740.00112A EW/4–446: Airgram
The Ambassador in Colombia (Wiley) to the Secretary of State
[Received April 15—8:55 a.m.]
A–126. Reference is made to the Department’s secret circular airgram of March 4, 1946,34 in which the Embassy was requested to secure certain information regarding the progress being made toward the elimination and expropriation of spearhead firms in this country. In this connection reference is also made to the Embassy’s despatch no. 1423 of February 20, 1946,34 transmitting Law 39 of December 14, 1945, concerning the expropriation of German assets in order to provide for the payment of indemnifications and reparations caused by the war with Germany, and to this Embassy’s despatch no. 1490 of March 6, 1946,34 transmitting Resolution no. 37 of February 28, 1946.
It will be remembered that, under Law no. 39, the nation has the complete potential ownership of these firms, and, under Resolution no. 37, the fiduciary administration of these firms is terminated. However, the Embassy has been informed by Dr. Bernal Cadena, head of the Stabilization Fund, that the nation has not, in fact, taken over the ownership of these firms and that, under Article II of Resolution no. 37, the Stabilization Fund is continuing the fiduciary control of the subject firms.
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With regard to the second and third parts of the Department’s telegram under reference,35 it will be noted from the above that the process of liquidation of the subject firms is beginning to proceed more rapidly. Dr. Castañeda has assured the Embassy that most of the firms will either be liquidated, sold, or completely expropriated within the month of April.
The effectiveness of the local controls has been strengthened considerably by the above mentioned Law 39 and Resolution 37, and further measures have been taken, upon which the Embassy will keep the Department informed.
With regard to the fifth item in the Department’s telegram, it is the opinion of this Embassy that the prestige of the Proclaimed List remains high. This is shown by the fact that individuals on the List are continually coming to the Embassy seeking deletion, and many Colombian firms check with the Embassy before hiring any individual who was or is on the Proclaimed List. It may be further stated that [Page 663] the Colombian Ministry of Foreign Affairs frequently asks for the Embassy’s recommendation of an individual prior to the granting of Colombian citizenship.
The Embassy will keep the Department informed of any change in the status of any of the remaining 13 firms, and of any further developments in the action taken by the Colombian Government to hasten their liquidation.