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
History of Paraguay (to 1811) those of the Jesuits. Tensions between the natives and the Europeans grew steadily during the last years of the 18th century. Almost no archaeological research has been done in Paraguay, and the pre-Columbian history of the country is amazingly documented. What is certain is that the eastern part of the country was occupied by Guaraní Indians for at least 2 years before the Spanish conquest. Evidence indicates that those indigenous inhabitants developed a fairly sophisticated level of political autonomy, with quasi-sedentary, multivillage chiefdoms. The recorded history of Paraguay began indirectly in 1516 with the failed expedition of Juan Díaz de