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URUGUAY

POLICY OF THE DEPARTMENT OF STATE OF NON-INTERFERENCE WITH USE BY FOREIGN BORROWERS OF LOANS OBTAINED IN THE UNITED STATES

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1931

Sept. 30 (47)

To the Minister in Uruguay

Reply to Legation's telegram concerning International Telephone and Telegraph Corporation's difficulties in obtaining a contract from Uruguayan Government, and to Legation's suggestion that any funds obtained in the United States should not be paid on contracts awarded to other than American firms. Advice that Department continues its policy of non-interference in the usage of funds obtained in the United States by foreign borrowers.

YUGOSLAVIA

Page

1048

THE PROTECTION OF NATURALIZED AMERICAN CITIZENS WHO RETURN TO THEIR NATIVE COUNTRY AND ARE IMPRESSED INTO MILITARY SERVICE

1931 Jan. 19 (976)

Sept. 4 (315)

1932 Jan. 30 (1252)

From the Minister in Yugoslavia

Information that Yugoslav Government considers Peter Nikolich, naturalized American citizen, as a Yugoslav subject and not eligible for release from the Army until the completion of required military service; that this position is based on Yugoslav law for the organization of the Army and Navy (excerpt printed).

To the Minister in Yugoslavia

Instructions to enter a protest as a matter of principle with the Yugoslav Government against induction into military service of naturalized American citizens; also to take up the question of concluding a naturalization treaty between the Ünited States and Yugoslavia.

From the Minister in Yugoslavia

Yugoslav disinclination to enter into a naturalization treaty; possibility, however, of an informal understanding whereby naturalized Americans of Yugoslav origin will be free from molestation on visits to Yugoslavia.

1050

1054

1057

COLOMBIA

LEGISLATION IN COLOMBIA AFFECTING AMERICAN PETROLEUM 1 INTERESTS 1

821.6363/848a

The Assistant Secretary of State (White) to Mr. George Rublee 2

WASHINGTON, May 23, 1930.

DEAR MR. RUBLEE: As Mr. Cotton will be away this afternoon he asked me to write to you confirming the appointment with Doctor Enrique Olaya, Colombian Minister and President Elect of Colombia, for dinner on Tuesday evening, May 27, at 7:30 p. m., at the Savoy Plaza Hotel in New York City.

Doctor Olaya is very anxious to settle equitably the so-called Barco Concession and also the matter of petroleum legislation in Colombia, and to this end he is anxious to get competent and disinterested advice, especially from someone who is in the confidence of the Department. We have consequently suggested you and he is enthusiastic about the suggestion. It will probably require your going to Bogotá for perhaps three months when this question comes up next in the Colombian Congress.

What Doctor Olaya wants, of course, is unbiased advice so that the legislation will be fair to the companies but will take care of the interest of the country, and he wants somebody who would act somewhat more or less as a buffer between the oil companies and the Colombian Government; somebody who, the companies will know, if he tells them that they are too exacting in their demands or asking something which the country obviously can not give them, that his opinion will be respected by the Department, and that they will have to accept his decision because they will not get support from the Department over his head. Doctor Olaya is very anxious to conclude an agreement with you, I think, on this basis. He stated that the Government does not have much funds for this but I am sure they will be able to make a reasonable arrangement with you.

With kindest regards and best wishes,
Yours very sincerely,

FRANCIS WHITE

1For previous correspondence concerning protection of interests of American oil companies in Colombia, see Foreign Relations, 1928, vol. II, pp. 588 ff. Washington lawyer, member of firm of Covington, Burling & Rublee. Joseph P. Cotton, Under Secretary of State.

* See pp. 18 ff.

1

821.6363/899: Telegram

The Minister in Colombia (Caffery) to the Secretary of State

[Paraphrase]

BOGOTÁ, September 19, 1930-5 p. m. [Received 8 p. m.]

116. President Olaya handed me confidentially the petroleum bill as drawn up by the Minister of Industries and the Congressional Committee. He asked me for my observations. He does not want to present it to Congress without the approval of this Legation.

CAFFERY

821.6363/901: Telegram

The Minister in Colombia (Caffery) to the Secretary of State

[Paraphrase]

BOGOTÁ, September 22, 1930-5 p. m. [Received 10:26 p. m.]

117. I think that the petroleum bill on the whole is very good. It is much better than Law 120 of 1919. Urueta examined it and recommended changes which the President accepted.

It will please some of our companies more than others. Therefore, I think it would be unwise for me to make the observations requested. (My 116, September 19, 5 p. m.) This morning I was requested by President Olaya, through Urueta, to telegraph urgently to the Department of State asking George Rublee to come here at once. If agreeable, will Rublee telegraph terms of contract and authorization for the American Commercial Attaché here to sign the contract for him? (The purpose of this is to avert later difficulties with the comptroller.) The petroleum bill as now written will be presented to Congress before Mr. Rublee's arrival in order to avoid the charge that an American lawyer wrote it. President Olaya wants him to arrive in Bogotá as soon as possible while the bill is under consideration especially in connection with the contentious title question, and also for the Barco matter.

CAFFERY

821.6363/911

The Minister in Colombia (Caffery) to the Secretary of State No. 1655

BOGOTÁ, September 23, 1930. [Received October 8.1

SIR: Referring to my telegram No. 116 of September 19, in which I spoke of the new oil bill, I have the honor to transmit herewith copies

of the bill which was handed to me on September 19 by President Olaya Herrera, together with a copy of the memorandum of comments thereon prepared for Dr. Olaya Herrera by Dr. Carlos E. Urueta."

I am not forwarding translations of these documents for the reason that the comments contained in Dr. Urueta's memorandum are to be included in a revised oil bill which Dr. Urueta is now preparing at the request of Dr. Olaya: Dr. Olaya told Dr. Urueta yesterday that he preferred having him do it; he (Olaya) did not feel competent to do

So.

As soon as Dr. Olaya handed Urueta the bill, he (Urueta) came to see me and said that he would hand in no comments which failed to meet with my approval. He has let me know today that he is working on the revised edition of the bill, but will not hand it in to Olaya until I approve. As set out in my telegram No. 117 of September 22, I do not deem it wise to give Olaya direct any observations on the bill

...

The representatives of the American oil companies will all be very much disappointed when they find out that they are not to have an opportunity of expressing themselves on the bill before it is presented to Congress; but both Olaya and Urueta now feel that this would be very unwise, in view of the fact that charges have been made alleging that American oil interests have had too much influence in the framing of the bill: and Olaya and Urueta fear that, were the public to hear that American concerns had been consulted, the result would be prejudicial for the chances of the bill's passing; and incidentally, they do not rely on the discretion of some of the oil representatives here. Respectfully yours, JEFFERSON CAFFERY

821.6363/901: Telegram

The Acting Secretary of State to the Minister in Colombia (Caffery)

[Extract]

WASHINGTON, September 26, 1930—6 p. m.

50. Your 117, September 22, 5 p. m. George Rublee prepared to sail on first available steamer for Buenaventura, which is Santa Teresa sailing October 14, on basis following contract which Commercial Attaché is authorized to sign on his behalf:

'Neither printed.

COTTON

821.6363/925

The Minister in Colombia (Caffery) to the Secretary of State

No. 1724

BOGOTÁ, October 4, 1930. [Received October 15.]

SIR: Referring to my recent reports concerning the new oil bill, and with special reference to my despatch No. 1695 of September 27,5 in which I reported that Dr. Olaya was considering calling Mr. Haskell of the Texas Oil Company to come to see him, I have the honor to report that Dr. Olaya summoned Mr. Haskell on the 2nd instant, and, in the presence of the Ministers of Government and Industries, had a two hour and a half conference with him; a conference which was followed by another two and a half hour conference yesterday and is to be succeeded by another similar one on Monday next. During a part of the first conference, Dr. Luis Felipe Latorre, attorney of the Unión Colombiana de Petróleos, was present. Although Dr. Olaya has not yet shown Haskell the bill, he has asked his opinion on all the main points involved, and especially on titles, royalties, taxes and pipe-lines; Haskell assures me that he has given them his views in full; he seems satisfied that he has made considerable progress.

(Along the lines of his revised policy of talking to American oil men on the bill, Olaya is seeing Mr. Dodson of the Andian National Corporation today at 12:30: Mr. Dodson, however, knows nothing of what Dr. Urueta and Mr. Metzger have already done about the bill.) Respectfully yours, JEFFERSON CAFFERY

821.6363/929

The Minister in Colombia (Caffery) to the Secretary of State

No. 1740

BOGOTÁ, October 8, 1930. [Received October 22.]

SIR: Referring to my previous reports concerning the progress of the oil bill, and with special references in that connection to my despatch No. 1724 of October 4, in which I spoke of visits of Mr. Haskell of the Texas Oil Company at the Presidential Palace, I have the honor to report that Mr. Haskell continued his discussions with President Olaya and the Ministers of Government and Industries on Monday last and is to see them again today. He believes that he is continuing to make progress.

As set out in the last paragraph of my despatch No. 1724 of October 4, Dr. Olaya saw Mr. Dodson of the Andian National Corporation on

Sa Not printed.

H. A. Metzger, representative of the Tropical Oil Company.

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