811.20 Defense (M) Colombia/65a: Telegram

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

514. Your 588, of April [May] 2.57 The procedure suggested with respect to No. 2 is approved. The Department suggests that you make very clear to the President the urgency of our Government’s obtaining Colombia’s exportable rubber. Favorable arrangements along the lines of the offer made to Colombia have now been entered into with Brazil, Peru and Nicaragua, and an agreement in principle has been reached with Ecuador and Costa Rica. The price in all these agreements has been based upon the price agreed upon with Brazil of 39¢ f.o.b. Belém for Upriver Acre Fine on a washed and dried basis with appropriate differentials for other types and grades. The offer made to Colombia is for the quality understood to be the most common in Colombia; any other types and grades would be purchased at differentials based upon past usage. In addition Rubber Reserve is prepared to expend up to $500,000 for increasing amount and improving quality of wild rubber produced in Colombia.

It is contemplated that the agreement would provide for the export to this country of all rubber not required for essential needs and that essential needs would be determined on the basis of use of rubber products in this country, and the amount needed would be specified. This Government also desires to obtain from Colombia an agreement to sell to us all exports of manufactured products. Both of these points are considered very important here, and represent a practical carrying out of Resolution II of the Rio conference. It is suggested that you explore with the President the possibility of an embargo on rubber contracts and rubber exports pending the negotiations.

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In connection with the foregoing, it is suggested that you review the Department’s circular telegram of March 28, 9 p.m.

A form of contract is being prepared and will be transmitted shortly. It is desirable, however, that there should be no delay in reaching an agreement in principle.

  1. Not printed; in this telegram Ambassador Lane proposed that in his coming interview with the President of Colombia, he concentrate on the proposed rubber agreement (810.20 Defense/2585).