811.20 Defense(M)Colombia/472: Telegram

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

142. Reference your 71, January 18, 8 p.m.41 Final negotiations for air-rubber agreement delayed pending termination of over-all agreement with Colombian Government on strategic material program. Present status as follows: Colombian Government through Ministry of War has submitted revised version of contract which with four exceptions is substantially identical to original draft. The Colombian contract in addition is based on principle of complementary agreements to Habana and Rio Conference resolutions (same principle as over-all strategic material negotiations). Four exceptions are:

1.
Requirements that Colombian engineers draw all plans and specifications.
2.
United States pay for purchase, lease or other indemnities including legal costs for any private lands used as sites.
3.
Requirement that all improvement, buildings, equipment, material, et cetera, used in programs revert ipso facto without cost to Colombian Government at termination of contract.
4.
The Colombian Government and Defense Supplies42 each have right to terminate contract on 6 months’ notice at end of 4 years, otherwise 10 years’ duration.

It is our belief that all of these four points can be revised to conform with terms in the original draft without difficulty.

Lane
  1. Not printed.
  2. The Defense Supplies Corporation, a U.S. Government purchasing agency operating under the Secretary of Commerce.