821.24/724a: Telegram

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

1135. Reference Embassy’s 1570, September 6, 7 p.m. It appears evident that Colombia intends to continue control of importations into the country and that such control might consist of an import permit to be issued by the Superintendency of Importations before import licenses could be issued by the Office of Exchange and Export Control.

It would seem in these circumstances that there should be no objection to Alternative III since the importer would be obliged to obtain an import permit before placing an order or accepting an offer of [Page 179] merchandise from abroad. However, if the competent authorities are reluctant to accept Alternative III the following suggestion made by one of our foreign missions might facilitate the negotiations. This suggestion would only be practical in countries like Colombia with import or exchange control.

The simplified import recommendation or any other suitable form will continue to be required abroad thereby enabling the Embassy and Country Agency20 to exercise control over imports, shipping space, and consignees. The import recommendation form would not, however, be forwarded to the United States and procedures of Alternative III would be operative in this country. In effect, this would provide for the preservation of control in the field and permit the exporters or suppliers in this country to offer their wares abroad to the same extent as they could prewar within the willingness of the foreign government to grant exchange or issue an import permit.

It is not believed that the additional flow of materials under the simplified procedure will prove sufficient to cause violent fluctuations in commodity prices. It seems desirable to take all practical steps to reestablish direct importer-exporter relationships with a minimum of Government intervention. It is believed here that existing documentation under decentralization tends to stifle trade and to encourage importers in the other American republics to seek other actual or potential sources of supply and exporters in this country to abandon their efforts to preserve their foreign markets and to allow the materials which otherwise might be exported to be diverted to consumption in this country. Looking, therefore, to post-war competition, it seems necessary to enable the United States exporters and suppliers to regain the goodwill of their agents and customers in the other American republics.

It is desired to effect the simplification of procedure October 1, 1943 for those countries that have accepted Alternative III and the Embassy is requested to telegraph the outcome of its negotiations to secure agreement to Alternative III.

Hull
  1. In Colombia, the Superintendencia de Importaciones.