821.51/2455: Telegram

The Ambassador in Colombia (Braden) to the Secretary of State

49. When the President of the Republic2 summoned me yesterday afternoon, he initiated the conversation on Colombian affairs by requesting [Page 697] my assistance in connection with loans to be obtained from the Export-Import Bank. He said, while he could gain great personal and political prestige from public works, purchases of rolling stock for the railways, dredges, etc., they would not benefit the country so widely or permanently as loans looking to the general economic betterment, particularly of agriculture, including coffee, and such a reenforcement of the general economy would, in fact, result in purchases from the United States equal to if not greater than the aforementioned.

I replied I was entirely ignorant concerning what had transpired on this matter in Washington, although I had suggested to Dr. Jaramillo,3 before his departure for the United States, that, for financing of the kind mentioned by the President, he explore the possibilities of loans to the Bank of the Republic, which could in turn reloan the funds in Colombia. I also indicated to the President that perhaps assistance of the kind he desires might be obtained from private banking sources upon an early settlement of the bankers group loan. Likewise gold stabilization cooperation might be considered in this connection. I added that as always I was anxious to assist the Colombian Government.

The President, in view of my unfamiliarity with the situation, requested me to discuss it with Jaramillo, who called on me today. I only repeated what I told Santos. Jaramillo promised, as soon as it is prepared, to give me full information which is to be sent the Colombian Ambassador in Washington.

Although the agricultural credit organizations in this country are, I believe, to say the least, in a weak condition, I am disposed to agree with the President’s fundamental thesis but, if his suggestions are to be followed, sound methods and measures must be found.

In view of the foregoing, I would appreciate receiving any information, suggestions or instructions which the Department may care to give me for my guidance in conversations with the President and Jaramillo.

The President expressed his gratification with the accomplishment of the debt settlement and its reception generally both in the United States and here but he felt the Foreign Bondholders Protective Council had been unfair by adding to their statement approving the settlement a paragraph lamenting the non-adjustment of the guaranteed, departmental and municipal debts.

Braden
  1. Eduardo Santos.
  2. Esteban Jaramillo, Representative of Colombia on the Inter-American Financial and Economic Advisory Committee.