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Notes from Paraguay: Return of the Colorado Party and A Forgotten War in South America


June 13, 2018
Gar Smith / Environmentalists Against War & A Global World & Nikolas Kozloff / Al Jazeera

June 12 was a national holiday in Paraguay. Chaco Armistice Day, commemorates peace – and the end of a bloody war between Paraguay and its neighbor Bolivia. The conflict erupted over the control of the Chaco region, a contested area that was believed to harbor immense stores of untapped underground oil. The surprising part of the story involves the covert involvement of the US government and, allegedly, the role of major US oil companies in fomenting the conflict.

Special to Environmentalists Against War

A Forgotten War in South America
Gar Smith / Environmentalists Against War

Asuncion, PARAGUAY (June 12, 2018) -- June 12 was a national holiday in Asuncion, the capital of Paraguay. Most museums and all national buildings were closed. The playa that fronts the capital's riverfront was filled with music, crowds, and food.

The national holiday, Chaco Armistice Day, commemorates peace – and the end of a bloody war between Paraguay and its neighbor Bolivia. The conflict erupted over the control of the Chaco region, a contested area that was believed to harbor immense stores of untapped underground oil.

The surprising part of the story involves the covert involvement of the US government and, allegedly, the role of major US oil companies in fomenting the conflict -- in apparent hopes of gaining access to the suspected oil wealth.

But the festival on the waterfront turned out to be something different. It was a sprawling celebration of international commerce. While it's clear from the brand names on many Paraguayan appliances and store fronts that Japan is a major trading partner, the flags fluttering over the riverside tents and pavilions revealed another aspect to Latin American trade relations.

Above the tents displaying products and vending foods, visitors could see two national flags on prominent display. One, the flag of Paraguay; the second, the national flag of South Korea.

The cultural intermingling was further underscored by the music. As visitors ambled through the paths that separated the tents, loudspeakers boomed with the theme song from Walt Disney's Pocahontas. But this time, "The Colors of the Wind" were being sung in Korean.

There was another message that dominated the gathering. The colors of the wind that flew in the form of flags snapping in the warm breeze included on brand name that was larger and more plentiful than any others – they bore the message: "Coca-Cola."

In fact, the Coca-Cola brand is pervasive around the country, dominating billboards, shopping malls, small markets and the tables of street vendors.

And, today, in Paraguay there is another brand that has recently returned to prominence. In the recent presidential elections, the Center-Right coalition fell short of victory by a slim margin, setting the stage for the return of the Colorado Party, a rightist political regime lead by Mario Abdo Benitez.

Benitez, who defeated Efrain Alegre of the Paraguay Alegre Alliance in the April election, bears a troubling connection with the brutal dictatorship of Paraguay's Alfredo Stroessner (1954-1989). Benitez, the son of the Stroessner's private secretary, also served as a pallbearer at Stroessner's funeral.

Stroessner's harsh dictatorship lasted for 35 years. The longest rule in modern South American history, Stroessner's reign was distinguished by its uninterrupted repression of political and human rights.



Chaco Armistice Day in Paraguay
A Global World
"The war between Paraguay and Bolivia was not triggered by its peoples but by the transnational corporations after our natural resources."
-- Bolivian President Evo Morales


PARAGUAY (June 11, 2018) -- "The war between Paraguay and Bolivia was not triggered by its peoples but by the transnational corporations after our natural resources," said Bolivian President Evo Morales on April 27, 2009 during a ceremony that made official a finalization of conflict between the two countries.
While the ceremony was more formality than necessity, the Chaco War ended up taking more than 100,000 lives, and remembering the cause and effect of the war is an important part of Chaco Armistice Day in Paraguay.

Paraguay and Bolivia are two land locked countries in the continent of South America. The border between these two nations pass through an area called the Chaco Boreal, which at the time was nothing but swamps covering an area of some 250,000 square kilometers.

Powerful oil companies—in an attempt to acquire rights to oil and natural gas they thought existed in the region—made the then-Bolivian government wrest control of the area from Paraguay. The skirmishes between the two sides began in 1928, and they grew into a full-scale war in 1932.

However, the war did not go as the Bolivians planned. The Bolivian army didn't have much of a chance against the guerilla warfare of the Paraguayans. Additionally, the army was decimated by many of the tropical diseases prevalent in the region.

The Paraguayans conquered most of the Chaco region and were poised to attack Bolivia itself. The Paraguayan army cut off the water supply of the Bolivian population thereby crippling the population. The war at last came to an end on June 12, 1935 and a peace treaty signed in 1938 with Paraguay gaining control of three-quarters of the Chaco Boreal region.

Chaco Armistice Day is sometimes also called Chaco Peace Day in Paraguay, and it is an official holiday in Paraguay.

The final border between the involved countries was settled on April 27, 2009, nearly 74 years after the war. During the ceremony, the need for a spirit of "pacification and confraternity" was made, highlighting the theme of the Chaco Armistice Day celebrations.

This day typically has special parades in honor of those who fought valiantly for Paraguay and its conquest of the Chaco region.


What is Washington Up to in the Chaco Region?
Cables released by WikiLeaks show
a strong US interest in vast areas
spanning Paraguay, Bolivia and northern Argentina

Nikolas Kozloff / Al Jazeera

"The coup in Paraguay, like similar ones throughout Latin America, was carried out by and for multinationals and their partners among the local elites."

(July 24, 2012) -- Recently, a host of individuals and organisations throughout Latin America called attention to the tumultuous state of politics in Paraguay, where democratically elected President Fernando Lugo was impeached by the country's Congress under somewhat dubious circumstances. In a letter of protest, the signatories sketched out a rather inflammatory theory. They claim, for example, that the US Southern Command wanted Lugo gone as the Paraguayan leader who had opposed US militarisation in his country.

"We already know who overthrew Fernando Lugo and why," they added. "El Chaco . . . cannot be allowed to belong to [Paraguay] . . . nor its people; [the region has] been bound for occupation and extraction by multinationals through megaprojects and terror financed with public resources. The coup in Paraguay, like similar ones throughout Latin America, was carried out by and for multinationals and their partners among the local elites."

"El Chaco" refers to a vast, arid and inhospitable swathe of territory made up of lowland forests and savannas. The territory spans much of Paraguay, Bolivia and northern Argentina, and contains abundant natural resources. As a result, the Chaco has been much fought over and coveted by nations in the vicinity as well as foreign multinational companies. From 1932-1935, Bolivia and Paraguay fought what came to be known as the Chaco War. At the time, the Chaco was thought to contain lucrative hydrocarbon deposits and each country hoped to cash in on the coming bonanza.

A History of Intrigue
Though Bolivia seemed to enjoy great advantages over Paraguay, its troops displayed low morale and died in large numbers from disease and snakebite. By the time the pointless and wasteful conflict was over, 100,000 men had lost their lives.

Paraguay controlled most of the disputed territory at the conclusion of the war, and under a truce it gained access to most of the land, though in a small consolation prize, Bolivia was granted access to the Paraguay River. The Chaco War proved psychologically shattering for Bolivia, particularly amongst younger literate officers who charged that international oil companies had manipulated the nation into the conflict in the first place.

Before the conflict, Standard Oil, a US-based company, had discovered petroleum in eastern Bolivia and believed that more oil could be found in the Paraguayan Chaco. Unfortunately, its British competitor, Shell Oil, had exploration rights in the region.

During the war, both companies were at odds, with Standard supporting Bolivia and Shell backing Paraguay. US diplomat, businessman and lobbyist Spruille Braden was thought to have played a particularly nefarious role during the Chaco War and reportedly worked as an agent for Standard Oil.

To this day, the Chaco War intrigue continues to fuel suspicions among regional leaders. Recently, Argentine President Cristina Fernández de Kirchner remarked that the conflict had the "smell of petroleum" and claimed that Braden had played an underhanded role in spurring the war.

What is more, during a 2009 ceremony remembering the Chaco War, Bolivian President Evo Morales declared that the conflict "was an unjust war for oil" in the "interests of empires like the US and England". Former Paraguayan President Lugo added "the sovereignty of our people will not be threatened by foreign interests or multinational forces that confronted us in the past".

So much for previous diplomatic shenanigans, but is there any evidence that the US plays an underhanded role in the Chaco today? And what of Lugo's removal from power in Paraguay - was control over the Chaco related in any way to the recent political crisis? The public should be cautious about embracing overarching conspiracy theories without marshalling sufficient proof, and I am just as skeptical as anyone.

However, in light of private US diplomatic correspondence released by whistle-blowing outfit WikiLeaks, as well as ordinary press reports, it seems pretty safe to say that Washington has been obsessed with the Chaco. Furthermore, in light of many odd and bizarre recent developments which are difficult to explain away as mere "coincidence", it seems reasonable to surmise that Lugo's impeachment was tied in certain respects to Chaco intrigue.

What's behind the US Presence in the Chaco?
The prospect of Paraguay and Bolivia burying the hatchet over the Chaco and allying on politically leftist lines was hardly an agreeable prospect for Washington. As I've detailed elsewhere, both former Secretary of State Condoleezza Rice and current Secretary of State Hillary Clinton viewed the Paraguayan left with suspicion. What seems to have scared them the most was the notion that Fernando Lugo might cultivate ties to nations such as Venezuela, which was allied with Evo Morales in Bolivia.

If it ever came to fruition, such an alliance could cast a dark cloud over sensitive US military operations. For years, US forces operated in Paraguay under the Southern Command to ostensibly provide rural medical care. However, some have suggested that the Americans were actually in Paraguay to spy on leftist movements or peasant leaders. Whatever the case, it seems that US troops were deployed to the remote Chaco region during their training missions.

Indeed, according to Argentine paper Clarín , US technicians constructed an air base in the Paraguayan Chaco town of Mariscal Estigarribia. In 2005, a correspondent from the paper visited the facility, describing the base as "an enormous aircraft carrier in the middle of the desert". Moreover, the air strip was very wide and could accommodate B-52 bombers, even though the Paraguayan air force didn't have any such planes in its arsenal.

In 2006, still two years prior to Lugo's assumption of power, diplomats reported that US forces were operating in the Chaco to "survey possible locations for future humanitarian assistance exercises".

In truth, however, the State Department itself seems to have had little idea of what the Pentagon was actually up to in Paraguay (indeed, according to the Washington Office on Latin America, two members of a US Special Forces team operating undercover were involved in a deadly firefight in 2004. Tragically, the shootout resulted in the death of a Paraguayan who was attempting to rob the soldiers. Apparently, the Pentagon had kept the team's existence a total secret from the US embassy in Asunción).

Bolivia and US Manoeuvre for Influence
Fearing encirclement, Venezuela and Bolivia struck back and announced "a deal to build a new military base along the disputed Chaco border region (at Puerto Quijarro)". Later, the Paraguayan president confronted Evo Morales at the United Nations to request an explanation.

Apparently miffed at Asunción, Morales was in no mood to back down, and later sent Bolivian military officers across the border into the Paraguayan Chaco to spy on and inquire about US military operations. The incident worried not only the US embassy in Asunción, but also right-wing officers in Paraguay.

Meanwhile, conservative senators told the US ambassador that Venezuela and Bolivia were intent on "pushing us around". Specifically, the Paraguayan military was "very concerned about Bolivia rearming and planning to develop several new military facilities with the assistance of Venezuela". The officer corps, which was still smarting over the "anguish" of the Chaco dispute, wanted new weapons and technology from the US to "offset this threat".

The US embassy was happy to oblige, noting that "Post will continue to press for continued military co-operation". Despite such assurances, however, the Paraguayan military continued to worry about "lingering irredentist claims within some segments of the Bolivian military to territory in the Chaco". In an echo of the Chaco War, diplomats explained that "discoveries of potential commercially significant natural gas resources near the Bolivian border could add fuel to such concerns".

Just days before the Paraguayan election of 2008, the right-wing Colorado Party grew concerned that Lugo might win. One Colorado Party senator told US diplomats that Washington was "failing" in its approach to Latin America and should "work with the Paraguayan military to build a military base in the Chaco to fight the growing narcotics trade (and to ward off any ideas from Brazil or Bolivia about infringing upon Paraguayan sovereignty)".

The Morales regime in La Paz sounded the alarm bell in turn, accusing the US of wanting to establish a military base in the Chaco "for the purpose of monitoring activities in Bolivia or attempting to control energy resources in the Bolivian and Paraguayan Chaco region".

Concerned about growing encirclement, the Bolivian minister of defence travelled to Paraguay and asked the Asunción government "to slow down its mil-mil relationship with the United States". The Colorado Party and "many like-minded military officials", however, rebuffed Bolivia and sent the minister packing.

Paraguay and Bolivia bury the hatchet
Since we don't have any access to Pentagon documentation, let alone other US intelligence agencies, it's unclear what concrete moves the defence establishment there took in relation to the Chaco. However, judging from the WikiLeaks cables, US officials were amenable to Paraguay, with one diplomat remarking that the Colorado Party's pleas for assistance were understandable. "Hopefully, with Paraguay's next president, we can do more," the embassy in Asunción wrote.

Lugo's election, however, threw a wrench into US regional geostrategy. Though Paraguay's new president was no radical, he staked out an increasingly independent foreign policy and began to limit the Pentagon's role in his country.

Even more worryingly, Lugo quickly indicated his desire to bury the hatchet with Bolivia and flew to La Paz to meet with Morales personally. In a rhetorical flourish, Lugo remarked that "the age of imperialism is over in this new age in Latin America" and that the future of Latin American relations with the United States would be "based on respect, equity, and justice".

If that were not enough to cause offence among the powers that be, Lugo also conducted a symbolic meeting with Morales in the rural Paraguayan Chaco town of Mariscal Estigarribia to commemorate the 74th anniversary of the end of the Chaco War.

Both leaders signed a joint peace declaration and delivered speeches, with Lugo pronouncing that both South American nations had "learned that the integration of their peoples is more important than the legacy left by the blood of Bolivians and Paraguayans spilled on Chaco's oil".

Morales apparently hoped that such ideological affinities would lead Lugo to curtail Paraguayan-US military links. When Bolivia asked Paraguay to come clean about alleged US bases on its territory, Lugo denied their existence but later declared that he would open an investigation. Needless to say, however, such pronouncements did not go over very well with the Paraguayan nationalist right in congress, which was unhappy about any rapprochement with Bolivia.

Postscript:
Lugo's Ouster and the Argentine Chaco

To be sure, there's no "smoking gun" proving that the US played a role in Lugo's recent ousting, but some reports are incredibly suspicious in terms of the time line. Indeed, just coincidentally, a right-wing Colorado deputy who presided over the Congressional Committee on Defence met with US military personnel shortly after Lugo's impeachment.

According to Mexican paper La Jornada, he and his colleagues spoke with the US about the construction of a military base in Chaco. The legislator remarked that a Chaco base was "necessary" because Bolivia constituted "a menace for Paraguay".

As if this report were not enough to raise eyebrows, the US has also been engaging in a high-stakes effort to secure a military base in the Argentine Chaco, just across the border from Paraguay. As in Paraguay, the Pentagon claimed the base was necessary in order to provide local humanitarian relief.

US diplomats, meanwhile, got the backing of a pro-US provincial governor for the project. However, in a huge setback for the US Southern Command, the Argentine government decided to scotch the initiative following an outcry from civil society.

In light of the evidence, it's pretty clear that Washington wants to get a foothold in the Chaco. Perhaps the more interesting question, however, is why? Perhaps the US wants to monitor drug trafficking in the Chaco, or alternatively desires control over strategic resources.

Maybe Washington seeks to prevent Paraguay from entering into a leftist alliance with Bolivia, or it wishes to encircle rising star Brazil. Or perhaps it's merely some combination of all these things. Whatever the case, however, it surely involves skulduggery.

Nikolas Kozloff is the author of Revolution! South America and the Rise of the New Left.

Posted in accordance with Title 17, Section 107, US Code, for noncommercial, educational purposes.

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