740.00112A European War 1939/35037: Telegram
The Ambassador in Bolivia (Boal) to the Secretary of State
[Received 4:19 p.m.]
1369. A proposed law was introduced in the Bolivian Senate yesterday which would place all Axis nationals with 30 years residence in Bolivia or with 20 years residence and a native born Bolivian wife or with 10 years residence and Bolivian born sons on an equal status with Bolivian nationals. The proposed measure also provides that Axis nationals meeting any one of these three conditions would be permitted full constitutional immunities and guarantees accorded Bolivian nationals and would further be permitted the development freely and normally any businesses owned or controlled by them. The measure further provides that economic warfare measures would not apply to such Axis nationals. Sponsors of the proposed law include three Senators from Santa Cruz and one Senator each from the Beni and Pando all of whom are members of either the dominant Liberal or Republican Socialist Parties. The political affiliations of the sponsors indicate that the law has good possibilities for passage unless the administration intervenes against it.51 It is currently under consideration by the Senate Committee of Justice and Diplomatic Affairs.
We have been confidentially advised that the proposed law is a counter-offensive launched against the proposed replacement program by Proclaimed List nationals who would be most severely affected. As the Department knows the owners of the essential intervened Proclaimed List firms are almost entirely Axis nationals. The provisions of the law are skillfully designed to exclude from the operation of the proposed replacement program the principal spearheads of Axis penetration in Bolivia. The Embassy has also pointed out to the Department the difficulty of persuading the Bolivian authorities to bring Bolivian nationals within the scope of the proposed replacement program and other economic warfare measures.
The Embassy intends (unless otherwise instructed) to inform Foreign Office and Minister of Finance Espada informally that passage of the proposed law would serious[ly] jeopardize and might entirely preclude the proposed financial cooperation of the United States in connection with the replacement program.