840.51 Frozen Credits 24/29: Airgram
The Chargé in Bolivia ( Woodward ) to the Secretary of State
La Paz
, June 1,
1944—5 p.m.
[Received June 10—8 a.m.]
[Received June 10—8 a.m.]
A–244. Reference is made to the Department’s confidential Circular Airgram of May 25, 1944, 11 a.m.,42 which requests information concerning the investment “of enemy capital from Europe and capital belonging to Axis and Proclaimed List nationals in the other American Republics …43 by means of various subterfuges in property and enterprises located in the American Republics.”
- 1.
- Although the matter has been one of careful scrutiny, the Embassy is unaware of any “enemy capital from Europe” being invested in Bolivia since the outbreak of the war. As the Department is aware, there are properties and enterprises owned within Bolivia by Axis nationals and residents of Europe who may claim German citizenship. Examples are Zeller de Mozer y Cía (PL), La Papelera de J. Von Bergen (PL), Ferretería Findel (PL), the interest of Guillermo Bauer in Kyllman, Bauer y Cía (PL), and the interest of Juan Eisner in Juan Eisner y Cía (PL). So far as the Embassy is aware, the capital investments of Axis subjects in these firms have not been increased during the war.
- 2.
- There is likewise no indication that Proclaimed List nationals in the other American Republics have been since the outbreak of the war or are now investing capital in Bolivia. No one of the spearheads of Axis penetration in Bolivia has branches in other of the American Republics (unless the connection of Juan D. Roiste (PL) of Argentina as purchasing agent for Kyllmann, Bauer y Cía. and [Page 522] Juan Eisner y Cía. be so considered) and it has been the observation of this Embassy that the trend among Proclaimed List nationals and Axis subjects in Bolivia and adjacent countries is to export capital to Argentina rather than to increase capital investments in this country. The Embassy is in possession of reliable information, for instance, that the Axis and Proclaimed List colony in Bolivia has very probably exported in excess of US $7,500,000 to Argentina since the outbreak of war.
- 3.
- It is generally believed by the Embassy, therefore, that the capital investment of Axis subjects and of Proclaimed List nationals in Bolivia has quite definitely decreased since the outbreak of the war, rather than increased, and that the trend is toward a further decrease and a liquidation of some of the more important Axis spearheads.
- 4.
- There is a tendency, however, among certain Axis elements—particularly the Japanese—to liquidate commercial enterprises but to seek to reinvest the proceeds of such liquidation in agricultural properties. Nothing of any importance has been accomplished by the Japanese along these lines, although the Embassy was seriously but unsuccessfully approached in the autumn of 1943 by Ruben Terrazas, former Minister of Education in the Peñaranda Government, with a proposition which would have permitted a number of Japanese merchants and their employees to acquire and develop extensive holdings in the Yungas section of Bolivia. More recently (since the deportations of May 18, 1944), the Legal Attaché of this Embassy has learned that a prominent Japanese (Vicente B. Ochiay—PL) has expressed an interest in persuading all Japs engaged in commerce in the Department of La Paz to liquidate their holdings and reinvest the proceeds in a large collective agricultural enterprise to be situated on the Altiplano.
- 5.
- The subject matter of this airgram has been discussed with the Legal Attaché, who concurs in the conclusions expressed.
- 6.
- The Embassy will continue its vigilance in connection with undesirable investments and will report to the Department all instances which come to its attention.
Woodward