PARAGUAY POLITICAL AND ECONOMIC UPDATE MARCH 24 -

C O N F I D E N T I A L ASUNCION 000261

SIPDIS

SIPDIS

STATE FOR WHA/BSC, INL/LP (JIM HIDES)
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: 03/30/2027
TAGS: PGOV PHUM PREL PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE MARCH 24 -
30, 2007

REF: ASUNCION 0241

Classified By: DCM MICHAEL J. FITZPATRICK; Reasons 1.4(b),(d)


1. (U) SUMMARY:

-- Ethics Tribunal Earns Credibility
-- SEN Gets Korea Donation; Poll Says 300k Dengue Cases
-- Police and Protesters Clash; 40 Reported Injured
-- Vice President looks at USAID Health program


ETHICS TRIBUNAL EARNS CREDIBILITY


2. (C) Esteban Armando Kriskovich, Director of the Judicial
Ethics Office, and members of the Judicial Ethics Tribunal
told PolOff and USAID officials March 29 that they have
noticed a huge change in conduct by judges recently. The
Tribunal has received dozens of ethics calls from judges in
the past several days after the unprecedented ruling against
three Supreme Court Justices for violating ethics rules March
21 (ref A). Justices Torres Kirmser, Riensi and Nuez
violated articles 10, 12, 14, 19 and 22 of the Code of Ethics
when they attended the birthday party of Colorado Senator
Juan Carlos Galaverna in December. These articles prohibit
judges and other magistrates from participating in political
activities and oblige them to maintain the public perception
of judicial independence. Kriskovich also noted that in just
five months - since the Tribunal members were selected - the
Tribunal has ruled on 25 separate cases and are in the
process of investigating 5 new cases since January. More
than 600 judges have recused themselves of party affiliation
since the Ethics Code became effective in late 2005,
according to Kriskovich.

KOREA DONATES MILLION TO FIGHT DENGUE


3. (U) The Korean Agency for International Cooperation
(KOICA) announced it is donating USD one million to the
National Emergency Secretariat (SEN) to modernize its
disaster response system. This announcement comes on the
heels of reports that the general public believes the
government failed to respond appropriately to the dengue
epidemic. A recent poll released by the government indicates
some 300,000 persons are/were infected with dengue in the
Central Department region alone. Oscar Martinez, the
Minister of Health, announced that he will study the data
from the poll and consult with experts.

POLICE AND PROTESTERS CLASH; 40 REPORTED INJURED


4. (U) The Homeless Movement held a protest March 27 that
sparked violent clashes with police leaving 40 persons
injured and nine persons arrested. The violence broke out
when the protesters tried to reach the presidential residence
(across the street from the Embassy compound) to demand
President Duarte comply with an agreement to build low-cost
housing.


5. (U) In a separate, more peaceful demonstration, the
National Peasant Federation held its 14th annual
demonstration March 27 in front of Congress. Odilon
Espinola, Secretary General of the group, advocated a
"protest vote" claiming that the current system only supports
those in power and has not resolved the country's problems.

VICE PRESIDENT LOOKS AT USAID HEALTH PROGRAM


6. (U) Vice President Luis Castiglioni joined the Ambassador
and the USAID Director last week in a two-day field review of
highly-successful health decentralization programs in Itapua
and Misiones. These USAID-supported health systems (social
pharmacies, medical care, and insurance) are serving more
than 25,000 families now in four departments, with dramatic
improvements in citizen access, quality of care, and
infrastructure all stemming from local management and


supervision of services. In his public remarks in both
departments, VP Castiglioni called the program a vital
success and a clear example of why decentralization is a
central theme in his vision for governing.







CASON