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The Minister expressed the opinion that the
operations of the Lufthansa in South America should be
very carefully watched by our Government. He thought
that it might well be possible that the Lufthansa was
planning to expedite service to the West Coast of South
America by flying directly across Brazil from Pernambuco, 
stopping at Trinidad, Bolivia, and thence through Bolivia
to Peru.
 
 
The records available in the Department of State do
not corroborate the view that the Bolivian Government owns
80 percent of the stock of Lloyd Aereo Boliviano. They
indicate that by 1936 the Government had acquired a
substantial but minority holding of the stock and that
wealthy native-born Bolivian citizens owned almost
Bs. 600,000 of the stock. In addition Bolivian banks
held at least Bs. 600,000 of stock but whether such holdings 
were genuinely for native-born Bolivian citizens is
not known. The paid up capitalization and reserve funds
of the Company in 1936 was reportedly only Bs. 1,747,290.30. 
By the present time this capitalization ls undoubtedly
considerably higher; the Company's legal limit is understood
to be Bs. 5,000,000. The Board of Directors has a majority
of native-born Bolivian citizens but the Chairman, Treasurer, 
and Counselor are still understood to be Germans, as are
the President and the Manager of the Company. Whether
 
 
of