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

BL–36. Telegram from the Ambassador in Bolivia (Strom) to the Department of State¹

La Paz, November 7, 1960, 11 a.m.

229. Re my telegrams 224,² 226³ and EMBDES 243,⁴ pouched fourth.

I agreed President Paz analysis political situation (EMBDES 237,⁵ 243). Unable measure what ultimate dimensions crisis will be but after considering all evidence with great care I have concluded Paz government will be in serious danger very soon, considering its near bankruptcy. While foreign exchange reserves of Central Bank are as large as they have been in more than year, they are by no means adequate enable Paz weather crisis. Crisis comes at time when internal and external leftist pressures are steadily increasing in part as direct result Soviet and Czech offers assistance which have been most astutely timed. [text not declassified].

We decided in July we should have full-scale Bolivian policy review November or December. This is most urgently required now. I therefore request consultation orders.

I agreed some time ago speak graduation American School Oruro November 12 and planned visit Cochabamba, Tarija afterwards.

Should appreciate Department’s decision immediately in case necessary name substitute for Oruro and cancel Cochabamba and Tarija.

If Department agrees, wish leave La Paz November 12.⁶ If I am ordered consultation hope ICA will give Hill orders also.

Strom

1. Source: Department of State, Central Files, 724.00/11–760. Secret.
2. In telegram 224 from La Paz, October 28, 1960, Strom reported that while there was great pressure on the Paz Government, he was not yet prepared to recommend massive, nor indeed any, increase in the U.S. cash grant. (724.00/11-760)
3. Telegram 226 from La Paz, November 2, 1960, reported that Strom was leaving November 11, to speak at the Colegio Anglo-Americano Oruro, which would furnish an excellent occasion to make a statement about how the U.S. intended to aid in the rehabilitation of Comibol. (724.00/11-260)
4. Desp. 243 from La Paz, November 4, 1960, reported a conversation with Paz, in which the Ambassador told the President that he was very worried about the current political situation, which Paz had been describing to Strom in conversations during the past two weeks, and which was then reaching a crisis point. (724.11/11-460)
5. Desp. 237 from La Paz, October 28, 1960, transmitted Paz’s Aide-Memoire of October 27, 1960, concerning the imminence of a political and economic crisis in Bolivia and requesting an immediate credit of $10 million. (724.00/10-2860)
6. The Department responded in tel. 145, November 8, 1960 as follows: “For present, we believe critical situation requires your presence La Paz. Meanwhile we giving urgent attention measures hopefully designed alleviate situation.” (724.00/11–760)