834.50/27: Telegram

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

195. For the Under Secretary. In reply your 129, May 4, 6 p.m.; and Department’s 131, May 4, 8 p.m. Argaña asks me inform you that Paraguay accepts both the four sanitary and the four agricultural experts. A defense mission to recommend projects would have been more agreeable and the acceptance of the experts is based on hope that they will serve in good part to frame and support Paraguayan plans for more loans. Velazquez telegram published here included statement that 3,000,000 credit was opened “without prejudice to consideration of greater aid in future.” I should appreciate your comment on my strong recommendation that loans to Paraguay should be made on a generous discount basis. These people are well aware that their chances of really developing industries and wealth are much worse than Bolivia’s and it [apparent omission] them and us. There is nothing signed which they are very doubtful of being able to carry. I hope Department will take as realistic a view as War Department did regarding Lend-Lease agreement.25

My great fear now is that more delays will ensue. …

. . . . . . . . . . . . . .

  1. Signed September 20, 1941; for text, see Foreign Relations, 1941, vol. vii, p. 480.