824.504/71: Telegram
The Secretary of State to the Ambassador in Bolivia (Boal)
104. Your 65, January 13, 2 p.m. It is noted that a communication has been received from the Foreign Minister which suggests the possibility of a revision of mineral prices in view of a considerable increase in the cost of production. That this Government is fully conscious of the need of paying prices which are equitable to Bolivia and its economy and which will enable the payment of fair wages to labor and at the same time maximize production of metals and minerals needed in the war effort, is shown by the very substantial increases in prices paid to the Bolivian mining industry which were made effective during 1942. The Department feels that it is now apparent that other phases of the situation and possibilities other than price increases should be given major consideration. It therefore seems advisable not to consider the subject of price until a study has been made and conclusions reached on the various factors which relate to the cost of production. The Department also feels that such an approach is essential to the long-run welfare of the Bolivian economy.
You are authorized to discuss this orally with the Foreign Minister on the above basis.