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United States Department of State / Foreign relations of the United States, 1948. The Western Hemisphere

Bolivia,   pp. 329-349 PDF (7.9 MB)

Page 329

                           OF BOLIVIA,'
Memorandum of Conversation, by the Chief of the Division of North
                  and West Coast Affairs (Espy)
                                    [WASHINGTON,] May 17, 1948.
Participants: Bolivian Am bassad:or, Sr. Don Ricardo Martinez
               Assistant Secretary of State, Norman Armour
               NWC, James Espy
  During his call on Mr. Armour this morning Ambassador Martinez
Vargas brought up the question of he delay in the reinitiation of
work on the Cochabamba-Santia Cruz Highway, suspended since De-
cember, 1947.2 The Ambassador said that five months had now passed
and that although negotiations have been held with t.he Export-
Import Bank since the beginning of the year for reorganization of
the highway project, no final arrangements had yet been made to get
the construction of the road again underway. In the meantime the
Bolivian Development Corporation with the limited funds at its dis-
posal was trying to keep a minimum of work going on. However, its
funds would soon be exhausted and unless arrangements were made
for repair of the equipment, final engineering plans and a new con-
tract, financed by further credits from the Export-Import Bank, the
whole project would come to a dead stop. In that event, it would be
very costly to the Corporation because of the large discharge payments
which the Corporation would have to make to the highway laborers.
Besides this consideration there was, the Ambassador stated, much dis-
satisfaction in his country over the length of time it was taking to
build the highway. In this latter connection he referred to the
Brazilian and Argentine efforts to push through railroads from the
  For previous documentation on technical aid by the United States for the
economic development of Bolivia, see Foreign Relations, 1947, vol, viiI,
pp. 342 ff.
  For documentation on the cancellation of the highway construction contract
between .the Bolivian Development Corporation (an agency of the Bolivian
ernment) and the McGraw-Warren Company, see despatch 1959 of December 19,
1947 and other documentation on this subject, ibid., pp. 359-363.

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