FIRST MEETING WITH FM LACOGNATA

C O N F I D E N T I A L ASUNCION 000361

SIPDIS

WHA/FO CMCMULLEN, WHA/BSC MDRUCKER, BFRIEDMAN, MDASCHBACH

E.O. 12958: DECL: 06/09/2029
TAGS: PREL MASS EAID PGOV PA
SUBJECT: FIRST MEETING WITH FM LACOGNATA

Classified By: DCM Michael J. Fitzpatrick; reasons 1.4 (b) and (d).


1. (C) SUMMARY: In Ambassador's first formal meeting with
Foreign Minister Hector Lacognata, President Lugo's new face
to the world expressed a strong desire for close relations
with the United States. Ambassador reviewed the range of
U.S. assistance in Paraguay -- from Peace Corps to military
assistance -- only to find the Foreign Minister well-briefed
on all our programs. Lacognata promised to take leadership
on a defense cooperation agreement with the Paraguayan
Congress, gladly accepted U.S. communications assistance, and
promised to unstick the dormant biofuels Memorandum of
Understanding. Seemingly relaxed and open, Lacognata thanked
the Ambassador for her visit and for all of our projects in
country. END SUMMARY.


2. (C) Ambassador officially called on new Paraguayan
Foreign Minister Hector Lacognata early June 9 and
highlighted a few areas of key interest. Lacognata warmly
welcomed the Ambassador and opened the meeting by mentioning
a young Paraguayan (illegal) immigrant whose children were
removed by U.S. children's services because the mother was
charged with child abuse. (NOTE: Lacognata first telephoned
Ambassador May 28 to inquire about this case, which made
front page headlines locally. The press alleged that the
children were being wrongly removed from their Paraguayan
mother. Ambassador gave Lacognata (himself a pediatrician)
information which indicated that the infant twins had "shaken
baby syndrome." The call, coupled with Lacognata's
professional experience, kept him from making rash public
statements on the case based on inaccurate information. END
NOTE). The Foreign Minister reported that the older two
children would soon be returned to Paraguay to live with
their grandmother while the younger two continue to receive
medical assistance for possible shaken baby syndrome and the
U.S. judicial process plays out. Lacognata thanked the
Ambassador for her assistance, calling it "timely."


3. (C) Ambassador reviewed the range of U.S. assistance in
Paraguay -- from Peace Corps to military assistance -- only
to find the Foreign Minister well-briefed on all of our
programs. (NOTE: Prior to the meeting, the Foreign Ministry's
protocol chief told us Lacognata starts working at 6 a.m. and
ends his days around 7:00 p.m., eating only a sandwich at his
desk for lunch. He said Lacognata is well-structured and
does his homework on the issues, which was confirmed during
our discussion of bilateral issues. END NOTE). Ambassador
assured Lacognata that the United States' goal is to support
the Lugo administration, and that we seek to work with
Paraguay as a partner, and within the framework established
by the Lugo government. Lacognata was not surprised by the
existence of any of our programs, and was familiar with the
details of the Joint Immediate Response Detachment (DCEI),
the Global Peacekeeping Initiative (GPOI),and the MCC
Threshold Program.


4. (C) Lacognata promised to take leadership on a defense
cooperation agreement with the Paraguayan Congress, gladly
accepted U.S. communications assistance, and promised to
unstick the dormant biofuels Memorandum of Understanding.
Lacognata listened attentively as the Ambassador explained
that we would like to have a defense cooperation agreement to
serve as a clear framework for our military assistance
programs. He quipped, "why not just transfer those funds to
the Foreign Ministry instead?", before promising to lobby
Congress regarding a defense cooperation agreement.
Lacognata said his ministry had neglected congressional
relations, and that in an effort to improve
executive-congressional relations, he would visit the
different parties represented in Congress beginning June 10.
In response to the Ambassador's mention of USAID's Office of
Transition Initiatives (OIT) communications assistance to the
GOP (to include the Foreign Ministry),Lacognata seemed
grateful for the hand. He also promised a response within 15
days to the draft biofuels Memorandum of Understanding
pending MFA approval since October. Similarly, he asked his
staff to take another look at an e-visa program stalled in
the Foreign Ministry for over a year.


5. (C) Lacognata was also pleased that President Lugo had
been able to meet with Representative Elliot Engel on the
margins of the recent OAS meeting in Honduras. He agreed
with the Ambassador on the timely window being opened for
Paraguayan-U.S. trade. Lacognata also mentioned that he had
been up nearly the entire night of June 8 trying to resolve a
bilateral conflict with Bolivia. Lacognata said that
Bolivian military police crossed into Paraguay and kidnapped
an 18-year-old Paraguayan citizen (with some involvement by
the Paraguayan military as well). The Foreign Minister said
Bolivia had accepted responsibility for the incident, and was
satisfied that the responsible Bolivian police official had
been fired. He said the timing of President Morales' visit
on June 12 was unfortunate, as it had been scheduled long
before the incident occurred to commemorate the resolution of
the Chaco War and Paraguay's long-standing border dispute
with Bolivia, but was now being made to look like Morales was
coming to Paraguay to smooth things over.


6. (C) COMMENT: Seemingly relaxed and open, Lacognata thanked
the Ambassador for her visit and for all U.S. projects in
country. If driven by a leftist ideology, Lacognata did not
put that foot forward with us. He was the opposite of
antagonistic -- friendly and professional in his demeanor,
and was clearly following Lugo's instructions to work closely
with us. Lacognata is smart, proactive, and a quick study --
he had obviously gone to great lengths to study the pending
bilateral issues and had mastered them all. He asked the
Ambassador for only one thing during our meeting: direct
communication, promising that he would be the bearer of both
good and bad news coming from his government.

Please visit us at http://www.state.sgov.gov/p/wha/asuncion

AYALDE