PRESS EXPLAINS REJECTION OF NEW HORIZONS

C O N F I D E N T I A L ASUNCION 000579 E.O. 12958: DECL: 2019/09/18 TAGS: PREL MASS PGOV PA SUBJECT: PRESS EXPLAINS REJECTION OF NEW HORIZONS REF: ASUNCION 569 CLASSIFIED BY: Perry Holloway, DCM; REASON: 1.4(A),(B),(D) ¶1. (U) Daily newspapers Ultima Hora and La Nacion published stories September 17 on Paraguay's decision to decline the U.S.-offered New Horizons military exercise. The articles placed the decision within the context of regional controversies discussed at recent UNASUR meetings, including the U.S.-Colombian Defense Cooperation Agreement (DCA). One newspaper alleged that New Horizons was related to INTELLIGENCE gathering on the Guarani acquifer. ¶2. (U) Leading dailies ABC Color and Ultima Hora carried the story again September 18, quoting Lugo's September 17 press conference in which he said it wasn't prudent to pursue New Horizons at this time. Lugo said New Horizons was not the best idea in light of "the new international stage in terms of defense, security and sovereignty." Lugo said accepting this humanitarian exercise (specifically referring to 500 troops) would open up a new front of conflict within the region given the current controversy over U.S. use of Colombian military bases. Foreign Minister Lacognata cited an excellent bilateral agenda with the United States and said Paraguay's decision would have no negative impact on its relations with the United States. Ambassador conducted several press interviews September 17-18 to explain the New Horizons is a mutually beneficial humanitarian exercise with no relation to INTELLIGENCE activities. Ambassador called Paraguay's decision "regrettable" but underscored respect for Paraguay's decision. Vice President Franco expressed his personal support for New Horizons ; several members of Congress publicly criticized Lugo's decision to reject the exercise. ¶3. (C) COMMENT: As noted in reftel, Lugo's decision to turn down New Horizons assistance is more an issue of timing than substance. Embassy has no reason to believe that Paraguay's decision was driven by external influences. MFA interlocutors told Emboffs late September 17 that the decision was "painful." Other mil-to-mil support remains unaffected and Post continues its efforts to improve and formalize the broader mil-to-mil relationship and ensure that DOD personnel are adequately protected in Paraguay. END COMMENT. AYALDE