US embassy cable - 05ASUNCION1121

UNCLAS ASUNCION 001121 
 
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: N/A 
TAGS: PGOV, PHUM, PREL, KCRM, ETRD, PA 
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, AUGUST 28 
- SEPTEMBER 3 
 
 
1. (U) Summary 
      -- Smells Like Drugs 
      -- Thousands Receive Medical Care 
      -- Paraguay Interested in FTA - Someday 
 
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Smells Like Drugs 
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2. (U) On August 26, the National Anti-Drug Secretariat 
(SENAD) Canine Unit detected and seized 7.3 kilograms (kg) of 
cocaine and detained Pedro Adrian Venero Murillio, a Mexican 
national.  The cocaine, with an estimated value of USD 
51,018, was woven into the clothing and found in three (3) 
suitcases.  SENAD believes the drugs were bound for the 
United States via Mexico.  According to news reports, on 
August 28, Colombian national, Julio Cesar Ramirez Gutierrez, 
was also detained in connection with Venero Murillio. 
 
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Thousands Receive Medical Care 
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3. (U) On August 29, medical professionals from the New York 
Air National Guard began the third Medical Readiness Exercise 
Training (MEDRETE) this year in Paraguay.  The team of 32 
includes doctors, nurses and medical technicians with various 
skills.  They are in the Department of Caazapa, located 
approximately 146 miles east of Asuncion, and are rotating 
among 6 locations providing pediatric, OB-GYN, dental, 
optical and pharmaceutical services.  The team has seen 
approximately 800 to 900 patients per day and is scheduled to 
complete its work on September 7. 
 
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Paraguay Interested in FTA - Someday 
------------------------------------ 
 
4. (U) President Nicanor Duarte Frutos arrived in Santiago, 
on August 29, for an official visit with Chilean President 
Ricardo Lagos. Both signed an agreement that will increase 
the export quota for Paraguayan meat to Chile from 7,000 
metric tons to 14,000 metric tons. They also signed a joint 
declaration on mutual cooperation, the defense of democracy, 
and the promotion of human rights. On August 30, after 
praising the "Chilean model," President Duarte was asked if 
Paraguay intended to seek a Free Trade Agreement (FTA) with 
the United States as Chile had.  President Duarte hedged a 
bit, noting that Paraguay needs to continue with its process 
of changing its economic model, and that customs revenues 
provide the majority of government revenues.  He added that 
Paraguay needs investment and additional markets for its 
exports, and that it has a lot of work ahead before the 
country is ready to assume "attitudes and commitments" like 
those of Chile.  However, he stated that one goal of his 
government's efforts is to prepare Paraguay to accept greater 
commitments in international markets.  While Paraguay 
presently views the world from its perspective as a member of 
Mercosur, he was committed to adopting a foreign policy 
tailored to Paraguay's interests.  On August 31, Duarte 
Frutos dedicated a duty-free port for Paraguay in 
Antofagasta, Chile.  Duarte told the press his country is 
contributing to the fight against narco-trafficking, 
money-laundering, and piracy in the Tri-border region. 
KEANE