824.6363 St 2/304: Telegram
The Minister in Bolivia ( Caldwell ) to the Secretary of State
[Received 3:01 p.m.]
6. Supplementing my telegram No. 5, February 2, 9 a.m. On account of difficulties in working out details of formula suggested by [Page 325] Guachalla, in my judgment only practicable solution which would carry genuine moral value would be friendly arbitration in the interests of both parties including all points at issue, (1) legality of degree of March 13, 1937; (2) extensive claims of Bolivia for unpaid taxes and for alleged violations of contract, and, in the event of a favorable decision on point 1; (3) compensation to the company for fair value of the property but specifically excluding actual return of the property which is apparently desired by neither party.
The Bolivian Government would probably object to such a plan at the outset but might be persuaded eventually as to its genuine fairness.