824.154/8–1347: Telegram

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

us urgent

737. Cabinet yesterday resolved basically problems of BDC highway contract, Minister Costas informed me last night. Govt to fulfill obligation 3.1 million commitment and authorize renegotiation contract cost plus basis. Minister said further discussion in Cabinet required establish working detail which will be accomplished tomorrow. Indications are that McGraw–Warren contract will be continued.