611.2131/78

The Chargé in Colombia ( Dawson ) to the Secretary of State

No. 5816

Sir: Referring to the Legation’s despatch No. 5810 of August 26, 1933,10 reporting the substance of two recent conversations with President Olaya regarding the negotiations between the United States and Colombia for a reciprocal trade agreement, I have the honor to report that Dr. Olaya brought the subject up again on August 27, 1933.

The President said that he had received on August 25, 1933, from the Colombian Minister to the United States a copy of the memorandum prepared by the Department, mentioned in the last paragraph of despatch No. 5810, together with the draft of the proposed trade agreement and the two schedules of articles to be covered by the agreement, attached thereto. Dr. Olaya said that both the Minister to the United States and the Minister for Foreign Affairs, who had studied the documents carefully, considered that the United States was trying to drive a hard bargain and that he (Olaya) was inclined to agree with them, although he had not yet had a chance to do more than read the schedule of American goods for which reduction of Colombian import duties was asked.

President Olaya remarked that he thought the following comments, although based only on this cursory examination, were fair:

(1)
It would be very difficult for Colombia to agree to material reductions in duties on foodstuffs; he stated his belief that Colombia [Page 228] as an agricultural country should protect its production of such articles and that the impetus given thereto under the present tariff was sound economically (he mentioned wheat in particular).
(2)
While it was easy to understand the interest of the United States in securing a reduction of duties on cotton and rayon cloth and goods, the reason for the extension of this concern to natural silk was not apparent; under the most-favored-nation clause, France, Colombia’s principal present source of supply for silk, and Japan, the most important potential source, would be more likely to be benefited than the United States.
(3)
No reductions were asked for in duties on such typical American products as automobiles, with which foreign articles could not compete in Colombia; these would be easier to grant than a reduction in the duty on wheat and of more value to American interests than reductions on natural silk.

I made no comment to President Olaya concerning his remarks and explained that I had received no copies of the memorandum, draft treaty, or schedules from the Department. President Olaya volunteered to send me copies and stated that he would probably wish to talk to me further about Schedule I of the draft treaty after he had had a chance to consider it carefully and consult officials of the Ministry of Finance regarding it.

I shall, of course, in the absence of instructions from the Department to the contrary, endeavor to avoid discussing the matter with President Olaya, in view of the fact that the exploratory conversations are taking place in Washington, and shall limit myself to listening to and reporting any comments which he may make.

Respectfully yours,

Allan Dawson

August 29, 1933.

P. S. I have today received from the Ministry for Foreign Affairs copies of the memorandum, draft treaty, and attached schedules.

  1. Not printed.