Relations faltered somewhat during the administration of President John F. Kennedy , as United States officials began calling for democratic rule and land reform and threatened to withhold Alliance for Progress funds ( an amount equal to about 40 percent of Paraguay 's budget ) .
Paraguay made progress .
Relations faltered somewhat during the administration of President John F. Kennedy , as United States officials began calling for democratic rule and land reform and threatened to withhold Alliance for Progress funds ( an amount equal to about 40 percent of Paraguay 's budget ) unless Paraguay made progress .