824.6354/282: Telegram

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

35. Your despatch No. 305, August 2. The Bolivian Minister has informed the Department that the British Treasury has refused authorization to convert 320,000 pounds sterling arising from sales of Bolivian tin ores into dollars. The British Treasury is reported to be [Page 536] disposed to convert into gold in Canada 50 per cent of the value of Bolivian tin exports in accord with paragraph 15 of a telegram from the Bank of England to the British Legation at La Paz. It is also reported that the conversion of the 320,000 pounds sterling already mentioned is subject to special negotiations depending upon the Bolivian Government facilitating the conclusion of negotiations in La Paz regarding tin deliveries.

Please report briefly by telegram and fully by mail any information available on these points and keep the Department informed regarding British-Bolivian negotiations with respect to tin supplies and exchange treatment.