US embassy cable - 05ASUNCION1431

UNCLAS SECTION 01 OF 02 ASUNCION 001431 
 
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 BARBARA MOORE 
NAIROBI FOR MICHAEL FITZPATRICK 
 
E.O. 12958: N/A 
TAGS: PGOV, PHUM, PREL, ECON, PA, VE 
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, NOV. 13 - 
19 
 
 
1. (U) SUMMARY 
-- Castiglioni Vows To Continue Anti-Crime Fight 
-- Bishops Say Government Is Corrupt 
-- Vote on Ambassador to Cuba Postponed, Again 
-- Venezuelan Official Comes Unhinged 
 
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Castiglioni Vows To Continue Anti-Crime Fight 
--------------------------------------------- 
 
2. (U) Late last week, Vice President Luis Castiglioni, in 
response to recent death threats, told the press he will 
continue in the fight against organized crime. Castiglioni 
added that if criminals believe that by making such threats, 
they can stop the GOP plan to train its security forces to 
fight international organized crime, they are wrong. He 
further emphasized that the GOP will deepen its agreements, 
not only with Colombia and the United States, but also with 
other countries to help Paraguay recover its dignity as a 
nation free of transnational and international criminals. 
NOTE: This announcement by Castiglioni came during the 
Colombian counter-drug delegation visit last week.  A septel 
will follow addressing the Colombian visit.  End Note. 
 
--------------------------------- 
Bishops Say Government Is Corrupt 
--------------------------------- 
 
3. (U) At the closing of an Ecumenical Conference, on 11/11, 
Paraguayan Bishops released a statement criticizing the 
Administration for failure to address the concerns of hunger 
and poverty in Paraguay and charged that corruption is 
rampant in the public and private sectors.  The bishops also 
complained of a lack of transparency in government and 
described the Judicial Branch and the Attorney General's 
Office performances as inadequate.  In response to these 
charges by the Bishops, President Duarte, on 11/12 said the 
Bishops lacked empirical evidence and some of their 
conclusions were based on "misinformation."  He also 
indicated that his Administration has only been in office for 
two years and changing conditions in Paraguay require more 
time.  But, on 11/13, Duarte lashed out at the Bishops saying 
many of those taking a stance against his Administration now 
were participants in the celebrations of previous leaders of 
the country and suggested that they confess their failings 
"without shame."  On 11/18, VP Castiglioni met with Church 
leaders to stem the rising controversy over critical remarks 
in the press. 
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Vote on Ambassador to Cuba Postponed, Again 
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4. (U) For the second time in three weeks, Senate President 
Carlos Filizzola (Country in Solidarity Party) joined 
governing Colorado Party Senators and a dissident opposition 
Liberal Party Senator Domingo Laino in walking out of the 
Senate to deny a quorom for a vote on the nomination of as 
Paraguay's Ambassador to Cuba.  The Colorados had thought 
they had the numbers this time to confirm Luis Domingo Laino 
(Sen. Laino's son) until Colorado dissident Senator Julio 
Osvaldo Dominguez (son of Osvaldo Dominguez Dibb who is 
running against President Duarte for Colorado Party 
President) declared he planned to vote against Laino.  At 
least one Liberal Party Senator from the opposition indicated 
that the Liberals had planned to walk out to deny the 
Colorados a quorom if they had determined Laino had the votes 
to be confirmed.  Laino's confirmation has become a lightning 
rod for controversy as it is viewed as part of a deal the 
Colorados forged this past June with PPS and several 
dissident Liberal Senators. 
 
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Antics of Venezuelan Official at WIPO Course 
-------------------------------------------- 
 
5. (C) On 11/16, Astrid Weiler, Director of Intellectual 
Property, discussed with EconCouns the behavior of the 
Venezuelan delegate to the World Intellectual Property 
Organization (WIPO)-sponsored, week-long IPR course that took 
place the week of 11/6 in Paraguay.  Weiler said the delegate 
railed against the USG during her interventions, leading the 
WIPO organizers to remind her on more than one occasion that 
not only was the USG not represented to defend itself, but 
that her behavior was inappropriate for the proceedings.  At 
one point, according to Weiler, she actually held up a sign 
that said "NO TO FTAA." 
JOHNSON