103.9169 Asunción: Telegram
The Chargé in Paraguay (Reed) to the Secretary of State
[Received 10:30 p.m.]
336. For Crowley and Dodson FEA. Reference Department’s telegram No. 176 June 8, 5 p.m. regarding decentralization rollback. Country Agency approves proposal No. 1 and will issue import recommendations only in exceptional cases where preference is desired.
Country Agency still dubious of equitable distribution control and requests that FEA grant licenses for shipments to Paraguay only when applications are accompanied by Paraguayan import permits. [Page 1460] These are documents issued by the Bank of the Republic under the exchange control law No. 5017 of February 10, 1941, as approval for the granting of foreign exchange for the transaction covered. See despatch No. 1429 February 15, 1941.16 This system has been used since February 1941 and represents no additional recent control nor should requirement of document unduly complicate FEA procedure. Any shipments not covered by these import permits are liable to rejection at the customshouse here and it is very probable that merchandise involved would be diverted to Argentina where it would be welcome.
Embassy would appreciate telegraphic confirmation in order that announcement of decentralization rollback and requirements of presentation of import permit to FEA may be made simultaneously so that importers here will be promptly informed of new requirement and any lag in presentation of import documents at FEA be reduced. Date of rollback announcement not yet received.
- Not printed; attached to this despatch is a copy of Decree-Law No. 5017 of February 10, 1941, which established the Departamento de Control de Cambios and conferred monopolistic powers upon it in matters of exchange (834.5151/150).↩