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DE RUEHQT #3075/01 3550726
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O 210726Z DEC 06
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5934
INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 6277
RUEHCV/AMEMBASSY CARACAS PRIORITY 2243
RUEHLP/AMEMBASSY LA PAZ DEC 0292
RUEHPE/AMEMBASSY LIMA PRIORITY 1242
RUEHGL/AMCONSUL GUAYAQUIL PRIORITY 1604
RHEFDIA/DIA WASHDC
RHMFISS/CDR USSOUTHCOM MIAMI FL

UNCLAS QUITO 003075 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PINR EC
SUBJECT: CORREA NAMES NEW CABINET MEMBERS, INCLUDING LABOR 
 
REF: QUITO 3033 
 
¶1.  (SBU) Summary: On December 19 President-Elect Rafael 
Correa announced two new cabinet level ministers and four 
lower level positions.  The new officials named were: Antonio 
Gagliardo Valarezo, Minister of Labor; Raul Carrion Fiallos 
as Sports Minister; Monica Chuji Gualinga will be the 
Communication Secretary; Leonardo Vicuna Izquierdo will head 
the State Bank; Jorge Glas Espinel, will lead the Solidarity 
Fund; and, Carlos Marx Carrasco will be the Internal Revenue 
Director.  Correa also confirmed plans to re-invent 
government by re-arranging parts of the executive branch. 
Information is scarce on most of Correa's newly announced 
appointees, but many of them appear to conform to Correa's 
preference for leftist academics without much government 
experience.  End Summary. 
 
¶2.  (U) The announcements took place at a press conference 
prior to receiving his official credentials as 
president-elect from the Supreme Electoral Tribunal.  During 
the event, Correa delivered a fiery speech to supporters 
reaffirming his agenda for radical change, including his 
intention to convoke a referendum on a constituent assembly. 
 
Antonio Gagliardo Valarezo to Labor 
----------------------------------- 
 
¶3.  (SBU) Gagliardo hails from Guayaquil, is considered a 
labor law expert and was the former Minister of Welfare under 
the PSC Rodrigo Borja administration.  He has also been an ID 
congressman and served as congressional vice president of the 
Labor Commission.  Correa said Gagliardo would focus on 
workplace quality, and increasing subcontracting law controls 
while putting an end to its abuses, and conduct a thorough 
review of the new draft labor code. 
 
Raul Carrion Fiallos, Minister of Sports 
----------------------------------------- 
 
¶4.  (SBU) Correa announced that Raul Carrion will head the 
new Ministry of Sports, which will replace the current Sports 
Subsecretariat.  Carrion is a cardiologist specializing in 
sports medicine.  Carrion hails from Guayaquil but lives in 
Esmeraldas and has worked for the Ecuadorian Soccer 
Federation and the Emelec and Esmeraldas Petrolero soccer 
teams. 
 
Monica Chuji Gualinga as Communication Secretary 
--------------------------------------------- --- 
 
¶5.  (SBU) The announcement of Monica Chuji surprised many 
analysts since she is a virtual unknown.  She is from the 
Amazon region, and has degrees in communication and 
Sociology.  She was a director of Warmi Wanguringa, a 
Sarayacu indigenous women's organization.  Sarayacu is an 
Amazon community of 2,000 Quichua Indians that have conducted 
a successful campaign to prevent oil exploration on their 
ancestral lands in the southern Amazon region of Ecuador. 
During his campaign Correa visited Sarayacu and expressed 
solidarity with the indigenous community by publicly stating 
that there would be no exploration or exploitation of 
indigenous lands unless the communities consented.  In naming 
Chuji as his spokeswoman, Correa told the press her fluency 
in both the Spanish and Kichwa languages would allow for 
better contact with the indigenous communities in the country. 
 
Leonardo Vicuna Izquierdo to the State Bank 
------------------------------------------- 
 
¶6.  (SBU) Vicuna, an economist, served in Abdala Bucaram's 
ill-fated administration and was named by President Palacio 
to the Special Investigative Commission on Foreign Debt.  He 
was a dean and rector at the University of Guayaquil and is a 
leftist writer known for his attacks against the Occidental 
petroleum company and foreign debt payments.  The State Bank 
will be a development bank directed at the most needy 
segments of society.  Vicuna will focus on raising capital 
which will then be used to fund sewage , and potable water 
projects in those municipalities deemed lacking in economic 
development. 
 
Jorge Glas Espinel will head the Solidarity Fund 
--------------------------------------------- --- 
 
¶7.  (SBU) Glas is from Guayaquil and an electrical engineer 
by training.  He is reportedly also a television personality 
on cable TV (Television Satelital) and a telecommunications 
system specialist.  The Solidarity Fund oversees Ecuador's 
two main telecommunications companies and the electricity 
sector, using proceeds for social projects.  Correa tapped 
him to handle the restructuring of Andinatel and Pacifictel, 
Ecuador's main telecommunications companies.  Correa has 
announced his intention to eliminate the Fund in the future 
in favor of the possible creation of a Technology and 
Communications ministry.  Correa also announced he plans to 
transfer management of the electrical companies to the Energy 
Ministry. 
 
Karl Marx Carrasco Collecting Taxes 
----------------------------------- 
 
¶8.  (SBU) Carlos Marx Carrasco is from the province of Canar 
in southern Ecuador and is an economics professor at the 
University of Cuenca.  He has authored several books and 
holds two master's degrees in finance and planning and 
development.  Correa said Marx's top priority will be 
increasing tax revenues. 
 
Government Reinvention 
---------------------- 
 
¶9.  (SBU) Rafael Correa announced that he plans to eliminate 
at least half of the 28 executive offices that report to the 
President.  He is also reportedly in favor of eliminating the 
Central Bank (note: but lacks constitutional authority to do 
so without the support of Congress) and the National 
Committee on Modernization (CONAM).  Correa intends to 
preside directly over the National Council on Competitiveness 
and will restructure the Deposit Guaranty Agency (AGD).  The 
Ministry of Agriculture and Livestock will assume 
responsibility for fisheries, a function formerly handled by 
the Ministry of Commerce, which will be eliminated.  The 
Ministry of Foreign Affairs will assume most trade functions 
formerly handled by Commerce.  Correa will also create new 
ministries for migrants, sports (see above), and transport. 
The former ministry of public works will be folded into the 
new transportation ministry. 
 
Comment 
------- 
 
¶10.  (SBU) Many of his choices continue to surprise many 
political analysts for their political anonymity.  Several of 
Correa's latest choices are relatively inexperienced in 
government and politics.  However, Correa's choices are 
consistent with his trend of selecting academic and 
ideological individuals.  The announcement of an indigenous 
women's activist advances his pledge to fill his cabinet 
positions with at least 40% women and recognizes the 
electoral support he received from indigenous communities. 
Correa's nod for Defense Minister is also expected to go to a 
woman civilian. 
JEWELL