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### Viewing cable 06ASUNCION1130, PARAGUAY POLITICAL AND ECONOMIC UPDATE, NOVEMBER 4

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06ASUNCION1130 | 2006-11-09 20:58 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Asuncion

`

    VZCZCXYZ0006
    RR RUEHWEB

    DE RUEHAC #1130/01 3132058
    ZNR UUUUU ZZH
    R 092058Z NOV 06
    FM AMEMBASSY ASUNCION
    TO RUEHC/SECSTATE WASHDC 5005
    INFO RUCNMER/MERCOSUR COLLECTIVE
    RUMIAAA/USCINCSO MIAMI FL//SCJ3/SCJ33/SCJ34/SOCSO LNO//
    RHEHNSC/WHITE HOUSE NSC WASHDC
    RUEATRS/DEPT OF TREASURY WASHDC
    RUCPDOC/DEPT OF COMMERCE WASHDC
    RUEAIIA/CIA WASHDC

` `

    UNCLAS ASUNCION 001130

    SIPDIS

    SIPDIS
    SENSITIVE

    STATE FOR WHA/BSC, INL/LP (JIM HIDES), AND 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

    E.O. 12958: N/A
    TAGS: PHUM PREL PGOV PA VE UR AR BR BO JA SP
    SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, NOVEMBER 4
    - 9, 2006

    REF: ASUNCION 1089

    ¶1. (U) SUMMARY:

    -- Journalists March for Enrique Galeano
    -- Paraguay Ranked 5th Worst in Latin America
    -- U.N. Tells Paraguay Ratify Arms Trafficking Protocol
    -- The Royals, Evo and Paraguay

    JOURNALISTS MARCH FOR ENRIQUE GALEANO

    ¶2. (U) The Paraguayan Journalist Union (SPP) organized a
    "March for Life" November 3 to call attention to the
    disappearance of journalist Enrique Galeano.  More than 100
    people attended the protest in the Plaza of the Disappeared,
    located adjacent to the Government Palace in Asuncion.  Nine
    months ago, Galeano was declared missing after he did not
    return home from work.  Galeano had issued numerous critical
    statements about individuals, including local Congressman
    Magdaleno Silva of the Colorado Party, on his radio station
    tying them to drug trafficking and corruption.  The SPP has
    remained very outspoken in its quest to have the government
    continue its search for Galeano and hold those responsible
    for his disappearance accountable.  The case is still under
    investigation by the Attorney General's Office.  (NOTE: The
    SPP has sought the assistance of the InterAmerican Court on
    Human Rights (IACHR) at the OAS to push the GOP to continue
    in searching for Galeano and those responsible for his
    disappearance.  In October, the IACHR sent a letter to the
    GOP requesting information about the case.  The GOP is in the
    process of responding. END NOTE).

    PARAGUAY RANKED 5TH WORST IN LATIN AMERICA

    ¶3. (U) Paraguay ranked 116 of 163 countries and remains one
    of the most corrupt countries in the world, according to
    Transparency International's Perceptions Index released
    November 6.  Paraguay's score ranked it as the 5th-most
    corrupt country in Latin America, an improvement over the
    previous year when it ranked second only to Haiti.
    Paraguay's score of 2.6 represented a 0.5 point improvement
    over last year's score on a 10-point scale and marked the
    third straight year Paraguay has improved its score.  But it
    still falls comfortably into the "rampant corruption"
    category.

    U.N. TELLS PARAGUAY RATIFY ARMS TRAFFICKING PROTOCOL

    ¶4. (U) The U.N. held a conference in June to review progress
    made on its program to address the illicit trade in small
    arms and light weapons.  As a result, the U.N. called on
    Paraguay to ratify the "Protocol Against the Illicit
    Manufacturing of and Trafficking in Firearms, their Parts and
    Components and Ammunition," which came into force in July
    ¶2005.  In 2001, U.N. Member States unanimously adopted the
    protocol, committing themselves to collecting and destroying
    illegal weapons, adopting and/or improving national
    legislation to help criminalize the illicit trade of weapons,
    regulating the activities of brokers, setting strict import
    and export controls, taking action against violators of such
    laws, and better coordinating international efforts to that
    end. (NOTE: Paraguay's War Materials Directorate (DIMABEL) is
    responsible for controlling and registering weapons.
    However, DIMABEL does not have an operational unit capable of
    investigating illegal arms transactions and thus has not been
    active in making seizures.  On a positive note, Paraguay's
    Anti-Drug Secretariat (SENAD) is allowed to make weapons
    seizures when it can tie weapons to information acquired from
    drug traffickers.  On that basis, SENAD has seized over 1,200
    weapons in three major raids over the last three months. END
    NOTE).

    ¶5. (SBU) In its June 2006 report the U.N. Review Conference
    on Small Arms identified Paraguay as 1 of 60 countries that
    has collected and destroyed large amounts of illegal small

    arms.  However, it also noted that Paraguay, along with
    Uruguay, had not ratified the Protocol.  Other Mercosur
    countries, Brazil and Argentina, have already adopted the
    Protocol and strengthened their national legislation to
    control the illegal trade in small arms.  SENAD Minister Hugo
    Ibarra told POLOFF October 25 that the weapons are legally
    purchased by distributors and gun dealerships.  However,
    these companies, which do not do background checks on
    purchasers, resell legal and illegal weapons to criminal
    organizations, which then traffic them across Paraguay's
    porous borders with impunity. Ibarra acknowledged Paraguay's
    control over the importation and sale of weapons is extremely
    limited (reftel).  The UN just hosted a two-day conference
    here, with MFA support, to encourage Mercosur states to pull
    up their socks and clamp down on gun-running.

    THE ROYALS, EVO AND PARAGUAY

    ¶6. (U) In recent weeks, the King and Queen of Spain, Juan
    Carlos Borbon and Sofia Frederika; Japanese Prince Akishino
    Fumihito; and Bolivian President Evo Morales have all made
    state visits with President Nicanor Duarte.  The Royals met
    with Duarte to discuss migration issues as well as economic
    development and debt suspension.  King Juan Carlos offered a
    loan of USD 10 million for small businesses and offered to
    exchange USD 11 million of the Paraguayan debt of USD 37
    million for education projects.  Prince Akishino expressed
    his father's hope for further development in relations and
    commemorated the 70th anniversary of Japanese immigration to
    Paraguay.  While Evo Morales met with Duarte to continue
    dialogue to quash the concerns over the Bolivian/Venezuelan
    military agreement.  The two presidents are scheduled to meet
    again December 8 in Cochabamba during the Summit of South
    American Presidents.
    CASON

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