Identifier
Created
Classification
Origin
08MONTEVIDEO68
2008-02-12 19:05:00
CONFIDENTIAL
Embassy Montevideo
Cable title:  

VAZQUEZ ANNOUNCES A MAJOR CABINET RESHUFFLE

Tags:  PGOV PREL PINR MARR EAGR ETRD UY 
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C O N F I D E N T I A L MONTEVIDEO 000068 

SIPDIS

SIPDIS

STATE FOR USTR
STATE FOR INR/B
STATE FOR USDA
E.O. 12958: DECL: 02/12/2018
TAGS: PGOV PREL PINR MARR EAGR ETRD UY
SUBJECT: VAZQUEZ ANNOUNCES A MAJOR CABINET RESHUFFLE

REF: A. EMAIL DOUTRICH-DRUCKER ET AL. 2/9/08

B. EMAIL DOUTRICH-DRUCKER ET AL. 2/11/08

Classified By: Ambassador Frank Baxter
for reasons 1.4 (B) and (D)

SUMMARY
-------

C O N F I D E N T I A L MONTEVIDEO 000068

SIPDIS

SIPDIS

STATE FOR USTR
STATE FOR INR/B
STATE FOR USDA
E.O. 12958: DECL: 02/12/2018
TAGS: PGOV PREL PINR MARR EAGR ETRD UY
SUBJECT: VAZQUEZ ANNOUNCES A MAJOR CABINET RESHUFFLE

REF: A. EMAIL DOUTRICH-DRUCKER ET AL. 2/9/08

B. EMAIL DOUTRICH-DRUCKER ET AL. 2/11/08

Classified By: Ambassador Frank Baxter
for reasons 1.4 (B) and (D)

SUMMARY
--------------


1. (U) Summary: President Vasquez announced a major cabinet
reshuffle in a February 11 televised address. His
long-anticipated changes began in earnest when he convoked
several ministers to his residence over the weekend to inform
them of their departure. The current Ministers of Foreign
Affairs, Defense, Industry, Agriculture, Housing and
Education will leave their offices March 1. Out are key
political faction leaders Jose Mujica and Reinaldo Gargano,
who will return to the Senate where they can ply their
political tradecraft ahead of the 2009 presidential
elections. In is a team of younger, less politicized
technocrats, in what Vazquez himself described as an attempt
to decouple politics from the government's agenda.


2. (C) SUMMARY CONTINUED: We view the changes positively, in
particular the departure of FM Gargano, who will be replaced
by the President's Chief of Staff Gonzalo Fernandez. In a
February 12 meeting with Ambassador, Fernandez described
himself as Gargano's antipode in many respects. He
complained that Gargano had destroyed the MFA and Uruguay's
image abroad. Fernandez said he and the President believe
good relations with the U.S. are essential. END SUMMARY.

VAZQUEZ RESHUFFLES HIS CABINET
--------------


3. (U) After private meetings with several outgoing ministers
over the weekend, Vazquez officially announced a major
cabinet reshuffle on February 11, the first since his
government assumed power in 2005. The President lauded his
cabinet, both those leaving and those who will remain,
highlighting the GOU's achievements in reducing unemployment
to 7.1%, raising employment to over 58% and increasing
foreign investment. He insisted that the original cabinet

was not a mistake, but rather the necessary team to
strengthen the Frente Amplio (FA) coalition when it assumed
the mantel of government for the first time. "Times change,"
said Vazquez, and politicians need to prepare for the
electoral campaign ahead while the government focuses on
implementing its agenda.


4. (U) Vazquez announced that the cabinet changes would be
effective March 1, allowing time for a transition period, an
unusual occurrence in Uruguayan politics. Furthermore, he
said, both outgoing and incoming ministers will attend the
next three weekly cabinet meetings.

Minister of Foreign Affairs
--------------


5. (SBU) Gonzalo Fernandez, the President's current Chief of
Staff, will replace Reinaldo Gargano as Minister of Foreign
Affairs. Gargano will return to the Senate. According to
media reports, Gargano, knowing his fate, delayed appearing
at the residence for a few hours, cleaned out his desk, and
made other gestures of defiance before seeing the President
on February 8. Career diplomat and current Ambassador to
Brazil Pedro Vaz will be the Vice-Minister.


6. (C) COMMENT: The Embassy is thrilled to be rid of the
intractable Gargano, a proponent of the Venezuelan and Cuban
brand of politics, who consistently sought to undermine
relations with the U.S. Vazquez reluctantly included him in
the cabinet to shore up the FA coalition. Gargano stated to
media that he had reached an understanding with Vazquez that
Uruguay's regional posture would not change. We doubt that
will be the case and Fernandez himself told Ambassador on
February 12 that he is Gargano's antipode in many respects.
Fernandez is one of the President's closest advisors, and
someone we believe is keen to deepen relations with the U.S.
We expect the MFA will regain its prominence on key issues
such as FTA discussions and managing the pulp mill
controversy with Argentina. END COMMENT.


7. (SBU) BIOGRAPHIC INFORMATION:

CAREER HIGHLIGHTS: Fernandez is President Vzquez' legal
advisor, Chief of Staff, and close friend. He is one of the
President's closest advisors. In 2006, President Vazquez
appointed Fernandez to coordinate Uruguay's political team at
the International Court of Justice in the pulp mill dispute
with Argentina.

Fernandez has worked extensively on human rights issues. He
served on the board of the Peace Commission during the Batlle
administration. The Commission investigated cases of those
who "disappeared" during the military dictatorship, and
sought to bring closure to this controversial issue. He
previously worked as an advisor to Amnesty International.

Fernandez was previously a member of the Socialist Party and
served as a member of the Party Board. He resigned from the
Socialist Party in July 2002 after dubious allegations that
he defended the Peirano family against bank fraud charges.

Since President Vazquez came to office, Fernandez abandoned
all other political activities except those specifically
requested by "my friend Vazquez." He prefers to maintain a
low profile.

He is a trained criminal lawyer and has maintained his legal
practice, generating criticism for occasionally siding with
clients over the GOU during his tenue in government. He has
taught law at the University of the Republic since 1994.

EDUCATION: He obtained his law degree from the University of
the Republic in 1977 and did post-graduate studies in
Germany, Spain, Chile, Peru, Bolivia and Paraguay.

PERSONAL DATA: He was born on March 21, 1952. He is
divorced and has two children, Laura and Matias. He said he
prefers teaching and writing to processing cases but still
practices law to earn a living.

LANGUAGES: Fernandez speaks German and limited English.

VICE-MINISTER: Pedro Vaz is currently Ambassador to Brazil.
He is a career diplomat who used to head the Directorate of
Bilateral Economic Relations, one of the three offices at
MFA%s Directorate General of International Economic Affairs.
He also served in Mexico for several years and in Geneva.
He is easy going and very knowledgeable on global and
regional issues and seems open to the US. He is in his
mid-forties, married with children.

Minister of Defense
--------------


8. (SBU) Current Vice-Minister of Defense Jose Bayardi will
replace Azucena Berrutti. Berrutti will retire from
government service to care for her ailing husband. Socialist
Deputy Jorge Menendez will be the new Vice-Minister.


9. (C) COMMENT: The appointment of Bayardi as MOD should be
an overall positive move for U.S./Uruguay military to
military relations. Bayardi is the best civilian candidate
to fulfill Vazquez' goal to appoint technically competent
ministers who will continue the FA's accomplishments to date.
Bayardi is neither pro- nor anti-U.S., but is likely to try
to maintain positive relations with all nations. We believe
he may be more willing to communicate with the U.S. than his
predecessor was. Bayardi is the most political-minded of the
new ministers and often views military engagement through a
political prism based on his leftist congressional
background. This may impact our mil to mil relations as the
presidential elections approach since Bayardi retains future
political aspirations. This appointment was well received by
the military leadership, due mainly to their opposition to
potential alternative candidates, including the newly
appointed Vice Minister. END COMMENT.


10. (SBU) BIOGRAPHIC INFORMATION:

CAREER HIGHLIGHTS: Vice-Minister of National Defense (March
1, 2005 - March 1, 2008. Bayardi was a three-term
Congressman (1990-2004) and served on the House Defense and
Public Health Commissions. He was president of the Vertiente
Artiguista Faction of the Frente Amplio from 1994-1998. In
July 2000, he voted against Unitas operations in the region.
He opposed the war in Iraq and is critical of the U.S.
embargo on Cuba.

PERSONAL DATA: Bayardi was born on June 30, 1955 and is
currently seperated with two children.

EDUCATION: He graduated as a Medical Doctor from the
University of the Republic in 1988 and worked for the Centro
de Asistencia del Sindicato Medico del Uruguay (CASMU) and
Circulo Catolico de Obreros del Uruguay, both private
hospitals, until his 1990 election to Congress. He is a
member of the Medical Doctor's Union. He did post graduate
studies in Intensive Care (1988-90) and earned a Master's
Degree in Health Services Management (1991-94).

TRAVEL: He traveled to Russia in 2007 at the invitation of
the Russian government to discuss security cooperation.
Attended the IX Foro de San Pablo (a forum of South American
leftist organizations) in Havana, Cuba (January 2000). He
also visited the Center for Hemispheric Defense Studies in
2007 with the U.S. Office of Defense Cooperation.

LANGUAGES: Bayardi understands and speaks English.

VICE-MINISTER: Jorge Edgardo Menendez Corte is an outspoken
and friendly member of the Socialist Party in the Province of
Durazno. Menendez currently represents Durazno in Congress;
he serves on the defense and housing committees. He has been
a member of the Frente Amplio since its formation in 1971 and
joined the Socialist Party in 1973, serving on its Central
Committee twice. He served on the city council of Durazno
from 1985-1999. In 2004 he was elected to Congress.


Menendez is 53 years of age, trained as a dentist, married to
Gloria Otegui and has three daughters, Carolina, Bernarda,
and Victoria. He is also a rancher and does business in the
forestry sector.

Minister of Industry and Trade
--------------


11. (SBU) Daniel Martinez, President of ANCAP, the national
oil company, will replace Jorge Lepra. Lepra is expected to
assume an Ambassadorship, most likely in Paris. Gerardo
Gadea will be the Vice-Minister.


12. (C) COMMENT: Lepra's removal should not reflect poorly
on his tenure as Minister. He confided recently to EconCouns
that he felt burnt out and was ready to leave. A prestigious
ambassadorship is a financial reward compared to the cabinet
and affords Lepra the opportunity to be closer to his two
children living in Spain. END COMMENT.


13. (SBU) BIOGRAPHIC INFORMATION:

CAREER HIGHLIGHTS: Appointed president of ANCAP in March
2005, Martnez had an important career as a businessman
(including some time at ANCAP) and consultant in Uruguay and
abroad from the early nineties. He is also Vice-president of
the Uruguayan Engineers Association and the Latin American
Work Safety Engineers Association.

EDUCATION: Martinez graduated as an Industrial Mechanical
Engineer from the Engineering Faculty of the University of
the Republic.

VICE-MINISTER: Gadea, a member of the Nuevo Espacio party, is
an economist and public accountant. He is a tax expert, has
experience as a labor leader, and was elected as an alternate
city council member in 2005. Vazquez described him as a
specialist in small and medium-sized enterprises. He is 43
and comes from a family of limited means.


Minister of Agriculture
--------------


14. (SBU) Minister Jose Mujica will return to the Senate to
prepare his party, the Popular Participation Movement (MPP)
for the 2009 presidential elections. Current Vice Minister
Ernesto Agazzi will replace Mujica and Andres Berterreche
will be the Vice-Minister.


15. (C) COMMENT: Agazzi is likely to pursue policies very
similar those of his predecessor, although he lacks the
political gravitas of Mujica. END COMMENT.


16. (SBU) BIOGRAPHIC INFORMATION:

CAREER HIGHLIGHTS: Agazzi is currently
Vice-Minister-designate of Agriculture. He was a founding
member of the MPP and was elected Senator (2005-10). He was
a congressman for the Department of Canelones (2000-2005).

PERSONAL DATA: Born in September, 1942 in Montevideo; he
lived in the Canelones Department, in the location Guazu-Vira
until elected Congressman in 1999. He moved to the
neighborhood of Penarol and routinely rode his bike
10-kilometers each way to work in Congress. He has two
daughters. He was imprisoned from 1972 to 1978 for his
actions as a Tupamaro guerrilla. He lived in exile in Paris
after his release from jail.

EDUCATION: Agazzi is an Agronomist, a scientific researcher
and advisor, and a university professor. He owned a farm in
the Department of Paysandu where he grew beetroot. He
actively worked in the province of Canelones for the creation
of the University of the Republic School of Agronomics
Southern Regional Research Center in the town of Progreso.

LANGUAGES: He does not speak English.

VICE-MINISTER: Andres Berterreche is currently the Director
of the Forestry Department at the Ministry of Agriculture.

Minister of Education
--------------


17. (SBU) Maria Simon, President of Antel (the national
communications company),will replace Jorge Brovetto.
Brovetto will continue his interim duties as head of the
Frente Amplio. Felipe Michelini will continue as Vice
Minister.


18. (C) COMMENT: Major daily El Pais criticized Brovetto
saying he did absolutely nothing at the ministry. In stark
contrast, Simon has impressive academic credentials, which
combined with her management experience, bode well for the
ministry. END COMMENT.


19. (SBU) BIOGRAPHIC INFORMATION:

CAREER HIGHLIGHTS: Simon is the President of Antel, the state
telecommunications company, and was trained as an Industrial
Engineer. Since 1993 she has served as an honorary professor
in the telecommunications department of the School of
Electrical Engineering. She was Dean of the Faculty of
Engineering at the University of the Republic from June 1998
until her appointment as President of Antel.

PERSONAL DATA: born in June 4th, 1954 in Montevideo, Uruguay.

VICE-MINISTER: Felipe Michelini was elected to the lower
house in 1994 as part of the Espacio Nuevo faction of the
Frente Amplio and was reelected in 1999 and 2004. He earned
a law degree from the University of the Republic in 1987. He
has served as a professor of human rights at the School of
Law since 1991 and taught courses at the National Police
School in 2001 and 2003. In 1992 he earned a Master's degree
from Columbia University's School of Law. He also worked as
consultant for the Secretary General of the United Nations
Truth Commission in El Salvador until March 1993.

Minister of Housing
--------------

20. (SBU) Carlos Colacce, President of OSE, the state water
company, will replace Mariano Arana. Arana is mentioned for
a possible Ambassadorial appointment, although he is quoted
in the media saying he does not see himself in a diplomatic
role. Jacques Couriel, brother of MPP Senator Alberto
Couriel, will be the Vice-Minister.


21. (C) COMMENT: The appointment of the current head of the
water utility as Minister of Housing may indicate that
Vazquez is looking at a managerial approach to the country's
housing needs END COMMENT.


22. (SBU) BIOGRAPHIC INFORMATION:

CAREER HIGHLIGHTS: Colacce is a civil engineer and current
President of OSC, the state water company. He was Managing
Director of the Executing Unit of the Urban Sanitation
Project of the Montevideo Municipality (UESUM),an office
created by the Municipality to manage sanitation projects
with IDB financing.

Since 1996 he has overseen the Montevideo Sanitation Program
and Metropolitan Area - Stage Three (PSU III),a USD
200,000,000 project with significant IDB financing.

He has taught at the University of the Republic, conducted
research work, and worked as a consultant.

PERSONAL DATA: born on June 16, 1960 in Montevideo, Uruguay.

VICE-MINISTER: An architect and brother of MPP Senator
Alberto Couriel, Jacques Couriel worked on an International
Development Bank program to rehabilitate slum neighborhoods.
He has also worked as a consultant to the Montevideo
Municipality. Couriel signed an open letter in 2007 opposing
an FTA with the U.S.

CHIEF OF STAFF
--------------


23. (SBU) The President named Miguel Toma as his new Chief of
Staff to replace Gonzalo Fernandez. Toma is an independent
with strong earlier ties to the Colorado party. He is
currently serving as the Director of the National Office of
Civil Service. He was Head of the Legal Department of the
Ministry of Public Health (MSP) under President Sanguinetti
and Director General of the (MSP) under President Batlle.
The President's brother, Jorge Vazquez will continue as
Deputy Chief of Staff.


24. (SBU) COMMENT: The nomination of a former Colorado party
affiliate to one of the most powerful positions in the
government is surprising. Toma keeps a low profile and many
will be watching to see if he assumes as active a role as his
predecessor. END COMMENT.

PARASTATALS
--------------


25. (SBU) ANCAP - Raul Sendic was named to replace Daniel
Martinez as President of ANCAP, the state oil company.
Sendic is the eldest son of the founder of the Tupamaro
movement (MLN),Raul Sendic Antonaccio. He lived in Cuba
during his youth, while his father was incarcerated in
Uruguay. From 1999 to 2004, he was a representative in
Parliament for the "26 de Marzo", a radical group at the
extreme-left of the Frente Amplio. In 2005, he was nominated
as Vice-President and member of the Board of ANCAP. Since
then he has distanced himself from the 26 de Marzo group,
with which he broke relations in 2006. He is regularly
criticized by radical groups as have been "co-opted" by the
establishment. Sendic participated in the June 2007 biofuels
trip to the U.S. organized by the Embassy. He is
particularly interested in biofuels.


26. (SBU) OSE - Martin Ponce de Leon, currently Vice Minister
of Industry, was named to replace Carlos Carlacce as
President of the state water company, OSE. Ponce de Leon is
a Industrial Electrical Engineer. He worked for Vazquez at
the Montevideo Municipality as the Director of Public Works
from 1990-1992 and Director of Environmental Planning form
1992-1995. Later under Arana, he was the Director General of
Environmental Development from 1995-1996. In 1999 he was
elected to congress where he served on the Housing Committee.
He is a member of the Vertiente Artiguista party.
Ponce De Leon was born in Montevideo on August 13, 1943, is
married with four children and three grandchildren.


27. (SBU) ANTEL - Edgardo Carvalho, Vice President of Antel
since 1995, will replace Maria Simon. Carvalho is a member
of the Espacio Nuevo party and is the party's substitute
Senator for Rafael Michelini. Carvalho is trained as a
lawyer, was a university professor and provide legal council
to political prisoners from 1968-1976. He also lived in
exile in Spain during part of the dictatorship.

COMMENT
--------------

28. (C) COMMENT: The changes at MFA and Defense are net
positives from our perspective. Fernandez in particular will
be a welcome change from Gargano. In a February 12 meeting
with Ambassador, Fernandez complained that Gargano had
destroyed the MFA and Uruguay's image abroad. Fernandez said
he and the President believe good relations with the U.S. are
essential. While Fernandez says he was reluctant to accept
the job, the President insisted that Fernandez was the only
one, as a Socialist who could keep the FA formula intact.
Fernandez expressed concern that Gargano would seek every
opportunity from the Senate to argue that his "pure"
ideological foreign policy was being undone and that the
President's close man (Fernandez) was selling the soul of the
party. Fernandez said he will remain Vazquez' confidant on
general issues - despite his departure from the Presidency.



29. (C) COMMENT CONTINUED: Agazzi is likely to bring little
change at Agriculture. The other three new ministers are
well-known to us as managers of large parastatal companies.
They reflect Vazquez' stated preference to bring technocrats
into his cabinet who would be goal-oriented, not political.
At the same time, we believe the changes reflect a strategic
move to prepare the FA for the coming electoral contest, with
Gargano and Mujica (and eventually Astori) free from cabinet
responsibilities and able to focus on 2009. END COMMENT.

Baxter