Office of the Historian

834.24/472: Telegram

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

Washington, September 8, 1943—1 p.m.

376. Reference Embassy’s 483 September 2, 2 p.m.46 The Department and OEW47 are fearful that the issuance of the simplified import recommendation forms for non-quota materials which are urgently needed and waiving all forms on the remainder of non-quota goods might not be productive of desired results since exceptional procedures tend to confuse rather than facilitate operations here.

The Department understands that there is legislation in Paraguay requiring an import permit for all goods entering the country, and it would appear possible to control the flow of non-essentials through this mechanism.

One of our foreign Missions has made the following suggestion. The simplified import recommendation or any other suitable form would be required abroad, thereby enabling the Embassy and Country Agency to continue control over imports, shipping space, and consignees. [Page 271] The import recommendation form would not, however, be forwarded to the U. S. and procedures of Alternative III48 would be operative in this country. In effect, this suggestion provides for the preservation of controls in the field and permits exporters in this country to offer their wares abroad to the same extent as they could prewar within the willingness of the foreign Government to issue an import permit.

It appears desirable to take all practical steps to reestablish Importer–Exporter relationships with a minimum of government intervention. It is believed here that existing documentation tends to stifle trade and encourage importers in the other American republics to seek other actual or potential sources of supply and exporters in this country to abandon their efforts to preserve their foreign markets and allow the materials to be diverted to consumption in this country.

It is desired to effect the simplification of procedure October 1, 1943, for those countries that have accepted Alternative III and the Embassy is requested to telegraph whether Paraguay will accept Alternative III.49

Hull
  1. Not printed.↩
  2. Office of Economic Warfare, successor agency to the Board of Economic Warfare.↩
  3. See circular airgram of August 23, 7 p.m., p. 122.↩
  4. This acceptance was indicated in the Ambassador’s telegram No. 504, September 14, 3 p.m. (834.24/480).↩