LUGO STEERS MODERATE COURSE IN INAUGURATION SPEECH

UNCLAS ASUNCION 000592

SENSITIVE
SIPDIS

TO WHA/FO CKELLY, WHA/BSC MDRUCKER, CCROFT

E.O. 12958: N/A
TAGS: PGOV ECON PREL PA
SUBJECT: LUGO STEERS MODERATE COURSE IN INAUGURATION SPEECH


1. (SBU) SUMMARY: After taking his oath with an emphatic "I
swear," President Fernando Lugo delineated his ideals for
Paraguay in an emotive inauguration speech, some of which he
delivered in Guarani. Lugo marked a strong affinity with the
left as he emphasized the cause of the poor and the
indigenous, but also promised to pursue "a sustainable
economy with social equity" which would offer the business
sector the best possible working environment. Lugo promised
to institutionalize Paraguay's public entities. He said the
indigenous will be the owners and guardians of the country,s
natural resources and promised to improve living conditions
for peasants, placing special emphasis on the problem of
street children. Lugo stated that protection of the
environment and conservation of the last remaining Atlantic
Forest will be his passion. He expressed hope that the armed
forces will become a friend of the community and that the
national police will improve security. On health and
education, Lugo assured his people that he is working on
projects to improve access to government services. Lugo, the
"bishop of the poor," wove a careful balance between the left
and the right, peppering his speech with a populist discourse
but reassuring the business community that he would look out
for its interests. His moderate discourse steered clear of
pro-Venezuelan or anti-American sentiments, as he focused
almost exclusively on domestic themes. END SUMMARY.

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THE SPEECH
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2. (SBU) After taking his oath with an emphatic "I swear,"
President Fernando Lugo delineated his ideals for Paraguay in
an emotive inauguration speech, some of which he delivered in
Guarani. Lugo, who ousted the Colorado Party after 61 years
in power, took the reigns of the country in a colorful and
symbolic ceremony (which included a 21-gun salute). Wearing
a white shirt without a tie and Franciscan sandals, Lugo
talked about austerity and honesty, and emphasized that the
days of "the Paraguay for a few, with fame of corruption" had
ended. On the margins of the crowd, communist and Che
Guevara flags waved alongside large Bolivian flags (President
Morales received the most enthusiastic ovation of all foreign
presidents in attendance).


3. (SBU) Lugo marked a strong affinity with the left as he
emphasized the cause of the poor and the indigenous. He was
on the brink of tears when he talked about the indigenous,
the poor and his humble beginnings as a priest. Lugo
reminisced about joining the church, "surrounded by his
community and great poverty," to defend those "who history
has thrown on the scenery of poverty and misery." Lugo said
that the "indigenous people, along with those Paraguayans who
live in poverty" will be his administration's priority. He
also said he will pursue a frontal fight against impunity and
corruption via profound state reforms. Lugo promised to be
implacable with those who steal from the state coffers, and
to improve public expenditures.

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ECONOMY
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4. (SBU) Lugo promised to pursue "a sustainable economy with
social equity." He spoke about an "education policy with
emphasis on social actions to decrease economic factors that
produce structural poverty." He emphasized that he will
promote dialogue between the social and business sectors to
"reach a social pact." Lugo also spoke about the necessity
of introducing new business that generates opportunities and
has direct social impact.


5. (SBU) Lugo said that the business sector will receive his
full support and enjoy the best working environment possible.
He said he will promote the creation of agricultural
industries that further social goals as well as environmental
protection. Lugo added that his administration will work to
find alternatives to the export of raw materials, including
value-added production. Lugo stated that the communication,
banking and service sectors will enjoy a close and decisive
state partnership.

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PUBLIC ENTITIES
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6. (SBU) Lugo promised to institutionalize Paraguay's public
entities. He talked about efficiency, patriotism,
transparency and responsibility by the public sector. He
emphasized the importance of honesty because "there are not
corrupt entities, but only workers that corrupt themselves."
Lugo also said that party affiliation will no longer be a
requirement to work for the government. He further stated
that he will find ways to eliminate state "secretismo," to
make the public entities accountable and to improve workers'
professionalism and skills. Lugo indicated that change will
be reflected in his administration's austerity and control of
public goods to prevent abuses and illicit acquisition and
accumulation of wealth by a few politicians while the
majority of the population suffers in poverty.

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SOCIAL PROGRAMS
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7. (SBU) Lugo said that the indigenous will be the owners and
guardians of the country's natural resources. Lugo said that
they will be able to enjoy and productively exploit the
nation's natural resources. He said the land claimed by the
indigenous will not only be sacred but will serve as a basis
to give constitutional protections to the less fortunate.
Lugo threatened that "not a single white person that
negotiates indigenous land, humiliates and persecutes the
indigenous will enjoy the impunity he or she always had."
Lugo added that a crime against an indigenous person will not
go unpunished.


8. (SBU) Lugo said that his administration will work hard to
improve living conditions for peasants. Lugo also said that
his administration will work to eliminate the so-called
"liberated areas or dangerous zones," such as San Pedro.
However, Lugo said, his administration will not persecute or
discriminate against anyone for "bearing the sign of poverty."


9. (SBU) Lugo placed special emphasis on the problem of
street children. He lamented the children working at
Asuncion's busy intersections, in constant danger, to earn a
few coins for the day. Lugo said that he did not know how
long it will take to fix the problem or if it will be
possible to completely eradicate "the monster of misery that
condemns the children," but, as with the indigenous, the
children in misery will have the personal attention of the
president.


10. (SBU) Lugo pointed out that environmental protection and
conservation of the last remaining Atlantic Forest will be
his passion. By applying resources strategically, Lugo
stated that the Guarani aquifer, the Northern swamps and
everglades, and the sources of fresh water will be protected.
To accomplish this goal, Lugo said that he will implement
regional programs that will be supported locally.

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ARMED FORCES AND NATIONAL POLICE
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11. (SBU) Lugo expressed hope that the armed forces will
become a friend of the community and that the national police
will improve security. Lugo said that the armed forces
should dignify their historical legacy and become the
community's friend and partner. He said that the armed
forces' obscure and repressive operations to prop up despotic
regimes are things of the past. On the national police, Lugo
stated that the level of police corruption must drastically
decrease. He promised to improve security by creating a
"social conscience," tightening control and punishing corrupt
police officers, and by improving the officers' living
conditions and investing in technological, logistical and
financial infrastructure.

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HEALTH AND EDUCATION
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12. (SBU) Lugo expressed that he is working on projects that
will improve access to government services. He said that his
administration's most important social investment will be
reflected in the phrase, "a healthy and educated child."
Lugo said his "social cabinet" will make sure that his
administration concentrates on education and health.


13. (SBU) COMMENT: Lugo, the "bishop of the poor," wove a
careful balance between the left and the right, peppering his
speech with a populist discourse but reassuring the business
community that he would protect them as well. His moderate
discourse steered clear of pro-Venezuelan or anti-American
sentiments, as he focused almost exclusively on domestic
themes (the only exception being a passing reference to the
bi-national dams with Brazil and Argentina). END COMMENT.

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