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

255. Proposal for the Establishment of a Bolivian Stabilization Council¹

La Paz, September 1, 1955.

1. It is suggested that the Bolivian Government establish a top level coordinating group to be known as the Bolivian Stabilization Council, to determine and control the enforcement of Bolivian financial and fiscal policies. It is believed that this body should have supreme authority in its field and that its Chairman should be responsible only to the President of the Republic. It is suggested that there be created a new position with Cabinet rank for the Bolivian who shall serve as Chairman of this Stabilization Council and that the balance of the Council membership be composed ex officio of the Ministers of Foreign Affairs, Finance and National Economy and the President of the Central Bank (and possibly the Presidents of the Corporación Minera and Banco Minero). Other Bolivian Government agencies should be represented on the Council on an ad hoc basis whenever subjects of special interest to such agencies are under consideration.

2. The Council should be an advisory body making its recommendations to the President.

3. Its function would be to coordinate and supervise Bolivian internal and external financial policies, including policies in the fields of foreign exchange, budget and taxation, internal credit (including credit to government entidades), external credit, customs duties and charges, price fixation, etc.

4. This function would be carried out in two ways:

a) through proposals on general policies made by the Council to the President on its own initiative, and

b) through examination of specific problems which would be referred to it for consideration by its constituent or other government agencies (however, the Council should have the right to consider any issue falling within its general field of interest regardless of such referral).

5. The constituent agencies should be required to submit to the Council, in advance of action or decision:

a) any significant questions or issues of a specific nature arising in their respective jurisdictions, and

b) any departures from established policies or procedures.

They should withhold action on such problems until the Council has considered them and made its recommendations.

6. The constituent agencies should keep the Council fully informed of their activities and all agencies and entidades should provide the Council with such information or data as the Council may deem necessary for the discharge of its responsibilities.

7. The Bolivian Government, in agreement with the United States Embassy, should nominate to the Council two American advisers and an American Executive Director, whose salaries would be paid by the United States. The advisers would not have the right to vote but would have the right to participate in the Council’s discussions and to introduce for consideration of the Council proposals relating either to specific problems or general policies.

The Executive Director of the Council would be the senior member of the American Fiscal Mission and would serve as adviser to the Chairman. He would also have the responsibility of generally expediting the work of the Council, preparing agendas, providing (with the help of constituent agencies) such staff studies as may be feasible and acting as head of a small secretariat whose personnel would be provided by the Bolivian Government.

8. The Bolivian Government should appoint the two advisers to the Council as top level advisers to the Ministry of Finance and to the Ministry of National Economy, respectively.

1. Source: Department of State, Central Files, 824.10/9–655. Confidential. Transmitted to the Department in despatch 107 from La Paz, September 6.