US embassy cable - 05ASUNCION1154

UNCLAS SECTION 01 OF 02 ASUNCION 001154 
 
SIPDIS 
 
SENSITIVE 
 
STATE PASS TO USAID LAC/AA 
SECDEF FOR OSD LTC DAN MCDONALD 
NSC FOR SUE CRONIN 
SOUTHCOM FOR POLAD DAN JOHNSON 
 
E.O. 12958: N/A 
TAGS: PREL, PGOV, PINR, MARR, KCRM, BR, AR, VE, CU 
SUBJECT: PARAGUAY'S VICE PRESIDENT VISITS SENATE TO EXPLAIN 
SECDEF VISIT 
 
REF: A. ASUNCION 1121 
 
     B. ASUNCION 1108 
     C. ASUNCION 1075 
     D. ASUNCION 1048 
     E. ASUNCION 1026 
     F. ASUNCION 1012 
 
Summary 
------- 
1. (SBU) Summary: On 9/7, at the "invitation" of Senate 
President Carlos Filizzola (PPS), Vice President Luis 
Castiglioni explained to Senate leaders in closed session the 
reasons for the recent SECDEF visit to Paraguay.  Castiglioni 
reiterated that there was no secret agenda behind the visit, 
such as plans to build a U.S. military base in Paraguay or to 
increase the number of U.S. troops participating in exercises 
here.  He repeated his assessment that it is in Paraguay's 
interest to seek closer ties with countries such as the U.S. 
as a means to press Mercosur partners Brazil and Argentina 
for greater concessions.  Castiglioni also clarified plans to 
open an FBI office in Asuncion.  MEDRETEs being conducted in 
rural areas of Paraguay are receiving excellent press 
coverage, which has helped improve public opinion regarding 
U.S.-Paraguayan military cooperation.  Brazil's irritation is 
a positive added benefit in the eyes of many Paraguayans. 
End Summary. 
 
Vice President "Invited" to Appear 
---------------------------------- 
2. (SBU) At the insistence of the generally pro-U.S., 
center-right opposition Beloved Fatherland Party (PPQ) (ref 
B), Senate President Carlos Filizzola of the socialist 
Country in Solidarity Party (PPS) "invited" Vice President 
Luis Castiglioni to appear before the Senate to "explain" the 
reasons for the recent SECDEF visit to Paraguay and to 
clarify the GOP's position on Mercosur.  After several days 
of public wrangling over the propriety of such an invitation, 
Castiglioni agreed to meet with Senate leaders in closed 
session.  On 9/7, he met for two hours with Filizzola, the 
rest of the Senate leadership, Senators from the ruling 
Colorado Party (ANR) and PPQ, several dissident Liberal Party 
(PLRA) Senators, and the lone National Encounter Party (PEN) 
Senator. 
 
3. (SBU) Note: No Senators from imprisoned former general 
Lino Oviedo's National Union of Ethical Citizens (UNACE) or 
the main-line PLRA attended the session.  The PLRA said it 
had other commitments.  Despite calling for the session, PPQ 
Senators Ana Maria Mendoza de Acha and Arsenio Ocampos 
Velazquez left before the it ended, apparently because it 
went longer than expected.  End Note. 
 
No Secret Agenda 
---------------- 
4. (SBU) During the meeting, Castiglioni reiterated that 
there was no secret agenda behind the SECDEF visit, such as 
plans to build a U.S. military base in Paraguay or to 
increase the number of U.S. troops participating in exercises 
here.  He also reiterated that the GOP did not plan to break 
ties with Venezuela or Cuba, despite U.S. concerns that Hugo 
Chavez and Fidel Castro were attempting to exert greater 
influence over the region (refs C, D, and E).  As she left 
the session, Mendoza de Acha told the press that 
Castiglioni's explanation of the visit was "coherent," but 
that the secrecy in which the visit was shrouded left doubts 
in her mind as to whether Castiglioni was completely 
forthcoming.  She added that PPQ would like a written report 
on the visit from the Vice President's office. 
 
Irritated with Brazil and Argentina 
----------------------------------- 
5. (SBU) Much of the discussion during and after the meeting 
focused on the GOP's position on Mercosur.  Castiglioni 
stressed that Paraguay had no plans to abandon Mercosur, but 
that Brazil and Argentina's disregard for Paraguay's 
interests continued to irritate the GOP.  (Comment: 
Castiglioni commented that Brazil and Argentina treated 
Paraguay as if it were their "back yard," a criticism often 
directed at the U.S.  End Comment.)  Castiglioni repeated his 
assessment that it is in Paraguay's interest to seek closer 
ties with non-Mercosur countries as a means to press Brazil 
and Argentina for greater concessions, and stated that 
seeking closer ties with the U.S. was part of that strategy. 
 
FBI Here to Help 
---------------- 
6. (SBU) Castiglioni's recent announcement that the FBI would 
open an office in Asuncion led to further speculation and 
misinformed public debate about U.S. intentions in Paraguay 
and the region.  During the 9/7 meeting, Castiglioni 
clarified that the FBI office would be part of the U.S. 
Embassy, and that Legal Attaches assigned to it would be here 
to advise and train Paraguayan law enforcement officers, as 
opposed to usurping Paraguayan authorities' police powers. 
 
7. (SBU) Note: The DCM spoke to the press about this issue 
the same day, noting that Castiglioni requested that we 
establish a LEGATT office during his recent visit to 
Washington, for purposes of increasing cooperation on 
security matters and providing training for Paraguayan 
authorities.  The DCM further noted that Brazil also has law 
enforcement officials attached to its embassy in Asuncion, 
and that such law enforcement liaison is normal.  End Note. 
 
MEDRETEs Having a Positive Effect 
--------------------------------- 
8. (SBU) U.S. military Medical Readiness and Training 
Exercises (MEDRETEs) being conducted in rural areas of 
Paraguay (refs A and F) are receiving excellent press 
coverage, due in large part to the efforts of the Embassy's 
Public Affairs Office (PAO).  Coinciding with the VP's report 
to Congress, PAO arranged for dozens of journalists from the 
country's four major dailies and four television networks to 
cover the Ambassador's visit to a MEDRETE in the Department 
of Canindeyu in early August, and similar coverage of the 
DCM's visit to a MEDRETE in the Department of Caazapa in 
early September.  Coverage of these successful exercises has 
generated positive public opinion regarding U.S.-Paraguayan 
military cooperation.  As more people learn about the 
benefits MEDRETEs deliver to the country's rural poor, press 
reports and editorials are becoming increasingly positive, 
and those who continue to criticize our bilateral military 
cooperation are being put on the defensive.  Brazil's clumsy 
objections have boomeranged, with many Paraguayans seeing 
Brazil's irritation as an added benefit. 
KEANE