291. Memorandum of a Conversation, Department of State, Washington, October 3, 19571
SUBJECT
- Bolivia: Settlement for Expropriation of Tin Mines; Oil Development
PARTICIPANTS
- The Secretary of State
- Sr. Don Manuel Barrau Pelaez, Foreign Minister of Bolivia
- Ambassador Victor Andrade of Bolivia
- Terry B. Sanders, Jr., Acting Director for South American Affairs
The Secretary expressed gratification over the Bolivian Government’s progress in its stabilization program and over the close cooperation between the United States and Bolivian Delegations to the United Nations. The Foreign Minister said his country is grateful for United States economic assistance.
The Secretary described the problem caused our Government by the continuing absence of a settlement between the Bolivian Government and the former tin mine owners. He pointed out that a [Page 616] reasonable offer to the former owners would be helpful. The Minister responded that his Government is working on the problem.
The Minister described briefly Bolivia’s petroleum development. He cited especially the failure of Brazil to help develop Bolivian oil under the 1938 agreement between the two countries and said that difficult negotiations are taking place between the two countries in an endeavor to implement the agreement. The Secretary mentioned Communist agitation as a factor retarding Brazil’s development of its own petroleum resources and thereby weakening the Brazilian economy.
- Source: Department of State, Central Files, 824.25/10–357. Official Use Only. Drafted by Sanders.↩