811.20 Defense (M) Bolivia/535: Telegram

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

1061. The Senate today passed a resolution formulated by the Finance Company and the Constitutional Committee to the effect that as the Rubber Agreement is in accordance with the wishes of rubber producers it need not have congressional sanction and also emitting [Page 586]the opinion that the operations of the Banco Agrícola are administrative and do not need legal approval. “Our private agreement with the Banco Agrícola is on file with Rubber Reserve”.

The resolution which the Senate passed and sent forward to the President seemed to imply that the Government should call in the rubber producers and have them sign the approval of the agreement and the Government is preparing to do this as soon as possible. Rubber Reserve representative here is arranging to bring producers to La Paz for this purpose by plane.