Editorial Note

In a Foreign Office memorandum, dated April 27, 1953, the Bolivian Government informed the Embassy at La Paz that COMIBOL had initiated direct negotiations with the Aramayo, Hochschild, and Patiño interests in order to reach agreement on the question of indemnification, and also that an ad referendum agreement concerning tin and tungsten already had been signed with the Patiño group. Under the provisions of the agreement with Patiño, the Bolivian Government agreed, inter alia, to pay compensation for a period of one year (while efforts were made to estimate the total value of the properties nationalized) from funds acquired by discounting a certain percentage of the value of tin sold to the United Kingdom or to an agency of the United States; the rate of discount to increase or decrease in relation to the price of tin. The Bolivian Government’s memorandum was transmitted to the Department of State under cover of despatch 696, from La Paz, dated April 28, 1953 (824.2544/4–2853).

On June 13, 1953, representatives of the Bolivian Government and the Patiño group signed at La Paz a “Definitive Agreement on Retentions”, by which the Bolivian Government agreed, inter alia, if the price of tin remained above 80 cents per pound, to pay certain sums on account until December 31, 1954, pending the signature of a final compensation agreement. A copy of the retention agreement was transmitted to the Department of State under cover of despatch 787, dated June 15, 1953 (824.2544/6–1553).