The Secretary of State to the Paraguayan Minister (Estigarribia)
Excellency: I have received with pleasure your communication of June 13, 1939 with reference to the possibilities of increased economic [Page 762] cooperation between the United States and Paraguay which I have discussed with you from time to time during the period of your residence in Washington. You also inform me of your early departure for your own country due to the change in Government which is to take place in Paraguay on August 15.
Please accept once again my sincere congratulations on your election to the high office of President of Paraguay, and my assurances of the personal pleasure afforded me by our association during your mission in Washington. Your generous comment with respect to President Roosevelt and myself is very deeply appreciated. It has been for us a pleasure to have given you the full measure of our assistance and cooperation during your mission, and I wish to take this opportunity to assure their continuance during the period of your Presidency. I am happy to learn of your wholehearted approval of the policy of inter-American cooperation which in the light of sombre developments in other parts of the world takes on added importance.
I appreciate the problems confronting your country as a result of the Chaco war and in connection with the development of its resources and I am sure that our two Governments can cooperate with mutual advantage in solving these problems. The United States is very pleased to have had a part in bringing to a successful conclusion the negotiations at Buenos Aires which culminated in the Treaty of July 21, 1938, between Paraguay and Bolivia,7 thus bringing to an end a long and costly dispute in a manner which presents to the world a striking proof of the fact that international disputes can be settled by peaceful means.
I am pleased to note the generous appreciation of the Government of Paraguay for the cooperation being extended by my Government in studying and encouraging the expansion of production of appropriate noncompetitive agricultural products which will complement production in and furnish the United States with necessary and assured sources of supply. Moreover, the opinion of the Government of Paraguay that the development of the nation’s economy and natural resources and of economic relations between Paraguay and the United States may further be stimulated by the provision of adequate transportation facilities appears to me to be well founded. I am informed that the Export-Import Bank has found it possible to assist in the attainment of this objective by arranging the financing in the United States of equipment, materials and essential services for the extension and improvement of the transportation facilities of Paraguay and [Page 763] for the development of other projects designed to increase the productive capacity of your country.8
My Government is pleased to note that it is the desire of the Government of Paraguay to encourage the expansion of Paraguayan foreign commerce and economic relations with the United States by carrying out a policy of meeting promptly commercial obligations to United States nationals and concerns and reducing seasonal and unusual fluctuations in the rate of exchange of the peso. I am further informed that the Export-Import Bank has agreed to assist in the carrying out of this policy by the extension to the Banco de la Republics del Paraguay of a credit. A communication in regard to these matters has been addressed to you by the President of the Export-Import Bank.
I also have noted with gratification the assurance that it is the intention of the Government of Paraguay to accord every appropriate protection and security to encourage the investment of capital and technical experience of United States citizens in the development of Paraguay’s natural resources.
It is the sincere hope of my Government that the arrangements outlined in the foregoing paragraphs will be carried through successfully, that they will result in genuine advantages to both countries, and will furnish another example of the mutually profitable cooperation possible among the American republics.
- Bolivia, Ministerio de Relaciones Exteriores, Colección de Tratados Vigentes de la República de Bolivia, vol. v, p. 331.↩
- In a letter dated June 13, 1939, the President of the Export-Import Bank of Washington agreed to the establishment of credit for the Banco de la República del Paraguay not to exceed $500,000 to be utilized prior to June 30, 1941.↩