810.5051/38: Airgram
The Ambassador in Colombia ( Lane ) to the Secretary of State
[Received January 28–—3 p.m.]
A–50. The representatives of Rubber Development Corporation and FEA,34 together with legal counsel, Dr. Roberto Urdaneta Arbelaez,35 have discussed with me the question of insurance for the procurement agencies of the United States Government operating in Colombia.
The present insurance, which is on a cost plus commission basis and carried by the American International Underwriters, provides for complete workman’s compensation and public liability coverage, but lacks coverage against civil suits in general and particularly suits brought or threatened by employees for wrongful dismissal, either presumed or in fact. In view of the necessity of avoiding unfavorable publicity, this condition leaves agencies practically helpless against blackmail or the activities of unethical attorneys. Agencies’ counsel strongly advises that insurance coverage against such actions be obtained in order to enable agencies to make insurance company agents for the settlement of claims of this nature or eventually defendants of court actions which claimants might institute.
While it is true that, as agencies of the United States Government, these agencies may not be sued without their consent, this very fact makes possible claims by unethical parties of inability to exercise their constitutional rights. The United States Government, therefore, is [Page 865] in a vulnerable position for unfavorable publicity and embarrassment from people unfriendly to it, who will readily capitalize on situations of this character.
I strongly urge that the Department approach the heads of the agencies concerned with the view to rectifying this condition immediately. The agencies concerned are: Rubber Development Corporation, RFC36 and subsidiaries, and the FEA.