The Adviser on Political Relations (Duggan) to the Ambassador in Paraguay (Frost)

Dear Wesley: On August 19 you wrote me about two general questions. This letter will reply briefly to the first of those relating to the economic assistance to be extended to Paraguay under the million dollar credit.

In the first place, your telegram of yesterday48 informs us of the acceptance of the Paraguayan Government of the detail of the cement experts.

With regard to citrus concentrates and cold storage plants, it is my recollection that the Paraguayans were told that, although there was a serious shortage of machinery, there would be willingness on our part to fabricate a moderate sized cold storage plant and a small citrus fruit processing plant, but that exact specifications from the Paraguayan Government would be necessary before any production schedules could be worked out. There was no commitment to furnish experts to make the specifications. There is no reason why they cannot themselves get any expert assistance they may need in formulating their specifications.

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With regard to the jute plant, the Paraguayans were told that jutemaking machinery was manufactured exclusively in Leeds and Belfast and not in the United States. There are no American experts in this field, so we could obviously not furnish the services of any such men.

Bacon,49 Bonsal and Collado, who were present at the various conversations with the Paraguayans, are emphatic in their statement that the only commitment for the sending of experts was in regard to the proposed cement plant.

I am just as interested as you in helping the Paraguayans to develop their resources. Let me know if there is anything further that I can do at this end.

I hope to write you in a few days about Lend-Lease assistance for the Paraguayan Navy.

Yours very sincerely,

Laurence Duggan
  1. No. 478, dated August 31, 1943, not printed.
  2. J. Kenly Bacon, Assistant Chief of the Division of the American Republics.