Pubdate: Sun, 16 Aug 1998 Source: San Francisco Examiner (CA) Contact: http://www.examiner.com/ PARAGUAY'S NEW PRESIDENT VOWS TO BOOST ECONOMY, BATTLE DRUGS Bitterness is password as Cubas replaces Wasmosy ASUNCION, Paraguay - Raul Cubas Grau took the presidential oath of office Saturday, promising to rejuvenate Paraguay's foundering economy and attack the "scourges of drug trafficking and piracy." The ceremony, which took place in the red-carpeted congressional chamber, marked this South American nation's first transition between elected civilians since a 34-year dictatorship led by Gen. Alfredo Stroessner ended in 1989. After taking the red, white and blue sash and the gold cane that symbolize Paraguay's presidency, Cubas, a 54-year-old engineer, said he would overhaul the public-banking system and take steps to end corruption. "We will begin a frontal assault against poverty, implement social programs, fight drug trafficking and recover the international credibility of our country," Cubas said in his inaugural address to Congress. Cubas succeeded President Juan Carlos Wasmosy, who was barred by law from seeking a second consecutive term. At one time, Cubas served as Wasmosy's economics minister. Bitterly divided But enmity between the two has become so strong that Wasmosy did not even place the presidential sash directly on Cubas' shoulders Saturday. Instead, a congressional leader handed over the sash and gold cane. Cubas and Wasmosy are divided bitterly over the fate of Lino Oviedo, a charismatic former army chief who was jailed by a military tribunal for 10 years in April, accused of leading a coup attempt against Wasmosy in 1996. Cubas has promised to free Oviedo, his political mentor. Cubas and Wasmosy neither exchanged greetings nor mentioned each other in their respective speeches at the inauguration. "You can be sure that in five years you will bid farewell to an outgoing president who had the courage to take decisions and did not protect criminals," said Cubas, who accuses Wasmosy of using Central Bank funds to bail out bankers while ordinary people lost their savings in a financial crisis. He added that he would leave behind "a country which is a little more ordered and less plagued by inequality than the one I am receiving." He later named 11 ministers to his cabinet, including businessman Gerardo Doll as finance minister and former police Gen. Ruben Arias as interior minister. Cubas easily defeated Domingo Laino of the opposition Democratic Alliance on May 10 in this nation of 5.7 million people. The Colorado Party has dominated Paraguayan politics since 1947. Economic policy to come In his speech, Cubas also pledged to fight the piracy of intellectual property, and said he would try to create more manufacturing jobs, which this South American nation has lost by the tens of thousands this decade. Cubas was to unveil his economic policies Monday. Wasmosy said he was proud of his "place in history" as the first elected civilian since Stroessner's fall. "I am sorry I was not able to develop my government program to the fullest and leave the country more prosperous. But even so, I am proud to have guided this country in the hour of peril," he said Saturday. Oviedo was elected Colorado Party presidential candidate last year, with Cubas as his vice-presidential running mate. Cubas, a multimillionaire engineer who owns construction firms and foundries, moved to the No. 1 spot when Oviedo was jailed, and promised to free the former general after he won the election. "If he does that, he would be trampling on the law," Wasmosy said Friday. In an open letter to the people published in local newspapers, Oviedo expressed his happiness at the presidency of Cubas and called for Paraguayans to grant him their support. 1998 San Francisco Examiner Page A 24 - --- Checked-by: Rolf Ernst