History of Paraguay its capital, and Río de la Plata, with headquarters in Buenos Aires. With this decision, Asunción lost control of the Río de la Plata estuary and became dependent on Buenos Aires for maritime shipping. In 1776, the crown created the Viceroyalty of Río de la Plata; Paraguay, which had been subordinate to Lima, now became a provincial outpost of Buenos Aires. Located at the periphery of the empire, Paraguay served as a buffer state. The Portuguese blocked Paraguayan territorial expansion in the north, native tribes blocked it – until their expulsion – in the south, and the Jesuits blocked it
Paraguay–Spain relations part of the International Brigades for the Republican faction and they fought in the Battle of the Ebro. Paraguay maintained diplomatic relations throughout General Francisco Franco’s administration. Relations between Paraguay and Spain strengthened under the Presidency of Alfredo Stroessner. In July 1973, President Stroessner paid an official visit to Spain and met with General Franco. In October 1990, Spanish King Juan Carlos I paid his first official visit to Paraguay. The King would visit Paraguay again in 2006 and once more in 2011 to attend the Ibero-American Summit being held in the Paraguayan capital. In June 2015, Paraguayan President Horacio