COLOMBIA LEGISLATION IN COLOMBIA AFFECTING AMERICAN PETROLEUM INTERESTS-Con. Date and number Subject Page 1931 Feb. 27 (26) Mar. 4 (30) Mar. 5 (2316) Mar. 9 (221) Mar. 24 (2376) From the Minister in Colombia (tel.) Information that petroleum bill was passed by the House in the third debate and returned to the Senate for consideration of the House's modifications. From the Minister in Colombia 14 From the Minister in Colombia (tel.) 15 Advice that President Olaya has signed petroleum bill. 15 Comments on President Olaya's courage and friendly attitude in expediting passage of petroleum bill. 16 Commendation of Minister for his efforts in securing successful passage of petroleum legislation. From the Minister in Colombia 16 Expectation that Rublee will leave Bogotá on March 26 for To the Minister in Colombia Expression of appreciation by President Olaya for Rublee's work in Colombia. 16 17 Information that President Olaya, prior to issuance of oil bill regulations, has sent copy to Rublee for his comments. July 24 (100) From the Minister in Colombia (tel.) 17 Opinion that regulating decree, if published in present form, will be highly satisfactory. July 29 (102) From the Minister in Colombia (tel.) 17 Signature of petroleum regulating decree by the President and the Minister of Industries. July 30 (103) From the Minister in Colombia (tel.) 18 Information that petroleum regulating decree was published SETTLEMENT OF THE BARCO PETROLEUM CONTROVERSY 1931 Jan. 13 (2105) From the Minister in Colombia 18 Information that Mr. George Rublee, Petroleum Adviser to Colombian Government, upon request of President Olaya, has begun his study of the Barco petroleum controversy. 18 Jan. 15 (2117) Jan. 16 (5) From the Minister in Colombia Attempts by Rublee to find satisfactory formula for a contract between South American Gulf Oil Co. and Colombian Government for developing Barco Concession. From the Minister in Colombia (tel.) Rublee's opinion that royalty matter is principal difficulty in Barco case; offer by Gulf of 51⁄2 percent at port, and Government's insistence on 6 percent royalty. 19 COLOMBIA SETTLEMENT OF THE BARCO PETROLEUM CONTROVERSY-Continued Date and number 1931 Jan. 26 (9) Jan. 29 (11) Jan. 30 (5) Feb. 17 (17) Feb. 18 (8) Feb. 25 (21) Feb. 26 Feb. 26 Feb. 27 (10) Mar. 4 (29) Mar. 11 (223) Apr. 16 (50) Subject From the Minister in Colombia (tel.) Rublee's hope that Department can intimate to Gulf Co. the desirability of a quick decision in royalty matter, to facilitate agreement on rest of contract. From the Minister in Colombia (tel.) Rublee's opinion that Gulf must act promptly in Barco matter. To the Minister in Colombia (tel.) Acceptance by Gulf Co. of 6 percent royalty on understanding received from their representative that Colombian Government would thereby accept solution of all points. From the Minister in Colombia (tel.) Memorandum by Rublee (text printed) for transmittal to Gulf Co. regarding five modifications of Barco contract, of which the two most important are: (a) maintenance of agreed minimum production, and (b) fixing of definite term at close of which exploitation must begin. To the Minister in Colombia (tel.) Gulf reply to Rublee's memorandum that it has already agreed to point (a) but feels that it is impossible to agree to point (b). From the Minister in Colombia (tel.) Suggestion that Department use its good offices with Gulf Co. From the Assistant Chief of the Division of Latin American Af- From the President of Colombia to the Colombian Legation (tel.) To the Minister in Colombia (tel.) Understanding that Gulf Co. will accept first recommendation on certain conditions and will offer counterproposal on second point. From the Minister in Colombia (tel.) Information that Barco contract was signed March 4. To the Minister in Colombia Commendation on use of good offices in securing successful settlement of controversy. From the Minister in Colombia (tel.) Indication that present Congress will not ratify contract without modifications; President's desire to close Congress and resubmit contract in new Congress in July, if Department does not object. COLOMBIA SETTLEMENT OF THE BARCO PETROLEUM CONTROVERSY-Continued Opinion that President should close Congress at once in view of unfriendly elements in power. 1931 Apr. 18 (51) From the Minister in Colombia (tel.) Apr. 20 (22) June 20 (44) To the Minister in Colombia (tel.) Explanation that matter of adjournment of Colombian To the Minister in Colombia (tel.) Authorization, upon signature of contract, to express informally to President Olaya the Department's gratification at satisfactory settlement of question. (Footnote: Signature, on June 20, of bill approving contract.) GOOD OFFICES OF THE DEPARTMENT OF STATE IN RESOLVING DIFFERENCES BETWEEN THE COLOMBIAN GOVERNMENT AND AMERICAN BANKERS 1931 Mar. 12 From the Minister in Colombia (tel.) (36) Mar. 16 (16) Mar. 17 (39) Mar. 18 (2359) May 12 (59) May 14 (26) May 16 (61) Refusal of American bankers to make promised payment of $4,000,000 on grounds that British Minister is insisting on prior payments on Supía Marmato claim. To the Minister in Colombia (tel.) Information that $4,000,000 will be paid to Colombian Government March 16; summary of bankers' defense, explaining a confusion of two credits involved in the settlement of the claim. From the Minister in Colombia (tel.) Belief that President's prestige has suffered and his confidence in American businessmen has been shaken because of bankers' action; concern that present measures affecting American business interests will not receive President's wholehearted support. From the Minister in Colombia Comment that efforts of Department and diplomatic missions to improve relations with Latin American Republics may be almost nullified by prejudicial activities of American business concerns. From the Minister in Colombia (tel.) President Olaya's report that bankers are refusing payment of second $4,000,000 until budget is reduced again, which is impossible; prospect that he will be forced to resign if American bankers fail to cooperate; desire that bankers be made to understand situation. To the Minister in Colombia (tel.) Discussion with National City Bank official, who advised that balanced budget was not a new condition but part of original agreement; instructions to report further developments. From the Minister in Colombia (tel.) President's agreement with bankers' figures for balanced budget, but inability to accede to desire for monthly revision of budget in accordance with revenues. COLOMBIA GOOD OFFICES OF THE DEPARTMENT OF STATE IN REsolving DiffeRENCES THE COLOMBIAN GOVERNMENT AND AMERICAN BANKERS BETWEEN Continued Date and number Subject Page 1931 June 11 (80) June 19 (83) June 22 (45) June 23 (88) From the Minister in Colombia (tel.) 34 Belief of local representatives that New York principals will reach final favorable decision within a few days. From the Minister in Colombia (tel.) 34 New condition desired by bankers, to increase interest rate on renewal of whole loan on June 30; concurrence in President's opinion that such an increase now would have disastrous effect on present friendly attitude toward United States. To the Minister in Colombia (tel). Explanation of bankers' position in requesting increase in interest; their willingness not to insist on increase provided President makes some gesture toward meeting amount of expenses involved in the negotiations. From the Minister in Colombia (tel.) 35 36 Belief that President would resent having to pay any part of bankers' expenditures. June 26 (47) To the Minister in Colombia (tel.) 36 Advice from bankers that contract for additional $4,000,000, will be signed on June 29, and the outstanding credits renewed for 90 days. From the Minister in Colombia (tel.) Payment to Colombian Government of $4,000,000; 90-day renewal of outstanding credits at same interest rate with the understanding that question of increased rate will be taken up again September 30. To the Minister in Colombia (tel.) Advice from Mr. George Rublee, Financial Adviser of Colombian Government in United States, that Federal Bank is not inclined to make a proposed loan to the Banco de la Republica since the receipt of an urgent telegram from President Olaya requesting $12,000,000 loan to National Government to meet foreign debt services; inquiry as to political developments behind President's action. From the Minister in Colombia (tel.) Explanation of present difficult financial situation in Colombia; President's feeling that he has failed to receive from United States the help he deserved for his many successful efforts on behalf of American interests. To the Minister in Colombia (tel.) Department's position that it cannot exert pressure on private banks, nor on Federal Reserve system; instructions to explain position to President Olaya and to express hope that he will not take any impulsive measures which will adversely affect Colombia's future credit standing. CUBA POLITICAL UNREST IN CUBA Date and number Subject From the Ambassador in Cuba (tel.) Meeting between President Machado and General Menocal, leader of non-cooperating faction of the Conservative Party, to discuss Cuban political problem; refusal by Ambassador to participate in conference. Page 41 From the Ambassador in Cuba 41 Report of minor political disturbances and efforts of authorities to suppress them. Jan. 16 (513) From the Ambassador in Cuba 43 Report of political events and extraordinary measures adopted by authorities to maintain order; President's suspension of negotiations with the Opposition. From the Ambassador in Cuba From the Ambassador in Cuba (tel.) From the Ambassador in Cuba (tel.) Approval by the President of law authorizing indefinite suspension of constitutional guarantees. To the Ambassador in Cuba (tel.) 44 Conversation with President Machado regarding political and economic situation of Cuba. 46 Congressional approval of measure authorizing indefinite suspension by the President of constitutional guarantees. 47 (27) Feb. 13 (38) 47 Instructions to investigate status of political prisoners, especially in regard to possible violations of civil rights. From the Ambassador in Cuba (tel.) 47 Opinion that Government has apparently not exceeded its authority in regard to rights of individuals. Continuation of negotiations between the President and Opposition groups on basis of proposed changes in Cuban Constitution. From the Ambassador in Cuba (tel.) Further report on political negotiations and plan for joint meeting between leaders of various parties. From the Ambassador in Cuba Information that Military Court has exonerated Major Espinosa, President Machado's former Aide de Camp, of all responsibility in connection with the placing of a bomb in the palace on February 23. Memorandum by the Assistant Secretary of State Conversation between the Secretary of State and the Cuban Ambassador regarding Cuban political situation; U. S. attitude of responsibility under Platt amendment. From the Ambassador in Cuba Memorandum, April 10 (excerpt printed), regarding results of conferences with political leaders, and efforts to persuade the President to find a compromise reform plan. To the Ambassador in Cuba (tel.) Instructions not to participate in any way in negotiations between the Opposition and the Government. 50 50 50 509 51 55 56 56 |