US embassy cable - 05ASUNCION905

UNCLAS SECTION 01 OF 02 ASUNCION 000905 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR WHA/PPC MIKE PUCCETTI AND DRL/IL ARLEN WILSON AND 
LAURA HOLT 
STATE PLEASE PASS TO USAID LAC/AA 
DEPT OF LABOR FOR ILAB TINA FAULKNER AND LAURA BUFFO 
TREASURY FOR OSIA MAUREEN WAFER 
TREASURY FOR OTA WARFIELD, VAN KOCH, MILLAR 
NSC FOR SUE CRONIN 
SOUTHCOM FOR POLAD DAN JOHNSON 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, PHUM, PINR, ELAB, KJUS, PA 
SUBJECT: PARAGUAY: AMBASSADOR CALLS ON NEW JUSTICE AND 
LABOR MINISTER 
 
REF: ASUNCION 00711 
 
1. (U) Summary: On July 7, the Ambassador called on Ruben 
Candia Amarilla to congratulate him on his selection as 
Paraguay's new Minister of Justice and Labor (reftel). 
During the meeting, the Ambassador highlighted child labor, 
prison conditions, and lengthy delays in the Paraguayan 
judicial system as areas of interest to the USG, and 
underscored the need for reform of Paraguay's rigid labor 
code to attract investment.  Candia agreed that each of those 
areas was a priority for the GOP.  Candia also raised human 
rights-related concerns about indigenous workers employed by 
cattle ranchers in the Chaco on a "work for food" (no salary) 
basis.  End Summary. 
 
Child Labor and Prison Conditions 
--------------------------------- 
2. (U) The Ambassador highlighted child labor and prison 
conditions as two areas of interest to the USG from a labor 
and human rights perspective.  Candia indicated that those 
were also priorities for him and the GOP.  He noted that the 
GOP joined the ILO convention on the worst forms of child 
labor, and highlighted the GOP's ongoing campaign to raise 
awareness with respect to the problem in Paraguay.  He noted 
that his top priority with respect to prison conditions was 
ensuring that inmates were properly fed, and shared with the 
Ambassador a report he is sending to President Duarte on 
progress the GOP has made in that and other areas since 
Duarte took office. 
 
Delays in the Judicial System 
----------------------------- 
3. (U) The Ambassador also raised the issue of lengthy delays 
in the judicial system and a related USAID project.  Candia 
agreed that the delays were a serious problem, and noted that 
the main bottleneck was in the intermediate stage of the 
process, the stage at which a determination is made whether a 
case will go to an oral trial.  He also noted that the 
95-percent conviction rate in oral trials is an indication 
that the judicial system is not functioning properly.  He 
said many judges will find a way to convict on at least one 
charge in every case, regardless of a defendant's guilt or 
innocence. 
 
4. (U) Bio Note: Candia noted that he has risen through the 
ranks of the judicial system, first as a stenographer, then 
as a lawyer and magistrate.  End Bio Note. 
 
Rigid Labor Code 
---------------- 
5. (U) Additionally, the Ambassador underscored the common 
assessment of several IFIs that Paraguay's rigid labor code 
made the country an unattractive place to invest.  Candia 
agreed, and noted that the GOP has initiated tri-partite 
discussions with the unions and the business community to 
study the problem.  Candia claimed the unions were on board, 
but that it would take a while to convince businesses to 
break away from a long tradition of informality in employment 
practices. 
 
6. (SBU) Comment: Even if the unions are engaging in 
discussions with businesses and the GOP, it might be overly 
optimistic to say that they are "on board" with GOP proposals 
for labor code reform.  In reaction to a business association 
leader's recent comments about the need for labor code 
reform, one labor leader opined that the problem was not the 
code, but rather businesses' failure to comply with it, and 
that his union "would not give a millimeter."  End Comment. 
 
Indigenous Workers 
------------------ 
7. (SBU) Prompted by the Ambassador's expressions of USG 
interest in human rights issues, Candia voiced concerns about 
indigenous workers employed by cattle ranchers in the Chaco 
on a "work for food" (no salary) basis, a situation he 
described as servitude ("peonizacion").  Candia explained 
that the ILO had recently issued a report criticizing such 
working conditions as tantamount to slavery.  Rationalizing 
to an extent, Candia noted that some of the indigenous 
workers in question would have no use for a salary anyhow, 
since there was nowhere to spend money in some of the more 
isolated, remote locations where they lived and worked. 
Nonetheless, he said, the GOP was including the issue in its 
ongoing media campaign. 
 
8. (SBU) Comment: This is the first the Embassy has heard of 
this particular indigenous problem; we will further 
investigate the matter with an eye toward next year's Human 
Rights Report.  It is worth noting that, in the context of 
Paraguay's vast informal sector, even the most progressive 
businesses and cooperatives that help the poor near their 
operations violate the labor code in many different ways. 
Systemic reform, not just enforcement, is needed. 
KEANE