811.51/5105

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

No. 545

Sir: I have the honor to refer to the Embassy’s despatch No. 247 of July 8, 1942,20 forwarding a copy of a Supreme Decree dated June 29, establishing a control of dollar currency in Bolivia, and especially to Article 3 of that decree which made compulsory the deposit [Page 626] with the Banco Central of all dollar currency in Bolivia by July 15. It will be recalled (see Embassy’s despatch No. 435 of August 10, 194222) that a subsequent decree was issued following up this matter and prohibiting all transactions in United States dollar currency.

The Embassy is now in receipt of a note from the Foreign Office stating that several individuals and firms were unable to make the necessary arrangements for the deposit of their currency before July 15 and are asking special permission to do so now. The Foreign Office, remembering the Department’s statement (see circular telegram of June 19, 11 a.m. [p. m.]22) that “the Treasury is expected to refuse applications for the release of currency which is not promptly forwarded to the United States”, has asked that the Treasury agree to accept applications for the release of at least some $5,000 in additional currency which has not as yet been accepted by the Banco Central for forwarding to the United States. According to the Foreign Minister, the Ministry of Finance will carefully supervise this additional operation, will accept currency only from firms and individuals not suspected of being anti-American and not included in the black lists of the allied countries, and will see that the source of the currency is established beyond question.

It is respectfully recommended, in view of the small amount of dollar currency which will no doubt be involved as well as the evidently sincere expressions of the Ministry of Finance to do everything possible to avoid accepting currency from persons or firms whose activities might be considered inimical to allied interests, that the request of the Foreign Office, if at all possible, be given favorable consideration. The Embassy of course understands that the Treasury is still accepting applications for the release of currency but sympathizes with the desire of the Bolivian Government to secure a definite statement to the effect that applications covering the currency which it now desires to forward will not be summarily refused.

Respectfully yours,

Pierre de L. Boal
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