621.6217/6: Telegram
The Minister in Colombia ( Dawson ) to the Secretary of State
[Received 8:27 p.m.]
54. Department’s telegram number 38, June 1, 2 p.m. Since December last Colombian-German trade has been conducted on the compensated basis set forth in special report No. 50, of December 21st from the Commercial Attaché.17a During the first quarter of the present calendar year, coffee exports to Germany increased by 50 percent in volume and imports from Germany increased by 90 percent in value against corresponding period of last year. Increase of imports from Germany is attributed largely to the circumstance that compensation marks resulting from coffee and other exports and available only for payment of German goods are currently offered here at a discount of 20 percent or more under the official exchange value of the reichsmark. This situation which is having a distinctly adverse effect on American trade would seem to be due to the compensated trade system established last fall. There is no evidence that the Colombian authorities are granting any facilities other than those provided for surviving [sic] regulations set forth in the Commercial Attaché’s report referred to above and I am informed that at present the Colombian exchange control is taking steps to make sure that coffee shipped to German ports is actually for German consumption. Full report by air mail. Repeat to Commerce.
- Not found in Department files.↩