834.50/24: Telegram

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

131. Your 179, May 3, 5 p.m.22 With regard to the negotiations for economic assistance, the Paraguayan Ambassador has been informed as follows:

The Export-Import Bank is prepared to extend at once a credit of up to $3,000,000 to the Government of Paraguay for the carrying out of public works, agriculture, and other industrial development projects. Each project will be approved after detailed consideration by the Government of Paraguay and by engineers representing the Export-Import Bank and other appropriate agencies of the United States. The opening of this new line of credit will be supplemental to the existing operating credits of $500,000 to the Banco de la República and of $3,000,000 to the Government of Paraguay for the Hebard contract23 but it supersedes the other individual credits offered by the Export-Import Bank during the past year but never availed of by the Government of Paraguay.
The Coordinator of Inter-American Affairs is prepared to enter into an agreement at once with the Government of Paraguay for the carrying out of a cooperative health and sanitation program. The Coordinator proposes to make available as his contribution to the cooperative program the amount of $1,000,000. At the request of the Paraguayan Government the Coordinator is prepared to send at least four trained sanitary and medical experts who would, in collaboration with Paraguayan public health authorities, execute plans for the development and improvement of the existing water works and sanitation system of Asunción as well as other projects agreed upon by them and the appropriate authorities of the Paraguayan Government. The Coordinator is prepared to pay the salaries and full expenses of these four technicians. For the duration of the war it will probably be impossible to furnish for the Asunción water works and sanitation system any important amount of material and equipment.
To assist in the preparation of plans for the improvement and development of Paraguayan agricultural resources, the Coordinator of Inter-American Affairs in cooperation with the Department of [Page 658] Agriculture is prepared to make available at once the services of at least four trained agronomists. As in the case of the sanitary technicians the salaries and full expenses of these agronomists will be borne by the Coordinator of Inter-American Affairs.

A note covering these points is being submitted to the Paraguayan Ambassador in Washington tomorrow.

A separate telegram is being sent you on military equipment.24

  1. Not printed.
  2. See Foreign Relations, 1941, vol. vii, pp. 484 ff. passim.
  3. Telegram No. 132, May 4, 9 p.m.; it stated that highly satisfactory arrangements had been made with respect to the furnishing of military matriel to Paraguay under its Lend-Lease allocation (834.24/146d).