CNN
February 6, 2000
 
 
Paraguay's Liberals withdraw from ruling coalition


                   ASUNCION, Paraguay (Reuters) -- Paraguay's Liberal Party voted more
                   than two-to-one Sunday to withdraw from the South American nation's
                   three-party National Unity coalition government citing rampant corruption.

                   "We now feel the party no longer identifies with this government. Our party
                   was a guest used to legitimize the government's outrageous acts," Liberal
                   Party manager Juan Felix Bogado told reporters.

                   The marathon party convention which began Saturday night concluded with
                   760 delegates voting to withdraw from the government presided over by the
                   Colorado Party's Luis Gonzalez Macchi. Another 330 Liberal Party
                   members voted to stay.

                   That means that the coalition of Gonzalez's Colorado Party and the social
                   democratic National Encounter Party have fewer deputies in congress than
                   the opposition.

                   "We will act as a responsible and conscientious opposition which will be of
                   great use to the nation," Bogado said.

                   The Liberal Party had the foreign relations and agriculture cabinet posts but
                   Foreign Minister Jose Felix Fernandez Estigarribia has said he would stay
                   on.

                   Paraguay became formally democratic in 1989 after six decades of military
                   rule but remains dominated by the Colorado Party of former dictator
                   Alfredo Stroessner (1954 to 1989) and has struggled with corruption, coup
                   attempts and violence.

                   In March 1999, Vice President Luis Maria Argana was gunned down. One
                   of his political enemies, Gen. Lino Oviedo, was blamed. Bloody riots ensued
                   and both Oviedo and his staunchest ally, President Raul Cubas, fled the
                   country.

                   Paraguay is a full member of Mercosur, the world's third largest trade bloc
                   which includes Argentina, Brazil and Uruguay. One of its founding principles
                   is that all members have democratic governments.

                    Copyright 2000 Reuters.