PARAGUAY POLITICAL AND ECONOMIC UPDATE MAY 19-25,

UNCLAS ASUNCION 000435

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 JOSE CARDENAS
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: PGOV PHUM PREL PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE MAY 19-25,
2007

REF: 05 ASUNCION 1047


1. (U) SUMMARY:

-- San Pedro; Concepcion Welcome Ambassador
-- Paraguay free of Foot and Mouth Disease with vaccination
-- IPR Customs Conference held in Asuncion
-- Senate Annuls Land Grab
-- SOCSOUTH Commander Visits Paraguay
-- PolOff Tours Chaco

SAN PEDRO; CONCEPCION WELCOME AMBASSADOR


2. (U) During a visit to the San Pedro and Concepcion
Departments, the Ambassador delivered a National Cancer
Coalition (NCC) donation of 1,000 doses of anti-parasite
medicine to Concepcion Bishop Zacarias Ortiz. Ortiz told the
Ambassador that people were losing confidence in the
government's ability to address socio-economic issues. The
Ambassador also met with Governor Ramonita Mendoza, of
Concepcion, who praised USG support to the Department through
MEDRETE and New Horizons exercises (they want them back!).
Mendoza also mentioned the important and active contribution
made by Peace Corps volunteers and USAID.


3. (U) The Ambassador visited USAID/Paraguay Vende sesame
production sites. Industry producers noted that price is a
big concern for producer associations, particularly in the
San Pedro area. They stated a lack of planning and support
from the government and a desire for more technical
assistance from Paraguay Vende on price and techniques,
diversification, and marketing for their products.

PARAGUAY FREE OF FOOT AND MOUTH DISEASE WITH VACCINATION


4. (U) The World Animal Health Organization (OIE) renewed
Paraguay,s certification as a country free of foot and mouth
(FMD) disease with vaccination at its General Assembly
meeting in Paris on May 22. Paraguay,s beef sector has been
the fastest growing sector of the economy in recent years,
and Paraguay exported USD 418 million worth of beef products
in 2006. The Paraguayan government hopes the renewal of the
status will keep existing markets open and help to open new
ones. Currently over 35 markets are open for Paraguayan
beef. The OIE will continue to closely monitor a 15
kilometer strip around Paraguay given FMD outbreaks in recent
years in border areas of Argentina, Brazil and Bolivia.
Paraguay has applied to USDA for permission to export beef to
the US and technical discussions are ongoing.

IPR CUSTOMS CONFERENCE HELD IN ASUNCION


5. (U) Post hosted an IPR enforcement conference for
tri-border customs officials in Asuncion on May 21 and 22.
The substance of the conference was organized by the US
Patent and Trademark Office (USPTO) which recruited European
Union participation. The EC Customs Attache, the EC Deputy
Chief of Mission from Montevideo and a Spanish customs
official participated. The conference was organized as a
series of roundtable discussions on issues such as risk
assessment, international best practices, and cross-border
cooperation. The Argentine delegation failed to show up but
the Paraguayan and Brazilian delegations participated
enthusiastically. Both delegations expressed a commitment to
combating IPR crime, but emphasized the paucity of resources
available. Both delegations were receptive to additional
training in the future, particularly training aimed at
helping line inspectors identify counterfeit products.

SENATE VOTES ANNUL LAND GRAB


6. (U) The Senate approved a bill, by a 3 vote margin (23 yea
and 20 nay),annulling the expropriation of 52,000 hectares
of the property owned by Victoria S.A., headed by Korean
Reverend Sun Myun Moon, in Puerto Casado. The legislation
also accepted Moon's donation of 30,000 hectares. The


Chamber of Deputies must now vote to approve the donation
before it can be sent to President Duarte. (NOTE: In August
2005, the government expropriated the land claiming that it
was not being productively used. (reftel) If the land is
expropriated the government, by law, must pay the land owner
fair market price for the land - no funds had been identified
to pay for the expropriation which was signed by President
Duarte in September 2005. END NOTE.)

SOCSOUTH COMMANDER VISITS PARAGUAY


7. (U) General Charles Cleveland, SOCSOUTH Commander, visited
Paraguay May 21-23 to inspect the progress of training and
equipping of the Paraguayan Immediate Reaction Detachment,
formerly known as the Counter-Terrorism Unit. Cleveland also
met with Armed Forces Commanding General Bernardino Soto
Estigarribia and Army Commander General Gomez to discuss
future opportunities for training and coordination. Soto and
Gomez expressed their thanks for the support from SOCSOUTH
for renovating the barracks and headquarters of the IRD as
well as the training.

POLOFF TOURS CHACO


8. (U) PolOff travelled to Mariscal Estigarribia, Filadelfia
and Loma Plata, in the Boqueron Department May 21-22 to
discuss political and socio-economic issues with political
officials and local activists. Governor David Sawatsky Funk
told PolOff that the main priorities of his administration
were education, health and sustained community development.
He described the population as nearly 50/50 immigrants to
indigenous (the indigenous work the farms owned by the
largely Mennonite community). Sawatsky noted that meats and
milk are the top industries in Boqueron and his Department
exports more than 40 percent of the countries meat and milk
exports.


9. (U) Wilfried Giesbrecht, President of DesdelChaco (a local
NGO),discussed environmental issues and projects in the
region. He noted that the trafficking of wood products is a
big problem in the region. Giesbrecht stated that he is
working with Argentina and Bolivia on nature protection and
conservation projects. (NOTE: DesdelChaco is a USAID partner.
END NOTE.)





CASON