821.6363 Barco/507: Telegram

The Minister in Colombia ( Caffery ) to the Secretary of State

[Paraphrase]

50. My 37, March 13, 11 a.m., despatch No. 2388, March 27, and first numbered paragraph telegram 49, April 10, 4 p.m.25 This afternoon President Olaya told me that it now appears impossible to have the present Congress ratify the contract without modifications; that he wanted to close the Congress now with the idea in mind of reintroducing the contract in the new Congress in July; he thinks he can make “combinations with new elements” in that body so as to get the contract ratified. He will not do this if the Department objects, but will continue the fight now. He “needs” the continued good will of the Department and especially for two matters:

(1)
He fears that the banking group, whom he suspects of the most sinister designs, may endeavor to break up his negotiations over the Swedish match monopoly and he wishes the good offices of the Department in case of necessity.
(2)
He wants the informal good offices of the Department in case of necessity in the matter of his requested advance from the United Fruit Company, and he hopes that the Department will express its general attitude in the premises to me. See my despatch No. 2403, March 30.26

[Page 27]

I think that under existing circumstances President Olaya should close Congress now and resubmit the contract to the new Congress in July. Representatives of Gulf here agree.

Urueta persists in believing that the Department could have “persuaded Gulf to accept the time limit and avoided this trouble”. His judgment, however, is undoubtedly warped by his distress over the President’s inability to get the contract through Congress now.

Caffery
  1. None printed.
  2. Not printed.