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DE RUEHAC #0613/01 2951040
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R 212201Z OCT 09
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC 0113
INFO MERCOSUR COLLECTIVE
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RHMFISS/HQ USSOCOM FP MACDILL AFB FL
RHMFISS/HQ USSOUTHCOM MIAMI FL
RUEAIIA/CIA WASHINGTON DC
RUEHBO/AMEMBASSY BOGOTA

C O N F I D E N T I A L ASUNCION 000613 
 
SIPDIS 
DEPARTMENT FOR WHA DAS MCMULLEN AND WHA/BSC MILTON DRUCKER 
 
E.O. 12958: DECL: 2019/10/21 
TAGS: PTER PGOV PREL KCRM SNAR
SUBJECT: Kidnapping by Paraguayan People's Army or EPP Seizes 
Paraguayan Politics and Press 
 
REF: ASUNCION 512 
 
CLASSIFIED BY: Holloway, Perry, DCM; REASON: 1.4(B), (D) 
 
¶1.  (C) SUMMARY:  The Paraguayan People's Army (EPP) kidnapped 
well-known rancher Fidel Zavala on October 15.  According to 
initial reports, the kidnappers demanded a ransom of US $5 million 
for Zavala's release.  The Zavala family initially refused 
involvement of the Paraguayan National Police, but is now working 
with the GOP and Colombian Advisors sent by President Uribe (PNP), 
after talking with President Lugo.  Individuals and political 
parties are using the kidnapping to bash the GOP and President 
Lugo, with some even calling for his removal.  The GOP has done 
everything right so far and is working closely with the family. 
Media initially was vociferously against President Lugo and 
Minister of Interior Filizzola but criticism is abating.  The 
family awaits communication from the kidnappers and has asked to be 
in complete control of the negotiations with the direct support of 
the Colombian experts.  President's Lugo's future actions regarding 
security will be key in allowing him to move forward on other items 
on his agenda.  END SUMMARY. 
 
 
 
-------------------------------------------- 
 
The Kidnapping and the Bad Guys 
 
 
-------------------------------------------- 
 
 
 
¶2.  (SBU) On October 15 at approximately 1930 hours, a group of 14 
heavily armed people wearing camouflage entered well-known rancher 
Fidel Zavala's cattle ranch in the state of Concepcion, captured 
Zavala, and fled using Zavala's own vehicle.  Only one of the 
kidnappers covered his face, prompting public speculation that a 
foreign element was among the group, or that he was a former ranch 
employee.  The kidnappers told ranch workers that they would demand 
$5 million for his release and that they were from the Paraguayan 
People's Army (EPP in Spanish). 
 
 
 
¶3.  (SBU) The Paraguayan National Police (PNP) located Zavala's 
abandoned vehicle the following day, October 16.  As police opened 
the vehicle door, an Improvised Explosive Device (IED) exploded, 
injuring two police officers and one critically.  This is the first 
time that an IED has been used in a kidnapping .  To date there has 
been no subsequent communication by the kidnappers and Zavala 
remains missing. 
 
 
 
¶4.  (SBU) The EPP is a leftist armed group that professes to seek 
change on behalf of the poor of Paraguay.  The EPP has kidnapped 
two other wealthy or prominent people in the last six years.  A 
government raid of an EPP camp in August (RefTel Asuncion 512) 
revealed a lot about the organization and seemed to indicate that 
the group was small, weak, and was not well financed or trained. 
EMBASSY NOTE:  If this kidnapping is the work of the EPP, then its 
level of operability is higher than most believed and if it 
receives a significant ransom, its funding will be secure for the 
short to medium term.  END NOTE 
 
 
 
-------------------------------- 
 
The Mudslinging Begins 
 
------------------------------- 
 
 
 
¶5.  (SBU) Immediately following the kidnapping, there was a public 
outcry for action.  President Lugo's political enemies took 
advantage of the kidnappings and made comments in the press like: 
 
 
 
B7         The President is not doing enough for security in the 
rural areas 
 
 
B7         It is the President's fault 
 
B7         The President is in with the kidnappers 
 
B7         The President should be impeached 
 
B7         The police are behind the kidnapping 
 
B7         The government knew about the potential kidnapping and 
let it happen. 
 
 
 
¶6.  (C) In fact, the initial press reporting was all about the 
President's and his government's ineffectiveness, instead of 
focusing on Mr. Zavala's release.  The Zavala family was very 
disturbed that the personal political agendas were very risky and 
privately called for toning down the attacks.  EMBASSY COMMENT: 
Embassy believes that the GOP is taking all necessary and available 
steps.  Unfortunately, no matter the outcome the GOP will likely 
come out of this incident under attack from many fronts.  If 
released the dialog will be on why the government let this happen. 
If not released successfully, the government will be crucified as 
failing on security.   The GOP has all the incentives to seek a 
positive resolution, but not necessarily all the tools and support 
it needs. 
 
 
 
---------------------- 
 
Meetings Are Us 
 
---------------------- 
 
 
 
¶7.  (C) On October 16 Ambassador Ayalde met separately with the 
Minister of Interior and the President of Paraguay in meetings 
programmed before the kidnapping.  Although the discussions covered 
many topics (See Septel), both the President and the Minister spoke 
at length about their concerns and the actions they were taking 
regarding the kidnapping.  The President told the Ambassador he was 
doing everything possible to ensure the safe release of Mr. Zavala. 
He told Ambassador that he had spoken to Colombian President Uribe 
three times immediately following the kidnapping, immediately 
offered a team of Colombian government kidnapping experts.  The 
team plus equipment arrived that evening to assist with the 
 
investigation.  EMBASSY NOTE:  The GOP and the Zavala family told 
us that they are impressed with the Colombian experts.  All have 
received US training and technical assistance under Plan Colombia. 
END NOTE. 
 
 
 
¶8.  (C) Based on press reports stating that the GOP was not taking 
the kidnapping response seriously, members of Zavala's family asked 
to meet with Ambassador Ayalde on October 16.  At 1900 hours, 
Ambassador Ayalde met with Felina Amarilla first cousin of Zavala 
and Fernando Serrati a close family friend.  Both claimed to not 
trust Lugo and feared he was not doing anything to advance the 
investigation due to his left-leaning ideology.  The Ambassador 
responded that she believed the President and Minister of Interior 
were fully engaged in bringing Mr. Zavala home safely.   Ambassador 
affirmed that the focus should be on seeing Mr. Zavala released and 
on avoiding public political attacks, since that would be 
counterproductive. 
 
 
 
¶9.  Colombian Ambassador to Paraguay Mauricio Gonzalez also asked 
to meet with Ambassador Ayalde on October 17.  He was concerned 
that Mr. Zavala's kidnapping was being used for personal and 
political agendas.  He feared that the public nature of these 
attacks would jeopardize the success of the release.  He hoped that 
the Colombian involvement would be kept low profile because their 
Embassy had received a threat by EPP (prior to the kidnapping) that 
if Colombians got involved they would retaliate against Colombian 
citizens in Paraguay.  EMBASSY NOTE:  So far, Colombia's 
involvement has barely been mentioned.  END NOTE. 
 
 
¶10.  (C) On October 17, at the request of Vice Minister of Interior 
Caballero, Embassy Regional Security Officer (RSO) attended a 
meeting with the Paraguayan and Colombian team assembled to 
investigate the kidnapping.  Of primary importance to them was the 
fact that the Zavala family refused to accept GOP assistance. 
Based on advice from a family confidant and Paraguayan attorney, 
the Zavala family did not want the police to be a part of the 
negotiation with the EPP.  The Colombian police said that without 
the family's acquiescence, they would be of inconsequential 
assistance. 
 
 
 
¶11.  (C) Vice Minister told the group that President Lugo stated 
that the President could not afford for Mr. Zavala to die.  RSO 
suggested they redouble efforts to bring the family into the fold 
by emphasizing the President's commitment to the case, the 
Colombian expert assistance, and the fact that as a joint effort 
the case stood a better chance of resolution.  The Vice Minister 
recommitted to attempting to convince the Zavala family to accept 
assistance from the GOP.  On October 18, President Lugo and the 
Minister of Interior visited the Zavala family and convinced them 
to accept Colombian assistance in the investigation. 
 
 
 
¶12. (C) On October 19, the Attorney General for Paraguay met with 
Ambassador Ayalde to express his concern about the direction of the 
investigation.  Claiming that he felt sidelined by the Ministry of 
Interior, the Attorney General launched into a broader criticism of 
key GOP Ministry of Interior and police officials.  EMBASSY NOTE: 
There is an ongoing feud between the Public Ministry (led by the 
Attorney General) and the police regarding who should be in charge 
of investigations.   END NOTE.  The Ambassador stressed the need to 
focus on a successful release and the wishes of the family.  She 
told the Attorney General that she would raise his concerns if an 
opportunity presents itself and looked forward to working with him 
in the future on improving the relationship between prosecutors and 
police. 
 
 
 
¶13.  (C) Also on October 19, Zavala brothers Diego and Gonzalo 
asked to meet with Ambassador.  They thanked the Ambassador for her 
interest in the case and reiterated their faith in the Minister and 
Vice Minister of Interior (while expressing no confidence in the 
PNP).  Diego Zavala noted that the political opportunism to use 
this kidnapping to discredit President Lugo was counterproductive 
to their need for a strong executive at this crucial moment.  The 
brothers added that they were extremely grateful to Colombian 
President Uribe for his assistance and had agreed to accept the 
Colombian teams assistance and requested that the negotiator work 
directly with the family and not, through the Minister of Interior 
or the PNP.  The family is keeping the Minister of Interior advised 
of developments by talking directly with him on a regular basis. 
EMBASSY NOTE:  The lack of trust in institutions is very apparent 
and the trust in the Minister and Vice Minister of Interior is 
based on close personal ties in the past, not confidence in their 
institution. 
 
 
 
--------------------------------------------- --- 
 
The Early Investigation Reveals Little 
 
--------------------------------------------- --- 
 
 
 
¶14.  (SBU) The kidnappers have made no attempts to communicate with 
the Zavala family.  The armed kidnappers stated that they were from 
the EPP.  They told witnesses to inform the family to prepare US $5 
million and that they would communicate with the family at a later 
date.  The kidnappers warned that the police should be kept at bay 
or they would kill Zavala. 
 
 
¶15.  (C) According to the Colombian police major who analyzed 
Zavala's vehicle, the explosion came from an Improvised Explosive 
Device (IED) packed with ball bearings attached to batteries.  The 
device was rigged to explode when the door opened and the circuit 
closed.  The Colombians estimate that there was no more than 500 
grams of high explosives and have sent the material to their 
laboratory for analysis.  They indicated that the device was very 
similar to those used in Colombian narcotrafficking labs and that 
it was "100% FARC".  EMBASSY NOTE:  While the Foreign Terrorist 
Organization (FTO) called the Revolutionary Armed Services of 
Colombia (FARC in Spanish) was certainly in Paraguay a few years 
ago working with the EPP, there is no recent intel to indicate that 
this is still the case, although the media and government 
opposition are feeding into this theory with little facts or 
evidence. 
 
 
 
--------------------------------------------- ---- 
 
Criticism Lessens, But Future is Rocky 
 
--------------------------------------------- ---- 
 
 
 
¶16.  (SBU) The decision by the Zavala family to accept Colombian 
assistance, Lugo's personal visits to the family's residence, and 
the GOPs outreach to the press tempered the public criticism 
towards the GOB and the focus has shifted more to the actual 
kidnapping and how to ensure the successful release of Mr. Zavala, 
although the more radical groups opposed to the government continue 
to say Lugo should be removed through impeachment.  There is no 
indication that this is seriously being considered by the Congress 
or anyone else. 
 
 
 
¶17.  (C) COMMENT: Criticism of the government for the worsening 
security climate has increased over the last few months as 
kidnappings, murders, and robberies continue to make monthly 
headlines.  Emblematic of this problem is the Zavala family's 
refusal to place any trust or confidence in the PNP.  This is due 
to the police's alleged involvement in a number of high-profile 
murder and narcotics cases.  In fact, the Minister of Interior was 
recently quoted as saying, "the police is full of mafias."  The 
President also mentioned to the Ambassador that the situation in 
the police is untenable and needs drastic changes given all of the 
"embedded mafias" that back to different politicians.  No matter 
the outcome, the actions of the GOP after the kidnapping are 
critical to stemming the negative voices from many fronts 
criticizing the government's performance on security and other 
issues.  If the President does not take concrete action on security 
matters to convince his detractors that he is committed to security 
and rule of law, his ability to get work done on other issues will 
be limited.   This could be looked back upon as a seminal moment in 
the Lugo Administration.  END COMMENT. 
 
 
 
AYALDE 
AYALDE