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Viewing cable 06ASUNCION1130, PARAGUAY POLITICAL AND ECONOMIC UPDATE, NOVEMBER 4

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Reference ID Created Released Classification Origin
06ASUNCION1130 2006-11-09 20:58 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Asuncion
VZCZCXYZ0006
RR RUEHWEB

DE RUEHAC #1130/01 3132058
ZNR UUUUU ZZH
R 092058Z NOV 06
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC 5005
INFO RUCNMER/MERCOSUR COLLECTIVE
RUMIAAA/USCINCSO MIAMI FL//SCJ3/SCJ33/SCJ34/SOCSO LNO//
RHEHNSC/WHITE HOUSE NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
UNCLAS ASUNCION 001130 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE FOR WHA/BSC, INL/LP (JIM HIDES), AND EB/IFD/OIA 
STATE PASS TO USAID FOR LAC/AA 
STATE PASS TO USTR FOR LYANG 
NSC FOR SUE CRONIN 
TREASURY FOR OSIA MAUREEN WAFER 
TREASURY FOR OTA WARFIELD, VAN KOCH, MILLAR 
COMMERCE FOR ITA SARAH COOK 
SOUTHCOM FOR POLAD 
 
E.O. 12958: N/A 
TAGS: PHUM PREL PGOV PA VE UR AR BR BO JA SP
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, NOVEMBER 4 
- 9, 2006 
 
REF: ASUNCION 1089 
 
1. (U) SUMMARY: 
 
-- Journalists March for Enrique Galeano 
-- Paraguay Ranked 5th Worst in Latin America 
-- U.N. Tells Paraguay Ratify Arms Trafficking Protocol 
-- The Royals, Evo and Paraguay 
 
 
JOURNALISTS MARCH FOR ENRIQUE GALEANO 
 
2. (U) The Paraguayan Journalist Union (SPP) organized a 
"March for Life" November 3 to call attention to the 
disappearance of journalist Enrique Galeano.  More than 100 
people attended the protest in the Plaza of the Disappeared, 
located adjacent to the Government Palace in Asuncion.  Nine 
months ago, Galeano was declared missing after he did not 
return home from work.  Galeano had issued numerous critical 
statements about individuals, including local Congressman 
Magdaleno Silva of the Colorado Party, on his radio station 
tying them to drug trafficking and corruption.  The SPP has 
remained very outspoken in its quest to have the government 
continue its search for Galeano and hold those responsible 
for his disappearance accountable.  The case is still under 
investigation by the Attorney General's Office.  (NOTE: The 
SPP has sought the assistance of the InterAmerican Court on 
Human Rights (IACHR) at the OAS to push the GOP to continue 
in searching for Galeano and those responsible for his 
disappearance.  In October, the IACHR sent a letter to the 
GOP requesting information about the case.  The GOP is in the 
process of responding. END NOTE). 
 
PARAGUAY RANKED 5TH WORST IN LATIN AMERICA 
 
3. (U) Paraguay ranked 116 of 163 countries and remains one 
of the most corrupt countries in the world, according to 
Transparency International's Perceptions Index released 
November 6.  Paraguay's score ranked it as the 5th-most 
corrupt country in Latin America, an improvement over the 
previous year when it ranked second only to Haiti. 
Paraguay's score of 2.6 represented a 0.5 point improvement 
over last year's score on a 10-point scale and marked the 
third straight year Paraguay has improved its score.  But it 
still falls comfortably into the "rampant corruption" 
category. 
 
U.N. TELLS PARAGUAY RATIFY ARMS TRAFFICKING PROTOCOL 
 
4. (U) The U.N. held a conference in June to review progress 
made on its program to address the illicit trade in small 
arms and light weapons.  As a result, the U.N. called on 
Paraguay to ratify the "Protocol Against the Illicit 
Manufacturing of and Trafficking in Firearms, their Parts and 
Components and Ammunition," which came into force in July 
2005.  In 2001, U.N. Member States unanimously adopted the 
protocol, committing themselves to collecting and destroying 
illegal weapons, adopting and/or improving national 
legislation to help criminalize the illicit trade of weapons, 
regulating the activities of brokers, setting strict import 
and export controls, taking action against violators of such 
laws, and better coordinating international efforts to that 
end. (NOTE: Paraguay's War Materials Directorate (DIMABEL) is 
responsible for controlling and registering weapons. 
However, DIMABEL does not have an operational unit capable of 
investigating illegal arms transactions and thus has not been 
active in making seizures.  On a positive note, Paraguay's 
Anti-Drug Secretariat (SENAD) is allowed to make weapons 
seizures when it can tie weapons to information acquired from 
drug traffickers.  On that basis, SENAD has seized over 1,200 
weapons in three major raids over the last three months. END 
NOTE). 
 
5. (SBU) In its June 2006 report the U.N. Review Conference 
on Small Arms identified Paraguay as 1 of 60 countries that 
has collected and destroyed large amounts of illegal small 
 
arms.  However, it also noted that Paraguay, along with 
Uruguay, had not ratified the Protocol.  Other Mercosur 
countries, Brazil and Argentina, have already adopted the 
Protocol and strengthened their national legislation to 
control the illegal trade in small arms.  SENAD Minister Hugo 
Ibarra told POLOFF October 25 that the weapons are legally 
purchased by distributors and gun dealerships.  However, 
these companies, which do not do background checks on 
purchasers, resell legal and illegal weapons to criminal 
organizations, which then traffic them across Paraguay's 
porous borders with impunity. Ibarra acknowledged Paraguay's 
control over the importation and sale of weapons is extremely 
limited (reftel).  The UN just hosted a two-day conference 
here, with MFA support, to encourage Mercosur states to pull 
up their socks and clamp down on gun-running. 
 
THE ROYALS, EVO AND PARAGUAY 
 
6. (U) In recent weeks, the King and Queen of Spain, Juan 
Carlos Borbon and Sofia Frederika; Japanese Prince Akishino 
Fumihito; and Bolivian President Evo Morales have all made 
state visits with President Nicanor Duarte.  The Royals met 
with Duarte to discuss migration issues as well as economic 
development and debt suspension.  King Juan Carlos offered a 
loan of USD 10 million for small businesses and offered to 
exchange USD 11 million of the Paraguayan debt of USD 37 
million for education projects.  Prince Akishino expressed 
his father's hope for further development in relations and 
commemorated the 70th anniversary of Japanese immigration to 
Paraguay.  While Evo Morales met with Duarte to continue 
dialogue to quash the concerns over the Bolivian/Venezuelan 
military agreement.  The two presidents are scheduled to meet 
again December 8 in Cochabamba during the Summit of South 
American Presidents. 
CASON