811.5017/4–545: Telegram

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

510. Embassy yesterday received Federation’s formal written acceptance of coffee prices as contained in Department’s telegram No. [Page 880] 360, March 29, on basis of landed weights. Following is a summary of Federation’s revised statement of terms of sale transmitted with its letter of acceptance:

Federation will sell only coffee from past crops and not from present crop.
Federation will be paid by means of 15–day sight drafts drawn against New York principals and accompanied by shipping documents.
Liquidation will be made on basis of accepted weights at United States ports.
Purchasers will inspect coffee at port of embarkation and coffee delivered there by the Federation will be considered as satisfactory. Any claims made by Army will be adjusted as in paragraph 5 below.
Any amounts which the Army rejects will be cancelled or replaced according to the Army’s wishes, the Federation receiving all rejected amounts in New York.
The Federation will only reimburse purchases of rejected coffee for the amounts paid for the coffee plus the freight stipulated in the respective shipping documents and the usual maritime insurance.
The Federation will advise purchasers of the respective sales prices in a separate letter.

Federation has requested Embassy to inform American importers of these new conditions and that Federation is prepared to make shipments at the opportune time. The Department is requested to inform six importers of foregoing conditions. Spanish text of Federation’s letter of acceptance and condition will be forwarded by airmail today.74

Repeated to Rio.

  1. Copy transmitted to the Department in despatch 433, April 5, from Bogotá, not printed.