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
Germans in Paraguay Historic German schools: Germans in Paraguay The German minority in Paraguay came into existence with immigration during the industrial age. The "Nueva Germania" colony was founded in Paraguay in 1888; though regarded as a failure, still exists despite being abandoned by many of its founders in the 1890s. Paraguay was a popular place for German leaders accused of war crimes to retreat after the second World War. Also, there is a large minority of German descendants living in the department of Itapúa, mainly in the Departmental Capital, Encarnación and the German town of Hohenau. Most of the Germans who settle