PARAGUAY POLITICAL AND ECONOMIC UPDATE, JUNE 17 -

UNCLAS ASUNCION 000648

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: KCRM KWMN PA PGOV PREL SMIG SNAR
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, JUNE 17 -
JUNE 23 2006



1. (U) SUMMARY:
-- 39 Paraguayan Women trafficked to Spain
-- Government Apologizes for the Deaths of Two Minors
-- Illegally Imported Chemicals


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39 Paraguayan Women trafficked to Spain
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2. (U) On 6/19, local press reported that 39 Paraguayan women
were rescued by Spanish police, based on a tip from an
unidentified Paraguayan citizen. The woman informed the
police that she was recruited for a job as a waitress in
Spain and offered the necessary travel documents to get
there. Upon arrival she was forced into prostitution in order
to "pay her debts" for the travel. Working on that
information, the Spanish authorities initiated operation
"Night Moon" in Alicante, Palma de Mallorca, Ibiza and
Cuenca. The police raided 5 clubs in those cities, and
discovered 146 women working as prostitutes. The police
detained 18 members of the network responsible for
trafficking the women for sexual exploitation. It is not
known at this point if the victims will be repatriated. GOP
officials do not have all the details related to this
situation and are awaiting a report from Interpol. Post will
continue to monitor the developments in this case.


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Government Apologizes for the Deaths of Two Minors
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3. (U) On 6/20 the Paraguayan Government apologized, for the
first time, for the death of two soldiers who were
conscripted into the military as minors. The Chancellor Leila
Rachid made a public statement on behalf of the state of
Paraguay accepting responsibility for the deaths and asking
for public pardon, stating that it would not happen again.
Victor H. Maciel, of the First Cavalry Division, died on
10/2/1995 due to overexertion. He had a parasitic disease
(Chagas) but was not examined upon entering the military, so
the condition went undetected and untreated. Another minor,
Gerardo Vargas Areco died on 12/30/1989 after being tortured
and shot. Both cases were litigated by the non governmental
organization (NGO) the Peace and Justice Service (Serpaj) and
the Center for Study and International Rights (CEJIL) before
the Interamerican Commission and Court of Human Rights
(CIDH),part of the Organization of American States. The
Minister of Defense, Roberto Gonzalez, announced that in the
Maciel case the state of Paraguay reached a settlement with
the family and will pay USD 25,000 in compensation. The
sentence in the Vargas Areco case is still pending. General
Jose K. Kanazawa, Commander of the Armed Forces, also asked
for pardon from the mother of Victor Maciel. Under obligatory
military service, 113 Paraguayan soldiers have died since
1989, most of them conscripted while minors. General Kanazawa
has presented Congress with two bills to modify the Law of
Obligatory Military Service and the CIMEFOR law, in order to
guarantee that minors under the age of 18 are not conscripted
into the military.

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Illegally Imported Chemicals
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4. (U) SENAD agents discovered that controlled substances
were going to be imported illegally through the private port
Paksa in Sajonia, neighborhood within Asuncion, and were able
to intercept the shipment. On 6/14 a Scania tanker rig, ARX
972, entered the port carrying 15.4 metric tons of anhydride
dimethyl acetone and 7.4 metric tons of isopropyl alcohol.
Acetone can be used (as DMK-A) in the production of cocaine
and heroin. The chemicals were exported from Argentina by
Carboclor SA to Chemtec SA, a company that is located in
Nemby, approximately 15km North of Asuncion, and is not
registered with the Ministry of Public Health. Chemtec SA

failed to register the chemicals with immigration and did not
obtain the proper import licenses. The rig belongs to
Petroquim, a company that is registered in Paraguay to Carlos

A. Morinigo. SENAD informed Gilda Villalba Tottil, a
prosecutor from the Specialized Antinarcotics Unit, of the
illegal imports. Villabla and her assistants went to the port
and met with its director Carlos Kanonicoff, who allowed them
to search the port. They were able to confirm the make and
color of the truck and the chemicals that it contained. The
substances remain in custody, pending further investigation.
If convicted, those responsible for the companies could be
sentenced to 5-10 years in prison.

CASON