Foreign Relations of the United States, 1948, The Western Hemisphere, Volume IX

824.24/9–1548

Memorandum by Mr. Charles W. Kempter of the Division of Economic-Property Policy²

confidential

Washington, October 15, 1948.

For the confidential information and guidance of interested United States Government offices and officials there are transmitted herewith copies and/or translations of certain notes exchanged between the American Embassy in La Paz, Bolivia, and the Ministry of Foreign Affairs and Worship of the Government of Bolivia during the latter part of 1947.³

It may be noted that, through this exchange of notes there was made effective a

Bolivian Lend-Lease Settlement Arrangement

providing for the re-scheduling and final liquidation of the repayment responsibility of the Government of Bolivia within the general terms and conditions of the Lend-Lease Agreement of December 6, 1941.⁴

Although, in the exchange of notes, it was first indicated that the overall repayment responsibility might be approximately $925,000 and was later reduced to $916,000, final reportings and billings sent to the Government of Bolivia show the correct amount to be $915,644.21. For that reason the final payment scheduled in this settlement arrangement (refer to Embassy’s note No. 369, July 23, 1947, subparagraph C–3) will be in the amount of $15,644.21 and not $25,000 as stated.

The first three (3) amortization payments of $150,000, each, have been made in Bolivian bolivianos as provided in the arrangement.⁵ The balance remaining to be paid as scheduled is $465,644.21.

Contingent lend-lease accounts, such as cash reimbursable accounts or other similar accounts, where such may exist, are not covered by this settlement arrangement and are subject to treatment separate and apart from the “treaty” account both for billing and settlement negotiations.

Enclosures:⁶

1. Note No. 366, July 17, 1947, from Embassy, La Paz to the Bolivian Ministry of Foreign Affairs and Worship.

2. Note No. 369, July 23, 1947, from Embassy, La Paz, to the Bolivian Ministry of Foreign Affairs and Worship.

3. Note G.S. 536, November 22, 1947, (translation) from Bolivian Ministry of Foreign Affairs and Worship to the Chargé d’Affaires ad interim at the Embassy in La Paz, accompanied by—

(a) Translation of Supreme Resolution No. 26027, October 10, 1947, by Bolivian Ministry of Finance.

2. Copy transmitted to the Ambassador in Bolivia (Flack) in instruction 177, October 20, 1948, not printed.
3. None printed; see footnote 6, infra.
4. For agreement signed December 6, 1941, see Foreign Relations, 1941, vol. vi, p. 428.
5. Payments corresponding to July 1, 1947, January 1, 1948, and July 1, 1948. Further payments would be due on January 1, 1949 ($150,000.00), July 1, 1949 ($100,000.00), January 1, 1950 ($100,000.00), July 1, 1950 ($100,000.00), and January 1, 1951 ($15,644.21).
6. None printed: these three communications were transmitted to the Department in despatch 643, September 2, 1948 from the Embassy in Bolivia (824.24/9–248). Two additional notes in this exchange of correspondence relating to the lend-lease settlement with Bolivia were transmitted to the Department in despatch 919 of December 31, 1948: the Embassy’s Note no. 706 of October 27, 1948 to the Minister for Foreign Affairs, and the Foreign Minister’s reply no. A.G. 485 of November 16, 1948 (824.24/12–3148).