275. Telegram From the Ambassador in Bolivia (Drew) to the Department of State1

111. In audience with President Siles afternoon October 18 I conveyed substance Department telegram 112.2 He minimized seriousness left versus right conflict commenting it largely clash of personalities. He declined to be drawn out on resignations right wing Cabinet members reported by Barrau and in general was somewhat less than communicative. No information on reasons for or status of resignations which still not known to public, yet available.

. . . . . . .

He expressed restrained approval of progress in stabilization program and optimism of left wing support on grounds “they had no alternative”.

He denied government intends distribute arms to militia.

[Page 576]

President’s address to nation evening October 17 satisfactory our point of view. Will be reported fully by mail.3

Drew
  1. Source: Department of State, Central Files, 611.24/10–1856. Secret.
  2. Supra.
  3. Transmitted in despatch 182 from La Paz, October 20, were six copies of the complete text as published in El Diario, October 18. Gilmore also summarized the speech. Highlights included Siles’ statement that the government faced two fundamental problems: defense against simultaneous attacks by the displaced reactionaries and extremist (Communists) and control of inflation. Victory for the reactionaries would mean the loss of the gains of the revolution; victory for the Communists would leave Bolivia isolated and defenseless. To control inflation, Bolivia must establish conditions permitting the continuation of American aid, that is, stabilization. Siles also asserted his position as spokesman for the entire party, saying that the Executive branch could not function if the Parliament did not support its stabilization program, and that the labor movement must “not extend its power into other spheres of activity which have their own independent political, economic and social functions” such as the Executive or Judicial branch. (Department of State, Central Files, 724.11/10–2056)