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

BL–5. Telegram from the Ambassador in Bolivia (Bonsal) to the Department of State¹

La Paz, May 6, 1958, 10 p.m.

664. At meeting yesterday with Bolivian President, Vice President² and Ministers Foreign Affairs,³ Finance and Economy,⁴ Vice President Nixon promised his support for DLF loans to help tide Bolivia over difficulties created by reduced tin exports and prices.⁵ He praised Bolivian Government for its responsible policy of self-help through the stabilization program and stated that U.S. would continue its cooperation. He offered no hope on Siles request stockpiling purchases of tin.

Rubottom and Waugh agreed investigate DLF loan prospects for prompt action. Waugh stated would consult with U.S. director regarding attitude by IBRD toward Bolivia.

Rubottom stressed importance of prompt settlement compensation problem to improve atmosphere in U.S. Congress and business circles and stimulate increased investment. Nixon emphasized beneficial effect in Congress.

Barrau and Siles stated Bolivian Government preparing authorization to Andrade initiate negotiations in U.S. with Patino which largest firm and only one of three with U.S. shareholders.⁶ They stated Bolivian Government prepared from time of expropriation to compensate on basis book value of $21 million. Their good faith demonstrated by this and payment to companies thus far by $15 millions. They accused companies of acting in bad faith by insisting on different basis of valuation and in utilizing Bolivian Government payments to finance anti-Bolivian propaganda in U.S.

Rubottom recognized existence problems and re-emphasized importance settlement. Siles and Barrau reiterated intention have Andrade proceed without delay on basis definitive instructions.

Rubottom and Waugh request prompt consideration by DLF with cooperation various agencies working on Bolivian stabilization program of assist which can be made available promptly.⁷

Bonsal

1. Source: Department of State, Central Files, 724.5-MSP/5–658. Confidential.
2. Federico Alvarez Plata.
3. Manuel Barrau Pelaez.
4. Hugo Moreno Cordova.
5. Vice President Nixon was in Bolivia as part of a good-will tour of eight South American countries, April 27–May 15, 1958. For documentation concerning the trip, see Documents BL–5–9, 12.
6. Reference is to three major tin mining corporations, which were nationalized on October 31, 1952: Patino Mines & Enterprises Consolidated, Inc. (a Delaware corporation), Compagnie Aramayo de Mines en Bolivie (a Swiss corporation), and Mauricio Hochschild, Sociedad Anonima Minera e Industrial (a Chilean corporation).
7. A more detailed account of the meeting is contained in a memorandum of conversation at La Paz, dated May 5, 1958; a copy is in Rubottom Files, Lot 60 D 553, “Bolivia 1958.”