824.50/49: Telegram
The Chargé in Bolivia (Dawson) to the Secretary of State
[Received 10:07 p.m.]
13. For the Under Secretary.37 My 6, January 5, 2 p.m.38 In conversation today Minister of Foreign Affairs39 made it clear that he is most anxious to bring something concrete back from his meeting with you in Rio de Janeiro40 to counteract criticism that American economic cooperation is a myth.
He stated that what he has in mind on Standard Oil problem is an agreement with you on a lump sum settlement (he indicated $1,000,000 as his idea of a proper amount) and at the same time an agreement for a credit of about $2,500,000 from the Export-Import Bank for oil fields development and roads to petroleum region.
He said that he thought only method of settling Standard Oil question was for it to be done rapidly and presented as a fait accompli to the Bolivian public since any opportunity for debate would bring failure as in prior attempts. There is much to be said for this point.
On the off chance that a formula for settlement of the oil problem can be found, matter of credit for oil fields development etc., might be included in the development of the idea described my No. 5, January 5, 11 a.m.41 by the addition of aid to the petroleum industry as one [Page 587] of its authorized activities. Incidentally our best information is that at least $5,000,000 would be needed for proper development of oil fields as a self-liquidating project and that sum suggested by Anze would be wasteful since it would not accomplish objective.