NATIONAL PARTY STRENGTHENING IN SWING STATE

C O N F I D E N T I A L MONTEVIDEO 000359

SIPDIS

WHA/BSC FOR MARY DASCHBACH

E.O. 12958: DECL: 05/27/2018
TAGS: PREL UY
SUBJECT: NATIONAL PARTY STRENGTHENING IN SWING STATE
MALDONADO

Classified By: Charge d'Affaires Robin Matthewman
for reasons 1.4 (B) and (D)


1. (U) Summary: Leading up to the June primaries, Emboffs met
with four of the five congressmen from Maldonado, the
third-most populous Uruguayan department and the home of
Punta del Este, considered by many to be the face of Uruguay,
to discuss the department's primary issues and the likely
results of this year's presidential vote. All congressmen
emphasized the importance of face-to-face campaigning, and
the campaign issues of security, investment, and education.
Widespread disappointment with the performance of the current
governor, ruling coalition Frente Amplista (FA) Oscar de los
Santos, leads many to believe that the Maldonado municipal
governorship, formerly a National Party stronghold, will
return to the National Party following the gubernatorial
elections in May 2010. End summary.

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All Eyes on Maldonado
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2. (U) Although the primary elections on June 28 will not
change the leadership in Maldonado, voter preferences will be
an important indication for the presidential/congressional
elections in October. Maldonado voters have not always been
a bellwether for Uruguay's political inclinations, but its
growing population and its distinct situation of having an
extremely unpopular governor from the ruling party are
drawing growing attention, especially from the National
Party. If the June 28 results indicate, as suspected, a
weakening of FA support, it is likely that both leading
parties will redouble their efforts in Maldonado. In
addition to support for its presidential candidate, the
National Party will seek to claim an additional congressional
seat.

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Background
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3. (U) Maldonado is the home of world-famous Punta del Este,
an Uruguayan resort that attracts millionaires from the
region and around the world. International visitors, mostly
from Argentina and Brazil, flock to "Punta," seeking not only
luxurious hotels and restaurants, but also a place where
their children can play on the beach without bodyguards.


4. (U) Many Uruguayans are also drawn to Punta del Este and
other popular tourist destinations in the department, as
their wealth and prestige promise employment opportunities.
Whether in service or in construction, Maldonado receives a
high level of internal migration, which causes monumental
social challenges. Those challenges become especially
apparent during the low season, when jobs grow scarce.
Maldonado reports 140,192 people (5.4 percent of the
population) living in squatter slums, which, in some cases,
border exclusive resorts. This juxtaposition creates
favorable conditions for criminal activity.


5. (SBU) Previously a National Party stronghold, Maldonado
elected a Frente Amplio municipal government in 2005.
However, since 2005, large portions of the population and
political spectrum has become disenchanted with the Frente
Amplio. That disenchantment has been spurred by a lack of
funding from the central government for social services, a
halt in investment, and an increase in crime, circumstances
that run contrary to the glamorous tourism image of the
department. Maldonado officials often lament that while the
department seems wealthy in comparison to other departments,
its costs are high, and they have a disproportionately high
tax obligation to the federal government.

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Suffering From An Inefficient Municipal Government
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6. (C) Maldonado is headed by Frente Amplio governor Oscar de
los Santos, who won the 2005 municipal elections with 47%
support. Frente Amplio congressman Dario Perez notes that de
los Santos projected a humble and compassionate image during
his campaign, but has since alienated both party members and
opposition figures. National Party congressmen Nelson
Rodriguez Servetto and Federico Casaretto noted that de los
Santos' aloof personality created a communication barrier
between the governor's administration and the opposition,
leading to a political stalemate in the department.


7. (C) All the congressmen who met with Emboffs agreed that
de los Santos' lackluster performance has affected

Maldonado's ability to implement investment projects,
distribute basic social services to the population, and
improve public security. A very tactile example that
continues to shock Punta residents and visitors was the
decision to switch garbage collection providers at the height
of the tourist season. The transition resulted in delayed
trash collection and piles of garbage in the streets, leaving
tourists with the wrong sort of memories. Both National
Party congressmen used this example to emphasize that de los
Santos' lack of governing ability was affecting the
population's view of the Frente Amplio. They also noted that
the new contract resulted in more expensive and inferior
garbage collection services for Maldonado.


8. (C) Maldonado has experienced a slowing of major
investment projects under de los Santos. Congressman
Rodriguez told emboffs that the lack of action by de los
Santos on major investment projects does not bode well for
the future infrastructure of Maldonado. According to
Cardoso, numerous business plans submitted during de los
Santos's tenure have gone unexamined. Attributing de los
Santos' hesitation on approving projects to his supposed
aversion to foreign investment, Cardoso worried that what he
described as a systematic setback would discourage investment
projects in the future.


9. (SBU) Biographical information: Oscar de los Santos,
born February 17 1962, is a painter by trade. His mother was
a domestic servant, father a factory worker, and he began
working at age nine, though he managed to finish high school.
He began his political career as a union leader for the
construction workers union. Prior to his current position,
he was a city council member for five years. He is married
with two children.

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Looking for Investment Opportunities
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10. (SBU) Highly dependent on tourism and continued
investment in tourism infrastructure, Maldonado has suffered
from the lack of major investment projects and institutional
obstacles over the last five years. Maldonado's congressmen
presented emboffs with several ideas to diversify investment
to increase the economic potential of the province.
Blueberry and olive production were among the product
development ideas, as well as the construction of a new pier
in Piedras del Chino, a nearby resort area. Colorado Party
congressman German Cardoso supports traditional
infrastructure projects, but emphasizes concerns about
possible environmental impacts. He stated that the maritime
ecosystem is fragile (one of the few places in the world
where whales come to give birth),and that proceeding with
development without environmental impact studies would be
self-destructive, as much of the attraction to the department
is nature-based. The National Party congressmen viewed
alternative energy as a growth industry in Maldonado. They
also had concerns about the environmental effects of
development, specifically in regards to the municipality's
construction of high rise buildings close to the shore line.

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Security: A Major Concern
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11. (SBU) Polls show public security to be top among concerns
of the Uruguayan population, and increased population and
vast wealth gaps between citizens make it a special challenge
in Maldonado. National Party congressman Casaretto told
emboffs that he had been a victim of six robberies, and other
members of his campaign team had also been robbery victims.
The National Party is emphasizing public security as the
principal issue in their campaigns, in fact Casaretto's
campaign slogan is: "Security is the most important issue."


12. (C) The congressmen's approach to improving security
varied slightly, with the National Party congressmen
consistently returning to their perception of a deteriorating
social fabric. Their more conservative approach focused on
improving education and reinserting morals through the
education system. Cardoso has a somewhat radical plan of
integrated security, a plan that would unite efforts of the
police, military, firefighters, health workers and the
general population.

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Biographical Information
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13. (SBU) German Cardoso is the sole Colorado Party

congressman from Maldonado, part of Pedro Bordaberry's "Vamos
Uruguay" faction. He has been a party member since 1994, and
in the congress and city council since 2000. His private
activity is in the tourism sector. He is young, energetic,
and friendly.


14. (SBU) Nelson Rodriguez Servetto is relatively
conservative National Party member, and a supporter of
Lacalle. He was formerly the director of public works for
Maldonado.


15. (SBU) Federico Casaretto is the founder of the
"Renovacion del Partido Nacional" (Renovation of the National
Party) faction, and a Larranaga supporter. He is completing
his first term in the congress, though has worked in politics
since age 24, starting as a staffer to National Party
senator, Carlos Julio Pereyra. He is young (under 40) and
idealistic with gubernatorial aspirations- public opinion
polls show he has a good chance at becoming the next governor
of Maldonado. He participated in the 2007 International
Visitor Program, "Transparency and Good Governance for
Municipal Leaders."


16. (SBU) Dario Perez is a medical doctor and a
self-proclaimed maverick. He has been in congress since
1995, and is the leader of Cabildo 2000, a moderate Frente
Amplio faction. From the town of San Carlos, famed for being
one of only three towns in the country with a municipal
government, he considers himself to be an honest,
down-to-earth representative of his department. He was
imprisoned during the military regime. Emboffs suspect that
his smooth charisma may be the key to his political success.

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Comment
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13. (C) As the electoral season continues, Maldonado will be
a key state to watch. The lackluster performance by the
ruling Frente Amplio municipal government and the resonating
emphasis on public security by the National Party could
prompt the state to turn to the National Party in the
municipal and upcoming presidential elections, giving the
National Party an important boost.

Matthewman