824.6363 ST 2/139
The Minister in Bolivia ( Norweb ) to the Secretary of State
[Received June 1.]
Sir: I have the honor to refer to my recent despatches regarding the steps being taken to endeavor to recover the properties of the Standard Oil Company seized by the Bolivian Government.
From conversations with Dr. Carlos Calvo I have gathered that while he is preparing an exposition of the legal aspects of the Company’s position, he realizes that considerations of legality are of doubtful force. However, both he and Mr. C. J. [F. C] Pannill consider that an effort should be made in this direction, the latter believing that should it be possible to force some acknowledgment regarding the justification of the Company’s claims, he may then be able more successfully to follow the instructions which he has received from New York to request, for tactical reasons, that the Company be allowed to resume operations in Bolivia pending a final adjustment of the matter. Actually, the Company wishes to sell out and has no intention of reopening its business in this country.
Mr. Pannill and Dr. Calvo still maintain the belief that it would be injudicious at this point to appeal to the courts and are prepared to recommend a policy of delay should initial negotiations prove unavailing. If it should be found necessary to adopt this policy they believe that it would be advisable for the Company to send an American representative to Bolivia to look after its interests and to take whatever action might be necessary in view of future developments, possibly over a period of years.
It should be remarked, however, that a policy of procrastination may seriously interfere with Bolivia’s negotiations with the Argentine as reports from Buenos Aires indicate that the latter country would prefer to postpone an agreement with Bolivia until the latter has a clear title to the properties.
For the moment the matter rests at this stage pending the completion of Dr. Calvo’s brief and the return of the Foreign Minister from Sucre toward the latter part of the week.
Respectfully yours,