Memorandum by the Liaison Officer (Wilson) to the Secretary of State
The Secretary: I believe it would be advisable, if possible, to avoid any mention to the press of the signature of a basic lend-lease agreement with Paraguay. It would be unfortunate if other governments of the American Republics were to learn of the payment terms given Paraguay.
Under the agreement you have just signed,9a this Government proposes to transfer to Paraguay armaments and munitions of war to a total value of $11,000,000, of which there would be shipped during the twelve months’ period up to July 1, 1942 an approximate total value of $2,000,000 for use by the Paraguayan Army, and an approximate total value of $1,000,000 for use by the Paraguayan Navy. The payment schedule in the agreement provides for remittances by Paraguay of $50,000 per annum for six years, the total payments of $300,000 amounting to less than 3 percent of the $11,000,000 in armaments and munitions. These are the most generous terms being given to any of the American Republics.