US embassy cable - 05ASUNCION745

UNCLAS SECTION 01 OF 02 ASUNCION 000745 
 
SIPDIS 
 
STATE FOR WHA/BSC, WHA/EPSC, EB/IFD/OMA 
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 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, ETRD, PREL, PGOV, PINR, PA 
SUBJECT: AMBASSADOR CALLS ON NEW MINISTER OF INDUSTRY AND 
COMMERCE WHO REAFFIRMS COMMITMENT TO IPR PROTECTION 
 
REF: A) Asuncion 726 
 
     B) Asuncion 675 
 
1.  (U) Sensitive But Unclassified  please protect 
accordingly. 
 
2.  (SBU) Summary:  On May 31, Ambassador, Econcouns and 
Resident Enforcement Advisor (REA) called on new Minister 
of Industry and Commerce Raul Vera.  Vera started off by 
assuring the Ambassador that he intended to follow the same 
policy directions as his predecessor (Ernst Bergen, now 
Minister of Finance), especially with respect to the 
protection of intellectual property rights.  Discussions 
included Veras appreciation for the transformation of the 
Financial Intelligence Unit assisted by posts Resident 
Enforcement Advisor, his support for the INL-funded 
projects with the IPR enforcement unit and statistics 
center, and DOD assistance to publicize an IPR tip-line. 
Minister Vera came across as engaging and serious, and we 
expect the excellent relations weve had with the MIC to 
continue.  Also discussed was a recent draft law imposing 
new requirements on airlines which runs counter to GOP 
policies favoring competition and the free market. End 
Summary. 
 
3.  (U) On May 31, Ambassador, Econcouns and Resident 
Enforcement Advisor (REA) called on new Minister of 
Industry and Commerce Raul Vera.  Minister Vera included 
ed 
the new Vice Minister of Industry, Raul Cano, the Director 
of Intellectual Property, Astrid Weiler, and the two 
members of the IPR enforcement unit (UTE) in the meeting. 
As noted reftel, Minister Vera replaced former Minister 
Bergen, who became the Minister of Finance after the 
resignation of Dionisio Borda (reftels).  Vera was the 
President of the Central Bank from late 2001 to late 2002, 
and spent the last few years doing consulting work in the 
Dominican Republic for the United Nations. 
 
4.  (SBU) Vera started off by assuring the Ambassador that 
he intended to follow the same policy directions as his 
predecessor, especially with respect to the protection of 
intellectual property rights.  He noted that he had already 
met with two members of the Supreme Court and had a meeting 
scheduled for the following day with the Attorney General 
to build relationships and underscore the importance of 
close cooperation. 
 
5.  (SBU) The Ambassador described the excellent work of 
the REA in building up the capacity of Paraguays Financial 
Intelligence Unit (FIU).  Vera had met with the FIUs 
director and said he was amazed at the tremendous 
difference between the dysfunctional FIU he knew as Central 
Bank President several years ago, and the well-trained and 
equipped unit that exists now.  Vera said he fully supports 
the draft money laundering law before Congress and had 
discussed it with the President of the Supreme Court. 
 
6.  (SBU) The Ambassador and Minister Vera discussed the 
two INL-funded projects to support the UTE and the 
Ministrys statistical unit (CEPI).  Vera strongly supports 
both and thanked the USG for its cooperation and resources. 
Ms. Weiler noted that the CEPI project is progressing and 
that the Attorney General supports the project, which will 
directly involve the Public Ministry in the collection of 
data on the status of prosecutions of IPR violators.  She 
also expressed interest in pursuing IPR training that has 
as 
been discussed with Econcouns, and she relayed the Attorney 
Generals interest in arranging the training as well.  UTE 
has up to 18 names for possible additions to the unit, but 
noted that work on the units office space needs to be 
completed before new personnel can come on board. 
Engineering work is ongoing. Ambassador urged the MIC team 
to screen candidates to fill UTE vacancies now so that they 
could be vetted by a U.S. polygrapher scheduled to arrive 
in July. 
 
7.  (SBU) The Ambassador briefed Minister Vera on DODs 
MIST program of assistance with media campaigns.  Post 
had had discussions with the previous Vice Minister of 
Industry about developing a marketing campaign for an IPR 
tip-line that the MIC had planned to establish.  Vera 
expressed interest in continuing with the project. 
 
8. (U) Vera expressed interest in having the next Joint 
Council on Trade and Investment (JCTI) meeting as soon 
as possible in order to preserve momentum.  He noted his 
 his 
concern about the enormous bilateral trade imbalance and 
expressed hope for measures that could facilitate greater 
Paraguayan exports. 
 
9. (SBU) In a subsequent telcon, Ambassador expressed 
concern to Vera about a draft law passed by the Senate two 
days earlier which affects American Airlines and other 
carriers (N.B. The draft law imposes a requirement that the 
airlines pay travel agencies (6%) six percent  or more of 
the value of tickets.)  Ambassador stressed that this draft 
law is contrary to GOP stated objectives, as well as recent 
steps such as open skies agreements and allowing major 
increases in fuel prices, to foster free markets and 
greater competition.  Ambassador noted that American 
Airlines had told him it was considering pulling out of the 
Paraguayan market.  Ambassador noted that he had also 
raised this issue with the Presidents economic advisor 
Carlos Walde and Finance Minister Bergen, noting that AA is 
one of the GOPs larger taxpayers.  Vera (as well as Walde 
lde 
and Bergen) agreed with the Ambassador that the draft bill 
runs counter to GOP policy to strengthen free markets and 
promote investments and they would attempt to prevent it 
from becoming law. 
 
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Comment 
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10.  (SBU) Minister Vera came across as engaging and serious, 
and we expect the excellent relations weve had with the 
MIC to continue.  After the meeting, the new Vice Minister 
of Industry told Econcouns that he looked forward to 
maintaining the same close working relationship that 
existed with his predecessor, Jorge von Horoch (now Vice 
Minister of Economy at the Ministry of Finance). 
 
KEANE