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Viewing cable 05ASUNCION711, PARAGUAY POLITICAL AND ECONOMIC UPDATE, MAY 21-27

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Reference ID Created Released Classification Origin
05ASUNCION711 2005-05-27 16:32 2011-05-31 00:00 CONFIDENTIAL Embassy Asuncion
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 ASUNCION 000711 
 
SIPDIS 
 
STATE FOR WHA/BSC AND EB/IFD/OIA 
STATE PASS TO USAID FOR LAC/AA 
STATE PASS TO USTR FOR SCRONIN AND LYANG 
NSC FOR KIM BREIER 
TREASURY FOR OSIA MAUREEN WAFER 
TREASURY FOR OTA WARFIELD, VAN KOCH, MILLAR 
COMMERCE FOR ITA SARAH COOK 
SOUTHCOM FOR POLAD DAN JOHNSON 
 
E.O. 12958: DECL: 05/27/2015 
TAGS: PGOV PREL PINR KCRM MOPS VE CU PM PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, MAY 21-27 
 
REF: A. ASUNCION 675 
 
     B. ASUNCION 627 
     C. ASUNCION 594 
 
Classified By: PolCouns James P. Merz, reason 1.4 (b) and (d) 
 
 1. (U) Summary: 
----------------- 

-- Congress approves military exercises with the US 
-- Paraguay to sign Open Skies with Panama 
-- Bangladeshi nationals arrested 
-- Presidential cabinet shuffle 
-- Brazilian troops control border with Paraguay 
-- Venezuela and Cuba seek deeper ties 
 
 
Congress approves military exercises with the US 
--------------------------------------------- 

1.  (U) On May 20, the Chamber of Deputies approved a bill to 
extend diplomatic privileges and immunities to U.S. 
participants in more than twenty joint combined exercises, 
medical training exercises, and exchanges from July 2005 
through December 2006.   Although unable to thwart approval 
of the bill, the Deputies belonging to the Beloved Fatherland 
(PQ) and the Country in Solidarity Party (PPS) opposed the 
bill. Authorization for U.S. forces to enter Paraguay is 
still making its way from the Defense Ministry to the Senate, 
but adoption in June is expected. 
 
Paraguay to sign Open Skies with Panama 
--------------------------------------- 

2.  (C) On the heels of Open Skies agreements signed in early 
May with Chile and the U.S. (ref B and C), a highly placed 
source within the GOP indicated that Paraguay will sign its 
next Open Skies agreement with Panama on June 2. 
Additionally, media reports indicate that Brazilian budget 
airline Gol Linhas Aereas Inteligentes SA (GOL) has already 
received authorization for direct flights to Asuncion, which 
should begin in the second half of 2005. 
 
Bangladeshi nationals arrested 
----------------------------- 

3.  (C) The Police Special Operations Force (FOPE) and the 
Secretariat for the Prevention and Investigation of Terrorism 
(SEPRINTE) agents arrested 14 Bangladeshi nationals in Ciudad 
del Este on May 19. Comment: Sensitive reporting indicates 
that the Bangladeshi nationals are part of a larger document 
smuggling ring and possibly part of an alien smuggling 
circle.  Although several of those arrested carried 
legitimate documentation, they were falsely obtained. A 
police station in the outskirts of Ciudad del Este, whose 
chief is Alfredo Mino, was responsible for authorizing the 
issuance of several of these documents. 
 
Presidential cabinet shuffle 
---------------------------- 

4.  (U) As reported per reftel A, President Duarte appointed 
former Industry and Commerce Minister, Ernst Bergen, as the 
new Finance Minister on May 19 after previous Finance 
Minister Dionisio Borda resigned. Separately, the President 
appointed Ruben Candia Amarilla as the new Justice and Labor 
Minister on May 19, Jorge Von Horoch as the new Deputy 
Finance Minister on May 22, and Raul Vera Bogado as the new 
Industry and Commerce Minister on May 23. Biographical 
information on the new ministers will follow septel. 
 
Brazilian troops deployed to control border with Paraguay 
--------------------------------------------- ------------ 

5.  (U) On May 22, local press reported that Brazil deployed 
Army, Air Force, and Navy units to its border with Paraguay 
to control strategic points through which contraband, arms, 
and drugs could enter. The military operation named "Jaura 
II" covers the Brazilian states of Mato Grosso, Mato Grosso 
do Sul, and the northeastern region of Parana. To date, there 
has been little public Paraguayan reaction to the Brazilian 
military's exercise. 
 
Venezuela and Cuba seek deeper ties 
----------------------------------- 

6.  (U) On May 24, local press announced that Venezuela's 
government proposes a plan to provide free medical treatment 
to Paraguayan citizens who must undergo eye surgery.  The 
patients would be sent to Cuba via Venezuela. The GOV would 
pay for the airfare between Paraguay and Venezuela; the Cuban 
government would cover the airfare between Venezuela and Cuba 
as well as the medical treatment. Separately, media reports 
that Venezuela,s President Chavez seeks Paraguayan support 
for its plan to create a Latin American television network, 
"Televisora del Sur".  The new system would compete with the 
US network CNN en Espaol. Paraguay is reportedly studying 
both proposals. 
KEANE