824.6363 ST 2/70: Telegram
The Minister in Bolivia ( Norweb ) to the Secretary of State
[Received 11:58 p.m.]
11. Early this evening the offices of the Standard Oil Company were closed and sealed by authority of a resolution of March 13th signed by the entire Junta of Government. I have not yet seen the resolution which is being cabled to New York office but have been informed by the local manager that the order confiscates the entire property of the company and transfers it to the state. The action is based on a claim that the company illegally exported a quantity of petroleum to the Argentine Republic during 1926–1927. The company contends this claim is outlawed by statute. Company’s contract contains Calvo clause30 and lawyers have advised that its only recourse is to bring an action in the Supreme Court. Thus far the operations of the subsidiary Southern Radio Corporation have not directly been affected.
Although I have seen the Foreign Minister frequently he has given no intimation that the Government contemplated this action. I intend to call on him tomorrow to endeavor to effect some friendly initial arrangement so that company’s urgent business can be transacted.
Background fully covered in recent despatches and action probably related to the Government’s petroleum negotiations with Argentine and Brazil.
Has Department any instructions.
- Green H. Hackworth, Digest of International Law, vol. v, p. 635.↩