Relations between the United States and Bolivia are cordial and cooperative. Development assistance from the United States to Bolivia dates from the 1940s, and the U.S. remains a major partner for economic development , improved health, democracy, and the environment. In 1991, the U.S. Government forgave all of the debt owed by Bolivia to the U.S. Agency for International Development ($341 million) as well as 80% (or $31 million) of the amount owed to the Department of Agriculture for food assistance. The United States also has been a strong supporter of forgiveness of Bolivia's multilateral debt under the Heavily Indebted Poor Countries (HIPC) initiatives.

The control of illegal narcotics is a major issue in the bilateral relationship. For centuries, Bolivian coca leaf has been chewed and used in traditional rituals, but in the 1970s and 1980s the emergence of the drug trade led to a rapid expansion of coca cultivation used to make cocaine, particularly in the tropical Chapare region in the Department of Cochabamba (not a traditional coca growing area). In 1988, a new law explicitly recognized that coca grown in the Chapare was not required to meet traditional demand for chewing or for tea, and the law called for the eradication, over time, of all "excess" coca. To accomplish that goal, successive Bolivian Governments instituted programs offering cash compensation to coca farmers who eradicated voluntarily, and the government began developing and promoting suitable alternative crops for the peasants to grow. Beginning in 1997, the government launched a more effective policy of physically uprooting the illegal coca plants, and Bolivia's illegal coca production fell over the next 4 years by as much as 90%. The "forced" eradication remains controversial, however, with well-organized coca growers unions blocking roads, harassing police eradicators, and occasionally using lethal violence to protest the policy. Government security forces have used lethal force on several occasions in response to the protests, raising human rights concerns. The United States also heavily supports parallel efforts to interdict the smuggling of coca leaves, cocaine, and precursor chemicals. The U.S. Government has, in large measure, financed the alternative development program and the police effort.

In 1996, the United States and Bolivia ratified a more effective extradition treaty that made it easier for both nations to more effectively prosecute drug traffickers and other criminals. President Mesa has agreed to continue counter-narcotics programs.

U.S. Embassy Functions
In addition to working closely with Bolivian Government officials to strengthen our bilateral relationship, the U.S. Embassy provides a wide range of services to U.S. citizens and business. Political and economic officers deal directly with the Bolivian Government in advancing U.S. interests, but also are available to provide information to American citizens on general conditions in the country. Commercial officers work closely with dozens of U.S. companies that operate direct subsidiaries in the country. These officers provide information on Bolivian trade and industry regulations and administer several programs intended to aid U.S. companies starting or maintaining business ventures in Bolivia.

The consular section of the embassy provides vital services to the estimated 17,000-20,000 American citizens resident in Bolivia. Among other services, the consular section assists Americans who wish to participate in U.S. elections while abroad and provides U.S. tax information. Some 40,000 U.S. citizens visit annually. The consular section offers passport and emergency services to these tourists as needed during their stay in Bolivia.

The U.S. Embassy is located at Avenida Arce #2780, La Paz (tel.591-2-2430251). There are consular agents in the cities of Santa Cruz (tel. 591-3 -3-330725) and Cochabamba (tel. 591-4 4256714).