834.51/353: Telegram

The Secretary of State to the Minister in Paraguay ( Frost )

74. The Paraguayan Minister has left with the Department a memorandum32 indicating that his Government would accept in [Page 493] principle the $400,000 credit for Mandioca on the following conditions: (1) that there may be one and not two experts, and (2) that the amortization and interest be payable with the products made with the Mandioca.

It is, of course, out of the question for this Government to agree to the latter condition. Please discuss the matter with the Paraguayan authorities and give the Department your views and their views as to the desirability of utilizing a part of the $900,000 for the Mandioca project, or whether it would be better to utilize the funds as suggested in the Department’s no. 62 of July 23, 1941.

  1. Not printed.