824.5034/11–946: Telegram

The Ambassador in Bolivia ( Flack ) to the Secretary of State

confidential

1054. ReDepinstr 60, October 24.88 Gutiérrez accompanied by McCaskill89 leaving Sunday. Will arrive Washington about November 15. Conversations with both held yesterday fully covered by despatch which follows.

BDC will request additional credit Export-Import Bank to cover Cochabamba-Santa Cruz project. Bolivian engineers survey requested by BDC just completed approximates cost of dollars 15 million. Gutiérrez and McCaskill both consider that figure low. Are in favor of “on the ground” survey by group US engineers if Export-Import Bank so desires. Embassy believes such investigation by US technicians highly desirable to eliminate for once and for all cost question.

[Page 401]

Embassy recommends most strongly favorable consideration be given request for additional credit. McCaskill stated changes in McGraw-Warren personnel absolutely essential to bring smooth operation. Gutiérrez states Govt’s commitments fully assured and feels this important factor in Washington negotiations.

Re inspection and certification of satisfactory construction by Public Roads Corporation opinion is that Bolivian engineers qualified and certification by them more acceptable to public.

Flack
  1. Not printed.
  2. Guillermo Gutierrez Vea Murguía and Joseph C. McCaskill, president and general manager, respectively, of the Bolivian Development Corporation.