834.51/354: Telegram

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

130. Department’s No. 74, August 14 [13], 7 a.m. [2 p.m.] Finance Minister, head of inter-departmental committee states proposals in Department’s No. 62 in general acceptable, with two requests. First, Minister of Agriculture would like 100,000 additional loan for mandioca development with one American expert. This would bring total program to $1,000,000 which is a respectable round figure to announce. Second, Minister of Finance believes port works and cold storage loans can be financed from harbor dues and warehouse fees but sees no way of financing loans for feed[er] roads. Would it be possible to consider the roads strategic in connection with air bases and arrange under Lend-Lease Act33 to finance them on same basis as arms?

  1. Approved March 11, 1941; 55 Stat. 31.