B.  Data on Best Prospects for Agriculture
    and Industry Sector Exports

1.  Matrix of best prospects for agriculture
    and industry sector exports

Not applicable per reftel instructions, please refer to para. 2 below.

2.  Comments

The following are best prospects for U.S. Exporters in the agriculture
and industry sectors:

(A) agricultural machinery and equipment:  Paraguay imports a variety
of agricultural equipment and agricultural products from neighboring
countries.  Nevertheless, Paraguay would be a potential market for U.S.
Farm equipment and machinery, including tractors, combines, and
irrigation equipment.  Given the small market, imports of agricultural
commodities come primarily from Argentina and Brazil.  Occasionally
Paraguay has acquired cotton seed from the United States, however, the
amounts are negligible.

(B)  Computer hardware, software, and network products:  U.S. exports
in this category continue to show steady growth.  A sizable percentage
of the automatic data processing equipment and other electronic
equipment imported into Paraguay is sold in Ciudad del Este, a
commercial center located on the border with Brazil and Argentina, or
re-exported through non-registered trade channels, mainly to Brazil.
The potential for U.S. software products in the Paraguayan market is
limited by widespread piracy.  The market for these products could
expand rapidly if the government of Paraguay continues to show
progress on the protection of intellectual property rights.

(C)  Home entertainment equipment:  Including television receivers, home
video recording and reproducing apparatus, records, tapes and other
recorded sound media, turntables, record and cassette players.

(D)  Communications equipment:

--cellular telephone equipment:  In 1991, Telecel S.A., a joint venture
between U.S. Millicom and a Paraguayan partner, won the bid to operate
a mobile cellular phone service in Asuncion.  The company plans to invest
USD 13 million within the first five years.  Recently, Telecel operations
extended coverage to Ciudad del Este, and it is planning to service
Encarnacion in the near future.

--satellite communications:  Antelco, the national telephone company,
recently obtained a USD 29 million loan from the Japanese government
for the upgrading of the satellite ground station at Aregua and the
construction of a second station.  This project could offer business
opportunities to U.S. telecommunications consultants and manufacturers
of telecommunication equipment if the loan conditions allow the GOP to
issue an international tender for its procurement.  (Note:  U.S. companies
or their subsidiaries abroad may be eligible to participate in
OECF--Japanese loan/grants--tenders.)

--telephone lines:  Antelco has plans for the installation of up to 200,000
new telephone lines in the largest urban centers including Asuncion and
Ciudad del Este.  Given that Antelco does not have the financial
resources to implement the project, the company might  seek  lease-buy
arrangements with private companies.

(E)  Office machines and equipment:  Including parts, etc., for
typewriters and other office machines, calculating and account machines,
cash registers, etc.

(F)  Air traffic control:  The government of Paraguay intends to acquire
a new radar system for the international airport in Asuncion.  The
government would prefer to work with a supplier able to provide
financing for this project.