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cument contains classified information affecting the natioiited States within thep$aa&-laws. US Codelaw prohibits its transmission or thets in any manner-to an unauthorized persojwwr^elTas itsprejudicial to theof the United States or for tfiiTbw*atiLof any pgovernment to the detriment of the United States.
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This document MU GOVERNMENTS. If controls in ac thebe handled limitation so imposed.
3
THE BOLIVIAN-CHILEAN DISPUTE
a long-standing dispute between Bolivia and Chile over Bolivia's aspirations for access to the sea and over Chile's diversion of Rio Lauca waters has grown In Intensity In recent weeks. limax of sorts was reached onune when La Paz announced lt was withdrawing its representative fron the OAS Council in protest against actions by the council chairman, who was attempting to mediate the dispute. At present, with elections scheduled In bothnext year, neither side canean-lngful compromise, so no solution is likely ln the near future.
for tho Dispute
Bolivia and Chile have had boundary problems since theh century when Bolivia lost its seacoast aluable nltrate-produeing area to Chile in the War of the. reaty signed4 obligated Bolivia to acknowledge transfer of Its seacoast to Chile. In return, Chile granted Bolivia the duty-free use of the ports of Antofagasta and Arlca and of the railroads connecting these ports to La Paz. Bolivia's
quest for its own outlet to the sea nevertheless continued to be an issuo between tho two
This issue now has become intertwinedolivian protesthilean plan to divert waters of the Rio Lauca for an Irrigation project in the Azapa Valley. The river rises ln Chile and empties Into tho salty basin of Bolivia's Lake Coipaaa. Bolivia baa
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that Chile'sof tha waters of this con-awn river constitutes an act of "geographic aggression" and is demanding as compensation an outlet to the sea.
Chile announced Its Rio Lauca planseld the project ln abeyance during World War II, and began TheGovernment was kept Informed of progress but made no protest until the installation was first tested in The Chilean foreign minister's reply stated that Chile considered lt had the Bolivians' tacit approve! in view of their failure toa protest in theears they had known of the project, and that Chile was using less thanercent of the river's water.
The Rio Lauca project will be of major economic benefit to Chile. The water will be used for producing hydroelectric power as well as for irrigation in the Azapa Valley. The power generated will be transmitted as far as the port city of Arlca Bolivia, on the other hand, has no plans for utilizing the river's waters.
Prior toolivian-Chilean negotiations proceeded through normalchannels. Inhile announced Itsto divert the Lauca waters as soon as the project was completed. Onpril, Bolivia threatened to take the dispute to the OAS unless
Chile canceled its plans. The next day, however, Chile began diverting the Lauca waters, and onpril several thousand students and workers protested by attacking the Chilean Embassy ln La Paz with stones and "Molotov The rioters managed to burn tho Chilean flagbeing repelled with tear gas by the local security forces.
Bolivia severed diplomatic relations and demanded that the OAS brand Chile as anunderf the Rio Treaty of The OAS refused to act upon therequest, and ln May lt returned the issue to the disputants and urged tbes toeaceful Gonzalo Pacio, chairman of the council of the OAS, offered hla services as Negotiations have proceeded haltingly sinceast Septumber Bolivia withdrew from OAS Council activities ln protest against aa alleged lack of OAS action on the Lauca problem, but resumed its seat during the Cuban crisis.
Current Developments
Public feeling in both Chile and Bolivia has been heightened recently by Bolivia's national celebrationWeek to the Sea" fromoarch, ita useostage stamp on all sail to Chileimilar slogan, Chile'stacticshilean radio station whichro-Bolivian news program, and other mutually harassing acts.
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Faclo's efforts Id the OAS have been hampered by Bolivia's endeavors to link the Rio Lauca controversy with its access-to-the-sea The problem isby the fact that histo separate the two issues coincides with the position of the Chilean Foreign Ministry.
Sarly lastolivian note implying criticism ofmediation role wascirculated to the members of tbe OAS Council
while Facio waa out of Washing-
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his mediation
endeavors. Bolivian Foreign Minister Fellman thenthat his country was withdrawing from the OAS becauae of that body'se later clarified this byBolivia was withdrawing only from the Council of tho OAS.
The full ramifications of Bolivia's decision are still not clear. Its OASand ambassador to the US are both urging the Foreign Ministry to reconsider. It seems likely that the withdrawal will hamper rather than help Bolivia in its efforts to seek diplomatic support from other Latin American governments. Bolivia may, however, beto bypass the OAS andtbe Rio Lauca and aoa-access issues to the UN when theAssembly convenes in Possibly in an effort to line up support ln that body. La Paz has been extending its diplomatic relations to include several key Afro-Asian countries. Unless Bolivia becomesthat its withdrawal from tbe OAS Council has definitely worked against its best interests, lt is not likely to resumediplomatic representation at the OAS until the electionew council chairman ln November.
In spite of the current bad feeling, Bolivia probably would be content to resumediplomatic relations with Chile if Santiago would agree to keep tho door openossible agreement on freer Bolivian sea access. TheForeign Ministryis bankinghilean memorandum of hich stated that Chile always has boon prepared to discuss the possibility of givingsome form of sea access ln return for some kind of nonterrltorlal compensation.
However, the dispute now is further complicated by the fact that the issues involved have become of national pride and by the national elections scheduled for next year ln both countries. President aiessandri of Chij.e
said such action wou. 'politically disastrous" for him and for bis party. In Bolivia. President Paz
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probably would bo heavily attacked fron the political right and left should be agree to an accommodation which was less than favorable to Bolivia.
Outlook
Thus, lt is unlikelyatisfactory solution to the dual Bolivian-Chilean problem will be found until after the elections. It is equallythat Chile ln thewill make tho concession Bolivia wants ln order even to resume diplomatic relations.
Jhile isopposea to tying tbe question of the port issue to that of re-establishingrelations.
During the past six months Bolivia has boon sendingto the other hemisphere governments seeking theirand it is possible that continued Bolivian pressures will bring results. There are indications that Bolivia has gained the support of about half the hemisphere republics for placing the sea-access issue on the agenda of tbe oft-postponed Inter-Americannow scheduled for Quito later this year. This "support" probably Is based on theLatin American belief that any item is suitable for discussion at inter-American conferences. The combination of increased hemlspheropressure and the strong desire on Chile's part for nonterritorialsuch as Increased wator rightsresultuture agree ment with Bolivia which could leadodification of its land-locked status.
uid pro quo might resulthilean offer to Bolivia of an expanded port enclave and more extensive rail facilities from La Paz to tbe sea. On the other hand, Bolivia probably would consider exclusive use of tbe seemingly abandoned port of Mejlllones between the Chilean ports of Antofagasta and Tocopllla as adequate compensation. There is no reason to believe, however, that Chile will agree to any major modifications of the Treatyuchorridor to tbe sea, to satisfy Bolivia's seacoast aspirations.
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Original document.
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