824.6363 St 2/443½

The Bolivian Legation to the Department of State9


Bases for an Agreement Between the Government of Bolivia and the Standard Oil Company of Bolivia

A Commission of three experts, one designated by each party, the third by mutual agreement or by Geological Society of London, will examine only the following questions:
(a) what was the value, in dollars, of the rights and interests of the Company in Bolivia under its concession contract of July 27, 1922, immediately prior to March 13, 1937;
(b) whether the Company owes the Government any amount for taxes and to how much does this amount.
The Parties are in agreement that the Commission shall not discuss nor consider the validity of the concession contract of July 27, 1922, nor of the cancellation decree of March 13, 1937.
The verdict of the Commission shall be established by majority vote and shall be accepted by both Parties as final and binding.
Once there has been made the payment which should take place in accordance with the double evaluation to be undertaken by the Commission, there shall remain no pending issue between the Parties, and there shall be no occasion for the presentation of new claims or counterclaims of whatsoever character, since the fulfilment of the agreement, concluded freely and in good faith, shall be regarded as having terminated satisfactorily and amicably the differences which may exist or have existed between the Government and the Company.
  1. Memorandum received February 23, 1940, from the Bolivian Minister.