PARAGUAY AND BOLIVIA BRING PEACE TO THE CHACO

C O N F I D E N T I A L ASUNCION 000381

SIPDIS

STATE FOR WHA/BSC MDASCHBACH

E.O. 12958: DECL: 12/31/2034
TAGS: PREL PGOV BL PA
SUBJECT: PARAGUAY AND BOLIVIA BRING PEACE TO THE CHACO

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

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SUMMARY
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1. (C) President Fernando Lugo and Bolivian President Evo
Morales met June 12 in Mariscal Estigarribia, Paraguay to
celebrate the anniversary of the end of the 1932-35 Chaco
War. The two presidents affirmed their countries'
territorial sovereignty and pledged to strengthen their
bilateral relationship. Morales' declaration that "the
people are the best parliament" -- coming on the heels of
calls by Lugo government officials for a public referendum on
Congress' performance -- prompted outrage among Paraguayan
legislators. Although Morales' brief visit with Lugo
elicited a negative reaction from politicians and the press,
Paraguayans' patriotic sentiments overshadowed Morales'
efforts to politicize the event. END SUMMARY.

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PEACE IN THE CHACO
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2. (U) President Fernando Lugo and Bolivian President Evo
Morales met June 12 in the rural Paraguayan Chaco town of
Mariscal Estigarribia to commemorate the 74th anniversary of
the end of the Chaco War and the signing of the peace treaty
April 27 in Buenos Aires. They were joined by Foreign
Minister Hector Lacognata, Defense Minister Luis Bareiro
Spaini, Bolivian Foreign Minister David Choquehuanca and
Bolivian Defense Minister Walker San Miguel. Both leaders
signed a joint peace declaration, delivered speeches, and
presented medals of honor to five Paraguayan Chaco War
veterans. (NOTE: The 1932-35 Chaco War -- in which Paraguay
ultimately repelled a Bolivian invasion of the Chaco region
-- resulted in nearly 100,000 casualties and cost Paraguay an
estimated USD152 million. END NOTE.)

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ON SOVEREIGNTY, UNITY...AND BORDER INVASIONS
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3. (U) Lugo and Morales affirmed their countries'
territorial sovereignty and pledged to strengthen their
bilateral relationship. Lugo declared, "We confirm that
there are no conflict scenarios between Paraguay and Bolivia.
Paraguay and Bolivia, two deeply independent and sovereign
nations, have learned that the integration of their peoples
is more important than the legacy left by the blood of
Bolivians and Paraguayans spilled on Chaco soil. We have
been given the arduous task of building new and stronger
bonds of brotherhood with the Bolivian people." (NOTE: On
May 17, Bolivian police entered Paraguayan territory to
arrest two Paraguayans wanted for robbery in Bolivia.
Bolivian police took one Paraguayan by force back to Bolivia;
after some initial confusion and an early denial of the
incident, Morales' government apologized for the incident on
June 9. The news prompted outrage by Paraguayans who accused
Bolivia of invading Paraguayan territory. END NOTE.)


4. (U) Morales extolled the virtues of 21st Century
Socialism, stating, "I urge the peoples of Latin America to
pursue a definitive liberation of our people. We are no
longer in time of kings, oligarchies, or patrons. We respect
private property, but first there must be equality for our
peoples. We are not in a time of laws, nor are we in a time
of patrons, nor are we in a time of oligarchies. We respect
private property, but above any sector or region is Latin
American unity." Lugo agreed about the importance of
regional integration, saying, "The dream of Latin American
unity, the dream of Simon Bolivar, San Martin, Jose Gervasio
Artigas, Sucre and Gaspar Rodriguez de Francia...is
underway." Lugo concluded, "Long live the great homeland,
Bolivia and Paraguay -- two friends are walking together
along the path of a shared future."


5. (U) Morales stated that the Chaco War "was an unjust war
for oil" in the "interests of empires like the U.S. and
England." Lugo added, "the sovereignty of our people will
not be threatened by foreign interests or multinational
forces that confronted us in the past." (NOTE: Some
historians contend that Standard Oil Company pursuaded the
Bolivian government to invade the Paraguayan Chaco under the
belief that it contained vast hydrocarbon reserves. END
NOTE.)

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STRONG REACTION TO EVO'S COMMENTS
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6. (U) Morales declared during his speech that "in Bolivia's
experience, the people are the best parliament...(their)
wisdom and your knowledge helps in making policy decisions."
This statement prompted strong criticism from Paraguayan
politicians who accused Morales of meddling in Paraguay's
domestic affairs. Morales' comments fed politicians' outrage
already piqued by recent calls from Paraguayan government
officials for a public referendum on Congress. Senate
President and UNACE leader Enrique Gonzalez Quintana
challenged Morales for "insulting a state power" on "a day
dear to our feelings." He likened Morales' rhetoric to the
Bolivian invasion of Paraguay during the Chaco War, arguing
that Morales is "an outsider coming to us with prescriptions
for how we should act in our country." Liberal Senator
Miguel Abdon Saguier called Morales "simplistic" and
"arrogant," and said that Morales' political "recipe" was
irrelevant to Paraguay. Beloved Fatherland Party Senator
Miguel Carrizosa noted that Paraguay is a participative
democracy and that Morales "already has enough problems with
the divisions he has fostered in his territory...to come to
give us recipes about democracy and his way of exercising it."

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COMMENT
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7. (C) Although Morales' brief visit elicited a negative
reaction from politicians and the press, Paraguayans'
patriotic sentiment during this event overshadowed Morales'
efforts to politicize it. Lugo -- as is often his style when
appearing with "21st Century Socialist" leaders -- included
carefully crafted, populist flourishes in his speech to
appease the political left, but maintained a moderate course.
Lugo pragmatically let his counterpart take the lead on
extolling populist rhetoric -- deflecting the attention from
himself. END COMMENT.

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