Memorandum by the Assistant Chief of the Division of West Coast Affairs ( Lyon ) to the Assistant Chief, Division of Foreign Activity Correlation ( Hodgdon )

With reference to my memorandum of June 2497 to Mr. Duggan98 concerning lend-lease for Bolivia and to previous conversations with you on this subject, I wish to confirm that (1) lend-lease material which has been held on the docks and in warehouses since last December should now be shipped, and (b) the appropriate authorities of the Bolivian Embassy here should be given an opportunity to review the applications of the former regime.

The obligation for payment of lend-lease material delivered to the former Bolivian regime is accepted by the present regime. This [Page 505] matter was discussed with Mr. Bené Ballivian, Commercial Counselor of the Embassy here, who stated that his Government assumed all international obligations and debts of the former regime. I asked Mr. Ballivian if he would be willing, if necessary, to put this in writing and he said he would. Mr. Duggan does not feel that we should request such a letter. He says it is understood that the present Bolivian Government assumes the international obligations of the Peñaranda government.

C[ecil] B. L[yon]
  1. Not found in Department files.
  2. Laurence Duggan, Director of the Office of American Republic Affairs.