History of Paraguay (to 1811) Buenos Aires in 1580, the steady deterioration in the importance of Asunción contributed to growing political instability within the province. In 1617 the Río de la Plata Province was divided into two smaller provinces: Paraguay, with Asunción as its capital, and Río de la Plata, with headquarters in Buenos Aires. With this action, 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 an outpost of Buenos Aires. Located at
Germans in Paraguay 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 in this region