PARAGUAY DELIVERS ON U.S. REQUEST FOR TRADE DATA

UNCLAS ASUNCION 000349

SIPDIS

SIPDIS

FOR WHA/BSC
NAIROBI FOR MICHAEL FITZPATRICK
SOUTHCOM FOR POLAD BARBARA MORE
NSC FOR SUE CRONIN
TREASURY FOR A/S O'BRIEN
TREASURY FOR OTA WARFIELD, VAN KOCH, MILLAR

E.O. 12958: N/A
TAGS: PGOV KCRM KCMA KIPR PA
SUBJECT: PARAGUAY DELIVERS ON U.S. REQUEST FOR TRADE DATA
CRITICAL TO CREATION OF TTU

REF: ASUNCION 274


1. During his March 8 meeting with Vice-President
Castiglioni, Treasury A/S O'Brien requested the VP's
assistance in acquiring trade data from Customs. The U.S.
Department of Homeland Security's Immigration and Customs
Enforcement Agency (ICE) needs this data to facilitate
creation of its Trade and Transparency Unit (TTU) with
Paraguay. On March 10, the Ambassador met with Customs
Director Margarita Diaz de Vivar making the same request.


2. On March 16, Paraguay delivered container-level trade
data on contents and valuation extending from 2003 through
February 2006. We understand ICE plans to format this data
and, in turn, provide Paraguay with similarassociated U.S.
trade data. The important next step will be for Paraguay to
create the unit to analyze the datae. Paraguay's
cooperation in sharing this data and creating a TTU will
facilitate the joint investigation of criminal and/or
terrorist organizations misusing trade between our two
countries.


3. Next steps for the creation of the TTU include
identifying approximately seven persons to staff the unit,
identifying office space for the group, purchasing computers
on which will be loaded sophisticated data mining software,
and finally providing training for the unit. The first two
steps are the responsibility of the GOP. ICE will provide
post with a fund cite drawing on INL funds for the purchase
of the computers, and will eventually provide training as
well, using the same funds.


4. Once the TTU is established, there should be regular, two-
way exchanges of data to keep the database as current as
possible, although at best, the data will have about a two-
month lag from real time. In previous discussions with
Paraguayan Customs (in which Emboffs, Treasury OTA advisors
and ICE personnel have participated) the Director of Customs
has agreed to USG stipulations that the TTU should be
staffed only with personnel who have passed polygraph
examinations, and should be attached to the new Customs
Investigation and Intelligence Unit that was created in
October and staffed with OTA-trained and vetted personnel,
and which will receive assistance under the MCC Threshold
Program.


54. Post has suggested that the GOP staff the TTU in a task
force fashion, drawing on already vetted personnel from
other units such as the IPR-related UTE unit, the financial
intelligence unit, and the tax investigative unit. A task
force approach will mitigate likely problems finding enough
trustworthy and competent people from within Customs and
also increase the level of cooperation among the various
units, improving their collective effectiveness. Post has
already received specifications from ICE for the necessary
computer equipment and will be obtaining local quotes to
advance the procurement process. At the same time, post
will continue to push for the official creation of the unit
and the naming of personnel to staff it. The TTU could be
operational in as soon as two months if we do not encounter
excessive delays on the part of the GOP.


CASON