824.51/564: Telegram
The Minister in Bolivia (Feely) to the Secretary of State
[Received 6:15 p.m.]
70. In view of increasing difficulty in meeting foreign debt service and critical financial outlook, this Government is planning to invite a commission of interested American bankers to visit Bolivia for the purpose of discussing plans of consolidation of outstanding indebtedness and for recommending other steps toward avoidance of financial collapse, moratorium, etc. Government will suggest that one member of commission to [sic] represent State Department or Commerce Department, and also plans the appointment of Bolivian representatives, probably Martínez Vargas and Carlos Arimayo, to proceed to New York for the same purpose.
Former Minister for Foreign Affairs Elio in an article yesterday’s La Razon recommends the suspension of foreign debt service; and pressure is apparent to reduce gold value of boliviano from 18 pence to 12 pence which, in my opinion, might result in collapse of entire financial structure.
Financial situation grows more critical daily and unless some plan can be evolved to reduce debt service materially a long period of default seems inevitable beginning with heavy payments due in December and January.
Respectfully suggest that bankers should be notified of forthcoming invitation.