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The Under Secretary of State (Welles) to the Secretary of State

45. I would recommend that you inform the Colombian Ambassador that if his Government submits to the Council a debt settlement proposal [Page 513] in the general range which I understand Laylin has been proposing the Department will do everything it appropriately can to secure its acceptance.

Our understanding is that this formula would contemplate the resumption of payment on a 3% scale which would gradually rise to 4%. It might be well to reserve flexibility as to the secondary details.

Welles