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OO RUEHWEB

DE RUEHAC #0791/01 3301148
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O 251148Z NOV 08
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7412
INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEHNCS/NSC WASHDC
RUEHGV/USMISSION GENEVA 0182

UNCLAS ASUNCION 000791 
 
SENSTIVE 
SIPDIS 
 
TO WHA/BSC MDASCHBACH, H FOR DAS JSTARR, H/CTO DRICH 
 
E.O. 12958: N/A 
TAGS: OREP ETRD PREL ECON PA
SUBJECT: CODEL ENGEL VISITS PARAGUAY 
 
¶1. (SBU) SUMMARY: Congressman Engel (D-NY) led an eight-member, 
bipartisan delegation to Paraguay November 11-13 to strengthen 
commercial ties and affirm U.S. interest in Paraguay.  Senate 
President Gonzalez Quintana opened the delegation's November 11 
meeting with the Paraguayan Congress by affirming that the diverse 
Paraguayan Congress is committed to supporting the new Lugo 
government.  Mr. Engel assured his Paraguayan counterparts of the 
U.S. desire to strengthen the long and deep friendship between the 
United States and Paraguay and to continue working together for our 
mutual benefit; Paraguay's congressional representatives responded 
enthusiastically to the Codel's message regarding closer relations 
and affirmed that they need U.S. assistance and support.  President 
Lugo expressed gratitude November 11 to the Codel for the "great 
international solidarity" shown for Paraguay, including by President 
Bush in his October meeting with Lugo. Mr. Engel conveyed the 
delegation's warm feelings for Paraguay, desire for increased 
engagement, and interest in supporting Lugo's social justice agenda. 
 Lugo explained the top six priorities for his administration are: 
land reform; judicial reform; strengthening institutions; a national 
emergency plan to deal with environmental, health, education and 
social issues; economic development; and control of natural 
resources.  Lugo made the case for "fair trade, not free trade," 
with benefits for Paraguay. Congressman Engel's delegation, which 
was the largest U.S. congressional delegation to ever visit 
Paraguay, conveyed a strong message regarding U.S. interest in 
expanding commercial relations, and was warmly received by both the 
public and private sectors as well as covered by the national media. 
 END SUMMARY. 
--------------------------------------------- -------- 
ENGEL WITH PARAGUAY'S CONGRESS: THE US WANTS CLOSER RELATIONS 
--------------------------------------------- -------- 
¶2. (SBU) Senate President Enrique Gonzalez Quintana opened Codel 
Engel's meeting with the Paraguayan Congress November 11 by telling 
them that the diverse Paraguayan Congress is committed to supporting 
the new Lugo government.  "We're conscious of our responsibility to 
look for mechanisms to respect democracy and rule of law," he said. 
Gonzalez congratulated the delegation on the previous week's U.S. 
elections, and said Paraguay wants to follow the United States' 
democratic example. 
¶3. (SBU) After introducing his delegation, which included 
Congressman Dan Burton (R-IN), Maxine Waters (D-CA), Maurice Hinchey 
(D-NY), Virginia Foxx (R-NC), Nydia Velazquez (D-NY), Lincoln Davis 
(D-TN), and Brad Miller (D-NC), Mr. Engel assured his Paraguayan 
counterparts of U.S. desire to strengthen the long and deep 
friendship between the United States and Paraguay and to continue 
working together for our mutual benefit.  "It's not an accident that 
we're visiting Paraguay," Mr. Engel said, "we're here because this 
is a time of new opportunities."   Engel conveyed his vision of 
increased engagement with Latin America under the Obama 
administration, which Congresswoman Velasquez reinforced in fluent 
Spanish.  "If we neglect the region," Mr. Engel said, "we do so at 
our own peril."  Paraguay's congressional representatives responded 
enthusiastically to the Codel's message regarding closer relations, 
and affirmed that they need U.S. assistance and support.  They 
pledged their continued commitment to fight contraband, narcotics 
trafficking, and terrorism, as well as to maintain strong relations 
with the United States. 
--------------------------------------------- -------- 
ENGEL TO LUGO: I'LL INTRODUCE A TRADE BILL FOR PARAGUAY 
--------------------------------------------- -------- 
¶4. (SBU) President Fernando Lugo, along with Foreign Minister 
Alejandro Hamed Franco and Chief of Staff Miguel Lopez Perito, 
received Codel Engel November 11 and conveyed gratitude for the 
"great international solidarity" shown for Paraguay, including by 
President Bush in his October meeting with Lugo.  Lugo acknowledged 
the high expectations and curiosity regarding his administration, 
and assured the delegation that his government would be 
characterized by transparency, honesty, and concern for the poor. 
Lugo congratulated his visitors on the U.S. election and wished 
President-elect Obama "a natural, logical transition."  Lugo mused 
that public service offers a way to serve our people and use our 
power to help them.  "We have much to learn from the United States," 
he said, "and much to build. Our people deserve it." 
¶5. (SBU) Congressman Engel conveyed the delegation's warm feelings 
for Paraguay, desire for increased engagement, and interest in 
supporting Lugo's social justice agenda.  Congressman Engel also 
asked Paraguay to reconsider its position which blocks a waiver for 
U.S. trade preference programs in the WTO.  A change in position, 
Engel said, would send a positive message regarding the bilateral 
relationship, and would help him in advocating for trade preferences 
for Paraguay.  Engel said he was willing to introduce legislation in 
January to give Paraguay trade preferences, and that he would urge 
President-elect Obama to support his bill.  In response to Lugo's 
question about how an Obama administration will conduct foreign 
policy, Congressmen Engel and Burton were hopeful that the United 
States would be more engaged in the region, but noted that President 
Obama's first challenge would be the U.S. economy. 
¶6. (SBU) Lugo explained the top six priorities for his 
administration are: land reform; judicial reform; strengthening 
institutions; a national emergency plan to deal with environmental, 
health, education and social issues; economic development; and 
control of natural resources.  Lugo said Paraguay's democratic 
institutions had been synonymous with the Colorado Party for over 60 
years, and related his own personal difficulties in getting his 
teaching certificate because he was not a Colorado.  On economic 
issues, Lugo expressed interest in strengthening small businesses 
and offering investors legal security.  On energy, he mentioned the 
Itaipu Dam, which Paraguay shares with Brazil, stating that Paraguay 
uses only 5 percent of its share and "donates" the rest to Brazil. 
Lugo told the delegation that he sees himself as a protagonist for 
peaceful change.  He said that during his campaign, he traveled the 
entire country and listened to the people.  "The voice of the people 
is the voice of God," he said.  Lugo said Paraguay could not relax 
when it comes to security, and promised to continue to fight 
terrorist financing and drug trafficking with U.S. assistance and 
support.  Lugo told the delegation that he wants to clean up 
Paraguay's image.  He alluded to the difficulties he is having in 
building consensus, and admitted there are no "magic formulas" to 
solve Paraguay's problems. 
¶7. (SBU) Lugo made the case for "fair trade, not free trade," with 
benefits for Paraguay.  He said his administration is still 
designing its foreign policy but that Paraguay supports regional 
integration.  "Mercosur," he said, "has many faults."  Lugo opined 
that Paraguay and Uruguay need to expand their presence in Mercosur, 
lamenting that Mercosur prevents Paraguay from signing independent 
trade agreements.  Lugo promised his team would study the WTO 
situation and make a rational decision (septel). 
¶8. (SBU) COMMENT: Congressman Engel's delegation, which was the 
largest U.S. congressional delegation to ever visit Paraguay, 
conveyed a strong message regarding U.S. interest in expanding 
commercial relations, and was warmly received by both the public and 
private sectors.  The delegation's meeting with President Lugo 
served to bring Paraguay's position in the WTO to Lugo's attention 
in order to ensure the "buy-in" necessary to move the issue forward. 
 END COMMENT. 
 
The delegation did not have an opportunity to clear this message 
before departing post. 
 
AYALDE