US embassy cable - 05ASUNCION1219

UNCLAS SECTION 01 OF 02 ASUNCION 001219 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR 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, PREL, ECON, MASS, MARR, KDEM, KJUS, PA 
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, SEPTEMBER 
17-25 
 
REF: A. ASUNCION 01047 
 
     B. ASUNCION 00412 AND PRECEDING 
 
1. (U) Summary: 
 -- Colorado Deputy Receives Light Sentence 
 -- Dissident Liberals Return to the Fold 
 -- Congress Approves Controversial Expropriation 
 -- Youth March to Protest U.S. Military Presence 
 -- MEDRETE Sends Message of Hope 
 
--------------------------------------- 
Colorado Deputy Receives Light Sentence 
--------------------------------------- 
1. (U) On 9/18, Judge Silvio Flores of Ciudad del Este 
imposed a suspended sentence on Colorado Deputy Julio Colman, 
who was embroiled in a scandal in early February involving a 
suspect load of timber and threats to a prosecutor (ref B). 
The Chamber of Deputies voted to strip Colman of his immunity 
from prosecution in March, permitting Environmental 
Prosecutor Maria Bernarda Alvarez to investigate him on 
charges of trafficking in timber.  A plea-bargain arrangement 
suspends Colman's sentence but requires him to plant 5,000 
trees in Curuguaty Department within one year.  Several 
lawyers, who preferred to remain anonymous, reportedly 
accused the prosecutor and the judge of giving in to 
political pressure and a bribe. 
 
2. (SBU) Emboff met with Martha Ferrera, a member of 
"Citizens Against Immunity," to discuss the judge's decision. 
Ferrera noted that the sentence was aimed at redressing the 
loss of trees caused by illegal logging, but expressed 
disappointment that the press did not play up the fact that 
Colman committed a crime and pleaded guilty.  The group plans 
to organize demonstrations and run advertisements alerting 
citizens to Colman's guilty plea.  (COMMENT: While the 
sentence is disappointing, it is noteworthy that Congress 
voted to lift Colman's immunity.  END COMMENT.) 
 
------------------------------------- 
Dissident Liberals Return to the Fold 
------------------------------------- 
3. (U) On 9/22, dissident PLRA senators Candido Vera Bejarano 
and Modesto Luis Guggiari, who were members of the so-called 
"multiparty bloc," decided to return to the PLRA fold, 
depriving the Colorado Party of an absolute majority in the 
Senate.  According to the national press, Vera and Guggiari 
decided to return to the PLRA bloc in fear of being expelled 
from the party.  Vera told the press that reason for his 
return to the PLRA bloc was to organize an opposition 
alliance for the municipal elections in 2006 and the 
presidential elections in 2008.  He added that the opposition 
is working on a similar shift in the lower house of Congress. 
 Deputy Luis Carlos Neumann confirmed his intentions of 
returning to the PLRA bloc. 
 
--------------------------------------------- 
Congress Approves Controversial Expropriation 
--------------------------------------------- 
4. (U) On 9/22, the Chamber of Deputies approved the 
expropriation of 52,000 acres in Puerto Casado (ref A).  On 
9/24, President Duarte announced that he had signed the 
expropriation bill into law.  The land belongs to the 
Victoria SA company headed by Korean Reverend Sun Moon.  Days 
prior to the Chamber,s decision to approve the 
expropriation, the company offered the government 10,000 
acres for the citizens of Puerto Casado and 1,000 head of 
cattle to start a new cooperative in the city.  They also 
committed to make short-term and long-term investments in 
Puerto Casado, in an attempt to avoid the expropriation. 
 
5. (SBU) COMMENT: Arguments for and against the expropriation 
covered the spectrum.  Rafael Filizzola, a member of the 
socialist Country in Solidarity Party, asserted that Congress 
had a "constitutional and moral obligation" to expropriate 
the land and put an end to "speculation" in Paraguay.  Others 
countered that the expropriation would violate the 
government's obligation to protect private property, foreign 
investment, and jobs.  Colorado Deputy Oscar Salomon went 
father, asserting that the expropriation would be subject to 
constitutional challenge based on the government's duty to 
protect the nation's woodlands.  END COMMENT. 
 
--------------------------------------------- 
Youth March to Protest U.S. Military Presence 
--------------------------------------------- 
6. (U) On 9/17, hundreds of youth protested the presence of 
alleged "U.S. Marines" in Paraguay.  The majority of the 
protesters were university students.  The theme of the 
protest was "Yankees, Go Home."  According to press reports, 
the students burned three U.S. flags during the march, as a 
sign of protest against the presence of U.S. troops in the 
country.  The third flag was burned in front of a McDonald,s 
restaurant.  The march concluded with speeches against the 
U.S. military presence in the country. Initially, the day of 
the march there were US aid personnel in Paraguay to 
participate in MEDRETE exercises.  In general, approximately 
35 military medical personnel visit Paraguay from 2-3 weeks 
to participate in the exercises.  False accusations of a 
planned U.S. base on long-term military presence persist in 
the country. 
 
----------------------------- 
MEDRETE Sends Message of Hope 
----------------------------- 
7. (U) On 9/10, a team of 35 medical professionals from the 
Texas Army Reserve arrived in Paraguay to provide medical 
care for thousands of Paraguayans in the Department of 
Neembucu, located approximately 240 miles southwest of 
Asuncion.  The MEDRETE team provided medical services in 
several locations with the last stop in Pilar, the capital 
city of Neembucu.  The services included optical and dental 
care, and veterinarian medical services.  The team 
distributed 900 pairs of donated eye glasses.  During their 
10-day exercise, the team provided health care to 
approximately 4000 patients, and about 6000 animals.  They 
completed their work on 9/21. 
KEANE