811.20 Defense (M) Bolivia/1240b: Telegram

The Secretary of State to the Ambassador in Bolivia (Boal)

1023. Department is concerned over recurring evidences of laxity in attitude taken by Bolivian Government or certain of its officials towards terms of Rubber Agreement with this Government. After careful consideration of proposed Medina transaction as outlined in letters from Munro and Hall and as referred to in Ambassador’s [Page 568] letters to Messrs. Acheson and Duggan, it appears to Department that Bolivian Government contemplates permitting violation of or in any event unjustified exception to terms of Rubber Agreement. We feel that it would be unwise to permit any such transaction and that no particular exceptions to Rubber Agreement can be permitted from time to time if we hope to maintain its general effectiveness. Embassy should discuss with Rubber Development necessity of any steps required to prevent violation of agreement by Bolivian Government or by private individuals with permission of Government.

With respect to airgram on this subject being sent concurrently by Rubber Development to Hall and Munro,90 representations to Bolivian Government on this subject should, of course, be handled by Embassy.

Hull
  1. No. A–672, August 13, 1943, not printed.