824.6363 ST 2/90: Telegram

The Secretary of State to the Minister in Bolivia (Norweb)

10. Your 17, April 1, 6 p.m. You are instructed to obtain an interview with the Bolivian Minister for Foreign Affairs and to inform [Page 282] him that, acting under instructions from your government, you take occasion informally to present the views set forth in the succeeding paragraph.

The Government of the United States regrets to see difficulties arise out of varied interpretations of contracts entered into between American-owned companies operating abroad and the governments of foreign countries. Without expressing an opinion as to the liability of the Standard Oil Company of Bolivia to pay the taxes in question, and without conceding that a failure on its part to pay such taxes as may have been due justified cancellation of the concession, the Government of the United States believes that a scrupulous regard for contractual engagements by all parties concerned therewith is essential for harmonious and mutually advantageous commercial relations. This Government expresses its earnest hope that the present difficulties between the Bolivian Government and the Standard Oil Company of Bolivia will be resolved in a manner equitable to all concerned, through friendly discussions carried on in an atmosphere conducive to a satisfactory adjustment.

For your information, Assistant Secretary Welles has discussed this situation twice with the Bolivian Minister here along the general lines set forth in the preceding paragraph.

Report briefly by telegram upon the results of your interview.

Hull