821.6363 Barco/450: Telegram
The Minister in Colombia (Caffery) to the Secretary of State
[Received 10 p.m.]
21. My 17, February 17, 7 p.m. Yesterday the President sent for me. (This morning he repeated the same conversation to Rublee.) He stated that he appealed to me for aid in the Barco matter. Both he and his Minister of Industries had agreed to sign the contract (as set forth in Rublee’s memorandum). Since then, however, the President has been forcibly reminded that powerful political factors here were in a position definitely to prevent the contract’s approval by Congress unless certain additional changes were made. The President by no means put these forward as demands, but on the contrary he hoped that Gulf would again help him with the contract in order to get it in shape to get it through Congress. He realizes that this will try Gulf’s patience but it is only the risk of failure in Congress that induces him to make the request.
[Page 23]- (1)
- The President is convinced that it will be useless to present the contract to Congress without the addition of a clause to article 10 stipulating that in the event that a dispute shall arise as to the amount of the royalty payments, the company shall pay to the Government the amount the company admit is due, and the Government will sue in the courts any balance it claims as due.
- (2)
- Also, the President would like very much to have a clause included fixing a 10-year term at the end of which exploitation must commence or the contract be given up. The President is of the opinion that it would be difficult to get the bill through Congress without this clause, but he is willing to present the bill to Congress without it.
I respectfully make the suggestion that the Department use its good offices with the Gulf to induce it to accept at least the first change desired by President Olaya.
I was assured by the President that the Government would raise no more questions. He added that he wanted to sign the contract and send it to Congress on March 1, next, because he much desired to close Congress.