14. Memorandum from Read (S/S) to
McGeorge Bundy, July 201
[Facsimile Page 1]
SUBJECT
In reference to Mr. Bromley
Smith’s oral request to Mr. Martin today, I am forwarding herewith a memorandum on
the situation in Bolivia.
D. Rowe (for)
Benjamin Reed
Executive Secretary
[Facsimile Page 2]
[Typeset Page 36]
Enclosure
SUBJECT
In our discussions with Ambassador Stephansky during his recent consultation the
developments reported in La Paz telegrams 93 and 99, dated July 19,
were foreseen. Our planning, based on the Ambassador’s conversations
with President Paz and the
recommendations resulting therefrom, has provided for financial
assistance, [less than 1 line not
declassified] and for equipment. The question of possible
need for United States personnel did not arise. Under our
contingency planning a special fund of $4,000,000 has been set up,
and in response to an emergency request received yesterday $325,000
has been authorized for two projects to assist in the mining
area.
The Ambassador’s analysis to date has not indicated that armed
intervention was likely to be required in the confrontation which we
have expected as a result of President Paz’ apparent decision to enforce labor discipline
in the mines. While we are not surprised that General Barrientos has
suggested that Special Forces might be needed to back up the
Bolivian Armed Forces (Embassy telegram 93) we should not take his
démarche too seriously until we have had a further report and
recommendation based on Ambassador Stephansky’s forthcoming conversation with President
Paz.
In the event President Paz
decides that he requires more than money and technical assistance we
would wish to consider his request in the multilateral framework of
the OAS. We would be most reluctant
to act unilaterally. With regard to a possible OAS response, we must recognize there
may be certain problems arising out of Bolivia’s withdrawal from the
Council, aside from those deriving from the inherent reluctance of
many members to “interfere” in the affairs of a neighboring
state.
We will be awaiting the Ambassador’s recommendations as well as
General O’Meara’s comments in response to Stephansky’s messages. It should
be noted that the Ambassador stopped in Panama last week for
consultation with the General.
