611.2431/19
The Minister in Bolivia (Norweb) to the Secretary of State
[Received June 18.]
Sir: I have the honor to refer to my despatch No. 245, dated June 10, 1937,26 and to enclose herewith a memorandum entitled “Reciprocal Trade Agreement”,26 prepared by Commercial Attaché Merwin L. Bohan.
Mr. Bohan’s final conclusion is that a reciprocal trade agreement would not result in materially increasing imports from the United States. He points out that Bolivia will never offer a large market for consumers’ goods of American manufacture since the import purchasing power of the Bolivian people is exceedingly limited. Although American investments in mining are overshadowed by both Bolivian and Chilean interests, the employment of American executives and engineers is so widespread that the natural preference for American mining equipment and supplies is greatly enhanced and the United States already controls a very substantial percentage of this business. Bolivian import duties are not excessive and exchange restrictions have not substantially affected American exports to Bolivia, and neither one of these two factors is of sufficient importance to warrant treaty negotiations.
Mr. Bohan then concludes that the keen interest of the Bolivian Government in a reciprocal trade agreement arises primarily from [Page 275] the desire that a smelting industry be established in the United States. Under present conditions practically all Bolivian tin concentrates move to England for smelting, and the man who controls fifty percent of the Bolivian production, Señor Patiño, likewise has heavy interests in the English smelters. On this account, the Bolivian Government is checkmated in dealing with the mining industry and its powers would be substantially increased if the country had more than one outlet for its ores, especially if a smelting industry in the United States were controlled by interests other than those of Simon I. Patiño. He believes that the present balance between the Bolivian Government and the tin industry is much to be preferred to any uncontrolled preponderance on the part of the Government …
Respectfully yours,