US embassy cable - 05ASUNCION1331

UNCLAS SECTION 01 OF 02 ASUNCION 001331 
 
SIPDIS 
 
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, PA, SNAR, TBIO 
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, OCT. 16 - 
OCT. 22 
 
 
 1.(U) Summary 
 -- Paraguay Reacts to Transparency International Report 
 -- Paraguayan Government Takes Measure Against Avian Flu 
 -- Basket Made From Cocaine Seized by Senad Agents 
 -- Crashed Aircraft found with Cocaine and Weapons 
 
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Paraguay Reacts to Transparency International Report 
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2. (U) Paraguay remains the Latin American country perceived 
to be the most corrupt (after Haiti), according to a report 
released by Transparency International Index based in London. 
Government officials maintained that since President Duarte 
took office his administration has made policy changes to 
address corruption. Some opposition leaders claimed that, 
while Paraguay (especially the Colorado-led GOP) is corrupt, 
it is no worse than Brazil and Argentina.  They added that 
Paraguay is singled out due to its weakness.  In March 2005, 
President Duarte and Transparency International Paraguay 
Chapter signed an agreement allowing Transparency 
International Paraguayan branch's participation in the 
control of government programs and projects. COMMENT: 
Although Paraguay,s 2005 rating is one of the lowest in the 
region second only to Haiti in the Western Hemisphere, 
Paraguay has improved its rating in the Index over the last 
two years, Post will report further on TI report septel, 
including 0.8 point improvement over last year (on a scale of 
10) END COMMENT. 
 
 
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Paraguayan Government Takes Measures Against Avian Flu 
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3. (U) On 10/18, Manuel Barboza, director of the National 
Service for Quality and Animal Health (Senacsa), announced 
that the government is taking measures against the Avian Flu 
threat in the region. Barboza stated that Paraguay has five 
years of experience in carrying out control measures to 
prevent this type of illness from entering the country. 
According to reports, steps have been taken to reinforce all 
Customs entry points and to check all the food brought in by 
airlines into the country to prevent this illness.  Barboza 
also announced that Paraguay will attend the meeting on Avian 
Flu organized by the Southern Cone Permanent Veterinary 
Committee to be held this week in Montevideo. The purpose of 
the meeting is to assess the avian flu case(s) in Colombia 
and the foot-and-mouth disease outbreak in Brazil.  Other 
participating countries include Argentina, Bolivia, Brazil 
and Uruguay. 
 
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Baskets Made From Cocaine Seized by SENAD Agents 
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4. (U) On 10/19, National Anti-Drug Secretariat (SENAD) 
agents seized 6.98 kg of cocaine during a routine check at 
Silvio Pettirossi International Airport in Asuncion. The 
agents seized the cocaine with the help of an INL-funded 
canine unit as a courier traveling to England, sought to 
board his flight. According SENAD officials, the 25 baskets 
appeared to be made from cane but the cane was actually paper 
impregnated with cocaine and carefully varnished. According 
to SENAD investigators, the two boxes that carried the 
cocaine were sent from Cuidad del Este. 
 
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Crashed Aircraft found with Cocaine and Weapons 
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5. (U) On 10/13, a local farm worker discovered a small 
single engine aircraft on a farm in the department of 
Concepcion, 150 miles northeast of Asuncion and reported the 
finding to local authorities.  Inside the plane, Anti-Drug 
Secretariat (SENAD) agents found the remains of the pilot, 
 
SIPDIS 
Erwin Bejarano Gandarrillas, a 45 year-old Bolivian man, in a 
very advanced state of decomposition.  In addition, they 
discovered 51 packs of cocaine weighing 47 kg, 20 rocket 
grenades, 11 automatic rifles and ammunition.  All evidence 
that did not represent a risk to the agents involved in the 
investigation was taken to the local Public Ministry office 
in the city of Yby Yau.  All other evidence, such as rocket 
grenades that represented a risk, were left behind for 
experts to handle and investigate. 
 
6. (U) SENAD is working on several hypotheses regarding what 
happened to this plane and its final destination.  SENAD 
agents believe that the plane could have crashed about a year 
ago according to the evidence collected.  According to a 
local press report, the evidence indicates that the plane 
departed from Bolivia enroute to unknown areas in the 
department of San Pedro or Amambay, where the drugs would 
have been transferred to Brazil for commercialization.  A 
SENAD official conjectured the weapons were destined for the 
FARC, for Brazilian drug gangs in Favelas, or Paraguayan 
radical groups or criminals.  The Colombian Embassy is 
examining a possible FARC connection. 
KEANE