PARAGUAYAN PEOPLE'S ARMY CAMP DISCOVERED

C O N F I D E N T I A L ASUNCION 000512 SIPDIS TO WHA/BSC MDASCHBACH E.O. 12958: DECL: 08/11/2029 TAGS: PGOV PTER ASEC PREL PA SUBJECT: PARAGUAYAN PEOPLE'S ARMY CAMP DISCOVERED REF: A. 08 ASUNCION 181 ¶B. 08 ASUNCION 709 ¶C. ASUNCION 1 Classified By: Perry L. Holloway, Deputy Chief of Mission for reasons 1 .4 (b) and (d). ¶1. (C) Police discovered a rudimentary forest encampment of the Paraguayan People's Army (EPP) on August 1. The site is located on the land of Alejandro Ramos, a former Free Homeland Party (PPL) member, in Concepcion Department. Police were unable to capture the occupants, who escaped into the forest after firing their weapons. Police found food and plans for future armed activities. Approximately USD 27,900 stored in a large thermos had bills containing the same serial numbers as the ransom payment for prominent rancher Luis Alberto Lindstron, who was kidnapped in 2008 and later released. Police believe Lindstron was temporarily held at this site. A target list of possible future kidnap victims included the names of local authorities and businessmen. There were also documented plans for an attack in Asuncion to free jailed former PPL members. (NOTE: The key members of the now-defunct PPL appear to form the core group of current EPP members. END NOTE.) The Attorney General claims links exist between the EPP and Colombia's FARC based on unspecified evidence found at the encampment. (NOTE: Post believes this is recycled news based on one e-mail from a PPL member found on FARC leader Raul Reyes' laptop captured by the Colombians in Ecuador in March 2008. END NOTE.) Revolutionary literature and other documents and diaries are being scrutinized by police and prosecutors for additional information. ¶2. (C) The rising profile of the EPP dates to March 2008 when news of its 2006 formation reached the press (reftel A). In July 2008 Lindstron was kidnapped in Concepcion Department; he was released 42 days later after his family paid a USD 300,000 ransom (reftel B). The EPP recently claimed responsibility for a New Year's Eve attack on a two-man military outpost in northern San Pedro Department, near the border with Concepcion, provoking an extensive response from Paraguay's U.S.-trained security forces (reftel C). Sporadic EPP action has been centered in the San Pedro and Concepcion Departments with a minor event occurring every three to six months. The evidence found August 1 indicates there are less than 60 active EPP militants who aspire to raise USD 500,000 to extend their activities to other departments such as Alto Parana and Caaguazu. Documents also showed active EPP tracking of the personal details and movements of local government officials in the police and military. Lead prosecutor told RSO that the events in Horqueta are serious and that the investigation continues. ¶3. (C) COMMENT: Speculation and rumors regarding the EPP contributes to a heightened sense of tension when considered along with other leftist-related demonstrations by campesino groups. The EPP does not currently appear organized or large enough to cause anything beyond nuisance and frustration for authorities. The loss of a sizable (by Paraguayan standards) cache of money suggests a short-term setback for the EPP. The Attorney General's comments about FARC ties to the EPP further inflame the issue but are unsubstantiated. END COMMENT. Ayalde