811.20 Defense (M) Bolivia/269

The American Ambassador in Bolivia (Boal) to the Bolivian Minister for Foreign Affairs (Anze Matienzo)24

No. 43

Excellency: As Your Excellency is aware, my Government is desirous of fomenting the production of raw rubber in the Western Hemisphere and of acquiring the maximum possible amount of this product in furtherance of the common defense effort. I have the honor consequently, under instructions from my Government, to present the following proposal:

In order to stimulate the development of the crude rubber resources of Bolivia, the Rubber Reserve Company, an agency of my Government established as a corporation under the laws of the United States, would set up a fund of $2,125,000 to be available for the purpose of increasing the wild rubber production in Bolivia, including the improvement of river and land communications in the rubber-producing regions. Control over and direction of expenditure of this fund would be exercised in agreement with the Government of Bolivia by the Rubber Reserve Company which would furnish special technicians for the purpose of utilizing the fund in the most efficient manner practicable to the end of fomenting and facilitating production of wild rubber in Bolivia.
The Government of the United States and the Government of Bolivia would collaborate fully for the purpose of increasing the output of Bolivian crude rubber. The Government of the United States would arrange to furnish technicians to aid in the development of the production of smoked sheet rubber and also would use its best efforts to make possible the acquisition by producers in Bolivia of the necessary equipment for such production as soon as practicable.
The Government of Bolivia would agree to allow only the Rubber Reserve Company or persons or organizations named by it to export rubber from Bolivia, except as otherwise provided in the agreement between them mentioned below, and to encourage the highest possible production of rubber and the export to the United States of the largest amount possible.
The Government of the United States would meet the needs of Bolivia in manufactured rubber articles within the limits of equitable cooperation permitted by the present situation and the Government of Bolivia would limit the consumption of crude rubber and the use of rubber products to the extent necessary to permit the maximum contribution to the defense of the Hemisphere.
The Rubber Reserve Company would enter into an agreement for the purchase of all rubber produced in Bolivia until December 31, 1946, excluding exceptions made in the agreement. The prices stipulated in the agreement would be based on present costs of production and would be reconsidered on the basis of equity if there were any general revision of rubber prices in similar agreements of the Rubber Reserve Company with other countries.
In furtherance of Resolution XXX adopted at the Rio de Janeiro Consultative Meeting of Foreign Ministers,25 the Government of the United States would extend to development work in the valleys of the Amazonian tributaries of Bolivia and adjacent regions the good offices of the Health and Sanitation Division established by the Office of the Coordinator of Inter-American Affairs to carry out a program of improving health and sanitation conditions in cooperation with governmental agencies of the other American Republics.

The foregoing proposals would appear to further substantially the effectiveness of Resolution II of the Rio de Janeiro Consultative Meeting wherein each of the signatory powers undertook to collaborate with the other American Republics to the fullest degree possible in the mobilization of its economic resources with the special objective of increasing the production of those strategic materials essential for the defense of the Hemisphere against armed aggression and for the maintenance of the economics of the American Republics.

I am authorized by my Government to reiterate to Your Excellency its earnest desire to assist Bolivia in obtaining such manufactured products, foodstuffs and raw products as are essential for the maintenance of the national economy of Bolivia and its readiness to take such steps toward this end as may be consistent with its war effort if a serious impairment of Bolivia’s present sources of such supplies should occur.

On behalf of the Government of the United States and in accordance with the conversations which I have had with officials of the Government of Bolivia, I have the honor to request that the Government of Bolivia give consideration to the above proposals.

I avail myself [etc.]

[File copy not signed]
  1. Copy transmitted to the Department by the Ambassador in his despatch No. 310, July 17; received July 22.
  2. For correspondence concerning this meeting, held January 15–28, 1942, see pp. 6 ff.; for text of the Final Act of the Conference, see Department of State Bulletin, February 7, 1942, p. 117.