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). -------------- SUMMARY -------------- ¶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. -------------- PEACE IN THE CHACO -------------- ¶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.) -------------- ON SOVEREIGNTY, UNITY...AND BORDER INVASIONS -------------- ¶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.) -------------- STRONG REACTION TO EVO'S COMMENTS -------------- ¶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." -------------- COMMENT -------------- ¶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. Please visit us at http://www.state.sgov.gov/p/wha/asuncion AYALDE