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
Revolt of the Comuneros (Paraguay) their streets and enforcing the new governor's rule. This wound never healed. By 1721, hatred of the Jesuits was even more intense than it was in the early 1600s. In 1717, Diego de los Reyes Balmaseda became governor of Paraguay. He purchased the position from the Spanish authorities, a practice that had spread at the time. Reyes was a merchant who had made his fortune trading exporting yerba mate from Paraguay and importing various cheap and needed manufactures back to Paraguay, so he was seen as qualified for the post by the Spanish Crown. Reyes was an open admirer of