740.21112 RP/41: Airgram

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

A–39. I had a conference on January 15 with Carlos Lleras Restrepo, Minister of Finance, and discussed with him the following matters:

(1)
Replacement Program for the Axis Drug and Chemical Industry. The Minister stated that the recommendations made as a result of the visit of the APC Mission88 to Colombia were now before the National Economic Defense Commission. However, he explained that the Commission did not have its full complement of five members since two of the appointees, Gabriel Turbay and Laureano Gomez, did not accept the appointment. Turbay is now Colombian Ambassador to the United States and Laureano Gomez refused to accept the appointment, presumably for political reasons. The Commission is presently composed of Dr. Esteban Jaramillo, Luis Lopez de Mesa, and Gerardo Molina. It will be necessary to appoint one Liberal and one Conservative in place of Turbay and Gomez, which the Minister stated would be done shortly. He added that after the National Economic Defense Commission finished its study of the matter, it might be referred to the Colombian Consultative Commission. I suggested that this would not be desirable because we were not represented on that Commission—representatives of the Embassy merely meeting with it as observers—and because I did not believe the Consultative Commission would do anything about the matter. I added that I did not believe reference to the Consultative Commission would be necessary since it was a matter of policy for determination by the Colombian Government and to actually start the program it would be necessary for the responsible Government officials to order the liquidation or nationalization of the Axis drug and enemy concerns, presumably by a resolution of the Minister of Finance. Dr. Carlos Lleras [Page 835] Restrepo seemed to agree with my position since he said “all right” when I concluded. In any event, he stated the National Economic Defense Commission would start its consideration of these recommendations on Monday, January 17.
(2)
Banco Francés e Italiano (PL)89 and Giovanni Serventi 90 (PL), Bogotá. I told the Minister that I was anxious to have Serventi removed from the Proclaimed List, if possible, but that as long as he remained with the bank or as long as the bank had any foreign interests, such action would probably be impossible. The Minister stated that he did not believe there was much chance of liquidating the bank or eliminating its foreign interests, and added that Serventi was interested in getting off the Proclaimed List.
(3)
Empresa Hanseádtica (PL), Barranquilla. I told the Minister that this matter had been pending since June, 1943, that we were permitting the Tropical Oil Company to sell it the necessary oil and fuel supplies on a month to month basis, and that, while I did not wish to be in the position of issuing an ultimatum, I felt the Colombian Government would have to take action very soon to eliminate the enemy ownership or I would not be able to justify my position. The Minister stated that there were a number of Colombians who were interested in acquiring this enterprise and asked us to have patience. I remarked that we had been patient since last June. In my presence the Minister instructed his Secretary to call the Caja de Crédito, fiduciary administrator of the Empresa Hanseática, on Monday morning (January 17) and instruct them to tell Werner Backhaus (PL) that he would have to liquidate the enterprise. I do not expect Backhaus to agree to a voluntary liquidation and the only other alternative will be liquidation or nationalization by Government order.
(4)
Instructions to Consultative Commission. I reminded the Minister of the instructions which had been issued to the Consultative Commission in September, 1943, by Dr. Turbay, then Minister of Foreign Affairs, and Dr. Londoño Palacio, then Minister of Finance, eliminating as one of its functions the consideration of the nationalization of enemy firms. I explained to the Minister that I assumed these instructions had been issued because of the bitter attacks being made at that time against the Government over the Handel matter,91 but that in view of the present situation, the Commission did not have much point in existing since the main function for which it was created had been taken away from it. I suggested that new instructions be [Page 836] issued to the Commission and the Minister stated that there were only three really important nationalization cases outside of the Handel, namely, Química Bayer, Anilinas Alemanas and Industria Química Colombia. He added that the other cases were very minor and he thought that as soon as we cleaned up those three and Handel, we could consider the job was done. In replying to my suggestion in this manner, this indicates to me that the Minister of Finance does not intend to issue new instructions to the Consultative Commission. While the Minister did not include a number of important firms, such as Química Schering, Instituto Behring, and others, in his statement naming the most important nationalization cases, I do not attach any particular significance to these omissions since he was talking in generalities.

From the Minister’s attitude I am sanguine that he will take a keen personal interest in a satisfactory solution of the questions involved.

Lane
  1. The Alien Property Custodian’s mission in the fall of 1943 resulted in the appointment of a Colombian-American Committee which canvassed the possibilities of replacing important Axis enterprises (740.21112 RP/55a).
  2. Proclaimed List.
  3. Manager of the Banco Francés e Italiano.
  4. Originally a brewing firm organized in February 1922 as “Handel en Industrie Maatschappij Bogotá” under the laws of Holland. Its domicile and the control of its assets became the subject of an involved dispute after the Nazis took control.