BL–2. Memorandum from the Assistant Secretary of State for Inter-American Affairs (Rubottom) to the Deputy Under Secretary of State for Economic Affairs (Dillon)1
SUBJECT
- Presidential Escort Battalion—Bolivia
Background:
The revolution of 1952 in Bolivia caused far-reaching economic and social dislocations, including the creation of armed workers’ militias. At the same time, the country’s regular army was demoralized and virtually disbanded. Since 1954, the United States Government has been providing economic assistance to Bolivia, initially in order to prevent a serious economic and political upheaval there which might have led to the formation of a pro-communist or communist government, and subsequently to try to help Bolivia to remedy the serious economic and social dislocations which resulted from the revolution.2 The United States had also used its influence in the attempt to strengthen the moderate elements in Bolivia and to weaken correspondingly the left wing extremists. These efforts showed their most significant results in late 1956, when the newly elected Bolivian administration put into effect with U.S. counsel and support an economic stabilization program.
Discussion:
At the end of the first year, the stabilization program has achieved considerable success and the position of the moderate elements in the Bolivian Government has been strengthened at the expense of the extreme left wing. Nevertheless, the lack of effective security forces at the Government’s disposal exposes it constantly to the latent threat of the armed irregular militia, which is subject to influence and in some cases control by extremist elements. Both President Siles and his Minister of Defense3 have requested United States military assistance to confront this basic weakness. Consequently, the accompanying Memorandum to President Eisenhower4 recommends that the President [Typeset Page 152] make a determination under Section 401 (a) of the Mutual Security Act of 1954,5 as amended, that it is important to the security of the United States that up to $417,000 of Military Assistance funds, available under Section 103 (a) of the Act, be used for furnishing equipment and training for a Presidential Escort Battalion in Bolivia and the supply of equipment sufficient to establish two Bolivian army training centers without regard to the requirements of Title I of the Act. In a recent revision of the Overseas Internal Security Paper on Bolivia, the OCB Working Group on Latin America has approved this program one of its recommended courses of action.6
[Facsimile Page 2]The enclosed Memorandum to the President explains in greater detail the basic situation and the type and extent of assistance recommended.
Recommendation:
That you sign the memorandum for the President and the copy of the memorandum from the President indicating that the Department has recommended this program.7
- Source: Department of State, Central Files, 724.5-MSP/1–1758. Secret. Drafted by William T. Briggs of the Office of South American Affairs.↩
- Documentation relating to the revolution of 1952 and to U.S. relations with the revolutionary government is printed in Foreign Relations, 1952–1954, vol. IV, The American Republics, Documents 134–173.↩
- Julio Prado Montano.↩
- Not printed.↩
- P.L. 665 for text, see 68 Stat 832.↩
- Reference is to the Operations Coordinating Board paper, “Overseas Internal Security Program Annexes to Latin American Operations Plan for: Bolivia, Brazil, Chile and Guatemala,” January 17, 1955, which is located in OCB files, Lot 62 D 43, “Latin America 1958.”↩
- On March 6, 1958, the Department authorized the Ambassador in Bolivia, Philip W. Bonsal, to negotiate a military assistance agreement along the lines described here. (724.5–MSP/2–1258) The resulting military assistance agreement was effected by an exchange of notes at La Paz, March 21 and April 22, 1958, and entered into force on April 22. For text of the Agreement, see United States Treaties and Other International Agreements (UST), vol. 9, p. 953.↩