824.6363 ST 2/202
The Secretary of State to the Minister in Bolivia (Caldwell)
Sir: The Department refers to your telegrams nos. 70, December 3, 2 p.m., and 71, December 3, 3 p.m., and to its telegraphic instruction in reply thereto regarding the Standard Oil Company of Bolivia.
Since the Bolivian Government is one of the parties to the dispute, the Department is of the opinion that the Bolivian Government could [Page 310] not very well act as a mediatory agency in the case. Nor does it seem advisable to the Department that the Government of the United States, at the present time, should join in any request for the appointment by the President of Argentina or some other American republic of an eminent jurist to pass upon the question of the title to the properties involved. The Department is of the opinion that the company should exhaust all of its remedies in Bolivia, and that every effort should be made to continue conversations between the Bolivian Government and the company, looking toward a possible solution of the present difficulties. The signature of a convention on petroleum between Bolivia and Argentina would appear to give the Government of the latter country a special interest in the case and so make it inadvisable that the President of Argentina should be requested to select a jurist as suggested by you.
If the procedure favored by the Bolivian Minister for Foreign Affairs is followed, namely, that both conversations between the Government and the company and court action upon the case be postponed until after the establishment of a constitutional government following the elections in March, it seems to the Department that no constructive action will be possible for several months. Presumably, also, as soon as a constitutional government is organized and a congress is in session, action will be taken upon ratification of the petroleum convention between Bolivia and Paraguay. It would seem highly desirable that, if possible, friendly conversations between representatives of the Bolivian Government and the company should be resumed as soon as conditions make such conversations possible.
The Department will be glad to have your further comment upon these factors in the case and in the light of whatever decision may be reached by the Junta of Government.
Very truly yours,