PARAGUAY

Compiled from the November 2003 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Paraguay

PROFILE
PEOPLE
HISTORY
GOVERNMENT AND POLITICAL CONDITIONS
ECONOMY
DEFENSE
FOREIGN RELATIONS
U.S.-PARAGUAY RELATIONS
TRAVEL

PROFILE

Geography

Area: 406,752 sq. km. (157,047 sq. mi.); about the size of California.

Cities: Capital—Asuncion (pop. 513,399). Other cities—Ciudad del Este, San Lorenzo, Capiatá, Fernando de la Mora, Encarnación.

Terrain: East of the Paraguay River—grassy plains, wooded hills, tropical forests; west of the Paraguay River (Chaco region)—low, flat, marshy plain.

Climate: Temperate east of the Paraguay River, semiarid to the west.

People

Nationality: Noun and adjective—Paraguayan(s).

Population: (2002 census) 5,534,378.

Annual population growth rate: 2.3% (projected 1999-2015, UNDP).

Ethnic groups: Mixed Spanish and Indian descent (mestizo) 95%.

Religions: Roman Catholic 90%; Mennonite and other Protestant denominations.

Languages: Spanish, Guarani.

Education: Years compulsory—6. Attendance—86.6%. Literacy—91.6%.

Health: Infant mortality rate—27/1,000. Life expectancy—68 years male; 72 years female.

Work force: (2001, 2.6 million) Agriculture—45%; industry and commerce—31%; services—19%; government—4%.

Government

Type: Constitutional Republic.

Independence: May 1811.

Constitution: June 1992.

Branches: Executive—President. Legislative—Senate and Chamber of Deputies. Judicial—Supreme Court of Justice.

Administrative subdivisions: 17 departments, 1 capital city.

Political parties: National Republican Association (Colorado), Authentic Radical Liberal, National Encounter, País Solidario, and numerous smaller parties not represented in Congress.

Suffrage: 18 years of age; universal and compulsory up to age 75.

Economy:

(2002 Central Bank data.)

GDP: $5.6 billion.

Annual growth rate: -2.2%.

Per capita GDP: $940.

Natural resources: Hydroelectric sites, forests.

Agriculture: (27% of GDP) Products—soybeans, cotton, beef, cereals, sugarcane.

Arable land: 9 million hectares, of which 30% is in production.

Manufacturing: (14% of GDP) Types—sugar, cement, textiles, beverage, wood products.

Trade: (2002) Exports—$990 million: soybeans, meat and meat products, flour, animal hides, cotton and vegetable oil. Major markets—Brazil (37%), Uruguay (17%). Imports—$1.56 billion: machinery, fuels and lubricants, transportation and accessories, chemicals and pharmaceuticals, beverages and tobaccos. Major suppliers—Brazil (32%), Argentina (20%).

PEOPLE

Paraguay's population is distributed unevenly throughout the country. The vast majority of the people live in the eastern region, most within 160 kilometers (100 mi.) of Asuncion, the capital and largest city. The Chaco, which accounts for about 60% of the territory, is home to less than 2% of the population. Ethnically, culturally, and socially, Paraguay has one of the most homogeneous populations in South America. About 95% of the people are of mixed Spanish and Guarani Indian descent. Little trace is left of the original Guarani culture except the language, which is understood by 90% of the population. About 75% of all Paraguayans speak Spanish. Guarani and Spanish are official languages. Germans, Japanese, Koreans, ethnic Chinese, Arabs, Brazilians, and Argentines are among those who have settled in Paraguay.

HISTORY

Pre-Columbian civilization in the fertile, wooded region that is now Paraguay consisted of numerous seminomadic, Guarani-speaking tribes, who were recognized for their fierce warrior traditions. They practiced a mythical polytheistic religion, which later blended with Christianity. Spanish explorer Juan de Salazar founded Asuncion on the Feast Day of the Assumption, August 15, 1537. The city eventually became the center of a Spanish colonial province. Paraguay declared its independence by overthrowing the local Spanish authorities in May 1811.

The country's formative years saw three strong leaders who established the tradition of personal rule that lasted until 1989: Jose Gaspar Rodriguez de Francia, Carlos Antonio Lopez, and his son, Francisco Solano Lopez. The younger Lopez waged a war against Argentina, Uruguay, and Brazil (War of the Triple Alliance, 1864-70) in which Paraguay lost half its population; afterwards, Brazilian troops occupied the country until 1874. A succession of presidents governed Paraguay under the banner of the Colorado Party from 1880 until 1904, when the Liberal party seized control, ruling with only a brief interruption until 1940.

In the 1930s and 1940s, Paraguayan politics were defined by the Chaco war against Bolivia, a civil war, dictatorships, and periods of extreme political instability. Gen. Alfredo Stroessner took power in May 1954. Elected to complete the unexpired term of his predecessor, he was reelected president seven times, ruling almost continuously under the state-of-siege provision of the constitution with support from the military and the Colorado Party. During Stroessner's 34-year reign, political freedoms were severely limited, and opponents of the regime were systematically harassed and persecuted in the name of national security and anticommunism. Though a 1967 constitution gave dubious legitimacy to Stroessner's control, Paraguay became progressively isolated from the world community.

On February 3, 1989, Stroessner was overthrown in a military coup headed by Gen. Andres Rodriguez. Rodriguez, as the Colorado Party candidate, easily won the presidency in elections held that May and the Colorado Party dominated the Congress. In 1991 municipal elections, however, opposition candidates won several major urban centers, including Asuncion. As president, Rodriguez instituted political, legal, and economic reforms and initiated a rapprochement with the international community.

The June 1992 constitution established a democratic system of government and dramatically improved protection of fundamental rights. In May 1993, Colorado Party candidate Juan Carlos Wasmosy was elected as Paraguay's first civilian president in almost 40 years in what international observers deemed fair and free elections. The newly elected majority-opposition Congress quickly demonstrated its independence from the executive by rescinding legislation passed by the previous Colorado-dominated Congress. With support from the United States, the Organization of American States, and other countries in the region, the Paraguayan people rejected an April 1996 attempt by then-Army Chief Gen. Lino Oviedo to oust President Wasmosy, taking an important step to strengthen democracy.

Oviedo became the Colorado candidate for president in the 1998 election, but when the Supreme Court upheld in April his conviction on charges related to the 1996 coup attempt, he was not allowed to run and remained in confinement. His former running mate, Raul Cubas Grau, became the Colorado Party's candidate and was elected in May in elections deemed by international observers to be free and fair. However, his brief presidency was dominated by conflict over the status of Oviedo, who had significant influence over the Cubas government. One of Cubas' first acts after taking office in August was to commute Oviedo's sentence and release him from confinement. In December 1998, Paraguay's Supreme Court declared these actions unconstitutional. After delaying for 2 months, Cubas openly defied the Supreme Court in February 1999, refusing to return Oviedo to jail. In this tense atmosphere, the murder of Vice President and long-time Oviedo rival Luis Maria Argana on March 23, 1999, led the Chamber of Deputies to impeach Cubas the next day.

The March 26 murder of eight student antigovernment demonstrators, widely believed to have been carried out by Oviedo supporters, made it clear that the Senate would vote to remove Cubas on March 29, and Cubas resigned on March 28. Despite fears that the military would not allow the change of government, Senate President Luis Gonzalez Macchi, a Cubas opponent, was peacefully sworn in as president the same day. Cubas left for Brazil the next day and received asylum. Oviedo fled the same day, first to Argentina, then to Brazil. In December 2001, Brazil rejected Paraguay's petition to extradite Oviedo to stand trial for the March 1999 assassination and "marzo paraguayo" incident.

Gonzalez Macchi offered cabinet positions in his government to senior representatives of all three political parties in an attempt to create a coalition government. The Liberal Party, however, pulled out of the consensus government in February 2000 and stands in opposition to the Gonzalez Macchi administration. Liberal Julio Cesar Franco won the August 2000 election to fill the vacant vice presidential position, but resigned to pursue the presidency in October 2002. Gonzalez Macchi was found not guilty in a Senate impeachment trial involving corruption and mismanagement charges in February 2003.

GOVERNMENT AND POLITICAL CONDITIONS

Paraguay's highly centralized government was fundamentally changed by the 1992 constitution, which provides for a division of powers. The president, popularly elected for a 5-year term, appoints a cabinet. The next presidential election was held in April 2003. Nicanor Duarte Frutos was inaugurated as the Colorado candidate President on August 15, 2003. The bicameral Congress consists of an 80-member Chamber of Deputies and a 45-member Senate, elected concurrently with the president through a proportional representation system. Deputies are elected by department and senators nationwide. Paraguay's highest judicial body is the Supreme Court. Each of Paraguay's 17 departments is headed by a popularly elected governor.

Principal Government Officials
Last Updated: 10/17/03

President: Duarte Frutos, Nicanor

Vice President: Castiglioni, Luis

Min. of Agriculture & Livestock: Ibanez, Antonio

Min. of Education & Culture: Ovelar, Blanca

Min. of Finance: Borda, Dionisio

Min. of Foreign Affairs: Rachid de Cowles, Leila

Min. of Industry & Commerce: Bergen, Ernst

Min. of Interior: Fiorotto, Orlando

Min. of Justice & Labor: Monges, Juan Dario

Min. of National Defense: Romero Pereira, Carlos

Min. of Public Health & Social Welfare: Velasquez, Julio Cesar

Min. of Public Works & Communications: Alderete, Jose Alberto

Pres., Central Bank: Gonzalez, Gabriel

Ambassador to the US:

Permanent Representative to the UN, New York: Loizaga, Eladio

Paraguay maintains an embassy in the United States at 2400 Massachusetts Avenue, NW, Washington, DC 20008 (tel. 202-483-6960). Consulates are in Miami, New York, and Los Angeles.

ECONOMY

Paraguay has a predominantly agricultural economy, with a struggling commercial sector. There is a large subsistence sector, including sizable urban unemployment and underemployment, and a large underground re-export sector. The country has vast hydroelectric resources, including the world's largest hydroelectric generation facility built and operated jointly with Brazil (Itaipú Dam), but it lacks significant mineral or petroleum resources. The government welcomes foreign investment in principle and provides national treatment to foreign investors, but widespread corruption is a deterrent. The economy is dependent on exports of soybeans, cotton, grains, cattle, timber, and sugar; electricity generation, and to a decreasing degree on re-exporting to Brazil and Argentina products made elsewhere. It is, therefore, vulnerable to the vagaries of weather and to the fortunes of the Argentine and Brazilian economies.

According to Paraguayan Central Bank (BCP), Paraguay's GDP in 2002 of $5.60 billion in current dollars represented a decrease of 2.2% from 2001. The GDP per capita fell to $940, its lowest level in 17 years. Given the importance of the informal sector, accurate economic measures are difficult to obtain. Paraguay generally maintains a small balance-of-payments surplus. In early 2003, official foreign exchange reserves fell to below $641 million, and foreign official debt rose slightly to $2.28 billion. The local currency lost over 50% of its value against the dollar in 2002. Inflation rose to 14.6%.

Agriculture and Commerce

Agricultural activities, most of which are for export, represent about 24% of GDP. More than 200,000 families depend on subsistence farming activities and maintain marginal ties to the larger productive sector of the economy. The commercial sector is primarily engaged in the import of goods from Asia and the United States for re-export to neighboring countries. The recorded activities of this sector have declined significantly in recent years, placing a strain on government finances, which depend heavily on taxes on this trade. In general, Paraguayans prefer imported goods, and local industry relies on imported capital goods. The underground economy, which is not included in the national accounts, may equal the formal economy in size. The bulk of underground activity centers on the unregistered sale of imported goods—including computers, sound equipment, cameras, liquor, and cigarettes—to Argentina and Brazil.

Post-Stroessner Reforms

Since 1989, the government has deregulated the economy, which had been tightly controlled by President Stroessner's authoritarian regime. The Rodriguez and Wasmosy administrations eliminated foreign exchange controls and implemented a dirty floating exchange rate system, reformed the tax structure and established tax incentives to attract investment, reduced tariff levels, launched a stock market, and began a process of financial reform. Though the short-lived Cubas administration was hampered by political conflicts, it attempted to reduce the rising government deficit by cutting spending, to fight intellectual property piracy in order to attract foreign investment, and to address a financial sector crisis that had simmered since 1995. Under political pressure, the Gonzalez Macchi government has had to suspend a process of privatization and economic reforms. Movement on these issues may have to await the new government takes office in August 2003 (national elections take place on April 27, 2003). In the meanwhile, the fiscal deficit has grown, and Paraguay's external debt now reaches 40% of current GDP.

The central government budget, excluding decentralized agencies and state-owned enterprises, represents more than 20% of GDP.

DEFENSE

The constitution designates the president as commander in chief of the armed forces. Military service is compulsory, and all 18-year-old males—and 17 year olds in the year of their 18th birthday—are liable for one year of active duty. The 1992 constitution allows for conscientious objection. Of the three services, the army has the majority of personnel, resources, and influence. With about 7,000 personnel, it is organized into three corps, with six infantry divisions and three cavalry divisions. The military has two primary functions: national defense, including internal order, and engaging in civic action programs as directed by the president. The navy consists of about 2,000 personnel divided into three service branches. The air force, the newest and smallest of the services, has about 1,500 personnel.

FOREIGN RELATIONS

Paraguay is a member of the United Nations and several of its specialized agencies. It also belongs to the Organization of American States, the Latin American Integration Association (ALADI), the Rio Group, INTELSAT, INTERPOL, and MERCOSUR (the Southern Cone Common Market). Its foreign policy has followed closely the Rio Group's lead on many issues of wideranging political importance. Paraguay is closely aligned with its MERCOSUR partners on many political, economic and social issues.

U.S.-PARAGUAY RELATIONS

U.S. Interests in Paraguay

The United States and Paraguay have an extensive relationship at the government, business, and personal level. Paraguay is a partner in hemispheric initiatives to improve counternarcotics cooperation, combat money laundering and other illicit cross-border activities, and adequately protect intellectual property rights. The United States looks to Paraguay, which has substantial rainforest and riverine resources, to engage in hemispheric efforts to ensure sustainable development. As a member of MERCOSUR, Paraguay supports the move toward a Free Trade Area of the Americas. The United States and Paraguay also cooperate in a variety of international organizations.

Paraguay has taken significant steps to combat terrorism-financing activity in the tri-border area it shares with Argentina and Brazil. It participates in antiterrorism programs and fora with its neighbors and the United States.

The United States strongly supports consolidation of Paraguay's democracy and continued economic reform, the cornerstones of cooperation among countries in the hemisphere. The United States has played important roles in defending Paraguay's democratic institutions, in helping resolve the April 1996 crisis, and in ensuring that the March 1999 change of government took place without further bloodshed.

Bilateral trade with the United States has steadily declined over the years, as the Paraguayan economy remained mired in a long-term recession. Although U.S. imports from Paraguay are only about $32 million per year, U.S. exports to Paraguay approached $396 million in 2001, according to U.S. Customs data. (Not all U.S. exports are reflected in Paraguayan government data.) More than a dozen U.S. multinational firms have subsidiaries in Paraguay. These include firms in the computer, agroindustrial, telecom, and banking and other service industries. Some 75 U.S. businesses have agents or representatives in Paraguay, and more than 3,000 U.S. citizens reside there. In November 1998, U.S. and Paraguayan officials signed a memorandum of understanding on steps to improve protection of intellectual property rights in Paraguay, and in 2001 Paraguay improved enforcement efforts against contraband and piracy activities.

U.S. Assistance

The U.S. Government has assisted Paraguayan development since 1942. The U.S. Agency for International Development (USAID) currently supports a variety of programs to strengthen Paraguay's democratic institutions in the areas of civil society, local government and decentralization, and national reform of the state. Other important areas of intervention are the environment and public health. Current plans call for the development of new activities supporting economic growth. The total amount of the program is $11 million in fiscal year 2002.

The U.S. Department of State and the Drug Enforcement Administration provide technical assistance, equipment, and training to strengthen counternarcotics enforcement and to assist in the development and implementation of money laundering legislation. The U.S. Department of Defense provides technical assistance and training to help modernize, professionalize, and democratize the military. The Peace Corps has about 180 volunteers working throughout Paraguay on projects ranging from agriculture and natural resources to education, rural health, and urban youth development. The Office of Public Diplomacy also is active in Paraguay, providing information on the United States to the press and public, as well as helping to arrange educational and citizen exchanges to promote democracy.

Principal U.S. Embassy Officials

Asuncion (E), 1776 Mariscal Lopez Ave., Casilla Postal 402 • Unit 4711, APO AA 34036-0001, Tel [595] (21) 213-715, Fax 213-728.

Last Modified: Monday, December 15, 2003

Other Contact Information

U.S. Department of Commerce

International Trade Administration Office of Latin America and the Caribbean
14th and Constitution Ave., NW
Washington, DC 20230
Tel: (202) 482-0477
800-USA-TRADE Fax: (202) 482-046
http://infoserv.ita.doc.gov

Paraguayan-American Chamber of Commerce
Oficina 4, Piso 521, Diaz General Edif.

El Faro Internacional, Piso 4
Asuncion, Paraguay
Tel: (595) 21-442-135
E-mail: [email protected]
(Branch office in Ciudad del Este)
http://pamcham.com.py

TRAVEL

Consular Information Sheet
November 5, 2003

Country Description: Paraguay is a constitutional democracy with a developing economy. Tourist facilities are adequate in the capital city of Asuncion, but they vary greatly in quality and prices. Tourist facilities outside of Asuncion are poor in major cities and almost nonexistent in remote areas.

Entry and Exit Requirements: A passport and visa are required. U.S. citizens traveling to Paraguay must submit completed visa applications in person or by mail to the Paraguayan Embassy or one of the consulates, and pay a fee. Application forms are available from the Paraguayan Embassy or Consulate by email or fax. Tourist visa applicants must present with their application a passport with at least six months validity from the date of the application; one passport photograph; a bank statement or other evidence of financial solvency; and a round-trip ticket or a printed trip itinerary prepared by a travel agency. Persons traveling on business must also submit a company letter. Applicants under 18 years of age traveling alone must appear with both parents or a legal guardian. In case of a guardian, an original and one copy of proof of legal guardianship is required. A document of authorization from parents/guardian will be accepted only if it is notarized and certified by the county clerk. There is an airport departure tax, payable in either U.S. or local currency (no credit cards or checks accepted). For current information concerning entry and customs requirements for Paraguay, travelers may contact the Paraguayan Embassy at 2400 Massachusetts Avenue N.W., Washington, D.C. 20008, telephone (202) 483-6960, Internet: http://www.embassy.org/embassies/py.html; email: [email protected]; or the Paraguayan consulate in Los Angeles, Miami, or New York. The Paraguayan consulates in Kansas City, New Orleans, Detroit, and Puerto Rico are not authorized to issue visas.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parents or legal guardian(s) not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

Safety and Security: As stated in the Department of State's latest Worldwide Caution, U.S. citizens overseas may be targeted by extremist groups and should maintain a high level of vigilance. Individuals and organizations with ties to extremist groups operate in Ciudad del Este and along the tri-border area between Paraguay, Brazil and Argentina. Because of concerns about the lack of security in border areas, the U.S. Embassy in Asuncion requires U.S. Government personnel and their family members to provide advance notice and a travel itinerary when traveling to Ciudad del Este or Pedro Juan Caballero. As a general precaution, the Embassy also counsels its employees traveling outside of the capital to provide an itinerary including dates, contact names and telephone numbers where the employee may be reached.

Several high-profile kidnappings for ransom have occurred. Although kidnapping remains rare, the problem appears to be increasing. Targets are usually established members of the business community.

U.S. citizens should avoid large gatherings or any other event where crowds have congregated to demonstrate or protest. Such activities have resulted in intermittent road closures including major routes traveled by tourists and residents. Curfews are occasionally imposed. While generally nonviolent, roadblocks have turned violent in the past. Areas where such closures and barricades exist should be avoided. U.S. citizens who encounter roadblocks should not at tempt to continue the planned travel or to confront those at the roadblock. Instead, they should wait for the road to reopen or return to the origin of their trip. Uniformed police often conduct roving checks of vehicles and passengers.

Crime: Given endemic poverty and an average yearly income of around $940, Paraguayans often perceive all U.S. citizens, whether Peace Corps volunteers, missionaries, school teachers, or business owners, as prosperous even when by U.S. standards the U.S. citizen may not be. Crime is particularly on the rise in rural areas of the country. Criminals have increasingly assaulted, robbed, raped and even killed U.S. citizens and others thought to be wealthy. Local authorities have demonstrated a lack of the skills, resources, and reliability to solve these cases. Under these circumstances, U.S. citizens traveling to or residing in Paraguay should be aware of their surroundings and security at all times. They should take common sense precautions including refraining from displaying expensive-looking cameras and jewelry, large amounts of money, or other valuable items. Resistance to armed assailants has often aggravated the situation and therefore is not advised.

Armed robberies, car thefts, and home invasions are on the rise. Street crime, including pick pocketing and mugging, is prevalent in the cities, particularly during the evening hours in the vicinity of hotels and airports. The numbers of pick-pocketing incidents and armed assaults are also increasing on public buses and in the downtown area of Asunción. There have been incidents of pilferage from checked baggage at both airports and bus terminals. Travelers have found it prudent to hide valuables on their person or in carry-on luggage. Unauthorized ticket vendors also reportedly operate at the Asuncion bus terminal, badgering travelers into buying tickets for substandard or non-existent services.

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. embassy or consulate. U.S. citizens can refer to the Department of State's pamphlet, "A Safe Trip Abroad," for ways to promote a more trouble-free journey. The pamphlet is available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402; via the Internet at http://www.gpoaccess.gov/index.html, or via the Bureau of Consular Affairs home page at http://travel.state.gov/.

Medical Facilities: Good medical facilities, supplies, and services are available only in Asuncion. Elsewhere, these are limited and may not exist.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the U.S. unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas, including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost well in excess of $50,000. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, please ascertain whether payment will be made to the overseas healthcare provider or if you will be reimbursed later for expenses that you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, "Medical Information for Americans Traveling Abroad," available via the Bureau of Consular Affairs home page or autofax: (202) 647-3000.

Other Health Information: Information on vaccinations and other health precautions may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at http://www.cdc.gov/.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Paraguay is provided for general reference only, and it may not be totally accurate in a particular location or circumstance:

Safety of Public Transportation: Fair
Urban Road Conditions/Maintenance: Poor
Rural Road Conditions/Maintenance: Poor
Availability of Roadside Assistance: Fair

U.S. citizens have been injured and killed in traffic accidents. Only minimal standards must be met to obtain a Paraguayan driver's license, and driver education prior to licensing is not common. Drivers throughout Paraguay routinely ignore traffic regulations. No vehicle insurance is required, and many Paraguayans drive without any insurance coverage. Persons who drive in Paraguay should be prepared to drive defensively and with their own insurance in both urban and rural areas.

Public transportation is readily available for urban and inter-city travel. Buses vary in maintenance conditions and may not meet U.S. safety standards. Armed robberies occur on buses, sometimes with the apparent collusion of the bus driver. Taxis are available and may be called using telephone numbers listed in the newspapers. No passenger train service exists. Bicycle travel may not be safe due to traffic and other road hazards.

Most urban streets consist of cobblestones over dirt. Some roads in Asuncion and other large cities are paved. However, these roads frequently develop potholes that often remain without repair for several months. Nearly all rural roads are unpaved, and during rainy periods and the rainy season (November-March/April) they may be impassable. Road signs indicating hazards, such as sharp curves or major intersections, are lacking in many areas. Driving or traveling at night is not advisable outside Asuncion because animals or vehicles without proper lights are often on the roads.

In addition, assaults and other crimes against motorists traveling at night have occurred. Extra precautions should be exercised in the countryside and specifically in the San Pedro, Caaguazu and Canindeyu departments due to reports of car-jacking by armed bandits along infrequently traveled portions of the rural roads in those areas and other road hazards.

The Ministry of Public Works and Communications (MOPC) is responsible for maintaining highways. In March 2002, the Minister of Public Works and Communications declared that only the privately maintained toll road between Caaguazu and Ciudad del Este, heading toward the Brazilian border, was in good condition. All other routes were in poor condition and likely to remain so due to insufficient funds.

In Asuncion, the following phone numbers exist for roadside/ambulance assistance:

Emergency Services, including ambulances: 141;

Police: 130;

Fire Department, including rescue of accident victims: 132, or 225-400; Robberies and Accidents: 130; Vehicle Thefts: 130.

The Touring and Automobile Club provides some roadside assistance to its members. The Club may be contacted in Asuncion by visiting its offices at 25 de Mayo near Brasil, First Floor, or telephoning 210-550, 210-551, 210-552, 210-553, Monday through Friday from 8:00 a.m. to 5:00 p.m., or Saturday from 8:00 a.m. to noon, except for Paraguayan holidays. The Touring Club also has offices in Ciudad del Este (tel. 061-512-340), Coronel Oviedo (tel. 0521-203-350), Encarnacion (tel. 071-202-203), Pilar (tel. 0975-617-575), Pozo Colorado (tel. 093-516), and Loma Plata (tel. 0918-2610). Towing services are scarce outside of urban areas. Twenty-four-hour tow truck services from Asuncion may be contacted by telephoning (21) 224-366. For an extra fee, these companies may provide service outside of Asuncion, but they typically demand immediate payment and may not accept credit cards.

For additional general information about road safety, including links to foreign government sites, please see the Department of State, Bureau of Consular Affairs home page at http://travel.state.gov/road_safety.html. For specific information concerning Paraguay's driver's permits, vehicle inspection, road tax and mandatory insurance, please contact the tourist offices in the Paraguayan Embassy in Washington, D.C. Internet: http://www.embassy.org/embassies/py.html; or the Paraguayan consulates at the locations noted in the above section on "Entry and Exit Requirements." Information may also be obtained from the Touring and Automobile Club in Asuncion.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Paraguay's Civil Aviation Authority as Category 2 — not in compliance with international aviation safety standards for the oversight of Paraguay's air carrier operations. While consultations to correct the deficiencies are ongoing, Paraguay's air carriers currently flying to the United States will be subject to heightened FAA surveillance. No additional flights or new service to the United States by Paraguay's air carriers will be permitted unless they arrange to have flights conducted by an air carrier from a country meeting international safety standards. For further information, travelers may contact the Department of Transportation within the U.S. at telephone

1-800-322-7873, or visit the FAA's Internet website at http://www.faa.gov/avr/iasa.

The U.S. Department of Defense (DOD) separately assesses some foreign air carriers for suitability as official providers of air services. In addition, the DOD does not permit its personnel to use air carriers from Category 2 countries for official business except for flights originating from or terminating in the United States. Local exceptions may apply. For information regarding the DOD policy on specific carriers, travelers may contact the DOD at telephone (618) 229-4801.

Customs Regulations: Paraguay's customs authority may enforce strict regulations concerning temporary importation into or export from Paraguay of items such as firearms, medications, toys resembling weapons, or protected species. U.S. citizens have been arrested and detained by Paraguayan authorities for importing such items. It is advisable to contact the Paraguayan Embassy in Washington, D.C. or one of Paraguay's consulates in the United States for specific information regarding customs requirements.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the U.S. for similar offenses. Persons violating Paraguay's laws, even unknowingly, may be expelled, arrested, or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Paraguay are strict, and convicted offenders can expect jail sentences and heavy fines. Prison conditions are harsh. For additional information on the Paraguayan criminal justice system and facilities, please review the most recent Human Rights Report available on the State Department website at http://www.state.gov.

Children's Issues: For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/children's issues.html, or telephone (202) 736-7000.

Registration/Embassy Location: Americans living in or visiting Paraguay are encouraged to register at the Consular Section of the U.S. Embassy in Asuncion and obtain updated information on travel and security in Paraguay. The U.S. Embassy is located at 1776 Mariscal Lopez Avenue; telephone (011-595-21) 213-715, fax (011-595-21) 213-728; Internet: http://asuncion.usembassy.gov.py. The Consular Section is open for U.S. citizen services, including registration, Monday through Thursday from 1:00 p.m. to 5:30 p.m. and Friday from 7:30 a.m. to 11:30 a.m., except for U.S. and Paraguayan holidays.