This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 03 ASUNCION 000868 
 
SIPDIS 
 
STATE FOR A/S NORIEGA, A/S RADEMAKER, PDAS DERHAM, PM P 
MURRAY AND W BROOKS 
STATE ALSO FOR T 7208 HST FRANCIS BOLTON 
STATE PASS TO USAID LAC/AA 
DOD FOR OUSD(P)/ISP/NP/ICC COL TIA JOHNSON 
NSC FOR SUE CRONIN 
SOUTHCOM FOR GEN CRADDOCK AND POLAD DAN JOHNSON 
 
E.O. 12958: DECL: 07/07/2015 
TAGS: MARR MASS PGOV PREL PINR PA KICC
SUBJECT: PARAGUAY: A TIME TO TREAD LIGHTLY ON ARTICLE 98 
 
REF: A. ASUNCION 00860 
     ¶B. ASUNCION 00669 
     ¶C. ASUNCION 00567 
     ¶D. ASUNCION 00526 
 
Classified By: Ambassador John F. Keane, reasons 1.4(b) and (d). 
 
¶1. (C) Summary and Introduction: Recent erroneous press 
reports in Paraguay and neighboring countries (ref A) are 
unhelpful to our ongoing Article 98 negotiations with 
Paraguay, which reached deadlock several months ago (refs B, 
C, D).  What currently separates us is six words, so we 
should not lose hope.  The Ambassador will discuss the issue 
again with Foreign Minister (FM) Rachid at their next 
meeting.  We may need to wait until current unfavorable press 
coverage blows over to get a good sense of how best to 
proceed.  The fact that we have several military exercises 
starting now and in the near future will retain press 
interest, as will SOUTHCOM Combatant Commander General 
Craddock's and SECDEF Rumsfeld's upcoming visits.  The GOP 
will likely be nervous about the public pressure and thus 
cautious.  As a result, the next few weeks will probably be a 
time to lay low and try to avoid debating the issue in the 
media.  To do otherwise could well lose us the permissive 
environment we have for exercises, which is valuable in its 
own right, while gaining nothing on Article 98.  On July 7, 
the Embassy issued a press release to correct some of the 
more absurd accusations that have surfaced in the press (see 
paras. 4 and 5, below).  We intentionally did not/not raise 
the ICC, but others have, and will continue to do so.  End 
Summary and Introduction. 
 
Flap Over Article 98/Immunities 
------------------------------- 
¶2. (C) Recent press in Paraguay and neighboring countries 
criticizing military exercises in Paraguay has accused us of 
everything from planning to set up a permanent base here to 
scheming to steal fresh water from the Guarani Aquifer.  An 
Argentine journalist wrote an article linking the recent 
exercise immunities agreement to Article 98 protections, 
suggesting this agreement violates a MERCOSUR commitment not 
to enter into Article 98 agreement with the U.S. and 
represented another reason to object to military exercises. 
A July 7 article in the Bolivian press claimed the U.S. 
sought to establish a base 250 kms off Bolivia's border with 
Paraguay for the purpose of watching Bolivia's oil and gas 
reserves. There have been other reports closer to the truth. 
However, as Washington looks at how to proceed in Article 98 
negotiations, we offer the following points for consideration: 
 
-- Paraguay currently offers the most permissive environment 
for exercises in the region.  That is a very valuable thing 
in and of itself which can not be taken for granted.  This 
environment could be jeopardized if we do not handle deftly 
certain issues, particularly those related to Article 98 and 
the ICC. 
 
-- FM Rachid told the Ambassador that her counterparts in 
Buenos Aires and Brasilia are very uncomfortable with the 
close military-to-military relationship between the U.S. and 
Paraguay; they would like to undo it, not only for 
ideological reasons, but because it causes them problems with 
their own Ministers of Defense, who would like to have U.S. 
exercises and cannot because those governments will not 
provide the protections the GOP offers. Ceferino Valdez, MFA 
Director of Bilateral Affairs, told the Ambassador that the 
Argentine Ambassador had sent Paraguay a note "on 
instructions from Buenos Aires" requesting it explain its 
agreement with the U.S. on exercise immunities.  Valdez 
expressed resentment over the GOA's impertinence but 
indicated the FM had not decided yet how to respond. 
 
-- FM Rachid and others defended exercise immunities by 
expressly and publicly reiterating the GOP position that it 
will not/not sign an Article 98 agreement and that nothing in 
the exercise immunities agreements interferes with Paraguay's 
ICC obligations.  We see the immunities agreements as 
protecting our troops from the ICC but do not advertise that 
interpretation. 
 
-- A few Senators reacted to the FM's remarks by requesting 
the MFA incorporate into exercise immunities agreements 
language specifying that they do not violate ICC obligations. 
 We have no new immunity negotiations coming up for another 
18 months, and the Ambassador told FM Rachid that we would 
not/not accept reopening the immunity agreement already 
negotiated and passed by the Senate.  Rachid said she had no 
intention of seeking that but told the press that it was a 
possibility to get them off her back. 
-- Further complicating things, the new President of 
Congress, for a twelve-month period, is a leftist who is 
against all U.S. exercises here and a strong ICC supporter. 
We intentionally front-loaded the negotiations to get all 
exercise permissions for 18 months through Congress before he 
took over. 
 
-- Separately, the German Ambassador to Paraguay, Horst 
Wolfram Krell, wrote a letter to one of Paraguay's leading 
newspapers "reminding" it that no country can guarantee 
immunity for crimes listed under Article 5 of the Rome Treaty 
and suggesting Paraguay incorporate a clause in future 
immunities agreements with the U.S. stating its intention to 
honor its Rome Treaty obligations.  Ambassador Keane objected 
to Krell's action, noting that it was interference in 
U.S.-Paraguayan bilateral relations.  Krell told the 
Ambassador that he had delivered that message on instructions. 
 
-- Paraguay and MERCOSUR partners adopted a declaration at 
the recent Summit committing themselves not to sign bilateral 
or multilateral agreements that would affect the 
jurisdictional basis of the ICC, particularly in connection 
to Article 98. 
 
-- Upcoming visits by SOUTHCOM Commander Craddock and a 
possible visit by SECDEF Rumsfeld will prompt another round 
of rumors and misinformation on the military exercises. 
 
Implications for US policy 
-------------------------- 
¶3. (C) We remain in negotiations with FM Rachid about the 
possibility of an exchange of notes which would both give us 
Article 98 protections and allow the GOP to continue to say 
it had not/not signed an Article 98 agreement; we are seeking 
a "non-agreement" "arrangement" open to diverse 
interpretations.  However, all of the above suggests we have 
entered a delicate stage for Article 98 negotiations.  First, 
the GOP is on record, in public and with its neighbors that 
it will not sign an agreement; to do so would seem a craven 
surrender to U.S. pressure.  Second, pushing ahead the 
Article 98 debate could well lose us the permissive 
environment we have for exercises which is valuable in its 
own right.  Post recommends a cooling period before resuming 
negotiations in earnest allowing for press and public 
interest in the military exercises to die down. 
 
Press Release 
------------- 
¶4. (U) On July 7, the Embassy issued the following press 
release to respond to some of the more absurd accusations 
that have surfaced in the press: 
 
Begin text. 
 
The media and others in nearby countries have made statements 
about U.S.-Paraguayan military cooperation that are not true 
and have absolutely no basis in fact.  The truth about some 
of the more ridiculous accusations is as follows: 
 
-- The U.S. has absolutely no intention of establishing a 
military base anywhere in Paraguay. 
-- The U.S. has no intention to station soldiers for a 
lengthy period in Paraguay. 
-- The U.S. has no designs of any kind on Ciudad del Este, 
except that we are supporting programs to create jobs for 
Paraguayans there. 
-- The U.S. has no interest in the Guarani Aquifer, except 
that we hope it will be a resource which assists the 
prosperity and well being of the inhabitants in its 
geographic proximity. 
 
With respect to the recent accord between the US and 
Paraguay, approved by the Paraguayan Congress, for a number 
of short-term, joint military training exercises, the truth 
is that: 
 
-- The U.S. and Paraguay have been conducting similar 
exercises for many years; there is nothing new in these. 
-- Small numbers of US personnel, generally 10 to 20 persons, 
will train with their Paraguayan military colleagues during 
periods of two to six weeks.  No U.S. soldiers will be 
deployed for an extended period of time, and there will never 
be more than a few dozen U.S. service members in Paraguay for 
longer than 45 days. 
-- Among the first exercises are humanitarian medical 
assistance to thousands of needy campesinos and others in the 
Departments of Canindeyu, Caazapa and Neembucu. 
-- Several other short-term exercises for training of various 
types will take place at different times in various locations 
between now and December 2006.  Again, none of the training 
lasts more than 45 days. 
-- Similar exercises for training occur routinely between 
U.S. armed services and the militaries of many other 
countries in Latin America, as they have for decades.  Their 
purpose in all countries is to enhance the capabilities of 
the Latin American and U.S. militaries, and, in many cases, 
to provide humanitarian assistance to local populations. 
-- These exercises for training are not linked to any other 
assistance being provided by the U.S. government. 
 
End Text. 
 
¶5. (U) FM Rachid told the Ambassador she would release a 
similar statement, but adding that Paraguay had not signed 
any agreement with any country that violated its obligations 
under the Rome Treaty. 
KEANE