821.61/74: Telegram
The Secretary of State to the Ambassador in Colombia (Lane)
498. Your A–274, April 3, 1 p.m. Both the Export-Import Bank and the Department have given serious thought to and have discussed the point of view expressed by President López and by you in your recent message regarding financial assistance to Colombia. The Department and the Bank have reached the following conclusions:
- 1)
- It is recognized that the conditions under which the $10,000,000 credit was extended to Banco de la República may no longer prevail. It is also appreciated that the Banco may not wish to continue servicing a credit for which it is presumed it has no immediate use.
- 2)
- Both the Bank and the Department are sympathetic with President López’ desire to promote further constructive activity in Colombia including the improvement of communications and the development of agriculture. The Export-Import Bank is willing to discuss further credits.
- 3)
- As a preliminary to such discussions both the Department and the Export-Import Bank believe it would be desirable for the Banco de la República to liquidate the balance of approximately $8,000,000 outstanding on the exchange credit.
- 4)
- We are concerned lest borrowing by Colombia of dollars for deficit financing and internal expenditures may result in further inflation and the laying up of possible future financial troubles.
As indicated by Department’s instruction No. 1129 of March 2654 it is believed that a good deal of discussion and examination of possibilities will have to proceed [precede] any decision in this matter.
It would be helpful if you could inform us immediately whether the new Colombian Ambassador has any specific instructions in this matter.
It will be appreciated if you will bring the contents of this telegram to the attention of Mr. Duggan immediately upon his arrival.
- Not printed.↩