MEETING WITH AMBASSADOR SANCHEZ DE LOZADA - 1971/06/15

• Document Type: SPECIALCOLLECTION
• Collection: Argentina Declassification Project - The "Dirty War" (1976-83)
• Document Number (FOIA) /ESDN (CREST): 06626609
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: April 3, 2019
• Document Release Date: April 12, 2019
• Publication Date: June 15, 1971

41137
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DEPARTMENT OF STATE TELEGRAM
3.5(c)
MFG. 117./0
CONFIDENTIAL' HCG4 17
PAGE 01 LA PAZ 03228 152200Z
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ACTION ARA-20
INFO OCT -01 AID-28 E-15 NSC-10 RSC-0i CIEP-0 1 SAL-02 SS-20
STR -08 CI AE-00 COM-08 FRB-02 INR-08 NSAE-00 TRSE-00
XMB-06 OPIC-12 TRSY-1 1 INT-06 L-04 PRS-01 RSR -0 1 /165 W
119664
,____(....122._dgyci-6144-7 . �
FM AMEMBASSY LA PAZ (
TO SECSTATE WASHDC 4022
CONFIDENT I ALrLAPAZ 3228'
-7
PASS OPIC
(EF: STATE 10479-0
SUBJECT: MEETING WITH AMBASSADOR SANCHEZ DE LOZADA
CI: AMBASSADOR SANCHEZ DE LOZADA CALLED ON ME THIS MORNING/. WE
WILL ALSO BE HAVING LUNCH TOMORROW AND PROBABLY ANOTHER
CONVERSATION LATE THURSDAY OR FRIDAY BEFORE HE DEPARTS. IN
THE CO UR SE OF THE CO NVER SAT ION THE FOLL OWING INTEREST I NG
THINGS EMERGED:
(A) AS PREDICTED ST TE 104 795 ORDERS WERE ISSUED YESTERDAY
TO CHARGE SAENZ TO SIGN THE REQUIRED DOCUMENT REGARDING THE GAS
PIPELINE LOAN.
(B) THE AMBASSADOR FINDS THE POLITICAL SITUATION IN BOLIVIA
"GREATLY DETERIORATED" IN THE LAST SIX MONTHS. HE FEELS THE
PRESIDENT HAS VERY LITTLE POWER AND VERY FEW OPTIONS. HE FINDS
THE COUNTRY, AND ESPECIALLY THE MIDDLE CLASS, "EXTREMELY
DEMORALIZED". HE BELIEVES SOME KIND OF CRISIS IS SHAPING UP
WITHIN THE NEXT TWO WEEKS AND WONDERS HOW GOVERNMENT IS
GOING TO DEAL WITH THE POPULAR ASSEMBLY. FTRESIDENT TORRES
APPEARED T.0_._HIM TO BE "GRAY AND HAGGARD"--.1T HERE IS A DEBATE IN
THE CABINET ABOUT RELATIONS WITH THE US. SOME, LED BY MACHICADO
AND LUNA , ARE IN FAVOR OF POSITIVE ACT ION TO STRENGTHEN US/
BOLIVIAN RELATIONS; OTHERS, UNNAMED, ARE OPPOSED. SOME CABINET
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OFFICERS (HE LATER SAID TWO) ARE ACCUSING THE MILGRP OF
POLITICAL PLOTTING.
(C) SANCHEZ DE LOZADA WAS NOT AWARE THAT THE COCHABAMBA BNC
HAD BEEN RETURNED YESTERDAY. HE DID SAY, HOWEVER, THAT THE
GOVERNMENT INTENDS TO ISSUE A DECREE ESTABLISHING REGULATIONS FOR
THE GOVERNING OF ALL SUCH CENTERS OF WHATEVER NATIONALITY
ON AN EQUAL BASIS. HE THOUGHT THIS A GOOD THING ALTHOUGH HE
DID NOT KNOW THE TERMS OF THE DECREE. PRESUMABLY, THIS REFERS
TO THE PRESIDENT'S REMARKS TO ME IN OUR LAST MEETING ABOUT
IDENTICAL RULES FOR ALL CENTERS.
(D) I TOLD THE AMBASSADOR I THOUGHT THE BNC RETURN IS A
VERY FAVORABLE DEVELOPMENT AND ALSO EMPHASIZED THE IMPORTANCE
OF PROCEEDING PROMPTLY WITH NEGOTIATIONS ttITH IMPC, I
STRESSED TO HIM, AS I HAVE TO THE PRESIDENT AND THE FONMINISTER,
THE FACT THAT ALMOST SIX MONTHS HAVE PASSED WITHOUT ANY
POSITIVE STEPS TOWARD COMPENSATION HAVING BEEN TAKEN.
SANCHEZ DE LOZADA EXPRESSED THE OPINTION THAT SERIOUS NEGOTIATIONS
COULD NOT BE UNDERTAKEN SO LONG AS MENDEZ PEREIRA WAS MINISTER
OF MINES. WHETHER OR NOT THIS IS TRUE, IT IS TO BE REMEMBERED
THAT SANCHEZ DE LOZ DA AND MENDEZ PEREIRA ARE LONG-STANDING,
BITTER ENEMIES. WITH REGARD TO THE MATILDE EXPROPRIATION,
THE AMBASSADOR SAID HE KNEW FOR A FACT THAT PHILLIPS
BROTHERS, AT LEAST, HAD NO INTENTION OF ENTERING INTO ANY
SERIOUS NEGOTIATIONS WITH BOLIVIA. HE SAID PHILLIPS BROTHERS
INTENDS ONLY TO GO THROUGH THE MOTIONS WHILE RELYING ON OPIC
INSURANCE FOR COMPENSATION. THE AMBASSADOR SAID THAT
COMIBOL IS IN A TERRIBLE SITUATION AND BADLY NEEDS RE-
ORGANIZATION AND REFINANCING. A PROBLEM CREATED BY THE MATILDE
PAYROLLS ARE PAID THREE TIMES AS MUCH AS THOSE WORKING FOR
COMIBOL AND DOING THE SAME OR SIMILAR JOBS.
2. � THE AMBASSADOR SAID THAT THE PEOPLE CLOSEST TO THE PRESIDENT
ARE HIS PRIVATE SECRETARY, VALLENTSITS, ,ND MINISTER-
SECRETARY NEL ARU AND THAT BOTH ARE EVIL INFLUENCES. HE
SAID HIS RELATIONS WITH THE FONMINISTRY, ESPECIALLY WITH
SUB-SECRETARY LAREDO ARE BAD AS ALWAYS 9UT HE HAS NOT YET
MADE UP HIS MIND AS TO WHERE FONMINISTER TABORGA STANDS.
LOZADA SAID . HE TOLD TABORGA THAT THE GOVERNMENT MUST DO
SOMETHING TO IMPROVE RELATIONS WITH THE US. HE SAID HIS OWN
"HOOFER RATING" WAS. VERY HIGH AFTER THE TIN DEnT.SION BUT
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HAD BEEN VIRTUALLY DESTROYED BY SUBSEQUENT EVENTS IN BOLIVIA,
HE SAID AMERICAN CONSERVATIVES HAD BEEN AL IENATED BY THE
NATIONALIZATIONS AND THAT AMERICAN LIBERALS HAD BEEN ALIENATED
BY THE PC OUSTER WHICH WAS A SYMBOL OF THE KENNEDY SPIRIT.
HE SAID THE ONLY FRIENDS BOLIVIA HAS LEFT IN THE US ARE THE
PEOPLE WORKING WITH BOLIVIAN AFFAIRS IN THE STATE DEPARTMENT.
3. I BROUGHT TO THE AMBASSADOR � S ATTENTION AN EDITORIAL
IN TODAY'S EL D IAR TO SEVERELY ATTACKING HIM FOR DELAYING THE
SIGNATURE OF AGREEMENTS NECESSARY FOR CONSTRUCTION OF THE GAS
PIPELINE ON THE GROUNDS THAT THE REQUIRED ARGENTINE GUARANTIES
ARE ONEROUS. THE EXTREME LEFTIST WR ITER OF THIS EDITORIAL,
DANIEL R ODR IGUEZ , TOOK THE LINE THAT THE AMBASSADOR IS WORKING
CONTRARY TO THE NATIONAL INTEREST BY DELAYING PROGRESS ON THE
PIPELINE AGREEMENTS AND RAISING QUESTION AS TO HIS CAPACITY TO
REPRESENT THE REVOLUTIONARY GOVERNMENT ADEQUATELY IN WASHINGTON
HE POINTED OUT THAT THE ORIGINAL ARGENTINE GUARANTY WAS
PR OPSOED BY NO LESS A REVOLUTIONARY CHARACTER THAN EX-MINES
MINISTER MAR CELO QUIROGA SANTA CRUZ; THEREFORE, THEY
COULD NOT BE HUMILAT I NG TO THE NATION.
GP-3
SIRACUSA
'CONFIDENT IAL
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: .
By George A. Lawton
, speq4i.N7*.:,*4!0_0(prisiist
LA PAZ, Bolivia, Oct.
The recently
of
' l,i,vi,e,. s.G...,,,e-h.,
n Jose
lCrres,27h;a4k.m.g
. mem-
bers 0f his e;6: .
have.
been quietly expelled from
Peru, it :ii'indined:iere,
day.
The - Peruvian - government
didi not. exPlettl.the,actlit . '..�:.-
, Torres, . whose '�igt*e ''.*.4
to-kilo Aug., .. t- - .. , _ ,, . .
-' 2i .was :granted
il'''''''-'- essy'''' 'h'e' :.11i, -an'se::47,-Nyiiilvtan :E111:,
45441714 ' " ' - within -two
i';!..:,:iitsekti al'ittiilv;elisti'lh,y,fa4Tia'e,o'if; 1.,,ti,,t,
'der: less formal ''6.6editione,;'
411aS e-inilitant Bolivian 'ahoy
iw- tb
6acNr:-::4nd'-'1ir401-e..,et...emot2 the
' iiima "Peoples Assembly,"
Ju
- /3137,'7
4Buo, 14:ll4e:t' :4' elitilhin hasnT6unqnii'drri().6.10r:':fig-
tiLe - in Bolivian labor *cies
' in 'Bolivia's'.,-Ii52 revantiell,
'. � whent eh s' ' 4:: ' was.; ' ' dallniiIii- f'i''..''''ii-.:terri'asatlEot:ifgti.el:n mines
under
--ii.44.0i51.,!7ft.if- 61. vice
president
nieilLH:,-
llY'ech paia.
- ',fled first to
gua! ' th 410 test .-
e. -,..n.Tueia. 'yfra's...gi,;,,e,n..-zot..,the
ete.;11014.f.tial an
statns:,of an exiled
cabinet - miniater. However,
Lee,14.11, later 1worked his "way
to the Bolivian-Peruvian bar-
der where, according to some
tOo
into
Once in
wceoenkago�Lechin reportedly .
con-
sulted - With received
re-
peatedfrom both
Peruvian Foreign Minister
Gen. Edgardo Mercado Jar-
ia4-eed-Yresddelit74tisiv-Ire..
evening,laseu that his personal asylum
was completely secure.
But last Saturday tiena delegation of agent5 1 '
fying themselves es being
from the PTP. (Peruvian FBI)
entered the hotel suite of
-fprteel:',..PfeeideetTertei. who
ws"s"..,:he.1,4,-,:inteivie*ed by 'tlits
toreporter. The PJ.P.. id
Turres that Lechin had been
arrested in a private house
M-a:;r4Muz4Uhurh four hours
earlier. They jhan,bluntly-Ttild
Gen. Torres 'tad 'ter of information. Ramiro
VilIairael, that ' they - must
re-
gimePresidente Petit for Chile. '
heard' the next plane leaving
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Torres, Ex-Pre
Found Afard
�
si ent of Bo1iv4
ed in
,
.BUENOS AIRESi,June3 (AP) loose�:tillianel'of,left-wing civil
�The body of former President ians:f. ank"..offiners-�,Y. that had
Juin. .-.Tosd Torres of Bolivia wrested power -free.; rightists
-who only 'a few days previously
had taken:, over in a coup. ;
In 1987, as Chief- of Staff of
the artried , forces, General
Torres helped plan the ,Operrt
tion that resulted in the tie.ath
hai beenloCnid on a rural read-
,
side,-,the auto ties said today.
They said General Torres
was blindfolded and had been
shot tivice iri the heck and once
'
In an "effielat statement, the of Ernesto Che Guevara, the
-reptidiated. a
wave ,,,r.;O:th-Viele.:nce it said has
:c.f4; ..�;colliitry's. image
erai
;The?0,,lettivinledg bi3911V10 gen.
e _ ,e t
en- iring in
exl
n Argentina,
the ;P. ,� e a. a , ' b -e n-- disappeared
Accordingto the
VIPsfiO _
s� io41 Pen /14
eskoieainri,',ea:in!abt1-
laleidentfiedaihociiesWas aiming
police
viru:t tree tit layes,zeri:jhei,a ranch llld
65
aGeea
ago the
riddladbodieP?ltte4ani.Wero
Two weeks bullet
after armed me
dragged them from their
homes,
Argentme,born �Cuban revolu-
tionary who sought to organize
a peasants' 'revolt in Bolivia.
Yet' in August 1971, General
Torres,. had. hi elf swung so
far left that conservative Bo.
livian leaders,, fearing he Was
turningthe nbuntry toward the
Soviet sphere and into Cuban
style sOcialtain, ',overthrew hi4
Governatent;Re was foreecl �td
flee into exde in Peri.
A Rapid Ascent
Born into a poor � family in
the town of coeha.bamba.,- Gen-
eral Torres was a graduate of
of the Bolivian Military acad-
emy, at whirl he -later taught
Ie rose,, Most ;,,rapidly :in rank
during the 12-year. -presiden0
of Victor Paz. Estetiasoml Nito
. . -
� . _Safe' than :-320 - PePple have .- ,Po ,_ .
ltbv
beek,killed in all .fcirrns:Of .po,, young ....Offieer; including -Juan
litinal',.tdoleidee-Sitine-IVI'e.ly 24 Jost Torres, .,.. : . -.�.-- .
�
when the 'armed forces over But in 1964 General' Torres,
theW,-:�1?...residents.-Isibel:: Marti- then a 'nOlonel;. supported :the
tlea'..iti''PerditV!Wititi'.'-piOriliSe 1 wit..� tita.r.Y/.e.a.aP;,,,..that,�=0V-erthraW- i
to`.teetere order and protect hit. the leftist"-iind.--.dernoeratie'Paz
nieti..:.,rikhts, -,.. : -..'. - - -'A - ,,,' regime. Under the late Presi-
but ;for t Pe9Ple;'
ratlitary.0.0 '9f 1111 ' Ilfe; as a
frowneded on e4t,r.eara" of the
usuallY
ribt and
the'left, was ta
to the height of power
on Oct 6, 197O in the climax
LliPhe val of one of Vi s 1/18113r Pad-
",,,Preelaitnca
ed hims
�t%a revolution of
dent Ake*: 11.44 teilto;o400,
46'''''j.a0eV.4"::?".APhitgleaddiqt.b.
re-
gimeUruguay ail briefIy as Mm
shy
in Seotember 19&9: Canera
::::of.44itAdolftij.S.0..s.i 'The.
ne*',.tiVaridit'fOOVerritairit made
him chief of the armed forces
but -rn July 1970 under pies
:Genetal':;::;::.IOarraO.tilanbarge.d.!
GeneralIerreS'arid,1:retired,hhtifrom the army
.!:
-;,'Pottit that
General:- '-...Zoitea resumably
started sflotting ievoliition and i
own--assirruptilon of presil
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Ex-Leader
Of Bolivia
Disappears
By Joanne Omang
Washinton Post Foreign ServiCe
BUENOS AIRES, June 2
--Former Bolivian president
Juan Jose Torres Gonzalez,
ot'ertlirown y -a nnflTary
coup in 1971, disappeared
trom his home in exile here
.csterday Morning, his wife
reported. She believes he
was kidnaped.
Torres. who go' creed in
i.970 and 1971 as a leftist
populist. left, his downto-xn
apartment in this Arzentine
capital al t3:30 a.in rester-
(-lily planning lo lake Ihe
tatoily car for sonic errands.
his wife Emma Obleas de
Tories told journalists this
morning.
She said he failed to show
up at a noon appointment
and the car had not been
moved. "I- call on the gov-
ernment of my country [Bo-
livia] to demand a clarifica-
tion from the authorities of.
Argentina of the circum-
stances in which my husband
disappeared," Mrs. Torres
said.
A spokesman Argen-
lina's ruling military junta
.said federal police were
"checking the complaint but.
ha% e no confirmation that a
kidnaping has occurred."
\not her mililary officer
close In hr rzovernment said
ihey had iii ruled oin -the
that he has jusl
into
Torres. 51. is Hie third ,
prominent exile lo sanish
11(.1-0 since the military c...11V.
rrnineill, 100k over March 24.
tiruguayan political figures
Zeinar Michclini and flec-
tor Gutierrez, Ruiz were
Found dead in an abandoned
May 21, their bullet-
riddled bodies bearing the
marks of a right-wing death
squad-style killing.
Torres helped plan and
carry out the U.S.-backed
operation against Ernesto
Che Guevara's guerrilla
forces in the Bolivia moun-
tains that resulted in Gue-
vara's death in 1967. There
was speculation here that
Torres disappearance v,
the work of leftist guerrillas
retaliating for that anion.
tm May 11, Bolivia's ambas-
sador to France. Joaquin
ZcnIeno Anaya. was assassi-
nated in what Iris as
a reprisal for his role in
operation against Gueviii.a.
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HE 7ASITINGT-QN, POST
June 3, 196
"
By Joanne Omang
w'!�51,111FtoP,;',.T`9.sz FOreign,terYlcn
BUENOS AIRES, June 2
�Former Bolivian president
Jua**40se'T9,rfis:,Perizalei,
coup in - 1971, diaappearc�
vfidru:' his home
YestOrOLOy,:porpi,n,g-, his wile
,She believes
- was kidnaped.
Torre. -who genicd hi
1970 and 1971 a , leftist
l*tnizert in tIii 'apitol at 8:3a '4.m
clay 1aArrnh1:1*
an,*to tal
lamily car for iome errands.
-
,tuitei othis
,
morning.
1Puts
beene said ho failed to show
;07
einm 01. 'r �
� not
ntry [Bo-
livia] to demand a clarilica-
es of
A:.:rfg(F44,Iii('
husband
disappeared," Mrs. ()fres
-suakmniii
thi junta10,;,,ctp1111:itp1721'n' .tu
htia.vle.e614116 policon-that a.-
e were
1 occurred."r ei�
I c' had nut ruled;
9 it
,(1
'4'n(s t � r 11;ts
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tfyi--3
Former President of Bolivia
Reported Missing in Argentina
(BUENOS AIRES, June 2 (UPI)
�Former President Juan Jos�
Torres Gonzales of Bolivia dis-
appeared after leaving his
house � yesterday and sources
close to his family said they
feared he had been kidnapped.
t Mr. Torres, who has been liv-
ing in Argentina as a political
refugee, was reported missing
last night
He served as Bolivia's Pres-
ident for 10 months in 1970 and
1971 and went into exile in
Peru after the military coup
that brought to power the
right-wing regime of Gen. Hugo
Banzer Suarez. Mr. Torres
moved to the Argentine capital
in 1973.
Sources close to the Torres
family said the former Pres-
ident had not been seen since
he left his house early yester-
day. Mrs. Emma Obleas de
Torres said her husband had
left their apartment yesterday
morning but failed to keep sev-
eral appointments during the
day, There was no official word
on his fate.
Two weeks ago, two Uru-
guayan leftist politicians, who
also had sought political asy-
lum in Argentina in 1973, were
kidnapped. The bullet-riddled,
handcuffed bodies of the two
politicians, Zelmar Michelini, a
former Senator, and Hector Gu-
tierrez Ruiz, the ex-president
of the Uruguayan Chamber of
Deputies, were found five days
later in an abandoned car. Ar-
gentina's military government
ordered an investigation into
the killings but the results are
not known.
Earlier yesterday, a leader of
Associated Press
Juan Jos�orres
the Radical Civic Union, Argen-
tina's main apposition party
during the administration of
President Isabel Martinez de
Peron, told the police one of
the party's members had been
kiduapped. Enrique Vanoli,
political secretary of the par-
ty's national committee, said
that Guillermo Alonso, his wife,
their son and the family maid
were abducted at their home
in Buenos Aires. The police
have not commented on the re-
port.
Woman Dies in Hotel Pall
SAN JUAN, P. R., June 1 (AP)
�Louise Hooper, 54 years old,
of Jersey City, fell to her
death from the 20th floor of
the Sheraton Hotel, the police
said Tuesday. They said Miss
Hooper checked into the hotel
Thursday.
ONE MILLION KIDS
THE FRESH AIR FUND
1J
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