Foreign Relations of the United States: Diplomatic Papers, 1942, The American Republics, Volume V

La Paz Embassy Files, 851A

The Under Secretary of State (Welles)⁶¹ to the Bolivian Minister for Foreign Affairs (Anze Matienzo)

Rio de Janeiro, January 27, 1942.

My Dear Mr. Anze Matienzo: I have the pleasure of enclosing a Memorandum Agreement and a Memorandum, both dated January 27, 1942, relating to the formation of a corporation to carry out a program of economic cooperation between the United States and Bolivia and the extension of credits to that corporation by the Export-Import Bank of Washington.

I feel sure that the steps which we have taken in Rio de Janeiro, important as these are, represent but the prelude to a long-term and mutually beneficial program of economic cooperation between our countries.

Believe me

Yours very sincerely,

Sumner Welles

[Enclosure 1]

Memorandum

The attached Memorandum Agreement on credits to be furnished for agricultural, mining and other industries and for transportation, is made with the understanding that the present commitment of the Export-Import Bank of Washington is limited to a maximum initial amount of ten million dollars, United States currency.

It is also understood that, in connection with the statutes and bylaws of the corporation, mentioned in paragraph four, one-half of the membership of the Board of Directors will be appointed by the Government of Bolivia from a list submitted by the Export-Import Bank of Washington. It is further understood that the president of the corporation is to be a Bolivian and the general manager, appointed by the Board in agreement with the Export-Import Bank, a citizen of the United States of America.

Rio de Janeiro, January 27, 1942.

[Enclosure 2]

Memorandum Agreement

1. The Government of the United States agrees to furnish the Government of Bolivia with a credit for the purpose of aiding the Government of Bolivia in the development of its agricultural, mining, and other industries and in the construction of adequate means of transportation within Bolivia.

2. The Government of Bolivia agrees to create immediately a corporation which will be charged with the preparation of plans and the administration and management of the funds mentioned in paragraph one above as well as any funds furnished to the corporation by the Bolivian Government. The corporation will be authorized to operate with a capital of $25,000,000 U. S. currency.

3. The corporation will draw on the Export-Import Bank of Washington for the funds to finance the plans mentioned in paragraph two above, once those plans are approved by the Governments of Bolivia and the United States, in the amounts necessary and under the conditions to be set forth in the respective loan contracts.

4. The statutes and by-laws of the corporation shall be drawn by a special committee to be set up in La Paz. Upon approval, by both Governments, of the statutes and by-laws, the Government of Bolivia will immediately authorize the formation of the corporation.

5. The Governments of Bolivia and the United States will, immediately upon the creation of the corporation, take steps to resolve the question of communications between Cochabamba and Santa Cruz and to aid the mining industry.

Rio de Janeiro, January 27, 1942.

61. Under Secretary Sumner Welles was representing the United States at the Third Meeting of the Foreign Ministers of the American Republics at Rio de Janeiro.