824.24/869: Telegram
The Secretary of State to the Ambassador in Bolivia (Boal)
1168. Your 1554, September 18, 2 p.m. It is suggested that you emphasize to the Country Agency that the proposed modification of the decentralization plan relates only to materials in free supply. There would be no change in procedure for commodities under estimates of supply and materials in short supply. Commodities for which the Embassy receives estimates of supply, and materials in so short supply that estimates are not furnished, would remain under the decentralization plan exactly as at present. The list of goods in free supply is not large at the moment and is comprised of items of lesser importance to Bolivian economy. It is contemplated that the list will become longer when and as the supply situation improves.
The purpose of the proposed modification is to remove American Government export restrictions where they are no longer necessary. However, it appears from your reports that the Country Agency feels that decentralization is being abolished in its entirety. Such is not the case at all. The Department accordingly feels that the Bolivians are attaching a much greater significance to the proposed change than it actually has.
Should Alternative III be accepted, the Bolivians could, through the monthly shipping programs, exercise control over the total amount of free goods to be imported. The United States Government would undertake to insure that essential goods would always be given shipping preference.
Eighteen governments have accepted Alternative III as an amendment to Plan A, (for the Embassy’s confidential information, it was offered to all countries except Argentina), and Bolivia is the only country which has not agreed to it. For administrative reasons it would obviously be desirable for the procedure to be uniform. Please discuss the matter further with the Country Agency in the light of the foregoing, and report as soon as possible.