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### Viewing cable 09SANTIAGO899, Introducing Eduardo Frei: Chile's Center-Left Presidential

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09SANTIAGO899 | 2009-11-16 15:03 | 2011-02-09 21:09 | CONFIDENTIAL | Embassy Santiago

`

    VZCZCXRO1062
    OO RUEHAO RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRG
    RUEHRS RUEHTM RUEHVC
    DE RUEHSG #0899/01 3201519
    ZNY CCCCC ZZH
    O 161518Z NOV 09
    FM AMEMBASSY SANTIAGO
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 0264
    INFO WESTERN HEMISPHERIC AFFAIRS DIPL POSTS IMMEDIATE
    RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC IMMEDIATE
    RUEAIIA/CIA WASHINGTON DC IMMEDIATE
    RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
    RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
    RUEATRS/DEPT OF TREASURY WASHINGTON DC
    RUEHC/DEPT OF LABOR WASHINGTON DC

` `

    C O N F I D E N T I A L SECTION 01 OF 04 SANTIAGO 000899

    SIPDIS
    STATE FOR WHA/BSC, INR/B, WHA/EPSC, S/P
    STATE PLEASE PASS TO USTR KKALUTKIEWICZ, EBRZYTWA, JKEMP, CSMOTHERS
    COMMERCE FOR DPAREKH, KMANN
    LABOR FOR ILAB--CGAY
    STATE PLEASE PASS TO FEDERAL RESERVE TOM CONNORS
    TREASURY FOR BLINDQUIST
    PENTAGON FOR OSD--MLENIHAN
    AMEMBASSY BRIDGETOWN PASS TO AMEMBASSY GRENADA
    AMEMBASSY OTTAWA PASS TO AMCONSUL QUEBEC

    E.O. 12958: DECL: 2019/11/16
    TAGS: PGOV ECON PINR CI
    SUBJECT: Introducing Eduardo Frei: Chile's Center-Left Presidential
    Candidate

    REF: SANTIAGO 755

    SANTIAGO 00000899 001.2 OF 004

    CLASSIFIED BY: Paul Simons, Ambassador, Stte, US Embassy Santiago;
    REASON: 1.4(B)

    ¶1. (C) Summary: Smart, dependable, honest, and dull, Concertacion
    candidate Eduardo Frei Ruiz-Tagle is attempting to regain the
    presidency that he held from 1994-2000 and that his legendary
    father, Eduardo Frei Montalva, held from 1964-1970. Despite many
    successes during his first four years as president, particularly in
    increasing Chile's international presence and promoting free trade,
    Frei's legacy is tainted by the economic setbacks that Chile
    suffered in the aftermath of the 1997 Asian financial crisis. In
    Chile's three-way presidential race, Frei represents both stability
    and stagnant politics, and his success depends on whether voters
    are ready to embrace the political change espoused by presidential
    rivals Marco Enriquez-Ominami and Sebastian Pinera, or remain with
    the familiar, safe, and tired Concertacion. End Summary.

    Family Background: The Long Shadow of Eduardo Frei Senior

    --------------------------------------------- ----------------------
    --------------

    ¶2. (SBU) Eduardo Frei Ruiz-Tagle was born in Santiago on June 24,
    1942, the fourth of seven children and the eldest son of Maria
    Ruiz-Tagle and Eduardo Frei Montalva. Eduardo Frei Ruiz-Tagle's
    childhood was marked by his father's ever-expanding role in
    politics. The elder Frei was already a prominent politician by the
    time his namesake was born, and went on to serve as Minister
    (1944-1946), Senator (1949-64, March- September 1973), and
    President (1964-70). (Note: Frei Montalva's last Senate term was
    cut short when the Congress was dissolved following the 1973
    military coup. End Note.) Considered one of Chile's greatest
    modern leaders, Frei Montalva is known for his role in founding
    Chile's Christian Democrat party and for the numerous reforms he
    enacted as president: expanding public education, supporting
    unionization efforts, building new public housing, improving health
    infrastructure, and expanding opportunities for agricultural
    workers to acquire their own land. Although initially supportive
    of the coup as a short-term antidote to Allende's excesses, Frei
    Montalva later became the face of opposition to military rule.
    When he died unexpectedly following hernia surgery in 1982, many
    suspected that he was poisoned by agents of Pinochet's regime,
    although this has not been proven.

    From Engineering to the Asian Financial Crisis: Frei Junior Turns
    to Politics

    --------------------------------------------- ----------------------
    -----------------------------

    ¶3. (SBU) As a young man, Eduardo Frei Ruiz-Tagle initially showed
    only moderate interest in the political scene where his father
    played a starring role. Frei studied civil engineering at the
    University of Chile and business management in Italy. Upon his
    return to Chile in 1968, he went to work for Sigdo Koppers, a major
    industrial firm, and climbed the ladder from project manager to
    partner in six years. However, the aftermath of his father's death
    (which his family views as "assassination") spurred the younger
    Frei to take on the family political mantle. In 1988 Frei sold all
    of his shares in Sigdo Koppers, reportedly for just over US $1
    million, his last substantial involvement in the private sector.
    He helped to found the Fundacion Frei, dedicated to his father's
    memory, and was one of the creators of the Committee for Free
    Elections, which promoted open elections during the Pinochet
    dictatorship. He actively campaigned for the "No" (anti-Pinochet)
    movement in advance of the 1988 plebiscite on continued military

    SANTIAGO 00000899 002.2 OF 004

    rule.

    ¶4. (SBU) In 1989, Frei ran for Senator from the East Santiago
    district, facing a field of six candidates, including his current
    rival, Sebastian Pinera. (Note: Reftel profiles Sebastian Pinera,
    septel will profile the third leading candidate, Marco
    Enriquez-Ominami. End Note.) Frei led the pack with 41% of the
    vote; he and second place finisher Pinera became the two senators
    from that district. In 1991 he was overwhelmingly elected as
    president of the Christian Democrat party. After defeating
    Socialist Ricardo Lagos in a primary, he became the Concertacion's
    1993 presidential candidate, winning the election with 58% of the
    vote, the highest total in recent Chilean history. Frei detractors
    charge that the politician rode to the presidency on his father's
    coattails.

    ¶5. (SBU) During his six-year presidential term, Frei implemented
    sweeping judicial reform; signed twelve free trade agreements and
    began negotiations for many more; further expanded the public
    education system; and used public-private partnerships to expand
    the nation's highway network. Frei struggled in the public
    eye--his approval rating ranged from 28 to 44 during most of his
    term--but is remembered fondly by rural, older, and poor Chileans.
    Frei's forward-leaning pro-trade and pro-Asia policies were
    ill-timed: his legacy is often cast--particularly by his
    critics--as presiding over Chile's painful economic contraction
    during the 1997-1998 Asian financial crisis.

    ¶6. (C) When his presidential term ended in 2000, Frei became a
    senator for life under the terms of the 1980 constitution but led
    the successful effort to eliminate such positions. In 2004 he was
    again elected to the Senate, this time representing the southern
    region of Concepcion, Los Lagos, and Los Rios. He served as Senate
    President from 2006-2008. Frei confidante Belasario Velasco tells
    us that if he is unsuccessful in his presidential bid, Frei will
    continue his work in the Senate and may even stand for re-election
    in 2012.

    Solid, Credible, Boring: The Personality Behind the Candidate

    --------------------------------------------- ----------------------
    --------------

    ¶7. (C) Frei's confidantes and family members describe him as a man
    who embodies many of the stereotypes of the Chilean people:
    earnest, hard-working, honest, and a bit stiff. Longtime friend
    Belasario Velasco says that Frei is "extraordinarily serious" and
    rigorous in his approach to work. Frei reads widely, particularly
    during travel time. Frei's daughter and campaign advisor,
    Magdalena Frei, notes that her father's analytical training as an
    engineer carries over to his political and policy decisions: he
    values logical, well-developed arguments supported by facts. He is
    open to influence by a wide range of people, basing his judgments
    more on data than on personalities. Once his mind is made up, he
    can be difficult to dissuade. Frei has a wide circle of advisors,
    but can be very loyal to specific individuals: he has clung to
    longtime friend Pablo Halpern as his communications director
    despite criticisms of Halpern's communications strategy and the
    departure of several key advisors due to disagreements with
    Halpern.

    SANTIAGO 00000899 003.2 OF 004

    ¶8. (C) Although a wealthy man, Frei is thrifty and not prone to
    display his fortune. Having inherited money from his father and
    his wife's family, and benefitting from the 1988 sale of his Sigdo
    Koppers shares, Frei is currently worth about USD 8 million
    according to estimates by Velasco. These assets are largely managed
    by his brother, Francisco Javier Frei, via the Inversiones Saturno
    investment firm. Nonetheless, Frei maintains a simple lifestyle:
    he has lived in the same house for 40 years, buying the house next
    door to serve as his office. Frei is seen as extremely honest, and
    advisors have told us that there are no financial or amorous
    skeletons in his closet.

    ¶9. (C) A serious illness in 2004 led Frei to relax a bit and
    "indulge his nature," longtime advisor Eugenio Fredes told us.
    Frei developed a severe infection after undergoing prostate surgery
    and nearly died that year. Afterwards, Fredes said that Frei
    appeared to have a change of spirit--he became less formal, wore
    more colorful clothing, opted for a more casual hair style, and
    began speaking with more conviction and passion. Always a man of
    few words, Frei has become more comfortable with public speaking in
    recent years according to several of his advisors. Although not
    known for his sense of humor, Frei sometimes shows his wit. During
    a September 2009 radio debate, Frei's microphone malfunctioned, and
    a technician handed him a new one. When the new microphone also
    failed to function, Frei quipped, "See, change isn't always
    better"--a gibe at the pro-change platforms of his two main
    opponents.

    Global Interests

    ---------------------

    ¶10. (C) Frei is intensely interested in the world beyond Chile's
    borders and values the relationships he forged with world leaders
    during his term as president. Frei's efforts to open Chilean trade
    to other countries had him frequently on the road during his term
    as president, leading to jokes that newspaper photos of him meeting
    with foreign leaders were cropped at his shoulders because he had
    his suitcases in his hands. Despite these international interests,
    Frei does not speak any foreign languages well. Confidantes
    describe him as friends with Secretary of State Hillary Clinton,
    former President Bill Clinton, Helmut Kohl of Germany, Fernando
    Cardoso of Brazil, Guilio Andreotti of Italy, Jacques Chirac of
    France, and King Juan Carlos and Felipe Gonzalez of Spain.

    Family Life

    -------------

    ¶11. (SBU) Frei is a dedicated family man who several confidantes
    described as having "an ideal relationship" with his wife of
    40-plus years, the irrepressible Marta Larraechea. Known as a
    "metiche" or busybody, Larraechea is as outspoken as Frei is quiet
    and is known for her blunt and sometimes offensive comments about
    her husband's political rivals and their wives. Larraechea ran for
    Mayor of Santiago in 2000 but lost to conservative candidate
    Joaquin Lavin. She later served as a city council member from
    2000-2004, but has not pursued her own political career further.
    She is particularly interested in work with the elderly, and makes
    a point of promoting organizations and events that assist seniors.

    SANTIAGO 00000899 004.2 OF 004

    ¶12. (C) Frei is also a very devoted father to his four daughters
    (Veronica, Cecilia, Magdalena, and Catalina) and six grandchildren.
    Cecilia, a lawyer, and Magdalena, a business administrator, are
    both on the board of directors of the Frei Foundation. Magdalena,
    who lived in the U.S. for two years, works on her father's campaign
    but does not appear to be a key player. The other daughters,
    social worker Veronica and psychologist Catalina, both faithfully
    attend many of their father's campaign events but generally
    maintain a lower profile.

    Comment

    -------------

    ¶13. (C) The embodiment of stability, dependability, and the
    status quo, Frei's candidacy has been saddled with the inevitable
    complaints about 20 years of one-coalition rule without
    capitalizing on the public's effusive admiration for the current
    Concertacion president, Michelle Bachelet. Frei is secure but
    boring, smart but inexpressive, and experienced but weary. His
    image pales compared to the hip, fresh, but risky and unpredictable
    candidacy of Marco Enriquez-Ominami, or the wealthier, more
    experienced, slick, poll-tested, presidency-or-bust approach of
    Sebastian Pinera. Frei's success or failure will depend, in large
    part, on whether the Chilean people are ready to embrace a youthful
    and ill-defined Enriquez-Ominami revolution, the more measured
    "same policies with new faces" Pinera pitch, or return to the
    safety of the tried, true, and tired Concertacion. End Comment.
    SIMONS

`