824.6363 St 2/502

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

No. 506

Sir: In connection with previous correspondence regarding the seizure of the property of the Standard Oil Company in Bolivia, I have the honor to report that while I was at the Foreign Office yesterday, Dr. Ostria Gutiérrez, Minister of Foreign Affairs, told me … that the Cabinet had just voted to ask Parliament to authorize the administration to open negotiations with the Standard Oil Company for the purpose of settling this case. However, it would [Page 520] be provided, Dr. Ostria Gutiérrez said, that, as mentioned in a previous despatch, the following three points would not be considered: (1) Bolivia would not consent to arbitration; (2) the return of the property would not be discussed and (3) there could be no reversal of the Supreme Court’s decision.

The Department will recall that the Bolivian Government has made it evident for some time that these three points would be excluded in connection with any possible settlement, although I must confess such an exclusion would seem to leave a rather narrow basis for negotiations. In reply to a question from me, Dr. Ostria Gutiérrez said that the Cabinet would undoubtedly put the matter before the Congress in the near future and would urge that negotiations be authorized without delay.…

Although it is impossible to feel any encouragement as to a possible settlement of this case, the Department will immediately be informed should there be any further developments.

Respectfully yours,

Douglas Jenkins