811.20 Defense (M) Bolivia/307: Telegram

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

532. Your 618, August 8.31 At a meeting today with Ambassador Guachalla and Minister Crespo, it was indicated that it was the view [Page 583]of this Government that the terms of the Rubber Agreement were clear with respect to exports after the date of its signature and that all that remained to be done was to implement the agreement. It was pointed out that the agreement contemplated that exports could be made thereafter only to United States, with the exception of not exceeding 250 tons annually. It was also pointed out that the agreement specifically provided that Rubber Reserve is entitled to take over existing contracts and, subject to approval of Roberts, Rubber Reserve desires to take over such contracts. The Ambassador and the Minister were told that the situation was regarded as very serious and the matter was presented to them in such a way as to leave no doubt as to the possible effect on other pending negotiations of failure to reach a satisfactory result.

Minister Crespo advised that he would immediately cable his Government asking that the contract be implemented in accordance with its terms. It is suggested that you take similar action. In this connection, it would be agreeable to this Government to have 250 tons calculated on the basis of a fiscal year, beginning with the date of the agreement, instead of on a calendar year basis.

  1. Not printed.