740.24112 RP/3–2546

The Chargé in Bolivia (Adam) to the Secretary of State

confidential
No. 2434

Sir: I have the honor to report that Mr. Herman H. Barger, Economic Analyst, and I were received by President Villarroel this afternoon, at which time an aide-mémoire, copy of which is enclosed,3 was presented to him. A copy of the replacement program as drawn up by Mr. Barger and the Legal Adviser of the Ministry of National Economy was also handed to him. (See despatch no. 2396 of March 13, 1946.3)

During the three-quarters of an hour conversation, the advantages which would accrue to Bolivia as a result of the immediate enactment of the replacement program were cited to the President. The Chief Executive informed us that he would see that favorable action would be taken. He suggested that a decree expropriating all the spearhead firms would be the best way to handle the matter and that he would send word to the Minister of Finance, Dr. Victor Paz Estenssoro, to have such a decree written. It will be recalled that in October 1945, [Page 409]the same promise was made. (See despatch no. 1740 of October 27, 19454).

Respectfully yours,

Hector C. Adam, Jr.
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