NEW PARAGUAYAN CONGRESS GETS DOWN TO BUSINESS

C O N F I D E N T I A L ASUNCION 000475 SIPDIS STATE FOR WHA/BSC KBEAMER E.O. 12958: DECL: 12/31/2033 TAGS: PGOV PA SUBJECT: NEW PARAGUAYAN CONGRESS GETS DOWN TO BUSINESS REF: ASUNCION 415 Classified By: A/DCM John Beed for reasons 1.4 (b) and (d). -------------- SUMMARY -------------- ¶1. (C) The new Paraguayan Congress took office June 30 and elected its leadership. President-elect Fernando Lugo's Patriotic Alliance for Change (APC) and Lino Oviedo's UNACE Party announced June 30 a political alliance which led to the election of UNACE Senator Enrique Gonzalez Quintana as Senate president and Liberal Party Deputy Salim Buzarquis as president of the Chamber of Deputies. The Senate's first day in session featured suspended Colorado Senator Juan Carlos Galaverna's brief re-appearance to take the oath of office and Progressive Democratic Party senator-elect Rafael Filizzola's resignation. The new Chamber of Deputies experienced its own share of drama with a walkout by members of the Beloved Fatherland Party. The fate of President Duarte's bid to become a senator likely rests in the hands of the APC-UNACE alliance. The new Paraguayan Congress' first day set a somewhat contentious tone for its five-year term and provided early indications of a possible APC-UNACE partnership. END SUMMARY. -------------- CONGRESS SWEARS IN AND CHOOSES LEADERSHIP -------------- ¶2. (U) The new Paraguayan Congress took office June 30 and elected its leadership. The Patriotic Alliance for Change (APC) and National Union of Ethical Citizens Party (UNACE) announced immediately prior to Congress' first session a political alliance that captured most key Congressional leadership positions. Pursuant to that alliance, the Senate elected UNACE Enrique Gonzalez Quintana as Senate president. The Senate elected Liberal Party (PLRA) Senator Oscar Denis Sanchez first vice president and Tekojoja Movement Senator Sixto Pereira second vice president. The Chamber of Deputies elected Liberal Deputy Salim Buzarquis president with Colorado Deputy Mario "Baby" Soto Estigarribia as first vice president. (NOTE: "Baby" Soto is the brother of Paraguayan Military Forces Commander General Bernardino Soto Estigarribia. END NOTE.) The Senate elected UNACE Deputy Ariel Oviedo -- son of general and UNACE presidential candidate Lino Oviedo -- second vice president. ¶3. (U) The APC-UNACE bloc effectively shut out both the Beloved Fatherland Party (PPQ) and former vice president Luis Castiglioni's Colorado Vanguard Movement, which unsuccessfully attempted to broker an alliance with the APC. The APC and UNACE appear to have made a deal to swap votes with eight pro-Duarte Colorados to put Duarte ally "Baby" Soto Estigarribia in the first vice presidency of the Chamber of Deputies in exchange for Colorado support for Senate President Gonzalez Quintana. -------------- EVENTFUL DAY IN CONGRESS -------------- ¶4. (U) The Senate's first day in session featured suspended Colorado Senator Juan Carlos Galaverna's brief re-appearance to take the oath of office and Progressive Democratic Party senator-elect Rafael Filizzola's resignation. Galaverna, whom the Senate suspended for 60 days for committing fraud during the 1992 Colorado primary, swore in and then left in light of his suspension. (NOTE: Colorado Gregorio Areco Ruiz temporarily assumed Galaverna's seat. Galaverna will return to the Senate once his suspension ends July 21 unless the Senate acts to strip him of political immunity and impeach him. END NOTE.) Progressive Democratic Party (PDP) senator-elect Rafael Filizzola resigned immediately prior to the first Senate session to become Lugo's interior minister, and PDP alternate Alberto Grillon took his seat. ¶5. (U) The new Chamber experienced its own share of drama with a walkout by members of the Beloved Fatherland Party (PPQ). After the Chamber passed over PPQ Deputy Sebastian Acha for a leadership position, the Chamber's four PPQ deputies walked out in protest, claiming that APC deputies reneged on their alleged agreement to support Acha's candidacy. New Chamber President Buzarquis denied such an agreement. -------------- DUARTE'S SENATE BID IN ALLIANCE'S HANDS -------------- ¶6. (U) The fate of President Duarte's bid to become a senator likely rests in the hands of the APC and UNACE. The Senate provisionally swore in Colorado Jorge Cespedes as Duarte's replacement until it resolves President Duarte's resignation and inclusion in the Senate (reftel). Although President-elect Lugo and UNACE both support Duarte's ability to take his Senate seat, the new Senate must decide whether to accept Duarte's resignation. Unless UNACE or Lugo brokers a deal on behalf of Duarte, Congress may choose to do nothing -- and let Cespedes keep Duarte's seat indefinitely. -------------- COMMENT -------------- ¶7. (C) The new Paraguayan Congress' first day set a somewhat contentious tone for its five-year term and provided early indications of a possible APC-UNACE partnership. Lino Oviedo has said his UNACE Party will define its position issue-by-issue, but political interests will likely be more important. Given Lugo's ambitious reform agenda, the APC will need Oviedo, or the support of another significant political party, if it wants to make any progress. END COMMENT. Please visit us at http://www.state.sgov.gov/p/wha/asuncion Cason