821:51/2342: Telegram
The Acting Secretary of State to the Ambassador in Colombia (Braden)
77. Your no. 47, July 11, 5 p.m. The Department has taken up with the Secretary of the Treasury32 the inquiry of the Minister of Finance33 regarding the possibility of a gold bullion loan and of obtaining dollar availabilities against gold collateral, and has received the following reply:
“I take it from your letter, although I am not quite clear about the matter, that the Colombian inquiry relates to two distinct problems: (1) the possibility of a gold bullion loan, and (2) the possibility of obtaining dollar availabilities against gold collateral. In the absence of specific congressional authorization such as envisaged in the case of Brazil in the Aranha agreement of March 9, 1939,34 the Treasury probably would not be in a position to make a gold bullion loan. Whether or not the Federal Reserve Bank of New York or other agencies would be in a position to make such a loan would require further investigation, which I have not initiated pending clarification of the Colombian request and of the general nature of the cooperative program. As regards the possibility of dollar availabilities against gold, the Treasury would be in a position to render effective assistance along these lines through Stabilization Fund operations and would be prepared to render such assistance provided other aspects of the general settlement between the United States and Colombia appeared satisfactory.”