124.24/10–1347: Telegram

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

us urgent

877. In conversation with Minister Finance Guachalla October 10 in presence of Subsecretary and Galbraith he promised proceed with initial payments under supreme resolution authorizing Lend-Lease payment. He promised initial payment this week of 2,500,000 bolivianos and balance of equivalent of 150,0003 during October or early [Page 390] November. In view stringent Bolivian financial situation I accepted this as practical matter leaving question payment dates subsequent installments for future determination.

In view impending Bolivian payment I again discussed contract with Ernst. He is willing accept total price 5,738,500. This includes increase of bolivianos 238,500 based on today’s free market rate 70 as against 64.70 calculated when matter first discussed (reDeptel 506 September 175).

In order to conclude this matter as Department urged, I told Ernst I felt we could accept this and request Department’s promptest cable confirmation, also authorization to use my discretion in minor matters.

Ernst will deliver to us property deed on payment first installment under agreement of sale we are drafting.

  1. Presumably dollars.
  2. Not printed.