824.6363/10–2846

Memorandum by Mr. James Espy of the Division of North and West Coast Affairs 86

Subject: Bolivian Petroleum—Summary

The Export-Import Bank has made a loan to the Bolivian Development Corporation and through it the YPFB for 5½ million dollars for the development of petroleum resources in Bolivia.

The YPFB has drawn up new plans for the drilling of oil wells in the Camiri field, construction of a pipe line from Camiri to Cochabamba and the building of a topping plant refinery at Cochabamba. These plans are a change from the original plans which were approved by the Export-Import Bank two years ago and which provided for the location of the refinery at Santa Cruz and the construction of the pipe line from Camiri to that City.

YPFB has requested the support of the Department for the former’s request of the Export-Import Bank that the changes in the plans be approved by the Bank and the entire credit of 5½ million dollars be made available to help finance the construction of the entire project. The Banco Central of Bolivia has made available another 5 million dollars to YPFB.

It is recommended that the Department inform the Export-Import Bank that the Department has no objection to the changes desired by YPFB but that the Department support the demand which the Export-Import Bank may make upon the YPFB that the latter be assured of sufficient total funds to finance the cost of the entire project.

James Espy
  1. Addressed to NWC—Mr. Wells; ARA—Mr. Briggs; A–Br—Mr. Braden; Ped—Mr. Townsend.