824.50/212
The Bolivian Ambassador ( Guachalla ) to the Secretary of State
Excellency: On August 14 I confirmed to Your Excellency that the proposed loan agreement, as prepared by the Export-Import Bank of Washington, between the Bolivian Government, the Export-Import Bank and the Bolivian Development Corporation had been approved in form and content by Their Excellencies, Dr. Joaquín Espada, Minister of Finance of Bolivia, and Sr. Crespo Gutiérrez, Minister of National Economy of Bolivia, and that the contract between the Bolivian Government and the Bolivian Development Corporation had been approved by the Bolivian Government in the form in which it was submitted to the Export-Import Bank and that the two proposed agreements would be submitted without change to the National Congress of Bolivia for the necessary authorizing legislation.
I have the honor to advise Your Excellency that both Houses of the Bolivian Congress have passed and the President on December 3 promulgated a law to authorize the signing of the tri-partite loan agreement between the Bolivian Government, the Export-Import Bank of Washington and the Bolivian Development Corporation, and a law to authorize the signing of the contract between the Bolivian Government and the Bolivian Development Corporation.
[Page 614]The Government of the United States and the Export-Import Bank have requested a clarification of the legislative acts with reference to their effect upon the understanding reached between the Export-Import Bank and the Bolivian Government as to the operations of the Bolivian Development Corporation contemplated by the two agreements.
I take this opportunity to assure Your Excellency on behalf of my Government that the legislative acts referred to above and as now promulgated authorize the signing of the two above mentioned contracts in their present form without change in any of their provisions.
I also take this opportunity to assure Your Excellency on behalf of my Government that the legislative acts will not necessitate any change in the operations or the method of operation of the Bolivian Development Corporation as contemplated by the two said agreements. In this respect my Government has authorized me to give formal assurances to your Government that, so long as any portion of the credit established by the Export-Import Bank remains available to the Corporation or has not been repaid, the functions of the “contralor fiscal” as provided in Article 9 of the law authorizing the loan agreement with the Export-Import Bank of Washington will be exercised exclusively by the three members of the Board of Directors of the Bolivian Development Corporation nominated by my Government, who in the performance of their duties shall be responsible to the Government of Bolivia. In acting in their capacity of “contralor fiscal” as contemplated by said legislative act, the three Bolivian directors will have the responsibility and obligation of examining all of the accounts of the Corporation and will prepare and submit reports of the handling of the funds, the execution of the works and the financial condition and administration of the Corporation to the Comptroller General of the Republic for his approval. The functions of such directors in their capacity as “contralor fiscal” will therefore be such as will be consistent with their responsibility to my Government and with the duties and powers as directors as prescribed by the charter and bylaws.
Further, I have been authorized by my Government to give formal assurances to your Government that the provisions of the legislative acts do not stipulate nor will my Government impose any limitations upon the functions, powers or duties of any of the officers or directors of the Bolivian Development Corporation as set forth in its charter and bylaws.94
Accept [etc.]
- These assurances were accepted as satisfactory by the Secretary of State in a note dated December 24, 1942 (824.50/212).↩