PARAGUAY POLITICAL AND ECONOMIC UPDATE, NOV. 13 -

UNCLAS SECTION 01 OF 02 ASUNCION 001431

SIPDIS

STATE FOR 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 BARBARA MOORE
NAIROBI FOR MICHAEL FITZPATRICK

E.O. 12958: N/A
TAGS: PGOV PHUM PREL ECON PA VE
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, NOV. 13 -
19



1. (U) SUMMARY
-- Castiglioni Vows To Continue Anti-Crime Fight
-- Bishops Say Government Is Corrupt
-- Vote on Ambassador to Cuba Postponed, Again
-- Venezuelan Official Comes Unhinged

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Castiglioni Vows To Continue Anti-Crime Fight
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2. (U) Late last week, Vice President Luis Castiglioni, in
response to recent death threats, told the press he will
continue in the fight against organized crime. Castiglioni
added that if criminals believe that by making such threats,
they can stop the GOP plan to train its security forces to
fight international organized crime, they are wrong. He
further emphasized that the GOP will deepen its agreements,
not only with Colombia and the United States, but also with
other countries to help Paraguay recover its dignity as a
nation free of transnational and international criminals.
NOTE: This announcement by Castiglioni came during the
Colombian counter-drug delegation visit last week. A septel
will follow addressing the Colombian visit. End Note.

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Bishops Say Government Is Corrupt
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3. (U) At the closing of an Ecumenical Conference, on 11/11,
Paraguayan Bishops released a statement criticizing the
Administration for failure to address the concerns of hunger
and poverty in Paraguay and charged that corruption is
rampant in the public and private sectors. The bishops also
complained of a lack of transparency in government and
described the Judicial Branch and the Attorney General's
Office performances as inadequate. In response to these
charges by the Bishops, President Duarte, on 11/12 said the
Bishops lacked empirical evidence and some of their
conclusions were based on "misinformation." He also
indicated that his Administration has only been in office for
two years and changing conditions in Paraguay require more
time. But, on 11/13, Duarte lashed out at the Bishops saying
many of those taking a stance against his Administration now
were participants in the celebrations of previous leaders of
the country and suggested that they confess their failings
"without shame." On 11/18, VP Castiglioni met with Church
leaders to stem the rising controversy over critical remarks
in the press.
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Vote on Ambassador to Cuba Postponed, Again
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4. (U) For the second time in three weeks, Senate President
Carlos Filizzola (Country in Solidarity Party) joined
governing Colorado Party Senators and a dissident opposition
Liberal Party Senator Domingo Laino in walking out of the
Senate to deny a quorom for a vote on the nomination of as
Paraguay's Ambassador to Cuba. The Colorados had thought
they had the numbers this time to confirm Luis Domingo Laino
(Sen. Laino's son) until Colorado dissident Senator Julio
Osvaldo Dominguez (son of Osvaldo Dominguez Dibb who is
running against President Duarte for Colorado Party
President) declared he planned to vote against Laino. At
least one Liberal Party Senator from the opposition indicated
that the Liberals had planned to walk out to deny the
Colorados a quorom if they had determined Laino had the votes
to be confirmed. Laino's confirmation has become a lightning
rod for controversy as it is viewed as part of a deal the
Colorados forged this past June with PPS and several
dissident Liberal Senators.

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Antics of Venezuelan Official at WIPO Course
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5. (C) On 11/16, Astrid Weiler, Director of Intellectual
Property, discussed with EconCouns the behavior of the
Venezuelan delegate to the World Intellectual Property
Organization (WIPO)-sponsored, week-long IPR course that took
place the week of 11/6 in Paraguay. Weiler said the delegate
railed against the USG during her interventions, leading the
WIPO organizers to remind her on more than one occasion that
not only was the USG not represented to defend itself, but
that her behavior was inappropriate for the proceedings. At
one point, according to Weiler, she actually held up a sign
that said "NO TO FTAA."
JOHNSON