821.51/2744

The Department of State to the Colombian Embassy 6

Memorandum

In accordance with the informal conversations carried on between His Excellency the Colombian Ambassador and representatives of the Department of State, it is considered that the following formulae offer acceptable bases of solution of the defaulted obligations of the Agricultural Mortgage Bank of Colombia in respect of dollar bonds:

(1)
Government-guaranteed Issues of 1926, 1927, and 1928. For each $1,000 principal amount of dollar bonds of the Agricultural Mortgage Bank of Colombia guaranteed by the Government of the Republic of Colombia now outstanding in the hands of the public, together with all unpaid coupons thereon including those past due, there would be exchanged $1, 100 principal amount of bonds of the Republic [Page 219] of Colombia external 3 per cent sinking fund issue of October 1, 1940, together with the coupons not due on the date of the offer.
(2)
Bonds not guaranteed by the Government of Colombia. For each $1,000 principal amount of dollar bonds of the following issues now outstanding in the hands of the public, together with all unpaid coupons thereon including those past due, there would be exchanged $750 principal amount of bonds of the Republic of Colombia external 3 per cent sinking fund issue of October 1, 1940, together with the coupons not due on the date of the offer:

Bank of Colombia 7% due April 1, 1947
Bank of Colombia 7% due April 1, 1948
Mortgage Bank of Bogotá 7% due May 1, 1947
Mortgage Bank of Bogotá 7% due October 1, 1947
Mortgage Bank of Colombia 6½% due October 1, 1947
Mortgage Bank of Colombia 7% due November 1, 1946
Mortgage Bank of Colombia 7% due February 1, 1947
  1. Handed to the Colombian Ambassador on March 20, 1942.