VZCZCXYZ0022
PP RUEHWEB

DE RUEHSJ #0706/01 0892312
ZNY CCCCC ZZH
P 302312Z MAR 06
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC PRIORITY 4635
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RHMFISS/HQ USSOUTHCOM MIAMI FL

C O N F I D E N T I A L SAN JOSE 000706 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 03/08/2016 
TAGS: PGOV PINR CS
SUBJECT: RODGRIGO ARIAS, MINISTER OF PRESIDENCY 
 
REF: A. SAN JOSE 443 
 
     ¶B. 03 SAN JOSE 1788 
 
Classified By: Amb. Mark Langdale for reason 1.4 (b&d). 
 
Much More Than a Brother 
------------------------- 
¶1. (C) Rodrigo is the younger brother and by far the closest 
adviser to Oscar Arias.  He is the only permanent member of 
Oscar's inner circle and has always been at his brother's 
side in business and politics.  Since Oscar's divorce and the 
death of his mother, Oscar has come to rely even more on his 
brother (see ref A for more on the Oscar-Rodrigo 
relationship).  On March 16, Rodrigo described his role to 
the Ambassador as that of "Costa Rica's Prime Minister." 
 
¶2. (C) Rodrigo personally oversaw the effort to remove legal 
obstacles to Oscar Arias's repeat presidential campaign. 
When efforts to negotiate a change to the 1969 law forbidding 
second terms failed in the Legislative Assembly, Rodrigo 
engaged several law firms to challenge the law on 
constitutional grounds--despite his brother's public pledge 
not to invoke the courts.  Rodrigo Arias managed the 
successful electoral campaign, and is now managing the 
transition.  He was Oscar's first cabinet nomination--to be 
Minister of the Presidency, which is equivalent to Chief of 
Staff with additional responsibilities for liaison with the 
Legislative Assembly and oversight of the intelligence 
service.  Rodrigo held this same position during his 
brother's first term. 
 
Political, Educational, and Employment History 
--------------------------------------------- - 
¶3. (U) Rodrigo Arias began his involvement with politics in 
1974 when he was elected, at age 27, to the City Council of 
Heredia, a major suburb of the San Jose metropolitan area. 
Rodrigo was chosen by his peers to chair the council until 
the end of his term in 1978.  He served as Minister of 
Presidency during his brother's first term (1986-1990). 
Rodrigo also served for six months as a senior adviser to 
President Pacheco during 2003.  Rodrigo stepped down over 
differences with Pacheco confidants like Richardo Toledo and 
due to pressure from PLN leaders interested in forming a 
full-fledged opposition in response to the Pacheco 
Administration's falling popularity. 
 
¶4. (U) A lawyer by training, with a degree in commercial law, 
Rodrigo Arias graduated from the University of Costa Rica 
UCR) in 1969.  He obtained a Master's Degree in commercial 
law (M.C.L.) from the University of Pennsylvania in 1971 and 
returned to UCR to teach law from 1971-1973.  In 1971, 
Rodrigo also joined Facio and Canas, one of Costa Rica's 
largest and oldest law firms.  Although he resigned from the 
firm in 2003 to insulate it from his campaign to re-elect his 
brother, Rodrigo apparently maintains a financial interest in 
the firm as a retired partner. 
 
¶5. (U) In addition to his law practice, Rodrigo Arias has 
spent a substantial part of his career in corporate 
leadership positions.  In 1974, Rodrigo assumed and still 
holds the presidency of the Taboga Sugar Refinery, which is 
owned in part by the Arias family.  Between 1971 and 1985, 
Rodrigo held positions such as treasurer, legal adviser, 
director and vice president of the Costa Rican Stock Market. 
From 1997 to 2003, Rodrigo served as president of the stock 
market.  Since 1990, Rodrigo has directed the Agricultural 
and Industrial Sugar Cane League. 
Since 1996, he has served as president of the Sugar 
Producers' National Chamber and has been on the board of the 
Central American Division of the British American Tobacco 
Corporation since 2001. 
 
Personal Information 
-------------------- 
¶6. (C) Born July 26, 1946, Rodrigo is nearly six years 
younger than Oscar.  Rodrigo Arias married Milena Grillo in 
December 1977.  They had three children, Maria Andrea (DOB 27 
Aug 1978), Rodrigo Antonio (DOB 2 Feb 1980), and Juan Rafael 
(DOB 4 Mar 1982), before divorcing in October of 1994. 
Although Rodrigo jealously guards his privacy, he is 
noticeably happier, according to insiders, since he began 
dating Gretty Clausen Gutierrrez, the former wife of Manuel 
Jimenez Echevarria, President and part-owner of La Nacion, 
Costa Rica's largest daily newspaper.  Rodrigo told the 
Ambassador on March 29 that he will undergo hip replacement 
surgery during the April 21-23 time frame. 
 
Hint of Scandal 
--------------- 
¶7. (U) In July of 2005, as the campaign was heating up, La 
Nacion published documents insinuating that Rodrigo Arias had 
engaged in influence peddling in 2001 to support EBI, a 
Canadian company, in its successful effort to win a 
sole-source landfill contract with the City of San Jose. 
After the Comptroller had twice rejected the contract for 
insufficient sole-source justification, EBI's local 
representative requested assistance from Rodrigo Arias's law 
firm, Facio and Canas.  Rodrigo telephoned the Comptroller, 
and nine days later the contract was approved with no further 
justification required.  Facio and Canas billed EBI $1,500. 
Rodrigo admits making the phone call, denies wielding any 
influence, and called the bill for his services a mistake. 
No charges were ever filed.  The timing of the news report 
was clearly related to the electoral campaign and led to 
calls for Rodrigo to step down as campaign manager.  Oscar 
Arias flatly and publicly rejected the notion, and the issue 
quickly faded. 
 
Comment 
------- 
¶8. (C) It is difficult to overstate the power Rodrigo Arias 
exercises as the self-described "power behind the throne." 
Oscar seems quite content to rely on his brother as a 
gatekeeper.  It is clear that Rodrigo's opinion on any 
important issue will be a key factor in understanding the 
decisions of the second Arias Administration.  Oscar is the 
deep thinker, and it is Oscar's vision that will drive the 
government.  But it is Rodrigo who makes things happen. 
LANGDALE