821.51/2693: Telegram

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

196. My telegram no. 593, December 1, noon.95 From informal conversations with the Ministry of Finance, Turbay, National City [Page 210] Bank attorney, and that institution’s supervisor for Colombia, it would appear that this matter can be promptly settled on the basis of liquidation over 15 years which I understand is satisfactory to all group participants excepting Bank of Manhattan Company and Continental Illinois Bank of Chicago who demand a 10-year period.

The Colombian Government is strongly opposed to anything less than 15 years as too heavy burden on the budget. Failure to reach an agreement under the existing special authorization granted by Congress will carry it into succeeding administration thus probably entailing its being debated in Congress which in turn might mean the deferment of a settlement for several years. In my opinion, the two aforementioned institutions will better protect their interests by acceding to Colombian proposal.