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