Cablegate: Prime Minister Ramos-Horta Announces New Government

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DE RUEHDT #0368/01 1981209
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P 171209Z JUL 06
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SUBJECT: PRIME MINISTER RAMOS-HORTA ANNOUNCES NEW GOVERNMENT

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1. (SBU) Summary: Prime Minister Jose Ramos-Horta on Friday,
July 14, announced the composition of the government over which
he will preside. The new government resembles the previous one
led by ex-Prime Minister Mari Alkatiri in most respects, with a
few notable changes. The majority of ministers, vice ministers
and secretaries of state remain in their positions and, despite
his stated intent to dramatically reduce the size of the
cabinet, there were no significant cuts. The most important
addition to the new government, and a victory for Ramos-Horta
vis-`-vis Fretilin, was the appointment of Jose Luis Guterres as
Minister of Foreign Affairs, who will leave his posting as East
Timor's Ambassador to the United Nations to take over this
portfolio. Additional changes include: the elevation of Jose
Teixeira to Minister of Natural Resources, Petroleum and Energy
Policy, previously held by Alkatiri, and the replacement of the
education and transportation ministers. Although most of the
cabinet's composition was not controversial, there were several
indications of the tensions between Ramos-Horta's and Fretilin's
priorities. He successfully overrode the party's objections to
Guterres' appointment, but two important vice minister
positions---in the interior and justice ministries---remain
vacant due to disagreements about the candidates. End summary.

2. (U) Prime Minister Jose Ramos-Horta unveiled the new
government in a ceremony at the President's office on July 14.
The announcement held few surprises as he had previously made it
known that there would be no significant reshuffling. He has on
several occasions stated his intent to cut the size of the
cabinet by as much as half, possibly by reducing the number of
secretary of state positions. However, the newly-announced

SIPDIS
cabinet is only down by one vice minister position, leaving a
total membership of 37, including 15 ministers, 12 vice
ministers 10 secretaries of state.

Ambassador Guterres takes over foreign affairs, Ramos-Horta
retains defense
--------------------------------------------- --------------
----------------
3. (SBU) Jose Luis Guterres, who has for the past few years
served as East Timor's Ambassador to the United Nations and the
U.S., will return to take over the foreign affairs portfolio
from Ramos-Horta. Guterres' appointment represents a victory
for Ramos-Horta as Fretilin initially resisted the idea and
pushed for Hernani Coelho, the Ambassador to Australia.
Guterres, a founding member of Fretilin, is associated with the
anti-Alkatiri reform group within the party and campaigned to
unseat Alkatiri as the party's Secretary General at the party
congress in May. Many observers are convinced that he would
have been successful if the voting had been done via secret
ballot as originally planned. In a conversation with Ambassador
Rees immediately following the swearing in ceremony, Ramos-Horta
expressed his hope that once back in country for the long term,
Guterres will be well positioned to promote reform within
Fretilin. Noting that Guterres had had only two weeks to
campaign before the May congress, Ramos-Horta expressed his hope
that he might now be able to assume the leadership and "make the
party more liberal, more open minded." (Note: Although the
Fretilin has not scheduled an extraordinary congress to re-do
the leadership election, the reform group continues to push for
this and has reportedly filed its case arguing that the current
leadership was illegally elected. Current party leadership has
indicated that they would agree to another congress only if the
courts rule against them. End note.)

4. (U) Ramos-Horta will remain Minister of Defense while also
serving as Prime Minister. There were rumors earlier in the
week that the portfolio might be shifted to the commander of the
armed forces, Brigadier General Taur Matan Ruak. However,
Ramos-Horta had made his desire to retain the defense portfolio
clear over recent weeks and does not appear to have been
challenged on this.

New ministers fill vacancies due to recent resignations
--------------------------------------------- ----------

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5. (SBU) Three ministries remained vacant at the top in the wake
of the various recent resignations, including the Ministry for
Natural Resources Petroleum and Energy Policy, the Ministry of
Education and Culture, and the Ministry of Transportation and
Communications. The Natural resources portfolio was previously
held by Alkatiri, but his resignation from the position became
effective simultaneously with his resignation as Prime Minister.
The education and transportation ministers both resigned
shortly before Alkatiri stepped down and Ramos-Horta decided not
to ask either of them to return, citing them both as "weak"
ministers.

6. (SBU) Taking Alkatiri's place as the Minister of Natural
Resources is Jose Teixeira, who has been elevated from the Vice
Minister position. Teixeira, though not a member of Fretilin,
has been a strong Alkatiri ally and had previously stated in
conversations with Emboffs his intent to resign immediately if
Alkatiri was pushed out. Teixeira was educated in Australia and
holds dual Australian and Timorese citizenship. The new
Minister of Education is Rosalia Corte-Real, who has also been
elevated from Vice Minister. Corte-Real is the former Vice
Minister of Education for Primary and Secondary Education and
one of 15 members of Fretilin's National Political Committee.
Filling the position of Minister of Transportation is Inacio
Moreira. Moreira, who has previously been considered for a
position in the Ministry of Education, will leave his position
as the Director of the Faculty of Engineering at the National
University of Timor-Leste to take up his new position.

Vacancies remain, revealing outstanding disagreements
--------------------------------------------- --------
7. (SBU) Several vacancies remain in the cabinet at the vice
minister level. Some of these vacancies were inherited from the
previous cabinet, but two important ones in the interior and
justice ministries respectively remain unfilled despite
Ramos-Horta presenting candidates he strongly supports. He put
forward Olandina Alves, a former commissioner on the domestic
Commission for Reception, Truth and Reconciliation (CAVR) and
currently an alternate on the bilateral Truth and Friendship
Commission (TFC) as Vice Minister of Interior, noting to Emboffs
that she would serve as a strong advocate on human rights issues
within the ministry. However, he reported to Ambassador Rees
that Fretilin argued against her claiming that she does not show
up at meetings, but in his view "because she's independent."
(Note: Ramos-Horta is well aware that the national police, which
fall under the Ministry of Interior, have been the most
prominent source of human rights violations reported in the
annual Human Rights Report and other public reports. End note.)
For the position of Vice Minister of Justice, Ramos-Horta
wanted to bring on Isabela Feireira, a human rights lawyer who
served as Alkatiri's advisor on human rights but was apparently
blocked by Fretilin on this appointment as well.

List of members of the Ramos-Horta's cabinet
--------------------------------------------
8. (U) Below is a complete list of the new cabinet:

MINISTERS
-- Minister for Foreign Affairs and Cooperation, Jose Luis
Guterres (replacing Jose Ramos-Horta)
-- Minister for Planning and Finances, Madalena Brites Boavida
(incumbent)
-- Minister for State Administration, Ana Pessoa (incumbent)
-- Minister for Defence, Josi Ramos-Horta (incumbent, replaced
Roque Rodrigues in June)
-- Minister for the Interior, Alcino Barris (incumbent, replaced
Rogerio Lobato in June)
-- Minister for the Presidency of the Council of Ministers,
Antoninho Bianco (incumbent)
-- Minister for Transport and Communications, Inacio Moreira
(replacing Ovidio Amaral)
-- Minister for Agriculture, Forests and Fisheries, Estanislau
da Silva (incumbent)
-- Minister for Education and Culture, Rosalia Corte-Real

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(elevated from Vice Minister, replacing Armindo Maia)
-- Minister for Health, Rui Maria de Arazjo (incumbent)
-- Minister Labour and Community Reinsertion, Arsinio Paixco
Bano (incumbent)
-- Minister for Justice, Domingos Sarmento (incumbent)
-- Minister for Development, Arcanjo da Silva (incumbent,
replaced Abel Ximenes in June)
-- Minister for Public Works, Odete Victor (incumbent)
-- Minister for Natural Resources, Minerals and Energy Policy,
Josi Teixeira (elevated from Vice Minister, replacing Mari
Alkatiri)

VICE MINISTERS
-- VM for Foreign Affairs and Cooperation, Adalgiza Magno
(incumbent)
-- VM for Planning and Finances, Aicha Bassarewa (incumbent)
-- VM for State Administration, Valentim Ximenes (incumbent)
-- VM for State Administration, Filomeno Aleixo (new, replacing
Ilda Conceicao)
-- VM for Interior, TBA (previously held by Alcino Barris who is
now Minister)
-- VM for Transport and Communications, TBA (vacant in previous
cabinet)
-- VM for Agriculture, Forests and Fisheries, Francisco Tilman
Benevides (incumbent)
-- VM for Education for Technical and Superior Education, TBA
(vacant in previous cabinet)
-- VM for Primary and Secondary Education, Ilda da Conceigco
(moved from State Administration, replacing Corte-Real who is
now Minister)
-- VM for Health, Luis Lobato (incumbent)
-- VM for Justice, TBA (previously held by Manuel Abrantes)
-- VM for Public Works, Raul Mousaco (incumbent)
-- VM for Development, Antsnio Cepeda (replacing Arcanjo da
Silva who is now Minister)

SECRETARIES OF STATE

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-- Sec. of State for the Council of Ministers, Gregsrio de Sousa
(incumbent)
-- Sec. of State for the Environmental, Ordination of the
Territory Coordination, Joco Batista Alves (incumbent)
-- Sec.of State for Youth and Sport, Josi Manuel Fernandes
(incumbent)
-- Sec. of State for Culture, TBA (vacant in previous cabinet)
-- Sec. of State for Veterans'and Former Combatants Affairs,
David Ximenes (incumbent)

SECRETARIES OF STATE FOR THE REGIONS

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Sec. of State for the Coordination of Region I, Josi Reis
(incumbent)
Sec. of State for the Coordination of Region II, Adriano
Corte-Real (replacing Virgilio Simith)
Sec. of State for the Coordination of Region III, TBA
(previously held by Egidio de Jesus)
Sec. of State for the Coordination of Region IV, Lino Torrezco
(replacing Cesar da Cruz)
Sec. of State resident in Oe-Cusse, Albano Salem (incumbent)

Comment
-------
9. (SBU) This new cabinet reveals some of the power dynamics
occurring behind the scenes between Ramos-Horta and Fretilin.
In his recent conversation with Ambassador Rees Ramos-Horta
stated that if it had been up to him, he would have made more
changes, but that Fretilin remains in control of cabinet
appointments. However, the fact the Ramos-Horta was able to
bring Guterres on board as Minister of Foreign Affairs
demonstrates that he can get his way on key issues as long as he
chooses his battles carefully. It is likely that he did not
push hard on the issue of the vacant vice minister positions in
favor of focusing on the foreign affairs portfolio. Another
interesting aspect of the new cabinet is the fact that all the
key Alkatiri allies have remained on board (e.g. Estanislau da
Silva and Anna Pessoa) despite statements in previous

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conversations that they would resign from their positions if
Alkatiri were pushed out. Whether this indicates the extent to
which Alkatiri is still wielding power through party mechanisms
or the extent to which Ramos-Horta has begun to co-opt them
remains to be seen. End comment.
DICKEY

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