UNCLASSIFIED
DEPARTMENT OF STATE Memorandum of Conversation
Date: March 15, 1949
Subject: Service on Bolivian Defaulted Dollar Bonds
Participants: Sr. Don Ricardo Martinez Vargas, Ambassador of Bolivia The Secretary Mr. King, NWC
Copies to: S/S ExImBank ARA Embassy La Paz OFD ED FN
The Ambassador of Bolivia, under instructions from his Government, called on March 15 to hand me a note in which the Government of Bolivia reiterated the determination of the Executive Branch to carry out an agreement reached with the Foreign Bondholders Protective Council in June, 1948, providing for resumption of service on Bolivia's defaulted dollar bonds.
The Ambassador explained that his Government wished to cooperate with the United States in all respects and was anxious to re-establish its credit position, not only in connection with current negotiations for specific Export-Import Bank credits, but as a matter of principle as well. The Agreement with the Foreign Bondholders Protective Council was made with this in mind, but, unfortunately, the Bolivian Congress had insufficient time in which to give its approval and recessed without taking the necessary action. The Ambassador stated that his Government, aware of its obligations, wished to record officially and formally its determination to resume service on the defaulted debt during 1949. He said that his Government considered this step to be of the utmost importance.
I replied that I too thought this action by the Bolivian Government to be significant and important and I expressed my appreciation of the renewed assurances received through him from the Government of Bolivia.
The Ambassador said he wished to issue a press release reporting delivery of this note concerning his country's defaulted debt. I gave my approval and said that in my next press conference, if asked about the message, I would state that this Government considered it a significant and important move by the Government of Bolivia.
ARA:NWC:SMKing:rms