PARAGUAY POLITICAL AND ECONOMIC UPDATE, APRIL 30-

UNCLAS ASUNCION 000479

SIPDIS

SIPDIS

STATE FOR WHA/BSC, INL, 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
NAIROBI FOR MICHAEL FITZPATRICK

E.O. 12958: N/A
TAGS: PGOV PREL PINR PHUM KCRM KWMN SMIG TW PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, APRIL 30-
MAY 6, 2006

REF: ASUNCION 0348



1. (U) SUMMARY:

--Demonstration on May Day
--Patria Libre Members Captured
--19 Rescued from Brothel in Spain
--Exploiting Children
--Taiwanese President Visits Paraguay

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Demonstration on May Day
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2. (U) On 5/1, approximately 5,000 members of labor unions, opposition
parties, students and other organizations participated in an annual
labor-day demonstration. This year, however, Monsignor Fernando Lugo
and his Resistencia Cuidadana organization helped organize the event.
Many of the speakers focused their comments on the economy, unemploymen
and critiques of President DuarteQs inability to solve the country's
problems. (reftel) COMMENT: Although the 5/1 demonstration did not
draw nearly as many participants as the 3/29 demonstration, it offered
another opportunity to capture the limelight, fueling continued
consideration of Lugo's possible presidential candidacy for 2008
elections. End Comment)

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Patria Libre Members Captured in Argentina
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3. (U) On 5/2, five members of the Patria Libre (Free Fatherland) Party
(PPL),Simeon Bordon Salinas, Agustin Acosta Gonzalez, Roque Rodriguez
Torales, Basiliano Cardozo Gimenez and Aristides Vera were arrested,
after attempting to obtain refugee status from the government of
Argentina. On 5/4, the Paraguayan Attorney General's Office told PolOff
that the accused remain in custody and are expected to be expelled from
Argentina and turned over to the Paraguayan authorities at the border,
avoiding the hassle of extradition. Paraguayan authorities are still
looking to apprehend three other individuals who have absconded upon
release by GOP authorities. (NOTE: Prior to the arrest of the five in
Argentina, the individuals had been under investigation in connection t
the Cecilia Cubas kidnapping and murder but had been released from
custody in Paraguay for lack of sufficient evidence. End Note)

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19 Rescued from Brothel in Spain
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4. (U) On 5/4, local press reported that 19 Paraguayan women were
detained in Albacete, Spain during a police operation to close down
local sex clubs on April 11. During the investigation, Spanish
authorities learned that the Paraguayan women were victims of forced
prostitution. Four other persons were detained in connection to the
illegal immigration of some 800 women, the majority of whom were
Paraguayan. Spanish authorities learned of the women's plight after 2
Paraguayan women escaped their captors and entered a police station in
the City of Real, Spain. Teresa Martinez told PolOff that information
from Interpol regarding the victims and the traffickers is forthcoming.
It is not known at this point if the victims will be repatriated. Pos
will continue to monitor the developments in this case. (NOTE: In the
past, when victims of trafficking, especially those in Spain, are not
repatriated to Paraguay, the GOP does not list them in their total
number of victims. End Note.)

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Exploiting Children
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5. (U) On 4/28, PolOff met with Bernardo Puente, Representative of the
International Labor Organization (ILO) in Paraguay, regarding the state
of child labor and sexual exploitation of children. Puente indicated
that child labor is an established part of the economy of Paraguay and
more than 322,000 children participate in various economic activities
and an additional 687,000 do domestic work, mostly in rural areas. In

reference to sexual exploitation of children, Puente highlighted that
there are more than 250 young girls working as prostitutes in Ciudad de
Este and more than 3,500 that have been sexually exploited in some way.
He said the children range in age of 5 to 17 and that pedophiles prey
on children with virtual impunity, often only having to pay a fine for
their freedom. (NOTE: United Nations reports indicate that 2 out of 3
sexual workers in Paraguay are minors and most of them begin between 12
and 13 years old. Prostitution is legal in Paraguay for those 18 years
and older. End
Note.)

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Taiwanese President Visits Paraguay
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6. (U) On 5/4, Chen Shui-bian, President of Taiwan, arrived in Paraguay
ahead of his official 3-day state visit. Chen's visit to Paraguay is
his second since May 2001 and is set to strengthen bilateral ties and
promote global peace and prosperity. The Government of Taiwan has
provided hundreds of millions of dollars in assistance to Paraguay in
recent years. However, the opposition parties stated prior to Chen's
visit that they will not participate in the Congressional session in
protest against the GOP but not/not related to Taiwan.


CASON