Monday, Mar. 30, 1959

On the Tightrope

By walking a tightrope between his truculent tin miners and annoyed U.S. officials, Bolivia's President Hernan Siles Zuazo squeaked through still another crisis last week. He not only ended a 13-day strike, but also persuaded the U.S. to resume its financial 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 the fact that Bolivia's nationalized mines lost $9,000,000 last year. But when the U.S. got tired of talking and suspended aid to Bolivia, Siles was in an even worse bind. At first word that the boondoggle might end, the miners marched out on strike. The solution was a classic of doubletalk. Siles promised the U.S. to cut the subsidy gradually over a period of four months. To the union leaders, he promised a 35% pay raise. Result: everyone went back to work, and the International Cooperation Administration mailed off a check. How long Siles can continue his act is another matter. Both the U.S. lenders and Bolivian takers remember that Siles has promised twice before to end the mine subsidy, and reneged each time.

Even if overall dollar aid remains at the current level of $25 million annually, the U.S. will shake up its program. First to be reviewed: the technical-assistance program, which employs 4,000 Bolivians, maintains 20,000 miles of road, gives agricultural help to thousands. A recent survey showed that half of the Bolivians had no idea that the U.S. was doing the helping.

To boss the U.S. show in Bolivia, the State Department last week named a career ambassador, Carl Walther Strom, 59. A onetime mathematics professor at Iowa's Luther College, Strom served eight years in Mexico, spent the last 2 1/2 years in Cambodia. He replaces Careerman Philip Bonsai, now ambassador to Cuba.

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