Foreign Relations of the United States, 1958–1960, Volume V, Microfiche Supplement, American Republics

BL–35. Telegram from the Acting Secretary of State to the Embassy in Bolivia¹

Washington, November 7, 1960, 8:45 p.m.

Embtel 216²

DEPT recognizes that GOB may in short time come under irresistible pressure of leftist and Communist groups to open negotiations with USSR on tin smelter, concentration plants, etc. and that Paz, despite orientation to West, may feel compelled to proceed accordingly. (Soviets are understood to have asked that offer be taken up through Bolivian Embassy which they insist should be established Moscow.)³

To relieve pressure on Paz and buy time to implement our immediate and long range plans for assistance to COMIBOL, you should subject to your approval, recommend that Paz consider the following course of action (1) under no circumstances should he permit the establishment of a Soviet diplomatic mission in La Paz since it would be used primarily in an effort to subvert Bolivia and to replace Paz by someone amenable to Soviet direction; (2) if irrestible pressure develops, Bolivia offer to send a mission to Moscow which would be strictly commercial in nature to discuss the Soviet offer; and (3) this mission determine what conditions are attached to the Soviet offer and whether the Soviets are genuinely prepared to provide equipment and convertible currency for loans required to meet attendant Bolivian local currency requirements. Mission could well announce in advance that it wants to determine whether Soviets offer aid without any strings attached as frequently claimed. This play would prevent USSR from exercising pressure within Bolivia and would buy time until U.S. position firm. Bolivians would be able to evaluate full implications Soviet offer and consider pitfalls establishment of Soviet Embassy and presence of Soviet technicians and political agent would pose for Bolivian independence and duration Paz administration.

Dillon
Acting

1. Source: Department of State, Central Files, 724.00/10–2660. Secret. Drafted by Robert W. Weise, Jr., Officer in Charge of Bolivian Affairs, and signed by Milton Barall, Deputy Assistant Secretary of State for Inter-American Affairs.
2. Telegram 216 from La Paz, October 26, 1960, reported that Paz had stated that the Government was in grave difficulties and that he was in need of an immediate loan of $10 million. (724.00/10–2660)
3. Additional documentation concerning Bolivian-Soviet relations is in decimal files 824.25 and 824.062, and also in ARA/WST Files, Lot 63 D 61, “Bolivia-U.S.S.R.”