Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

740.21112 RP/42: Telegram

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

Bogotá , February 1, 1944—11 a.m.
[Received 5:15 p.m.]

173. Department’s number 138, January 29. I shall see the Minister of Finance within the next few days and will impress upon him the importance of an early decision with reference to the replacement program for the Axis drug and chemical concerns.

With reference to the United States concerns making their own arrangements in Colombia without regard to the possibility of the replacement of the Axis concerns by the Colombian Government, I see no objection in the majority of companies involved since any Colombian companies formed by the United States concerns could work into the replacement program. At Mr. Shaw’s⁹² recent conference with Doctor Carlos Lleras Restrepo (reference my despatch 3279, January 28, 1944⁹³) the Minister stated that he perceived no objection to United States Schering going ahead and forming a Colombian company to distribute its products and added that he did not feel that such action would be in conflict with the proposed replacement program. However, in the case of Schering products, the Colombian Government would probably not want a participation in the company to be organized but in companies such as Bayer handling antimalarial products, the Minister indicated that the Government would want a participation interest in view of the importance of these products to the national health. In such case complications might be presented if the United States concern goes ahead and forms its company before the adoption of a definite program by the Colombian Government. However, if it appears that action on the replacement program will be delayed for any extensive additional period of time, I feel that it would be well for the United States concerns to proceed with their own arrangements in Colombia for the reasons stated in my A–1035, December 20, 1943.⁹⁴

Lane

92. Oliver Shaw, Foreign Sales Manager for Schering Corporation of Bloomfield, N. J.
93. Not printed.
94. Not printed; the Ambassador reasoned that in cases delayed by the desire of the Colombian Government to participate in a reorganization, it would be better for United States firms to proceed with their own arrangements in order to eliminate Axis interests by competition (740 21112 RP/40).