A country with the size of Brazil can’t fight with Paraguay, said Brazilian president Lula da Silva justifying the Itaipu hydroelectric energy agreement signed last July with his Paraguayan counterpart Fernando Lugo in Asuncion.
He added, “I preferred to give a country like Paraguay the chance to develop”.
Paraguayan President Fernando Lugo continued to purge the top ranks of the military Friday, removing the armed forces' commander. Lugo fired the commanders of the country's army, air force and navy on Wednesday.
In related news the Brazilian Senate postponed for a week a full house vote on the incorporation of Venezuela to Mercosur which is pending since March 2007 when the administration of President Lula da Silva sent the request.
Paraguayan President Fernando Lugo put an end Wednesday to rumors circulating the capital Asuncion about a possible coup by replacing all top military commanders. The announcement came from the armed forces themselves, not the president's office.
A delegation of Chinese private businessmen met this week with Paraguay’s president Fernando Lugo with the purpose of expressing their interest in investing in the country, more precisely in the manufacture of cellular phones, batteries and battery chargers.
The Paraguayan Senate approved by an ample majority the agreement with Brazil which represents a higher financial compensation for Paraguay from Itaipú, the world’s largest operational hydroelectric dam, a long standing claim which was addressed in several summits between presidents Lula da Silva and Fernando Lugo.
“I don’t want nor do I wish my re-election” said Paraguayan president Fernando Lugo on Thursday. However he did admit he favoured the review of some of the Constitution’s articles.
Mercosur junior member Paraguay’s economy again plunged in the second quarter of this year, 4.3%, compared to a year ago, almost the same percentage contraction as in the first quarter, 4.2%, according to the latest release from the country’s Central Bank.
Paraguayan soy bean farmers estimate that this year’s crop (2009/2010), which begins to be planted at the end of the month, could reach a new record close to seven million tons given the good climate prospects and producers enthusiasm.
Paraguay said it was satisfied with Bolivia’s explanations regarding the neighbouring country’s plans to purchase arms and reinforce its military garrisons. The statement follows a Thursday meeting of the two countries Foreign Affairs and Defence ministers in Asuncion, capital of Paraguay.