811.516 Export-Import Bank/6–1847: Telegram

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

us urgent

580. During past week pressure from Sucre politicians for change in petroleum program was intensified. Consequently I reiterated to Foreign Minister42 Exim Bank’s views as furnished in Dept’s 313 of May 29. (Refer mytel 553 of June 10).43 In this connection I also had friendly discussion yesterday morning with President Hertzog, who promised that matter would be immediately resolved. Mariaca informed me this morning that at subsequent meeting with Fomento,44 YPFB officials and Minister of Economy, President stated that original programs approved would be adhered to and ordered that documents in this connection be prepared promptest possible. This appears to settle whole question.

However, to satisfy Sucre’s aspirations, Bolivian Government may later seek separately to add to its facilities.

Dept’s 313 has been most useful since it enabled me to continue discussions without requesting additional instructions.

Repeated to Lima for Sundt.45

  1. Luis Fernando Guachalla.
  2. Not printed.
  3. Corporación Boliviana de Fomento.
  4. Olaf F. Sundt, Petroleum Attaché assigned to Santiago, Lima, and La Paz.