740.24112 RP/2–2746

Memorandum by Mr. H. H. Barger, Economic Analyst in Bolivia, to the Chargé in Bolivia (Adam)97

[Extracts]

In a preliminary talk on the Replacement Program with Minister of National Economy Zarco Kramer on February 26, 1946, at which Mr. J. Dehlsen, Special Assistant to Ambassador, and Mr. D. Ballentine, Vice Consul, were present, an attempt was made to sound out the attitude of the Economic Defense Board.98

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At the end of the meeting, the Minister assured the representative of the Embassy that he would do everything possible to expedite the replacement program and thanked the undersigned for the offer of cooperation. However, Zarco Kramer has made similar protestations of good faith and willingness on the part of the Bolivian Government to expedite the replacement program. At this late date the program has yet to go into effect. It was very evident that the thought that the proclaimed list might be continued for some time in Bolivia while removed in other countries of the hemisphere made a decisive impression, as well as the idea that other commercial relations with the Allied Nations might be impeded. For this reason, it would undoubtedly be advantageous to recommend that the Department immediately consider [Page 406]the establishment of a quid pro quo manner of dealing with the Bolivian Government in the matter of forging ahead with the replacement program. If authorizations would be obtained to drop a hint to the Bolivian Government that no tin negotiations would be entered into or even considered until the replacement program had been successfully concluded, some action might be seen. It would undoubtedly be well for the Embassy to obtain the Department’s approval for the continued existence of the proclaimed list in Bolivia in the event that the replacement program is not effective.

  1. Copy transmitted to the Department in despatch 2337, February 27, 1946, from La Paz, not printed.
  2. Bolivian Government instrumentality.