C O N F I D E N T I A L SAN JOSE 000443
SIPDIS
SIPDIS
DEPARTMENT FOR WHA/CEN
E.O. 12958: DECL: 02/22/2016
TAGS: PINR, PGOV, PREL, CS
SUBJECT: BIOGRAPHICAL INFORMATION ON OSCAR ARIAS
Classified By: Ambassador Mark Langdale for reasons 1.4 (b) and (d).
1. (U) Oscar Arias Sanchez was elected on February 5, 2006,
as the first repeat president in Costa Rica since 1970.
Winning by a 1.12 percent margin (18,000 votes out of 1.62
million cast), Arias comes to office without the sweeping
mandate he expected. He was permitted to run for president
because of a controversial 2003 Supreme Court ruling that
overturned a ban on reelection. Arias's enemies consider his
reelection to be illegitimate. Fiercely independent,
patriotic, egotistical and idealistic, Arias will face
enormous economic challenges as he attempts to reverse the
damage done by years of ineffective governance. He will
assume office on May 8, 2006, and is clearly looking forward
to returning to the international stage where he will pursue
a ""moralistic"" foreign policy. Arias speaks fluent English.
Upbringing
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2. (U) Arias was born into one of Costa Rica's wealthiest
coffee-producing families on September 13, 1940, in the town
of Heredia, near San Jose. The Arias family had been heavily
involved in politics for several generations at the Cabinet
and Legislative Assembly level. Arias attended a public
primary school and then attended a private high school (Saint
Francis). He briefly enrolled at Boston University where he
intended to study medicine but instead returned home to study
law and economics at the University of Costa Rica, receiving
a bachelor's degree in 1966. At the university, Arias began
his life-long involvement with the National Liberation Party
(PLN). Arias continued his studies in England at the
University of Essex and the London School of Economics. His
graduate thesis, ""Pressure Groups in Costa Rica,"" earned him
the 1971 National Essay Prize. In 1974, he received a
doctoral degree in Political Science at the University of
Essex. While in England, Arias participated in protests
outside the U.S. Embassy against the Vietnam War.
3. (U) Arias taught political science at the University of
Costa Rica and married Margarita Penon on April 27, 1972.
They had two children (Sylvia Eugenia born in 1975, and Oscar
Felipe born 1979) before divorcing in 1990. Due to his
rising status within the PLN and work in the third successful
presidential campaign of Jose Figueres, Arias was offered the
Ministry of Planning and Economic Policy in 1972--a post he
retained under the Oduber Administration until stepping down
in 1977 to run successfully for a seat in Congress in 1978.
Arias became Secretary General of the PLN in 1981. In 1986,
Oscar Arias was elected to his first term as president of
Costa Rica.
4. (U) In 1987, President Arias drafted a peace plan to end
Central America's multiple armed conflicts. Widely
recognized as the Arias Peace Plan, his initiative culminated
in the signing of the Esquipulas II Accords by all the
Central American presidents on August 7, 1987. In that same
year he was awarded the Nobel Peace Prize. In 1988, Arias
used the monetary award from the prize to establish the Arias
Foundation for Peace and Human Progress. Under the auspices
of the Foundation, three programs were established: The
Center for Human Progress to promote equal opportunities for
women in Central America; the Center for Organized
Participation to foster change-oriented philanthropy in Latin
America; and the Center for Peace and Reconciliation to work
for demilitarization and conflict resolution in the
developing world.
Family
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5. (C) Arias relies heavily on his brother, Rodrigo, who
managed his campaign and is the only person who has
faithfully remained at his side since he left office 16 years
ago. The brothers are often referred to as one unit, ""Los
Arias,"" even by the likes of Laura Chinchilla, who shared the
ticket with Oscar, and by many of Oscar's handpicked
candidates for the Legislative Assembly. The brothers take
pride in never disclosing differences. According to Rodrigo,
their only difference is that he is more patient and
conciliatory whereas Oscar is more aggressive. A campaign
insider summed up the relationship as, ""Oscar reigns and
Rodrigo governs."" In a recent interview, Oscar called
himself a dreamer while his brother is the one who ""gets
things done."" (In the same interview, Oscar claimed that he
and Rodrigo had much in common with JFK and Robert Kennedy.)
Rodrigo will serve as Minister of the Presidency which is
similar to Chief of Staff but with control of the
intelligence service. This was the only cabinet-level
appointment Oscar would acknowledge before the elections.
According to one well informed source, Oscar's dependence on
his brother has grown significantly since the death of his
mother and his divorce deprived him of the constant
protection and encouragement he seems to require.
6. (C) Arias's famously bitter divorce from Penon has
apparently become less bitter over the years. He now speaks
highly of her, and she says they have a cordial relationship.
Nevertheless, she supported Otton Solis, Arias's political
opponent, for president. Arias is very proud of his son whom
recently graduated summa cum laude from Harvard and is now
studying at the London School of Economics. He also claims
to have a close relationship with his daughter.
Personality
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7. (C) Though intelligent and literate, Arias has always
been socially awkward and uncomfortable making public
appearances. He is the antithesis of the gregarious and
back-slapping politician. We suspect he is happiest thinking
deep thoughts in his library/study or plotting political
strategy alone with his brother. A self-described nerd, he
loves books and opera. While waiting for election results,
he said he read Dostoevsky. His heroes include Churchill and
Mother Teresa. If not a politician, he said he would have
like to have been a poet, violinist, or pianist.
8. (U) Asthmatic from birth, Arias has publicly acknowledged
that his personality reflects his mother's constant concern
for his health. Arias has said that he grew up ""reading
books and wearing sweaters rather than playing football with
other children."" Since childhood, his ambition was to become
president. Arias's daughter and members of his previous
cabinet describe him as persistent, ambitious, idealistic,
cultured, but perfectionist and arrogant. He has low
tolerance for those he believes are talking nonsense or
wasting his time.
9. (C) Arias has the voice and movements of a man much older
than his 65 years. He often slouches when sitting and is
unexpressive. He is slow to respond to questions. What he
says seems to be carefully measured. He sometimes exhibits
wry and even self-deprecating humor, but with a thin smile,
not a laugh. He often refers to his Nobel Prize and his many
honorary doctorate degrees. He is also a notorious
name-dropper and loves to be linked to the rich and famous,
e.g., Jane Fonda, Paul Newman, Robert Redford, Whoopi
Goldberg, the entire Kennedy family, John Kerry, Felipe
Gonzalez, and fellow Nobel laureates. Despite his phlegmatic
and lugubrious bearing, Arias enjoys a reputation as a lady's
man.
Attitude Towards the United States
----------------------------------
10. (C) Arias is both an admirer and critic of the United
States. He travels frequently to the United States and has
many contacts there in government, academia, and NGOs, as
well as personal friends. He speaks frankly to USG
interlocutors and does not hesitate to criticize U.S. foreign
policy. His most frequent criticisms concern U.S.
""unilateralism,"" the ""unacceptable and illegal doctrine of
preemptive war,"" U.S. opposition to wholesale disarmament,
and insufficient generosity to developing countries. On the
other hand, he approves of U.S. efforts to negotiate free
trade agreements that provide developing countries with
greater access to the U.S. market. He calls himself a
""fierce believer"" in the importance of a strong private
sector and foreign investment in order to generate
employment. Regarding his friendship with several prominent
Democrats in the U.S. Congress, he expressed disappointment
to us about their position on CAFTA: ""They supported my
peace accords because they were against Reagan. Now they
don't support CAFTA because they are against Bush.""
Wealth
------
11. (U) In the wake of the 2004 corruption scandals that
eventually tainted all Costa Rican ex-presidents since Arias,
many voters seemed attracted to Arias because he presumably
has no need to steal public funds and apparently did not do
so last time he was President. Arias's enemies searched
diligently for evidence of corruption throughout the campaign
without success. In addition to coffee, the Arias family has
large holdings in several sugar plantations and a sugar
refinery (El Tabagon). Arias's personal wealth lies in his
investment portfolio, the true value of which is unknown.
Arias resigned from the board of Grupo Sama, a major
investment firm, before launching his campaign, but still
owns 14.75 percent of the firm. Arias also owns stock in a
number of other investment firms according to the campaign
declaration he was required to file with the Comptroller
General's office. These firms are: Adral Corporation (100
percent), Inversiones La Lillyana (33.3 percent), Montaras
del Norte (33.3 percent), and Futuros Oras (50 percent).
Futuros Oras currently holds an investment account with
Morgan Stanley worth USD 579,000 according to Arias's
declaration. Missing, however, from the declaration is the
value of Arias's house, a local landmark near the U.S.
Embassy. Arias receives roughly USD 2,650 per month in
pension payments plus a dividend of USD 40,000 per year from
his investment in El Tabagon.
LANGDALE
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