740.00112A European War 1939/29925a: Telegram
The Secretary of State to the Ambassador in Bolivia (Boal)
607. From Acheson.34 Your 780, April 22, 6 p.m.35 We are not specifically aware of Ramsey’s proposed economic defense board and question advisability of urging establishment at this time of any Bolivian Government agency which would participate in replacement program (other than subsidiary of Development Corporation). Such agency might arrogate to itself the job of replacing Proclaimed List firms and prevent establishment of proper functioning of subsidiary, which we believe indispensable to effective replacement program. However, you are authorized to recommend to Bolivian authorities that some Bolivian Government agency, separate from Banco Central and Ministry of Finance, be established to act as nucleus for planning replacement program and with full authority to dispose of applications for foreign exchange by Proclaimed List firms during interim period provided you are satisfied that (1) there is real need for such [Page 594] agency and agency will effectively limit sales of foreign exchange to essential imports; (2) agency will be assigned competent staff and (3) agency will not endanger contemplated position of subsidiary in replacement program.
We do not believe it would serve any useful purpose to approach Bolivian Ambassador here. Previous talks with him have been on basis of prohibition against all sales of foreign exchange to Proclaimed List firms. Now we recognize need for temporary exceptions and, since he is probably not acquainted with recent developments, talking to him along lines you suggest would only confuse situation. Final decision must be made in La Paz and you are in best position to obtain desired result. [Acheson.]