OUTGOING DEFENSE MINISTER QUESTIONS 'SOCIALIST'

C O N F I D E N T I A L SECTION 01 OF 03 CARACAS 001483

SIPDIS

SIPDIS

HQSOUTHCOM ALSO FOR POLAD
DEPT PASS TO AID/OTI RPORTER

E.O. 12958: DECL: 07/27/2017
TAGS: PGOV MARR PREL VE
SUBJECT: OUTGOING DEFENSE MINISTER QUESTIONS 'SOCIALIST'
PLANS, ARMED FORCES GETS NEW LEADERSHIP

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Classified By: ACTING POLITICAL COUNSELOR DANIEL LAWTON
FOR REASON 1.4 (D)


1. (C) Summary. The Venezuelan president swore-in a new
cadre of pro-Chavez military leaders to head the Venezuelan
Armed Forces (FAN) on July 18 during a televised ceremony.
His picks include hard-line Chavista and former head of the
National Reserve and Mobilization Command Gustavo Rangel
Briceno as Defense Minister and new commanders of the four
branches of the FAN, among others. Chavez' appointments
were overshadowed, however, by outgoing Minister Raul Isaias
Baduel's speech cautioning against repeating the political
and economic mistakes of past socialist regimes. Some
military analysts applauded Baduel for voicing popular
discontent against Chavez' efforts to politicize the FAN.
Other analysts, though, criticized Baduel for leaving office
without offering a state-of-the-military address. Chavez'
non-confrontational response appears well-calculated to give
the impression that the normally thin-skinned Chavez is open
to criticism. End Summary.

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Loyalists to Head FAN
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2. (C) President Chavez swore in new leadership for the
Venezuelan Armed Forces (FAN) during a televised ceremony
on July 18. Former head of the National Reserve and
Mobilization Command Gustavo Rangel Briceno was sworn-in
as Minister of Defense. During the event, Rangel spoke
of the need to implement a "new military paradigm" in
order to defeat the "real enemy" and subvert ongoing
threats. Rangel replaced Army General Raul Isaias Baduel,
perhaps one of the last remaining high-ranking officials
to resist Chavez' efforts to politicize the military
(reftel). Rocio San Miguel of the NGO "Citizens for
Security" told PolOff July 20 that Rangel is as a hard-line
loyalist and one of Chavez' trusted military implementers,
but one with little to no influence in policy-making
decisions. According to San Miguel, Chavez appointed
Rangel to carry out a series of civil-military projects,
similar to ones he oversaw as commander of the Reserves.
She said the new minister is indebted to Chavez and owes
his "meteoric" career path to the Venezuelan president.
(Note: For comprehensive biographical information on
Rangel please access the following DIA link:
http://www.dia.smil.mil/intel/bios/venezuela/
rangel_briceno2 .mil.html End Note.)


3. (C) During the ceremony, Chavez also appointed new
commanders of the Army, Air Force, Navy, and National
Guard, among others. Incoming Army Commander Carlos
Jose Mata Figuero previously served as Chief of General
Staff of the FAN, Commander of the military academy, and
Head of the Casa Militar, the military compound where
Chavez' Honor Guard is stationed. He currently serves as
the military coordinator for Chavez' "Morality and
Enlightenment" program, an ideology and public education
campaign. Incoming Air Force Commander Luis Jose
Berroteran Acosta previously served as the Air Force's
Inspector General. New Navy Commander Vice Admiral Zahim
Ali Quintana Castro served as Commander of Naval
Operations prior to his appointment. Major General Fredys
Alonso Carrion was appointed head of the National Guard.
He previously served as the Commander of the Maracaibo
Regional Command. Army Major General Freites Reyes
replaced Briceno as Commander of the Reserves. (Note:
For comprehensive biographical information on the new FAN
assignments please refer to DIA assessment IIR69020340 07
End Note.)

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Baduel Warns Against Socialism
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4. (SBU) Chavez' appointments were overshadowed by
outgoing Minister Baduel's speech in which Baduel
indirectly criticized Chavez' plans to implement his
ill-defined "21st Century Socialism." Specifically,
Baduel cautioned against repeating the political and
economic mistakes of now-defunct Soviet-era socialist
regimes. During his opening remarks, Baduel noted
that the term "socialism" does not have a uniform
meaning, and argued that its ambiguity causes
"uneasiness" among various sectors. Regarding politics,
Baduel said Venezuela's socialist model should be

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"overwhelmingly democratic; it should prove that a
socialist mode of production is compatible with
democratic forms of government, with checks
and balances and division of powers." Baduel also
urged BRV officials to "distance [themselves] from the
Marxist orthodoxy that says democracy is an instrument
of bourgeoisie domination."


5. (SBU) Baduel also spoke at length about the economic
shortcomings of socialist regimes, particularly of the
Soviet Union, and warned that Venezuela should be
"vigilant" so as not to repeat them. Baduel stated
that one of the primary failures of such regimes is
their inability to engender sufficient wealth.
Lamenting Venezuela's historical rent-seeking culture,
Baduel called on the government to "generate wealth
before redistributing it." Baduel advised against
implementing "rash" economic changes, such as
abolishing private property. He added, "We cannot
permit our economy to be transformed into a form of
state-led capitalism, where the state is the only
owner of the means of production." Baduel stated such
actions would lead to "anarchy, hunger, and rebellion"
as was the case in the Soviet Union.

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The Media Storm
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6. (C) Baduel's highly critical remarks received
extensive coverage in the local press; however, there
is widespread disagreement among military analysts as
to the significance of his speech. Some analysts
praised the former minister for making public the
growing dissatisfaction among military officials with
Chavez' efforts to politicize the FAN. Analysts in
this camp expected Baduel's speech to serve as a
springboard for more criticism from within the FAN's
ranks, but this has yet to occur. Other military
analysts contend that Baduel simply expressed his
personal views and believe Chavez expected Baduel to
criticize the new direction of FAN. Others, however,
lambasted Baduel for leaving office without offering
an assessment of his tenure as Minister of Defense.
Military analyst San Miguel told PolOff that Baduel
neglected to comment on pending arms purchases,
pending military-related legislation in the National
Assembly, and possible changes to conscription
procedures and military curriculum.

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Chavez Praises Baduel's "Luminous" Discourse
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7. (C) Whether Chavez was forewarned about Baduel's
speech or not, he did not appear taken aback by his
former minister's verbal attacks. Instead, Chavez
thanked Baduel for his service to the FAN and praised
his "luminous" remarks. Chavez later instructed
Minster of Communications William Lara to make
Baduel's speech widely available so it could be
studied by the Venezuelan public. Government
television stations, however, did not rebroadcast
Baduel's remarks on news programs.

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Comment
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8. (C) Baduel's trepidation about Chavez' plans to
implement "socialism" likely reflects the sentiments
of a significant portion of the FAN. However, the
remaining independent print and television media have
been largely responsible for keeping his comments in
the public eye. Few, if any, military officials have
echoed Baduel's concerns in recent days. The deafening
silence of military officials in the face of sweeping
changes to the FAN indicates that in the BRV there is
much more to gain from appearing loyal to Chavez and
much to lose in opposing Chavez' radical program.
Separately, Chavez' non-confrontation reaction to
Baduel's remarks showed Chavez' political astuteness
and gave the impression that the usually thin-skinned
Venezuelan president is open to criticism, even from
within his own ranks.


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FRENCH