821.6363 Barco/452: Telegram
The Secretary of State to the Minister in Colombia (Caffery)
10. Your 21, February 25, 5 p.m. It is our understanding that the company will accept the first modification suggested by President Olaya with regard to any disputes in royalty payments, provided the Government of Colombia agree that if it intends to file suit in any given case it will do so within 90 days thereafter, so that the books of the company will not be held open indefinitely and so that the company can know what liabilities it may have to meet.
With respect to the second point, it is the feeling of the company that it cannot agree to a fixed term at the end of which exploitation must begin because no one can predict what petroleum resources may exist there and how soon it will be possible to commence exploitation. Probably the company will make a counterproposal to the effect that if in a given time the minimum production stipulated has not been reached, it will put more drilling rigs into operation.
The Department, of course, does not undertake to pass upon the contract as a whole; nevertheless, it hopes that these offers of the company will make it possible for the two parties to reach a satisfactory agreement at any early date.