Foreign Relations of the United States, 1964–1968, Volume XXXI, South and Central America; Mexico

148. Memorandum Prepared for the Special Group¹

Washington, March 10, 1964.

SUBJECT

• Increase of Subsidy Provided to the Bolivian Government to support its Covert
• Action Projects designed to break the power of the National Revolutionary
• Movement of the left (MNRI) and the Communist Party of Bolivia (PCB)

REFERENCE

• Special Group action taken on 8 August 1963

1. Background: On 8 August 1963, the Special Group approved a request to provide a covert subsidy in the amount of [1 line of source text not declassified] to take the necessary covert actions to overcome the emergency situation which existed in Bolivia at that time and, once the situation normalized, to enable Paz to consolidate his control. In late December, the United States Ambassador and the CIA [less than 1 line of source text not declassified] requested an additional sum of [2 lines of source text not declassified] to wrest control of labor organizations away from Juan Lechin Oquendo, the MNRI, and the PCB. On 8 January 1964, the CIA [less than 1 line of source text not declassified] discussed the request for additional funds with Assistant Secretary Edwin W. Martin,² and it was mutually agreed that an increase in the subsidy was justified.³ The United States Ambassador was informed that Special Group approval would be requested at the earliest possible date.

2. Accomplishments: The first [less than 1 line of source text not declassified] provided [less than 1 line of source text not declassified] the following major accomplishments:

a. Eliminate Communist control over the National Campesino Federation.

b. Meet the necessary expenses in connection with the establishment of the new anti-left Confederation of Bolivian Workers (COB).

c. Provide support to democratic elements in an effort to unseat extremist leaders in the teachers, chauffeurs, and printers unions.

d. Break the power of the Communists over the Railroad Confederation and subsequent congresses of the flour, construction, and factory workers unions.

3. Recommendation: That the Special Group approve an increase [less than 1 line of source text not declassified] to the authorized subsidy being provided to the Bolivian Government. The requested funds are available within [less than 1 line of source text not declassified] authorized budget.⁴

1. Source: Department of State, INR/IL Historical Files, 5412 Special Group Meetings, S.G.114, March 12, 1964. Secret; Eyes Only.
2. As of January 3 Thomas Mann was Assistant Secretary of State for Inter-American Affairs.
3. A discussion of this plan is contained in a January 9 memorandum prepared by J.C. King, Chief of the Western Hemisphere Division in CIA (DDP). (Central Intelligence Agency, Job 80–01690R, Directorate of Operations, Latin America Division, WH/1/Bolivia, [file name not declassified])
4. The recommendation was endorsed by Assistant Secretary of State for Inter-American Affairs, Thomas C. Mann, on March 10. (Department of State, INR/IL Historical Files, 5412 Special Group Meetings) According to minutes of the March 12 meeting, the Special Group approved the recommendation. (Ibid., Bolivia, 1962–1980)