PARAGUAY POLITICAL AND ECONOMIC UPDATE, JULY 11 - 15

UNCLAS SECTION 01 OF 02 ASUNCION 000913

SIPDIS

STATE FOR WHA/BSC AND EB/IFD/OIA
STATE PASS TO USAID FOR LAC/AA
STATE PASS TO USTR FOR SCRONIN AND LYANG
NSC FOR KIM BREIER
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: N/A
TAGS: ETRD, PGOV, PHUM, PREL, SNAR, KCRM, PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, JULY 11 -
15

REF: ASUNCION 813

1. SUMMARY
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-- TIPS: Two Minors to be Repatriated from Argentina
-- Business Ethics Pact Signed
-- SENAD Agents Capture Narco-Trafficker Wanted in Brazil
-- Anti-Narcotics Agents Seize Plane, Drugs and 4 Suspects
-- Wanted Posters Target Traffickers

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TIP: Two Minors to be Repatriated from Argentina
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2. (U) On July 11, the Paraguayan Ambassador to Argentina,
Orlando Fiorotto, announced that two minors exploited in the
sex trade would be returning to Paraguay soon. These young
girls were among 33 women and children rescued in the suburbs
of Buenos Aires. Two other minors were repatriated last
week, one of whom was pregnant. According to Eugenio Ambrosi
of the International Organization of Migration (IOM),
trafficking of children and women increased by 27 percent in
the last five years in Paraguay.

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Business Ethics Pact Signed
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3. (U) On July 13, approximately 110 local businesses became
initial signers of the New Business Ethics Pact (Pacto Etico
Comercial),a U.S. Department of Commerce-sponsored code of
conduct designed to encourage ethical business practices.
The Ambassador addressed the group and Paraguayan Ambassador
to the U.S. James Spalding was present. A council of
business leaders from a variety of industries specifically
selected the invited businesses. The signing will be
followed in August by a more public ceremony to raise
awareness about business ethics.

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SENAD Agents Capture Narco-Trafficker Wanted in Brazil
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4. (U) On July 12, during a raid one block from the DCMs
residence, the National Anti-Drug Secretariat (SENAD)
captured Brazilian national Luis Alberto Da Cunha, alias
Barba, who was on their Top Ten Most Wanted List. In
cooperation with the Brazilian National Police, SENAD seized
weapons, cars, cellular telephones and false documents. Da
Cunha was one of the largest drug traffickers in the country
and is connected to Ivan Mesquita, who was extradited to the
United States (see ref). Brazil is seeking extradition of Da
Cunha.

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Anti-Narcotics Agents Seize Plane, Drugs and 4 Suspects
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5. (U) On July 13, during an early morning operation in San
Ignacio, the agents from the Anti-Narcotics Operations
Directorate (DOA),seized an airplane containing 682 Kilos of
pressed marijuana bound for Argentina and detained 4 men.
Authorities arrested the pilot, Pedro Benito Porres, of
Argentina; Ruben Vittar, a mechanic; Geronimo Antonio
Martinez Castillo and Ruben Mario Pino Munoz, all citizens of
Paraguay.

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Wanted Posters Target Drug Traffickers
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6. (U) With assistance from the Drug Enforcement Agency (DEA)
and a visiting DOD Civil Affairs MIST team, the National
Anti-Drug Secretariat (SENAD) has been using Wanted Posters
and advertisements in the newspapers to get leads on their
Most Wanted Persons. The advertisements have produced many
calls and positive leads. SENAD Chief Ibarra told DCM the
campaign has narcos hunkering down, possibly making them
easier to capture.
KEANE