277. Telegram From the Acting Secretary of State to the Embassy in Bolivia 1
157. IMF yesterday approved exchange and stabilization plans presented by its mission as well as standby financing of up to $7.5 million. No public announcement for present but GOB officials here informed and of course all official communications to GOB on IMF decision will be via Eder and Antezana.2
Treasury will negotiate exchange agreement for $5 million. ICA will provide $10 million for stabilization, principally in form purchase authorizations for GOB imports in public sector. These funds will come from regular $20 million aid appropriation.
As part stabilization arrangements Inter-Agency Committee3 has approved offer of Title I PL 480 program in approximate amount $6,750,000 including: 40,000 MT wheat, value $3 million; 15,000 MT flour, value $1.75 million; 900 MT edible oils, value $350,000; 1,000 MT lard, value $370,000. Balance of commodity composition still undetermined. This program supplements $9.7 million ICA funds committed and to be committed and is in lieu further ICA food imports.
You may now inform GOB of above arrangements as basis inquiry whether Congressional approval required PL 480 agreement and where most expeditious negotiate and sign.
FYI Eder still negotiating NY banks for additional $2.5 or $5 million, planning stabilization move Dec. 8. End FYI.
Will advise when public announcement stabilization package planned.
- Source: Department of State, Central Files, 824.10/11–3056. Confidential. Drafted by Briggs and initialed by Bernbaum.↩
- Franklin Antezana Paz, President of the Central Bank of Bolivia.↩
- The committee consisted of representatives from the Departments of Agriculture, the Treasury, and State, and IMF and ICA.↩