834.24/637

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

No. 1471

Sir: I have the honor to refer to the Department’s memorandum no. 1060 of October 14, 1943, with regard to the sending of experts from the United States to investigate or formulate plans for new Paraguayan industries.

The presence in Asunción of the cement experts and the citrus concentrate experts sent at the Department’s instance has created a favorable impression; and the Paraguayan Government has for some months past been cooperating continually with the American experts in the Coordinator’s53 agricultural project, known as the Servicio Técnico Interamericano Cooperativo de Agricultura, with regard to projects for refrigeration, jute and ramie, and milk production.

It may be worth mentioning that the hope of the government that special experts be sent has arisen from two considerations which it regards as practical in type, (a) The creation or expansion of industry in Paraguay must largely depend upon the sales prospects for its products in the world market, and the Paraguayan Government feels that it would be unable to ascertain such prospects without the help of the American Government (partly because of the war and post-war economic controls), (b) It is felt that the formulation of plans would be inadvisable as to any industry unless the American Government, and especially the Export-Import Bank, would be likely to take an interest in such plans when once formulated; and with this in mind the presence of officially-sent experts to participate in the preliminary studies and the elaboration of such studies would be considered to be especially helpful. However, as above indicated, there seems to remain no further expectation of receiving such assistance.

Respectfully yours,

Wesley Frost
  1. Coordinator of Inter-American Affairs.