810.5051/6–2244

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

No. 3973

Sir: I have the honor to enclose a copy of a letter dated June 19, 194452 addressed to the General Counsel of the Office of the Coordinator of Inter-American Affairs53 by Mr. Bosworth, Counsel for the Coordinator for Colombia and other countries, reporting developments in connection with a law suit brought against the Institute of Inter-American Affairs in Bogotá by Dr. Max Llorente O. The plaintiff is claiming breach of contract by the Institute and is suing for damages in an amount said to be more than $15,000.

When this matter was first brought to the attention of the Embassy last Saturday by Mr. Bosworth, the latter was informed of the recent difficulties of the Rubber Development Corporation and the Embassy’s request of the Minister of Foreign Affairs that no judgment against the Rubber Development Corporation be executed because of that organization’s status as a wholly owned and controlled agency of the United States Government (see Embassy’s despatch no. 3898 of June 9, 194452). It was suggested that perhaps a similar question involving possible immunity from the jurisdiction of local courts might arise in the case of the law suit against the Institute of Inter-American Affairs, and Mr. Bosworth agreed that it would be well to report the facts at once to Washington.

Further information in regard to the law suit against the Institute is awaited by the Embassy, but in the meantime it is believed desirable [Page 874] to bring these recent developments to the attention of the Department. It would be appreciated if the Department would indicate whether or not it desires instruction to be given to Dr. Cadwallader, Director of the Institute, to take no action which would involve recognition of the jurisdiction of the local courts;55 and whether it is desired that the Embassy address a note to the Ministry of Foreign Affairs claiming immunity for the Institute as a wholly owned and controlled agency of the United States Government.

Respectfully yours,

Arthur Bliss Lane
  1. Not printed.
  2. John Lockwood.
  3. Not printed.
  4. A marginal note at this point reads: “But an answer to the suit has already been filed. (See letter from Mr. Bosworth, herewith.) R[ichard] W. F[lournoy]”