834.51/4–1945: Telegram

The Acting Secretary of State to the Ambassador in Paraguay (Beaulac)

175. With reference to the Embassy’s Despatch No. 580, of February 22, 1945,49 and the Embassy’s Despatch No. 728, of April 19, 1945, a request for the allocation of the remaining $450,000 balance of Eximbank credit was presented directly to the Eximbank by the Paraguayan Ambassador. The Eximbank informs the Department that the following reply was made to the Paraguayan Embassy:

“As a prerequisite to any further allocations under the credit past due payments must be cleared up. If proper technical supervision is assured and credit is serviced and administered by appropriate Paraguayan Government Credit Body, Eximbank will allocate unused [Page 1303] portion of credit for purchases of agricultural equipment, river transportation, or any other sound program requiring dollar expenditures. Eximbank will not entertain requests involving expenditures in local currency.”

  1. Not printed.