File No. 834.00/141.

The American Chargé d’Affaires to the Secretary of State.

[Extract.]
No. 36, Paraguay.]

Sir: Complying with the Department’s instruction No. 7, Paraguay Series, of June 3, 1912,1 I have the honor of submitting the following report upon the internal condition of Paraguay.

The Legation finds itself limited in the getting of information. Such as is contained in the press telegrams is often contradictory and meagre of detail. On the whole, however, the situation has improved.

Señor Schaerer, noted in my despatch of May 30, 1912 (Paraguayan Series 34) as being among the presidential possibilities, has been unanimously chosen by the Electoral College as President, in spite of the supposed opposition to him of the more intelligent vote. (See despatch referred to). The Vice President chosen is Señor Pedro Bobadilla.

The action of the Electoral College has, it appears, been upheld in both these elections by the opinion in the Provinces, through which Señor Schaerer has recently made a long trip on which he was enthusiastically welcomed. * * *

Several of the late telegrams deal with the personnel of the new Government. The Cabinet officers are given as follows:

  • Interior: Señor José Montero.
  • Public Industries: Señor Paiva.
  • Finance: Señor Zubizarreta.
  • War: Señor Gondra.
  • Foreign Affairs: Señor Ayala.

The President of the Assembly is Dr. Haeda. [Other appointments.]

The new Paraguayan Chamber is to meet on Tuesdays, Thursdays, and Saturdays and a bill of some importance, in view of one or two American claims which Mr. Ferris notifies me are now on file at the Consulate in Asuncion, has recently been introduced providing for the creation of a special commission to sit upon the claims of damages arising from the war.

* * * The most serious matter in Paraguay at the present moment appears to be the condition of the finances. The Minister of Finance announces a deficit of $22,000,000 Paraguayan on the budgets of 1910, 1911, and the first quarter of 1912. This amount must be provided for in addition to a total of $5,000,000 for back salaries, an item which would seem to show that the internal peace of Paraguay is largely a question of finance.

I have [etc.]

Richard E. Pennoyer.
  1. Not printed.