821.51/1728: Telegram

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

86. Your telegram No. 73, October 31, 4 p.m. Discussed matter with Olaya yesterday. He said that he is distinctly opposed to legislation causing suspension of present foreign debt service whether, (1) directly, as in the bill now before the Senate, or (2) by the failure to include necessary appropriations in the budget. He expressed confidence that, as a result of conversations with Lopez and Senate leaders, bill would either be defeated or amended to innocuous form by the Senate. He discounted possibility of second alternative as Congress will probably adjourn without passing budget.

He failed to show interest in central bondholders organization saying that he hoped to continue to meet debt service as at present while in office and leave settlement of foreign debt question to next administration.