824.24/884a
The Secretary of State to the Ambassador in Bolivia (Boal)
Sir: Reference is made to the recent exchange of communications regarding the proposed modification of the Decentralization Plan and the simplification of export control procedures. (The results of the proposal were announced in Current Export Bulletin No. 124 of September 25). As the Embassy is aware, Bolivia was not included in the list of countries affected by the modification, in view of the reluctance on the part of the interested Bolivian authorities to accept any change in the existing procedures, and the Department is not pressing the matter further for the time being.
It is apparent from the Embassy’s reports that the attempt to remove restrictions on trade which are no longer considered necessary by this Government has not been sympathetically received in Bolivia, and the feeling exists that the Bolivian authorities are inclined to regard the Decentralization Plan as a permanent cure for the economic ills of the country as far as its import trade is concerned. The Department would not desire that this view be encouraged. Export controls are held to be a necessary evil born of the exigencies of war, and should be removed when and as conditions permit. The Department favors their simplification whenever possible, and hopes for their eventual abolition. Accordingly, no encouragement should be given to the view that American exports will indefinitely be subject to the restrictions currently in force.
[Page 146]It appears, therefore, that the Embassy is confronted with the task of weaning the Bolivian authorities away from the conviction that the specific controls afforded by the Decentralization Plan are vital to the economic well-being of the country. The Department realizes, of course, that if export controls had not been instituted by this Government, the Bolivians might have felt it necessary to establish a system of their own, and it is possible that as and when the restrictions imposed by this Government are relaxed, the Bolivians may find it desirable from their point of view to exercise greater control over imports through Bolivian legislation. This Government cannot, of course, intervene actively in the regulation of the internal economy of Bolivia, but it would be reluctant to concur in the suggestion that Alternative III be deferred until January 1, 1944, in order that the necessary substitute control measures be established. To resolve the question in this manner might not produce the intended relief, and the documentation and general restraint on the flow of materials from this country to Bolivia might conceivably be more onerous (and more permanent) than under the existing procedures of the Decentralization Plan.
The Department has no reason to doubt the efficacy of the monthly shipping programs as a medium of control over the flow of nonessential goods. It might be pointed out, moreover, that this Government desires to facilitate such trade as benefits the Bolivian economy, and considers the simplification of procedure a constructive first step in this direction.
The Department will welcome the Embassy’s comments for use in determining the future course of action.
Very truly yours,