PARAGUAY CONTINUES TO WAFFLE ON WAY AHEAD ON

C O N F I D E N T I A L ASUNCION 001195 SIPDIS SIPDIS NSC FOR SUE CRONIN E.O. 12958: DECL: 10/03/2026 TAGS: PREL MASS PTER PA SUBJECT: PARAGUAY CONTINUES TO WAFFLE ON WAY AHEAD ON MILITARY COOPERATION REF: A. ASUNCION 1158 ¶B. ASUNCION 1023 ¶C. ASUNCION 1020 Classified By: PolCouns James P. Merz; Reasons 1.4(b),(d) ¶1. Action Request. See paras. 5. ¶2. (C) The Ambassador impressed upon Vice President Castiglioni November 27 the need for a GOP decision on the way ahead on military cooperation as regards immunities for U.S. participants. The U.S. had approved $1.1 million in GPOI funds and another $3.5 in 1208 funds to support the military's counter terror unit. Separately, President Bush had lifted ASPA restrictions on Paraguay receiving FY 06 IMET funds and, we expected the same, in short order, on ESF. (NOTE: The decision was subsequently announced November 29. END NOTE.) However, U.S. cooperation on the ground will prove critical for the success of these programs. The Ambassador shared with the Vice-President the new draft SOFA text (already shared with his advisor Juan Facetti and with the MFA's Vice Minister Federico Gonzalez) and stressed the importance we attached to the GOP's reconsidering its decision on protections for U.S. military partners. ¶3. (C) Castiglioni expressed appreciation for forthcoming U.S. assistance, fully aware much of this support is coming in response to his own personal appeals. He assured the Ambassador that he personally supported the extension of protections to U.S. soldiers. The challenge lay in convincing President Duarte, who has misgivings about any agreement on this issue based on his apparent misimpression that Paraguay has historically extended the U.S. privileges in excess of what it extends to others. Castiglioni was having his advisor review the document with a view to ensuring no language would cross the President's redlines on the question of reciprocity. ¶4. (C) Separately, VP Castiglioni informed the Ambassador he is looking at being in Washington December 20 to sign an agreement with the IDB. He conveyed an interest in visiting Southcom in Miami and developing a program for meetings and perhaps a speech in Massachusetts, given the burgeoning relationship between Paraguay and the Massachusetts National Guard. His advisor Facetti tentatively agreed Castiglioni could consider visiting Miami at the front end of his visit -- perhaps December 18-19 -- and visiting Massachusetts at the tail end -- December 21. Post will keep Washington abreast as this trip firms up. ¶5. (C) Facetti informed us that he had just been appointed as a Latin American advisor to the IAEA. Paraguay's point person on nuclear issues, Facetti described a $3 million initiative to install a nuclear material detection device for containers in CDE. He advised IAEA is prepared to provide $600,000 but Paraguay will need the remaining $2.4 million to make this a reality. Given the permissive environment in CDE for illicit activity including the trafficking of a wide range of goods, Post believes this initiative is well advised and requests SouthCom and the interagency community consider ways we could support Paraguay's efforts in this area. CASON