Paraguay was inhabited by
groups of nonsedentary & semisedentary indigenous people when the Spanish entered what is
now known as Paraguay in the 16th century. The Spanish were to form an alliance with the
Guarani. In 1537 the town of Asuncion was founded. Acuncion was
established as a small Spanish defense outpost
against the Portuguese & a trading stopover
for the silver mines of Buenos Aires & Potosi.
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