740.34112 A/3–1246

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

No. 1524

Subject: Progress Toward Accomplishment of Proclaimed List Objectives.

Sir: I have the honor to submit the following report on the progress of the replacement program in Paraguay since January 1, 1946. …

. . . . . . . . . . . . . .

Later, on February 13, 1946, the Chargé d’Affaires a.i. and this Embassy’s officer in charge of the replacement program26 called on the Foreign Minister, at his request, to review the status of the program. The Director of the Office of Economic and Commercial Affairs of the Ministry, who was present at the meeting, summarized progress that had been made in the program undertaken by Paraguay, told the Minister that no advance in it had been made for several months, and described the impasse that had developed between the Ministry of Finance and the Banco del Paraguay. The Embassy’s representative furnished more detailed information at the Minister’s request, elaborating on the following points (because the Ministry of Foreign Relations has very little part in the execution of the program it is invariably the case that the Embassy is better posted on it than that office):

Liquidation of certain Axis firms in accordance with the decree issued in September, 1945 had not been carried out,
Axis employees had not yet been separated from these houses and that their salaries had not been adjusted as required by current legislation,
The Banco del Paraguay and the Ministry of Finance had not yet agreed on a plan for the liquidation of those firms,
The action of the Banco del Paraguay in allowing Bayer products to be placed on free sale on the grounds that they were only consignments to, and not the property of, Staudt y Cia. whose liquidation had been ordered. (See this Embassy’s restricted despatch no. 1518 of March 11, 1946 “Attempts to Remove Axis Drugs and Pharmaceuticals from Paraguayan Market.”),
The status of other enemy assets in which no action has been taken (S.I.P.A.G.,27 La Colmena, etc.),
The enemy trademark situation,
The failure to take action on local assets of enemy nationals or entities resident outside of Paraguay, and
The reluctance of any person or entity to accept responsibility for the completion of the program.

. . . . . . . . . . . . . .

Respectfully yours,

Willard L. Beaulac
  1. Frederick J. Cunningham.
  2. Sociedad Industrial para Articulos General, S.A.