834.51/9–746: Telegram
The Ambassador in Paraguay (Beaulac) to the Secretary of State
[Received 2:40 p.m.]
404. Recommend million dollar credit requested by Paraguay be granted for following reasons: 1. Continuation of highway to Encarnacion necessary to economic use of highway already built with Eximbank funds. 2. Paraguay’s ability to repay undoubted. 3. Embassy’s analysis shows current economic prospects in Paraguay very good (see for example Commercial Attaché reports 98, April 12, 162, August 3, 168, August 13 and 174, September 4.38 4. Service of old loan is budgeted and service of new loan will be also. 5. Government has arranged for service on present loan and new loan to be carried out automatically by bank of Paraguay. 6. Government now taking adequate steps to insure conservation of all highways.
In order that most economic use can be made of funds, I urge credit be approved promptly.
- None printed.↩