811.20 Defense (M) Colombia/94: Telegram

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

706. Your 814 of June 18.

It should of course be remembered that Rubber Reserve’s commitment is for a 5-year period. This assurance of a long term market should easily counter-balance a 50-cent price for 50 tons. In addition so far as known nothing comparable to the fund being provided by Rubber Reserve is being offered by Argentina.
In general satisfactory. It is assumed that Colombia is satisfied that its retention of 1,000 tons is sufficient without any commitment on part of this Government to see that tire plant is made available, because no such commitment can be given, except on basis outlined in Department’s 678 of June 12. Guarantee can be given of prompt delivery of 20,000 tires and of 30,000 more within a year, subject of course to the availability of proper sizes and types and of shipping and to the international situation.
Assume language in contract as originally sent you satisfactorily covers this point.
Agreeable if Colombian Government agrees on other points.
Very desirable to sign agreements during coming week. Please telephone Finletter or Cissel67 when contract has been signed, as prompt announcement is desired here. Pocklington is authorized to sign on behalf of Rubber Reserve.
  1. Thomas K. Finletter, Special Assistant to the Secretary of State, in charge of the Division of Defense Materials; and T. Ross Cissel, Jr., Assistant Chief of the Division of Defense Materials.