840.51 Frozen Credits 21/48
The Ambassador in Colombia (Lane) to the Secretary of State
[Received May 1.]
Subject: Banco Francés e Italiano (PL), Bogotá.
Sir: I have the honor to refer to the last paragraph of my telegram no. 695 of April 13, 1944,7 concerning the proposal of Dr. Gonzalo Restrepo, Minister of Finance, to take certain steps with reference to the subject bank which would justify its deletion from the Proclaimed List.
Reference is made to the Department’s Airgram no. 1054, dated September 13, 1943, and my despatch no. 2757, dated September 20, 1943,8 concerning the Banco Francés e Italiano.
At a conference held on April 18, 1944, with Mr. Daniels, Counselor of Embassy, and Mr. Derby of the Embassy staff, the Minister stated that the present Colombian Board of Directors had not been appointed by the Colombian Government—as I had been informed and so reported in my despatch no. 2757, of September 20, 1943,—but that the present Board of Directors had been appointed by the Banco Francés e Italiano in Buenos Aires.
Therefore, the Minister explained that he proposed to take the following steps with reference to the Banco Francés e Italiano in Colombia, provided that assurances could be received that if such steps were taken, the bank would be deleted from the Proclaimed List:
- (1)
- Place the bank and its property under fiduciary administration and block its funds.
- (2)
- Replace the present Colombian Board of Directors with a Board of Directors composed of Colombians appointed by the Colombian Government.
- (3)
- Change the name of the bank to some suitable name to be determined; and
- (4)
- Active control and operation of the bank by the fiduciary administrator under the supervision of the Board of Directors.
Dr. Restrepo stated that his object was to “cut the umbilical cord” which joins the local bank with the main office at Buenos Aires, and he felt the foregoing steps would accomplish this purpose and assure that the bank’s operations would not and could not be of any possible aid to the enemy.
[Page 844]In accordance with the instructions contained in the Department’s airgram no. 1054 of September 13, 1943, the Minister was informed that under our present policy the foregoing steps would not be sufficient to warrant deletion of the bank from the Proclaimed List since it would not result in the enemy ownership of the bank being eliminated. Prior to this meeting, a memorandum dated April 17 had been prepared concerning this matter and it was presented to the Minister for his consideration and study. A copy of this memorandum is attached.9 The memoranda to which it refers were transmitted to the Department with my despatch no. 2757 of September 20, 1943.
The Minister agreed that the bank in Colombia has no stock or other tangible evidence of ownership which could be the subject of expropriation, but that it did have a capital investment of some three million pesos which could be seized by the Colombian Government. It was explained that the seizing or blocking of the capital investment of the bank would not mean the elimination of the enemy ownership, and that the most effective procedure to eliminate the bank would be its liquidation, as was done in the case of the branch in Brazil.
As the Department knows, Dr. Gonzalo Restrepo formerly served as Colombian Ambassador to Peru. He stated that he felt the situation of the Banco Francés e Italiano in Peru was analogous to the situation of the Banco Francés in Colombia; that in Peru the Peruvian Government had taken the same steps he suggested, and that the bank had been removed from the Proclaimed List for Peru and was now operating there as the Banco Crédito en Peru, or some similar name, under the administration and control of the Peruvian Government.
It was agreed that the Minister would study the memoranda submitted as to the suggested steps to be taken with reference to this bank, and, in the meantime, this Embassy would determine from the Department exactly and in detail what steps were taken with reference to the Banco Francés e Italiano in Peru prior to its deletion, and its present situation and management.
It will be appreciated, therefore, if the Department will forward to this Embassy as promptly as possible full and complete details concerning the status of the Banco Francés e Italiano in Peru prior to its deletion, the measures taken by the Peruvian Government which led to its deletion, and its present status and the form of control and administration being exercised by the Peruvian Government over its operations.
It will also be helpful if the Department will furnish this Embassy with the same detailed information as to the branch in Brazil of the [Page 845] Banco Francés e Italiano, in view of the expressed interest of Dr. Restrepo in this case also.
Respectfully yours,
Counselor of Embassy