824.6363 St2/249
Mr. E. Holman of
the Standard Oil Company of New Jersey to the Under Secretary of
State (Welles)
New
York, March 31, 1938.
My Dear Mr. Welles: With reference to your
letter of March 18, 19384
and Mr. Palmer’s telephone conversations with Mr. Duggan on March 21,
1938, we may advise that the Standard Oil Company of Bolivia filed suit
before the presently existing Supreme Court of Bolivia at Sucre at two
p.m. March 21, 1938.
On the morning of March 23, 1938 our representative, Mr. H. A. Metzger,
delivered personally to the Minister of Foreign Affairs at his office in
La Paz a letter dated March 22, 1938 written on the letterhead of the
Standard Oil Company of Bolivia, copy of which is attached together with
an English translation. Mr. Metzger was accompanied only by Mr. Franco,
the local manager of the Company. The Minister read the letter in their
presence and his reaction, as reported by Mr. Metzger, seemed to be one
of understanding.
We deeply appreciate your continued active interest in this matter which
has had and is having such a serious bearing on the security of American
investments generally in Latin America.
Respectfully yours,
[Page 325]
[Enclosure—Translation]
The Standard Oil Company of
Bolivia to the Bolivian Minister for Foreign
Affairs (Diez de
Medina)
[La
Paz,] March 22, 1938.
Mr. Minister: Although a matter not
directly connected with the Ministry under your most able direction,
the Standard Oil Company of Bolivia takes the liberty of informing
you that it considers it has a right to make respectful though
formal protest against the denial of international justice resulting
from the following facts brought about by the Supreme Government:
- I.
- Cancelation of the contract between the Supreme Government
and the Company with the subsequent confiscation of the
properties of the latter by Governmental Resolution without
previous judicial process.
- II.
- The unprecedented action of having reduced, also by
Executive order, the period of the statute of limitations,
which in this case was 30 years under the Civil Code and
which could be modified only by the Legislative Power in
accordance with the Constitution in effect, to an arbitrary
term of 90 days, later extended for 60 days—a term of 150
days that expires today.
- III.
- The unconstitutional and irregular organization of the
present Supreme Court, also by a decree of the Executive who
should not intervene in the matter, by which the previous
court constitutionally established was suppressed.
Notwithstanding the three points above mentioned, the Standard Oil
Company of Bolivia, although under protest, is filing suit before
the Supreme Court of Justice in order that it may not be alleged
that the Company has not exhausted all local remedies.
Taking this opportunity [etc.]
Standard Oil Company of
Bolivia
H. A. Metzger
Representative in Bolivia
