824.154/8–1147: Telegram

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

confidential
us urgent

729. For Exim Bank. Deptel 441, August 1.50 In brief informal conversation at airport this morning Minister of Economy Costas, who [Page 354] will also act as Minister for Foreign Affairs during Guachalla’s absence, latter inquired whether Exim Bank would insist upon McGraw–Warren completing work Cochabamba–Santa Cruz highway.

I told Minister my opinion was Exim Bank had at no time insisted upon McGraw–Warren but at same time bank felt that this firm had gained experience and with appropriate guarantees should be able to complete the highway. He said there is very strong congressional opposition to McGraw–Warren. However, I told the Minister I would make specific inquiry and inform him bank’s views as soon as possible. He intimated that the govt intended to make its payment to the corporation, details of which I shall obtain from him in forthcoming formal conversation.

Flack
  1. Not printed.