US embassy cable - 05ASUNCION1498

UNCLAS SECTION 01 OF 02 ASUNCION 001498 
 
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 
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, DEC. 4 - 10 
 
REF: ASUNCION 1457 
 
1. (U) SUMMARY: 
-- President Signs Tourism Law 
-- Duarte to Run for Party President; Impeachment Proposal 
Submitted 
-- Oviedistas Hold Coordinated Protests 
 
--------------------------- 
President Signs Tourism Law 
--------------------------- 
 
2. (U) On 12/5, President Duarte signed a new Tourism Law 
setting a commission of six percent above the cost of airline 
tickets for local travel agencies.  The regulation of the law 
will fall to the Secretariat of Tourism.  The local travel 
agents' association welcomed the decision, calling it a 
victory for the local industry.  American Airlines, which 
stated during heated debate on the law that it would leave 
the Paraguayan market if the measure was enacted, has not yet 
reacted to the signing of the new law.  The local American 
Airlines representative told EconOff that she would be 
meeting with her superiors in the US during the week of 
12/12, and that she expected them to follow through with 
their plans to pull out of the Paraguayan market. 
 
------------------------------ 
Duarte to Run for Party President; Impeachment Proposal 
Submitted 
------------------------------ 
 
3. (U) On 12/5, President Duarte registered as a candidate 
for presidency of the Colorado Party in elections scheduled 
for February 19. On 12/6, following up on its threat to 
impeach President Duarte were he to bid for the Colorado 
Party presidency, the Beloved Fatherland Party (PPQ), 
submitted a proposal to the Chamber of Deputies calling for 
the impeachment of President Daurte on grounds it constitutes 
a violation of several constitutional provisions most 
prominent of which is Article 237 which prohibits the 
President from assuming another position -- public or 
private.  A special session of Congress will be held on 12/13 
to debate the issue.  The PPQ also has the support of the 
Authentic Radical Liberal Party (PLRA) and the National Union 
of Ethical Citizens Party (UNACE), but its proposal will fail 
due to the lack of votes (a motion of impeachment requires 
2/3 support in both houses of Congress).  Duarte has 
dismissed the impeachment motion as irresponsible noting he 
intends to name an ally to serve as acting Party President 
should he be elected. 
 
4.  On 12/7, Senate President Carlos Filizolla (PPS) told CDA 
that he did not believe Duarte's bid was illegal, describing 
the opposition's proposal as political grandstanding more 
than anything as even they knew they did not have the votes 
to carry their motion.  Filizzola stated that the country 
under Duarte was more stable than ever.  He argued against 
impeachment on grounds it should only be considered when the 
President was clearly implicated in illegal or corrupt 
activities. 
 
------------------------------------ 
Oviedistas Hold Coordinated Protests 
------------------------------------ 
 
5.  On 12/7, supporters of Lino Oviedo, held simultaneous 
protests in Villa Florida and Encarnacion.  In Villa Florida, 
located in the Misiones department, approximately 120 miles 
south of Asuncion, Diputado Edgar Venialgo led more than 200 
people and blocked a major roadway more than 2 hours. 
Venialgo said Oviedo should be freed and have the opportunity 
to run for the 2008 elections.  In Encarnacion, located in 
the Itapua department, approximately 230 miles southeast of 
Asuncion, Yuri Remesowsky, an Alderman in Itapua, led a 
protest.  Other local authorities attending the Encarnacion 
protest included Julian Acosta, UNACE district president, and 
Julio Hauron, an Itapua Assessor. These protests are an 
extension of demonstrations that have been held by Oviedo 
supporters in Asuncion over November calling for Oviedo's 
release from jail. Oviedo supporters have vowed to continue 
holding protests until Oviedo is freed. 
JOHNSON