PARAGUAY: FM ON OAS, ARTICLE 98, BRAZIL, ECUADOR,

C O N F I D E N T I A L SECTION 01 OF 02 ASUNCION 000669

SIPDIS

STATE FOR WHA/BSC
STATE ALSO FOR L/LEI
NSC FOR KIM BREIER
SOUTHCOM FOR POLAD DAN JOHNSON

E.O. 12958: DECL: 05/16/2015
TAGS: PGOV PREL KCRM KJUS BR PA OAS
SUBJECT: PARAGUAY: FM ON OAS, ARTICLE 98, BRAZIL, ECUADOR,
PENDING RESIGNATION


Classified By: Polcouns James P. Merz for reasons 1.4 (b) and (d).


1. (C) Summary. On 5/13, the Ambassador and FM Rachid
discussed machinations over OAS appointments -- past and
future, holding Article 98 negotiations on the margins of the
upcoming OAS Ministerial, the GOP's support for the U.S.
position on the OAS Social Charter, concerns about Brazil's
trade and foreign policy, the GOP's views on Ecuador, and the
FM's impending resignation. End Summary.


OAS SYG and DSYG Elections
--------------


2. (U) FM Rachid expressed her satisfaction with the
election of Chilean FM Insulza as the next OAS SYG. She was
particularly impressed with the Secretary's engagement on and
management of the process leading up to this decision by
consensus. Rachid conveyed her interest in meeting with the
Secretary on the margins of the June OAS General Assembly in

SIPDIS
Ft. Lauderdale.


3. (C) Rachid conveyed Paraguay's support for Ernesto Leal
of Nicaragua to be the next Assistant SYG. She remarked that
Surinam was actively lobbying in support of its candidate.
Noting she had not yet received a phone call from the
Nicaraguan FM on behalf of Leal, she recommended Nicaragua
undertake a more active campaign if it hoped to gain support
for its candidate.


4. (C) Ambassador called attention to the importance of
Insulza's pledge to monitor human rights situations including
Cuba, and to hold countries to a democratic governance
yardstick, with Venezuela in mind.

Article 98 Negotiations
--------------


5. (U) Rachid said that she was free to meet with A/S
Rademaker to discuss Article 98 on 6/6 while in Ft.
Lauderdale for the OAS General Assembly. She planned to
bring along MFA lawyer Ernesto Velasquez to participate in
negotiations.

GOP Shares Views on OAS Social Charter
--------------


6. (C) Rachid shared our view that it would be
inappropriate for Venezuela to chair the Charter Working
Group. She agreed this exercise should be realistic and
pragmatic. She welcomed news the Central American states may
introduce an alternative to Venezuela's draft text.

Concerns about Brazilian Policies
--------------


7. (C) Rachid conveyed her desire to talk to the Secretary
about concerns she has about Brazil's approach on trade and
foreign policy. She complained that Brazil had cut quotas on
Paraguayan exports. She was also worried about Brazil's
ambition to become the leading political voice in the region
and urged the U.S. to assert itself to counter Brazil.


8. (C) Ambassador conveyed concern about the recent
Arab/Latin American Summit. Among other issues, he noted
that it may gratuitously have sown tension between the Jewish
and Arab communities in Brazil. Among other issues, he noted
that it. I added that it was inappopriate and needless for
the Summit Declaration to laud Sudan's cooperation with
humanitarian assistance in Darfur when everyone knows the
opposite is true. Rachid maintained that Brazil had had a
"big fight" with a number of foreign ministers, including
most prominently Colombian FM Barco and Chilean FM Walker,
when Brazilian FM Amorim asked them to lower their rhetoric
over objections they had to language pertaining to Sudan and
the Middle East peace process.

No Decision on Ecuador
--------------


9. (C) Rachid was familiar with the OAS report on Ecuador
but was still waiting on a recommendation from her Mission in
Washington on next steps. She noted that Paraguay had not
yet formally established relations with the new Ecuadorian
government as it sought to base its decision on an OAS
recommendation.

FM on the Way Out?
--------------

10. (C) Rachid confided to the Ambassador, and then
subsequently revealed publicly, that she has put her job at
the disposition of President Duarte. On May 17, the Foreign
Ministry announced that Rachid will step down in September
2005 and join her husband in the U.S. She said that she
believes Duarte has not decided on a successor but thinks he
may be leaning slightly towards his Private Secretary Jose
Maria Ibanez. Rachid has recommended Duarte not select one
of the MFA's older veterans such as Paraguay's Ambassador to
Brazil, Luis Gonzales Arias, among others, because they were
already senior officials during the Stroessner era and have
"human rights" baggage.
KEANE