BOLIVIA: On the Tightrope

By walking a tightrope between his truculenttin miners and annoyed U.S. officials, Bolivia’s President Hernán SilesZuazo squeaked through still another crisis last week. He not onlyended a 13-day strike, but also persuaded the U.S. to resume itsfinancial help.

At issue was the Bolivian government subsidy to tin-mine commissaries,enabling them to sell food at about 30% below city prices. Politically,it is a local asset; economically, it is disastrous, considering thefact that Bolivia’s nationalized mines lost $9,000,000 last year. Butwhen the U.S. got tired of talking and suspended aid to Bolivia, Sileswas in an even worse bind. At first word that the boondoggle might end,the miners marched out on strike. The solution was a classic ofdoubletalk. Siles promised the U.S. to cut the subsidy gradually over aperiod of four months. To the union leaders, he promised a 35% payraise. Result: everyone went back to work, and the InternationalCooperation Administration mailed off a check. How long Siles cancontinue his act is another matter. Both the U.S. lenders and Boliviantakers remember that Siles has promised twice before to end the minesubsidy, and reneged each time.

Even if overall dollar aid remains at the current level of $25 millionannually, the U.S. will shake up its program. First to be reviewed: thetechnical-assistance program, which employs 4,000 Bolivians, maintains20,000 miles of road, gives agricultural help to thousands. A recentsurvey showed that half of the Bolivians had no idea that the U.S. wasdoing the helping.

To boss the U.S. show in Bolivia, the State Department last week named acareer ambassador, Carl Walther Strom, 59. A onetime mathematicsprofessor at Iowa’s Luther College, Strom served eight years in Mexico,spent the last 2½ years in Cambodia. He replaces Careerman PhilipBonsai, now ambassador to Cuba.