Memorandum of Conversation, by Mr. S. D. Dillingham of the Division of River Plate Affairs

Participants: Dr. Acosta, Paraguayan Chargé d’Affaires a.i.
A–Br—Mr. Braden
RPA—Mr. Dillingham

Dr. Cesar E. Acosta, Chargé d’Affaires of Paraguay, called by appointment on Mr. Braden at 12 noon, the undersigned being present during the conversation.

Primarily Dr. Acosta wanted to know the status of the Paraguayan application for an additional million dollar credit from Ex-Im Bank for highway construction since, in view of the long delay in reaching any decision, he feared that the Bank would turn it down. The present policy of the Bank was explained to him, namely an effort to reorientate its activities along the original concept of granting credits only for purchases in the US or for the stimulation of trade that would develop foreign exchange with which the credits might be repaid, the recent two millions granted to Czechoslovakia to purchase tobacco in the US for the rehabilitation of the local tobacco industry being cited as an example. Mr. Braden pointed out that the Bank had been reorganized and that the present directors were strictly adhering to this policy. Mr. Braden declared that the Department had supported Paraguay’s application, but suggested that Acosta might talk to the Bank about it and try to explain Paraguay’s needs therefor.

(In a pre-appointment chat with the undersigned Acosta had mentioned he was under the impression other LA countries had obtained favorable consideration of credit applications and wondered if we had “lost faith in Paraguay”).

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