268. Notes of the Secretary of State’s Staff Meeting, Department of State, Washington, August 31, 1956, 9:15 a.m.1

[Here follow a list of those present (18), an unrelated intelligence briefing, and discussion of a rumor regarding a microphone in the French Embassy.]

3. Economic Situation in Bolivia—Mr. Holland reported at some length on the soaring inflationary situation in Bolivia which could become critical within the next 4 or 5 months unless steps are taken within the next 10 days by this Government to provide a stabilization fund and give full backing to Mr. George Eder, a former IT&T official who is now serving on the ICA payroll as an Advisor to the Bolivian Government. The Secretary agreed on the desirability for close cooperation among the many interested Government agencies and added that, if the Bolivians are willing to accept our advice, [Page 553] differences among agencies of this Government must not be the cause of any delay. In cases of this sort, he observed, inaction is often worse than the least desirable program supported by any agency.

Action: ARA, in close coordination with E and other interested agencies of this Government, to prepare promptly a program to combat the inflationary tendencies which threaten Bolivia’s political stability.

[Here follows discussion of the Suez Canal situation.]

E. V. McAuliffe
  1. Source: Department of State, Secretary’s Staff Meetings: Lot 63 D 75. Secret. Prepared by Eugene V. McAuliffe, Chief of the Reports and Operations Staff of the Executive Secretariat.