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The United States emerged from World War II with generally good relations with the countries of Latin America and with the traditional Good Neighbor policy still largely intact. But it wasn’t too long before various overarching strategic and ideological priorities began to undermine those good relations as the Cold War came to exert its grip on U.S. policy formation and implementation. In The Truman Administration and Bolivia, Glenn Dorn tells the story of how the Truman administration allowed its strategic concerns for cheap and ready access to a crucial mineral resource, tin, to take precedence over further developing a positive relationship with Bolivia. This ultimately led to the economic conflict that provided a major impetus for the resistance that culminated in the Revolution of 1952—the most important revolutionary event in Latin America since the Mexican Revolution of 1910. The emergence of another revolutionary movement in Bolivia early in the millennium under Evo Morales makes this study of its Cold War predecessor an illuminating and timely exploration of the recurrent tensions between U.S. efforts to establish and dominate a liberal capitalist world order and the counterefforts of Latin American countries like Bolivia to forge their own destinies in the shadow of the “colossus of the north.”

This work examines U.S‐Bolivian relations in the years leading up to Víctor Paz Estenssoro's National Revolution in 1952. Harry S. Truman's diplomats and national security planners sought to secure scarce tin for stockpiling and domestic consumption during the early Cold War, but unintentionally helped to destabilize three pro‐U.S. Bolivian governments. U.S. efforts to drive down the price of tin, led by Reconstruction Finance Corporation (RFC) chief Stuart Symington and Senator Lyndon B. Johnson but often opposed by the State Department, exacerbated Bolivian economic problems and created a climate in which Paz Estenssoro and his Movimiento Nacionalista Revolucionario could flourish. Although Truman did eventually intervene personally to resolve the standoff between the RFC and the Bolivians in the days before the National Revolution, he acted too late to avert one of the most significant Latin American social revolutions of the twentieth century.

A dispatch from La Paz on July 15 about early returns in Bolivia's presidential election was edited to incorporate an erroneous report from earlier Times...

On Sunday, Mr. [Victor Paz Estenssoro] passed the Presidential sash to a cousin, Jaime Paz Zamora. Mr. Paz Zamora entered politics as a Marxist-Leninist, but gained the Presidency through the political support of a rightwing military dictator who jailed him in 1974. An exotic alignment for sure, but no great departure from the Paz family tradition. If Mr. Paz Zamora uses his new mandate as constructively as Mr. Paz Estenssoro used his most recent one, Bolivia will be well served.

A former military dictator, retired Gen. Hugo Banzer, is the accepted front-runner in the field of 10 candidates for the May 7 voting. Fondly remembered by many Bolivians because his rule from 1971 to 1978 was a time of relative prosperity, General Banzer is promising both ''democracy and well-being'' this time. Although opinion polling is not highly developed in Bolivia, the candidate thought to be running second is that of Mr. Paz's party, the National Revolutionary Movement. The candidate, Gonzalo Sanchez de Lozada, was until recently President Paz's Minister of Planning and was an architect of the present free market-oriented economic program. Mr. Sanchez de Lozada's nomination was opposed by many within the governing party, who argued for a candidate who would return to the more populistic philosophy of the past. But Mr. Sanchez de Lozada said his candidacy meant ''not to change the economic model,'' arguing that a few more years were needed for it to bear fruit.

A plurality went to Hugo Banzer Suarez, a retired general who led a coup in 1971 and headed an authoritarian regime through most of the 1970's. Mr. [Victor Paz Estenssoro] prevailed because he was preferred by the outgoing administration, the unions, elements of the armed forces and, finally, a majority of the new Congress.

''There could be an all-night session on the fifth, but by dawn of the sixth we hope there will be white smoke coming from the congressional building,'' said a diplomat, alluding to the signal used in Rome to announce the election of a new Pope. #59 Seats Versus 51 General Banzer, 59 years old, a retired officer and former dictator, won a 2 percent plurality in the July election and has 51 seats in Congress. Victor Paz Estenssoro, 77, a conservative, won the popular vote in seven of the country's nine departments and therefore controls 59 congressional seats. Jamie Paz Zamora, a 46-year-old leftist, controls 16 seats. ''It is a kind of persuasion,'' said Enrique Ackermann, an aide to General [Hugo Banzer Suarez]. ''There is a saying here that if you want to win the presidency, you have to win the streets first.'' ''We haven't gotten wind of any deals,'' a foreign diplomat said, ''but we assume it's taking place.''

LEAD: Jaime Paz Zamora, who has known exile and prison, was inaugurated as Bolivia's President today with an admonition from his predecessor not to upset the country's delicate economic stability. The new President also said he would ''fight against the threat from drug trafficking,'' while preserving ''the sovereignty, development and well-being of our people.'' He said that when he took office, ''a situation close to chaos was extending over the whole national territory,'' and that the Government ''lacked authority and the credibility with which to resolve the problems.''

''[Victor Paz Estenssoro] had to sweep out the house,'' said Jacobo Libermann, his friend and collaborator. ''He had to react with pragmatism to save the country from disaster.'' ''He is an old man with a clear, transparent mind,'' Mr. Libermann said. ''He does the politics of the possible, not of utopia.'' ''One always knows what he is doing and where he is,'' Mr. Libermann said. ''At 9:30 in the morning, he goes to the palace. At 12:30 he goes home for lunch, after which he takes a nap and reads. From 4 to 7:30 P.M. he is back in the palace. Weekends, he stays home and reads foreign newspapers, among other things.'' A journalist who has covered him for years said Mr. Paz Estenssoro follows his schedule so religiously that ''the Government could fall while he's taking his nap and he wouldn't wake up.''

''If that happened again,'' General Banzer said in an interview this morning, ''the people who voted and contributed to democracy would be very disappointed.'' Nevertheless, he said he would not rebel. Second Consecutive Election ''The most important thing,'' Mr. [Victor Paz Estenssoro] said, ''is to definitively consolidate democracy.'' ''Those who were jailed,'' she said, ''were involved in politics.'' None of the candidates had dwelled on Bolivia's role as the world's second-greatest source of cocaine, after Colombia, which is a central theme in relations with the United States.