CO–7. Letter from the Assistant Secretary of State for Inter-American Affairs (Rubottom) to Milton S. Eisenhower1

Dear Dr. Eisenhower:

I am rushing this letter to you by special delivery in the hope that you will receive it before you meet with the Colombian Foreign Minister.2

We anticipate that the Foreign Minister may take up some of the following matters with you:

1.
Commercial Arrears. Colombia has accumulated a backlog of $470 million in commercial debts over the past four years or so, due in large part to careless financial policies of the previous administration. Last year arrangements were made to liquidate about $450 million of this through funding agreements, a credit of $60 million from the Eximbank, and other means. Colombia is finding it extremely difficult to meet payments due on this backlog and is hoping to obtain a long-term loan to refund the commercial arrears debt. You might tell him, if this is brought up, that we realize the heavy burden of debt they carry and appreciate the measures they have already taken to maintain financial [Typeset Page 317] stability, that we have shown our willingness to be of assistance by the Eximbank loan granted last year, and that we hope to continue to be helpful within the limits of available resources.
2.
Economic Development Loans. The Colombians have indicated, without being specific, that they plan to seek loans for economic development projects. The Eximbank may wish to consider their applications if their stabilization program shows further [Facsimile Page 2] progress, but we cannot speak for the Bank. The IBRD has its own policies. The DLF might be interested in applications that meet its criteria, but funds for this purpose are limited.
3.
Coffee Prices and Quotas. 85% of Colombia’s foreign exchange is derived from sales of coffee abroad. Coffee prices have been falling, and every cent that coffee drops on the New York Market means a loss to Colombia of $8 million in foreign exchange. The Colombians may urge us to assist them in stabilizing coffee prices and imposing coffee quotas. We are now studying various possibilities of cooperating on the coffee problem, but these have not yet been cleared through the Government, and until such time as we have reached full agreement, no hopes should be aroused in the Colombians.
4.
Swedish-Built Destroyers. The Colombians will have two modern destroyers ready for delivery from Sweden about May 1, on which they still owe $7 million. The Foreign Minister has suggested that we provide the Colombian Navy with these vessels under the MAAG agreement by taking over the payments due. There is no way that we can do this. We hope the ship loan bill recently introduced in Congress will enable us to transfer two destroyers to Colombia, which would give them some flexibility in deciding what to do with the Swedish-built ones.
5.
Religious problem. The Protestant problem has two important phases:
(a)
The closed churches and schools, both inside and outside of Mission Territory, have not been reopened, with four or five exceptions. About 100 churches and chapels inside Mission Territory and 40 churches and chapels outside Mission Territory remain closed. About 200 Protestant schools are still closed. Our Ambassador has taken up this question with the Foreign Minister on several occasions, urging that a formula be found to permit the churches and schools to be reopened, but the Foreign Minister says that the clergy and masses are opposed to any such action and it is very difficult for the Government to intervene for this reason. The Ambassador has warned him that if nothing is done the success of his mission in the United States may be endangered.
(b)
Violence. Sporadic cases of violence against U.S. Protestant missionaries still occur from time to time. Recently [Facsimile Page 3] the residence of a U.S. missionary in Supfa, Caldas, was dynamited following attacks upon her from the pulpit by the local priest. Our Embassy brought this case to the attention of the Foreign Minister, expressing some surprise that no action was taken against the priest for this. The Government rarely [Typeset Page 318] takes effective action against those responsible for stirring up anti-Protestant violence, but usually promises protection.

It is felt by the Department that the matter of the closed churches could be adjusted by the withdrawal of a circular letter of the Ministry of Government under the previous administration, which ordered the closing of the churches in Mission Territory, especially since its legality and accuracy have both been questioned. Should this be done, the situation would revert to its prior status, worship being permitted in churches and chapels although public proselytizing and propaganda would be prohibited. The problem of the schools, especially those functioning outside of Mission Territory, would be greatly alleviated if the regulations governing the processing of licenses were applied promptly and without discrimination.

I hope that this information will give you sufficient background information to be useful to you in your conversation with the Foreign Minister.

Sincerely yours,

R. R. Rubottom, Jr.
  1. Source: Department of State, Rubottom Files, Lot 60 D 553, “Colombia 1958.” The source text is a carbon copy bearing Rubottom’s typed signature.
  2. Colombian Foreign Minister Carlos Sanz de Santamaria visited the United States during the latter part of April 1958. Documentation concerning his visit is in file 033.2111.