Identifier
Created
Classification
Origin
06ASUNCION986
2006-09-26 18:46:00
CONFIDENTIAL
Embassy Asuncion
Cable title:  

PARAGUAY POLITICAL AND ECONOMIC UPDATE, SEPTEMBER

Tags:  PGOV PREL PHUM ECON SNAR KCRM MASS BO PA 
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DE RUEHAC #0986/01 2691846
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R 261846Z SEP 06
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC 4837
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEHLP/AMEMBASSY LA PAZ SEP MIAMI FL//SCJ3/SCJ33/SCJ34/SOCSO LNO//
RHEHNSC/WHITE HOUSE NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
C O N F I D E N T I A L ASUNCION 000986

SIPDIS

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STATE FOR WHA/BSC, INL/LP (JIM HIDES),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: DECL: 09/25/2026
TAGS: PGOV PREL PHUM ECON SNAR KCRM MASS BO PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, SEPTEMBER
16 - 22, 2006

Classified By: PolOff James Merz; Reason 1.4 (b),(d).

(1) SUMMARY

-- ODC Trip to Chaco Peaks Interest of Bolivians
-- Interior Minister's Brother Arrested for Visa Fraud
-- GOP Official Complains About Paucity of U.S. CN Assistance
-- Meanwhile SENAD Arrests 3 More Traffickers

ODC Trip to Chaco Peaks Interest of Bolivians


2. (C) The Chief of Post's Office of Defense Cooperation
(ODC) visited Paraguayan military bases in the three
Departments in the Chaco, the vast, underpopulated region in
northwest Paraguay, the week of September 18 as part of an
orientation trip and in preparation for a future medical
readiness exercise (MEDRETE). ODC's Chief flew to the region
in Paraguayan aircraft and was accompanied by only 2 Embassy
staff. One article in Paraguay's left of center Ultima Hora
drew attention to the visit to Pozo Hondo-Chaco, which is
located on Paraguay's tri-border with Argentina and Bolivia,
overstating the number of Americans and suggesting residents
of the area had complained the Americans were investigating
the region for the presence of terrorists. ODC's Chief was
informed that six Bolivian military officials crossed the
border seeking information about the visit of the US
military. Separately, Bolivian Embassy officials in Asuncion
reportedly also made follow-on inquiries with Paraguay's
Ministry of Defense. Paraguayan defense officials have asked
the Foreign Ministry to formally complain to Bolivia about
improper procedures used by Bolivian officials -- including
the Chief of Staff of the 4th Army Brigade -- to cross into

Paraguay. Paraguayans have an opportunity to pursue border
issues and military cooperation further this week with the
visit of the Bolivian Defense Minister.

Interior Minister's Brother Arrested for Visa Fraud


3. (SBU) Rommel Sapriza, the Deputy Director of the Police
Department's Firemen's Corps, and also the brother of Vice
Minister of Interior Mario Agustin Sapriza, was arrested on
September 18 for "influence trafficking." Rommel was caught
on a hidden camera several weeks ago offering to assist
someone to obtain a U.S. visa in exchange for $150,
maintaining he had a nephew inside the Embassy who would
produce the visa. Sapriza never produced the visa and upon
arrest was found with the passport of the individual still in
his possession. There is no evidence he was working with
anybody at the Embassy. (On the contrary, RSO and CONS had
been working with local authorities in order to make the
arrests.) There is also no evidence, his brother Mario
Agustin Sapriza, was implicated. However, Vice-Minister
Sapriza resigned on September 22 to avoid the risk some would
claim that he was using his stature in the government to
influence his brother's case.

GOP Official Complains About Paucity of U.S. Drug Assistance


4. (SBU) An unnamed GOP official traveling with President
Duarte to NY for the UN General Assembly complained to the
Paraguayan press about the reduction in U.S. (INL) assistance
to Paraguay to combat drug trafficking. Noting a reduction
in US assistance from approximately $600,000 in 2005 to
400,000 in 2006, of which only $110,000 was earmarked for
fighting drugs, the official juxtaposed declining U.S.
assistance with rising GOP effectiveness in arresting major
traffickers and making significant seizures of drugs and
weapons. Paraguay has been delivering this message to the
Embassy on frequent occasion. Even President Duarte has
publicly complained about the perceived U.S. downgrading of
cooperation -- an otherwise shining example of successful
bilateral cooperation. Post continues to remind GOP
officials that US assistance to Paraguay writ large extends
beyond $58 million total in 2006 and that we are still
drawing down on pipeline cash in excess of $1 million to
support GOP efforts to combat drug trafficking, money

laundering, TIP, and IPR violations. (NOTE: Come FY 07,
however, unless our funds are replenished, our efforts to
support GOP CN activities will be effectively eroded as we
will have exhausted our CN funding almost entirely. END NOTE.)

Meanwhile SENAD Arrests 3 More Traffickers


5. (U) Meanwhile, SENAD keeps racking up arrests. In
cooperation with the Brazilian Federal Police, agents from
Paraguay's Anti-Drug Secretariat (SENAD) arrested three
Brazilian citizens in two separate incidents in the city of
Pedro Juan Caballero, on Paraguay's border with Brazil.
SENAD arrested Paul Larson Dias and Marcelo Matos Da Silva on
9/13. Larzon is identified by SENAD as the stepfather of
Jarvis Pavao, a major drug trafficker wanted in Brazil and in
Paraguay. Larson and Matos were detained by public
prosecutors; both have long criminal records in Brazil and
ties to the major drug traffickers in both countries. SENAD
agents arrested Claudio Quinhonez (AKA Marcos o ZAZA) on
9/15. Quinhoez is identified as Pavao's pilot and is wanted
by Brazilian authorities on drug trafficking charges as well.
CASON