FOREIGN RELATIONS, 1942, VOLUME VI



ever, but dependence of Colombia on automobile transportation was
emphasized.
  3. Colombian Government would appreciate a loan of approxi-
mately $500,000 to cover purchase of 10 or 12 river launches and
construction of truck roads for the purpose of opening up rubber
territory in the Amazonas district.
  4. Colombian Government would appreciate receiving priority for
3 or 4 retreading machines which are urgently needed here to continue
essential automobile transportation.
  5. Colombian Government is greatly interested in enlarging Hevea
nursery program and encouraging plantations both by Colombian
Government colonial scheme and private enterprise.
  6. Colombian Government trusts that we will allocate to Colombia
tires now in Brazil to fill urgent present requirements here.
                                                           LANE

811.20 Defense(M) Colombia/87b
  The Secretary of State to the Ambassador in Colombia (Lane)

No. 135                                WASHINGTON, June 9, 1942.
  SnR: There is enclosed a draft of agreements between Rubber
Reserve Company and the Republic of Colombia providing for the
purchase by Rubber Reserve Company of the exportable surplus of
wild rubber produced in Colombia. The agreement has been
drafted on the basis of the telegrams recently exchanged between
the Embassy and the Department of State.
  It will be noted that under paragraph 6 of the agreement a de-
velopment fund of $500,000 is to be expended by Rubber Reserve
Company. Promptly upon the execution of an agreement, Rubber
Reserve Company plans to establish an agency in Colombia in order
to correlate all plans of this Government with respect to rubber
development work in Colombia. Such agency would, of course,
operate under the supervision of the Embassy and only to the extent
approved by the Government of Colombia. This agency would be
under an administrative head, would furnish all necessary technical
and advisory assistance, and would make and carry out all necessary
arrangements relating to the purchase of rubber by Rubber Reserve
Company.
  It will be noted that certain provisions of the contract are given
in general terms. In other countries it has been found desirable to
commence operations on this basis and to work out the details as the
matter proceeds. The organization which it is planned to send to Co-

   Not attached to file copy.



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