286. Telegram From the Ambassador in Bolivia (Bonsal) to the Department of State1
423. I have just paid informal call on President Siles at his request. Eder was present. President reviewed current situation affecting meeting wage freeze and need for additional US aid along lines familiar to Department. He expressed serious concern communist infiltration and degree to which communist pressure forcing MNR labor leaders to take extreme positions. He stated COB conference end this month would represent critical time. He stressed need for wage adjustment which would restore real wages of labor to pre-stabilization levels. He indicated that while prices have indeed dropped on articles of prime necessity since stabilization, and great majority of people better off, 100,000 heads of families who had been deprived of subsidized store goods are considerably worse off than before stabilization and these elements are those which have political social influence.
President emphasized great opportunity for successful anti-communist policy by the US if aid to Bolivia could be supplemented. He referred to memorandum handed Ambassador Drew some weeks ago and gave impression he felt he had commitment of additional aid from Drew and Atwood.
In reply I was brief, friendly and non-committal. I referred to Washington situation surrounding FY 58 aid programs and to shortcomings on Bolivian side including particularly failure deposit proceeds grant food deliveries. I told President I would consider carefully what he had said and look forward early opportunity [Page 592] further discussion. He indicated Foreign Minister’s reports from Washington not particularly hopeful.
- Source: Department of State, Central Files, 824.10/5–257. Confidential.↩