811.20 Defense (M) Bolivia/1351: Telegram

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

121. As stated in the Department’s Telegram No. 75, January 15, 9 p.m.,38 the Department has informed the Rubber Development Corporation that it may continue to apply for export permits to ship rubber purchased by the Corporation in Bolivia. The Department considers that Rubber Development (although all agency of this Government) is actually operating as a trading corporation and that the application for export permits in no sense could be interpreted as constituting any recognition of the Bolivian junta.

With respect to the rubber smuggling aspects of the situation mentioned in your telegrams Nos. 223 of January 17 and 241 of January 18,39 neither the Department nor the Rubber Development Corporation intends at this time to increase staffs to prevent smuggling activities. What is desired is that as much time as can be spared be devoted to this effort.

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