811.516 Export-Import Bank/7–1847: Telegram

The Secretary of State to the Embassy in Bolivia


433. For Flack from Eximbank. Reurtel 678, July 18 Bolivian Government payment $3,125,000 to Corporation is commitment contingent to credit agreement which was confirmed during negotiations for new petroleum program. Eximbank cannot understand why this commitment has not been fulfilled particularly because when Gutierrez was in Washington negotiating for new petroleum program and discussion of highway credit assurances were repeated that Bolivian Government [Page 352] would comply with this obligation. Refer your despatch No. 570, Nov 12, 1946,49 Page 2.

Please reiterate to Minister Guachalla following: (1) Eximbank has informed Bolivian Amb here and Kinnear informed Corporation Board and Bolivian Govt officials there that Bank is interested in completion highway in shortest possible time and at reasonable cost and that Bank will consider application for funds to bridge gap between possible exhaustion Eximbank and Bolivian funds and beginning repayments by YPFB under Petroleum program; (2) Eximbank would not entertain such application until such time as funds now available including Bolivian Government’s agreed contribution $3,125,000 near exhaustion and additional requirements if any are known; (3) it will of course also be necessary for Corporation to arrange satisfactory contract for effective and earliest possible completion engineering and construction highway; (4) Amendatory credit agreement must also be signed, but as yet Bank has not received pertinent documents, the delay of which is postponing start petroleum program and availability YPFB repayments to corporation for use on highway; (5) a flat commitment by Bank for additional funds does not appear to be necessary at this time. [Eximbank.]

  1. Not printed.