834.156/148: Telegram

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

41. Your 25, November 30, 6 p.m.5 Paraguayan Government inform me of their readiness to negotiate for a new continuation of modus vivendi to overcome difficulties in former concession as follows:

  • Firstly, to limit the contract to the construction of the first section of the port works, article 4 of the concession, together with the corresponding dredging works.
  • Secondly, to pay for the cost of the work by means of Paraguayan Government bonds guaranteed by duties and tariffs to be deposited as established in the law of concession as a security.

In a conversation with the President today he intimated that it would be impossible for any. Paraguayan Government to reinstate the former concession without Congressional consent which he states impossible to consider and can not annul the decree canceling concession by President Franco. A new contract recognizing the work already completed together with suggested modifications would receive his support in presenting and passing through Congress convening in April, which is likely to be the quickest method of obtaining concession.

Dickson
  1. Not printed.