821.51/1100a: Telegram

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


63. Mr. George Rublee42 telephoned us from New York City and stated that yesterday the Federal Reserve was seriously considering granting credit to the Banco de la Republica but that now an alarming telegram has been sent to him by President Olaya to the effect that unless immediate assistance is received in the form of a $12,000,000 loan to the National Government to care for the foreign debt service payments of the Government and Departments in 1932 he will be unable to meet these. Under the circumstances, since it appears that credit to the Banco de la Republica may not save the situation or even prove constructive, the Federal Reserve is less inclined to grant the credit. Mr. Rublee desires to know whether any political developments have occurred to account for the latest move of President Olaya.

  1. Financial Adviser of the Colombian Government in the United States.