1939: Colombia

Congressional elections on March 19 returned the Liberals to power in both houses, but at the opening of Congress in July, members of the Conservative Party were present for the first time in four years, thus ending the boycott in effect during the regime of President Eduardo Santos and his predecessor. The Government is committed to an advanced program of land distribution, labor legislation and other measures of social reform. The presidential message mentioned: (1) the necessity of constitutional reform to secure the independence of the judiciary; and (2) the importance of technical collaboration with the United States in regard to national defense, especially aviation. Attention was called to the improvement in relations between the state and the Catholic Church, indicating a growth in political good feeling. On the other hand, the Colombian press has expressed fear of the infiltration of Fascism into the Conservative Party and of the activity of Catholic societies working for the establishment of a corporative state. President Santos spoke in high praise of the Good Neighbor policy, saying that the 'replacement of imperialist ambitions by mutual respect and full recognition of each other's sovereignty had led to a feeling of confidence which did much to guarantee law and justice in the Western Hemisphere.' Though his policy of close cooperation with the United States has met with outspoken opposition from the Conservatives, the House of Representatives, on Aug. 23, following a discussion that revealed undercover Nazi activities, gave the President a vote of confidence on this cooperation.

Following the outbreak of war in Europe President Santos sent a message to all the American Governments, suggesting cooperation and Pan American solidarity to insure neutrality in the Western Hemisphere. On Sept. 2 the Minister of War reported the assumption of control over all commercial aviation. Later in the month diplomatic negotiations with Colombia were opened by the United States regarding the elimination of about twenty German pilots, thought to be German reserve officers, on the Scadta air line, an enterprise financially controlled by Germans, with a North American air company holding a minority interest. Since Colombia is the country nearest the Panama Canal, a vital spot in our national defense, the elimination of Nazi activity there is a matter of special concern to the United States. President Santos' declaration of July 20 that Colombia would not allow any threat to materialize against the Canal from her territory is important to this country.

The Colombian Supreme Court has confirmed the title of a foreign mining company to its property after it had been annulled by the Minister of Industries and Labor, ruling that questions of title were solely within the domain of the courts and could not be decided by purely administrative action. This decision established the principle of the supremacy of law over arbitrary rulings by government officials. No distinction was made, moreover, between foreign and domestic enterprise.

The 1940 budget was approved by Congress on Dec. 16. Two-thirds of the total estimate of $40,020,000 was assigned to public works, national defense and education; over 3,000,000 pesos ($1,710,000) was set aside for service of the foreign debt, in default for five years. Special emergency powers, limited to July 1940, have been conferred on the President, dealing chiefly with banking and exchange control regulations and the renewal of external debt service. On Nov. 30 United States Government officials, representing the Treasury, the State Department, the Securities and Exchange Commission, the Secretary of Commerce and the Export-Import Bank, conferred on a plan to settle Colombia's defaulted debt, which has been referred to the Foreign Bondholders' Protective Council. Although details of the discussions have not been disclosed, it is understood that refunding is contemplated, looking to a reduction in interest costs.