740.24112 RP/7–1146

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

No. 1879

Sir: I have the honor to inform the Department of the progress of the replacement program in Paraguay since the submission of Embassy secret despatch no. 1663 of April 26, 1946, …

The newly appointed Minister of Finance,31 who relinquished his position as Paraguayan Minister to Uruguay to accept the appointment, took his oath of office about the end of June. He has since assured the Embassy that the replacement program will have his complete support and that he will do whatever he can to expedite its completion. After the Embassy officer in charge of the replacement program discussed it with the new Minister of Finance he also talked with the Minister of Foreign Relations32 about it. The Minister of [Page 1199] Foreign Relations said that he would consult with the Minister of Finance and, with him, decide what action should be taken toward the reorganization of the Liquidating Commission so that its powers could be broadened to enable it to complete the local replacement program, and what further steps both ministries should take to insure completion of the program. The Embassy is hopeful that this action will be taken in the near future. On July 10, 1946, the Embassy was informed by the Ministry of Foreign Relations that a note from the latter office recommending reorganization of the Liquidating Commission as outlined above would be delivered shortly to the Ministry of Finance.

The replacement program is more advanced than the number of completed liquidations indicate. The registration of those spearhead firms whose liquidation has been ordered but not been completed has been cancelled and it is unlikely that the Paraguayan Government would permit re-registration of companies now in liquidation either in the same names or under control of their former owners or managers. The Department will recall that all of these firms have been closed since their liquidation was ordered. Certain assets of enemy aliens resident in Germany have been declared to the government in accordance with Art. 1 of Decree Law 7867 and, although the government has not expropriated these assets, it is believed that it would not permit transfer of ownership or of the assets themselves. The Paraguayan Government has taken no action in connection with enemy trade marks and patents, but inasmuch as Paraguay is almost completely a distribution area in which there is only a small manufacturing industry, it is apparent that these assets will lose their value as the enemy products which they cover become no longer available.

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

Respectfully yours,

Willard L. Beaulac
  1. Augustin Avila.
  2. Miguel Angel Soler.