PARAGUAYAN RESERVATIONS REGARDING SOUTH AMERICAN

C O N F I D E N T I A L ASUNCION 000314 SIPDIS STATE FOR WHA/BSC KBEAMER E.O. 12958: DECL: 05/13/2028 TAGS: MARR PREL MASS PA SUBJECT: PARAGUAYAN RESERVATIONS REGARDING SOUTH AMERICAN DEFENSE COUNCIL Classified By: DCM Michael J. Fitzpatrick for reasons 1.4 (b) and (d). ¶1. (C) The Paraguayan government gave its initial, albeit qualified, support for the creation of the South American Defense Council during a May 6 visit by Brazilian Defense Minister Nelson Jobim. Military sources told DATT May 6 that Paraguay has reservations about the Defense Council, and specifically, concerns that it could limit Paraguay's bilateral defense cooperation with the United States and Europe. The same military contacts worried that the Council would give preferential treatment to countries with a well-established defense industrial base (like Brazil),since it would assign countries defense items to produce for sale to other Council members. (NOTE: Paraguay does not currently produce any defense items. END NOTE). The MFA's Western Hemisphere director told PolCouns May 7 that the main purpose of Jobim's visit was to garner support for the proposal in advance of the South American Union of Nations (Unasur) Summit scheduled for May 23 in Brasilia. She said that Paraguay would probably be reluctant to define its position on the Council since it is in transition to a new government. ¶2. (SBU) Jobim also discussed other bilateral issues with President Duarte, president-elect Fernando Lugo, Foreign Minister Ramirez, and Defense Minister Mora, including recent Brazilian military activity near the Paraguayan border. Jobim called Brazilian military exercises at the Paraguayan border "routine exercises by the Western Military Command" and stated that they are not "signs of any problems." ¶3. (C) COMMENT: Paraguay's lukewarm support for the Council is likely intended to both pacify Brazil and give president-elect Fernando Lugo some room to maneuver on foreign policy in coming months. END COMMENT. Please visit us at http://www.state.sgov.gov/p/wha/asuncion Cason