811.20 Defense (M) Bolivia/476: Airgram

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

A–108. Reference Department’s telegram No. 710, October 6, 1942, 4 p.m. As indicated in the Embassy’s telegram 898, October 6, 1942, 4 [Page 557] p.m.,84 the reluctance of the Bolivian Minister of Economy to hasten the negotiation of a quinine contract has been due to the very unstable political situation and the unusual pressure on him and his office, since he is continuing to act temporarily as Minister of Finance during the latter’s illness. In view of the urgency of this matter, however, as indicated in the Department’s telegram under reference, I again emphasized today to the Minister of National Economy the importance which my Government attributes to the conclusion of a contract which will facilitate the exportation of Bolivian quinine to the United States. The Minister of Economy said that he would do everything possible to give the Embassy on Wednesday, October 14, the counter-proposals with respect to the provisions of the proposed contract, which the Embassy has been hoping to obtain from him for some time. It is understood that the principal quinine producers and the quinine factory in La Paz have agreed among themselves to counter-proposals which they have given to the Minister of Economy for his use in presenting counter-proposals to the Embassy.

The Minister of Economy commented this morning that he had had an opportunity to discuss the proposed quinine agreement with national Deputies from the quinine producing districts, and that he had the definite impression that there would probably not be much difficulty in obtaining the approval of the Congress to the agreement. The Minister of Economy commented further that if for any reason the agreement could not be acted on by this Congress prior to termination of the present session (which will probably close before the end of the year), the agreement could be put immediately into effect by decree and could be presented to the next Congress for approval.

With respect to the prompt purchase of available cinchona bark prior to the conclusion of the agreement, it would be possible for Priester to obtain a considerable quantity if he were authorized to pay the prices indicated in the Embassy’s Airgram No. A–98, October 2, 1942, 4:45 p.m.84 Priester has already been able to obtain approximately 14 tons of cinchona bark through the application of his unusual experiences in such purchasing.

If the Department has under preparation any new or revised provisions for the proposed quinine agreement which would provide for the processing of all Bolivian cinchona bark in La Paz, it would be appreciated if they could be sent promptly to the Embassy for consideration in the imminent discussions with the Minister of Economy.

Boal
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