824.2544/l–953:Telegram
The Secretary of State to the Embassy in Bolivia
173. Department called in Andrade today attempt convince him grave danger delay reaching agreement regarding compensation and one-year contract. He was given unclassified material sent Embassy in Deptel 169.1
Andrade also informed that although situation has altered radically since December 19 US will still consider spot offers, but he was warned spot contract dangerous because (1) might produce delay in meeting urgent fundamental problem, (2) might make RFC more unwilling enter one-year contract later. Argument last paragraph Deptel 169 also used.2 FYI Department and RFC hope Bolivians will abandon spot idea.
Andrade said would urge on his Government desirability prompt negotiation compensation agreement but Department doubts he will do this vigorously. He will also report Department prepared send representative La Paz negotiate details agreement while tin contract being negotiated here.
As possible alternative to immediate arbitration agreement Andrade said would suggest clause in tin contract setting aside 5% proceeds for compensation with provision that if no compensation agreement reached within term of contract fund should be distributed by US to Amcits in full or partial settlement their compensation claims. He was informed Department would consider such a proposal although we wondered whether it would be as fair to Bolivia as our own proposal especially as it might not result in Bolivias obtaining full release from Amcits claims.
- Not printed (824.2544/1–753).↩
- The referenced paragraph of telegram 169 reads as follows: “Regarding spot purchase no reply has yet been given Ambassador as difficulty this respect has arisen. If subject arises you should state you have not heard from your Government this point but suggest matter largely irrelevant since spot contract conceived by Bolivians as stopgap and time remaining for decision regarding one-year contract and compensation agreement probably very short.”↩