834.2614/8–1354
The Acting Assistant Secretary of State for Economic Affairs (Kalijarvi) to the Managing Director of the Export-Import Bank (Edgerton)
Dear General Edgerton: Reference is made to your inquiry of August 10 as to the State Department’s position with regard to the pending application of the Paraguayan Government for an Eximbank credit to assist in financing the Asuncion Water Works Project.
The Department supports consideration of this project by the Bank as indicated by Mr. Corbett1 at the Executive Committee Meeting of July 8. While it is known that the Paraguayan Ambassador is urging immediate action on his Government’s application, the Department is of the opinion that it would be advantageous for United States-Paraguayan relations if the authorization of this credit could follow [Page 1490] shortly after Ambassador Ageton, newly appointed United States Ambassador to Paraguay, arrives at his post. Ambassador Ageton expects to reach Asuncion about September 1.
The Department would not object if for banking reasons the Eximbank wishes to take action immediately on the application, provided that no announcement is made until Ambassador Ageton informs the Paraguayan President of the Bank’s action at the time he presents his credentials.2
Sincerely yours,
- Jack C. Corbett, Director, Office of Financial and Development Policy.↩
- On Sept. 2, 1954, the Export-Import Bank approved in principle a credit of up to $7,200,000 in favor of the Republic of Paraguay to assist in financing the purchase of U.S. services and equipment necessary for the installation of a central water supply system in Asunción. For additional information, see Export-Import Bank of Washington, Nineteenth Semiannual Report to Congress for the Period July–December 1954 (Washington, 1955). pp. 13–14.↩