711.21/517

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

No. 185

Sir: I have the honor to refer to your cable instruction of October 14, 8 p.m. which embodied the substance of a note which I was authorized to address to the Colombian Minister for Foreign Affairs outlining the attitude of the Government of the United States in the matter of the Treaty of 1914 and the discussions concerning the subsoil problem now pending between the United States and Colombia.

On receipt of this instruction I prepared a memorandum which followed closely the text forwarded by the Department. This I enclosed with a short note to Doctor Guzman, the Acting Foreign Minister, dated the 21st instant, in which I stated that it embodied certain views entertained by the Government of the United States on the subject, the expression of which was given by the Department in the hope that they might be of some assistance to the Colombian Government at this juncture. I added that I saw no objection, from the point of view of my Government, to the publication of these views should the Colombian Government deem such a course expedient, [Page 756] etc. A copy of this note with its enclosure is enclosed herewith. On the 25th instant I had a conversation with the acting Foreign Minister and in the course of it enquired if the memorandum had met with the approval of his Government. He replied that it had and that he was desirous of submitting it to the Chamber of Deputies but that, owing to the very delicate situation now existing here his Government begged that I consent if possible to eliminate the words “treaty” and “agreement” where they occurred in my note and memorandum as these terms would be likely to precipitate a heated argument which might modify the good effect desired by the communication. I agreed to substitute terms such as “international understanding”, “compact”, etc. for those mentioned, otherwise leaving the text practically as furnished by the Department. These changes I judge were unimportant and did not alter the sense of the Department’s communication.

Subsequently, I received a note in reply from the Acting Foreign Minister, dated the 28th instant, copy and translation of which I have the honor to transmit herewith. This note had evidently been carefully prepared with a view to immediate publication and, under the circumstances which call for great caution on the part of the Colombian Government in connection with public statements as to this discussion and in forestalling attacks by its opponents, I think the contents and general tone may not be found unsatisfactory by the Department.

The note states that the Foreign Minister understands from the context of the memorandum, and from previous conversations that the chief question now at issue is as follows: “to determine by means of a diplomatic document the principle to be observed in Colombia and in the United States with respect to the ownership of the subsoil, in relation to petroleum deposits, when the lands belong to citizens of either of the two countries through legitimate title acquired before the present date”. It goes on to state that as the National Congress is now engaged in the discussion of a proposed law, and as the qualification of titles belongs to the judicial power, the Government, animated by an intense interest in reaching an early understanding, has transmitted the Legation’s memorandum to the legislative bodies, and will publish it. The note further states that the Colombian Government does not cease to lament the fact that the matter of the ownership of the subsoil should be allowed to affect the conclusion of the Treaty of 1914, but that the Government also is convinced that a study of the subject in a spirit of equity and justice must bring about a solution satisfactory for the interests of the peoples of Colombia and the United States and for those of the civilized world.

[Page 757]

Both the Legation’s memorandum and the Foreign Office note were published yesterday.

For some time the press has been on the qui vive and has predicted the Government’s intention of making some such announcement which all papers have hailed with relief as a means of throwing light upon a situation with the details of which the public has been uninformed.

The papers of Bogota have displayed a high degree of interest in the Legation’s memorandum and all have published editorials regarding it. I have the honor to transmit herewith a number of press clippings38 on this subject which I regret lack of clerical assistance has not permitted me to have translated. As was to be expected the press, which with two exceptions (El Nuevo Tiempo and La Cronica) is opposed to the Government, has brought every criticism which it could invent to bear upon the statement. Practically all papers represent the situation as exceedingly grave and the general theme is that the attitude of the United States has greatly endangered the safety of Colombia as a sovereign State and displays the imperialistic policy of the great Power of the North etc. The entire situation, including probable motives for hostile press criticism is so obscure for the moment that it is impossible to sum it up with any degree of certainty.

. . . . . . .

I am of the opinion that not too much importance should be attached to the generally critical attitude of the press. From excellent sources I understand that an excellent impression has been made on the public by the publication of the Legation’s memorandum and that the majority of hostile criticism is the outcome of professional and interested politics. …

An interesting feature of the situation has been added by the publication yesterday of a statement signed by some of the most prominent business men and land owners in Bogota, members of the Agricultural Society, and which protests against certain features of the petroleum law which it is understood has now been approved by the Chamber of Deputies. The chief object of this protest is the decision to vest in the Nation those non-metalliferous deposits in private lands which have not been developed within the period of twenty years. This subject was mentioned in my cable message No. 160 of October 29, 12 noon. El Espectador has published an article denouncing the authors as enemies of the country etc.

I have [etc.]

Hoffman Philip
[Page 758]
[Enclosure 1]

The American Minister (Philip) to the Colombian Acting Minister for Foreign Affairs (Guzmán)

No. 56

Excellency: Adverting to our previous conversations relative to the questions now pending between our Governments, I have the honor to enclose herewith a memorandum which embodies certain views entertained by the Government of the United States in connection with the advisability of consum[m]ating a mutual compact as to the vested property rights of our respective nationals in Colombia and in the United States.

These views have been expressed by my Government in the hope that they may be of some assistance to the Government of the Republic and in order to make its position clear in the matter.

I beg to state that I see no objection, from the standpoint of my own Government, to the publication of this memorandum should Your Excellency’s Government deem such a course likely to promote a better understanding of the situation by the people of this country.

Accept [etc.]

Hoffman Philip
[Subenclosure]

Memorandum

It has recently been brought to the attention of the Government of the United States that an obvious lack of information concerning matter under discussion between it and the Government of Colombia threatens to hinder the consum[m]ation of certain agreements which it seemed expedient to conclude with the precise object of removing all misunderstandings that have existed between the two Governments in recent years and of preventing, in so far as is possible, future misunderstandings.

As a matter of fact, the fundamental and underlying motives of the two Governments in concluding the Treaty of April 6, 1914, and of their previous efforts along similar lines was to perfect an agreement which would be satisfactory to the United States and to Colombia, and which would insure the good will of the Colombian Republic.

The accomplishment of anything less than this noble aspiration would not have been satisfying to the people of the United States and, presumably, this is also true with regard to the people of Colombia. It appeared during the summer of 1919 that favorable action by the Congress of the United States and that of Colombia [Page 759] upon the Treaty of 1914, could be brought about if certain modifications were made therein. With this thought and on the theory that such action would promote cultural and commercial relations between the two countries it was determined to make an effort to have the Treaty brought into force. Before this could be accomplished the Colombian Executive Decree of June 20, 1919,39 brought to the fore a question involving future relations of both countries in respect of vested rights of American citizens, since the provisions of this Decree seemed to threaten such American citizens with the loss of subsoil rights acquired by them in accordance with the laws of the Republic of Colombia, It is, perhaps fortunate that this question was raised, though apparently through inadvertence, for had the Treaty of April 6, 1914, been ratified on the theory that it was to remove any unfriendly feeling that might exist, and had such ratification been followed soon thereafter by an enforced diplomatic consideration of the subsoil problem, bad faith on the part of Colombia might have been alleged by the enemies of the Treaty. Moreover, it is believed that with the solution of this question all differences will be cleared away and the basis be laid for the development of one of Colombia’s greatest sources of wealth, in which it should be distinctly understood that the United States is seeking no exclusive or preferential treatment. It would seem that the solution of the subsoil problem might easily be reached. It can be said—to state the case plainly, that petroleum is to be found under both privately owned and national lands. An international understanding framed to set forth how subsoil rights are owned would be one way of solving the question. Such a document might properly state, among other things, that the ownership of private lands acquired up to the time of the ratification of the compact under contemplation, the titles to which did not expressly reserve subsoil rights, should be held to embrace the subsoil minerals, except metalliferous minerals which from time immemorial have been reserved to the State. Thus a private owner of lands under a legitimate title could extract his petroleum at will and market it under the usual governmental regulations.

A very different situation exists with respect to national lands. An arrangement of the kind here alluded to, while recognizing the unquestionable right of the Nation to legislate to suit its Sovereign will, with respect to such lands, might define, for the sake of expediency originated to induce foreign capital to assist in the development of Colombia, the conditions under which all persons [Page 760] might exploit the subsoil products lying under the National lands. These conditions might well be couched in terms calculated to serve as an incouragement to foreign capital which is always timid.

[Enclosure 2—Translation]

The Colombian Acting Minister for Foreign Affairs (Guzmán) to the American Minister (Philip)

Sir: I have the honor to refer to Your Excellency’s note of the 21st instant, in which Your Excellency enclosed a memorandum containing certain opinions of the Government of the United States of America with reference to the convenience of arriving at a mutual international understanding regarding property rights acquired by our respective citizens (nationals) in Colombia and in the American Union; opinions which Your Excellency expresses in the name of Your Government in the hope that they may be useful to the Government of Colombia and to indicate clearly its point of view in the matter.

From the conversations which I have had with Your Excellency in the Palace of San Carlos relative to the questions today pending between our Governments, I understand from the context of the memorandum which Your Excellency has sent me that the question, which is the primordial object of it, reduces itself to the following: viz., to determine by means of a diplomatic document the principle which is to be observed in Colombia and in the United States of America with respect to the ownership of the subsoil, in relation to petroleum deposits, when the land should belong to citizens of either of the two countries through legitimate title acquired before the present date.

As the National Congress is actually occupied with this important matter in the discussion of a proposed law which is intended to regulate entirely the subject of hydrocarbons, and as the qualification of titles of ownership belongs to the Judicial Power, my Government, animated by an intense interest to soon reach a cordial understanding between the people of Colombia and those of the United States of America, has transmitted Your Excellency’s memorandum to the honorable legislative Bodies, and, accepting Your Excellency’s insinuation, will give publicity to said document. The Government, with the aid of public opinion as demanded by the temper of our political organization, hopes to soon arrive at a satisfactory solution of the matter.

[Page 761]

The Colombian Government, however, does not cease to lament the fact that this affair of the ownership of the subsoil, which is a question that belongs as much in Colombia as in the American Union to the domain of the Courts of Justice and to the Legislative Power, should affect the definite conclusion of the Treaty of April 6, 1914,40 but also cherishes the conviction that, studying the subject with an exalted spirit of equity and justice which should guide the Governments of Colombia and of the United States of America, there must be reached a solution satisfactory for the interests of the two peoples and for those of the civilization of the world.

Permit [etc.]

Pomponio Guzmán