(C) PARAGUAY: FM PUBLICLY REJECTS NEGOTIATIONS

C O N F I D E N T I A L ASUNCION 000119 SIPDIS SIPDIS STATE FOR A/S RADEMAKER, A/S SHANNON, PM P MURRAY AND W BROOKS STATE ALSO FOR T 7208 HST FRANCIS BOLTON STATE PASS TO USAID LAC/AA NSC FOR SUE CRONIN SOUTHCOM FOR POLAD BARBARA MOORE NAIROBI FOR MICHAEL FITZPATRICK E.O. 12958: DECL: 01/31/2016 TAGS: PREL MARR KICC PINR PA SUBJECT: (C) PARAGUAY: FM PUBLICLY REJECTS NEGOTIATIONS OVER ARTICLE 98 REF: 05 ASUNCION 869 AND PRECEDING Classified By: PolOff Mark A. Stamilio, reasons 1.4(b) and (d). ¶1. (U) On January 31, local press reported that FM Rachid publicly reiterated the GOP's opposition to an Article 98 agreement. In the context of explaining the limited immunity granted to U.S. military personnel entering Paraguayan territory to participate in training and medical exercises, Rachid stated that: -- Paraguay has not signed an Article 98 agreement; -- The last time the U.S. formally requested ICC immunity for USG personnel was in 2002; -- The GOP never (sic) responded to the request; and -- In October 2003, two months after President Duarte took office, the GOP responded that it would not grant USG personnel permanent ICC immunity. ¶2. (C) MFA legal advisor Ernesto Velazquez told PolOff on January 31 that he still had not had an opportunity to discuss with Rachid the latest drafts of a proposed exchange of notes that would give us Article 98 protections but allow the GOP to say that it had not/not signed an Article 98 agreement (reftels). He therefore could not authoritatively speak to whether Rachid's latest remarks were intended to signal that the GOP did not wish to continue negotiations about the proposed exchange of notes. However, his "personal opinion" was that the negotiations had reached deadlock, and further discussion of the matter would not be fruitful. Recent press coverage in Paraguay and neighboring countries (criticizing military exercises in Paraguay, and accusing us of everything from planning to establish a permanent base here to scheming to steal fresh water from the Guarani Aquifer) and the general atmosphere within Mercosur had made it "impossible" to reach an agreement on Article 98, in his view. ¶3. (C) Comment: Paraguay has been hemming and hawing over its response to A/S Rademaker's letter for over four months. Claims that Rachid and her lawyer have not been able to find the time to discuss this ring hallow. The FM's public statement January 30 signals again that the GOP opposes an Article 98 agreement. The Ambassador presented his credentials to the President February 1 and will raise this issue in his next meeting with Rachid, urging her to find a solution. CASON