821.51 Cooperation Program/3

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

My Dear Mr. Secretary: Reference is made to my letter of April 23, 1941 recommending the extension by the Export-Import Bank of a credit of $6,000,000 to the Government of Colombia, and to Mr. Will Clayton’s letter of May 12, stating that such a credit had been extended and indicating certain outstanding economic problems which it is deemed desirable be taken up simultaneously with the Government of Colombia. Reference is also made to a memorandum of the Colombian Ministry of Finance subsequently submitted by the Colombian Ambassador, and to conversations between the Ambassador, Mr. Warren L. Pierson, President of the Export-Import Bank, and officers of the Department.

The Colombian memorandum mentioned, copies of which have been made available to the Export-Import Bank, requests the Export-Import Bank to consider a broader program, involving projects to be carried out through the end of 1942, which would require the extension of credits of up to $13,000,000. The Colombian Ambassador has indicated that his Government requests and would need as favorable terms as possible, including low rates of interest and amortization spaced over a period of more than ten years.

The Department has carefully considered the additional projects listed, has discussed them with appropriate agencies of this Government, and believes that they would represent useful undertakings necessary and desirable in the maintenance and improvement of the Colombian economy. The Department therefore recommends that the Export-Import Bank as soon as conveniently possible consider the increase of the present credit to the Colombian Government of $6,000,000 to one of $13,000,000, at the Bank’s regular interest terms of four percent and with amortization handled in a manner similar to that provided in the recent credit of $25,000,000 to the Government of Cuba. Each individual project would of course be subject to the approval of the Bank, and all supplying of machinery and equipment would be carried out with due regard to the exigencies of our national defense program.

Sincerely yours,

For the Secretary of State:
Sumner Welles

Under Secretary