834.911/47
The Chargé in Paraguay (Montgomery) to the Secretary of State
Sir: I have the honor to request the Department’s advice as to the procedure the Proclaimed List section of the Embassy should follow and the attitude it should adopt toward the local press in view of its acceptance of advertisements for Proclaimed List firms.
The Department is aware of the fact that some time ago the local press was at best neutral in its policy toward the Axis but that there has been a decided change in its outlook, particularly during the last [Page 678] year. The Embassy’s efforts in this direction have been eminently successful; although at times more positive cooperation could be asked for the situation on the whole is gratifying. (See Embassy Strictly Confidential Despatch 1160 of July 8, 1943,23 “Report on the Daily Press in Asunción. Marked Change in the Attitude of El Paraguayo Recently”, in connection with the editorial policy of the local press).
With the exception of one, El Pais, all of the local newspapers, however, have consistently carried advertisements for Proclaimed List firms. The Proclaimed List section of the Embassy has not taken any steps to discourage or prevent the local newspapers from accepting such advertisements. The Embassy’s attitude has been adhered to partly because of the difficult local political situation, partly because there has been the belief that the local newspapers, never financially strong, could not survive the loss of income from those advertisements, and also because it has been felt that any attempt to induce individual newspapers to refuse to accept such advertising would adversely affect the favorable publicity they now give us.
It must be admitted, too, that many of the leading advertisers in the local newspapers, despite the fact that they are included in the Proclaimed List, are among the most important firms in the country, are locally considered as purely Paraguayan, and can hardly be replaced by existing local companies. It is the opinion of the Embassy that inclusion in the Proclaimed List has very definitely diminished their income but has not substantially harmed their leading position, much less started them on the road to financial collapse.
During the past two weeks Ferretería Universal S. A., included in the Proclaimed List since its publication, has occupied its newly completed quarters. Its retail showrooms are without doubt the most modern and luxurious in Asunción. From the stock on display it is apparent that the company has been able to maintain its sources of supply despite our best efforts to cut them off. Each of the four daily newspapers, including the official organ of the National Department of Press and Propaganda, El Paraguayo, carried large ads publicizing the occupation of the new quarters. It was rather disappointing, however, when El Paraguayo, the official organ of the National Department of Press and Propaganda, gave the company more than a full page write-up on its new quarters. A copy of that issue of the newspaper is enclosed herewith. (See Page 2 of El Paraguayo of June 27, 1943). The Department’s attention is particularly invited to marked portions of the article. The Embassy submits this article in El Paraguayo as the most outstanding and admittedly the most extreme example of the fact that the local press not only ignores the Proclaimed List—it must be kept in mind that the Paraguayan Government [Page 679] has not recognized the Proclaimed List—but also is willing to give its active support to local business houses despite the fact that they may be included in that list.
There are several other aspects to the local situation. In most countries the Embassy believes that it has been possible to convince local newspapers that it would be in their best interests not to carry the advertisements of Proclaimed List firms by letting them understand that if such advertisements were carried it might be that American firms or advertisements of American products would not be offered them. Unfortunately this argument would not be effective in Paraguay inasmuch as only one American firm, the International Products Corporation, and four English firms, (Liebig’s Extract of Meat Co., Ltd., Ferrocarril Central del Paraguay, Banco de Londres y América del Sud, and Haywood Hermanos) operate in Paraguay. These firms do not carry the amount of advertising that is carried by the Proclaimed List advertisers here. The Embassy is reluctant to bring up the question of restriction of newsprint and other supplies for the local press inasmuch as this could too easily be used by individual newspapers as an indication that the American Embassy might be attempting to interfere with the freedom of the press. Actually, the press is under rigid control of the National Department of Press and Propaganda and everything published locally must have the approval of that department. It would be possible to discuss the situation with the National Department of Press and Propaganda but the Embassy cannot help but feel that inasmuch as the Paraguayan Government has not recognized the Proclaimed List, Press and Propaganda could hardly undertake the suppression of Proclaimed List advertisements. It is doubtful that it would be advisable even to suggest to Press and Propaganda that the continuation of these ads might have an effect on the availability of newsprint from the United States: that department could easily take the stand that cutting off supplies for such activities was in effect an attempt to control the press, or alternatively could easily act as importer for those newspapers which the Embassy might decide to be undesirable.
It is the feeling of the Commercial Section of the Embassy that steps should be taken to prevail upon the local press to revise its attitude and cooperate with us on Proclaimed List matters, but before embarking upon such a policy it is requested that the Department consider the matter and express its opinion.
There is to be considered also the extent to which a strong stand on this matter might affect our at present cordial relations with all Paraguayan newspapers, whom we are gradually but surely converting into extremely helpful pro-Ally media the nature of whose support at [Page 680] present considerably offsets the adverse effect of Proclaimed List advertising.
It is hoped that an early reply to this despatch will be received.
Respectfully yours,
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