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
History of Paraguay History of Paraguay The history of Paraguay is a result of development and interaction of varying cultures of indigenous peoples in Paraguay and overseas immigrants who together have created the modern-day Paraguay. Paraguay celebrates Independence Day on May 15, from 1811 to now. William E. Barrett wrote: "Paraguay is the country of prophecy. One of the two smallest nations [as of 1952] on the American continent, it was the first American communistic state, the first American nation to be governed by an absolute dictator (in the modern sense of the term)." The first Spaniards reached this territory in early 16th