821.51/2554a
The Under Secretary of State (Welles) to the President of the Foreign Bondholders Protective Council (White)
My Dear Mr. White: During our conversation on December 12, 1940, I recall that you stated that the Foreign Bondholders Protective Council favored some sort of a temporary arrangement regarding the Colombian national debt and that you mentioned your belief that the Colombian Government under existing powers was authorized to make a further temporary settlement.
The Department has been informed by the Colombian Government through Ambassador Turbay that the Colombian decree of July 17, 1940 which is the controlling legislation, provides the basis for a permanent settlement only and does not empower the Colombian Government to make a further temporary settlement. You no doubt in your conversations with Ambassador Turbay have been similarly informed that the Colombian Government is no longer empowered to negotiate a temporary settlement.
The Department sees no reason to question the legal position of the Colombian Government under the aforementioned decree.
It is my thought in passing along this comment to you that it might influence favorably the attitude of the Council with regard to a settlement containing the terms set forth in the Decree of July 17, 1940.
Sincerely yours,