VZCZCXYZ0000
OO RUEHWEB

DE RUEHAC #0592/01 2391250
ZNR UUUUU ZZH
O 261250Z AUG 08
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7189
INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY
RHMFISS/HQ USSOUTHCOM MIAMI FL PRIORITY
RHMFISS/USSOCOM MACDILL AFB FL PRIORITY
RHEHNCS/NSC WASHDC PRIORITY

UNCLAS ASUNCION 000592 
 
SENSITIVE 
SIPDIS 
 
TO WHA/FO CKELLY, WHA/BSC MDRUCKER, CCROFT 
 
E.O. 12958: N/A 
TAGS: PGOV ECON PREL PA
SUBJECT: LUGO STEERS MODERATE COURSE IN INAUGURATION SPEECH 
 
¶1. (SBU) SUMMARY: After taking his oath with an emphatic "I 
swear," President Fernando Lugo delineated his ideals for 
Paraguay in an emotive inauguration speech, some of which he 
delivered in Guarani. Lugo marked a strong affinity with the 
left as he emphasized the cause of the poor and the 
indigenous, but also promised to pursue "a sustainable 
economy with social equity" which would offer the business 
sector the best possible working environment.  Lugo promised 
to institutionalize Paraguay's public entities.  He said the 
indigenous will be the owners and guardians of the country,s 
natural resources and promised to improve living conditions 
for peasants, placing special emphasis on the problem of 
street children. Lugo stated that protection of the 
environment and conservation of the last remaining Atlantic 
Forest will be his passion.  He expressed hope that the armed 
forces will become a friend of the community and that the 
national police will improve security.  On health and 
education, Lugo assured his people that he is working on 
projects to improve access to government services.  Lugo, the 
"bishop of the poor," wove a careful balance between the left 
and the right, peppering his speech with a populist discourse 
but reassuring the business community that he would look out 
for its interests.  His moderate discourse steered clear of 
pro-Venezuelan or anti-American sentiments, as he focused 
almost exclusively on domestic themes.  END SUMMARY. 
 
---------- 
THE SPEECH 
---------- 
 
¶2. (SBU) After taking his oath with an emphatic "I swear," 
President Fernando Lugo delineated his ideals for Paraguay in 
an emotive inauguration speech, some of which he delivered in 
Guarani. Lugo, who ousted the Colorado Party after 61 years 
in power, took the reigns of the country in a colorful and 
symbolic ceremony (which included a 21-gun salute).  Wearing 
a white shirt without a tie and Franciscan sandals, Lugo 
talked about austerity and honesty, and emphasized that the 
days of "the Paraguay for a few, with fame of corruption" had 
ended.  On the margins of the crowd, communist and Che 
Guevara flags waved alongside large Bolivian flags (President 
Morales received the most enthusiastic ovation of all foreign 
presidents in attendance). 
 
¶3. (SBU) Lugo marked a strong affinity with the left as he 
emphasized the cause of the poor and the indigenous.  He was 
on the brink of tears when he talked about the indigenous, 
the poor and his humble beginnings as a priest.  Lugo 
reminisced about joining the church, "surrounded by his 
community and great poverty," to defend those "who history 
has thrown on the scenery of poverty and misery."  Lugo said 
that the "indigenous people, along with those Paraguayans who 
live in poverty" will be his administration's priority. He 
also said he will pursue a frontal fight against impunity and 
corruption via profound state reforms. Lugo promised to be 
implacable with those who steal from the state coffers, and 
to improve public expenditures. 
 
------- 
ECONOMY 
------- 
 
¶4. (SBU) Lugo promised to pursue "a sustainable economy with 
social equity." He spoke about an "education policy with 
emphasis on social actions to decrease economic factors that 
produce structural poverty."  He emphasized that he will 
promote dialogue between the social and business sectors to 
"reach a social pact."  Lugo also spoke about the necessity 
of introducing new business that generates opportunities and 
has direct social impact. 
 
¶5. (SBU) Lugo said that the business sector will receive his 
full support and enjoy the best working environment possible. 
 He said he will promote the creation of agricultural 
industries that further social goals as well as environmental 
protection. Lugo added that his administration will work to 
find alternatives to the export of raw materials, including 
value-added production.  Lugo stated that the communication, 
banking and service sectors will enjoy a close and decisive 
state partnership. 
 
--------------- 
PUBLIC ENTITIES 
--------------- 
 
¶6. (SBU) Lugo promised to institutionalize Paraguay's public 
entities.  He talked about efficiency, patriotism, 
transparency and responsibility by the public sector. He 
emphasized the importance of honesty because "there are not 
corrupt entities, but only workers that corrupt themselves." 
Lugo also said that party affiliation will no longer be a 
requirement to work for the government.  He further stated 
that he will find ways to eliminate state "secretismo," to 
make the public entities accountable and to improve workers' 
professionalism and skills.  Lugo indicated that change will 
be reflected in his administration's austerity and control of 
public goods to prevent abuses and illicit acquisition and 
accumulation of wealth by a few politicians while the 
majority of the population suffers in poverty. 
 
--------------- 
SOCIAL PROGRAMS 
--------------- 
 
¶7. (SBU) Lugo said that the indigenous will be the owners and 
guardians of the country's natural resources.  Lugo said that 
they will be able to enjoy and productively exploit the 
nation's natural resources.  He said the land claimed by the 
indigenous will not only be sacred but will serve as a basis 
to give constitutional protections to the less fortunate. 
Lugo threatened that "not a single white person that 
negotiates indigenous land, humiliates and persecutes the 
indigenous will enjoy the impunity he or she always had." 
Lugo added that a crime against an indigenous person will not 
go unpunished. 
 
¶8. (SBU) Lugo said that his administration will work hard to 
improve living conditions for  peasants.  Lugo also said that 
his administration will work to eliminate the so-called 
"liberated areas or dangerous zones," such as San Pedro. 
However, Lugo said, his administration will not persecute or 
discriminate against anyone for "bearing the sign of poverty." 
 
¶9. (SBU) Lugo placed special emphasis on the problem of 
street children.  He lamented the children working at 
Asuncion's busy intersections, in constant danger, to earn a 
few coins for the day.  Lugo said that he did not know how 
long it will take to fix the problem or if it will be 
possible to completely eradicate "the monster of misery that 
condemns the children," but, as with the indigenous, the 
children in misery will have the personal attention of the 
president. 
 
¶10. (SBU) Lugo pointed out that environmental protection and 
conservation of the last remaining Atlantic Forest will be 
his passion.  By applying resources strategically, Lugo 
stated that the Guarani aquifer, the Northern swamps and 
everglades, and the sources of fresh water will be protected. 
 To accomplish this goal, Lugo said that he will implement 
regional programs that will be supported locally. 
 
-------------------------------- 
ARMED FORCES AND NATIONAL POLICE 
-------------------------------- 
 
¶11. (SBU) Lugo expressed hope that the armed forces will 
become a friend of the community and that the national police 
will improve security.  Lugo said that the armed forces 
should dignify their historical legacy and become the 
community's friend and partner.  He said that the armed 
forces' obscure and repressive operations to prop up despotic 
regimes are things of the past.  On the national police, Lugo 
stated that the level of police corruption must drastically 
decrease.  He promised to improve security by creating a 
"social conscience," tightening control and punishing corrupt 
police officers, and by improving the officers' living 
conditions and investing in technological, logistical and 
financial infrastructure. 
 
-------------------- 
HEALTH AND EDUCATION 
-------------------- 
 
¶12. (SBU) Lugo expressed that he is working on projects that 
will improve access to government services.  He said that his 
administration's most important social investment will be 
reflected in the phrase, "a healthy and educated child." 
Lugo said his "social cabinet" will make sure that his 
administration concentrates on education and health. 
 
¶13. (SBU) COMMENT: Lugo, the "bishop of the poor," wove a 
careful balance between the left and the right, peppering his 
speech with a populist discourse but reassuring the business 
community that he would protect them as well.  His moderate 
discourse steered clear of pro-Venezuelan or anti-American 
sentiments, as he focused almost exclusively on domestic 
themes (the only exception being a passing reference to the 
bi-national dams with Brazil and Argentina). END COMMENT. 
 
Please visit us at     http://www.state.sgov.gov/p/wha/asuncion 
 
AYALDE