821.51 Mortgage Bank of Colombia/66

The Under Secretary of State (Welles) to the Colombian Ambassador (Turbay)

My Dear Mr. Ambassador: I have received and wish to thank you for your cordial letter of June 10, 1942, transmitting the text of an offer the Agricultural Mortgage Bank of Colombia will make to the holders of its defaulted dollar bonds to exchange these for Republic of Colombia 3% dollar bonds. I was also glad to receive copies of the pertinent banking contract which you likewise enclosed.8

This sequel to the adjustment by the Government of Colombia in December 1940 of its own defaulted bonds is further concrete evidence of Colombia’s determination to adjust its foreign indebtedness on an equitable basis. I understand that in your discussions of this matter during the past several months with Messrs. Livesey and Wright it had been understood that once an adjustment of this indebtedness were announced some appropriate and helpful statement to the press would be made by the Department. The Department will be glad to make such a statement9 and would appreciate receiving from you an indication of the date on which the statement should be given to the press.

With assurances [etc.]

Sumner Welles
  1. Letter of June 10 and enclosures not printed.
  2. For statement issued June 25, see Department of State Bulletin, June 27, 1942, p. 565.