283. Telegram From the Ambassador in Bolivia (Drew) to the Department of State1
220. At meeting with President Siles afternoon December 21 conveyed substance Department telegram 179.2 He was in relaxed confident mood and reasonably reassuring re attitude he expected Lechin take at COB meeting evening same day but in my presence sent for Press Under Secretary Tamayo and MNR Secretary Cuadros Quiroga to transmit my sentiments to Lechin. He outlined long talks held same day with leaders key syndicates including construction, factory, railway, etc. During which he explained at length US interest in success stabilization program.
Conversation interrupted when Siles proceeded to palace balcony to greet last contingent volunteer chauffeurs convoy returning from Mollendo loaded with American flour. This dramatic gesture while largely psychological very effective in bolstering public morale.
President referred to disorders in principal nationalized mines which now appear calm. He is sending for group from Catavi to discuss stabilization.
We agreed public acceptance stabilization greatly improved since our midnight meeting December 18.
President enthusiastic about our intention talk to Chavez in New York. He described Chavez as brilliant impractical theorist who has been a severe critic stabilization. I urge we continue as appropriate high-level informal talks with Chavez in hopes bring him into line.
Re cabinet crisis President indicated would reject resignation Minister Agriculture and Party Secretary Cuadros whom he referred to as his right arm although other minor changes including Minister Health3 may be necessary. He belittled proposed interpolation of [Page 588] left-wing Deputies saying he had summoned them for curtain lecture asking why signature of FSB leaders Bilbao and Unzaga not included. Congress recessing December 22 to January 15 approved 90-day extension state of siege.
President expressed deep appreciation for our support as conveyed by me in presence of Lechin December 18 meeting implying it was key factor enabling him weather crisis and remain in office.
Despite probable critical discussions stabilization at COB meetings course next few days I am reasonably confident we are over the hump even though certain adjustments such as suggested by Department may prove necessary.