US embassy cable - 05ASUNCION917

C O N F I D E N T I A L SECTION 01 OF 02 ASUNCION 000917 
 
SIPDIS 
 
E.O. 12958: DECL: 07/18/2015 
TAGS: PREL, PGOV, PTER, SNAR, KPAO, SCUL, KUNR, PA, UNSC, UNESCO 
SUBJECT: AMBASSADOR DISCUSSES TERRORISM, MONEY LAUNDERING, 
VENEZUELA, MILITARY COOPERATION, UNSC REFORM WITH FOREIGN 
MINISTER 
 
 
Classified By: Ambassador John F. Keane for reasons 1.4 (b) and (d) 
 
1.  (C) Summary:  On July 15, I breakfasted with Foreign 
Minister Leila Rachid and we discussed ominous trends in 
Venezuela, de-legitimizing terrorism, anti-money laundering 
legislation, U.S. candidacy for the World Heritage Committee 
of UNESCO, an FBI officer in Asuncion, prospects for 
extradition from Brazil of Patria Libre Party leaders to face 
kidnapping charges, and U.S. military exercises, which 
continue to draw suspicion and critical comment among some in 
the media, while others are supportive.  End Summary. 
 
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Venezuela's Democratic Decline 
------------------------------ 
 
2.  (C) I covered in depth the talking points on 
U.S.-Venezuelan relations (State 127251).  Rachid did not 
disagree with the U.S. analysis of the gravity of Venezuelan 
trends, noting that Paraguay is particularly concerned about 
possible Venezuelan-inspired radicalism in neighboring 
Bolivia.  However, she noted that only Brazil is in a 
position to influence events in Bolivia and urged the U.S. 
and Brazil to coordinate.  In her opinion, Bolivian mistrust 
of Argentina spiked as a result of resentment over a 
perception that Argentina will increase its supplies of 
natural gas to Chile if Argentina's needs are met from other 
sources, due to recent Southern Cone energy accords.  Gas 
sales to Chile are seen as a stab in the back by some 
Bolivians, and it has undermined Argentine influence in La 
Paz, according to Rachid.  She had no suggestions about how 
to address ominous trends in Venezuela. 
 
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De-legitimizing Terrorism 
------------------------- 
 
3.  (U) I commented on the horrific London bombings, and the 
death of two dozen Iraqui children two days earlier in a 
suicide attack.  I noted how it must be obvious to the world 
the need for global intense effort to de-legitimize 
terrorism, particularly against non-military targets and to 
discourage suicide assaults.  (State 121757).  Rachid 
concurred, noting that Paraguay had issued a communique 
condemning the criminal terrorist attack which took the lives 
of innocents, adding that there needs to be a global effort 
to reach across cultural differences between the muslim world 
and other regions, an effort Paraguay would support. 
(Presumably she was referring to the recently launched effort 
by Kofi Annan, "Alliance Among Civilizations.") 
 
--------------------------------- 
Anti-Money Laundering Legislation 
--------------------------------- 
 
4.  (U) I noted that Presidential CD certification was 
approaching and that GOP efforts to control money laundering 
(M/L) is a significant component of the assessment. 
Moreover, President Duarte had given a commitment to move 
forward on M/L legislation as well as counter-terrorism 
legislation consistent with its obligations under UN 
resolutions.  M/L legislation has languished in the 
Paraguayan Congress longer than a year.  I urged Rachid to 
discuss with the President and others so that a M/L law could 
be passed by at least one house of Congress and the CT bill 
introduced to Congress within the next two months.  The 
Foreign Minister opined that it might be easier to secure 
passage now that GOP allies have control of all the key 
congressional committees as a result of the recent 
re-alignment.  She promised to explore what she could do. 
 
--------------------------------------------- ---- 
USG Candidacy for Seat on World Heritage Committee 
--------------------------------------------- ---- 
 
5.  (U) I raised our candidacy (Asuncion 889 and State 
122739) and she agreed to look into it. 
 
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FBI Office 
---------- 
 
6.  (U) I explained that the FBI has decided to open a full 
legal attache office in Asuncion, but timing remains to be 
worked out.  Meanwhile, the FBI has PCS respresentative at 
Asuncion who reports through the Buenos Aires Legatt Office. 
 
--------------------------------------------- ---- 
Extradition of Patria Libre Party leaders -- and 
Suspect Kidnappers -- Arrom and Marti from Brazil 
--------------------------------------------- ---- 
 
7.  (SBU) She reported that she had slipped over to Brazil 
for a day to press the GOB for an answer to Paraguay's 
extradition request regarding these two individuals, charged 
with involvement in a high-profile kidnapping in Paraguay. 
She was not satisfied with the GOB answer -- that the 
analysis and consideration of the case by Brazil's special 
council, CONARE, takes time -- but she has not lost hope. 
------------------ 
Military Exercises 
------------------ 
 
8.  (SBU) The Foreign Minister noted with annoyance that 
malicious domestic and foreign media continued to 
misrepresent the motivations of U.S.-Paraguayan military 
cooperation, implying or directly alleging U.S. designs on 
the region, either to seize natural resources or to intervene 
in perceived troubled areas, such as Ciudad del Este or 
Bolivia.  She sent dipnotes to the foreign ministers of all 
Paraguay's neighbors denying the basing of U.S. troops in 
Paraguay and explaining the scope of the joint military 
exercises.  The communique issued by Paraguay, sent to her 
Foreign Minister colleagues, contained the languate 
"Paraguay, as a State Party to the International Criminal 
Court, has not signed accords which imply any exception to 
the jurisdiction established by the Rome Statute." 
 
9.  (C) These exercises, and the close military cooperation 
between the U.S. and Paraguay, she went on, are useful on 
several levels.  Apart from its mutual operational readiness 
value, Paraguay is able to show a bit of independence from 
Brazil.  Bilateral pressures by Brazil are incessant, she 
complained, citing the latest whereby Brazil conditioned 
provision to Paraguay of USD 48 million in donations as part 
of a Mercosur "structural assymetries fund" on the GOP, inter 
alia, co-sponsoring the G-4 resolution (Brazil, Germany, 
India, Japan) on UNSC enlargement.  The possibility of a 
visit by Defense Secretary Rumsfeld, she said, was a very 
welcome development.  She noted that she has President 
Duarte's agreement that, if the visit firms up, the GOP would 
coordinate an announcement with the U.S.  (N.B.  She had to 
leave for another appointment before we could discuss 
implications for our Article 98 negotiations of the recent 
controversy over our military exercises and immunities for 
U.S. personnel.  End N.B.) 
 
 
KEANE