824.2544/12–1554: Airgram
The Secretary of State to the Embassy in Bolivia
Subject:
- Compensation for Nationalized Properties of Patiño Mines and Enterprises Consolidated, Inc.
A–167. The Department’s policy with respect to the international obligation of a government to make compensation for property nationalized by it, [Page 569] is set forth in the Aide-Mémoire handed to the Guatemalan Ambassador1 on August 28, 1953,2 a copy of which is enclosed. It is the Department’s position that compensation meeting the criteria set forth therein should be made to the United States citizen owners of Patiño Mines & Enterprises Consolidated, Inc., which concern was deprived of its properties in Bolivia by the Nationalization Decree of October 3, 1951 [October 31, 1952?]. The Department would prefer that mutually satisfactory arrangements be reached by direct negotiation between the Bolivian Government and representatives of the firm. However, it does not appear that the direct negotiations now taking place will result in an early Agreement.
As the Embassy is aware, the “Definitive Agreement on Retentions” signed between representatives of the “Patiño Group” and the Bolivian Mining Corporation at La Paz on June 10, 1953,3 is scheduled to expire after December 31, 1954. Sums have been paid to the “Patiño Group”, including Patiño Mines & Enterprises Consolidated, Inc. under the provisions of that Agreement. In view of the American interest in Patiño Mines & Enterprises Consolidated, Inc., the Department is concerned over the failure to date to reach an agreement on the modification and extension of the “Agreement on Retentions”. The Department considers such action is the minimum that should be expected from the present negotiations. Failure to reach such an agreement might well cause reactions in United States public opinion unfavorable to the present Government of Bolivia, and would cause the Department to consider most carefully and critically the question of the sincerity of the repeated declarations by high ranking officials of the Bolivian Government that they intended to make adequate compensation to the former owners of the nationalized properties.
Provided the Embassy considers that the action would be useful in achieving the desired objectives, it may make the above observations known on a confidential and informal basis to high officials of the Bolivian Government. The Embassy should report promptly any action taken.4
- Guillermo Toriello Garrido.↩
- Not printed here. For text of the referenced aide-mémoire, dated Aug. 27, 1953, see Department of State Bulletin, Sept. 14, 1953, pp. 357–360.↩
- The referenced agreement was reached on June 10, 1953, but actually signed on June 13.↩
- In despatch 285, from La Paz, dated Dec. 28, 1954, Ambassador Sparks informed the Department of State that on Dec. 22, 1954, COMIBOL had offered a 90-day extension of the retention agreement currently in force with Patiño Mines and Enterprises Consolidated, Inc. (824.2544/12–2854)↩