The Deputy Federal Loan Administrator ( Clayton ) to the Under Secretary of State ( Welles )

My Dear Mr. Secretary: I enclose draft of resolution93 of the Export-Import Bank authorizing a credit of $6,000,000 to the Republic of Colombia.

May we suggest before this credit is made available to Colombia, the advisability of requiring satisfactory assurance that:

Import permits will be issued only with due regard to the availability of free exchange.
Decrees relating to taxation, imports, or exchange will not be retroactive.
Negotiations will be undertaken with the bond holders of the Bogotá loan and of the Agriculture Mortgage Bank loan.
Service will be resumed on the Barranquilla, Santander and Santander del Norte obligations.

May I add that in our opinion some representation could well be made to the Republic of Colombia regarding the undesirability of recent legislation, notably the corporation law, from the viewpoint of attracting capital for the development of Colombian resources. The development of these resources is essential for the maintenance of Colombian buying power and debt paying ability in terms of foreign currency.

Sincerely yours,

W. L. Clayton
  1. Not printed.