834.50/23: Telegram

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

121. From Welles.15 Your no. 157, April 20, 3 p.m., and despatches and correspondence. The Department is discussing thoroughly with the Paraguayan Ambassador and appropriate Government agencies the working out of a suitable further cooperative program with Paraguay. The Paraguayan Ambassador has requested assistance with respect to agricultural and industrial development, highways and other public works, and health projects.

For your information, considerable progress is being made already in the field of health and sanitation cooperation and the Coordinator of Inter-American Affairs is prepared to enter at once into an arrangement with Paraguay to begin general health and sanitation works16 and to study the possibility of proceeding with any water and sewage works in the face of the impossibility of obtaining materials for the purpose in the United States at this time. Further conversations on [Page 656] this score will take place this week, and it is contemplated that Dr. G. C. Dunham, director of health and sanitation work for the Coordinator’s Office will be sent to Asunción about May 10 if the basic agreement can be reached with the Paraguayan Ambassador.

In addition the Ambassador is beginning this week conversations with Mr. Pierson17 of the Export-Import Bank with respect to the already authorized credits for certain port works at Pilar, Concepción and Encarnación, and possibly further local road work. In addition the appropriate agencies of this Government are considering the possibility of making available to Paraguay the services of one or two agricultural and industrial experts.

The Department will keep you informed of the progress of these discussions. [Welles.]

  1. Sumner Welles, Under Secretary of State.
  2. For agreement between the United States and Paraguay regarding health and sanitation program for Paraguay, see Department of State Executive Agreement Series No. 436, or 58 Stat. (pt. 2) 1495.
  3. Warren Lee Pierson, president of the Export-Import Bank.