821.51 Cooperation Program/3

The Secretary of State to the Secretary of Commerce ( Jones )

My Dear Mr. Secretary: Reference is made to discussions between officers of the Department and officers of the Export-Import Bank with respect to the request of the Colombian Government for a credit of $6,000,000 for irrigation works, the construction of highways, machinery for electrical power plant and other public works. Copies of letters and memoranda from the President of Colombia and from the Colombian Ambassador, as well as memoranda from Ambassador Braden relating to this request, have already been made available to the Export-Import Bank and to Mr. W. L. Clayton, Deputy Federal Loan Administrator.

In the discussions referred to above, the view has been expressed that a program of economic cooperation could proceed on a better basis if certain economic problems affecting the relations between the two countries were satisfactorily settled. These matters include especially the handling by Colombia of its exchange control arrangements, and continued attention to Colombian foreign indebtedness, following up the present national debt settlement with discussions of the guaranteed and local debts. The Department has already received assurances that conversations will begin shortly with respect to the guaranteed indebtedness. It is prepared to undertake at once and continue informal discussion of the other matters, including the exchange control situation, and it is confident that the Colombian Government will continue to take measures for the solution of outstanding problems.

The Department has carefully examined the Colombian request for credits for public works purposes and strongly recommends that the Export-Import Bank make a general commitment for public works of $6,000,000, individual projects to be subject as usual to the specific consideration and approval of the bank.

Sincerely yours,

For the Secretary of State:
Sumner Welles

Under Secretary