Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

740.24112 RP/42: Telegram

The Ambassador in Bolivia (Boal) to the Secretary of State

La Paz, January 29, 1944—10 a.m.
[Received 12:41 p.m.]

370. After Fletcher¹⁹ had provided officers of this Embassy with the information reported in the first substantive paragraph of this Embassy’s telegram No. 320, January 25, 6 p.m.,²⁰ he discussed the same subject with Egger²¹ in the belief that he was the best available person to explain a feasible replacement program to Villarroel.

Egger has now informed Ramsey²² that at Fletcher’s suggestion Villarroel has requested that Egger come to see him this morning, January 29. Egger will take this opportunity to present to Villarroel what appears to be a very workable replacement program and procedure he has drawn up involving no financial assistance from the United States. Egger believes that the Junta²³ will promulgate an expropriation decree sometime next week. The Department will recall that this Embassy has already reported that the Junta had drawn up and approved (but not promulgated) a decree providing for expropriation and replacement of Axis firms.²⁴

In addition to the information reported in this Embassy’s 320, January 25, 6 p.m., Fletcher subsequently informed the Embassy that Villarroel had seemed very earnest in his desire to expropriate Axis firms and that in addition to his concern about obtaining qualified technical assistance he was at a loss to know how to proceed without disturbing the distribution system in certain large areas of the country. Villarroel also expressed dissatisfaction with the present interventor system and inquired of Fletcher whether his company might be able to intervene as well as appraise Axis firms.

Boal

19. Edward Fletcher, British Manager of Price, Waterhouse Company.
20. Not printed; in it Mr. Fletcher reported that the head of the governing Junta, Maj. Gualberto Villarroel, desired technical assistance to operate or sell Axis assets (824.01/439).
21. Roland A. Egger, Manager of the Bolivian Development Corporation.
22. Presumably Henry C. Ramsey, Embassy staff member.
23. For correspondence on the problem of recognizing the Junta, see pp. 427 ff.
24. The decree denned these as commercial and industrial organizations that were controlled by or belonged to firms or subjects of countries with which Bolivia was at war.