821.51/1736: Telegram

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

90. Your 75, November 13, 7 p.m. Partial restoration by the Senate of foreign debts service items was due to efforts of Olaya and [Page 261] Jaramillo. It was evident from the debate in the House on the budget yesterday that majority was in favor of complete elimination of these items. Senate amendments were, however, accepted by close vote and bill was passed in second debate in order to ensure enactment of the budget. It will receive third debate today and go to the President for signature.

Uncertain whether the bill discussed second paragraph of my telegram No. 88, and my 89, will pass House in short time remaining although sentiment therein is favorable to it. All banks in Bogotá foreign and national including the two semi-official mortgage banks yesterday presented signed protest against its principal provisions to the President of the House.

Expect to see Olaya this afternoon. Do not believe that he will consider vetoing budget in view of political situation but hope he will use his waning influence in the House against the debt bill.