821.51/1670

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

No. 5682

Sir: Referring to the Legation’s previous reports, particularly to despatch No. 5666 of June 20, 1933,41 regarding the plans of the Colombian National Government for payment of interest on its external funded debt, I have the honor to report that the original plan (the Legation’s despatch No, 5646 of June 9, 193341) to have one-third of the interest due during the current year paid in cash and two-thirds in non-interest-bearing scrip, amortizable on October 1, 1937, or any prior date at the option of the Government, will be followed. The possible modifications in the plan outlined in the first paragraph of the Legation’s despatch No. 5668 of June 21, 1933, seem to have been abandoned without serious consideration.

It is understood that an announcement of the Government’s offer was made in New York yesterday.42 It is further understood that the offer covers not only the 35 million and 25 million dollar loans of the Colombian Government floated in the United States but also the loans of the Agricultural Mortgage Bank guaranteed by the Government.

Respectfully yours,

Allan Dawson
  1. Not printed.
  2. Not printed.
  3. The contract was signed in New York on June 30, 1933, renewing the loan to September 30, 1933. A further contract was signed at the end of September renewing the loan to December 31, 1933. (821.51/1692, 1719)