1972, construction of the Andean pipeline was completed. The pipeline brought oil from the east side of the Andes to the coast, making Ecuador South America's second largest oil exporter. The pipeline in southern Ecuador did nothing to resolve tensions between Ecuador and Peru, however.
The Rio Protocol failed to precisely resolve the border along a small river in the remote Cordillera del Cóndor region in southern Ecuador. This caused a long-simmering dispute between Ecuador and Peru, which ultimately led to fighting between the two countries; first a border skirmish in January–February 1981 known as the Paquisha Incident, and ultimately full-scale warfare in January 1995 where the Ecuadorian military shot down Peruvian aircraft and helicopters and Peruvian infantry marched into southern Ecuador. Each country blamed the other for the onset of hostilities, known as the Cenepa War. Sixto Durán Ballén, the Ecuadorian president, famously declared that he would not give up a single centimeter of Ecuador. Popular sentiment in Ecuador became strongly nationalistic against Peru: graffiti could be seen on the walls of Quito referring to Peru as the "Cain de Latinoamérica", a reference to the murder of Abel by his brother Cain in the Book of Genesis.
Ecuador and Peru reached a tentative peace agreement in October 1998, which ended hostilities, and the Guarantors of the Rio Protocol ruled that the border of the undelineated zone was set the line of the Cordillera del Cóndor. While Ecuador had to give up its decades-old territorial claims to the eastern slopes of the Cordillera, as well as to the entire western area of Cenepa headwaters, Peru was compelled to give to Ecuador, in perpetual lease but without sovereignty, one square kilometre of its territory, in the area where the Ecuadorian base of Tiwinza – focal point of
