824.63/12–346: Telegram

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


636. Proposed expropriation decree Embtel 1104, Dec. 3. Although US interests not involved Emb authorized express this Gov’s views if approached by responsible Bolivian officials for advice or opinion desirability [Page 402] promotion and encouragement system private enterprise as guiding principles Resolution LI Article 8 Final Act Mexico City 1945.90 May be pertinent indicate harmful long-term effects forcing sub-marginal properties remain in production thereby postponing ultimately unavoidable adjustments to normal production pattern. Suggest general advantages permitting greater mobility labor and overall development Bolivian economy which would result from shift labor from high cost producing mines to other fields greater economic value to Bolivia such as agriculture, petroleum, etc. Provisions forbidding any shutdown properties now in operation might additionally handicap Bolivian Gov in present effort resolve critical labor situation.

Emb should not take initiative in expressing above views and should exercise caution if views requested avoid any impression of gratuitous representations since our interests not directly involved.

  1. Pan American Union, Final Act of the Inter-American Conference on Problems of War and Peace, Mexico City, February–March, 1945 (Washington, 1945), pp. 92, 96.