PARAGUAY: Protests, General Strike Threaten Government
Thu Jun 6, 6:39 AM ET
IPS Correspondents,Inter Press Service

ASUNCION, Jun 5 (IPS) - Trade unionists and farmers in Paraguay
will hold a general strike Thursday to protest the government's
economic policy and privatization plans, adding fuel to a crisis
that threatens to destabilize the administration of Luis González
Macchi, which has already cost the life of one protester.

The Central Nacional de Trabajadores (CNT), the country's main
trade union, announced the strike to demand changes in the
government's economic policy and the revocation of the law on
privatization.

"We are calling on all citizens to support this measure, in order
to rectify the direction our country is taking, reject the
prescriptions of the International Monetary Fund (news - web
sites) (IMF) and World Bank (news - web sites), and defend our
sovereignty," said CNT president Eduardo Ojeda.

The call for the strike was endorsed by civic groups that for the
past few weeks have been holding marches against the government's
proposed structural reforms, including the sale of the public
telephone company, the Companía Paraguaya de Comunicaciones
(Copaco).

The crisis peaked at noon Tuesday in the city of Coronel Oviedo,
140 kms east of Asuncion, where police harshly cracked down on
around 5,000 peasants marching on the Paraguayan capital to
demand that the law on privatizations be overturned.

The Chamber of Deputies voted May 23 in favor of abolishing the
law, which civil society organizations are now trying to pressure
the Senate to overturn.

Tuesday's violence occurred when protesting farmers, who were
accompanied by lawmakers Waldemar Zarate, Daniel Rojas and Luis
Alberto Wagner of the opposition Liberal Party, and Assistant
People's Defender Raul Marin, tried to break through a police
cordon to continue their march.

Calixto Cabral, a 34-year-old farmer, was killed by a bullet to
the head. Another peasant, Teresio Velazquez, was critically
wounded when he was shot in the stomach. At least five other
marchers were injured.

The Democratic Congress of the People, made up of peasants, trade
unionists and activists from a number of non-governmental
organizations, announced after the clash between protesters and
the police that the talks with the "criminal" government of
Gonzalez Macchi had been broken off.

The president called an emergency cabinet meeting to study the
situation. A few hours later, he announced on television that he
had decided to indefinitely postpone the sale of Copaco,
scheduled for Jun 14, in order to "calm things down."

Gonzalez Macchi blamed "the damages caused to the citizenry as
well as the lamentable bloody incidents" on "groups that resort
to violence."

Cabinet chief Jaime Bestard said Zarate, Rojas, Wagner and Marin
were the "chief instigators" of the protests.

Meanwhile, the president of the governing Colorado Party, Nicanor
Duarte, said the privatization of Copaco is a process that has
failed, and if a process fails, then those who have organized it
must resign or leave.

"There are proceedings that have not brought the expected
results, and officials depend on the success or failure of their
plans," warned Duarte.

However, Gonzalez Macchi said he had no plans to resign, and he
called on Congress and social organizations to engage in a "broad
dialogue" to work out "the differences that may exist with
respect to the major social and economic issues under debate
today."

The privatization of Copaco has already been suspended six times
due to complaints of supposed irregularities, including the
participation of a public notary who was a personal friend of the
president, and who reportedly received over 500,000 dollars for
his role in the transaction.

Gonzalez Macchi considers the sale of Copaco essential, because
it would bring the government 400 million dollars to be earmarked
for infrastructure works, with the aim of restarting the economy,
caught in the grip of recession since 1995.

On more than one occasion, Vice-President Julio César Franco of
the Liberal Party criticized the privatization of the telephone
company due to the "lack of transparency" surrounding the
process, and the "irresponsible" way in which it was being
handled by Gonzalez Macchi.

The president of the Central Bank, Raul Vera Bogado, stressed
Wednesday that the sale of Copaco was indispensable for reaching
an agreement with the IMF on a stand-by loan for 60 million
dollars, which the government has been negotiating for weeks.

"If there are things to be investigated, there are channels for
that to happen. If the capacity to investigate is doubted,
society must assume the role of overseer, and monitor the
process," said Vera Bogado.

Minister of Reform Oscar Stark and Finance Minister James
Spalding warned that the suspension of the privatization would
hurt Paraguay's foreign image and discourage foreign investors
interested in Copaco.

Colorado Party Senator Juan Carlos Galaberna complained that the
protests against the law on privatizations were backed and
financed by supporters of former general Lino Oviedo, who is
living in exile in Brazil.

Galaberna and Senator Luis Alberto Mauro of the National
Encounter party, which is allied with the government, say Oviedo
is seeking the resignation of Gonzalez Macchi with the aim of
becoming president himself before next year's elections.

During Tuesday's incidents, the police confiscated a car from the
protesters containing t-shirts sporting pro-Oviedo slogans.

Oviedo was arrested on Jun 11, 2000 in the Brazilian (news - web
sites) town of Foz de Iguazu, on the border with Paraguay. He is
accused of planning and ordering the Mar 23, 1999 assassination
of Paraguayan Vice-President Luis Maria Argana in Asuncion.

The former general, who was released last year by the courts in
Brazil after that country rejected a Paraguayan extradition
request, announced his aim of returning to Asuncion to run for
president in 2003.

Full at:
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