Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

253. Agreement for a Joint United States-Bolivian Program¹

La Paz, June 22, 1955.

The following program has been agreed upon between the United States and Bolivia as a series of measures directed toward achieving common objectives. It is not intended to be all-embracing nor exclusive of other measures which may later be agreed upon.

1. Agreement on an engineering, geological and management survey of the mining industry by a qualified group of United States technicians, with the objective of determining what is needed to create in Bolivia a sound mining industry, economically profitable to the country, and attractive to private capital. The study should include the feasibility of establishing a tin smelter or beneficiating plant in Bolivia, and the desirability of a codification of Bolivian mining law. It would be expected that the recommendations of the survey would be followed up, with both countries making whatever contributions are within their power toward a stable and profitable mining operation.

2. Agreement on a commission of United States experts to suggest and oversee on a continuing basis a revision of Bolivian financial and fiscal structures, with a view to controlling inflation, establishing workable exchange rates, installing sound budgetary procedures, and utilizing Bolivian credit as efficiently as possible.

3. Agreement to maintain continuing contact with the Foreign Bondholders Protective Council concerning the defaulted bonded indebtedness, looking toward the establishment of terms and conditions leading to resumption of debt service.

4. Promulgation as promptly as possible of a Bolivian petroleum code which will afford a sound and attractive basis for private foreign oil companies to invest in Bolivia.

5. Negotiation of an agreement on investment guaranties.

6. Issuance of an official Bolivian statement of policies and treatment to be accorded private foreign capital, with special reference to legislation and regulations pertaining to the treatment of such capital.

7. Strengthening of the Bolivian Economic Planning Commission with adequate authority and competent personnel, with a view to formulating an integrated National Development Plan and coordinating the implementation of that plan.

8. Negotiation of a contract for tin concentrates for the Texas City smelter, for such additional amounts as may be determined to be necessary for the operation of the smelter through fiscal 1956, when appropriate Congressional action has been taken. Although the quantity involved may reach 9,000 tons, only an additional 3,000 tons can be contracted for at present.

9. Extension to Bolivia of approximately $6 million additional grant aid during fiscal 1955 consisting of surplus agricultural commodities, development items and funds for transportation, sufficient to cover Bolivian needs through December 31, 1955.

10. Continuation of integrated technical assistance, with particular emphasis on its usefulness for Bolivia’s economic development.

11. Continuation and intensification of the Bolivian efforts to eradicate the influences of international Communism in that country.

1. Source: Department of State, Central Files, 824.00/6–2455. Official Use Only. The source text is a copy of the original which Ambassador Drew handed to President Paz on June 22. It was transmitted to the Department of State in despatch 583 from La Paz, June 24. The despatch indicates that “No changes in the text of the Program were suggested or agreed to and the President made it clear that Bolivia accepted the Program.”