US embassy cable - 05QUITO869

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 000869 
 
SIPDIS 
 
E.O. 12958: DECL: 04/19/2015 
TAGS: PGOV, PREL, PINR, EC 
SUBJECT: PROFILE OF VICE PRESIDENT ALFREDO PALACIO 
 
REF: A. QUITO 852 
 
     B. QUITO 794 
 
Classified By: Ambassador Kristie A. Kenney for Reasons 1.4 (b) and (d) 
 
1.  (C) Summary:  Vice President Alfredo Palacio became Vice 
President in 2002 and hoped to reform health care and provide 
free coverage for the poor.  He has publicly criticized 
Gutierrez on numerous occasions, going so far as to call him 
a dictator just days ago.  Palacio, a green card holder, has 
very little influence in and access to the Government and is 
routinely excluded from Cabinet meetings.  Left-leaning but 
without party affiliation, he used his position as a 
cardiologist to develop friendships with influential 
politicians, especially in Guayaquil.  Palacio is a former 
minister of health and continues to practice cardiology. 
Media reports state he is a perfectionist but can come be 
abrupt when he doesn't get his way.  Succession rules 
designate Palacio as the president if Gutierrez were to 
resign or be impeached.  End Summary. 
 
Very Poor Relationship with Gutierrez 
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2.  (SBU) Palacio joined Gutierrez in order to promote health 
reforms, universal medical coverage, and free medical care 
for the poor; he became Vice President in 2002. 
 
3.  (C) The tension between Gutierrez and Palacio is 
palpable.  Gutierrez excludes Palacio from many government 
activities, such as Cabinet meetings, and Palacio 
periodically makes public jabs at Gutierrez.  Last year at 
this time, when the government was undergoing a less serious 
cyclical political crisis, Palacio held a press conference 
saying the Gutierrez had publicly badmouthed him and was 
using these statements as a "smokescreen" to cover up the 
country's political problems.  On March 24 of this year, he 
said Ecuador "was falling to pieces" and voiced support for 
the mayors of Quito and Guayaquil, who rejected a 
Presidential decree to extend the Holy Week holidays.  (The 
decree was widely believed to be an attempt to block Congress 
from meeting and naming an Attorney General, who the 
President did not favor.)   Palacio heavily criticized 
Gutierrez a few days ago and called him a dictator 
responsible for the country's "chaos" (Ref A). 
 
Political Ties and Beliefs 
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4.  (C) The cardiologist-politician took advantage of his 
medical profession to cultivate relationships with 
politicians in Guayaquil.  We believe he has friendly 
relations with former Presidents Leon Febres Cordero (PSC) 
and Rodrigo Borja (ID), Mayor of Guayaquil Jaime Nebot (PSC), 
and Mayor of Quito Paco Moncayo (ID).  Although Palacio 
refuses to identify with a particular party, he said on April 
19 that Gutierrez should return to the leftist-popular agenda 
on which he was elected. 
 
Biographical Information 
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5.  (U) Alfredo Palacio was born in 1939 in Guayaquil.  He 
studied medicine at the University of Guayaquil, graduating 
in 1967, and specialized in internal medicine and cardiology 
at hospitals in the Ohio and Missouri from 1969 - 1974. 
Since 1989, he has been a member of the University of 
Guayaquil's medical faculty and became a professor in the 
university's master of public health program in 2001. 
Palacio was minister of health from 1994 - 1996 under 
then-President Sixto Duran.  Palacio is a legal permanent 
resident of the United States, who divides his time between 
Quito and Guayaquil, where he still practices cardiology. 
 
6.  (U) Media reports indicate that Palacio is a 
perfectionist and obsessive about providing his patients with 
excellent care.  He can come across as arrogant and abrupt 
when defending his ideas.  He sometimes scolds people when 
what he wants isn't done correctly but typically quickly 
apologizes for his manner.  Palacio is said to take his time 
and think through political decisions with the input of 
advisors. 
 
Comment 
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7.  (C) If Gutierrez resigns or were impeached, succession 
rules dictate that Palacio would become President and serve 
the end of the four-year period in 2006 (Ref B).  Our contact 
with him has been largely formal to date.  If President 
Gutierrez falls, we doubt Palacio is strong enough to 
withstand competing political pressures for his own 
resignation.  If he does survive, he is likely to be a weak 
transitional figure beholden to party leaders. 
KENNEY