810.20 Defense/1152d: Telegram

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

106. The Department on July 17 handed to the Bolivian Minister a draft of basic agreement for the lend-lease program of transferring military matériel to Bolivia. The principal financial provisions are as follows: Bolivia is to receive a total of $8,000,000 of military matériel of which it is expected $2,000,000 will be transferred during the fiscal year ending June 30, 1942. This delivery date is subject to change if broad defense considerations so require.

With respect to repayment, Bolivia is expected to pay $250,000 in each fiscal year until 1947 making a total of $1,500,000 to be repaid prior to June 30, 1947. In consideration of the broad objectives of the program and of certain very general economic concepts, the entire obligation of Bolivia to the United States would be considered discharged by such payments.