821.61/111: Telegram

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

1104. With reference your telegram No. 1520, August 28, the Export-Import Bank states as follows:

“It is the Export-Import Bank’s practice in all credits to foreign governments or entities to require legal opinion of an attorney of the foreign country, selected and employed by such government or entity without cost to the Export-Import Bank. It will be recalled that such procedure was followed in the cases of the $10,000,000 credit to Banco de la República and the $12,000,000 credit to the Republic and it is provided for in the draft of contract submitted to Dr. Miguel López. The Export-Import Bank always accepts the opinion of any attorney who the American Embassy states is a member of the local bar in good standing.

The Export-Import Bank has not yet been informed definitively whether President López desires to use a new section of the Caja or a new corporation although Ambassador Lleras was advised that the Export-Import Bank was agreeable to either medium provided it received satisfactory proof of legality. If a new section of the Caja is to be used and if the latter is to be created by Executive Decree pursuant to existing law the Export-Import Bank should be furnished copies of the Diario Oficial containing the pertinent existing legislation and a preliminary legal opinion to the effect that said existing legislation authorizes the issuance of one or more decrees providing for (1) the creation of a new autonomous section having its own board of directors in the Caja, (2) the contracting of a foreign obligation to the extent of $10,000,000 by the Caja or by the new section in accordance with the general terms and conditions set forth in the draft of proposed contract which was delivered by the Export-Import Bank to Dr. Miguel López, and (3) the unconditional guarantee by the Republic of Colombia of the obligations to be issued by the Caja or by the new section thereof. It was suggested to Ambassador Lleras that the issuance of any such new decree or decrees be postponed until the Export-Import Bank has been supplied with the foregoing.

If the medium selected by President López is to be a new governmental corporation it is assumed that a special law creating this corporation will be drafted to meet the situation and accordingly it will be sufficient for the Export-Import Bank’s purposes that it be provided with a legal opinion only after the law has been passed and the contract signed.”

Hull