Ls policy toward the country, as they were dsewhere. The Paragusyan mist ‘wus also infenced by New Deal values, particularly the wilngness of US al to lear fromm, and purtaee with, Lain American policymakers who pionessng new development oriented financial polices at this ine, AS we ha ee, the mart significant ofthese policymakers was Rat Prebisc, with whos "Telfin worked closely in Paraguay ‘The Emergence of the Mission “The Federal Reserve Boar's participation inthe Coban mission represent frst extensive invalvement in Latin American financial advicory work Tebeca tha been with centr left reformers? He came to the United States in 1995 sty at Harvard receiving hisPhD. in 1938 working with Schumpeter, Let tnd Chamberlin (and he spent a summer atthe University of Chicago were bl ‘was tured of by the free-market Chicago School).* After returning bri Belgium, he took «three-year teaching appointment at Harvard between I ‘and 1949, In some ways, efi wae an wail hire for dhe Federal Reserve rl is PhD. thesis (which, ike White's had won the prestigious Well: Prize for be thesis) was very theoretical, examining monopolistic competition and gener tins were impressive, as were his Spans language sls. “The Fed's Water Gardner played the mzjor role in training Tiffin’ As Ihave seen, Gardner had been deeply involed with the TAB initiative and ‘Cuban mission, and he was a member of Wait’ technical committee ing the Bretton Woods plans. He had also urged the Federal Reserve Board assume a lead roe in US financial missions to Latin America as far back as. 1999, Gardne found avery sympathetic colleague in iin. Ina memo just one month after hig hiving, Tiffin mad: ear that he supported the > hime {fino Gado aps 2,145, 4852.post pio Thin arg tht this progam wold ede Latin Ane «Be conte dependence on commadiry export andalo prove new natkets {Gus exporters of opal equipment aft the wa eee the Federal Reserve Bond didnot ave acs tgp information Antica nancaland monetary ies Tin medial sett woken ping snajorstof neath sts het would nme stieson money banking tes foreach tin American county 5 wel ales ofthe sr bank eperstions and monary sd banking lesion. The goa was n central bank, coald be published ina singe volume tied “Central, aking and Money Marketsin Latin America,” Garder note that the informa- Keno long wan and wil ge he Board intite Sota in jp Amerie anda influence on central banking plilosophyin that area which . Fe ee eta sono Hon ht i en age by Ws. a ton Reig See ee eee able for any successful attack on the problem of Honduran progress and evelopment”? The Hondoran governmert had asked White for help [| is tabling a central bank Like Cl, the county hed 0 cena benk at J the ime and US currency was often used thee, pariculy on the north coast central bank, the mision alo recommended the creation ofa credit department tohulp addres the shortage of agricultural eit tha: placed farmers in ifs sors atthe mercy ofthe loa merchants who sem o expat she station tothe ful” 5. Tein,“ onen nest rogram for ati Anse Sep 25,182, 1a 2 Gales Godemens ay 90cp Sb ah forthe boas oe pd fo mn ia sn Lt een Fl Mn 5 1,1 bo 1. hint Senne 1 14, 3, OT, & Sefer eampvie 5. ino Smeal ie 1198p 1. Fore mos romain ula Wore led bale Knapp openers 19,1 one‘Years later ili gested tat the powerful United Fruit Company hed bec} tne force working against them. Bot as we wl se below, be lo fet hat th tnisions lack of success elected the way that White had approached the Guran government By this time, Tiffin had aeady found an opporeuity ‘hing different in another country: Paragy. Cultivating the Paraguayan Request {As far back a 1938, oficial in Paraguay hid sought US eet and tc experts to help achieve thee goal of sabiizing the Paraguayan currency.” ‘Sate Department had strongly supported the idea because ofthe county’ ‘egiclocaton inthe region and out of fear the: the Nos were culating among the large German population in the country. The ist Nii group ‘cas had been established in Pcoguay in 1925 andthe US ambassador esti {in 1941 that there were just twenty US citizens compared fo twenty-six tho Germans lvingn the country. American fears about is influence only sified when teports surfaced in 1939 thatthe Paraguayan goverment was nego sng a major economic deal wth Germany and Bolivia, invaving the builéng ‘sn olleineryin Paraguay to transport Bolivian ol to Buenos Aires for to Farope.” Quickly thereafter, the United States approved an Export Imp ‘Bank loan tothe country for public works and to help stabilize the peso. the insistence ofthe Export-Import Bank, Paragasy’s state bank—te Banco 1a Repablica del Paragoay-ired Bric Lam, who had been a statistician [FRBNY and had Latin American experienceto serve os financial adviser the period ofthe oan: ‘During Lamb’ time, Paraguayan politics underwent a major transform “The Liberal Party, which had dominated the country since the late nine century, fced growing challenges to is ru inthe late 1930s from groups favored greater stat interveationin the economy to bolster te nation's power independence from foreign domination. Afr several changes of gover 1 iia aos. 12 Beedman 3005, 2 Fest to Hal, Apel 7, 144, WER More genera, ser Grow 1961} "3, Selo empl. Mes Me Kee Ast 19995 bo 1 1: Geo ty US See Depa 17. 7-2 15 tne tngane i708 SteDegeemen 17,78, 16, Gwe a3)