1

Communists: Oscar Creydt faction and Miguel Angel Soler faction (both
illegal); 3,000 to 4,000 (est.) party members and sympathizers in Paraguay,
very few are hard core; party beginning to return from exile is small and
deeply divided

Other political or pressure groups: Febrerista; Authentic Radical
Liberal; Christian Democratic Parties; Confederation of Workers (CUT);
Roman Catholic Church

Member of: CCC, FAO, G-77, IADB, IAEA, IBRD, ICAO, ICO, IDA,
IDB--Inter-American Development Bank, IFAD, IFC, ILO, IMF, INTELSAT, INTERPOL,
IPU, IRC, ITU, LAIA, OAS, SELA, UN, UNESCO, UPU, WHO, WMO, WSG

Diplomatic representation: Ambassador Marcos MARTINEZ MENDIETA; Chancery
at 2400 Massachusetts Avenue NW, Washington DC 20008; telephone (202) 483-6960
through 6962; there are Paraguayan Consulates General in New Orleans and
New York, and a Consulate in Houston; US--Ambassador Timothy L. TOWELL;
Embassy at 1776 Avenida Mariscal Lopez, Asuncion (mailing address is
C. P. 402, Asuncion, or APO Miami 34036-0001); telephone p595o (21) 201-041
or 049

Flag: three equal, horizontal bands of red (top), white, and blue with an
emblem centered in the white band; unusual flag in that the emblem is different
on each side; the obverse (hoist side at the left) bears the national coat of
arms (a yellow five-pointed star within a green wreath capped by the words
REPUBLICA DEL PARAGUAY, all within two circles); the reverse (hoist side
at the right) bears the seal of the treasury (a yellow lion below a red Cap of
Liberty and the words Paz y Justica (Peace and Justice) capped
by the words REPUBLICA DEL PARAGUAY, all within two circles)

- Economy
Overview: The economy is predominantly agricultural. Agriculture,
including forestry, accounts for about 25% of GNP, employs about 45% of
the labor force, and provides the bulk of exports. Paraguay has no known
significant mineral or petroleum resources, but does have a large
hydropower potential. Since 1981 economic performance has declined
compared with the boom period of 1976-81, when real GDP grew at an
average annual rate of nearly 11%. During 1982-86 real GDP fell three
out of five years, inflation jumped to an annual rate of 32%, and
foreign debt rose. Factors responsible for the erratic behavior of the
economy were the completion of the Itaipu hydroelectric dam, bad weather
for crops, and weak international commodity prices for agricultural exports.
In 1987 the economy experienced a modes