251. Letter From the Under Secretary of State (Hoover) to the Director of the Foreign Operations Administration (Stassen)1
Dear Harold : In view of conditions in Bolivia, with which you are familiar, this Department believes it is desirable to suggest to the Government of Bolivia a Joint Program for immediate action. This would be done with a view to developing a sounder economy there, under a political system which we could approve, by assistance to the present Bolivian Government and by encouraging that Government to take actions and follow policies which we consider desirable. The minimum initial steps in such a program are set forth in the attached outline.2
Several of these steps would require the disbursement of funds under the control of the Foreign Operations Administration. It is estimated that $150,000 should be allocated for the proposed survey of the mining industry and the proposed financial mission. The additional grant aid which we envisage during this fiscal year requires the allocation of $3,888,000 at market value of surplus agricultural commodities under the provisions of Title II of the Agricultural Trade Development and Assistance Act of 1954, and the allocation of $2,099,500 under the provisions of the Mutual Security Act of 1954. I understand that these proposals have been discussed informally with some of your officers, and that the necessary documentation has been prepared for your approval.
This Department believes that the proposed Joint Program should be implemented as rapidly as possible. It will be necessary for your approval of the allocation of the necessary commodities and funds to be received prior to discussion of the program with the Government of Bolivia, but implementation of the additional grants would be contingent upon Bolivian acceptance of the Program. Accordingly, it would be greatly appreciated if you could give early approval to the additional allocations.
Sincerely yours,