811.516 Export-Import Bank/8–2247: Telegram

The Acting Secretary of State to the Embassy in Bolivia


480. For Flack from Eximbank. Amendatory credit agreement covering petroleum program signed today following assurances from Bolivian Amb that Bol Govt had advised it will promptly meet its obligations to Corporación and satisfactorily resolve highway contract with McGraw–Warren. Advance for starting petroleum program will be made soon. Eximbank confirmed to Bol Amb that Bank now ready to consider application from Corporación for interim credit to meet deficiency highway funds under terms as follows. 1, the application for interim credit not to be in excess of four and one-half million dollars. 2, term of interim credit not to exceed five years. 3, that Bol Govt make available two million dollars now obligated or its equivalent in local currency in monthly installments satisfactory to the Bank and during life of interim credit. 4, repayment of interim credit by Corporación to be made out of repayments by Y.P.F.B. for petroleum loan. 5, that highway engineering and construction be prosecuted vigorously under revised contract satisfactory to Bank. Airmail letter follows. Bank appreciates your cooperation and timely cables. Please advise when Government makes payment one million one hundred twenty-five thousand to Corporación for highway and final agreement highway contract. [Eximbank.]