810.20 Defense/1071d: Telegram

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

188. The Department on July 7 handed to the Colombian Ambassador a draft32 of basic agreement for the lend-lease program of transferring military matériel to the Republic of Colombia. The principal financial provisions are as follows: Colombia is to receive a total of $16,200,000 of war and navy matériel, of which it is expected $5,000,000 of army matériel and $500,000 of navy matériel will be transferred during the fiscal year ending June 30, 1942. This delivery date is subject to change if broad defense considerations so require.

With respect to repayment, Colombia is expected to pay $1,625,000 in each fiscal year until 1947, making a total of $9,750,000 to be repaid prior to June 30, 1947. In consideration of the broad objectives of the program and of certain very general economic concepts, the entire obligation of Colombia to the United States would be considered discharged by such payments.

The Colombian Ambassador indicated that his government would be able to pay not more than $1,000,000 a year and asked whether 9 or 10 years might be allowed. He was informed that the entire program with all of the American republics is limited strictly to 6 years. He undertook to obtain at once the views of his Government.

Welles
  1. Not printed.