FOREIGN MINISTER NOMINATION IGNITES CONTROVERSY

S E C R E T ASUNCION 000516

SIPDIS

STATE FOR WHA/BSC KBEAMER, INR ASTEIN, CA/VO/L/C JBRUNSON
AND IMAKLE-WILLIAMS

E.O. 12958: DECL: 07/27/2028
TAGS: PGOV PREL CVIS PA
SUBJECT: FOREIGN MINISTER NOMINATION IGNITES CONTROVERSY

REF: A. 06 STATE 149525

B. ASUNCION 512

Classified By: Ambassador James C. Cason for reasons 1.4 (b) and (d).


1. (SBU) This message contains an action request in paragraph

5.

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SUMMARY
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2. (S) President-elect Fernando Lugo's decision to designate
Paraguayan Ambassador to Lebanon Alejandro Hamed Franco as
his foreign minister July 23 ignited a domestic political
controversy. In 2007, the Public Ministry brought criminal
charges against Hamed, and the MFA opened a separate
investigation against him, for his decision to issue 117
visas to Lebanese nationals without prior written
authorization from the Foreign Ministry. Just before Lugo
named Hamed foreign minister, a judge threw out the criminal
case against him. Hamed's previous U.S. visa was revoked in
September 2006 (ref A). Hamed replaced Lugo's first foreign
minister-designate, Milda Rivarola, who resigned July 10.
Hamed's nomination illicited strong objections from the
Paraguayan Congress. Post is concerned that Hamed illegally
assisted Lebanese foreign nationals, incidentally or
otherwise, who could have ties to criminal organizations or
Hizballah. END SUMMARY.

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HAMED INVESTIGATED FOR VISA ISSUANCES
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3. (C) President-elect Fernando Lugo's decision to designate
Paraguayan Ambassador to Lebanon Alejandro Hamed Franco as
his foreign minister July 23 ignited a domestic political
controversy. The Public Ministry brought criminal charges
against Hamed, and the MFA opened a separate investigation
against him in 2007, for his decision to issue 117 visas to
Lebanese nationals without prior authorization from the
Foreign Ministry between May and December 2006 -- allegedly
coinciding with the July-August 2006 Israeli-Lebanese
conflict. (NOTE: A Paraguayan presidential decree mandates
that the foreign minister must authorize, in writing, all
visas issued to foreign nationals from Arab states, including
Lebanon, prior to issuance. END NOTE.) Hamed said he issued
the visas with verbal authorization for humanitarian reasons
in order to assist Lebanese foreign nationals impacted by the
Israeli-Lebanese conflict. (NOTE: Press reports quote
then-Foreign Minister Leila Rachid as denying that she gave
Hamed verbal authorization. END NOTE). The MFA's internal
investigation showed that Hamed, in violation of the
presidential decree, issued visas with irregularities before,
during and after the conflict. The MFA's Legal Affairs
Director Carlos Fleitas said almost 70 percent of the 117
visas issued were expedited before and after the
Israel-Lebanese conflict, and that only 17 were issued during
it.


4. (C) Just before Lugo named Hamed foreign minister, a
judge threw out the criminal case against him. Judge Patricia
Gonzalez dismissed Hamed's case July 23, arguing that he
expedited the visas under "exceptional circumstances," and
Judge Teresita Monjagata recommended July 25 to Foreign
Minister Ruben Ramirez that Hamed be absolved of wrongdoing.
Although Ramirez must still decide whether he will take
disciplinary action against Hamed, it appears likely that
Ramirez will absolve him. (NOTE: If disciplined, Hamed could
be fired and barred from public office for two to five years.
END NOTE.) Lugo's chief of staff-designate, Miguel Lopez
Perito, told the press that there were no further legal
impediments to Hamed's nomination as Foreign Minister.

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HAMED'S U.S. VISA REVOKED
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5. (S) The Department prudentially revoked Hamed's B1/B2
U.S. visa in September 2006, citing INA 212(a)(3)(B) (ref A).
The case is available for review at VOIS ID 628612. A CLASS
namecheck on Hamed shows two classified "00" hits. The first
is from August 2006, with TSC ID 1156642 and TIDE file number

237749. The second hit, dated October 2007, postdates the
revocation of his visa with TSC ID number 1156643 and
references TIDE file number 237752. Post understands these
hits relate to Hamed's ties with Hizballah in the Tri-Border
Area and Lebanon. Because of Hamed,s potential ineligibility
under INA 212(a)(3)(B),Post would submit a SAO if he applies
for a new visa. He will likely attend the upcoming UN
General Assembly. In view of the short time interval between
the inauguration August 15 and UNGA, Post appreciates
Department guidance on actions linked to Hamed's visa case
that should be taken in advance of his visa application.

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ABOUT HAMED
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6. (S) Hamed, whose father immigrated to Paraguay from Syria,
has pro-Palestinian sympathies. He lived in Uruguay and
Argentina s a child, and speaks Spanish, English, French and
Arabic. He holds a doctorate in history from the National
University of Asuncion (UNA) and a degree in history from the
University of Uruguay in Montevideo. Prior to being named
Paraguayan ambassador to Lebanon by President Nicanor Duarte
Frutos in November 2004, Hamed served as a history professor
at both UNA and Catholic University of Asuncion, as well as
head of the International Relations Department at the
National University of Ciudad del Este. (NOTE: Ciudad del
Este is the epicenter of Paraguay's Lebanese community. Over
40,000 individuals of Lebanese descent reside in Paraguay,
primarily in or around this city. END NOTE.) Hamed's
designation as ambassador (as a political appointee) to
Lebanon was the product of his close relationship with
then-Foreign Minister Leila Rachid, who is of Syrian and
Lebanese descent. Hamed is the author of four books,
including "A Different Islam" and "The Palestine Intifada and
its Poetry" -- in which he strongly criticizes Israel and
calls Israelis "racists" -- and defends the Palestinian's
armed struggle. In his books, he also criticized Israel and
European countries for "taking over Arab lands." Movement
Toward Socialism (P-MAS) leader and National Emergency
Secretariat minister-designate Camilo Soares, Hamed's former
philosophy student, reportedly proposed Hamed's nomination to
Lugo.


7. (S) Hamed replaced Lugo's former foreign
minister-designate, Milda Rivarola, who resigned July 10.
Rivarola, a leftist-leaning political analyst and historian,
reportedly resigned in protest of Lugo's announcement that
Liberal Carlos Mateo Balmelli would run Paraguay's Itaipu Dam
operations. However, Rivarola told DCM and Pol/Econ Chief
that she was disappointed that Lugo was following the
Paraguayan tradition of political quotas to name his cabinet,
as she had hoped he would break from that pattern.

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AFTERMATH OF HAMED'S NOMINATION
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8. (C) Hamed's nomination illicited strong objections from
the Paraguayan Congress. Many members of Congress objected
to Hamed's nomination because they consider him a polarizing
figure whose pro-Palestinian biases could negatively impact
Paraguay's foreign relations. Beloved Fatherland Party
Deputy Carlos Soler expressed concern July 23 that the
Foreign Minister-designate is too controversial and has too
many detractors to manage Paraguay's foreign policy. Several
Senate Foreign Relations committee members, as well as
members of the Paraguayan Jewish community, also expressed
public concern over the appointment, and will question Hamed
August 6 regarding his foreign policy plans. After Hamed
admitted knowing very little about Mercosur or the FARC,
Senate Foreign Relations committee president Alberto Grillon
criticized his nomination, given that Mercosur is Paraguay's
top foreign policy priority. An ABC Color editorial argued
July 24 that "to name a pro-Palestine and pro-Islamic as head
of Paraguayan diplomacy" would be a setback for the country,
involving Paraguay in conflicts that have nothing to do with
Paraguay.

9. (S) Ambassador and Pol/Econ Chief expressed concern about
Hamed's possible nomination with several Lugo advisors in the
days leading up to the official announcement, pursuant to
President-elect Lugo's request that the Embassy share
information with him about his potential Cabinet members.
While initially appearing receptive to the Embassy's private
concerns, Lugo advisors then asked Embassy officials for
documents demonstrating Hamed's incapacity to serve as
foreign minister. Embassy officials did not offer any such
documents; Lugo moved forward with the nomination. Despite
press reports about U.S. objections and "interference," the
Embassy publicly commented that this was an internal
Paraguayan matter, and one that President-elect Lugo would
decide. The Embassy emphasized the United States'
long-standing close relations with Paraguay and stated that
the Embassy looks forward to continuing such relations with
the Lugo administration.

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EARLY POLICY INDICATIONS
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10. (SBU) Hamed has stated that his relations with the United
States will be "excellent," assuring the public in a July 24
press conference that there "won't be a radical variation in
our foreign policy of friendship and cooperation that we've
traditionally maintained with the United States." When asked
whether the United States might deny him a visa, he said he
would be guaranteed passage to the United Nations, and that
he wasn't sure why he wouldn't "be welcome" in the United
States. In a separate July 27 press interview, Hamed said
Paraguay must "maintain at all costs" good relations with the
United States. Hamed also called the war in Iraq "a tragedy,
an error," but spoke favorably about Barack Obama's plans to
retire U.S. troops from Iraq in 2010.


11. (SBU) In the days since his appointment, Hamed has spoken
in favor of Venezuela joining Mercosur, saying "the more (in
Mercosur),the smarter (the organization)." Hamed said "the
global trend is toward unification....all that Venezuela can
offer as a state, as a government, as a country, will be
welcome." When asked whether he would follow the anti-U.S.
foreign policy of Venezuela, Ecuador and Bolivia, Hamed
commented: "If today we try to get closer to Bolivia, it
doesn't matter if the president is Morales or someone else.
It's logical, as a neighbor. Ecuador and Venezuela are
further away. If they adopt an attitude of international
policy that may be useful for them, that may not always be
beneficial for us. Our international policy will always look
to benefit our country's interests."

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COMMENT
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12. (S) Post is concerned that Hamed illegally assisted
Lebanese foreign nationals, incidentally or otherwise, who
could have ties to criminal organizations or Hizballah.
Sensitive reporting also demonstrates that Hamed once
harbored a fugitive from Paraguayan justice. Hamed is a
polarizing figure, and it is unclear how he will approach
U.S.-Paraguayan relations. In addition, Post considers him to
be a poor candidate to support Lugo's anti-corruption agenda.
Despite these concerns, Embassy will engage Hamed in coming
weeks and attempt to work with him to further U.S. interests.
END COMMENT.

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Cason