PARAGUAY POLITICAL AND ECONOMIC UPDATE,

UNCLAS ASUNCION 000649

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 in
the Military
-- SENAD Intercepted 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 un-
identified 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 in the Military
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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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SENAD Intercepted 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 Carlo

A. Morinigo. SENAD informed Gilda Villalba Tottil, a prosecutor from th
Specialized Antinarcotics Unit, of the illegal imports. Villabla and he

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