811.20 Defense (M) Bolivia/415: Telegram
The Acting Secretary of State to the Ambassador in Bolivia (Boal)
710. There is a growing feeling within the Department that the cinchona negotiations with Bolivia are being deliberately prolonged or at the best are being made the subject of a temporizing policy on Bolivia’s part. The receipt of the Embassy’s telegram 831 of September 17, 11 a.m.79 gave rise to the hope that negotiations would be speeded up and that the Bolivian Government would shortly give [Page 556] its reactions to our proposals. The absence of any indication of Bolivian desires, other than those mentioned in the Embassy’s telegram under reference, tends to confirm our impression that the negotiations continue to languish.
The extreme urgency of increasing our quinine supplies has been mentioned from time to time and only the imperative need to develop available sources of cinchona bark in the most efficient manner prompts the Department to refer to it again. The high quinine content of Bolivian bark, the existing extraction facilities in Bolivia, the potentialities of increased extraction efficiency, and the possibilities of expanding bark production through plantations all make the early conclusion of a cinchona agreement with Bolivia an objective of the highest priority. Equally important is the need for steps to assure the use of American cinchona resources for anti-malarial needs only. We believe that the proposals made to Bolivia will attain these objectives while assuring Bolivia over the next 3 years favorable conditions for developing its cinchona and quinine industries.
The Department urges you to consider these cinchona negotiations of the highest importance. If it is not possible to receive from Minister Crespo without delay a more definite expression of the form he would like to see the contract take, please advise the Department immediately. Would it be advisable to withdraw our proposal and request a statement from Minister Crespo of the points which he should like to see covered in an agreement? If it is inadvisable to withdraw the proposal, but the urgency of the matter should be brought to the attention of the Bolivian Government, would it be advisable to call in Ambassador Guachalla and drive home the importance of the matter with him? Even after discounting the effect of the existing political situation, it is still believed that it is reasonable to expect a prompt reply from Minister Crespo and a willingness to negotiate, which would clear up outstanding points without delay.
Your comments are solicited and it is hoped that the Department may receive without delay by telegraph your recommendation for pushing the negotiations through to a successful and speedy conclusion.
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