824.6363 St 2/495a

The Under Secretary of State (Welles) to the President of the Standard Oil Company of New Jersey (Farish)

My Dear Mr. Farish: I wish to express to you again my appreciation of your courtesy in coming to Washington in order to discuss the Bolivian oil matter. I believe that your willingness to ascertain the point of view of the Bolivian Minister here will advance the possibility of an eventual settlement.

It is my understanding that as the matter now rests, you will give consideration to the designation of an officer of your company to pursue conversations with the Bolivian Minister regarding: (a) the approximate amount which your company would hope to receive as a result of the arbitration proceedings, and (b) the possibility of negotiating a settlement directly between the Bolivian Government and your company rather than through the operation of the formula which was proposed some months ago.

It is my opinion that, in view of the admittedly more favorable attitude of the Bolivian Government in this matter, it would be desirable to maintain and develop as far as possible the contact which has now been established with the Bolivian Minister.

Sincerely yours,

Sumner Welles