US embassy cable - 05ASUNCION1037

C O N F I D E N T I A L SECTION 01 OF 02 ASUNCION 001037 
 
SIPDIS 
 
STATE FOR WHA/BSC AND EB/IFD/OIA 
STATE PASS TO USAID FOR LAC/AA 
STATE PASS TO USTR FOR LYANG 
NSC FOR SUE CRONIN 
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: 08/11/2007 
TAGS: PGOV, PREL, KDEM, PA 
SUBJECT: PARAGUAY CONDUCTS FIRST INTERNAL PARTY ELECTION 
WITH ELECTRONIC BALLOTS 
 
 
Classified By: Ambassador John F. Keane, For reasons 1.5 (b) and (d). 
 
 1. (U) SUMMARY : On July 17, Deputy Blas Antonio Llano won 
the internal elections of the Authentic Radical Liberal Party 
(PLRA), defeating Efrain Alegre by less than 12,000 votes. 
According to a Superior Elections Tribunal (TSJE) official, 
the election was a success and approximately 30 percent of 
the registered members voted in that election.  The President 
of the House of Deputies, in a conversation with the 
Ambassador, stated that he did not believe Llano's election 
would produce a significant impact on proceedings in 
Congress.  The TSJE official stated there are plans to use 
the electronic ballot machines in the future but that recent 
party grumbling and calls to reduce spending will pose 
challenges to TSJE's overall work.  The successful first use 
of electronic balloting for internal elections will make it 
difficult for the Colorado Party to resist this measure.  End 
Summary. 
 
----------------- 
The PLRA Election 
----------------- 
 
2.  (SBU) On August 11, PolOff discussed this election and 
its implications with TSJE Director of Public Relations, 
Liliana Benitez.  Ms. Benitez indicated the election was an 
organizational success and a foregone conclusion.  It was 
known from the very beginning that Llano would win the 
election.  This election was the first time the TSJE used 
electronic balloting machines and, of the more than 3,000 
they borrowed from Brazil, only a few malfunctioned and 
delayed the voting process in four (4) locations.  She stated 
that the borrowed machines were old but were in relatively 
good working order.  Once they obtained new batteries for the 
machines, voting continued.  Benitez also indicated there was 
no tampering with the machines. (NOTE: AMEmbassy Asuncion was 
asked to participate as observers in the PLRA primary 
elections but the offer was declined to avert any possible 
claims of interference by the USG.  End Note.). 
 
--------------------------------------------- ------- 
Chamber President Plays Down Party Leadership Change 
--------------------------------------------- ------- 
 
3. (SBU) In a meeting shortly after the July election with 
the new President of the Chamber of Deputies, Victor Bogado, 
Colorado Party (ANR), and Second Vice President Lino Aguero, 
Country in Solidarity Party (PPS), the Ambassador asked 
Bogado what impact the PLRA internal elections might have on 
the Chamber of Deputies.  Bogado did not think there would be 
any significant impact since the same three factions within 
the Liberal Party continue to jockey for power and influence. 
 He further noted, however, that the other two factions often 
align to defeat Llano's group. 
 
------------------------------------------ 
Is There a Future for Electronic Balloting 
------------------------------------------ 
 
4. (SBU) PolOff expressed the U.S. interest in free and fair 
elections, and, in this regard, queried Ms. Benitez about the 
future use of electronic balloting.  Benitez stressed that 
the TSJE intends to use the electronic balloting machines in 
all future elections because they reduce fraud but the 
Colorado Party, of which she is a member, has signaled some 
resistance.  She said that a political party has the option 
to decide whether or not to use the electronic machines for 
its internal elections.  Benitez also stated that the TSJE 
will request that Brazil provide newer machines in the 
future.  (NOTE: The TSJE only paid for the insurance on the 
machines, which was $12,000 USD. End Note.) 
 
--------------------------------- 
The President Freezes TJSE Budget 
--------------------------------- 
 
5. (SBU) On July 19, President Nicanor Duarte Frutos urged 
the TSJE "to reduce spending and not to request a budget 
extension because there are other priorities and political 
parties can wait."  Benitez indicated that this budget 
squeeze will not affect the day-to-day operations nor will it 
interfere in their plans to continue using electronic 
balloting machines in the upcoming primaries.  She said, 
however, that it will force the office to cut their 
independent contractor staff which includes about 1,500 
people.  The TSJE originally requested the extension of 82 
billion guaranis (approximately $13.7 million USD) to pay the 
political parties and extend the contracts of the 
contractors, whose contracts were set to expire on July 31. 
According to Benitez, both Chambers of Congress not only need 
to approve the budget but also seek to impose conditions on 
the spending of that budget.  Usually this means, she 
continued, the hiring of people they know for poll watching 
and other campaign related tasks.  Currently, the TSJE owes 
60 billion guaranis (approximately $10 million USD)to the 
various political parties. 
 
------- 
COMMENT 
------- 
 
6. (C) Previously the internal Colorado party elections have 
been notorious for voter fraud.  It is conceivable some 
Colorado leaders fear the cleansing effect of electronic 
balloting and the attendant damage it poses to their ability 
to manipulate results.  TSJE enjoys a reputation as a 
credible, independent institution overseeing the conduct of 
elections.  Successful employment of electronic balloting 
represents an important advance in the conduct of free and 
fair elections.  The fact that the leading opposition party 
agreed to its use may make it difficult for the Colorado 
Party to refuse.  End Comment. 
KEANE