824.6363 St2/236: Telegram

The Minister in Bolivia (Caldwell) to the Secretary of State

7. Confidentially informed through the Foreign Office that detailed reports by Guachalla as to his recent conversations in Washington on Standard Oil problem were read to the Cabinet at last meeting and made profound impression. Foreign Minister favors settlement but attitude of Government still doubtful.

Lawyers of the company are now convinced that presentation of case to court would definitely close path to any solution. They advised company yesterday to refuse to go to court on the ground of unconstitutionality of the court and of the decree of October 22nd.