US embassy cable - 05ASUNCION597

C O N F I D E N T I A L ASUNCION 000597 
 
SIPDIS 
 
STATE FOR WHA/BSC, WHA/EPSC, EB/CBA, INL/C/CP 
STATE PASS TO USTR FOR SCRONIN, LYANG 
USAID FOR AA/LAC ADOLFO FRANCO 
TREASURY FOR OSIA MAUREEN WAFER 
COMMERCE ITA SARAH COOK 
NSC FOR MIKE DEMPSEY 
SOUTHCOM FOR POLAD 
US SOUTHERN COMMAND MIAMI, FLORIDA 
 
E.O. 12958: DECL: 05/03/2015 
TAGS: ECON, EFIN, ETRD, EINV, SNAR, PA 
SUBJECT: PARAGUAY'S VP ON MONEY LAUNDERING AND MWH CASE 
 
 
Classified By: DCM Kevin M. Johnson for reasons 1.4 (b) and (d). 
 
1. (U) May 2 the Ambassador asked VP Castiglioni to push 
money laundering legislation presently before two Senate 
committees (legislation, and budget.)  Noting that the draft 
meets international standards and addresses major GOP and USG 
priorities but has been in the Senate for almost a year, the 
Ambassador said the time was right for a strong push from the 
executive.  The Embassy, SEPRELAD, and allies on the Supreme 
Court have lobbied key Senators, coordinating with 
Castiglioni's staff, and the VP could be very helpful at this 
juncture.  Castiglioni said he was glad to help and asked his 
legislative assistant to brief us on the state of play. 
After further discussion, the VP agreed to call the Chairs of 
both committees (whose recommendatations to the full Senate 
are key) and to have his staff and SEPRELAD this week provide 
technical briefings to committee members. 
 
2. (C) The Ambassador sought assistance in resolving a debt 
owed to the U.S. company Montgomery Watson Harza (MWH) by the 
Yacyreta bi-national dam.  Explaining that the Argentine 
representative on Yacyreta had agreed to a settlement of 
about $ one million, the Ambassador said agreement by the 
Paraguayan representative was the last obstacle.  The 
Ambassador said he had met with the then Paraguayan rep 
(recently moved to be the President's legal adviser) Carlos 
Goiburu, and written to both Minister of Public Works Aldrete 
and Presidente Duarte.  Castiglioni immediately called 
Goiburu, leaving a message, and said he would follow up this 
week with the new Yacyreta rep. 
KEANE