VZCZCXYZ0000
OO RUEHWEB

DE RUEHAC #0333/01 1422136
ZNR UUUUU ZZH
O 212136Z MAY 08
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6927
INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY
RHMFISS/USSOCOM MACDILL AFB FL PRIORITY
RHMFISS/HQ USSOUTHCOM MIAMI FL PRIORITY

UNCLAS ASUNCION 000333 
 
SENSITIVE 
SIPDIS 
 
STATE WHA/BSC KBEAMER 
 
E.O. 12958: N/A 
TAGS: ECON PGOV EFIN PREL PA
SUBJECT: A TEST OF LUGO'S LEADERSHIP: LAND INVASIONS 
 
REF: ASUNCION 1449 (2004) 
 
¶1. (SBU) SUMMARY: In the weeks since the April 20 national 
elections, landless peasant groups have invaded properties in 
the northeastern part of the country.  The San Pedro 
Department, where President-elect Fernando Lugo served as 
bishop, is at the center of the issue with about 730 families 
invading roughly 9,300 hectares of land.  Lugo assured civil 
society groups May 13 that his administration will work to 
secure land for all, and said that land invasions should only 
be a "last resort" when government institutions fail. 
Landless peasant invasions are a recurring issue; similar 
events transpired in 2003 and 2004 (reftel). Lugo is 
sympathetic to the landless' claims, but he also sends 
reassuring signals to the private sector about the 
inviolability of private property rights. The Colorados and 
the Liberals have publicly affirmed the sanctity of private 
property.  Lugo needs a solution that responds to the 
peasants' demands without undermining private property 
rights. However, until August 15, the issue is squarely on 
President Duarte's desk. END SUMMARY. 
 
---------------------------------- 
LAND INVASIONS AND LUGO,S RESPONSE 
---------------------------------- 
 
¶2. (U) In the weeks since the April 20 national elections, 
landless peasant groups have invaded properties in the 
northeastern part of the country.  The San Pedro Department, 
where President-elect Fernando Lugo served as bishop, is at 
the center of the issue with about 730 families invading 
roughly 9,300 hectares of land (14 different properties). 
Invasions have also been reported in the Departments of 
Itapua and Misiones (about 340 families and roughly 5,400 
hectares on 6 different properties).  There have been clashes 
during the invasions, with some sporadic violence, but no 
injuries or deaths have been reported.  Police detained 90 
persons in Itapua Department May 20 after peacefully removing 
them from a property they began occupying the same day. 
 
¶3. (U) Lugo assured civil society groups May 13 that his 
administration will work to secure land for all, and said 
that land invasions should only be a "last resort" when 
government institutions fail.  The landless peasant groups in 
San Pedro are mostly from the National Coordinating Council 
of Peasant Organizations (MCNOC).  MCNOC leader Luis Arguayo 
sat with Lugo during the May 13 address.  In his speech, Lugo 
did not directly condemn land invasions, but emphasized that 
property rights are guaranteed in the Constitution. 
 
¶4. (U) Immediately after his return from the May 16 
Ibero-American Summit in Lima, Peru, Lugo completed a 
three-day tour of the Department of San Pedro May 19.  At the 
end of the tour, Lugo again addressed the groups involved in 
the invasions and emphasized his commitment to social 
justice.  Lugo recognized that there are some contradictions 
in his statements regarding the protection of private 
property and the landless' claims to land ownership.  Lugo 
said this ambiguity is reflected in the Constitution and his 
task is to harmonize both principles. (NOTE:  Both rights are 
explicit in the Constitution. END NOTE).  President Duarte, 
in turn has been mute on the land invasions; the current 
Minister of Interior referred to the invasions as "Lugo's 
problem." 
 
--------------------------------------------- ------------ 
A GHOST FROM THE PAST - LAND INVASIONS IN DUARTE,S TENURE 
--------------------------------------------- ------------ 
 
¶5. (U) Landless peasants invasions are a recurring issue; 
similar events transpired in 2003 and 2004.  Duarte's 
response in October 2003 did not directly condemn the 
invasions.  He offered his support to the landless' claims 
saying that everyone should have a piece of land, and 
exhorted the large agribusinesses to share their wealth and 
land with the less fortunate, poorer rural farmers.  From 
2003 to 2007, the state-owned National Institute for Rural 
Development and Land (INDERT), formerly known as the Rural 
Institute (IBR), purchased and distributed 187,477 hectares 
throughout the country (reftel). 
 
¶6. (U) The majority of peasants in Paraguay have small 
parcels of land.  As described in reftel, the real issues are 
unemployment, poverty, a legacy of corruption and ineptitude 
in allocation of land, archaic agro-productions practices, a 
severely deficient legal system, and the lack of titles, just 
as was the case in 2004.  An outdated and obsolete registry 
of land titles exacerbates the problem and limits the 
government's ability to implement an effective land tenure 
program. 
 
¶7. (SBU) COMMENT: Lugo is sympathetic to the landless' 
claims, but he also sends reassuring signals to the private 
sector about the inviolability of private property rights. 
The Colorados and the Liberals have publicly affirmed the 
sanctity of private property.  This issue could severely 
handicap the new administration; Lugo needs a solution that 
responds to the peasants' demands without undermining private 
property rights. However, until August 15, the issue remains 
squarely on President Duarte's desk.  END COMMENT. 
 
Please visit us at     http://www.state.sgov.gov/p/wha/asuncion 
 
Cason