Ecuadorian government officials and representatives of foreign oil companies said late Aug. 22 that talks with strike leaders from the provinces of Orellana and Sucumbios were making good progress. Early Aug. 23, however, several provincial officials warned that negotiations are stalled, and that the fragile Aug. 21 truce suspending the strike is at risk of collapsing. Tensions are high on both sides. The strike's economic cost to Ecuador's economy in terms of lost export revenues could surpass $500 million and has seriously endangered Ecuador's fiscal stability over the next 12 to 18 months. If Ecuadorian President Alfredo Palacio cannot quell the strike and restart oil production quickly, Ecuador likely will suffer a financial crisis in 2006 that could aggravate social and political tensions. Provincial strike leaders, however, appear determined to press their demands.