BIOGRAPHIC REPORT: MINISTER OF INFRASTRUCTURE LUIS REYES

C O N F I D E N T I A L SECTION 01 OF 03 CARACAS 000400

STATE FOR WHA/AND-CAKUETTEH, EB/TRA/AVP-SBENNET,
EB/TRA/AN-WWHITTEMAN, INR/B
DOT FOR CAROLYN COLDREN
FCC FOR LATIN AMERICA - JEANNE GELLMAN
COMMERCE FOR 4331/IEP/WH/OSA-TWELCH
3134/USFCS/OIO/WH-RLENAHAN & ELENNY, ITA
FAA WASHINGTON DC FOR AIA 1-CCAPESTANY & AFS 50-LJENSEN
FAA MIAMI FOR INTERNATIONAL FIELD OFFICE FL//23, IAO-VTAMIRIZ

E.O. 12958: DECL: 02/08/09
TAGS: EAIR ECPS EIND PGOV PINR PREL VE
SUBJECT: BIOGRAPHIC REPORT: MINISTER OF INFRASTRUCTURE LUIS REYES

CLASSIFIED BY PERRY E. BALL, ECONOMIC COUNSELOR. REASON: 1.5 (B)
AND (D).



1. THIS IS A JOINT STATE-COMMERCE REPORT

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SUMMARY
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2. (C) LUIS REYES WAS APPOINTED VENEZUELA'S MINISTER OF
INFRASTRUCTURE BY PRESIDENT HUGO CHAVEZ. THE NEWLY CREATED
MINISTRY OF INFRASTRUCTURE WILL OVERSEE MATTERS OF TRANSPORT,
COMMUNICATIONS, AND URBAN DEVELOPMENT. REYES WAS FORCIBLY RETIRED
FROM THE VENEZUELAN AIR FORCE AS A LIEUTENANT COLONEL AFTER HIS
INVOLVEMENT IN THE NOVEMBER 27, 1992, COUP ATTEMPT. REYES IS A
PERSONAL FRIEND OF CHAVEZ. CHAVEZ'S COMMENT THAT "(REYES) IS AN
HONEST MAN WITH GREAT MANAGERIAL ABILITY, AND AN UNYIELDING
PATRIOT" INDICATES CONFIDENCE IN THE NEW MINISTER. END SUMMARY.

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MILITARY AND ACADEMIC BACKGROUND
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3. (C) BORN IN BARINAS IN 1953, REYES IS A PILOT AND AERONAUTICAL
ENGINEER. HE JOINED THE AIR FORCE IN 1970. REYES WAS ONE OF FOUR
VENEZUELAN AIR FORCE OFFICERS INVITED BY THE UNITED STATES AIR
FORCE IN 1974 TO ATTEND AN ENGLISH LANGUAGE COURSE AT LACKLAND AIR
FORCE BASE IN TEXAS, AND A ONE-YEAR UNDERGRADUATE PILOT TRAINING
COURSE AT MOODY AIR FORCE BASE IN GEORGIA. AFTER RETURNING TO
VENEZUELA, REYES PURSUED UNIVERSITY STUDIES IN BARQUISIMETO,
VENEZUELA, AND GRADUATED WITH AN UNDERGRADUATE DEGREE IN
ADMINISTRATION. HE BECAME A LIEUTENANT COLONEL IN 1982. HE
TRAVELED TO THE UNITED STATES IN 1988 TO ASSUME A POSITION IN THE
DIRECTORATE OF INTERNATIONAL LOGISTICS OF THE VENEZUELAN AIR FORCE
(FAV). HE RETURNED TO VENEZUELA IN NOVEMBER 1991, THREE MONTHS
BEFORE THE COUP ATTEMPT OF FEBRUARY 4, 1992. AT THAT TIME, HE
SERVED AS THE CHIEF OF INVESTIGATION ON A CASE INVOLVING A
VENEZUELAN AIR FORCE GENERAL WHO WAS EVENTUALLY CONVICTED OF
CORRUPTION.

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RELATIONSHIP WITH CHAVEZ
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4. (C) PRESIDENT CHAVEZ'S CONFIDENCE IN REYES COMES FROM MANY
YEARS OF FRIENDSHIP. REYES AND CHAVEZ GREW UP IN THE SAME TOWN,
ATTENDED THE SAME O'LEARY ELEMENTARY SCHOOL, AND PLAYED BASEBALL ON
CONTENDING TEAMS. BOTH REYES AND CHAVEZ JOINED THE MILITARY --
REYES THE AIR FORCE AND CHAVEZ THE ARMY.


5. (C) REYES WAS AN EARLY CONSPIRATOR WITH CHAVEZ. REYES TOLD THE
EL UNIVERSAL NEWSPAPER THAT HE VIVIDLY RECALLS A DISCUSSION HE HAD
WITH CHAVEZ ON DECEMBER 17, 1977, AFTER RETURNING FROM THE U.S. HE
SAID THAT CHAVEZ AND HE TALKED ABOUT HOW CORRUPTION HAD DISTORTED
THE ORGANIZATION OF THE ARMED FORCES. FOLLOWING THIS DISCUSSION
REYES INCORPORATED HIMSELF IN CHAVEZ'S CONSPIRACY. BEGINNING IN
1982, REYES WAS PUT IN CHARGE OF COORDINATING THE FAV'S ACTIONS IN
THE THEN FUTURE COUP ATTEMPTS.

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INVOLVEMENT IN "THE CONSPIRACY"
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6. (C) REYES DID NOT PART IN THE FEBRUARY 4, 1992, COUP ATTEMPT.
INSTEAD, AS THE PERSON CHARGED WITH COORDINATING THE FAV'S ACTIONS
IN THE COUP ATTEMPT, REYES MANAGED TO PREVENT THE FAV FROM RISING
AS A COUNTER-INSURRECTION FORCE. REYES EXPLAINED, "(SINCE) THE
CONTINUITY (OF THE MILITARY) HAD BEEN BROKEN,...WE DECIDED TO
NEUTRALIZE THE AIR FORCE AT THAT TIME." REYES WAS ARRESTED AND
DETAINED ONE AND A HALF MONTHS AS A RESULT OF HIS INACTION DURING
THE FEBRUARY 4 COUP ATTEMPT. AFTER HIS RELEASE, REYES BECAME ONE
OF THE LEADERS OF THE NOVEMBER 27, 1992, AIR FORCE-LED COUP
ATTEMPT. HIS PARTICIPATION WAS MARKED BY FLYING A F-16 AT MACH 1
SPEED OVER THE CITY OF CARACAS. THE FLIGHT REPORTEDLY BROKE
WINDOWS IN MANY PARTS OF THE CITY. REYES SAID HE BROKE THE SOUND
BARRIER TO FRIGHTEN THE ENEMY FORCES. THE COUP ATTEMPT FAILED AND
REYES WAS IMPRISONED FOR 14 MONTHS AT FORT TIUNA, THE MILITARY
HEADQUARTERS IN CARACAS. REYES REMAINED ALLIED TO CHAVEZ'S
MOVEMENT AND WAS LATER APPOINTED AS CHAVEZ'S PRESIDENTIAL CAMPAIGN
COORDINATOR IN LARA STATE IN 1998.

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NEW RESPONSIBILITIES
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7. (C) REYES WILL HEAD UP THE MINISTRY OF INFRASTRUCTURE, WHICH
WILL CONSOLIDATE THE MINISTRY OF TRANSPORT AND COMMUNICATION (MTC)
AND THE MINISTRY OF URBAN DEVELOPMENT (MINDUR). THIS "SUPER-
MINISTRY" WILL BE CHARGED WITH ALL MATTERS PERTAINING TO AIR, LAND,
AND WATER TRANSPORT, ROAD INFRASTRUCTURE, PUBLIC HOUSING,
TELECOMMUNICATIONS, AND "WHITE ELEPHANT" PROJECTS (PROJECTS LEFT
UNFINISHED BY PREVIOUS ADMINISTRATIONS). INFRASTRUCTURE PROJECTS
PERTAINING TO OTHER MINISTRIES WILL ALSO BE CENTRALIZED IN THE
MINISTRY. REYES PLANS TO DIVIDE THE MINISTRY'S RESPONSIBILITIES
AMONG THREE SECRETARIATS, ONE EACH FOR TRANSPORT, COMMUNICATION,
AND URBAN DEVELOPMENT. HE ALSO INTENDS TO INCREASE THE
RESPONSIBILITIES OF INDEPENDENT AGENCIES RELEVANT TO THE FUNCTIONS
OF THE MINISTRY. REYES SAID HE ACCEPTED THE POSITION AS MINISTER
OF INFRASTRUCTURE BECAUSE OF THE "PERSONAL CHARGES GIVEN TO HIM BY
THE PRESIDENT." REYES HAS ALREADY MADE A GOOD IMPRESSION ON THE
BUSINESS COMMUNITY, WHICH WELCOMED HIS VIEWS ON DECENTRALIZATION OF
THE MINISTRY AND INCREASED MARKET LIBERALIZATION AS A "PLEASANT
SURPRISE."

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THE "MINI-MINISTRO'S" GOALS
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8. (C) REYES DOES NOT WANT TO BE KNOWN AS "SUPER-MINISTRO," BUT
PREFERS THE TITLE OF "MINI-MINISTRO." HE BELIEVES IN
DECENTRALIZATION OF THE MINISTRY'S FUNCTIONS AND WANTS TO CREATE A
SMALLER, MORE EFFICIENT MINISTRY. HE SAYS DECENTRALIZATION IS A
GOOD WAY TO RID A LARGE BUREAUCRACY OF CORRUPTION. ONE OF REYES'
PRIMARY GOALS IS TO SECURE FAA CATEGORY I FLIGHT SAFETY STATUS FOR
VENEZUELA. AIRPORTS THAT DO NOT MEET REQUIRED STANDARDS WILL BE
CLOSED DOWN. REGULATIONS WILL BE ENFORCED AND LOCAL GOVERNMENTS
RESPONSIBLE FOR AIRPORTS WILL HAVE TO COMPLY. REYES DOES NOT LEAVE
OUT THE POSSIBILITY OF PRIVATIZING AIRPORTS.


9. (C) REYES CONSIDERS THE TELECOMMUNICATIONS SECTOR TO BE A
STRATEGIC SECTOR. HE WANTS TO CONTINUE OPENING THE SECTOR, AND
MOVE UP THE DATE FOR TERMINATING THE NATIONAL TELEPHONE COMPANY,
CANTV'S, MONOPOLY. AT AN INVESTMENT MEETING HELD IN MID-JANUARY,
REYES PLEDGED TO REVAMP THE TELECOMMUNICATIONS REGULATORY AGENCY,
CONATEL, TO MAKE IT LESS DEPENDENT ON A SINGLE INDIVIDUAL. REYES
HOPES TO ATTRACT PRIVATE SECTOR INVESTMENT VIA CONCESSIONS TO
REVISE THE TELECOMMUNICATIONS FRAMEWORK (SEPTEL).


10. (C) REYES WANTS TO HAVE LOCAL GOVERNMENTS PROVIDE PROPER
UPKEEP OF PUBLIC TRANSPORTATION; HAVE THE URBAN DEVELOPMENT
SECRETARIAT CONSTRUCT MORE PUBLIC SPACE (RATHER THAN JUST PUBLIC
HOUSING); ATTRACT PRIVATE INVESTMENT FOR ROAD CONSTRUCTION; AND
REACTIVATE THE VENEZUELAN MERCHANT MARINE BY HAVING PRIVATE
COMPANIES TAKE ON VENEZUELAN FLAG VESSELS. HE IS A REALIST WHEN IT
COMES TO WHITE ELEPHANT PROJECTS. HE ATTRIBUTES THE STATUS OF
THESE PROJECTS TO THE OVER-AMBITION OF PREVIOUS ADMINISTRATIONS,
WITH NO REGARD FOR THE ACTUAL FUNDING AVAILABLE. REYES INTENDS TO
COMPLETE SOME PROJECTS, BUT ONLY AS MANY AS THE BUDGET PERMITS.
REYES SAID THE MOST FEASIBLE PROJECTS TO FINISH WOULD BE THE
HIGHWAY FROM SAN FELIPE TO PUERTO CABELLO, THE BYPASS NORTH OF
BARQUISIMETO, AND A SECTION OF THE HIGHWAY LEADING FROM CARACAS TO
THE EASTERN REGION OF VENEZUELA.

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REYES AS AN HONEST MAN
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11. (C) THERE IS LITTLE INFORMATION AVAILABLE ON REYES' PERSONAL
CHARACTER. HOWEVER, PRESIDENT CHAVEZ CHARACTERIZED HIM AS AN
"HONEST MAN" WHEN HE WAS APPOINTED. A SENIOR EXECUTIVE IN A
VENEZUELAN COMMERCIAL AIRLINE TOLD EMBOFF THAT SEVERAL VENEZUELAN
MILITARY OFFICERS WHO KNOW REYES UNIFORMLY DESCRIBED HIM AS
"STRICT, HONEST, AND INTELLIGENT." THE EXECUTIVE ALSO REPORTED
THAT REYES SAID TO HIM, "I REALLY NEED YOUR HELP...I NEED AN HONEST
OPINION ABOUT AVIATION ISSUES," BECAUSE HE EXPECTS TO BE APPROACHED
BY NUMEROUS INDIVIDUALS REPRESENTING SPECIAL INTERESTS.

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COMMENT
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12. (C) REYES' APPOINTMENT WILL BE AN IMPORTANT PART OF CHAVEZ'S
ANTI-CORRUPTION CAMPAIGN SINCE THE MINISTRY OF INFRASTRUCTURE WILL
ABSORB THE MTC, WHICH IS WELL-KNOWN FOR ITS INEFFICIENCY AND
CORRUPTION. REYES' ACCESS TO CHAVEZ AND HIS HONESTY PROVIDE THE
CREDIBILITY HE WILL NEED TO CHANGE THE OLD WAYS OF DOING BUSINESS
IN THE NEW MINISTRY.


MAISTO