Memorandum by Mr. Phil R. Atterberry, Division of Financial and Monetary Affairs, to Mr. Louis J. Halle, Division of Northwest Coast Affairs

I refer to your telephone conversation today with Mr. Barber16 and submit the following confidential information relative to the [Page 513] present status of Lend-Lease payments due from Bolivia under the Agreement:

$2,506,294.99 —Total scheduled cost-value to the United States of material transferred to Bolivia under Lend-Lease through July 31, 1944, as reported by FEA.
$450,000.00 —Approximate appropriate percentage of payment due from Bolivia under the Agreement.

Bolivia has been requested on two occasions to make a payment. On July 13, 1944 the Department sent the first billing (Statement LL–1)17 to the Bolivian Embassy and requested a payment on account in the amount of $450,000 which represented the approximate appropriate percentage due under the Agreement. On October 4, 1944 the Department sent the second billing (Statement LL–2) and repeated its earlier request for payment.

To date no payment has been received, nor has Bolivia indicated when a payment may be expected.

Please observe that (1) a payment on December 3, 1942 from Bolivia in the amount of $333,333.33 was returned by the Department with the explanation that until schedules of material transferred were prepared, it would be impossible to determine the amount which Bolivia owed this Government—the first of these schedules (Statement LL–1) was transmitted in the above-mentioned note of July 13, 1944; (2) Lend-Lease to the other American republics includes only military equipment and is based on the premise of hemispheric security against possible enemy invasion—a possibility which now appears beyond the realm of probability—consequently a precedent should not be established which would permit the use of Lend-Lease material for national or political protection, and moreover, the time is opportune for the adoption of a policy which would require that payments due on account be liquidated before further material is transferred under Lend-Lease.

The foregoing represents a brief history of the status of Lend-Lease payments due from Bolivia. Any assistance toward making a collection would be appreciated.

Permit me to emphasize the secret nature of the above information, particularly with respect to the value of material transferred and the amount of payment requested. Such amounts pertain solely to Bolivia and any reference thereto should be closely guarded since no two Lend-Lease Agreements with the other American republics are identical as concerns the terms of repayment.

  1. Willard F. Barber, Assistant Chief, Division of Financial and Monetary Affairs.
  2. Not printed.