The Acting Secretary of State to the Minister in Paraguay ( Mooney )
Sir: Referring to your unsigned despatch, No. 397, of December 23, 1918, and to those portions thereof relating to (1) the refusal of the Paraguayan Government to extend the port concession in favor of the Construction and Engineering Finance Company, and (2) the suggested loan for the purpose of stabilizing the monetary system of Paraguay, retiring outstanding loans and carrying out the port project at Asuncion under government supervision, you will, [Page 333] of course, be guided in any action you may take with regard to the former by the instructions sent to you by this Department since the date of your despatch. As to the second matter, the information at the disposal of this Department seems to vary from that furnished by you in that it is informed that the proposition actually made for the loan contemplated simply the furnishing of a gold reserve for the currency, for which purpose it was estimated that not more than one million dollars would be necessary. This statement comes from reliable sources and is forwarded to you for your information.
I am [etc.]