PARAGUAY POLITICAL AND ECONOMIC UPDATE, JUNE 10 -

UNCLAS ASUNCION 000624

SIPDIS

SIPDIS

STATE FOR WHA/BSC 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

E.O. 12958: N/A
TAGS: PA PGOV PREL KCRM
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, JUNE 10 -
JUNE 16 2006

REF: ASUNCION 0430 AND PRECEDING


1. (U) SUMMARY:
-- Donation of Internet to the Interior
-- Lugo to form a united opposition
-- Anti-U.S. Conference Held in Asuncion

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Donation of Internet to the Interior
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2. (U) On 6/14 the Ambassador and USAID representatives met
with Vice President Castiglioni to discuss a project to bring
high-speed internet to under-served areas in the interior of
the country. Castiglioni, a civil engineer by trade, appeared
enthusiastic about the program and asked technical questions
that were addressed by a group of technical specialists who
accompanied the Ambassador. The Vice President supports the
program but asked why Coronel Oviedo and the Chaco were
chosen as the project sites. Castiglioni suggested adding a
more rural town for a pilot program and USAID plans to
consider the possibility. The Ambassador seeks to involve the
Vice President in the launch of the project, which should
take place in September. CONATEL, the company that provides
frequency licenses in Paraguay, and COPACO, the national
phone company, will also be involved. Castiglioni stated that
he would call both companies to urge them to support the
project.

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Lugo to Form a United Opposition
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3. (U) Monsignor Lugo, former Bishop of San Pedro, has been
steadily increasing his political involvement. On 3/29 he led
a demonstration of over 30,000 protesting against a Supreme
Court decision that enabled President Duarte to claim the
Colorado Party Presidency. On 6/7 he led another
demonstration, forming a human chain around the Supreme Court
building. The president of the Beloved Fatherland Party,
Pedro Fadul, met with Monsignor Lugo on 6/14 and requested
that Lugo make a statement calling for the union of all
political parties in opposition to the re-election of
President Duarte in the 2008 elections, if the constitution
is changed to allow re-election. Lugo accepted Fadul's
request and will urge all opposition parties to support one
candidate, although it has not yet been announced which
candidate that will be. Lugo stated that he will decide by
December whether or not he will run in the 2008 Presidential
elections. (ref. A)


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Anti-U.S. Conference Held in Asuncion
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5. (U) The Paraguayan chapter of the People,s Bolivarian
Congress held a week-long conference with the principle
objective of unifying Latin America. On 6/13, the theme of
the events were entitled "Anti Imperialista - Yankis Tapeho"
(Anti-Imperialist - Yankees Leave),calling for an end to
U.S.-Paraguayan military exercises. Monsignor Fernando Lugo,
leader of his Citizen,s Resistence organization, along with
representatives from the Country in Solidarity Party and the
Beloved Fatherland Party, participated in some of the events.
CASON