The Acting Secretary of State to the Minister in Paraguay (Frost)
55. Your 93, July 1, 4 p.m., and the Department’s 53, July 7, 8 p.m.26 As you are aware, the Export-Import Bank has formally opened a credit of up to $300,000 for agricultural development. Mr. Pierson set forth his views fully when in Asunción and has since received no proposals or suggestions of any kind from the Paraguayan Government nor any indications that Paraguay plans either to accept or reject the offer.
With respect to Mr. West’s studies, he has indicated that for some $400,000 it should be possible to build a new dock at Encarnación and repair those at Pilar and Concepción. The Export-Import Bank is prepared to finance these works and will shortly make available details as to how it will carry them out.
With regard to a dredge, Mr. West reports that the dredge belonging to the Paraguayan Government was in dry dock undergoing repairs, and that shortly it should be available for service. He states [Page 489] that none of the hydrographic engineers indicated that any more dredging equipment is either necessary or desirable.
The Export-Import Bank has also extended until December 31, 1941 the existing line of credit of $500,000 to the Banco de la República.