821.61/74
The Chief of the Division of the American Republics ( Bonsal ) to the Adviser on Political Relations ( Duggan )48
Dear Larry: I have thought that you would find it helpful to know upon your arrival in Bogotá that since you left Washington the subject of the Colombian agricultural plan has been discussed on several occasions by Dr. Moore49 of Agriculture, Mr. Arey50 of the Export-Import Bank, and some of us in the Department. We all want to be of assistance in the most cooperative way to aid and encourage the sound development of Colombia’s agricultural possibilities.
Instruction no. 1129 of March 2651 informed the Embassy in this sense and authorized the Ambassador to tell the appropriate Colombian officials that the Department would be glad to discuss this plan in Washington with those officials which the Colombian Government might wish to designate.
It seems probable that both Vice President Wallace and yourself may be approached about this subject.52 President López spoke to the Ambassador on the 31st of March saying that he would be most appreciative if the Department would support the $15,000,000 credit which is desired from the Bank, and mentioned that for political reasons he is particularly anxious agricultural activities progress. The President at the same time expressed his wish that the obligation for the slightly over $8,000,000 balance of a loan made to the Banco de la República by the Export-Import Bank should be transferred to the Government and be allowed to run for eight years instead of the five years which would otherwise remain as the period of the loan. Mr. Lane reported on this subject by telegram and in strictly confidential airgram no. 274 of April 3.
With regard to the transfer of the obligation from the Banco de la República to the Government, this will undoubtedly have the approval of the Export-Import Bank but it will need a definite clearance when Warren Pierson53 is back in town tomorrow. The idea of the $15,000,000 loan on the agricultural plans along the lines of Dr. Miguel López’s project has, at best, received a lukewarm reaction from the Export-Import Bank, and Ross Moore. While fully supporting the [Page 74] desire to help in the most effective way, they, along with some of us in the Department, are very doubtful of the wisdom of some of the specific projects for which the loan is requested. Dr. Moore considers that any agricultural development must be closely related to the construction of roads and other communications facilities and that this would particularly influence any decision as to how wise it might be to make any general allotments for softie of the short and long-term agricultural projects. The allotment, too, of a million dollars for the parceling of properties has also not been favorably looked upon. The Bank has said that if a loan is made it is preferable simply to make a block allotment which could be used for projects the Bank would approve and that the Bank would prefer not to get into a Development Corporation.
All of those who have discussed this subject are in agreement that we should give technical assistance to Colombia, although Dr. Moore has pointed out that no large number of technicians would be readily found in the United States for immediate service. However, he believes there are some young men who have been trained here who might apply their experience in Colombia and be of some service. It will, unquestionably, be desirable to provide funds to cover essential equipment and other material which must be imported from, the United States, but present war conditions would make it unwise to give any definite commitment as to quantity or time of delivery. I know that as you will be on the ground and able to talk this over first-hand with Mr. Lane that you can determine to best advantage what influence political considerations should have in the extension of any part or all of the loan which is now requested.
It seems to me quite likely that when you are discussing agricultural matters, some reference will come up in connection with the draft of a suggested agreement between the Secretary of Agriculture of the United States and the Minister of National Economy of Colombia, which was the outcome of the talks Dr. Moore had when he was in Colombia last November. This primarily had to do with the establishment of an agricultural experiment station in the Río León Valley. If this were carried out, it would provide for a very modest expenditure by this Government. I think that this may have been laid aside by the interested officials in Colombia in view of the more elaborate agricultural plan which Miguel López has subsequently proposed.
I expect that you will wish to point out the desirability of having the entire matter studied in Washington after Dr. Miguel López or some other designated person, or persons, come here for that purpose, as this will permit a more thorough consideration of all angles of the [Page 75] problem than it is believed could be given if negotiations were carried oil in Colombia.
When you return we shall look forward very much to having the advantage of your opinion on this entire subject after the discussion which your visit will have afforded.
With kind regards,
Sincerely,
- Addressed to Mr. Duggan in care of the American Consulate at Cali, Colombia.↩
- Ross E. Moore, Assistant Director, Office of Foreign Agricultural Relations, Department of Agriculture.↩
- Hawthorne Arey.↩
- Not printed.↩
- For correspondence on the visit of Vice President Wallace and Mr. Duggan to certain American Republics, see vol. v, pp. 55 ff.↩
- President of the Export-Import Bank.↩