834.51/446: Telegram

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

85. For Under Secretary. President sent for me this morning to sound out possibility of loan or aid to build hangars for planes and storehouses for other Lend-Lease material, estimating cost at $185,000, and stressing that inquiry was personal and tentative. I ventured suggestion that such a request might make poor impression at Washington in view of very special Lend-Lease terms7 for this country and in view of fact that economies of 3% in regular Paraguayan budget would yield sum indicated. President said half heartedly that doubtless I was right. Interview was cordial.

Frost
  1. Presumably this refers to the articles under which Paraguay was obligated to repay $300,000 of the $11,000,000 authorized for defense articles for Paraguay.