Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

468. Memorandum of a Conversation, Department of State, Washington, October 7, 1957¹

Washington, October 7, 1957

SUBJECT

• PL 480 Program and Relief Supplies for Colombia²

PARTICIPANTS

• Ambassador John Moors Cabot
• CSD: Howard M. Gabbert, Lucian L. Rocke, Jr.
• OSA: Andrew B. Wardlaw, Albert H. Gerberich
• ICA: Scudder Darrow
• Agriculture: Saul Katz³

The Ambassador said he is more than ever convinced of the imperative need of supplying Colombia with vitally needed food supplies since he has been following the descent of coffee prices in the New York market over the past two or three weeks. Less dollars from coffee means less dollars to pay Colombia’s debts, lower wages, less purchasing power for the masses, and more unemployment.⁴

He said he had spoken last Wednesday with Colombian Foreign Minister Sanz de Santamaria and with representatives of CARE in New York City. The Foreign Minister told him the Colombian Minister of Agriculture is reluctant to request a Title II or Title III program, fearing that it would jeopardize Colombia’s chances under Title I. He also wants to guard against bringing into Colombia and giving away food that would compete with the local product. The Ambassador pointed out to him that any Title III program would be a relatively small affair, and all of it would go only to the needy. He said he believes the Foreign Minister would now be glad to receive Title III help if it doesn’t cut across Title I.

The Foreign Minister also urged that Colombia be treated well so far as cotton is concerned, saying he is afraid the textile mills will have to shut down otherwise and throw people out of work.

Mr. Katz said he could tell the Ambassador confidentially that the commodity people in Agriculture are working on a proposal that would make available to the Colombians a certain amount of cotton. He would not say how much, but said he thought he would know definitely shortly.

Mr. Katz also went into the question of scheduling the most urgent priorities first. He said Colombia is not in the first priority, but is near the top of the second priority. It is therefore one of the countries on which action can be expected to be taken in a reasonably short time.

The Ambassador said he had learned that Mrs. Lowry, head of CARE in Colombia, has been in New York and brought with her signed agreements with various Colombian departments (states) to increase the size of school lunches. On this subject Mr. Darrow and Mr. Katz remarked that they were sure that if these programs were recommended to it by ICA and Agriculture the Interagency Committee would give them its approval. Mr. Darrow said that the annual programs of UNICEF, CARE and CRS have already been approved by ICA, and it is hoped that the Interagency Staff will clear them within thirty days. If so, that will take care of everything up to the end of the present year. He said these agencies estimate they are reaching 5 of the Colombian population.

The Ambassador said he was interested in learning what further aid can be given. He said he would prefer to have any program administered under CARE and CRS, as they are doubtless from experience in these matters more efficient than the Colombians would be. These agencies have told him that if specific programs are proposed and ICA agrees to pay the freight to Colombia they are ready to proceed with them.

Mr. Darrow said this would depend on the ability of the Colombian Government to meet transportation expenses. The Colombians are at present paying ocean freight on these supplies. Some other countries are paying half the freight. In some cases the US is paying it all. He said he would like to know if there are circumstances which would make it difficult, or impossible, for Colombia to bear the freight costs.

The Ambassador said we have a serious situation in Colombia, which is having a hard time to pay its debts and balance its budget. He might possibly be able to convince the Colombians that they should pay the full ocean freight, but he could not promise this. The important point to him was that the relief program should not be put in jeopardy on that account. He said he realized we must anticipate some delay in implementing the Title I program. In view of the extraordinary circumstances he would like very much, if possible, to work out another program in Title III through CARE and CRS. He proposed, as soon as he returns to Bogotá, to call in the CARE and CRS representatives and tell them that, if the situation is the same as they reported to him when he left Bogotá last month, they should prepare reports setting forth their planned increases in their programs. He for his part, working in conjunction with the USOM Mission in Bogotá, will then recommend to the Department speedy favorable action on these proposals. If he finds that it is impossible for the Colombian Government to pay the freight charges, he will recommend strongly that Colombia be added to those countries for which freight in such cases is prepaid by us. In the meantime he urged that the Title I program be worked out up here as expeditiously as possible.

The Ambassador asked whether, provided a case is convincingly made out for the need for an increased program and for the desirability of our assuming the transportation costs, there might be any other major obstacle in the way. Mr. Darrow and Mr. Katz said they could think of none.

1. Source: Department of State, Central Files, 821.49/10–757. Confidential. Drafted by Gerberich.
2. Reference is to the Agricultural Trade Development and Assistance Act of 1954 (P.L. 480), approved July 10, 1954; for text, see 68 Stat. 454.
3. Saul M. Katz, a Program Coordinator in the Foreign Trade Programs Division, Department of Agriculture.
4. A memorandum of conversation, dated September 13, records that Cabot presented a report on food shortages in Colombia to representatives of various agencies including the Departments of State and Agriculture, and the International Cooperation Administration. According to the memorandum, the Ambassador stated that there had been riots and an attack on a warehouse in Barranquilla state, and he feared that a continuation of the troubles might lead to dissolution of the government and a return to military dictatorship. The memorandum further records that Cabot stated “he did want to urge that we send the Colombians the foodstuffs they ask” under the provisions of P.L. 480. (Department of State, ARA/REA Files: Lot 63 D 87, P.L. 480 Colombia)