811.20 Defense (M) Colombia/84: Telegram

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

755. Department’s No. 632, May 30, 6 p.m. Following is the substance of remarks made to me this afternoon by Minister of National Economy:

1.
Colombian Government would be prepared to conclude purchase agreement for rubber with us for 5-year period but would prefer after a 2-year period to have an option to discuss price if conditions should warrant.
2.
Colombian Government although not absolutely insisting on construction of a tire plant would prefer this arrangement for production of tires for they are absolutely essential for maintenance of national economy. Colombian Government has already in force severe restrictions regarding use of tires and regarding reclamation of rubber. Colombia has until now refused to supply rubber to Venezuela and Argentina for manufacture of tires and will continue to do so unless unable to obtain tires from (a) local manufacture or (b) from our excess stocks understood to be now in Brazil (he said that about 2 weeks ago Brazil refused to sell tires to Colombia on the ground that an agreement with us precluded exportation).
3.
Maximum of 1,000 tons per annum of rubber products including tires would be sufficient.
4.
The question of price is not all important. (I did not discuss the matter of price more fully in the absence of reply to my telegram no. 748, June 4, 1 p.m.62) I am going to see the President tomorrow morning and will endeavor to obtain firm agreement to go ahead with definite negotiations on the basis of the foregoing.

Lane
  1. Not printed.