16. The petitioners maintain that in 1990, the Indigenous Community, through its leaders, initiated administrative proceedings with the competent agencies, namely the Rural Welfare Institute (IBR) and the Paraguayan Institute of Indigenous Affairs (INDI), with the objective of obtaining restitution of part of its ancestral lands. These proceedings were undertaken within the framework of the procedure established in Law N° 904/81 on the Status of Indigenous Communities, which led to the opening of IBR administrative inquiry N° 15.032/90. 17. The petitioners add that after various years of procedural arguments and the lack of resolution through administrative channels, on June 25, 1999 the leaders of the Indigenous Community requested the Senate to vote a law to expropriate approximately 10,700 hectares corresponding to part of its traditional habitat. The draft law was sponsored by Senator Nidia Ofelia Flores. On November 16, 2000, the Senate rejected the request for expropriation through Resolution N° 693. 18. With respect to the exhaustion of domestic remedies, namely the administrative and legislative procedures contemplated in Paraguayan domestic legislation, the petitioners contend that the Xakmok Kásek Community has tried in every possible way, in conformity with the principles of international law, to exercise its property rights to its traditional lands. 19. The petitioners add that although the Community had access to the domestic remedies provided for under Paraguayan legislation and had pursued these remedies in a timely and substantive fashion, these efforts had not resulted in the effective restitution of the rights of the Community to its lands. They further state that more than 12 years have passed since the Indigenous Community initiated the necessary proceedings to reclaim part of its traditional habitat from the State of Paraguay and that to date the Community has been unable to achieve a definitive solution to its petition. B. The State 20. The State has expressed the following in its initial written response: …Cases brought forward that fulfill the requirements for being handled by an international organization are a matter of priority for the Government of Paraguay and must therefore be dealt with in order to ensure progress in improving the human rights situation in the country. Since this case fulfills these requirements, the Government of Paraguay wishes to reach a friendly settlement with the petitioners and therefore requests the Inter-American Commission on Human Rights to mediate in order to help achieve such an objective. 21. In its observations sent on January 15 and 16, 2002, the State deplored the decision of the petitioners to withdraw from the friendly settlement process and reiterated its commitment to deal with the claims concerning the rights of the indigenous peoples of Paraguay, through measures being instituted by government bodies to ensure the effective enjoyment of the right to community ownership of the lands of the Xakmok Kásek Community, as well as in connection with other rights enshrined in the National Constitution, the American Convention and Agreement N° 169 of the International Labour Organization. Article 64 About Property Owned by the Community Indian peoples have the right, as communities, to a shared ownership of a piece of land, which will be sufficient both in terms of size and quality for them to preserve and to develop their own lifestyles. The State will provide them with the respective land, free of charge. This land, which will be exempt from attachments, cannot be divided, transferred, or affected by the statute of limitations, nor can it be used as collateral for contractual obligations or to be leased. It will also be exempt from taxes. The removal or transfer of Indian groups from their habitat, without their express consent, is hereby prohibited. 3