834.24/329

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

No. 679

Sir: I have the honor to report that on the whole the local reaction to the delivery of the first two Lend-Lease shipments3 of arms and [Page 671] equipment to the Paraguayan armed forces has been favorable. Combined with American success in North Africa and Allied military victories on other fronts, the arms shipments have probably constituted a prime factor in an increasingly noticeable shift of opinion in military circles in favor of the United States.

With the exception of a very few officers, military circles under the Morinigo4 regime have not been friendly to the United States, and the powerful cavalry division stationed near the capital has been at times actively, and always passively, hostile. It was therefore in these circles that disappointment may have lurked at the failure of delivering the Lend-Lease arms promised to Paraguay. This delay was pointed to as evidence of the various faults attributed to the United States, and therefore served to keep alive pro-Axis and anti-American sentiments.

Because there were many army and navy officers (in active service) who were convinced that arms were unlikely to arrive from the United States, the actual delivery of the first two shipments had a strong effect. Searching for some means of softening this certain persons began saying, after the news of the contents of the first shipment became known—that the sending of trucks instead of guns revealed the duplicity of the United States. As reported in my despatch No. 618, of December 15, 1942,5 the Argentine Embassy here was alleged to have encouraged the circulation of a rumor to the above effect.

Nevertheless, after the impact of the news of the first shipment, opinion in official and private circles began to reflect satisfaction over the fact itself. When the second shipment was delivered a few weeks later, a definite change in opinion toward the United States materialized in military circles. Even the Cavalry Division Chief began to bestow social and other attentions on this Embassy. Finally, about a week ago, a prominent naval officer (noted for his aversion to definite statements of fact or opinion, especially on international and political matters) made a clear-cut, emphatic statement to Third Secretary Henderson. Its substance was that this naval officer, who declared that he could speak for the leaders of the armed forces, stated that the arrival of two shipments of Lend-Lease material spoke louder than any words or promises, and removed the last vestige of doubt as to our sincerity; that the armed forces were genuinely impressed and even contrite over their former suspicions; that these shipments had done more than anything else to bolster friendship for us; and that he was frankly amazed that the United States had “come through [Page 672] with the goods” in spite of Paraguay’s virtual failure to fulfill its obligations of quid pro quo. 6

Events on world battlefronts have naturally contributed much toward creating a propitious setting for the apparent change in sentiment outlined above. American victories in North Africa and the Pacific, as well as military successes of other United Nations, have finally made Paraguayan Nazi sympathizers realize that the Axis’ winning streak has come to an end, and that the United States in particular has now brought into effective play its tremendous potential might. Hitler’s star has consequently fallen measurably, especially among the military.

The sudden show of cordiality toward the United States may also reflect the intense fear and hatred Paraguayans feel for Communism and which may impel them to magnify the role of the United States in the war in an attempt to overlook Russian victories.

Respectfully yours,

Wesley Frost
  1. For correspondence regarding the Lend-Lease Agreement between the United States and Paraguay, signed September 20, 1941, see Foreign Relations, 1941, vol. vii, pp. 473 ff.
  2. President Higínio Morínigo.
  3. Not printed.
  4. Paraguay’s obligations under the Lend-Lease Agreement were to repay a percentage of the value of the lend-lease goods at the rate of $50,000 annually, to negotiate equitable commodity agreements with the United States, not to transfer title to defense articles, and to protect patent rights in the defense articles of American citizens.