Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume VI

811.20 Defense(M)Colombia/528

The American Ambassador in Colombia (Lane) to the Colombian Acting Minister for Foreign Affairs (Gonzalez)⁵⁶

No. 161

Bogotá, February 2, 1943.

Excellency: I have the honor to acknowledge the receipt of Your Excellency’s note no. CM. 174 of February 2, 1943, reading in translation as follows:

“In accordance with Resolution XV of Havana,⁵⁷ approved by Law 20 of 1941 of the Republic and with a desire to making more effective its contribution to the defense of the continent, the Government of Colombia has found it desirable to introduce the following modifications and amplifications with respect to the regulations regarding the exploitation of rubber and to the agreement in force between the Caja de Crédito Agrario, Industrial y Minero and the Rubber Reserve Company:

• “1. The Government of Colombia is agreeable to the constitution of a mixed commission charged with directing the general policy regarding rubber and supervising its application. This commission would be composed of three representatives of the Government of Colombia and three of the Government of the United States of America.
• “2. The Government of Colombia is agreeable to allow any persons or firms to act as purchasers of rubber, perillo, balata and other natural gums at prices which are not lower than the minimum prices authorized by the Government, it being understood that such persons or firms shall notify the nearest local authorities of their intention to act in this capacity, indicating the zones where they will carry on their activities and assuming the obligation to sell for export, to the Caja de Crédito Agrario, Industrial y Minero or to the Rubber Reserve Company, rubber and other natural gums. The competent authorities will issue the necessary permission and transmit to the Ministry of National Economy the names of authorized purchasers. The Ministry of National Economy will have authority at any time to cancel such permission.
• “Rubber Reserve is accorded the same facilities in relation to the exploitation, trading and exportation of rubber, perillo, balata and other natural gums which have been granted to the Caja de Crédito Agrario, Industrial y Minero, and Rubber Reserve will assume the same obligations which Caja de Crédito has assumed under the following conditions:
  • “a). Rubber Reserve shall be able to carry on its activities in all production zones and in the same way as the Caja, provided it gives prior notice to the commission, to which point 1 refers, of its intention to carry on its activities in determined zones. The Government of Colombia will issue respective licenses for the operations of Rubber Reserve in such zones;
  • “b). The technical and administrative personnel which Rubber Reserve employs in Colombia, both in its offices and in its agencies and establishments of exploitation, shall preferably be of Colombian or United States nationality. To ensure agreement between both parties in this respect, Rubber Reserve will transmit to the Ministry of National Economy for its prior approval, the names of technical or administrative personnel which it desires to employ in Colombia, indicating their functions and the place in which they will perform them;
  • “c). Rubber Reserve or its agents will guarantee to the Colombian personnel which it may employ in its exploitations the security and social assistance which Colombian law provides; and Rubber Reserve or its agents shall take charge of round trip transportation expenses of those workers or groups of workers who may be contracted in regions distant from those in which they will work;
  • “d). The Government of Colombia is disposed to grant to Rubber Reserve Company exemption from customs duties for the importation of machinery and necessary elements for carrying on its activities, that is:
    • “1. Tools and agricultural machinery for the purpose of exploiting rubber;
    • “2. Tools and machinery for the construction of public works which are to be constructed in accordance with agreements in force;
    • “3. Drugs and canned foods intended for the establishments of Rubber Reserve in distant regions;
    • “4. Transportation equipment necessary for the activities of Rubber Reserve, such as automotive vehicles, boats, etc.;
    • “5. Arms and ammunitions necessary for the defense of the personnel of Rubber Reserve, with the previous approval of the Ministry of War; and
    • “6. Any other articles necessary for the exploitation of rubber which cannot be obtained in Colombia.
  • “It is understood that drugs, foods and other products imported under this agreement and intended for sale in production centers through commissaries or other means, shall be sold at cost price at such production centers.
  • “The exemptions to which this agreement refers shall be requested by Rubber Reserve from the Ministry of Hacienda and Public Credit through the Ministry of National Economy, which will authorize them with its approval.
  • “e). The Government of Colombia is agreeable to exempting Rubber Reserve Company from the obligation which Law 45 of 1942 provides, of investing in bonds of national economic defense to the amount of twenty percent of funds which it imports into the country in foreign exchange for the development of its activities. Rubber Reserve Company will make the necessary requests of the Ministry of Hacienda and Public Credit through the Ministry of National Economy, which will authorize them with its approval.
  • “f). Rubber Reserve and Caja will grant to each other reciprocal transportation and other facilities which they grant to third parties, in accordance with concrete bases which they may establish by direct agreement between them.
• “3. In view of the fact that the Government of Colombia considers the arrangements to facilitate exploitation of rubber as a political contribution on its part to the war effort of the United Nations, and not as a transaction of a strictly commercial character, it desires that December 31, 1946, be fixed as the date for the termination of such arrangements, both Governments being able to terminate them by mutual agreement earlier than that date, in view of the general economic situation and of the desires of Colombia and of the United States.
• “The Government of Colombia understands that the Government of the United States of America will lend its very decided collaboration in order that Rubber Reserve Company may take advantage of the new facilities offered and intensify its activities in the country, increasing the volume of the production of rubber and contributing with this to the development of the regions in which such activities are to be carried on.
• “The Government of Colombia understands also that the conversations now going on will be carried on actively regarding the collaboration of the Government of the United States for the early establishment of a tire factory in Colombia, in accordance with the statement of the Embassy of the United States to the Ministry of Foreign Affairs in its note no. 32 of July 1, 1942.”⁵⁸

I have the honor to inform Your Excellency that my Government confirms the understanding which is expressed in your note under acknowledgment.⁵⁹

I avail myself [etc.]

Arthur Bliss Lane

56. Copy transmitted to the Department by the Ambassador in his despatch No. 1557, February 3; received February 12.
57. Resolution XV of the Second Meeting of the Foreign Ministers of the American Republics defined an act of aggression and provided for consultation among themselves when such an act was committed. See Department of State Bulletin, August 24, 1940, p. 136.
58. Foreign Relations, 1942, vol. vi, p. 188.
59. The Ambassador reported in his telegram No. 228, February 4, 1943, 4 p.m., that the exchange of notes had taken place and that the agreement became effective on February 2 (811.20 Defense(M)Colombia/512).