811.20 Defense(M)Colombia/435a: Telegram

The Secretary of State to the Ambassador in Colombia (Lane)

28. If you consider it likely that negotiations for final arrangements between this Government and Colombia on future conduct of rubber program will not be concluded within the near future, such as the next 2 weeks, it is suggested that it may be possible to reach some interim arrangement pending the final outcome which would permit action now. It is noted, for instance, that one of the principal bases for the view that the Caja’s26 monopolistic powers are unconstitutional is that they include rights with respect to private as well as public lands. It might be that the Colombian authorities would be willing to allow Rubber Reserve27 to enter into financing arrangements providing for the development of private lands before the overall understanding is concluded.

These suggestions are submitted merely for your consideration and any action on them is naturally subject to your judgment as to the probable course of the negotiations. It seems clear that if advantage is to be taken of the present dry season plans must be pushed as quickly as possible.

Hull
  1. Caja de Crédito Agrario, Industrial y Minero.
  2. Rubber Reserve Company, a governmental instrumentality, directed by the Secretary of Commerce. Its functions pertaining to the development of foreign rubber sources and the procurement of rubber were transferred to the Rubber Development Corporation, a subsidiary of the Reconstruction Finance Corporation, on February 20, 1943.