153. Memorandum From Robert Pastor of the National Security Council Staff to the Deputy Assistant to the President for National Security Affairs (Aaron)1

SUBJECT

  • Your Request About Assistance to the New Bolivian Government (C)2

On Saturday3 Vance sent a congratulatory message to President Gueiler on her election as interim President, assuring her “that President Carter and I look forward to cooperating with you and your people as you begin the task of healing the wounds in your society; and conducting it further on the democratic road.” (C)

Prior to the Natusch coup, PL–480 and development assistance was set at a total of $49.6 million. State will try to get that restored. State is also working on an increase in the total package in the range of $5–10 million by raising the Title III PL–480 amounts. (C)

The only problem area is Ambassador Boeker’s request for a $10 million CCC credit.4 We had already turned down a Bolivian request for CCC credits prior to the coup, and because of the full commitment of CCC funds we would have to reprogram from another country. This will be on the agenda of tomorrow’s DCC meeting. (C)

As regards FMS, State reduced the Bolivian level for FY 80 from $5.5 million to $1 million after the coup. They are now looking for ways to increase that. My own view is that we should work to restore [Page 469] the assistance we cut, but not consider increases until Bolivia does complete free elections. (C)

  1. Source: Carter Library, National Security Affairs, Brzezinski Material, Country File, Bolivia, 1/77-1/81. Confidential. Sent for information. A copy was sent to Owen. At the bottom of the memorandum, an unknown hand wrote “ok” and a stamped notation indicated that Aaron saw the memorandum on November 19.
  2. The Bolivian Congress, after having reached an agreement with Natusch that he would resign, elected Gueiler to the presidency on November 16. A November 17 memorandum summarized recent cable traffic from Bolivia, including Boeker’s call for “prompt and generous” U.S. aid. In the margin next to that paragraph, Aaron wrote, “Pastor get on it” and initialed the memorandum. (Ibid.)
  3. Telegram 299180 to La Paz, November 17. (National Archives, RG 59, Central Foreign Policy File, D790529-0566)
  4. In telegram 9935 from La Paz, November 16, the Embassy recommended: “The U.S. should respond promptly and generously to the new government’s plight. In significant part we can do this by reviving all our suspended economic aid programs, some with an amended focus, and offering immediate help on wheat imports. In particular I suggest the following: Offering an immediate $10 million CCC credit, as the fastest way to try to get some wheat here by mid-January.” (National Archives, RG 59, Central Foreign Policy File, D790528-0371)