Office of the Historian

BL–9. Telegram from the Ambassador in Bolivia (Bonsal) to the Department of State1

La Paz, June 12, 1958, 10 a.m.

727. Personal for Rubottom or Snow Embtel 719.2

Most urgent I have reply REFTEL. Am seeing President tomorrow and am aware he will question me closely re urgent further balance of payments assistance which he believes Nixon and Waugh assured him would be forthcoming.3

Bonsal

Note: Mr. Conover (REA) notified 6/12/9:15 p.m. EMB/CWO

  1. Source: Department of State, Central Files, 824.10/6–1258. Confidential; Limit Distribution.↩
  2. The referenced telegram from La Paz, June 7, 1958, stated that the Ambassador believed, “Siles and his advisers correctly gained impression from Nixon and Waugh that U.S. was disposed help in balance of payments problem here resulting from world metals situation and that this help would be over and above contemplated FY 1958 and proposed FY 1959 programs.” (824.10/6-758)↩
  3. The Department replied in telegram 444, June 15, 1959, that Bonsal might tell Siles that his impression was correct, but instructed the Ambassador to, “make clear also that Bolivia must to maximum extent possible do its share in meeting the problem; such as but not limited to permitting reasonable exchange rate adjustments; improved administration of tax collections, including collection of counterpart; effective limitation on demand for wage increases not compensated for by increases in productivity; improved management of independent government enterprises such as COMIBOL Banco Minero, Caja; passage of legislation permitting release of excess workers. President and his advisors should be clearly informed U.S. not in position to underwrite unlimited demand foreign exchange rate and other deficiencies in Bolivian support of stabilization program.” (824.10/6–1558)↩