PARAGUAY POLITICAL AND ECONOMIC UPDATE FEBRUARY 3

UNCLAS ASUNCION 000090

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: N/A
TAGS: PGOV PHUM PREL PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE FEBRUARY 3
- 9, 2007 (CORRECTED COPY)

REF: ASUNCION 0057


1. (U) SUMMARY:

-- Dengue Fever Update
-- MCA Helps Establish Customs Cooperation
-- Senator Against Venezuelan Mercosur Membership

DENGUE FEVER UPDATE


2. (U) Paraguay now has some 1,800 cases of Dengue fever,
including 12 of the deadly hemorrhagic type, since early
January. The outbreak is concentrated primarily in Asuncion
and surrounding areas. Four people have already died from
Dengue shock syndrome, and the Ministry of Health appears to
be stretched, if not overwhelmed, by the increased demand for
public health services. The January 29 government "day off"
for public employees and campaign to raise general population
awareness about Dengue was poorly organized. The Health
Ministry acknowledged that just 55 percent of the houses in
Asuncion and Central department were visited. At an
extraordinary National Health Council meeting on January 31
to address the dengue situation, Health Minister Oscar
Martinez resisted several calls to declare a national
emergency. While generally dismissing dire earlier
projections (some had reported that Paraguay could see up to
600,000 dengue cases this year),the head of the Paraguayan
health surveillance department projected that we can expect
to see new dengue cases into April. (reftel)

MCA HELPS ESTABLISH CUSTOMS COOPERATION


3. (U) Attorney General Ruben Candia Amarilla and Customs
Director Margarita Diaz de Vivar signed an historic agreement
establishing clear lines of cooperation and action between
the two institutions on enforcement and the seizure of
contraband goods. The president of the National Congress,
Senator Gonzalez Quintana, the President,s economic advisor
Minister Carlos Walde, the Ambassador, the USAID director,
and representatives from the national police, military, and
other key GOP departments, were present to mark this
important step - catalyzed and supported by the USAID-managed
MCA Threshold program. The new agreement is designed to help
the GOP significantly improve interdiction and prosecution
efforts to combat illegal commerce and smuggling.

SENATOR AGAINST VENEZUELAN MERCOSUR MEMBERSHIP


4. (U) Senator Alfredo Luis Jaeggli, of the Authentic Radical
Liberal Party (PLRA),called for his party and the opposition
bloc to reject the entry of Venezuela as a full member of
Mercosur. Jaeggli said Chavez "is interfering in various
countries in the region where democratic institutions are
very weak and we cannot take the risk of allowing him to do
the same in our country." (COMMENT: This all comes on the
heals of a series of events starting with Chavez' attack on
VP Castiglioni during the Mercosur Summit. Paraguayan
leaders have closed ranks and become very cautious of
Venezuelan intentions in the region. Other political party
leaders have called for investigations against the Venezuelan
Ambassador for "meddling" and La Nacion newspaper went a step
further and urged the government to expel the Venezuelan
Ambassador. END COMMENT).
CASON