Identifier
Created
Classification
Origin
07ASUNCION285
2007-04-04 21:40:00
CONFIDENTIAL
Embassy Asuncion
Cable title:
PARAGUAY SCENESETTER FOR SOUTHCOM COMMANDER
VZCZCXYZ0001 PP RUEHWEB DE RUEHAC #0285/01 0942140 ZNY CCCCC ZZH P 042140Z APR 07 FM AMEMBASSY ASUNCION TO RUMIAAA/USCINCSO MIAMI FL//SCJ3/SCJ33/SCJ34/SOCSO LNO// PRIORITY RUEHC/SECSTATE WASHDC PRIORITY 5561 INFO RUEKJCS/USSOCOM WO WASHDC RUEKJCS/SECDEF WASHDC RUEKJCS/JOINT STAFF WASHDC RHEFDIA/DIA WASHDC RHEHNSC/WHITE HOUSE NSC WASHDC
C O N F I D E N T I A L ASUNCION 000285
SIPDIS
SIPDIS
E.O. 12958: DECL: 03/30/2027
TAGS: PREL PGOV PTER MARR MASS SNAR PA
SUBJECT: PARAGUAY SCENESETTER FOR SOUTHCOM COMMANDER
Classified By: POLCOUNS JAMES P. MERZ; Reasons 1.4(b),(d)
C O N F I D E N T I A L ASUNCION 000285
SIPDIS
SIPDIS
E.O. 12958: DECL: 03/30/2027
TAGS: PREL PGOV PTER MARR MASS SNAR PA
SUBJECT: PARAGUAY SCENESETTER FOR SOUTHCOM COMMANDER
Classified By: POLCOUNS JAMES P. MERZ; Reasons 1.4(b),(d)
1. (C) Admiral Staviridis, Embassy Asuncion warmly welcomes
your visit as an opportunity to promote U.S. interests
focused on strengthening democratic institutions, promoting
sound economic policies and good governance, disrupting
criminal organizations, and combating terrorist financing.
You come at a particularly sensitive time, with President
Duarte weakened and much of the body politic focused on
Presidential Elections scheduled for May 2008. Neighboring
governments -- immediate and more distant -- and segments
within Paraguay routinely call into question important
aspects of our security relationship. Many Paraguayans -
inside and outside the government - however, support closer
U.S. ties, in particular as a political and economic
counterbalance to the influence Brazil wields over Paraguay
and in response to concern about growing cooperation between
Venzuela-Bolivia, including in the military sphere.
2. (SBU) An overview of the current situation in Paraguay
follows, highlighting key issues which may come up in your
scheduled meetings.
Your Program in Asuncion
--------------
3. (U) Post is glad to have this opportunity to host your
visit to Paraguay. You will meet with the Ambassador first
and then with the Country Team to obtain brief on the overall
situation in Paraguay with a particular focus on CT issues.
We have arranged for you to visit both the Minister of
Defense, Dr. Roberto Gonzalez Segovia, and the Commander of
Armed Forces, GEN Bernardino Soto Estigarribia, and his
service chiefs. Your meetings with them afford the
opportunity to strengthen existing rapport, and to discuss
ways to advance U.S. bilateral security cooperation,
particularly military exercises. As this will be your first
visit to Paraguay, we believe that you will find your stay to
be both enjoyable and fruitful.
The Political Scene
4. (C) Your visit comes four years into the presidency of
Nicanor Duarte Frutos. In that time, Duarte has taken steps
to deal with a pressing fiscal crisis, revive the economy,
and fight corruption. In the last year, however, political
support for Duarte has sagged with polls indicating the
general population is not satisfied his government has taken
adequate measures to create jobs, improve the economy and
tackle corruption. Duarte has also taken a shift toward the
left, criticizing President Bush and stressing greater
appreciation for Venezuelan President Chavez, and his
"commitment" to the region. Duarte continues to seek a
Constitutional amendment allowing for his reelection. Much
of the population as well as the opposition parties and some
within the Colorado Party (who seek to back other candidates)
are dead-set against reelection. Duarte's reelection
prospects, while remote, are not dead. Meanwhile, he is
looking to identify a potential presidential candidate to
succeed him, favoring his Education Minister Blanca Ovelar
over Vice President Castiglioni should the amendment not come
to fruition. Vice President Luis Castiglioni formally
declared his intention to seek the Colorado nomination March
28 further complicating the messy political scene. Leftist
priest Fernando Lugo represents the opposition's leading
candidate though he faces a potential legal challenge himself
as the Constitution bars "ministers" from seeking political
office.
Paraguay,s Public Security Challenges
5. (C) Twelve members of the Free Fatherland Party (PPL) - a
far-left, rural-based political movement - were found guilty
in 2006 for the kidnapping and murder of the daughter of
former president Raul Cubas. The body of Cecilia Cubas was
discovered in February 2005. Argentina, Brazil and Bolivia
have yet to estradite others implicated who took refuge
abroad. Evidence ties the PPL to the Revolutionary Armed
Forces of Colombia (FARC). The Cubas kidnapping has proven
to be one in a series of events over recent years to suggest
the emergence of a political movement bent on provoking
instability through violence. A culture of distrust,
allowing for little inter-institutional cooperation, hampers
the ability of Paraguay's law enforcement community and
military to tackle rising concerns about public security;
Paraguay,s National Police are widely disparaged by the
general population as incompetent and corrupt, and the police
and military are rivals, not partners. The Cubas killing and
clear evidence of FARC involvement shocked Paraguay,s
leaders and population. Increased cooperation with Colombia
and the U.S. and the realization of the need for better
intelligence and other security measures were positive, if
ironic, results of the Cubas case. Concern over the PPL has
died down since the conviction while, internal security
concerns have risen. Of late, major robberies and
kidnappings of an apparently criminal nature, including
alleged terrorist financier Mohammad Barakat, are on the
rise, particularly in Ciudad del Este.
Reforming the Economy, But Growth Insufficient
6. (U) Paraguay,s economy relies heavily on agriculture. It
features bloated but weak state institutions and the heavy
involvement of state-owned enterprises. There is
considerable activity involving the trading of imported
legitimate goods, contraband and counterfeit products, most
of which are destined for Brazil or Argentina. President
Duarte took office in 2003 inheriting a weak economy and
promising to attack widespread corruption and reform the
economy. He named a non-partisan, technocratic economic
cabinet and has supported their efforts. On a macroeconomic
level, Paraguay,s performance has been strong: economic
growth reached 4 percent in 2006 and inflation was 12.5
percent. However, whereas the government succeeded early on
in getting some significant economic reform laws through
Congress, progress over the three years has been slow. The
confrontation between Congress and the Executive has all but
frozen any reform efforts that require legislation; the
Congress has rejected several loans (from the IDB, EU and
Japan) and suspended for one year the application of the
previously authorized personal income tax. For Paraguay to
escape from the poverty affecting roughly half of its
population, the country needs to increase productivity by
attracting capital and raising annual growth rates to at
least 5 or 6 percent -- and sustaining them there. Success
will require the government to stay the course on
macroeconomic stability and undertake deeper structural
reforms. But as the President now gears up for a bruising
2007 fight over re-election, there is no sign of the
political will.
International Crime and Counter Terrorism
7. (U) The Tri-Border Area (TBA),the region of Paraguay that
meets Brazil and Argentina near the city of Ciudad del Este,
is a primary USG concern. The area, with its loose borders
and lax controls, is a a hub for transnational criminal
activity including drug trafficking, trafficking in persons,
arms trafficking, intellectual piracy, document forgery, and
contraband. Brazil has tightened its border controls forcing
the trafficking of contraband downward, however, the evidence
significant money continues to flow out of CDE to the Middle
East. Brazil has begun erecting a wall around its customs
facility on the border that has raised some controversy.
8.(SBU)Paraguay is widely regarded as the weakest link in
combating the wide range of illicit activities that occur in
the TBA. Corruption at multiple levels undercuts serious law
enforcement efforts. Nevertheless, Paraguay has taken
serious steps to address its institutional deficiencies by
creating special units, principally in Customs and the
Ministry of Industry and Commerce (MIC) to investigate more
effectively IPR violations and customs fraud. The MIC,s
Specialized Technical Unit (UTE) in particular has made a
number of significant seizures of counterfeit products.
These units receive significant assistance from the USG in
the form of INL funds or the MCC Threshold Program.
9. (SBU) Paraguay,s Anti-Money Laundering Secretariat
(SEPRELAD) has also received technical assistance and
equipment from the U.S. Paraguay has subscribed to all 12 UN
counter-terror conventions but its anti-money laundering law
is lacking in that it does not allow for prosecution of money
laundering as an autonomous crime. Nor does Paraguay yet
have counter terrorism legislation. Paraguay seeks to meet
its international obligations through provisions in a series
of three bills. UNCTC Executive Ruperez approved of the
draft legislation text when he visited in July 2007. The
first bill establishing money laundering and terrorist
financing as crimes and setting out the consequent penalties
was delivered to Congress this October. The bill on
procedural tools for the prosecution of these crimes remains
under arduous debate before a Legislative Reform Commission
and could face much of the same when it is submitted to
Congress. The law establishing SEPRELAD,s regulatory
authorities has been drafted but not yet submitted to
Congress pending movement on the first bill. Paraguay,s
SEPRELAD could face suspension from the Egmont Group should
this bill not be adopted before June. In December, Treasury
designated nine individuals and two entities from the TBA for
involvement in terrorist financing. Publicly, Paraguay
subscribes to the Brazilian line that terrorist financing is
not a problem. However, on a constructive note, in the
absence of an effective money laundering law, Paraguay has
prosecuted three alleged Hizballah terrorist financiers for
tax evasion.
10. (SBU) Paraguay is a significant transit point for the
transportation of cocaine and other narcotics by air from
Colombia and Bolivia to Brazil. Much of the northwestern
part of the country is barren and uninhabited, and the GOP
has difficulties in enforcing the law due to geography and
the political (and judicial) power some drug traffickers
wield. Paraguay,s Anti-Drug Secretariat (SENAD),the
single-most effective law enforcement body in Paraguay,
coordinates GOP interdiction efforts, with significant
assistance from the DEA and support from US Special Forces
advisors.
11. (SBU) In 2004, Paraguay and Brazil collaborated in a
joint operation, with DEA assistance that produced an
historic seizure of over 260 kilograms of cocaine and the
arrest of Brazilian drug kingpin Ivan Carlos Mendes Mesquita,
wanted in the U.S. on drug trafficking charges. Paraguay
cooperated with the USG extradition request and Mendes
Mesquita was taken into U.S. custody in 2005, a dramatic and
unprecedented step. Working closely with the U.S., SENAD has
effectively targeted Brazilian trafficking groups that are
run mostly out of Pedro Juan Caballero (PJC) on Paraguay,s
northern border with Brazil. Within the past year, SENAD has
made a number of significant arms seizures with evidence
signaling links to Brazil,s PCC and Colombia,s FARC. While
these weapons were seized in PJC and Asuncion, arms and drug
trafficking also occur out of CDE. Presently, SENAD is
hard-pressed to meet challenges in that region for lack of
resources (its national annual budget is just $2 million).
SENAD will inaugurate a helipad in PJC on April 11, the
second phase of State Department funded ($500,000) project,
creating a SENAD facility in the region and a potential base
from which to launch operations. SENAD Director Ibarra will
appeal to you for SOUTHCOM assistance to fund fuel and
helicopter maintenance.
Regional Concerns
12. (SBU) The political situation in Bolivia is on the
political radar screen in Paraguay but not in a major way.
Some commentators have conveyed concern that instability in
Bolivia could lend itself to a higher flow of drugs or other
illicit activity from that country. Some Paraguayan military
officials have conveyed to me a concern about lingering
irredentist claims within some segments of the Bolivian
military to territory in the Chaco -- a vast region in
Western Paraguay that borders Bolivia and served as the site
of a war with Paraguay in the 1930s -- that could stir
controversy and tension should Bolivia suffer an extended
period of instability. Reported discoveries of potential
commercially significant natural gas resources near the
Bolivian border could add fuel to such concerns. Lastly,
Brazil and Paraguay rely on Bolivian infrastructure for land
traffic extending to the Pacific coast that could be
jeopardized in the event of instability in Bolivia. Some
Bolivian commentators, including political officials, have
signaled concern that the U.S. sought to establish a military
base in the Chaco for the purpose of monitoring activities in
Bolivia or attempting to control energy resources in the
Bolivian and Paraguayan Chaco region. All things considered,
however, Bolivia does not figure large in Paraguay's foreign
relations -- or vice versa -- and most Paraguayan decision
makers devote fleeting attention to developments in Bolivia.
13. (SBU) Despite preoccupation with close-to-home terrorism
issues including kidnappings, local violent radicals, the
FARC, and fund-raising for Hezbollah, Paraguay is reluctant
to take a lead in the war on terrorism beyond its borders.
This is due to pressure from Brazil as well as domestic
concerns that an aggressive anti-terrorism policy (e.g., vis
a vis the Middle East) will draw terrorist reprisals. In
addition, memories of abuses under the Stroessner
dictatorship (1954-1989) still cast a long shadow. In 2004,
President Duarte received JCS Chairman General Myers but then
made a public show of announcing that Paraguay would not send
a contingent to Iraq despite having volunteered to do so to
President Bush a year earlier. Given false allegations the
U.S. wants to establish a military base in Paraguay, we
recommend tailoring any public remarks about Paraguay,s role
in the GWOT in a way that will not lend fuel to these false
claims. It is perhaps best to focus interlocutors on
attacking corruption and the facilitation of international
crime as a way to improve Paraguay,s international image.
14. (C) The political situation in Bolivia and the activities
of President Evo Morales are currently at the center of the
political radar screen in Paraguay. Some Paraguayans have
conveyed to us a concern about lingering irredentist claims
within some segments of the Bolivian military to territory in
the Chaco - a vast region in Western Paraguay that borders
Bolivia and served as the site of a war with Paraguay in the
1930s - that could stir controversy and tension should
Bolivia suffer an extended period of instability. Brazil and
Paraguay rely on Bolivian infrastructure for land traffic
extending to the Pacific coast that could be jeopardized in
the event of instability in Bolivia. Late last year, some
Bolivian commentators, including political officials, have
signaled concern that the U.S. sought to establish a military
base in the Chaco for the purpose of monitoring activities in
Bolivia or attempting to control energy resources in the
Bolivian and Paraguayan Chaco region. Paraguay and Bolivia
relations have cooled over the Venezuelan and Bolivian
Military Agreement announced last fall. Some within the
Paraguayan government, civil society and the media have
expressed the desire for Paraguay to enter into a bilateral
security agreement with the United States. A small circle of
senior government officials is currently considering a
USG-proposed 5-year SOFA granting A&T privileges and
immunities for US military personnel but the main obstacle
seems to be President Duarte.
15. (U) Paraguay and Bolivia signed a security/defense
agreement at the end of March, which included a joint
communique on dengue fever. The agreement aims to improve
communication and information exchange as a way to address as
a way to address mutual suspicions. It also details plans for
the 6th High Military Command Meeting in Asuncion on
September 10-12 to increase military-to-military exchanges
and ties.
U.S. Activities
16. (SBU) U.S. activities in Paraguay are focused on
strengthening democratic institutions, promoting sound
economic policies and good governance, disrupting criminal
organizations, and combating terrorist financing. Post
maintains bilateral assistance programs dealing with
combating narcotics trafficking, money laundering,
intellectual property violations, and trafficking in persons.
A Department of Justice Resident Legal Advisor and advisors
from Treasury,s Office of Technical Assistance have worked
quietly behind the scenes over the last three years to assist
the Paraguayan Government in developing appropriate money
laundering and counter-terror legislation. In the wake of the
Cubas kidnapping, Vice President Castiglioni traveled to the
U.S. for meetings with VP Cheney, former SECDEF Rumsfeld, and
other key officials to discuss a comprehensive approach to
Paraguay,s security challenges, including a high-level
seminar sponsored by the Center for Hemispheric Defense
Studies (CHDS) that was held in September 2005. Former
SECDEF Rumsfeld visited Paraguay in August 2005. At the end
of 2006, CHDS followed-up with comprehensive meetings on
transformation and reformation of the military. Paraguay has
expressed interest in acquiring technical assistance in
development of its National Security Strategy and National
Defense Plan. USAID and the Peace Corps also have programs
in the country. Paraguay began to implement a USD 35 million
Millennium Challenge Account Threshold Program in May 2006;
its poor historical record on corruption was the major reason
it did not qualify for full participation in the program.
The Threshold Program focuses on combating impunity and
informality.
18. (C) Notwithstanding, President Duarte's decision last
October not to extend SOFA protections to U.S. military
personnel, U.S. military cooperation with Paraguay has
continued, albeit under a lower profile. While MEDRETES have
been suspended for the time being, but teams of Special
Forces advisors, obstensibly unarmed since the Senate has not
approved the entry of "troops" as required by the
Constitution, are scheduled to interface with their
Paraguayan counterparts on several different occasions
throughout the year. A team of 13 entered Paraguay in late
March and is scheduled to remain for three months. This
subject is sensitive and we have not yet spoken to it in
public. We continue to negotiate the terms of a new SOFA but
are not optimistic about prospects for progress in before May
2008 elections. Separately, we are hopeful about concluding
a 505 Assurance Agreement with Paraguayan through an exchange
of notes with the Foreign Ministry the week of your visit.
This agreement will enable us to proceed with disbursement of
$1.1 million for GPOI funds. We are also providing Paraguay
with some $3.5 million in 1208 funds for weapons and other
equipment.
The Military's Mission
19. (SBU) Paraguay's military is a small force struggling to
redefine its mission notwithstanding insufficient funding and
intermittant scandals. The Army is the largest of the three
services (6,000),followed by the Navy (2,000) and Air Force
(1,200). The Navy has a law enforcement mission on Paraguay's
rivers. The military's primary mission is to protect
Paraguay,s territorial integrity, defend the legitimate
authorities in accordance with the Constitution, and
cooperate in civil defense. It does not have a lead role in
counter drug operations; however, the military provides a
specialized tactical unit to support SENAD. The military's
Special Forces unit is in the process of organizing a
company-size counterterrorism unit, and the Presidential
Guard Unit has a specialized counterterrorist platoon. More
recently, Paraguay has attempted to increase its presence in
peacekeeping operations. Brazil is supporting Paraguay's
deployment of 33 personnel to Haiti.
20. (U) Military infrastructure and equipment is old,
obsolete and in desperate need of repair/replacement.
Paraguay,s defense budget for 2007 represents approximately
1.9 percent of the national budget or USD 72M. Ninety
percent of the budget is used to pay salaries and 5 percent
is used for sustaining conscripts, leaving only 5 percent for
operations, maintenance and training. Budget problems are
not expected to go away in the near future due to lack of
strong support in congress and lingering memories of
Paraguay's 35-year dictatorship among some politicians.
21. (U) Despite the above-noted challenges, the military has
remained subordinate to civilian authority. When called, it
has supported law enforcement activities, public health
campaigns and provided transportation assistance for farmers
to bring their products to market. The military is still
seen as the first to be called whenever there is a "crisis,"
and many Paraguayans feel "safer" when the military is out on
the streets with the police. The President called upon the
military to support the police in November 2004 in the wake
of the Cubas kidnapping and ensuing sense of insecurity;
military remains on the streets today. The role of the
Presidential Guard and its former leader, Col. Galeano, had
created controversy. With its own armor, artillery and other
material, and better trained troops, it is the strongest unit
in country and acts independently. The new commandant of the
Presidential Guard is Lt. Col. Jose Casaccia.
Strong Record of Military Cooperation
22. (U) Post's Office of Defense Cooperation (ODC) has
developed a robust JCET/CNT program, second to only that of
Colombia in the region, and implemented the Counter Terrorism
Fellowship Program contributing significantly toward
establishment of host nation CT capability, including
designation and creation of a Paraguayan Tier 1 unit.
Funding from the Enhanced International Peacekeeping
Cooperation (EIPC) program has facilitated the training of
over 1,081 observers and peacekeepers and the deployment of
approximately 101 Paraguayans in support of peacekeeping
operations in this hemisphere and Africa. Separately, ODC
has also launched an outreach program, leveraging the State
Partnership Program, designed to encourage the military to
build institutional links with legislators in part through
visits by Paraguayan Congressmen as well as Flag officers
from the Joint Staff and Ministry of Defense with their
counterparts in the U.S. The partnership with the
Massachusetts National Guard is robust; the MANG designation
of a full time TCA coordinator from MANG has greatly promoted
this lash up. These visits have generated greater
appreciation for the value of military cooperation.
Article 98/Immunities
23. (SBU) We do not have an Article 98 agreement with
Paraguay. Last year, the MFA formally informed us that it
was not prepared to sign an agreement with.
The Impact of Your Visit
24. (U) You are unlikely to encounter the press as
jounalists generally do not stake out the Ministry of Defense
where your two most important meetings will take place.
Should you encounter press, it is worth noting Paraguayan
journalists are generally friendly people. Even if you have
no time, it is better to stop and answer a question or two
than to refuse questions. If you refuse, then it becomes a
case of offended reporters claiming "secret meetings."
Some anodyne talking points you might consider in the even
press does find you and asks questions:
Purpose of visit
-- I assumed command of SouthCom last October. It is
customary and traditional for newly-appointed SouthCom
Commanders to make courtesy visits with counterparts in the
region.
-- This is an initial visit to Paraguay to meet key civilian
and military leaders of a valued friend.
-- (important to note) Paraguay is my first stop on this
trip. From here, I travel to Argentina where I will meet
with Argentine counterparts.
Rumors of a base
-- Reports of the basing of U.S. troops are without any basis
in fact.
-- The US Government has no interest in basing troops in
Paraguay.
Guarani aquifer (rumors that the U.S. wants to steal
Paraguay's supply of fresh water)
-- I have heard of these rumors and they are without basis in
fact.
-- The U.S. has access to adequate water supplies. In the
unlikely event of a crisis, there are sources much closer and
more cost-effective. (tongue in cheek) Bringing the water by
air or a pipeline across the continent of South America are
not realistic options.
International Crime and Counter-terrorism
-- As clearly outlined in the U.S. report on global
terrorism, we believe the activities in the Tri-Border Area
are basically fundraising and financing) not operational in
nature.
-- We rely on the authorities in the countries involved to
provide the legal structure to allow the investigation,
arrest, and prosecution of persons involved in such
activities.
-- We are pleased by Paraguay's active cooperation in the
fight against terrorism. It has taken important steps to
counter this grave problem and was instrumental in helping
strengthen regional cooperation with the U.S. (through the "3
plus 1" mechanism).
But where is your proof that Paraguay funds terrorists?
-- We never said that "Paraguay" funds terrorists, but rather
individuals in Paraguay (specifically in the Tri-Border Area)
fund organizations engaged in terrorist activities.
-- President Duarte mentioned the threat from terrorist
financing in his 2005 annual message to Congress
-- Illicit activity, particularly along the tri-Border,
fosters corruption, discourages investment, inhibits economic
development, and creates a milieu favorable to money
launderers and terrorist financiers.
-- In recent years, Paraguay has convicted individuals for
tax evasion who have also been implicated in laundering money
to terrorist groups.
-- It is vital Paraguay continue to prosecute and convict
those implicated in illicit activity, including money
laundering and terrorist financing.
Anti-drug effort
-- Paraguay is making an important effort against drug
trafficking, despite limited resources
-- We are confident there will be continued good performance
in this area, which will benefit the Paraguayan people, as
well as the region at large.
Q. What will SOUTHCOM be providing Paraguay to meet its
security challenges? Can you give us radars and helicopters?
-- The U.S. has provided Paraguay millions of dollars in
funds to assist Paraguay in combating narcotics trafficking,
money laundering, trafficking in persons, and intellectual
property rights piracy.
-- Those funds support training for judges, prosecutors, and
police, purchase of equipment, and conduct of operations.
-- Since 1987, the U.S. has donated over USD 6.6 million to
assist Paraguay's law enforcement efforts.
Q. What will SOUTHCOM do to help Paraguay deal with the
threat posed by the FARC?
-- Evidence of FARC ties to the Cubas kidnapping is very
disturbing. The FARC has demonstrated its readiness to
commit any number of atrocities, including kidnappings and
other forms of terrorism, to advance its objectives.
-- The U.S. recognizes Paraguay's commitment to address this
problem. We are exploring ways we can support Paraguay,
particularly in the law enforcement field, with appropriate
training.
25. (SBU) For your background, we also provide press
guidance prepared to deal more in depth with the senstive
issue of ongoing military cooperation with Paraguay absent an
agreement providing protections and Senate approval for the
entry of "troops."
Q. Now that the bilateral agreement allowing MEDRETEs and
joint military training exercises (18-month agreement, June
2005-December 2006) has expired, are there any U.S. troops in
Paraguay? Are there any joint military exercises or MEDRETEs
underway, or planned?
A. Absent Government of Paraguay approval, there are no
MEDRETES, and there are no joint military exercises scheduled
for 2007.
However, a variety of other military to military cooperation
activities continue on a professional and technical level
with the Paraguayan Armed Forces, much as we have been doing
for more than 60 years.
Q. What are these activities that you mentioned?
A. The United States military maintains close cooperation
with many countries through out the world, and the
relationship we enjoy with Paraguay is not unusual.
For example, the United States and Paraguay are working
together to develop peacekeeping operation abilities. The
U.S. is supportive of the Government of Paraguay,s efforts
to deploy peace keeping units or observers to Haiti, Cyprus,
and other locations around the world in UNITED NATIONS
peacekeeping operations.
We also support GOP efforts to improve the Paraguayan
military,s capability in responding to disasters and in
other types of humanitarian efforts. Unfortunately, the
Paraguayan government has not authorized any MEDRETEs, the
mobile medical clinics that are very important in supporting
humanitarian efforts.
In close coordination and cooperation with the Government of
Paraguay, we also conduct a variety of seminars, conferences,
orientation visits, advisory and instructional activities for
the Armed Forces of Paraguay.
For example, there are subject matter expert exchanges in
stopping illegal narcotics and arms trafficking, responding
to terrorism, and protecting the sovereignty of the country.
We have also provided technical medical analysis regarding
how to control dengue fever.
All these activities are coordinated through the Embassy,s
Office of Defense Cooperation (ODC) in conjunction with, and
at the request of, the Government of Paraguay.
For more details on the nature of this cooperation we refer
you to the Paraguayan Military Forces.
Q. Do the military personnel working in the ODC have
immunity?
No. Absent an agreement, participants in military
cooperation activities presently do not enjoy protections.
Q. How are these efforts different from the other military
activities that were executed last year under the previous
agreement?
Last Year: The Joint Combined Exercises for Training
(JCETs),MEDRETEs and Fuerzas Comando Exercises conducted
last year were designed for the training of both U.S. forces
and the Paraguayan armed forces, side-by-side. Military
personnel from both nations learned from each other and
trained together.
The MEDRETES, for example, provided an opportunity for U.S.
and Paraguayan medical personnel to work side by side to
provide medical care, dental and veterinary care to citizens
in remote parts of the country where doctors and medical
personnel are often not available.
The military units here last year for non-MEDRETE exercises
used their own weapons and equipment while training with the
Paraguayan military.
All exercises had been coordinated and approved by the GOP
and the Paraguayan Senate as is stipulated in the Paraguayan
Constitution.
Now: The military personnel that are in country today are
technical experts and advisors who enter Paraguay unarmed and
work with various branches of the Paraguayan armed forces or
other Government of Paraguay offices. (If pressed: For
example, SENAD).
Q. How many U.S. military personnel are there in Paraguay
right now?
A. US military personnel that come to Paraguay to work with
the US Embassy enter with the full approval of the Government
of Paraguay organization with which they work.
There are many different types of military personnel that
support the various US Embassy offices and as a general rule
we do not like to get into specifics on numbers. The
Ministry of Foreign Affairs has our list of accredited
personnel.
If pressed for an actual number:
In a general terms, an approximate number of U.S. military
persons here at any one point would be about two dozen (24
people, or so) in a variety of different assignments,
including office support workers inside the Embassy.
Q. How long will this military cooperation continue?
We hope that the GOP will continue to want and support our
military to military cooperation efforts because or our long
standing history of more than 60 years. We feel that
cooperation is beneficial to both our militaries and
countries.
As we have seen this year, the level of cooperation is an
ongoing project between our two countries subject to the
approval of the sovereign nation of Paraguay.
The ambassador has said that we are continuing to negotiate
with the GOP in the hopes that Paraguayans can benefit from
activities such as MEDRETEs and engineering exercises.
FACT:
In the most recent period of MEDRETEs, from July 2005 to
December 2006, Paraguayan patients treated by doctors and
receiving free medicines totalled 56,484 patients.
Veterinarians treated 2,533 animals. (source: ODC)
Q. Where are the US military personnel located?
A. Because many of these military personnel are here at the
request of the Paraguayan military, we refer you to the
Military Forces Headquarters regarding these specific
questions.
Q. The U.S. has provided military equipment, medicines, and
other supplies to the Paraguayan Government in the past,
during the JCETs, MEDRETEs, etc. Will the current US efforts
continue bringing military equipment and supplies as part of
our programs?
A. Yes. Our military-to-military cooperation programs
provide for the donation of some equipment and training.
For specific info, we refer you to the FFAA.
If pressed:
In general terms, the United States is currently providing
approximately USD two million dollars of cooperative
assistance to the FFAA, including:
-- $1.1 million for Peace Keeping equipment and training,
-- $250,000 for professional and technical military education
and training (IMET),
-- $250,000 for professional and technical military training
in CT courses,
-- approximately $500,000 for seminars, conferences, subject
matter expert exchanges, and orientation visits.)
Q. Is there information on the C-17s and other military cargo
planes that occasionally land at Asuncion,s airport?
A. C-17s and other cargo aircraft stop briefly in Asuncion on
routine flights that usually bring some American foods,
office equipment, and personal household goods for the use of
personnel assigned to various U.S. Embassies in the region.
At times the flights also bring in some of the equipment and
supplies that will be donated to the GOP.
Normally, these aircraft unload at the Paraguayan Air Force
terminal. All U.S. military aircraft that land in Paraguay
obtain permission to do so from DINAC, the GOP civil air
authority, and do so in close coordination with the
Paraguayan Air Force.
Q. How long have these flights been occurring?
A. This type of routine air cargo service regularly serves
American embassies around the world. These flights have come
to Paraguay regularly for more than 60 years. In fact, they
used to be much more frequent, but have decreased
significantly as the Embassy buys more and more products from
the local economy.
CASON
SIPDIS
SIPDIS
E.O. 12958: DECL: 03/30/2027
TAGS: PREL PGOV PTER MARR MASS SNAR PA
SUBJECT: PARAGUAY SCENESETTER FOR SOUTHCOM COMMANDER
Classified By: POLCOUNS JAMES P. MERZ; Reasons 1.4(b),(d)
1. (C) Admiral Staviridis, Embassy Asuncion warmly welcomes
your visit as an opportunity to promote U.S. interests
focused on strengthening democratic institutions, promoting
sound economic policies and good governance, disrupting
criminal organizations, and combating terrorist financing.
You come at a particularly sensitive time, with President
Duarte weakened and much of the body politic focused on
Presidential Elections scheduled for May 2008. Neighboring
governments -- immediate and more distant -- and segments
within Paraguay routinely call into question important
aspects of our security relationship. Many Paraguayans -
inside and outside the government - however, support closer
U.S. ties, in particular as a political and economic
counterbalance to the influence Brazil wields over Paraguay
and in response to concern about growing cooperation between
Venzuela-Bolivia, including in the military sphere.
2. (SBU) An overview of the current situation in Paraguay
follows, highlighting key issues which may come up in your
scheduled meetings.
Your Program in Asuncion
--------------
3. (U) Post is glad to have this opportunity to host your
visit to Paraguay. You will meet with the Ambassador first
and then with the Country Team to obtain brief on the overall
situation in Paraguay with a particular focus on CT issues.
We have arranged for you to visit both the Minister of
Defense, Dr. Roberto Gonzalez Segovia, and the Commander of
Armed Forces, GEN Bernardino Soto Estigarribia, and his
service chiefs. Your meetings with them afford the
opportunity to strengthen existing rapport, and to discuss
ways to advance U.S. bilateral security cooperation,
particularly military exercises. As this will be your first
visit to Paraguay, we believe that you will find your stay to
be both enjoyable and fruitful.
The Political Scene
4. (C) Your visit comes four years into the presidency of
Nicanor Duarte Frutos. In that time, Duarte has taken steps
to deal with a pressing fiscal crisis, revive the economy,
and fight corruption. In the last year, however, political
support for Duarte has sagged with polls indicating the
general population is not satisfied his government has taken
adequate measures to create jobs, improve the economy and
tackle corruption. Duarte has also taken a shift toward the
left, criticizing President Bush and stressing greater
appreciation for Venezuelan President Chavez, and his
"commitment" to the region. Duarte continues to seek a
Constitutional amendment allowing for his reelection. Much
of the population as well as the opposition parties and some
within the Colorado Party (who seek to back other candidates)
are dead-set against reelection. Duarte's reelection
prospects, while remote, are not dead. Meanwhile, he is
looking to identify a potential presidential candidate to
succeed him, favoring his Education Minister Blanca Ovelar
over Vice President Castiglioni should the amendment not come
to fruition. Vice President Luis Castiglioni formally
declared his intention to seek the Colorado nomination March
28 further complicating the messy political scene. Leftist
priest Fernando Lugo represents the opposition's leading
candidate though he faces a potential legal challenge himself
as the Constitution bars "ministers" from seeking political
office.
Paraguay,s Public Security Challenges
5. (C) Twelve members of the Free Fatherland Party (PPL) - a
far-left, rural-based political movement - were found guilty
in 2006 for the kidnapping and murder of the daughter of
former president Raul Cubas. The body of Cecilia Cubas was
discovered in February 2005. Argentina, Brazil and Bolivia
have yet to estradite others implicated who took refuge
abroad. Evidence ties the PPL to the Revolutionary Armed
Forces of Colombia (FARC). The Cubas kidnapping has proven
to be one in a series of events over recent years to suggest
the emergence of a political movement bent on provoking
instability through violence. A culture of distrust,
allowing for little inter-institutional cooperation, hampers
the ability of Paraguay's law enforcement community and
military to tackle rising concerns about public security;
Paraguay,s National Police are widely disparaged by the
general population as incompetent and corrupt, and the police
and military are rivals, not partners. The Cubas killing and
clear evidence of FARC involvement shocked Paraguay,s
leaders and population. Increased cooperation with Colombia
and the U.S. and the realization of the need for better
intelligence and other security measures were positive, if
ironic, results of the Cubas case. Concern over the PPL has
died down since the conviction while, internal security
concerns have risen. Of late, major robberies and
kidnappings of an apparently criminal nature, including
alleged terrorist financier Mohammad Barakat, are on the
rise, particularly in Ciudad del Este.
Reforming the Economy, But Growth Insufficient
6. (U) Paraguay,s economy relies heavily on agriculture. It
features bloated but weak state institutions and the heavy
involvement of state-owned enterprises. There is
considerable activity involving the trading of imported
legitimate goods, contraband and counterfeit products, most
of which are destined for Brazil or Argentina. President
Duarte took office in 2003 inheriting a weak economy and
promising to attack widespread corruption and reform the
economy. He named a non-partisan, technocratic economic
cabinet and has supported their efforts. On a macroeconomic
level, Paraguay,s performance has been strong: economic
growth reached 4 percent in 2006 and inflation was 12.5
percent. However, whereas the government succeeded early on
in getting some significant economic reform laws through
Congress, progress over the three years has been slow. The
confrontation between Congress and the Executive has all but
frozen any reform efforts that require legislation; the
Congress has rejected several loans (from the IDB, EU and
Japan) and suspended for one year the application of the
previously authorized personal income tax. For Paraguay to
escape from the poverty affecting roughly half of its
population, the country needs to increase productivity by
attracting capital and raising annual growth rates to at
least 5 or 6 percent -- and sustaining them there. Success
will require the government to stay the course on
macroeconomic stability and undertake deeper structural
reforms. But as the President now gears up for a bruising
2007 fight over re-election, there is no sign of the
political will.
International Crime and Counter Terrorism
7. (U) The Tri-Border Area (TBA),the region of Paraguay that
meets Brazil and Argentina near the city of Ciudad del Este,
is a primary USG concern. The area, with its loose borders
and lax controls, is a a hub for transnational criminal
activity including drug trafficking, trafficking in persons,
arms trafficking, intellectual piracy, document forgery, and
contraband. Brazil has tightened its border controls forcing
the trafficking of contraband downward, however, the evidence
significant money continues to flow out of CDE to the Middle
East. Brazil has begun erecting a wall around its customs
facility on the border that has raised some controversy.
8.(SBU)Paraguay is widely regarded as the weakest link in
combating the wide range of illicit activities that occur in
the TBA. Corruption at multiple levels undercuts serious law
enforcement efforts. Nevertheless, Paraguay has taken
serious steps to address its institutional deficiencies by
creating special units, principally in Customs and the
Ministry of Industry and Commerce (MIC) to investigate more
effectively IPR violations and customs fraud. The MIC,s
Specialized Technical Unit (UTE) in particular has made a
number of significant seizures of counterfeit products.
These units receive significant assistance from the USG in
the form of INL funds or the MCC Threshold Program.
9. (SBU) Paraguay,s Anti-Money Laundering Secretariat
(SEPRELAD) has also received technical assistance and
equipment from the U.S. Paraguay has subscribed to all 12 UN
counter-terror conventions but its anti-money laundering law
is lacking in that it does not allow for prosecution of money
laundering as an autonomous crime. Nor does Paraguay yet
have counter terrorism legislation. Paraguay seeks to meet
its international obligations through provisions in a series
of three bills. UNCTC Executive Ruperez approved of the
draft legislation text when he visited in July 2007. The
first bill establishing money laundering and terrorist
financing as crimes and setting out the consequent penalties
was delivered to Congress this October. The bill on
procedural tools for the prosecution of these crimes remains
under arduous debate before a Legislative Reform Commission
and could face much of the same when it is submitted to
Congress. The law establishing SEPRELAD,s regulatory
authorities has been drafted but not yet submitted to
Congress pending movement on the first bill. Paraguay,s
SEPRELAD could face suspension from the Egmont Group should
this bill not be adopted before June. In December, Treasury
designated nine individuals and two entities from the TBA for
involvement in terrorist financing. Publicly, Paraguay
subscribes to the Brazilian line that terrorist financing is
not a problem. However, on a constructive note, in the
absence of an effective money laundering law, Paraguay has
prosecuted three alleged Hizballah terrorist financiers for
tax evasion.
10. (SBU) Paraguay is a significant transit point for the
transportation of cocaine and other narcotics by air from
Colombia and Bolivia to Brazil. Much of the northwestern
part of the country is barren and uninhabited, and the GOP
has difficulties in enforcing the law due to geography and
the political (and judicial) power some drug traffickers
wield. Paraguay,s Anti-Drug Secretariat (SENAD),the
single-most effective law enforcement body in Paraguay,
coordinates GOP interdiction efforts, with significant
assistance from the DEA and support from US Special Forces
advisors.
11. (SBU) In 2004, Paraguay and Brazil collaborated in a
joint operation, with DEA assistance that produced an
historic seizure of over 260 kilograms of cocaine and the
arrest of Brazilian drug kingpin Ivan Carlos Mendes Mesquita,
wanted in the U.S. on drug trafficking charges. Paraguay
cooperated with the USG extradition request and Mendes
Mesquita was taken into U.S. custody in 2005, a dramatic and
unprecedented step. Working closely with the U.S., SENAD has
effectively targeted Brazilian trafficking groups that are
run mostly out of Pedro Juan Caballero (PJC) on Paraguay,s
northern border with Brazil. Within the past year, SENAD has
made a number of significant arms seizures with evidence
signaling links to Brazil,s PCC and Colombia,s FARC. While
these weapons were seized in PJC and Asuncion, arms and drug
trafficking also occur out of CDE. Presently, SENAD is
hard-pressed to meet challenges in that region for lack of
resources (its national annual budget is just $2 million).
SENAD will inaugurate a helipad in PJC on April 11, the
second phase of State Department funded ($500,000) project,
creating a SENAD facility in the region and a potential base
from which to launch operations. SENAD Director Ibarra will
appeal to you for SOUTHCOM assistance to fund fuel and
helicopter maintenance.
Regional Concerns
12. (SBU) The political situation in Bolivia is on the
political radar screen in Paraguay but not in a major way.
Some commentators have conveyed concern that instability in
Bolivia could lend itself to a higher flow of drugs or other
illicit activity from that country. Some Paraguayan military
officials have conveyed to me a concern about lingering
irredentist claims within some segments of the Bolivian
military to territory in the Chaco -- a vast region in
Western Paraguay that borders Bolivia and served as the site
of a war with Paraguay in the 1930s -- that could stir
controversy and tension should Bolivia suffer an extended
period of instability. Reported discoveries of potential
commercially significant natural gas resources near the
Bolivian border could add fuel to such concerns. Lastly,
Brazil and Paraguay rely on Bolivian infrastructure for land
traffic extending to the Pacific coast that could be
jeopardized in the event of instability in Bolivia. Some
Bolivian commentators, including political officials, have
signaled concern that the U.S. sought to establish a military
base in the Chaco for the purpose of monitoring activities in
Bolivia or attempting to control energy resources in the
Bolivian and Paraguayan Chaco region. All things considered,
however, Bolivia does not figure large in Paraguay's foreign
relations -- or vice versa -- and most Paraguayan decision
makers devote fleeting attention to developments in Bolivia.
13. (SBU) Despite preoccupation with close-to-home terrorism
issues including kidnappings, local violent radicals, the
FARC, and fund-raising for Hezbollah, Paraguay is reluctant
to take a lead in the war on terrorism beyond its borders.
This is due to pressure from Brazil as well as domestic
concerns that an aggressive anti-terrorism policy (e.g., vis
a vis the Middle East) will draw terrorist reprisals. In
addition, memories of abuses under the Stroessner
dictatorship (1954-1989) still cast a long shadow. In 2004,
President Duarte received JCS Chairman General Myers but then
made a public show of announcing that Paraguay would not send
a contingent to Iraq despite having volunteered to do so to
President Bush a year earlier. Given false allegations the
U.S. wants to establish a military base in Paraguay, we
recommend tailoring any public remarks about Paraguay,s role
in the GWOT in a way that will not lend fuel to these false
claims. It is perhaps best to focus interlocutors on
attacking corruption and the facilitation of international
crime as a way to improve Paraguay,s international image.
14. (C) The political situation in Bolivia and the activities
of President Evo Morales are currently at the center of the
political radar screen in Paraguay. Some Paraguayans have
conveyed to us a concern about lingering irredentist claims
within some segments of the Bolivian military to territory in
the Chaco - a vast region in Western Paraguay that borders
Bolivia and served as the site of a war with Paraguay in the
1930s - that could stir controversy and tension should
Bolivia suffer an extended period of instability. Brazil and
Paraguay rely on Bolivian infrastructure for land traffic
extending to the Pacific coast that could be jeopardized in
the event of instability in Bolivia. Late last year, some
Bolivian commentators, including political officials, have
signaled concern that the U.S. sought to establish a military
base in the Chaco for the purpose of monitoring activities in
Bolivia or attempting to control energy resources in the
Bolivian and Paraguayan Chaco region. Paraguay and Bolivia
relations have cooled over the Venezuelan and Bolivian
Military Agreement announced last fall. Some within the
Paraguayan government, civil society and the media have
expressed the desire for Paraguay to enter into a bilateral
security agreement with the United States. A small circle of
senior government officials is currently considering a
USG-proposed 5-year SOFA granting A&T privileges and
immunities for US military personnel but the main obstacle
seems to be President Duarte.
15. (U) Paraguay and Bolivia signed a security/defense
agreement at the end of March, which included a joint
communique on dengue fever. The agreement aims to improve
communication and information exchange as a way to address as
a way to address mutual suspicions. It also details plans for
the 6th High Military Command Meeting in Asuncion on
September 10-12 to increase military-to-military exchanges
and ties.
U.S. Activities
16. (SBU) U.S. activities in Paraguay are focused on
strengthening democratic institutions, promoting sound
economic policies and good governance, disrupting criminal
organizations, and combating terrorist financing. Post
maintains bilateral assistance programs dealing with
combating narcotics trafficking, money laundering,
intellectual property violations, and trafficking in persons.
A Department of Justice Resident Legal Advisor and advisors
from Treasury,s Office of Technical Assistance have worked
quietly behind the scenes over the last three years to assist
the Paraguayan Government in developing appropriate money
laundering and counter-terror legislation. In the wake of the
Cubas kidnapping, Vice President Castiglioni traveled to the
U.S. for meetings with VP Cheney, former SECDEF Rumsfeld, and
other key officials to discuss a comprehensive approach to
Paraguay,s security challenges, including a high-level
seminar sponsored by the Center for Hemispheric Defense
Studies (CHDS) that was held in September 2005. Former
SECDEF Rumsfeld visited Paraguay in August 2005. At the end
of 2006, CHDS followed-up with comprehensive meetings on
transformation and reformation of the military. Paraguay has
expressed interest in acquiring technical assistance in
development of its National Security Strategy and National
Defense Plan. USAID and the Peace Corps also have programs
in the country. Paraguay began to implement a USD 35 million
Millennium Challenge Account Threshold Program in May 2006;
its poor historical record on corruption was the major reason
it did not qualify for full participation in the program.
The Threshold Program focuses on combating impunity and
informality.
18. (C) Notwithstanding, President Duarte's decision last
October not to extend SOFA protections to U.S. military
personnel, U.S. military cooperation with Paraguay has
continued, albeit under a lower profile. While MEDRETES have
been suspended for the time being, but teams of Special
Forces advisors, obstensibly unarmed since the Senate has not
approved the entry of "troops" as required by the
Constitution, are scheduled to interface with their
Paraguayan counterparts on several different occasions
throughout the year. A team of 13 entered Paraguay in late
March and is scheduled to remain for three months. This
subject is sensitive and we have not yet spoken to it in
public. We continue to negotiate the terms of a new SOFA but
are not optimistic about prospects for progress in before May
2008 elections. Separately, we are hopeful about concluding
a 505 Assurance Agreement with Paraguayan through an exchange
of notes with the Foreign Ministry the week of your visit.
This agreement will enable us to proceed with disbursement of
$1.1 million for GPOI funds. We are also providing Paraguay
with some $3.5 million in 1208 funds for weapons and other
equipment.
The Military's Mission
19. (SBU) Paraguay's military is a small force struggling to
redefine its mission notwithstanding insufficient funding and
intermittant scandals. The Army is the largest of the three
services (6,000),followed by the Navy (2,000) and Air Force
(1,200). The Navy has a law enforcement mission on Paraguay's
rivers. The military's primary mission is to protect
Paraguay,s territorial integrity, defend the legitimate
authorities in accordance with the Constitution, and
cooperate in civil defense. It does not have a lead role in
counter drug operations; however, the military provides a
specialized tactical unit to support SENAD. The military's
Special Forces unit is in the process of organizing a
company-size counterterrorism unit, and the Presidential
Guard Unit has a specialized counterterrorist platoon. More
recently, Paraguay has attempted to increase its presence in
peacekeeping operations. Brazil is supporting Paraguay's
deployment of 33 personnel to Haiti.
20. (U) Military infrastructure and equipment is old,
obsolete and in desperate need of repair/replacement.
Paraguay,s defense budget for 2007 represents approximately
1.9 percent of the national budget or USD 72M. Ninety
percent of the budget is used to pay salaries and 5 percent
is used for sustaining conscripts, leaving only 5 percent for
operations, maintenance and training. Budget problems are
not expected to go away in the near future due to lack of
strong support in congress and lingering memories of
Paraguay's 35-year dictatorship among some politicians.
21. (U) Despite the above-noted challenges, the military has
remained subordinate to civilian authority. When called, it
has supported law enforcement activities, public health
campaigns and provided transportation assistance for farmers
to bring their products to market. The military is still
seen as the first to be called whenever there is a "crisis,"
and many Paraguayans feel "safer" when the military is out on
the streets with the police. The President called upon the
military to support the police in November 2004 in the wake
of the Cubas kidnapping and ensuing sense of insecurity;
military remains on the streets today. The role of the
Presidential Guard and its former leader, Col. Galeano, had
created controversy. With its own armor, artillery and other
material, and better trained troops, it is the strongest unit
in country and acts independently. The new commandant of the
Presidential Guard is Lt. Col. Jose Casaccia.
Strong Record of Military Cooperation
22. (U) Post's Office of Defense Cooperation (ODC) has
developed a robust JCET/CNT program, second to only that of
Colombia in the region, and implemented the Counter Terrorism
Fellowship Program contributing significantly toward
establishment of host nation CT capability, including
designation and creation of a Paraguayan Tier 1 unit.
Funding from the Enhanced International Peacekeeping
Cooperation (EIPC) program has facilitated the training of
over 1,081 observers and peacekeepers and the deployment of
approximately 101 Paraguayans in support of peacekeeping
operations in this hemisphere and Africa. Separately, ODC
has also launched an outreach program, leveraging the State
Partnership Program, designed to encourage the military to
build institutional links with legislators in part through
visits by Paraguayan Congressmen as well as Flag officers
from the Joint Staff and Ministry of Defense with their
counterparts in the U.S. The partnership with the
Massachusetts National Guard is robust; the MANG designation
of a full time TCA coordinator from MANG has greatly promoted
this lash up. These visits have generated greater
appreciation for the value of military cooperation.
Article 98/Immunities
23. (SBU) We do not have an Article 98 agreement with
Paraguay. Last year, the MFA formally informed us that it
was not prepared to sign an agreement with.
The Impact of Your Visit
24. (U) You are unlikely to encounter the press as
jounalists generally do not stake out the Ministry of Defense
where your two most important meetings will take place.
Should you encounter press, it is worth noting Paraguayan
journalists are generally friendly people. Even if you have
no time, it is better to stop and answer a question or two
than to refuse questions. If you refuse, then it becomes a
case of offended reporters claiming "secret meetings."
Some anodyne talking points you might consider in the even
press does find you and asks questions:
Purpose of visit
-- I assumed command of SouthCom last October. It is
customary and traditional for newly-appointed SouthCom
Commanders to make courtesy visits with counterparts in the
region.
-- This is an initial visit to Paraguay to meet key civilian
and military leaders of a valued friend.
-- (important to note) Paraguay is my first stop on this
trip. From here, I travel to Argentina where I will meet
with Argentine counterparts.
Rumors of a base
-- Reports of the basing of U.S. troops are without any basis
in fact.
-- The US Government has no interest in basing troops in
Paraguay.
Guarani aquifer (rumors that the U.S. wants to steal
Paraguay's supply of fresh water)
-- I have heard of these rumors and they are without basis in
fact.
-- The U.S. has access to adequate water supplies. In the
unlikely event of a crisis, there are sources much closer and
more cost-effective. (tongue in cheek) Bringing the water by
air or a pipeline across the continent of South America are
not realistic options.
International Crime and Counter-terrorism
-- As clearly outlined in the U.S. report on global
terrorism, we believe the activities in the Tri-Border Area
are basically fundraising and financing) not operational in
nature.
-- We rely on the authorities in the countries involved to
provide the legal structure to allow the investigation,
arrest, and prosecution of persons involved in such
activities.
-- We are pleased by Paraguay's active cooperation in the
fight against terrorism. It has taken important steps to
counter this grave problem and was instrumental in helping
strengthen regional cooperation with the U.S. (through the "3
plus 1" mechanism).
But where is your proof that Paraguay funds terrorists?
-- We never said that "Paraguay" funds terrorists, but rather
individuals in Paraguay (specifically in the Tri-Border Area)
fund organizations engaged in terrorist activities.
-- President Duarte mentioned the threat from terrorist
financing in his 2005 annual message to Congress
-- Illicit activity, particularly along the tri-Border,
fosters corruption, discourages investment, inhibits economic
development, and creates a milieu favorable to money
launderers and terrorist financiers.
-- In recent years, Paraguay has convicted individuals for
tax evasion who have also been implicated in laundering money
to terrorist groups.
-- It is vital Paraguay continue to prosecute and convict
those implicated in illicit activity, including money
laundering and terrorist financing.
Anti-drug effort
-- Paraguay is making an important effort against drug
trafficking, despite limited resources
-- We are confident there will be continued good performance
in this area, which will benefit the Paraguayan people, as
well as the region at large.
Q. What will SOUTHCOM be providing Paraguay to meet its
security challenges? Can you give us radars and helicopters?
-- The U.S. has provided Paraguay millions of dollars in
funds to assist Paraguay in combating narcotics trafficking,
money laundering, trafficking in persons, and intellectual
property rights piracy.
-- Those funds support training for judges, prosecutors, and
police, purchase of equipment, and conduct of operations.
-- Since 1987, the U.S. has donated over USD 6.6 million to
assist Paraguay's law enforcement efforts.
Q. What will SOUTHCOM do to help Paraguay deal with the
threat posed by the FARC?
-- Evidence of FARC ties to the Cubas kidnapping is very
disturbing. The FARC has demonstrated its readiness to
commit any number of atrocities, including kidnappings and
other forms of terrorism, to advance its objectives.
-- The U.S. recognizes Paraguay's commitment to address this
problem. We are exploring ways we can support Paraguay,
particularly in the law enforcement field, with appropriate
training.
25. (SBU) For your background, we also provide press
guidance prepared to deal more in depth with the senstive
issue of ongoing military cooperation with Paraguay absent an
agreement providing protections and Senate approval for the
entry of "troops."
Q. Now that the bilateral agreement allowing MEDRETEs and
joint military training exercises (18-month agreement, June
2005-December 2006) has expired, are there any U.S. troops in
Paraguay? Are there any joint military exercises or MEDRETEs
underway, or planned?
A. Absent Government of Paraguay approval, there are no
MEDRETES, and there are no joint military exercises scheduled
for 2007.
However, a variety of other military to military cooperation
activities continue on a professional and technical level
with the Paraguayan Armed Forces, much as we have been doing
for more than 60 years.
Q. What are these activities that you mentioned?
A. The United States military maintains close cooperation
with many countries through out the world, and the
relationship we enjoy with Paraguay is not unusual.
For example, the United States and Paraguay are working
together to develop peacekeeping operation abilities. The
U.S. is supportive of the Government of Paraguay,s efforts
to deploy peace keeping units or observers to Haiti, Cyprus,
and other locations around the world in UNITED NATIONS
peacekeeping operations.
We also support GOP efforts to improve the Paraguayan
military,s capability in responding to disasters and in
other types of humanitarian efforts. Unfortunately, the
Paraguayan government has not authorized any MEDRETEs, the
mobile medical clinics that are very important in supporting
humanitarian efforts.
In close coordination and cooperation with the Government of
Paraguay, we also conduct a variety of seminars, conferences,
orientation visits, advisory and instructional activities for
the Armed Forces of Paraguay.
For example, there are subject matter expert exchanges in
stopping illegal narcotics and arms trafficking, responding
to terrorism, and protecting the sovereignty of the country.
We have also provided technical medical analysis regarding
how to control dengue fever.
All these activities are coordinated through the Embassy,s
Office of Defense Cooperation (ODC) in conjunction with, and
at the request of, the Government of Paraguay.
For more details on the nature of this cooperation we refer
you to the Paraguayan Military Forces.
Q. Do the military personnel working in the ODC have
immunity?
No. Absent an agreement, participants in military
cooperation activities presently do not enjoy protections.
Q. How are these efforts different from the other military
activities that were executed last year under the previous
agreement?
Last Year: The Joint Combined Exercises for Training
(JCETs),MEDRETEs and Fuerzas Comando Exercises conducted
last year were designed for the training of both U.S. forces
and the Paraguayan armed forces, side-by-side. Military
personnel from both nations learned from each other and
trained together.
The MEDRETES, for example, provided an opportunity for U.S.
and Paraguayan medical personnel to work side by side to
provide medical care, dental and veterinary care to citizens
in remote parts of the country where doctors and medical
personnel are often not available.
The military units here last year for non-MEDRETE exercises
used their own weapons and equipment while training with the
Paraguayan military.
All exercises had been coordinated and approved by the GOP
and the Paraguayan Senate as is stipulated in the Paraguayan
Constitution.
Now: The military personnel that are in country today are
technical experts and advisors who enter Paraguay unarmed and
work with various branches of the Paraguayan armed forces or
other Government of Paraguay offices. (If pressed: For
example, SENAD).
Q. How many U.S. military personnel are there in Paraguay
right now?
A. US military personnel that come to Paraguay to work with
the US Embassy enter with the full approval of the Government
of Paraguay organization with which they work.
There are many different types of military personnel that
support the various US Embassy offices and as a general rule
we do not like to get into specifics on numbers. The
Ministry of Foreign Affairs has our list of accredited
personnel.
If pressed for an actual number:
In a general terms, an approximate number of U.S. military
persons here at any one point would be about two dozen (24
people, or so) in a variety of different assignments,
including office support workers inside the Embassy.
Q. How long will this military cooperation continue?
We hope that the GOP will continue to want and support our
military to military cooperation efforts because or our long
standing history of more than 60 years. We feel that
cooperation is beneficial to both our militaries and
countries.
As we have seen this year, the level of cooperation is an
ongoing project between our two countries subject to the
approval of the sovereign nation of Paraguay.
The ambassador has said that we are continuing to negotiate
with the GOP in the hopes that Paraguayans can benefit from
activities such as MEDRETEs and engineering exercises.
FACT:
In the most recent period of MEDRETEs, from July 2005 to
December 2006, Paraguayan patients treated by doctors and
receiving free medicines totalled 56,484 patients.
Veterinarians treated 2,533 animals. (source: ODC)
Q. Where are the US military personnel located?
A. Because many of these military personnel are here at the
request of the Paraguayan military, we refer you to the
Military Forces Headquarters regarding these specific
questions.
Q. The U.S. has provided military equipment, medicines, and
other supplies to the Paraguayan Government in the past,
during the JCETs, MEDRETEs, etc. Will the current US efforts
continue bringing military equipment and supplies as part of
our programs?
A. Yes. Our military-to-military cooperation programs
provide for the donation of some equipment and training.
For specific info, we refer you to the FFAA.
If pressed:
In general terms, the United States is currently providing
approximately USD two million dollars of cooperative
assistance to the FFAA, including:
-- $1.1 million for Peace Keeping equipment and training,
-- $250,000 for professional and technical military education
and training (IMET),
-- $250,000 for professional and technical military training
in CT courses,
-- approximately $500,000 for seminars, conferences, subject
matter expert exchanges, and orientation visits.)
Q. Is there information on the C-17s and other military cargo
planes that occasionally land at Asuncion,s airport?
A. C-17s and other cargo aircraft stop briefly in Asuncion on
routine flights that usually bring some American foods,
office equipment, and personal household goods for the use of
personnel assigned to various U.S. Embassies in the region.
At times the flights also bring in some of the equipment and
supplies that will be donated to the GOP.
Normally, these aircraft unload at the Paraguayan Air Force
terminal. All U.S. military aircraft that land in Paraguay
obtain permission to do so from DINAC, the GOP civil air
authority, and do so in close coordination with the
Paraguayan Air Force.
Q. How long have these flights been occurring?
A. This type of routine air cargo service regularly serves
American embassies around the world. These flights have come
to Paraguay regularly for more than 60 years. In fact, they
used to be much more frequent, but have decreased
significantly as the Embassy buys more and more products from
the local economy.
CASON