834.51/395a: Telegram

The Secretary of State to the Ambassador in Brazil (Caffery)

1228. For West26 from Export-Import Bank. In lieu of previous commitments which were not utilized the Bank has agreed to extend up [Page 659] to $3,000,000 credit to Paraguay for public works or agricultural projects to be approved by the Bank. In addition the Coordinator’s Office will contribute up to $1,000,000 on public health and sanitation. Dunham and Plunkett representing Coordinator will leave Rio May 16 for Asunción. It is requested that you proceed to Asunción at once to assist in studies precedent to selection of projects to be proposed in immediate future for financing by the Bank. Port works and feeder roads continue to be mentioned but nothing definite has ever been received from Paraguay. Present difficulty in obtaining new equipment must be considered. Mesa27 believes port works can be accomplished for less than $400,000 without importation equipment from this country. We have discussed with Coordinator possibility of utilization of portion of credit for Asunción waterworks if and when materials available. Please advise date your departure. [Export-Import Bank.]

  1. Robert K. West, representative of Export-Import Bank.
  2. A. R. Mesa, American engineer sent to Paraguay by R. W. Hebard Company.