824.24/6–3047: Telegram

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

us urgent

623. Just received Foreign Office note 530 today’s date92 stating regarding Bolivian lend-lease amounting to $925,000, Bolivian Government accepts renegotiation on general understanding that equivalent of approximately $600,000 US currency will be used in Bolivian equivalent. In my memo No. 256 of March 3192 headed [handed?] to Foreign Minister,93 no mention was made of amount to be used in bolivianos but I said orally at the time that it would probably eventually be equivalent to about $600,000.

In renegotiation conversations which will take place in Washington, we need the following immediately: $40,000 requested by owner Ernst94 in US currency, the equivalent of $45,000 at the approximate rate of 60 or 2,700,000 bolivianos to complete payment on residence, option for which expires July 31.

Other eventual dollar needs if Cusicanqui95 and adjacent lots on Avenida Arce not pressing at present are purchased are:

Cusicanqui property $60,000;
Adjoininglots (BanksUrioste, etc.) $40,000;
Lot and house owned by Keenan $20,000.

Total dollar needs this heading $120,000.

Other estimated eventual Boliviano needs: Construction on Cusicanqui and adjacent property (figures in million bolivianos):

Residence 6
Chancery 6
Additional secretary’s residence 1
Staff house for women 2.5
Acquisition of land and construction Consulate Cochabamba 2

Total these needs 17,500,000 bolivianos

Total equivalent this amount at official rate is approximately $415,000.

This with amounts above rescinded would roughly total slightly over $600,000.

If lend-lease renegotiations are not promptly concluded enabling taking up option on residence, I recommend most strongly that Embassy be authorized to pay purchase price of $85,000 in full by draft [Page 387] at once, leaving question of reimbursement to lend-lease fund to emerge from forthcoming negotiations, which I think will extend several weeks before final conclusions are approved by both Governments.

  1. Not printed.
  2. Not printed.
  3. Luis Fernando Guachalla.
  4. Hugo Ernst Rivera, owner of the property housing the American Embassy.
  5. Property of Hector Cusicanqui, possible site for American Embassy.