US embassy cable - 05ASUNCION649

C O N F I D E N T I A L SECTION 01 OF 02 ASUNCION 000649 
 
SIPDIS 
 
STATE FOR WHA/BSC AND EB/IFD/OIA 
STATE PASS TO USAID FOR LAC/AA 
STATE PASS TO USTR FOR SCRONIN AND LYANG 
NSC FOR KIM BREIER 
TREASURY FOR OSIA MAUREEN WAFER 
TREASURY FOR OTA WARFIELD, VAN KOCH, MILLAR 
COMMERCE FOR ITA SARAH COOK 
SOUTHCOM FOR POLAD DAN JOHNSON 
 
E.O. 12958: DECL: 05/13/2015 
TAGS: PGOV, PREL, PINR, PHUM, ETRD, SNAR, KCRM, PA, VE 
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, MAY 7-13 
 
REF: A. ASUNCION 00627 
 
     B. BRASILIA 01252 
 
Classified By: PolCouns James P. Merz, reasons 1.4(b) and (d). 
 
1. (U) Summary 
-------------- 
-- Human rights agenda takes center stage this week 
-- Justice Rienzi re-appointment saga continues 
-- NDF and Rachid pursue increased trade with Arab countries 
-- SENAD agents capture narco-pilot wanted in Brazil 
 
Human rights agenda takes center stage this week 
--------------------------------------------- --- 
2. (U) At the MFA's invitation, the Inter-American Human 
Rights Court held a special session in Asuncion this week. 
It was the first time the Court convened a session outside 
its permanent seat in San Jose, Costa Rica.  A panel of seven 
Judges from Mexico, Venezuela, Barbados, Brazil, Chile, Costa 
Rica, and Peru heard testimony in public hearings in four 
cases dealing with freedom of expression in Chile, pretrial 
detention of suspected terrorists in Peru, prison conditions 
in Argentina, and indigenous rights in Ecuador.  Vice 
President Luis Castiglioni, Supreme Court President Antonio 
Fretes, Deputy FM Jose Martinez, and the Presidents of the 
Senate and Chamber of Deputies presided over the opening 
ceremony, and between 75 and 100 spectators were present 
during the hearing that PolOff attended.  In addition to the 
public hearings, the Judges signed a cooperation agreement 
with the Supreme Court, participated in conferences at three 
universities, met with President Duarte, the Congress, and FM 
Rachid, and visited the Mercosur Permanent Tribunal. 
 
3. (U) In the context of ongoing Mercosur discussions this 
week, Paraguay continued to push for the Human Rights 
Protocol it has proposed for the regional bloc.  According to 
Colombian PolCouns Raul Sanchez, who represented Colombia at 
the discussions, there is general consensus among Member 
countries with respect to the text of the Protocol.  The only 
sticking point is Article 3, which lays out procedures for 
determining violations and imposing sanctions. 
 
4. (C) Comment: These are positive developments.  The GOP and 
FM Rachid are actively pursuing initiatives that quietly 
advance U.S. interests, often contrary to the objectives that 
others, such as Venezuela, are pursuing in the region. 
Rachid has told the Ambassador that the Human Rights Protocol 
is, among other things, aimed at allowing Mercosur to stave 
off or condition a Venezuelan attempt to join.  End Comment. 
 
Justice Rienzi re-appointment saga continues 
-------------------------------------------- 
5. (U) In an apparent move to quiet discussion of the 
Senate's questionable authority to re-appoint tarnished 
Colorado (ANR) party stalwart Wildo Rienzi to the Supreme 
Court until he reaches the mandatory retirement age in two 
years (ref A), on May 7 President Duarte signed a decree 
"confirming" Rienzi's re-appointment.  Then, contrary to 
earlier signals that it would challenge the Senate's action, 
the Council of Magistrates instead canceled its call for 
candidates to compete for the vacancy created by the 
expiration of Rienzi's term.  Patria Querida (PQ) party 
Senator Ana Maria Mendoza de Acha called the Council's 
actions "incoherent" and called for a thorough review of the 
constitutionality of the re-appointment. 
 
6. (C) Separately, the Liberal (PLRA) party's Executive Board 
submitted a report to the party's Court of Honor on the 
conduct of dissident PLRA Senators Domingo Laino, Modesto 
Guggiari, and Candido Vera Bejarano, particularly as relates 
to their vote in favor of Reizi's re-appointment over the 
opposition of the PLRA leadership.  PLRA Senate bench leader 
Armando Espinola advised PolCouns that he favors expelling 
the three.  However, according to Espinola, inasmuch as the 
PLRA is in the midst of a campaign to determine the party's 
leadership in a July 17 election, Blas Llano, the PLRA's 
leading candidate to be its next President, opposed this 
measure mostly out of concern about the damage it could pose 
to the PLRA's voting base.  As such, Espinola considered 
expulsion unlikely.  In the meantime, the three have been 
prohibited from using party symbols and from invoking the 
party's name when exercising their functions. 
 
NDF and Rachid pursue increased trade with Arab countries 
--------------------------------------------- ------------ 
7. (U) In his address at this week's Arab-South American 
Summit in Brasilia (ref B), President Duarte signaled the 
GOP's desire to develop the country's agricultural industry 
by attracting new foreign investment.  Duarte highlighted 
inexpensive hydro-electrical energy, low taxes, fertile land, 
and abundant natural resources as some of the benefits of 
doing business in Paraguay.  Arab businesses reportedly 
expressed interest in a highway construction project in 
Asuncion, as well as Paraguayan beef, soybean, and sesame 
seed.  In her role as President Pro Tempore of Mercosur, FM 
Rachid signed a framework agreement for economic cooperation 
between Mercosur and the Arab states that participated in the 
Summit.  The framework agreement is intended to serve as a 
mechanism for concluding bilateral agreements, which Paraguay 
promptly did with Sudan.  The press quoted Duarte as saying 
Arab states were interested in trading oil for Paraguayan 
water. 
 
SENAD agents capture narco-pilot wanted in Brazil 
--------------------------------------------- ---- 
8. (U) On May 9, agents from Paraguay's Counter-narcotics 
Secretariat (SENAD) captured 50-year-old Brazilian pilot Joao 
 
SIPDIS 
Freitas de Carvalho in Pedro Juan Caballero.  Freitas is 
wanted in Brazil for trafficking cocaine for Fernandinho 
Beira Mar, Claudaire Lopes de Faria, and Ivan Mendes 
Mesquita.  SENAD believes Freitas was involved in a plot to 
help Mendes escape from detention prior to his pending 
extradition to the United States.  There are no charges 
pending against Freitas in Paraguay. GOP officials are 
processing Brazil's request for Freitas' extradition. 
 
9. (U) In a separate case, an INL drug dog found a kilo of 
cocaine hidden in the handle of luggage on its way from 
Paraguay to Cameroon.  SENAD showed improved investigative 
abilities and aggressiveness and developed a controlled 
delivery plan, including gaining judicial permission in 
Paraguay.  Logistical issues in Africa and other transit 
countries led to cancellation of the controlled delivery and 
seizure here, but this case showed investigative progress. 
KEANE