PARAGUAY CONDUCTS FIRST INTERNAL PARTY ELECTION

C O N F I D E N T I A L SECTION 01 OF 02 ASUNCION 001037

SIPDIS

STATE FOR WHA/BSC 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 DAN JOHNSON

E.O. 12958: DECL: 08/11/2007
TAGS: PGOV PREL KDEM PA
SUBJECT: PARAGUAY CONDUCTS FIRST INTERNAL PARTY ELECTION
WITH ELECTRONIC BALLOTS


Classified By: Ambassador John F. Keane, For reasons 1.5 (b) and (d).


1. (U) SUMMARY : On July 17, Deputy Blas Antonio Llano won
the internal elections of the Authentic Radical Liberal Party
(PLRA),defeating Efrain Alegre by less than 12,000 votes.
According to a Superior Elections Tribunal (TSJE) official,
the election was a success and approximately 30 percent of
the registered members voted in that election. The President
of the House of Deputies, in a conversation with the
Ambassador, stated that he did not believe Llano's election
would produce a significant impact on proceedings in
Congress. The TSJE official stated there are plans to use
the electronic ballot machines in the future but that recent
party grumbling and calls to reduce spending will pose
challenges to TSJE's overall work. The successful first use
of electronic balloting for internal elections will make it
difficult for the Colorado Party to resist this measure. End
Summary.

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The PLRA Election
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2. (SBU) On August 11, PolOff discussed this election and
its implications with TSJE Director of Public Relations,
Liliana Benitez. Ms. Benitez indicated the election was an
organizational success and a foregone conclusion. It was
known from the very beginning that Llano would win the
election. This election was the first time the TSJE used
electronic balloting machines and, of the more than 3,000
they borrowed from Brazil, only a few malfunctioned and
delayed the voting process in four (4) locations. She stated
that the borrowed machines were old but were in relatively
good working order. Once they obtained new batteries for the
machines, voting continued. Benitez also indicated there was
no tampering with the machines. (NOTE: AMEmbassy Asuncion was
asked to participate as observers in the PLRA primary
elections but the offer was declined to avert any possible
claims of interference by the USG. End Note.).

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Chamber President Plays Down Party Leadership Change
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3. (SBU) In a meeting shortly after the July election with
the new President of the Chamber of Deputies, Victor Bogado,
Colorado Party (ANR),and Second Vice President Lino Aguero,
Country in Solidarity Party (PPS),the Ambassador asked
Bogado what impact the PLRA internal elections might have on
the Chamber of Deputies. Bogado did not think there would be
any significant impact since the same three factions within
the Liberal Party continue to jockey for power and influence.
He further noted, however, that the other two factions often
align to defeat Llano's group.

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Is There a Future for Electronic Balloting
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4. (SBU) PolOff expressed the U.S. interest in free and fair
elections, and, in this regard, queried Ms. Benitez about the
future use of electronic balloting. Benitez stressed that
the TSJE intends to use the electronic balloting machines in
all future elections because they reduce fraud but the
Colorado Party, of which she is a member, has signaled some
resistance. She said that a political party has the option
to decide whether or not to use the electronic machines for
its internal elections. Benitez also stated that the TSJE
will request that Brazil provide newer machines in the
future. (NOTE: The TSJE only paid for the insurance on the
machines, which was $12,000 USD. End Note.)

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The President Freezes TJSE Budget
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5. (SBU) On July 19, President Nicanor Duarte Frutos urged
the TSJE "to reduce spending and not to request a budget
extension because there are other priorities and political
parties can wait." Benitez indicated that this budget
squeeze will not affect the day-to-day operations nor will it
interfere in their plans to continue using electronic
balloting machines in the upcoming primaries. She said,
however, that it will force the office to cut their
independent contractor staff which includes about 1,500
people. The TSJE originally requested the extension of 82
billion guaranis (approximately $13.7 million USD) to pay the
political parties and extend the contracts of the
contractors, whose contracts were set to expire on July 31.
According to Benitez, both Chambers of Congress not only need
to approve the budget but also seek to impose conditions on
the spending of that budget. Usually this means, she
continued, the hiring of people they know for poll watching
and other campaign related tasks. Currently, the TSJE owes
60 billion guaranis (approximately $10 million USD)to the
various political parties.

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COMMENT
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6. (C) Previously the internal Colorado party elections have
been notorious for voter fraud. It is conceivable some
Colorado leaders fear the cleansing effect of electronic
balloting and the attendant damage it poses to their ability
to manipulate results. TSJE enjoys a reputation as a
credible, independent institution overseeing the conduct of
elections. Successful employment of electronic balloting
represents an important advance in the conduct of free and
fair elections. The fact that the leading opposition party
agreed to its use may make it difficult for the Colorado
Party to refuse. End Comment.
KEANE