OCR Output

XeAel2e for November 19529.

SITUATION IN SPAWISH@SPRAKING SOUTH AMERICA.

A previous report has dealt with conditions now prevailing
in Argentina, with the future outlook for the country and with the
problem of Peronism, especially in its relationship to communism
and tb the United States.

On the basis of first-hand informations the far-reaching
and world-wide consequences could be shown that would follow the
triumph or the break-down of the Peronist front.

Since primarily the fate of Peron depends on his foreign
policy, it is of utmost importance to follow evolutions in other
Iatin-American countries, watching for signs of success or loss
of the Pernonist parties.

Viewed from that angle, most interesting reporters could
be obtained from our observers in the most important Spanish-speaking
countries of the Latin-American world.

Bolivia

Situated at an average of 4000 meter high in the mountains,
this country has a climate that only few Europeans or Amertcans can
stand. Its approximately four-million popukation is over 90% Indian,
a rather degenerated, small sized, very primitive and low races
Living conditions are difficult and depressing; responsibility for
it are given to the white men, the Americans and the Jews, There is
little difference, in the eyes of these Indians, among these three
groups of "profiteers, which they equally distrust.

Besides some cattle raising, the one and great resource of
the country is its mining wealth: copper, zine, lead, silver and abov
all tine Bolivia produces about 15% of the world's output in tin;
it is the greatest resource for this strategic material on the
American continent. The tin mines were controled mainly by three
powerful companies: Patino, Hochschild and Aramayo. Ownership was
held mostly by US, British, Swiss and Chilean investors. In this way
economic power - and consequently political influence = in the countr
were concentrated in the hands of foreign, Western interests.

The conditions changed with the bloody Revolution of last
April. Victor Paz Estenssoro and his "Movimiento Nacional Revolu¬
cionario” (MNR) came to powers Peron's candidate, backed and finance
by Argentina, Estenssoro introduced a nationalist-fascist begime,
opposed to the United States. One of his main goals was the
nationalization of the mines, Early in October, a governmental
mining corporation, the “Corporacion Minera Boliviana" was set upe
A few days later, the corporation took over the tin mines as well
as the copper mine of thé American Smelting and Refining Company.

As far as the latter was concerned, an agreement seems to have been
reached between Bolivia's Mining Minister, Juan Lechin, and the
American corporatione In the tin question however, the battle for
compensations and for the future status is still on. This is a most

U2.