VZCZCXYZ0039
RR RUEHWEB

DE RUEHAC #0318/01 1071925
ZNR UUUUU ZZH
R 171925Z APR 07
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC 5603
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 000318 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/BSC, INL/LP (JIM HIDES) 
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: PGOV PHUM PREL KWMN SMIG PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE MARCH 31 - 
APRIL 13, 2007 
 
¶1. (U) SUMMARY: 
 
-- Ambassador Inaugurates Anti-Drug Out Post 
-- Ambassador Donates Trucks to Customs 
-- Japanese Nationals Kidnapped 
-- Cabral Returns 
-- TIP: Lebanese-Paraguayan Accused of Trafficking 
 
AMBASSADOR INAUGURATES ANTI-DRUG OUTPOST 
 
¶2. (U) The Ambassador inaugurated April 11 the new National 
Anti-Narcotics Secretariat's (SENAD) helicopter hangar and 
canine facility, in the city of Pedro Juan Caballero (PJC), 
located in the Department of Amambay, on the Brazilian 
border.  The INL-funded project is designed to provide SENAD 
a forward launch pad to conduct operational activities in the 
region where much of the drug trafficking in Paraguay occurs. 
 In his speech, the Ambassador challenged the GOP to provide 
the resources and demonstrate the political will necessary to 
succeed in its fight against narcotics trafficking. 
 
AMBASSADOR DONATES TRUCKS TO CUSTOMS 
 
¶3. (U) The Ambassador donated 24 trucks April 13 to the 
Paraguayan Ministry of Finance, principally for the Customs 
office, the tax service and the Ministry's investigative 
unit.  Each of these institutions is working with USAID under 
its MCA Threshold Program.  The event garnered more than 130 
guests including President Nicanor Duarte Frutos, numerous 
cabinet members, international donors, officials from 
development agencies and other Latin American Ambassadors. 
Both the Ambassador and President Duarte remarked about the 
progress made thus far but underscored that much more needs 
to be done if Paraguay is to achieve the objective's of its 
ambitious institution building and anti-corruption program. 
President Duarte conceded there is widespread corruption in 
government but blamed the private sector for offering bribes 
in the first place. 
 
JAPANESE NATIONALS KIDNAPPED 
 
¶4.  (SBU) Japanese nationals Hirokazu Ota and Sawako Takayama 
were kidnapped April 1 near the city of Caaguazu, Paraguay -- 
150 km east of Asuncion.  Ota is the President of Victoria 
S.A. and the leader of the Unification Church in Paraguay, 
while Takayama is employed as Ota's secretary.  Victoria 
S.A., a land management company, and the Unification Church 
are both associated with South Korean Reverend Sun Myung 
Moon.  Reportedly, as Ota and Takayama were traveling from 
Ciudad del Este to Asuncion, their vehicle was stopped and 
they were kidnapped by unidentified individuals carrying 
M-16s and wearing bullet resistant vests.  As the two 
Japanese nationals were being kidnapped, an off-duty local 
police officer and his girlfriend came upon the scene and 
were also kidnapped.  Ransom requests for the release of Ota 
initially were reported to be as high as $750,000.  On April 
10, 2007, Takayama was released unharmed.  Ota and the two 
Paraguayan nationals remain in the custody of the kidnappers. 
 Local media reporting indicates that the ransom request has 
been lowered to approximately $150,000 and that the release 
of the victims is expected within the next few days.  This 
kidnapping has attracted international attention due to the 
involvement of the Japanese nationals and Japanese media 
representatives have arrived in Paraguay to report on the 
investigation.  The April 1st kidnapping is reported to be 
the seventh kidnapping to occur in Paraguay, all of which 
appear to be financially motivated.  Local police believe the 
same criminal gang is responsible for all of the kidnapping 
activity that has occurred this year but they don't really 
know. 
 
CABRAL RETURNS 
 
¶5.  (SBU) On April 10, 2007, the Ministry of Interior 
announced that retired Comisario Principal Aristides Cabral 
has been named as a Special Security Advisor for the Alto 
 
 
Parana Department as part of a major shake-up in Ciudad del 
Este police hierarchy in wake of rising crime/kidnapping wave 
there.  Cabral was retired from the Paraguayan National 
Police in December 2006 after exhausting time in service 
without a promotion.  He has previously been publicly accused 
by the U.S. Embassy of involvement in corruption with strong 
ties to narco-traffickers.  He also has an apparently well 
deserved reputation for being ruthless -- shoot first, ask 
questions later.  Attorney General Ruben Candia reports 
criminals involved in recent kidnappings are already on run 
and crossing border into Brazil out of fear of assault by 
Cabal and his cohorts.  Cabral will report directly to the 
Minister of Interior, Rogelio Benitez, and will wield 
considerable authority over the local police commanders in 
Alto Parana.  Press reports note that a number of criminals 
have shown up recently in CDE, shot at point blank range. 
 
TIP: LEBANESE-PARAGUAYAN ACCUSED OF TRAFFICKING 
 
¶6. (U) Interpol agents arrested Mohamad Ali Awala, a 
Lebanese-Paraguayan, April 3 for allegedly producing false 
documentation and trafficking more than 800 Paraguayan 
females to Spain for prostitution.  Awala allegedly 
trafficked approximately 26 women per month for more than 4 
years, according to Teresa Martinez, the lead prosecutor on 
TIP.  Martinez also stated that Awala is detained in Tacumbu 
prison for a period of 6 months while the investigation gets 
under way. 
 
CASON