Identifier
Created
Classification
Origin
05ASUNCION917
2005-07-18 20:48:00
CONFIDENTIAL
Embassy Asuncion
Cable title:  

AMBASSADOR DISCUSSES TERRORISM, MONEY LAUNDERING,

Tags:  PREL PGOV PTER SNAR KPAO SCUL KUNR PA UNSC UNESCO 
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C O N F I D E N T I A L SECTION 01 OF 02 ASUNCION 000917 

SIPDIS

E.O. 12958: DECL: 07/18/2015
TAGS: PREL PGOV PTER SNAR KPAO SCUL KUNR PA UNSC UNESCO
SUBJECT: AMBASSADOR DISCUSSES TERRORISM, MONEY LAUNDERING,
VENEZUELA, MILITARY COOPERATION, UNSC REFORM WITH FOREIGN
MINISTER


Classified By: Ambassador John F. Keane for reasons 1.4 (b) and (d)

C O N F I D E N T I A L SECTION 01 OF 02 ASUNCION 000917

SIPDIS

E.O. 12958: DECL: 07/18/2015
TAGS: PREL PGOV PTER SNAR KPAO SCUL KUNR PA UNSC UNESCO
SUBJECT: AMBASSADOR DISCUSSES TERRORISM, MONEY LAUNDERING,
VENEZUELA, MILITARY COOPERATION, UNSC REFORM WITH FOREIGN
MINISTER


Classified By: Ambassador John F. Keane for reasons 1.4 (b) and (d)


1. (C) Summary: On July 15, I breakfasted with Foreign
Minister Leila Rachid and we discussed ominous trends in
Venezuela, de-legitimizing terrorism, anti-money laundering
legislation, U.S. candidacy for the World Heritage Committee
of UNESCO, an FBI officer in Asuncion, prospects for
extradition from Brazil of Patria Libre Party leaders to face
kidnapping charges, and U.S. military exercises, which
continue to draw suspicion and critical comment among some in
the media, while others are supportive. End Summary.

--------------
Venezuela's Democratic Decline
--------------


2. (C) I covered in depth the talking points on
U.S.-Venezuelan relations (State 127251). Rachid did not
disagree with the U.S. analysis of the gravity of Venezuelan
trends, noting that Paraguay is particularly concerned about
possible Venezuelan-inspired radicalism in neighboring
Bolivia. However, she noted that only Brazil is in a
position to influence events in Bolivia and urged the U.S.
and Brazil to coordinate. In her opinion, Bolivian mistrust
of Argentina spiked as a result of resentment over a
perception that Argentina will increase its supplies of
natural gas to Chile if Argentina's needs are met from other
sources, due to recent Southern Cone energy accords. Gas
sales to Chile are seen as a stab in the back by some
Bolivians, and it has undermined Argentine influence in La
Paz, according to Rachid. She had no suggestions about how
to address ominous trends in Venezuela.

--------------
De-legitimizing Terrorism
--------------


3. (U) I commented on the horrific London bombings, and the
death of two dozen Iraqui children two days earlier in a
suicide attack. I noted how it must be obvious to the world

the need for global intense effort to de-legitimize
terrorism, particularly against non-military targets and to
discourage suicide assaults. (State 121757). Rachid
concurred, noting that Paraguay had issued a communique
condemning the criminal terrorist attack which took the lives
of innocents, adding that there needs to be a global effort
to reach across cultural differences between the muslim world
and other regions, an effort Paraguay would support.
(Presumably she was referring to the recently launched effort
by Kofi Annan, "Alliance Among Civilizations.")

--------------
Anti-Money Laundering Legislation
--------------


4. (U) I noted that Presidential CD certification was
approaching and that GOP efforts to control money laundering
(M/L) is a significant component of the assessment.
Moreover, President Duarte had given a commitment to move
forward on M/L legislation as well as counter-terrorism
legislation consistent with its obligations under UN
resolutions. M/L legislation has languished in the
Paraguayan Congress longer than a year. I urged Rachid to
discuss with the President and others so that a M/L law could
be passed by at least one house of Congress and the CT bill
introduced to Congress within the next two months. The
Foreign Minister opined that it might be easier to secure
passage now that GOP allies have control of all the key
congressional committees as a result of the recent
re-alignment. She promised to explore what she could do.

-------------- --------------
USG Candidacy for Seat on World Heritage Committee
-------------- --------------


5. (U) I raised our candidacy (Asuncion 889 and State
122739) and she agreed to look into it.

--------------
FBI Office
--------------


6. (U) I explained that the FBI has decided to open a full
legal attache office in Asuncion, but timing remains to be
worked out. Meanwhile, the FBI has PCS respresentative at
Asuncion who reports through the Buenos Aires Legatt Office.

-------------- --------------
Extradition of Patria Libre Party leaders -- and
Suspect Kidnappers -- Arrom and Marti from Brazil
-------------- --------------


7. (SBU) She reported that she had slipped over to Brazil
for a day to press the GOB for an answer to Paraguay's
extradition request regarding these two individuals, charged
with involvement in a high-profile kidnapping in Paraguay.
She was not satisfied with the GOB answer -- that the
analysis and consideration of the case by Brazil's special
council, CONARE, takes time -- but she has not lost hope.
--------------
Military Exercises
--------------


8. (SBU) The Foreign Minister noted with annoyance that
malicious domestic and foreign media continued to
misrepresent the motivations of U.S.-Paraguayan military
cooperation, implying or directly alleging U.S. designs on
the region, either to seize natural resources or to intervene
in perceived troubled areas, such as Ciudad del Este or
Bolivia. She sent dipnotes to the foreign ministers of all
Paraguay's neighbors denying the basing of U.S. troops in
Paraguay and explaining the scope of the joint military
exercises. The communique issued by Paraguay, sent to her
Foreign Minister colleagues, contained the languate
"Paraguay, as a State Party to the International Criminal
Court, has not signed accords which imply any exception to
the jurisdiction established by the Rome Statute."


9. (C) These exercises, and the close military cooperation
between the U.S. and Paraguay, she went on, are useful on
several levels. Apart from its mutual operational readiness
value, Paraguay is able to show a bit of independence from
Brazil. Bilateral pressures by Brazil are incessant, she
complained, citing the latest whereby Brazil conditioned
provision to Paraguay of USD 48 million in donations as part
of a Mercosur "structural assymetries fund" on the GOP, inter
alia, co-sponsoring the G-4 resolution (Brazil, Germany,
India, Japan) on UNSC enlargement. The possibility of a
visit by Defense Secretary Rumsfeld, she said, was a very
welcome development. She noted that she has President
Duarte's agreement that, if the visit firms up, the GOP would
coordinate an announcement with the U.S. (N.B. She had to
leave for another appointment before we could discuss
implications for our Article 98 negotiations of the recent
controversy over our military exercises and immunities for
U.S. personnel. End N.B.)


KEANE