Office of the Historian

CO–22. Telegram from the Acting Secretary of State to the Embassy in Colombia1

123.
Washington, September 11, 1959, 6:59 p.m.

Copete2 and Franco3 presented Eximbank detailed estimate $118 million balance of payments deficit July 1959 through December 1960. In general tentative terms Copete broached possibility following treatment: $20 million by use of IMF resources; $25 million from U.S. commercial banks; $23 millions by rescheduling 1960 payments due Eximbank; $20 million new Eximbank credit for trucks, buses, taxis; $30 million by use of Colombia’s own foreign exchange reserves. In addition to above, considering possible new $15 million standby arrangement with IMF.

Eximbank has expressed willingness discuss problem further with Colombians but has pointed out its reluctance continue engage in balance payment operations. Bank has advised Copete he should first work out IMF drawings and standby.

DILLON (Acting)
  1. Source: Department of State, Central Files, 821.10/9–1159. Official Use Only. Co-drafted by Richard A. Poale of the Office of West Coast Affairs and Charles J. Shoban of the Export-Import Bank; signed by Silverstein.↩
  2. Ignacio Copete Lizarralde, Manager of the Colombian Central Bank.↩
  3. Jorge Franco Helguin, Chief of the National Planning Department in the Colombian Government.↩