US embassy cable - 05ASUNCION1066

UNCLAS ASUNCION 001066 
 
SIPDIS 
 
SENSITIVE 
 
NSC FOR SUE CRONIN 
TREASURY FOR OTA WARFIELD, VAN KOCH, MILLAR 
SOUTHCOM FOR DAN JOHNSON 
USUN FOR AMBASSADOR BOLTON FROM AMBASSADOR KEANE 
USUN FOR ERIC ROSAND, NICK ROSTOW 
 
E.O. 12958: N/A 
TAGS: PREL, KCRM, PTER, PA, UN 
SUBJECT: PARAGUAY: UN PERMREP NERVOUS ABOUT CTC ACTIVITY 
 
REF: ASUNCION 875 
 
1.  (SBU)  On August 19, I was approached at a reception in 
the Paraguayan Foreign Ministry, Amb. Eladio Loizaga, 
Paraguayan PermRep at the UN in New York.  Loizaga, in town 
for a short stay,  mentioned that he was concerned about 
possible developments related to the CTC and its engagement 
with Paraguay.  He opined that Paraguay was receiving 
conflicting messages. On the one hand the US is demonstrating 
its interest in closer relations with Paraguay, such as the 
visit of Secretary Rumsfeld, while on the other the U.S. is 
pressing Paraguay on anti-terrorism legislation.   He had 
heard that the CTC was again focusing on Paraguay in 
connection with compliance with UN resolutions. His concern 
was also related to the fact that President Duarte would be 
in New York in September and would be a Vice President of the 
UNGA, (implying that he did not want to see Duarte put in an 
awkward situation).  He said he hoped to meet with US PermRep 
John Bolton during the coming week to explain Paraguay's 
situation.  He claimed that he did not understand the reason 
for such focus since Paraguay has done as much as Brazil, 
Argentina and many other countries. 
 
2.  (SBU)  Disregarding his attempt to link this issue to our 
warming bilateral relationship,  I replied that, regardless 
of what Brazil and Argentina have done -- whose situations I 
had not studied -- Paraguay is tardy in fulfilling its 
international obligations.   Moreover, the Paraguayan 
President, I noted, had committed to seeking enactment of 
anti-money laundering legislation (AML), languishing in 
Congress for 15 months already, as a precursor to presenting 
and getting enacted new anti-terrorism legislation.  We have 
seen no movement nor serious Executive Branch efforts to 
engage with Congress on this legislation.  I suggested that, 
with the Executive now enjoying the support of a coalition of 
parties in both houses of Congress, it would not be 
unreasonable to expect passage of the AML in at least one 
house by September, and presentation of the anti-terrorism 
law, so that there would be some chance of achieving 
enactment of both this year. 
 
3.  (SBU)  Comment:  Post appreciates the efforts of USUN to 
bring more CTC pressure to bear upon Paraguay for 
non-compliance with its UNSCR 1371 obligations.  We will 
build on Loizaga's nervousness about his President coming up 
for criticism on this score to seek movement on the AML draft 
already before Congress and the introduction of the CT law by 
September.  Continuing pressure from others in the 
international community, particularly the UN, is important as 
well and is less likely to lead to a natinalist backlash 
here.  End Comment. 
KEANE