740.34112A/8–2144

The Chargé in Paraguay (Reed) to the Secretary of State

No. 2371

Sir: I have the honor to confirm my telegram No. 471, 9 a.m. of today’s date79 reporting the signature by the President of a decree prohibiting purchases by Government offices or institutions from firms on the Proclaimed List, when the desired goods can be obtained elsewhere under equal conditions. A copy and translation of the decree referred to is transmitted herewith.79

As the Department is aware, this Embassy has been endeavoring for some months to secure the issuance by the Paraguayan Government of a decree of this nature. Oral instructions, apparently along these lines, were issued by the President to members of the cabinet some months ago, but the issuance of an official decree was delayed. As the oral instructions were not effective in stopping official patronage of Proclaimed List firms, this Embassy renewed its representations, pointing out the incompatibility of the Government’s public statements of support of the Allied cause, with continued purchases by Government departments and institutions from firms on the Proclaimed List. About two weeks ago, the Under Secretary of State informed me that he had drafted a decree on this subject, the Minister, Dr. Chiriani, mentioned it a little later, and it has now been signed by the President, as of August 18.

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The issuance of the decree has received publicity in the two leading morning papers, El Paraguayo and La Tribuna, as well as in the afternoon paper, El País. Cuttings from all three papers are transmitted herewith.

Respectfully yours,

Leslie E. Reed
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