102.895102 Bogotá: Airgram

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

A–267. From Mayer37 to Rubber Development Corporation. I refer to your airgram A–195, March 8, 1944.38 Our problem is not with respect to claims arising under local laws concerning workmen’s compensation, annual and sick leave benefits, insurance against death of employees and dismissal, which are being handled satisfactorily through American International Underwriters in ordinary course. Rather it concerns alleged claims for damages outside the scope of such laws for injuries against which such laws do not purport to protect employees. The particular claim which is causing most difficulty is that of the doctor originally employed to supervise the medical program carried on in connection with Rubber Development Corporation’s road building project. In connection with the reorganization of the program occasioned by the taking out in Washington of the policy with American International Underwriters, and as a result of an investigation then made, this doctor was dismissed. Full payment was made of the cesantia or severance pay to which the doctor was entitled under Colombian law. He is now threatening suit for injury to his professional reputation.

You will understand that this is not a matter regulated by local labor legislation nor one that can be profitably referred to the Ministry of Labor. The claim must either be settled, which we are as opposed to doing as you are, since it is sheer blackmail, or contested in open court, with the attendant publicity.

We appreciate that insurance covering this type of liability is unusual and could not be obtained except on a cost plus basis, but at the same time it is the type of claim which it is most difficult to defend [Page 866] against for political reasons and in which the ability to interpose an insurance company between the Claimant and the agency of the United States Government would be most helpful.38a

We ask that the matter be given further consideration. [Mayer.]

Lane
  1. Jules deWael Mayer, representative of the Rubber Development Corporation in Colombia.
  2. Not printed.
  3. A marginal note at this point reads: “Does this argument apply where immunity is pleaded and allowed? R[ichard] W. F[lournoy].” Mr. Flournoy was Assistant to the Legal Adviser.