740.34112 RP/10–2546

The Chargé in Paraguay (Reed) to the Secretary of State

No. 2222

Sir: I have the honor to report that by decree law no. 16, 142 dated October 23, 1946, most of the functions carried on by the Bank of Paraguay under decree law 7867 of March 23, 1945, in connection with enemy property were transferred to the Ministry of Finance. As an exception, the central bank’s activities in connection with liquidation of the former Banco Germánico de la América del Sur will continue under the control of the bank. The same decree transfers administration [Page 1200] of the Compañia Intemacional de Télefonos from the bank to the Ministry of Public Works and Communications.

Since creation of the Advisory Committee on Enemy Property (unrestricted despatch no. 2017 dated August 21, 1946: “Transmitting text of decree no. 14,953 creating an Advisory Committee on Enemy Property”33) operations in connection with the replacement program already had been removed from the control of the liquidating commission, whose powers were not clearly defined with the result that for some months there was little action toward carrying out the Paraguayan government’s program for liquidating enemy properties. Abolition of the liquidating commission and the creation of the Advisory Committee on Enemy Property was the principal step in overcoming this difficulty. The present decree serves to strengthen the authority of the Ministry of Finance in carrying out the recommendations of the Advisory Committee.

Administration of the Campañia Intemacional de Télefonos by the Ministry of Public Works and Communications will consolidate control over all Paraguayan communications under a single government agency.

Respectfully yours,

Leslie E. Reed
  1. Not printed.