740.24112 RP/3–2646: Airgram

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

confidential

A–170. Reference is made to your airgram no. A–112 of March 26, 1946, despatches no. 2473 of April 3, 1946 and no. 2527 of April 16, 1946 and telegram no. 331 of April 18, 194619 requesting the Department’s views with regard to certain proposals which the Embassy feels if implemented would result in the rapid conclusion of the Replacement Program for Bolivia.

With respect to the first recommendation made in your airgram no. A–112 concerning retention of the Proclaimed List for Bolivia for at least 2 more years, it now looks as though the List will probably be continued for all countries until June 30 and there is some possibility [Page 414]that it may be continued a little longer at least for Eastern Hemisphere countries. As pointed out in the Department’s instruction no. 506 of April 15, 1946, it would not be possible to retain the List for Bolivia after it has been withdrawn for all other countries, or for all other Western Hemisphere countries.

Your second recommendation regarding the reinstitution of export control for Bolivia has been discussed within the Department and with Officers of International Trade (formerly FEA). In as much as the trend of our trade policy for all countries is toward a greater relaxation of economic restrictions, it would be difficult to justify the complete reversal of this policy for Bolivia. Furthermore, in order to make such a program effective, it would be necessary to stop cloaking within Bolivia and transshipments from neighboring countries. Both of these would be very difficult if not impossible.

The Department after thorough study of all the factors involved has found it impracticable and inadvisable to couple the Replacement Program with the tin negotiations given as your third recommendation in your airgram No. A–112. To inject in such negotiations a consideration extraneous to the commercial arrangements concerned with the renegotiation of a new tin contract and implying coercion could well lead to unforeseeable and possibly undesirable consequences.

However, in an endeavor to fortify the Embassy’s position, the Department has handed a note to Ambassador Andrade,20 a copy of which is being transmitted to you under separate cover, informing him of our interest in obtaining completion of the Replacement Program.

Byrnes
  1. Despatches and telegram 331 not printed.
  2. Supra.