Memorandum of Conversation, by the Ambassador in Bolivia (Flack)1

Mr. René Ballivián, who recently returned from the United States where he had been technical adviser to the Bolivian Economic and Financial Mission composed of Minister of Hacienda, José Romero Loza, and special Ambassador, Dr. Javier Paz Campero, called today to give me a resumé of his impressions.

Mr. Ballivián expressed his gratification for the courtesy and cooperation extended by the Department of State, the ExImBank, and the President of the Foreign Bondholders Council, Mr. James Grafton Rogers. He stated that the arrangement reached with the Foreign Bondholders Council had been attainable largely through the friendly cooperation and understanding of Mr. Rogers and he paid high tribute to his capacity.

Mr. Ballivián stated further that he felt that the visit of the Commission had contributed to further understanding between the ExImBank and the Bolivian Development Corporation and that with the dispatching of Public Roads Administration engineers to Bolivia, he felt that progress had been made toward eventual resumption of full [Page 335] operation on the Cochabamba–Santa Cruz highway which, of course, would have to wait the engineers’ report and the subsequent developments. However, he expressed regret that the ExImBank was not inclined to name a representative on the Board of Directors of the Fomento Corporation.

Mr. Ballivián stated further that the request made to the International Bank for Reconstruction and Development for a loan for the construction of a sugar mill in Bolivia had been favorably received and that the Bank was sending its own experts to Bolivia to look over the situation at first hand. He said that the loan envisaged would amount to about $3,500,000 and that he hoped this transaction would be the beginning of further helpful relationships between the Bank and Bolivia.

Joseph Flack
  1. Enclosure in despatch 532, July 15, 1948 from the Embassy in Bolivia, not printed.