824.51/8–346: Telegram

The Acting Secretary of State to the Ambassador in Bolivia (Flacck)

confidential

468. Board Directors Eximbank Aug 6 considered request Bolivian Develop Corp to purchase three notes amount $1,100,000 and expressed opinion that as notes not yet purchased and would only be dated and delivered by Corp as of date Bank purchased them and as each note bears guarantee of former Govt notes are definitely not valid and therefore cannot be accepted. Board agreed however that should Dept deem it necessary for urgent political or other reasons (as for example to prevent stoppage work on highway) to request Bank to provide funds immediately Bank would be willing to convoke Board to present request of Dept and if Board so ordered would endeavor find means or method whereby funds could be made available under the urgent circumstances.

In view statement Urtel 757 Aug 378 that sufficient funds maintain highway through Aug Bank would prefer withhold any special action at this time pending recognition and receipt new note with guaranty present Govt.79

Acheson
  1. Not printed.
  2. In telegram 778, August 9, 1946, 11 a.m., the Embassy agreed with this position (824.51/8–946).