Foreign Relations of the United States, 1952–1954, The American Republics, Volume IV

724.58/2254

Memorandum by the Secretary of the Army (Stevens) to the Department of State ¹

confidential

Washington, April 22, 1954.

Subject:

• Extension of Army Mission Agreement with Bolivia

1. Reference is made to your memorandum of 21 December 1953,² subject as above, requesting the Department of the Army’s views concerning the extension of the Army Mission Agreement with Bolivia.

2. The Department of the Army is currently maintaining a mission in Bolivia of seven officers and five noncommissioned officers at an annual cost to the United States of approximately $95,000. Since 1947, the Bolivian Government has failed to meet its obligation under the terms of the agreement providing for this mission. This failure on the part of Bolivia is a matter of increasing concern to the Department of the Army, particularly in view of the current emphasis on maximum economy in the utilization of manpower and funds.

3. Bolivia has failed to reimburse the Department of the Army for transportation furnished at the behest of that government as stipulated in Article 15 of the agreement. At the close of the fiscal year 1953, the Bolivian Government owed the Department of the Army approximately $85,000 for transportation incident to the outward movement of mission members. At present, the Bolivian Government is unable to meet its obligations with the Grace Line to defray the expenses incident to the return of mission personnel to the United States. The Grace Line will not return mission members to the United States unless guaranteed payment in advance, and since Bolivia cannot make such payment, the Department of the Army has been compelled since June 1953 to pay these additional expenses.

4. The mission is encountering protracted delays with respect to Article 15 of the Agreement whereby Bolivia is obligated to defray the medical expenses of the mission members. The Bolivian Ministry of Defense is slowly reimbursing the mission members for these bills but many have been outstanding for over two years.

5. The Army Mission in Bolivia is making negligible progress in obtaining any tangible results with respect to our government’s military program of ultimate standardization of Bolivian military organization, training, doctrine and equipment along U.S. lines. The major obstacles to the attainment of military objectives are lack of funds for the Bolivian Army and political deterrents to military progress. The economic situation in Bolivia and the influences of the leftist elements who look with disdain upon any attempt to build an efficient professional army is resulting in a paucity of appropriations for the Bolivian Army. The lack of funds precludes attendance of Bolivian military students at U.S. Army service schools in the United States or Panama and the purchase of U.S. military equipment. Army officers who are suspected of political thoughts or activities against the present regime are either reassigned to frontier regions or expelled from the Army. Understandably, no Army official in Bolivia dares to become too energetic in building up an efficient army for fear of incurring the consequences of the wrath of the leftist elements in the government.

6. Since the revolution in April 1952, the Bolivian Government has emphasized expansion of the service elements of their army, particularly engineering, transportation and signal, and has endeavored to utilize its army for the economic development of the country. To further such development, increasing assistance has been required from the U.S. Army mission in offering technical advice and instruction in the fields of engineering and communications.

7. At a meeting on 21 September 1952 with the Commanding General, U.S. Army, Caribbean, the President of Bolivia, Victor Paz Estenssoro, explained that his plans for the future of the Bolivian Army were directed toward expansion in technical fields and use in developing the economic resources of the country. He expressed his desire for the continuation of the U.S. Army mission, organized along lines to provide maximum technical assistance for his economic program.

8. The Department of the Army will agree to initiating negotiations with the Bolivian Government with a view to extending the mission agreement in its present form either for a period of four years or indefinitely, provided a settlement of Bolivia’s outstanding obligations is effected during these negotiations and appropriate arrangements are made to insure prompt settlement of future obligations. In the event such settlement cannot be achieved, the Department of the Army will reconsider the feasibility of maintaining this mission.

For the Secretary of the Army:

James M. Gavin

Major General, GS
Assistant Chief of Staff, G–3

1. Addressed for the attention of George O. Spencer of the Bureau of Inter-American Affairs.
2. Not printed (724.58/12–2153).