VZCZCXYZ0000
RR RUEHWEB

DE RUEHAC #0435/01 1452003
ZNR UUUUU ZZH
R 252003Z MAY 07
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC 5781
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 000435 
 
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 JOSE CARDENAS 
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 PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE MAY 19-25, 
2007 
 
REF: 05 ASUNCION 1047 
 
¶1. (U) SUMMARY: 
 
-- San Pedro; Concepcion Welcome Ambassador 
-- Paraguay free of Foot and Mouth Disease with vaccination 
-- IPR Customs Conference held in Asuncion 
-- Senate Annuls Land Grab 
-- SOCSOUTH Commander Visits Paraguay 
-- PolOff Tours Chaco 
 
SAN PEDRO; CONCEPCION WELCOME AMBASSADOR 
 
¶2. (U) During a visit to the San Pedro and Concepcion 
Departments, the Ambassador delivered a National Cancer 
Coalition (NCC) donation of 1,000 doses of anti-parasite 
medicine to Concepcion Bishop Zacarias Ortiz.  Ortiz told the 
Ambassador that people were losing confidence in the 
government's ability to address socio-economic issues.  The 
Ambassador also met with Governor Ramonita Mendoza, of 
Concepcion, who praised USG support to the Department through 
MEDRETE and New Horizons exercises (they want them back!). 
Mendoza also mentioned the important and active contribution 
made by Peace Corps volunteers and USAID. 
 
¶3. (U) The Ambassador visited USAID/Paraguay Vende sesame 
production sites.  Industry producers noted that price is a 
big concern for producer associations, particularly in the 
San Pedro area.  They stated a lack of planning and support 
from the government and a desire for more technical 
assistance from Paraguay Vende on price and techniques, 
diversification, and marketing for their products. 
 
PARAGUAY FREE OF FOOT AND MOUTH DISEASE WITH VACCINATION 
 
¶4. (U) The World Animal Health Organization (OIE) renewed 
Paraguay,s certification as a country free of foot and mouth 
(FMD) disease with vaccination at its General Assembly 
meeting in Paris on May 22.  Paraguay,s beef sector has been 
the fastest growing sector of the economy in recent years, 
and Paraguay exported USD 418 million worth of beef products 
in 2006.  The Paraguayan government hopes the renewal of the 
status will keep existing markets open and help to open new 
ones.  Currently over 35 markets are open for Paraguayan 
beef.  The OIE will continue to closely monitor a 15 
kilometer strip around Paraguay given FMD outbreaks in recent 
years in border areas of Argentina, Brazil and Bolivia. 
Paraguay has applied to USDA for permission to export beef to 
the US and technical discussions are ongoing. 
 
IPR CUSTOMS CONFERENCE HELD IN ASUNCION 
 
¶5. (U) Post hosted an IPR enforcement conference for 
tri-border customs officials in Asuncion on May 21 and 22. 
The substance of the conference was organized by the US 
Patent and Trademark Office (USPTO) which recruited European 
Union participation.  The EC Customs Attache, the EC Deputy 
Chief of Mission from Montevideo and a Spanish customs 
official participated.  The conference was organized as a 
series of roundtable discussions on issues such as risk 
assessment, international best practices, and cross-border 
cooperation.  The Argentine delegation failed to show up but 
the Paraguayan and Brazilian delegations participated 
enthusiastically.  Both delegations expressed a commitment to 
combating IPR crime, but emphasized the paucity of resources 
available.  Both delegations were receptive to additional 
training in the future, particularly training aimed at 
helping line inspectors identify counterfeit products. 
 
SENATE VOTES ANNUL LAND GRAB 
 
¶6. (U) The Senate approved a bill, by a 3 vote margin (23 yea 
and 20 nay), annulling the expropriation of 52,000 hectares 
of the property owned by Victoria S.A., headed by Korean 
Reverend Sun Myun Moon, in Puerto Casado.  The legislation 
also accepted Moon's donation of 30,000 hectares.  The 
 
 
Chamber of Deputies must now vote to approve the donation 
before it can be sent to President Duarte. (NOTE: In August 
2005, the government expropriated the land claiming that it 
was not being productively used. (reftel)  If the land is 
expropriated the government, by law, must pay the land owner 
fair market price for the land - no funds had been identified 
to pay for the expropriation which was signed by President 
Duarte in September 2005. END NOTE.) 
 
SOCSOUTH COMMANDER VISITS PARAGUAY 
 
¶7. (U) General Charles Cleveland, SOCSOUTH Commander, visited 
Paraguay May 21-23 to inspect the progress of training and 
equipping of the Paraguayan Immediate Reaction Detachment, 
formerly known as the Counter-Terrorism Unit.  Cleveland also 
met with Armed Forces Commanding General Bernardino Soto 
Estigarribia and Army Commander General Gomez to discuss 
future opportunities for training and coordination.  Soto and 
Gomez expressed their thanks for the support from SOCSOUTH 
for renovating the barracks and headquarters of the IRD as 
well as the training. 
 
POLOFF TOURS CHACO 
 
¶8. (U) PolOff travelled to Mariscal Estigarribia, Filadelfia 
and Loma Plata, in the Boqueron Department May 21-22 to 
discuss political and socio-economic issues with political 
officials and local activists.  Governor David Sawatsky Funk 
told PolOff that the main priorities of his administration 
were education, health and sustained community development. 
He described the population as nearly 50/50 immigrants to 
indigenous (the indigenous work the farms owned by the 
largely Mennonite community).  Sawatsky noted that meats and 
milk are the top industries in Boqueron and his Department 
exports more than 40 percent of the countries meat and milk 
exports. 
 
¶9. (U) Wilfried Giesbrecht, President of DesdelChaco (a local 
NGO), discussed environmental issues and projects in the 
region.  He noted that the trafficking of wood products is a 
big problem in the region.  Giesbrecht stated that he is 
working with Argentina and Bolivia on nature protection and 
conservation projects. (NOTE: DesdelChaco is a USAID partner. 
END NOTE.) 
 
 
 
 
 
CASON