824.6363 ST 2/119: Telegram
The Minister in Bolivia ( Norweb ) to the Secretary of State
[Received 5:30 p.m.]
26. Referring to page 10 of my despatch No. 173, dated March 18,35 temporary Government administration of Standard Oil Company made permanent by a decree dated April 30 published today. Definitely transferring all “properties, shares and rights” to the YPFB.
This action, taken 3 days after conveying to the Foreign Minister the views expressed in the Department’s telegram No. 10,36 appears to deny that the controversy is a question of conflicting interpretations of contracts. The transfer is based on Bolivian concept that Government has administrative right to unilateral action and to this extent limits possibility of a friendly settlement. It would also indicate that Finot’s professed desire for an equitable adjustment is looking to palliate Government’s actions in view of foreign criticism.