821.24/657: Telegram
The Ambassador in Colombia (Lane) to the Secretary of State
[Received September 7—1:40 a.m.]
1570. My 1555 September 2, 8 p.m., and 1561 September 4, 11 a.m.15 In view of importance of determining accurately the position of the Colombian Government with regard to alternative to the Decentralization Plan,16 and especially because of lack of enthusiasm evidenced by Superintendent of Importations,17 Connell18 and I called on President López today so that Connell might be in position to advise the Department regarding President’s views although the President did not state that Muñoz is in favor of the alternative, he made it clear that Muñoz is not opposed to it.
The President said that he is in favor of any system which will simplify present procedure and that the only condition Colombian Government makes is that it desires to continue not only now but in the future the control of importations into the country. He said that if importations are to be unlimited, thereby bringing invested capital out of the securities market in order to purchase foreign exchange, there will be a disastrous sudden fall in commodity prices which would bring serious financial crisis on the country. He said that while the Government wishes to encourage importations and gradually bring about a decrease in prices, it wishes to be in a position to exercise control so as to prevent too sudden a rise or fall. He said that since the news had been made public regarding the easing of importation restrictions stock and bond prices had fallen considerably. The Government wishes to prevent further sudden drops. The President said that the Government plans to simplify its future control as much as possible and while not certain today how the control would operate he expressed the opinion that it would consist of an import permit to be issued by the Superintendency of Importations for all imports before import licenses could be issued by the Office of Exchange and Export Control. The President said that he would send for Connell and me tomorrow after he has further discussed the situation with Muñoz. He likewise said that in his opinion it would be unnecessary for Connell to consult with Garcia Alvarez19 prior to Connell’s departure. Connell will therefore leave Barranquilla for Miami on September 9 as previously planned.