PARAGUAY: DUARTE SPEAKS TO CONGRESS; OPPOSITION

UNCLAS ASUNCION 000708 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PGOV PREL PA SUBJECT: PARAGUAY: DUARTE SPEAKS TO CONGRESS; OPPOSITION NOT IMPRESSED ¶1. (U) SUMMARY: During his two-hour State of the Nation speech President Nicanor Duarte Frutos discussed progress his government had made in tackling the country's problems. He also displayed two very different approaches for dealing with the opposition. On the one hand, Duarte challenged the opposition to forge a national unity agreement centered on helping the poor. On the other, he criticized the opposition for being obstructionist and focused on defeating his policies, without consideration of their merit. On 7/7, the Ambassador met with the new oppositionist leadership of the Senate including President Enrique Gonzalez Quintana (UNACE), 1st Vice President Armando Espinola (PLRA),and 2nd Vice President Ana Mendoza de Acha (PPQ)),to exchange views on priorities for the coming year. End Summary. -------------- Duarte's Two-Faces -------------- ¶2. (U) On 7/1, President Duarte Frutos delivered his State of the Nation address to the Congress, calling for national unity in dealing with the country's problems. For nearly two hours Duarte spoke about the progress the country has made over the past year as well as the need for reconciliation and dialogue among the parties. He stressed the importance he attaches to helping the poor and carrying forward reform efforts. ¶3. (U) Showing a completely different side, Duarte appeared to divert from the text and tenor of his prior conciliatory remarks to the opposition in the final moments of his speech to criticize the opposition and accuse them of obstruction. Alluding to the new Senate President, Enrique Gonzalez Quintana, whose party UNACE is lead by imprisoned coup plotter Lino Oviedo, Duarte asserted his administration would not allow the country to return to authoritarian rule. Duarte then took aim at the Beloved Fatherland Party (PPQ), criticizing its efforts to unify the opposition under the leadership of Monsignor Fernando Lugo. -------------- The Opposition Responds -------------- ¶4. (U) Gonzalez Quintana stated that it would be difficult to achieve national unity when, in the midst of his call for unity, Duarte resorts to "dictatorial" attacks on the opposition for seeking a national political agreement. He maintained that Duarte feared a unified opposition. Other members of the opposition offered harsher opinions of Duarte's speech. Senator Marcelo Duarte of the PPQ accused Duarte of being schizophrenic and not able to stay focused on his written speech. Senator Jose Nicolas Morinigo of the Country in Solidarity Party (PPS) said that Paraguay has two presidents in Duarte - one who is "reasonable and democratic" and the other who is "thoughtless and threatening." -------------- Ambassador Meets the New Leadership -------------- ¶5. (U) On 7/7, the Ambassador met with newly elected Senator President Enrique Gonzalez Quintana (UNACE),1st Vice President Armando Espinola (PLRA),and 2nd Vice President Ana Mendoza de Acha (PPQ),to exchange views on priorities for the upcoming year. (Note: Paraguay's Congress held internal elections last June to elect new Congressional leaders. End note.) The Ambassador discussed the importance we attach to military exercises, anti-money laundering legislation, Congressional movement on the Tropical Forestation Conservation Act, and the Millennium Challenge Account's Threshold Program. Responding to the press reports that the Ambassador favored Duarte in his stand off with the opposition, the Ambassador clarified that the USG was not/not taking sides. Rather we believe both sides need to focus on what's best for the country. The Ambassador shared a fact sheet on US military operations in Paraguay designed to debunk many of the myths surrounding the operations. Acha thanked the Ambassador for providing information about our military programs but also raised her concerns about clandestine missions and ulterior motives. She signaled suspicion that US military teams were staying beyond agreed times. The Ambassador explained the different types of assistance programs we offer and invited the Senators to observe future MEDRETES. ¶6. (U) COMMENT: Duarte's 7/1 speech rekindled the opposition's animosity toward his administration. Vice President Castiglioni has been reaching out to the opposition possibly seeking to lay the groundwork for a reconciliation between the Administration and the Congress. The opposition remains highly critical of Duarte and suspicious of his agenda. Our priorities, including winning congressional approval of protections for U.S. soldiers participating in exercises slated for 2007 could potentially get caught up in the politics of the opposition's face off with the government. End Comment. CASON