740.34112A/60
The Ambassador in Paraguay (Frost) to the Secretary of State
[Received March 29.]
Sir: I have the honor to refer to my despatch No. 1891 of March 11, 194466 entitled “Enforcement of Proclaimed List in Paraguay.” The despatch in question reported that Foreign Minister Argaña was endeavoring to secure actual compliance by governmental organisms with the oral instructions given by President Morínigo early last December against patronizing Listed firms. This policy was to be contingent however upon assurances that all classes of goods could be readily purchased in this market without recourse to the Axis concerns in question.
. . . . . . . . . . . . . .
Most unfortunately, as the Department is now aware, Dr. Argaña felt obliged to resign his position over the week-end, a step in which he appears to have been accompanied by the Ministers of Finance and Education. As this despatch is dictated the Cabinet crisis has not yet been resolved, and it is impossible to foresee who the new Minister of Foreign Affairs will be or when he will be installed.67 In any event he will be less pro-Ally and more under the influence of the military elements here than was Dr. Argaña; so that our prospects for securing action along the lines for which we had hoped seem to have been damaged. It is possible that President Morínigo’s desire to convince us that Dr. Argaña’s successor would be pro-Allied may be utilized to secure action against the Proclaimed List; but this is problematical. The Department will be kept informed.
Respectfully yours,