811.20 Defense (M) Bolivia/291f: Telegram

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

455. From Rubber Reserve. Reference rubber agreement.28 Pending establishment of purchasing organization in Bolivia, we are planning to buy at agreement prices from large producers through their customary New York selling agents. Also during this interim it is desirable that you purchase pursuant to the provisions of article 4 of the agreement all miscellaneous lots of rubber which are available. For this purpose we are immediately establishing a fund of $100,000 with the Bank of Bolivia available to the Ambassador or his nominee. In this connection cable Rubber Reserve weekly the total tons purchased with this fund together with the amount of rubber stocks in each location so purchased and not exported. Pending establishment official prices for grades other than those specified in the agreement it is suggested that the following fob ocean ports [Page 581]prices be used: Crude Beni hard fine uncut, 36⅛; Crude Bolivian hard fine cut and classified, 36½; Crude Bolivian Hard Fine uncut, 35½; Crude Beni and Bolivian Medium, 33½; Crude Beni and Bolivian Coarse, 26½; Crude Bolivian Weak Fine cut and classified, 34⅞. Article 9 of the Rubber agreement provides that Rubber Reserve may take over at the contract price any pre-existing contracts for the purchase of Bolivian rubber. You are requested to investigate the possibility of taking over any such contracts and are authorized to take them over if possible. We call to your attention that contracts providing for the exportation of rubber to countries other than the United States cannot be fulfilled if the exportation would be in excess of the 250 ton quota stipulated in paragraph 3 for the calendar year 1942. James C. Roberts, Assistant to the President, Rubber Reserve Company, expected to arrive La Paz about July 21 and will be followed within 2 weeks by additional Rubber Reserve personnel. Mr. Roberts will remain in Bolivia a sufficient length of time to organize Rubber Reserve activities. Upon Roberts’ arrival suggest he be designated Ambassador’s nominee for $100,000 fund. Worth, rubber technician, instructed join Frantz29 promptly as possible. He is now available to leave Porto Velho for Riberalta as soon as he can secure transportation. Suggest use Frantz and Worth for buying if necessary. Have cabled Embassy Lima requesting them to offer Priester30 position as Assistant to the Representative of the Rubber Reserve Company in Bolivia at an annual rate of compensation of $6,000 per year plus living allowance of $7 per day while away from La Paz on official business. Have requested Priester to return La Paz as promptly as possible. [Rubber Reserve.]

  1. Supra.
  2. Bruce Worth and Harvey R. Frantz were field technicians for the Rubber Reserve Company.
  3. J. E. Priester represented the Dutch quinine trust in Bolivia.