Identifier
Created
Classification
Origin
08ASUNCION545
2008-08-05 22:10:00
CONFIDENTIAL
Embassy Asuncion
Cable title:
AMBASSADOR'S FAREWELL DINNER WITH LUGO
how-toVZCZCXYZ0000 OO RUEHWEB DE RUEHAC #0545/01 2182210 ZNY CCCCC ZZH O 052210Z AUG 08 FM AMEMBASSY ASUNCION TO RUEHC/SECSTATE WASHDC IMMEDIATE 7138 INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY RHMFISS/HQ USSOUTHCOM MIAMI FL PRIORITY RHMFISS/USSOCOM MACDILL AFB FL PRIORITY
C O N F I D E N T I A L ASUNCION 000545
SIPDIS
E.O. 12958: DECL: 08/04/2028
TAGS: PREL ECON PGOV PA
SUBJECT: AMBASSADOR'S FAREWELL DINNER WITH LUGO
Classified By: A/DCM Joan Shaker; reasons 1.4 (b) and (d).
C O N F I D E N T I A L ASUNCION 000545
SIPDIS
E.O. 12958: DECL: 08/04/2028
TAGS: PREL ECON PGOV PA
SUBJECT: AMBASSADOR'S FAREWELL DINNER WITH LUGO
Classified By: A/DCM Joan Shaker; reasons 1.4 (b) and (d).
1. (C) SUMMARY: Ambassador and A/DCM met with President-elect
Fernando Lugo and Foreign Minister-designate Alejandro Hamed
Franco August 1, Ambassador Cason's last night in Paraguay
before departing post August 2. While Hamed said very
little, Lugo's demeanor was warm and engaging. Ambassador
and A/DCM informally reviewed U.S. assistance programs with
Lugo and Hamed, including the MCC Threshold Program, USAID's
"Paraguay Sells" export program, English-language
scholarships, and our medical diplomacy efforts. Regarding
the U.S. delegation to Lugo's inauguration, Ambassador
explained the significance of Secretary of Commerce
Gutierrez's visit as a symbol of our interest in increasing
commercial ties. Lugo told the Ambassador that he has
organized his cabinet into political, social and economic
subgroups. He assured the Ambassador that anti-corruption
remains his top priority, and said he's asked each of his
ministers to come up with three priorities for his
administration's first 100 days. Lugo identified his
greatest challenges as land reform, managing the
landless/roofless movements, and reforming the civil service
system. Despite continuing objections to Hamed's
appointment, particularly from the Paraguayan Congress,
Hamed's presence at the dinner signaled that he is here to
stay. END SUMMARY.
2. (C) Ambassador and A/DCM had dinner with President-elect
Fernando Lugo August 1, Ambassador Cason's last night in
Paraguay before departing post August 2. Lugo's protocol
staff informed the Embassy that Lugo would bring his chief of
staff, Miguel Lopez Perrito, with him; instead, Foreign
Minister-designate Alejandro Hamed Franco accompanied Lugo
without prior notice. Neither Lugo nor Hamed addressed U.S.
concerns regarding Hamed's appointment as foreign minister.
--------------
SOME INSIGHT INTO LUGO
--------------
3. (C) While Hamed said very little during the
three-hour-long dinner, Lugo's demeanor was warm and engaging
throughout. Lugo opened up more than in previous meetings
and shared numerous anecdotes about his transition to the
presidency and his personal life. Lugo studied English for
eight weeks (although he says he doesn't remember anything he
learned),and once visited Chicago on church business. He
recounted his love of comparative law classes at the Vatican,
noting that his best professors were over age 60, when
"people begin to really understand life." Lugo also
mentioned the importance of taking risks. He talked about a
wall hanging in his home that reminds him that nothing is
gained without risk.
4. (C) Lugo also stated that he plans to live in a small
apartment in the presidential palace instead of the rambling
presidential residence. Lugo said President Duarte remodeled
an apartment in the palace, which would suit his humble
needs. Lugo recounted his August 1 surprise tour of the
palace in which he wandered throughout the building and spoke
directly to support staff. The staff told Lugo he was the
first president to ever enter their quarters.
--------------
A REVIEW OF US ASSISTANCE
--------------
5. (C) Ambassador and A/DCM informally reviewed several U.S.
assistance programs with Lugo and Hamed over dinner,
including the MCC Threshold Program (on which Lugo is now
well-briefed),USAID's "Paraguay Sells" export program,
English-language scholarships, and our medical diplomacy
efforts. Lugo recognized the importance of taking the
obligatory 6 percent travel agency commission off the books
in order to entice airlines to return to or establish service
in Paraguay; he also seemed to grasp the positive impact of
an e-visa program on tourism and investment. Lugo
appreciated the Embassy's recent donations in his home
department of San Pedro (internet connections, a social
pharmacy, and two fire trucks). Ambassador also discussed
the Embassy's work to encourage a public-private partnership
to clean up Ciudad del Este. (NOTE: Hamed was particularly
interested to learn that Embassy is working with several
Lebanese businessmen on this project. END NOTE). Lugo
thanked Ambassador Cason for his assistance over the past
several years, and particularly for his interest in
Paraguayan culture.
6. (C) Regarding the U.S. delegation to Lugo's inauguration,
Ambassador explained the significance of Secretary of
Commerce Gutierrez's visit as a symbol of our interest in
increasing commercial ties. (NOTE: Lugo's advisors had
expressed concern that President Bush had not accepted Lugo's
invitation to attend the inauguration. Unfamiliar with the
U.S. system, Lugo believed Gutierrez's designation was a
slight. Ambassador clarified that President Bush has not
attended a single inauguration in his two terms as president,
and that Gutierrez's visit is an extremely positive signal
for the bilateral relationship. END NOTE). Ambassador Cason
reminded Lugo that the United States is the top direct
foreign investor in Paraguay, and of our commitment to
Paraguay's economic development.
--------------
ORGANIZING HIS GOVERNMENT
--------------
7. (C) Lugo told the Ambassador that he has organized his
cabinet into political, social and economic subgroups. Lugo
said his first few cabinet meetings with all 35 ministers had
not been productive, and that they would not continue to meet
as one group. Lugo also mentioned that his schedule has been
overwhelming; some 4,000 people are on a wait list for an
audience with him. Lugo mentioned one recent meeting in
which his guest complained of muscle aches, which prompted
Lugo to install additional bureaucratic "filters" to protect
his time. Lugo also expressed concern about his ability to
move his agenda forward in light of the existing bureaucracy,
noting that five attorneys in the presidential palace work
exclusively on issuing presidential decrees for his
signature.
--------------
LUGO'S GOALS AND CHALLENGES
--------------
8. (C) Lugo assured the Ambassador that anti-corruption
remains his top priority. In a meeting with former U.S.
Assistant Secretary for Western Hemisphere Affairs Roger
Noriega last week, Lugo said he pulled Noriega aside to tell
him to let him know personally if anyone in the Paraguayan
government attempts to solicit a bribe. Lugo said he might
install a hotline for reporting corruption, and expressed his
firm commitment to cleaning up Paraguay's image with
potential international investors. Lugo expressed confidence
in his anti-corruption agenda with respect to the executive
branch, but lamented that it would be difficult to reform the
courts and Congress.
9. (C) Lugo asked each of his ministers to come up with three
priorities for the administration's first 100 days. Hamed
said he had not yet developed his plan; Lugo mentioned his
own desire to rid Paraguay's embassies and consulates of
political patronage. Lugo did not see a pressing need for a
Constituent Assembly as a vehicle for reform, he said, unless
the Paraguayan people demand it. In response to the
Ambassador's question, Lugo identified his greatest
challenges as land reform, managing the landless/roofless
movements, and reforming the civil service system.
--------------
COMMENT
--------------
10. (C) Despite continuing objections to Hamed's appointment
due to fraud and corruption allegations, particularly from
the Paraguayan Congress, Hamed's presence at the dinner
signaled that he is here to stay. While Hamed cautiously
observed Lugo's interactions with the Ambassador (warming up
slightly at the end),Lugo's jovial demeanor conveyed his
interest in close relations with the United States. Our
message matched his tone -- the United States is Paraguay's
friend and we're here to help. END COMMENT.
11. (C) BIO NOTES: Hamed is from the Central Department. He
speaks at least conversational English, and may be fluent
enough to conduct official meetings in English. Hamed did
not drink any alcoholic beverages during the meeting. He is
difficult to read. END BIO NOTES.
Please visit us at http://www.state.sgov.gov/p/wha/asuncion
Robinson
SIPDIS
E.O. 12958: DECL: 08/04/2028
TAGS: PREL ECON PGOV PA
SUBJECT: AMBASSADOR'S FAREWELL DINNER WITH LUGO
Classified By: A/DCM Joan Shaker; reasons 1.4 (b) and (d).
1. (C) SUMMARY: Ambassador and A/DCM met with President-elect
Fernando Lugo and Foreign Minister-designate Alejandro Hamed
Franco August 1, Ambassador Cason's last night in Paraguay
before departing post August 2. While Hamed said very
little, Lugo's demeanor was warm and engaging. Ambassador
and A/DCM informally reviewed U.S. assistance programs with
Lugo and Hamed, including the MCC Threshold Program, USAID's
"Paraguay Sells" export program, English-language
scholarships, and our medical diplomacy efforts. Regarding
the U.S. delegation to Lugo's inauguration, Ambassador
explained the significance of Secretary of Commerce
Gutierrez's visit as a symbol of our interest in increasing
commercial ties. Lugo told the Ambassador that he has
organized his cabinet into political, social and economic
subgroups. He assured the Ambassador that anti-corruption
remains his top priority, and said he's asked each of his
ministers to come up with three priorities for his
administration's first 100 days. Lugo identified his
greatest challenges as land reform, managing the
landless/roofless movements, and reforming the civil service
system. Despite continuing objections to Hamed's
appointment, particularly from the Paraguayan Congress,
Hamed's presence at the dinner signaled that he is here to
stay. END SUMMARY.
2. (C) Ambassador and A/DCM had dinner with President-elect
Fernando Lugo August 1, Ambassador Cason's last night in
Paraguay before departing post August 2. Lugo's protocol
staff informed the Embassy that Lugo would bring his chief of
staff, Miguel Lopez Perrito, with him; instead, Foreign
Minister-designate Alejandro Hamed Franco accompanied Lugo
without prior notice. Neither Lugo nor Hamed addressed U.S.
concerns regarding Hamed's appointment as foreign minister.
--------------
SOME INSIGHT INTO LUGO
--------------
3. (C) While Hamed said very little during the
three-hour-long dinner, Lugo's demeanor was warm and engaging
throughout. Lugo opened up more than in previous meetings
and shared numerous anecdotes about his transition to the
presidency and his personal life. Lugo studied English for
eight weeks (although he says he doesn't remember anything he
learned),and once visited Chicago on church business. He
recounted his love of comparative law classes at the Vatican,
noting that his best professors were over age 60, when
"people begin to really understand life." Lugo also
mentioned the importance of taking risks. He talked about a
wall hanging in his home that reminds him that nothing is
gained without risk.
4. (C) Lugo also stated that he plans to live in a small
apartment in the presidential palace instead of the rambling
presidential residence. Lugo said President Duarte remodeled
an apartment in the palace, which would suit his humble
needs. Lugo recounted his August 1 surprise tour of the
palace in which he wandered throughout the building and spoke
directly to support staff. The staff told Lugo he was the
first president to ever enter their quarters.
--------------
A REVIEW OF US ASSISTANCE
--------------
5. (C) Ambassador and A/DCM informally reviewed several U.S.
assistance programs with Lugo and Hamed over dinner,
including the MCC Threshold Program (on which Lugo is now
well-briefed),USAID's "Paraguay Sells" export program,
English-language scholarships, and our medical diplomacy
efforts. Lugo recognized the importance of taking the
obligatory 6 percent travel agency commission off the books
in order to entice airlines to return to or establish service
in Paraguay; he also seemed to grasp the positive impact of
an e-visa program on tourism and investment. Lugo
appreciated the Embassy's recent donations in his home
department of San Pedro (internet connections, a social
pharmacy, and two fire trucks). Ambassador also discussed
the Embassy's work to encourage a public-private partnership
to clean up Ciudad del Este. (NOTE: Hamed was particularly
interested to learn that Embassy is working with several
Lebanese businessmen on this project. END NOTE). Lugo
thanked Ambassador Cason for his assistance over the past
several years, and particularly for his interest in
Paraguayan culture.
6. (C) Regarding the U.S. delegation to Lugo's inauguration,
Ambassador explained the significance of Secretary of
Commerce Gutierrez's visit as a symbol of our interest in
increasing commercial ties. (NOTE: Lugo's advisors had
expressed concern that President Bush had not accepted Lugo's
invitation to attend the inauguration. Unfamiliar with the
U.S. system, Lugo believed Gutierrez's designation was a
slight. Ambassador clarified that President Bush has not
attended a single inauguration in his two terms as president,
and that Gutierrez's visit is an extremely positive signal
for the bilateral relationship. END NOTE). Ambassador Cason
reminded Lugo that the United States is the top direct
foreign investor in Paraguay, and of our commitment to
Paraguay's economic development.
--------------
ORGANIZING HIS GOVERNMENT
--------------
7. (C) Lugo told the Ambassador that he has organized his
cabinet into political, social and economic subgroups. Lugo
said his first few cabinet meetings with all 35 ministers had
not been productive, and that they would not continue to meet
as one group. Lugo also mentioned that his schedule has been
overwhelming; some 4,000 people are on a wait list for an
audience with him. Lugo mentioned one recent meeting in
which his guest complained of muscle aches, which prompted
Lugo to install additional bureaucratic "filters" to protect
his time. Lugo also expressed concern about his ability to
move his agenda forward in light of the existing bureaucracy,
noting that five attorneys in the presidential palace work
exclusively on issuing presidential decrees for his
signature.
--------------
LUGO'S GOALS AND CHALLENGES
--------------
8. (C) Lugo assured the Ambassador that anti-corruption
remains his top priority. In a meeting with former U.S.
Assistant Secretary for Western Hemisphere Affairs Roger
Noriega last week, Lugo said he pulled Noriega aside to tell
him to let him know personally if anyone in the Paraguayan
government attempts to solicit a bribe. Lugo said he might
install a hotline for reporting corruption, and expressed his
firm commitment to cleaning up Paraguay's image with
potential international investors. Lugo expressed confidence
in his anti-corruption agenda with respect to the executive
branch, but lamented that it would be difficult to reform the
courts and Congress.
9. (C) Lugo asked each of his ministers to come up with three
priorities for the administration's first 100 days. Hamed
said he had not yet developed his plan; Lugo mentioned his
own desire to rid Paraguay's embassies and consulates of
political patronage. Lugo did not see a pressing need for a
Constituent Assembly as a vehicle for reform, he said, unless
the Paraguayan people demand it. In response to the
Ambassador's question, Lugo identified his greatest
challenges as land reform, managing the landless/roofless
movements, and reforming the civil service system.
--------------
COMMENT
--------------
10. (C) Despite continuing objections to Hamed's appointment
due to fraud and corruption allegations, particularly from
the Paraguayan Congress, Hamed's presence at the dinner
signaled that he is here to stay. While Hamed cautiously
observed Lugo's interactions with the Ambassador (warming up
slightly at the end),Lugo's jovial demeanor conveyed his
interest in close relations with the United States. Our
message matched his tone -- the United States is Paraguay's
friend and we're here to help. END COMMENT.
11. (C) BIO NOTES: Hamed is from the Central Department. He
speaks at least conversational English, and may be fluent
enough to conduct official meetings in English. Hamed did
not drink any alcoholic beverages during the meeting. He is
difficult to read. END BIO NOTES.
Please visit us at http://www.state.sgov.gov/p/wha/asuncion
Robinson