611.2431/14
The Secretary of State to the Minister in Bolivia (Norweb)
Sir: The statement has been noted in your despatch No. 40, September 25, 1936,25 that the Foreign Minister of Bolivia has authorized you to say to the United States Government that if this Government were willing, he desires to suggest that the two Governments undertake without delay to explore the possibilities of the trade between Bolivia and the United States, and particularly the possibility of marketing Bolivian tin directly in the United States, so as to determine if sufficient mutual interest exists to justify the negotiation of a trade agreement between the two countries. It has been noted also that it is your understanding that the Bolivian Minister in Washington is being instructed to confirm the conversation between the Foreign Minister and yourself and that the Foreign Minister has stated that if you could obtain an indication that his suggestion for exploratory conversations would be well received in Washington, he was prepared, on being informed of this indication, to reduce his ideas to a formal written proposal.
You are authorized to inform the Minister that the Department will give the most sympathetic consideration to any proposals he may wish to put forward as regards a possible trade agreement, making clear that these, of course, would have to be given consideration in the regular way.
For your information it should be stated that the Department feels that the negotiation of a trade agreement with Bolivia would be a matter of considerable difficulty. As you know, it is necessary to confine concessions made by the United States in trade agreements to products of which the other countries concerned are the chief or reasonably important sources of imports into the United States. A preliminary survey made in the Department on this basis reveals that there are no products on which reductions in duty could be granted to Bolivia, and very few products with respect to which the existing treatment could be bound. It would seem that on only one product could a duty binding be given: Brazil nuts, the former duty on which was reduced by 50 percent in connection with the agreement with Brazil. Free list bindings might possibly be granted on antimony ore (although Mexico supplies approximately ten times more than does Bolivia which is a second or third supplier) and on tin ore.
[Page 272]You are further authorized to say that this Government is always prepared to consider any arrangement compatible with its general commercial policy that might be worked out in regard to tin. However, as you know, despite continued consideration of this matter, nothing concrete has ever been formulated that appears to be of promising character. At the present time, Bolivia presumably is able to sell all the tin it is producing in the world market and securing the world price therefor.
In the event that the Bolivian Minister in Washington calls upon the Department with reference to these matters, he will be informed of the Department’s position as outlined above.
Very truly yours,