Foreign Relations of the United States: Diplomatic Papers,
1945, The American Republics, Volume IX
Efforts of the United States to counteract Axis activity in Bolivia
- [1. For previous documentation on efforts of the United States to
control Axis financial transactions in Bolivia, see
Foreign Relations, 1944, volume VII, pages
514 ff. In telegram 368, May 30, 1945, the Embassy at La Paz
was instructed that it might discreetly inform the Bolivian Government
that an Export-Import Bank Loan for replacing Axis firms was no longer
to be expected and that the desired result could be achieved instead by
expropriation of Axis properties with compensation to former owners
(740.24112 RP/5–2245). In despatch 1619, October 1, the Ambassador in
Bolivia (Thurston) reported that the “discussions regarding
expropriation and replacement of Axis firms in Bolivia proceeded with a
great deal of emphasis upon financing of the project”, and that the
Embassy “with some apparent success” had impressed the Minister of
National Economy, Jorge Zarco Kramer, with the view that “external aid
may not be required in view of the interest manifested by several
Bolivian firms” in purchasing Axis spearhead firms and also that, since
the Bolivian Government had previously “failed to proceed with
expropriation, the United States Government had been compelled to
withdraw its offer of financial assistance.” The Embassy undertook,
however, to convey to the Department of State a Bolivian request for
financial assistance whenever it became convinced “that local capital
could not be obtained and that the Bolivian Government cannot finance
the program from its funds” (740.24112 RP/10–145). Then in telegram
1034, October 10, 1945, 4 p.m., the Ambassador reported that the
“Bolivian Government now appears disposed to carry through Axis
replacement program” (740.24112A/10–1045). In despatch 1861, November
21, the Embassy further reported that proposals to use blocked Axis
funds for public works were “in no way interfering with the present
rapid pace being maintained in Bolivia at this moment in replacing Axis
spearhead firms” (824.5151/11–2145).
- 2. Informal representations were made to the Bolivian Government
during 1945 against allowing Major Elías Belmonte Pabón, who had been
Bolivian Military Attaché in Berlin, to return to Bolivia from Spain or
to continue to use a diplomatic passport. For further information
regarding Major Belmonte, see Department of State, Consultation Among the American Republics With Respect to the
Argentine Situation (Washington, Government Printing Office,
1946), pages 20–22.]