740.34112A/8–2144: Telegram
The Chargé in Paraguay (Reed) to the Secretary of State
[Received 10:29 p.m.]
474. Following proposal regarding Colegio Alemán was communicated verbally this morning to member of Embassy staff by Under Secretary of Foreign Relations.
If Department will withhold listing discussed in Embassy’s airgram 285, August 6, Paraguayan Government will remove and relegate to restricted area Oscar Ketterer its present director and leading Nazi official now active here replacing him with acceptable Paraguayan. They will also appoint Paraguayan to handle school finances. Government promises further action in eliminating other objectionable elements when school year ends November 15. They do not wish to take this action now for fear elements controlling school will close it in which case Paraguayan Government would have no immediately available facilities to care for students.
In view importance of confining Ketterer plus fact that we have delayed 2 years in listing school, Embassy feels Paraguayan proposal satisfactory and urgently recommends telegraphic authorization to accept. Above action by Paraguay it is promised will immediately confirm our agreement.