INITIAL REACTIONS TO NEWS OF SECRETARY RUMSFELD'S

C O N F I D E N T I A L ASUNCION 001026 SIPDIS STATE FOR WHA/BSC DOD FOR OSD PARAGUAY DESK OFFICER LTC DAN MCDONALD SOUTHCOM FOR POLAD DAN JOHNSON NSC FOR SUE CRONIN E.O. 12958: DECL: 08/13/2015 TAGS: PREL PGOV MARR MASS PA VE CU BR AR SUBJECT: INITIAL REACTIONS TO NEWS OF SECRETARY RUMSFELD'S VISIT TO PARAGUAY REF: A. ASUNCION 1015 ¶B. ASUNCION 1011 Classified By: PolOff Mark A. Stamilio, reason 1.5(b) and (d). ¶1. (C) Summary: In response to news of Secretary Rumsfeld's planned visit to Paraguay, local media reported heavily this week that the visit marks a further shift in policy for the Duarte Frutos administration, towards the U.S. and away from leftist governments in the region. Some sectors of the population would welcome such a shift, while others would be displeased. Reportedly, the Government of Brazil falls within the latter group. End Summary. ¶2. (SBU) Throughout the week, local daily "Ultima Hora" published articles and opinion pieces claiming that Secretary Rumsfeld's planned visit to Paraguay was further evidence of an "about face" in policy for the Duarte Frutos administration -- a shift in alignment towards the U.S., and away from the left-wing governments of Hugo Chavez and Fidel Castro and left-leaning MERCOSUR partners Brazil, Argentina and Uruguay. In further support of its claim, the paper pointed to Vice President Castiglioni's visit to Washington, the Senate's approval of multiple U.S.-Paraguayan military exercises over the course of the next 18 months, and the conclusion of an Open Skies agreement with the U.S. In juxtaposition, the paper noted that, earlier in his administration, Duarte Frutos had taken a more "rebellious" and "autonomous" stance vis a vis the U.S. by declining to send troops to Iraq, ratifying the Treaty of Rome, and supporting a "non-U.S." candidate for OAS Secretary General. The paper claims that the U.S. is asserting its influence over Paraguay in order to block consensus within MERCOSUR and create divisions within Latin America, to thereby advance our own interests in the region. ¶3. (C) The editors of all three major dailies raised the issue in conversations with the Ambassador at an Embassy function on August 11. Pointing to the number of U.S.-Paraguayan military exercises scheduled to take place during the next 18 months and FBI plans to open an office in Paraguay, the editors asserted that there appeared to be a growing "special relationship" between the U.S. and Paraguay and asked why the U.S. was "paying so much attention to Paraguay." (Note: The volume of U.S.-Paraguayan military exercises in Paraguay is relatively high for the region, but that has been true for years. It has increased this year but not significantly. Rather, for purposes of efficiency, and to ensure approval while Congressional leadership was in hands favorable to us, the Embassy this year submitted a consolidated request for immunities for all exercises that fall within the 18-month period, rather than submitting them piecemeal as in the past. Due to tendentious, heavy publicity given to Congressional approval of the immunities agreement by those opposed to it, there is a perception in Paraguay and neighboring countries that our military ties have qualitatively strengthened. End Note.) ¶4. (U) Other key figures, including FM Rachid and several pro-U.S. Senators such as Sen. Carlos Mateo of the Liberal Party and Sen. Alejandro Velazguez, Vice-President of the Senate, are delighted by the prospect of a closer relationship between the U.S. and Paraguay. In response to media suggestions that such a shift in the administration's policy marks a surrender of the country's autonomy, they counter that closer ties with the U.S. would better enable Paraguay to assert its independence from Brazil and Argentina, countries that dominate the MERCOSUR bloc. Many other members of Paraguayan society also would welcome greater distance between the GOP and the governments of Chavez, Castro and Kirchner. ¶5. (C) Uruguay's ambassador to Paraguay confided in the Ambassador this week that the local Brazilian Ambassador told him the GOB is displeased that Paraguay is securing closer military and security ties to the U.S. KEANE