PARAGUAY POLITICAL AND ECONOMIC UPDATE, OCTOBER 21

UNCLAS ASUNCION 001085

SIPDIS

SIPDIS

STATE FOR WHA/BSC, INL/LP (JIM HIDES),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

E.O. 12958: N/A
TAGS: PHUM PGOV PREL ECON AID PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, OCTOBER 21
- 27, 2006



1. SUMMARY:

-- UN Debate on Development and Human Rights
-- Global Infancia Holds Forum on Child Pornography
-- Vote Count: A Long Night Ahead
-- Export Potential
-- Safety Awareness
-- Cutting-Edge Code of Ethics

UN DEBATE ON HUMAN RIGHTS


2. (U) The United Nations Office in Paraguay held a debate
October 24 at the National University in Asuncion (UNA). The
panel-debate entitled, "Development, Security and Human
Rights for Everyone," garnered more than 200 students,
faculty and NGO representatives. Much of the lively
discussion centered around how to speed up development,
increase job creation and protect basic human rights. The
leading panelists included Henry Jackelen, Resident
Coordinator of the UN; Dr. Rodolfo Matarrollo, Deputy
Secretary of Promotion and Protection of Human Rights in the

SIPDIS
Argentine Secretariat of Human Rights, and two Paraguayan
activists/professors.

GLOBAL INFANCIA FORUM ON CHILD PORNOGRAPHY


3. (U) Global Infancia, an international NGO, held a forum
discussion entitled "The Prevention and Erradication of Child
Pornography" October 25 at the Catholic University of
Asuncion. Lourdes Barboza, former Secretariat of Children
and Adolescents Minister, and Dr. Teresa Martinez, Director
of the Trafficking in Persons, and Women and Children's
Issues Office in the Attorney General's Office, led the
discussion and answered questions regarding the Child
Pornography law, which took effect in January 2006. PolOff
queried the panelists about statistics on victims of child
pornography but none are available. Martinez indicated,
however, that there are currently 5 child pornography cases
in judicial preceedings (NOTE: Each case involves between 10
and 30 children. END NOTE). Post will monitor the progress
of those cases.

VOTE COUNT: A LONG NIGHT AHEAD


4. (U) Paraguay's Elections Tribunal (TSJE) announced October
18 their methods for registering and tallying votes for
November's municipal elections, (which are widely seen as a
mid-term plebisite on the Durate administration). The TSJE
Public Affairs Director, Liliana Benitez, told PolOff October
17 that the TSJE would be using both paper ballots and
electronic ballots. Some Departments will be split 50
percent to 50 percent using both methods, while some
jurisdictions will either rely 100 percent on electronic
balloting or 100 percent on paper ballots. PolOff acquired a
document October 20 outlining the distribution: 14 of
Paraguay's 17 Departments will use both 50-50, while only 3
(the least populated) will be 100 percent electronic
balloting. (COMMENT: November 19 is shaping up to be a long
night of vote counting. In the two most recent (all
electronic) internal party elections in 2006 the votes were
counted and authenticated on election day. Benitez was
pessimistic about the TSJE being able to rapidly count and
authenticate this election, however, with work likely
continuing into the early hours of the next day. END COMMENT).

EXPORT POTENTIAL


5. (U) The Ambassador and the USAID Director visited October
24-25 several USAID-assisted businesses in the Departments of
Caaguazu and Guaira, including firms that produce sesame,
ethanol, and high-quality hand-crafted clothing and linens
(A'o poi). Paraguay's exports of sesame now represent 44
percent of Japan's market, with good potential to expand
exports to other countries with demand, including the U.S. A
clean fuel ethanol company has increased sales by more than
20 percent thanks to USAID assistance creating more jobs and
increasing income for sugar cane workers who supply the

company. USAID has also assisted the A'o poi industry,
perhaps best known for shirts that breathe (and some might
say look) better than the famous Guayaberas. A'o poi
benefits thousands of people, including many women who are
skilled in its unique art of embroidery.

SAFETY AWARENESS


6. (U) This week USAID and the Office of Foreign Disaster
Assistance (OFDA) signed an agreement with the Paraguayan
Ministries of Education, and National Emergencies to provide
increased safety awareness at schools throughout the country.
Under the agreement USAID/OFDA will provide technical
assistance, training, and some logistical support for the
training of 2000 school teachers nationwide. Paraguay's
interest in building safety and emergency responsiveness
peaked in 2004 when a tragic fire at an Asuncion resulted in
the death of more than 400 who were senselessly trapped
inside the complex. The criminal trial of the owners of the
supermarket is ongoing. Widespread coverage was given this
week to the U.S. ATF's forensic determination that many fire
exit doors had been padlocked shut.

CUTTING-EDGE CODE OF ETHICS


7. (U) Argentine Justice Rodolfo Vigo, the General Secretary
of the Ibero-American Commission for Ethics in Justice,
recently hailed the Paraguayan Judicial Code of Ethics as the
most advanced in Ibero-America. Justice Vigo supported his
statement by mentioning that the Paraguayan Judicial Code of
Ethics is unique because of its implementation mechanism (a
fully staffed and trained Ethics Office) and sanctioning
bodies (Tribunal and Council) independent from the Supreme
Court justices. The Paraguayan Code is now being used as a
model around the region, with both Justice Vigo and the
Director of the Code of Ethics in Paraguay crediting USAID
support for this achievement.
CASON