BL–34. Telegram from the Acting Secretary of State to the Embassy in Bolivia1
76. EMBTEL 128.2
Department appreciates analysis and recommendations REFTEL and, as interim reply, tends strongly favour German financing and management contract for COMIBOL over American. Department generally interested in encouraging other capital exporting nations to aid underdeveloped countries. Believes specifically that German governmental sources might be less subject than American to limitations that could affect the ability to supply capital to COMIBOL and that German management personnel attempting herculean task rationalize COMIBOL would be less subject than American to obstructionist tactics by political groups and Communist-influenced miners.
Salzgitter is sales and distribution subsidiary of A. G. fur Berg und Huetten Betriebe capitalized at 400,000,000 DM which is holding company wholly owned by Federal German Government. Department querying Embassy Bonn re Salzgitter intentions and capacity perform satisfactorily.
- Source: Department of State, Central Files, 824.10/9–1060. Secret. Drafted and signed by Coerr.↩
- Telegram 128 from La Paz, September 10, 1960, reported a conversation with President Paz who stated that he had received a concrete offer from the German firm, Salzgitter, for the necessary retooling and expansion of Comibol, as well as credit for technical and managerial assistance. Paz stated, however, that the cost would be higher than if the replacement machinery could be obtained from the U.S. and asked the Ambassador to inquire about the prospects for obtaining U.S. credit for this. (824.10/9-1060)↩