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