The residence was built by Paraguay's first president, Carlos Antonio López, as a mansion for his son Francisco Solano López. Construction began in 1857 under the direction of British architect Alonso Taylor and was largely completed by 1867.
However, during the Paraguayan War (1864-1870), the combined forces of Brazil and Argentina attacked Asunción, stationed troops here, and looted decorative items and furniture, leaving the palace in ruins.
In 1890, the 9th President, Juan Gualberto González, began restoration work, but it was interrupted by a coup. In 1894, the 10th President, Juan Bautista Egusquiza, completed the work and resided here. It served as the presidential residence until the mid-20th century.
Today, it is sometimes called the López Palace, but its official name is the Government Palace, and the president does not reside there.
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