834.154/10–1146: Airgram

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


A–283. In my airgram, A–281, October 10, 1946,39 I summarized reasons for continuing highly successful cooperative projects in Paraguay in fields of Health and Sanitation, Food Supply, and Vocational Educational.

There is one additional American project in Paraguay which does not cost Government of U.S. one cent and involves sending no American Government personnel to Paraguay. That is the Road Building Project which has been carried out by Hebard & Company, an American corporation with funds lent to Paraguay at 4 per cent interest by Export-Import Bank.

Hebard & Company is training Paraguayan engineers, setting new standards for honest work and cooperative relationship with Paraguayan Government, and carrying American prestige and influence into hitherto isolated areas in Paraguay.

The Road Building Project, which is now halted due to failure of Paraguay to obtain additional credit from Export-Import Bank, supplements and increases the utility of the other projects, which have been largely financed with United States Government funds up to now.

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I attach so much importance to this project that I discussed it with the President yesterday. I expressed the opinion that Paraguay could not afford to let the project drop. He said he was of the same opinion and that he had ordered that funds be provided from some source to enable Hebard to continue the work, for the time being at least.

  1. Not printed.