Carbon nanotubes, typically of 0.5-μm length and 20-nm diameter, were prepared with good selectivity by disproportionation of CO in He over a Pd/La2O3 catalyst. The catalyst was formed in situ by reduction of a La4PdO7 precursor. The obtained nanotubes had the so-called fishbone structure with the graphitic planes inclined at an angle to the long axis of the nanotube. The effect of CO concentration was studied at 673 °C, and it was found that, among the concentrations studied, 20 vol% CO in the gas was suitable for nanotube growth. The obtained nanotube/La2O3/Pd composite contained typically only 3 wt% nanotubes after 8 h of CO treatment. A process for selective dissolution of La2O3 and Pd was applied, and a product containing 85 wt% nanotubes was obtained. The nanotubes were characterized by high-resolution, transmission, and scanning electron microscope studies, combined with element analyses using energy dispersive spectrometers, x-ray powder diffraction studies, and thermogravimetric analysis.