811.20 Defense (M) Bolivia/203: Telegram

The Ambassador in Bolivia (Boal) to the Secretary of State

449. My telegram No. 415, June 11, 11 a.m.13 and my telephone call to Finletter15 this morning. The Foreign Minister prior to leaving La Paz today informed me that he had just received a communication from the Bolivian Embassy at Buenos Aires transmitting a written proposal by the Argentine Government for an agreement to buy all of Bolivia’s rubber production. The proposal he said is for a term of 5 years. Price according to Minister of Economy is specified by the Argentine Government at 39 cents for crude classified at present, f.o.b. Villa Murtinho as compared with our price of 36¾ cents f.o.b. Belém. Cost of transportation from Villa Murtinho to Belém is about 7 cents.

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He said that in paragraph No. 4 of the Argentine proposal the Argentine Government stated that it would be part of the agreement that it would use its best efforts to maintain the present flow of sugar, wheat, rice, meat, manufactured products, and hunting weapons to Bolivia and to prevent any obstruction from arising in their delivery.

The Foreign Minister stated that the latter paragraph was considered as a veiled threat that a stoppage of these necessities might occur if the Argentine offer were disregarded. He said, however, that he would instruct the Bolivian Embassy in Buenos Aires to advise the Argentine Foreign Office that an agreement on rubber had already been reached in principle with the United States.

Repeated to Buenos Aires.

  1. Not printed; this telegram indicated delays in concluding a rubber agreement.
  2. Thomas K. Finletter, Acting Chief, Division of Defense Materials.