Memorandum of Conversation, by Mr. Stephen Morris, Assistant to the Liaison Officer

This afternoon I received a call from the Bolivian Minister who was accompanied by Colonel Moscoso. Dr. Guachalla said that Bolivia was anxious to have the amount to be received during the first year increased beyond $2,000,000. He told me that he had mentioned this matter to Mr. Welles, who had told him that the important factor involved was what war materials could be made available; that this matter was more pertinent than the actual sum of money desired.

The Minister stated he now had a list of the armaments desired by his Government, and that he wished to show this list to the appropriate authorities in order to determine (a) whether Bolivia would be able to receive more the first year, and (b) whether Bolivia could get a larger total figure. In the latter connection, he referred to the conversation which the American Minister at La Paz had had with President PeƱaranda, in the course of which the latter had said Bolivia hoped to receive more military equipment under the Lend-Lease program (despatch no. 973, July 30, from La Paz).

I explained to Dr. Guachalla the difficulties involved in granting anything more to Bolivia than had already been communicated; i. e., the problems the War Department is faced with in this connection, such as the demands of Great Britain, Russia, et cetera. I said that I would be glad to arrange an appointment, if possible for tomorrow, for the Minister and Colonel Moscoso with the War Department.

I telephoned the Bolivian Minister that an appointment had been arranged for him tomorrow afternoon at the War Department with Major Johnston of the Defense Aid Division.

In speaking to Major Johnston about this, I was informed that it would probably be impossible to either increase the total amount for Bolivia or the amount to be received by that country during the first year.