Foreign Relations of the United States, 1958–1960, Volume V, Microfiche Supplement, American Republics

PA–5. Telegram from the Acting Secretary of State to the Embassy in Paraguay¹

Washington, September 18, 1958, 6:26 p.m.

59. Reference Embassy’s despatch No. 111,² Department desires no effort be spared toward arresting further propagation views expressed by Foreign Minister. Implication that aid on FM’s terms should be granted as reward for willingness stabilize currency and other measures in Paraguay’s own self-interest, or to ease FM’s political difficulties, represents fundamental misunderstanding entire economic development program. Playing east against west, and threat of policy change, are singularly inappropriate as basis for productive and progressive Paraguayan foreign policy. U.S. efforts help Paraguay already generous and FM’s present tactics more likely handicap than encourage further help. Dept will make clear to FM, if opportunity occurs during Washington visit,³ that unjustified insinuations and veiled threats are not repeat not conducive to cooperation toward solution Paraguay’s economic problems. Meanwhile will appreciate cable summarizing your responses to FM on above aspects of his statements⁴.

ACTING

1. Source: Department of State, Central Files, 834.00/9–1858. Confidential. Drafted by Clarence A. Boonstra, Deputy Director of the Office of East Coast Affairs, and Charles C. [illegible in the original], Officer in Charge of Paraguayan Affairs; initialed by Maurice M. Bernbaum, Director of the Office of East Coast Affairs. Repeated for information as telegram [illegible in the original] to New York for Assistant Secretary Rubottom, who was attending the thirteenth regular session of the U.N. General Assembly.
2. The referenced despatch from Asuncion, September 9, 1958, transmitted a memorandum of conversation between Ambassador Ploeser and Paraguayan Foreign Minister [illegible in the original]. In the memorandum of conversation, Ambassador Ploeser stated that [illegible in the original] indicated that Paraguay was dissatisfied with the amount of aid it had thus far received from the United States, and expressed a desire for prompt additional aid amounting to $25 or $30 million. The Ambassador also stated that [illegible in the original] exhibited impatience with the notion that aid should be based on the soundness of the country’s fiscal position, and implied that if the United States was not favorably disposed [illegible in the original] aid, Soviet bloc countries were [illegible in the original] in helping Paraguay. ([illegible in the original])
3. Rubottom met with [illegible in the original] in New York and later reported to Ambassador Ploeser in Paraguay that [illegible in the original] had expressed views similar to [illegible in the original] described in Embassy despatch 111, but that he has not pressed them in any objectionable way. Rubottom also indicated that he made no commitments to [illegible in the original]. (734.5-MSP/9–2658)
4. In telegram 61 from Asuncion, September 19, 1958, [illegible in the original] Albert S. [illegible in the original] responded that the Ambassador had repeatedly pointed out the generosity of the United States aid program in Paraguay and the importance of a sound fiscal policy. (734.5-MSP/8–1958) The Embassy’s further response is printed as Document PA–6.