The growing political crisis in Paraguay yesterday threatened the stability of the ambitious regional economic union, Mercosur, comprising Argentina, Brazil, Uruguay and Paraguay. "Paraguay must abide by democratic rules," warned Brazilian President Fernando Henrique Cardoso yesterday, adding that in the event of a coup, "Paraguay is out of Mercosur". Thousands of pro- and anti-government demonstrators maintained their round-the-clock siege of Paraguay's parliament, where President Raul Cubas faces impeachment. The last week has seen the assassination of Mr Cubas's vice-president - and main rival - Dr Luis Maria Argana, and unusual troop movements following the disputed arrest of Gen Lino Oviedo for involvement in an attempted coup.
The Brazilian President also said his country would "ensure the safety" of Brazilian citizens in Paraguay and the security of the billion-dollar bi-national ITAI hydro-electric project, without specifying planned measures.
Argentina's President Carlos Menem declared that Mercosur was "in bereavement", while Chilean President Eduardo Frei expressed "grave concern" that the crisis could shake the region's fragile stability.
Last Tuesday's assassination of Dr Argana unleashed a wave of protests which forced the nation's parliament to begin impeachment procedures against Mr Cubas on five counts, including "incompetence" and "disobeying Supreme Court judgments".
President Cubas is a political ally of Gen Oviedo, who was placed under military arrest after the Argana killing, in a move aimed at calming popular sentiments. Gen Oviedo, a political enemy of Dr Argana, had issued veiled threats against him and other political rivals in past months.
The ruling Colorado Party is bitterly divided over the leadership of Gen Oviedo, imprisoned last year for a 1992 coup attempt, but pardoned by President Cubas, who won the elections thanks to Gen Oviedo's backing.
"We have asked for the people to mobilise to support congress, even though we know this means risking lives," said senate president Mr Luis Gonzalez Macchi, a supporter of Dr Argana and the likely new president should Mr Cubas be removed from power.
In a report published yesterday, the Economic Commission for Latin America and the Caribbean (CEPAL) predicted economic downturn for Paraguay but a speedy post-Brazil crisis recovery for Chile and Argentina. "The recovery process will begin sooner in Argentina and Chile because they have lowered interest rates and stabilised capital outflow," said CEPAL executive-director and former Colombian treasury minister Mr Jose Antonio Campo.
"This can't continue for long more," Mr Martin Almada, a Paraguayan political analyst, told The Irish Times yesterday. "The country is on the brink of total collapse."
AFP adds: At least 50 people were injured when hundreds of demonstrators hurling stones and fireworks clashed with police as opposing camps in Paraguay's political crisis faced off. Several people sustained wounds from rubber bullets and many more were overwhelmed by teargas, which formed a cloud over the Plaza de Armas in front of the Congress.
Police initially dispersed the protesters, who later reclaimed control of the square, repelling a charge by mounted police. Chanting "murderers, murderers" the protesters hurled bricks, sticks and chairs at the police.