The Secretary of State to the Ambassador in Bolivia (Thurston)
671. Reurtel 935, September 7.87 Despite general policy that US agencies operating abroad should comply with labor laws of country in question Department agrees that oral assurance by Bolivian Minister of Labor to FEA and USCC88 permitting them to apply US rather than Bolivian standards to its native employees makes unnecessary FEA payment of Xmas salary bonus. Application of US standards by FEA and USCC accords with spirit of general policy of compliance inasmuch as standards maintained are generally higher than under Bolivian laws.
Since RDC has followed and apparently wishes to continue policy of applying Bolivian standards to its native employees and since this policy is consistent with general position of Department regarding compliance with local labor laws, payment of Xmas salary bonus by RDC is recommended. Continuation of divergence in policy between the two agencies preferable to requiring either agency to adopt at this date employment practices of the other.