1942: Colombia

The torpedoing of Colombian schooners and Germany's disregard of Colombia's protest over the loss of one of them, The Resolute, aroused intense anti-Nazi feeling and demonstrations in that Republic. All Axis nationals were ordered inland. No declaration of war has followed the severance of diplomatic relations last January, however. Close cooperation, nevertheless, exists between Colombia and the United States regarding matters pertaining to the defense of the Panama Canal, the Colombian Government having reaffirmed its determination to prevent any threat to the security of the Canal from Colombian soil. Colombian troops have been moved to strategic positions. A Lend-Lease agreement with the United States was signed Mar. 17 according to which, it is believed, some $20,000,000 to $30,000,000 in war material will be delivered to the Colombian Government. The activities of the German Transoceanic News Agency have been halted. Teaching in foreign languages has been prohibited and some of the German schools in the country have been closed. President López has revived the idea of a Pan American League of Nations which was proposed by Colombia at the Buenos Aires Pan American Conference several years ago. Following the lead of other Latin American countries, on Nov. 27 Colombia severed diplomatic relations with the Vichy Government, declaring that it had ceased to exist as a sovereign entity.

In the presidential elections held on May 3 Alfonso López, President of Colombia from 1934 to 1938, was elected over Carlos Arango Vélez, candidate of the dissident Liberals and Conservatives, by a 200,000 majority. He took over the presidency from Eduardo Santos on Aug. 7. President López is leader of the leftist wing of the Liberal party. His former administration was marked by social reform and a program of increased taxation. There has been considerable debate in Congress and the press over a new Concordat signed this year with the Vatican. Leader in the controversy has been Laureano Gómez, head of the opposition Conservative party, which has been charged by President López with engaging in propaganda for the Spanish Falange.

Geographical proximity to the United States has increased Colombian coffee sales, and a large increase in the quota was voted by the Inter-American Coffee Board in July to insure maximum use of limited shipping facilities. Lack of shipping space is causing serious economic conditions in Colombia, however. Wild rubber is being transported by air from the jungle area of eastern Colombia and the United States Rubber Reserve Corporation has put forward a plan for opening up millions of square miles of virgin rubber tracts which, it is estimated, could yield the United States 3,000 tons of raw rubber a month if the necessary air freight lines and landing fields were established.

An important decision regarding the ownership and operation of mining properties was handed down by the Colombian Supreme Court this year, when it overruled the Government in its seizure of properties along the Telembi River belonging to the South American Gold and Platinum Company. On the other hand, a nationalistic move against foreign capital is indicated in a new law, known as law Number 13, which requires Colombian agents to represent foreign companies in all legal matters, including the signing of contracts and issuing of checks. This requirement, which is included in a law authorizing the construction of two new hydroelectric projects in the Department of Tolima, is considered very burdensome by foreign operators. Foreign capital entering Colombia will, furthermore, have to be invested up to 20 per cent of the total, in new 'national economic defense bonds,' recently authorized to the amount of 60,000,000 pesos, a ruling which will hit the tourist trade and also semi-official United States' organizations like the Rubber Reserve Corporation. The law authorizing this internal loan requires savings banks to invest 20 per cent of their deposits and insurance companies 10 per cent of their reserves in these bonds. The proceeds of the loan are to be applied to liquidating the deficit in the 1942 budget, to balancing the 1943 budget, and for public works and agricultural and industrial development. An Institute of Tropical Agriculture is to be established in Colombia to foster the development of the country's natural resources. Under an agreement with the U. S. Department of Agriculture, the sum of $5,000,000 is to be allotted to this work.

The importation and exportation of United States paper currency, except through the Bank of the Republic, was prohibited by Government decree in June. In the same month Colombia offered to settle the outstanding dollar obligations of its Mortgage Banks.

Latest census returns give Colombia a total population of 9,523,200, which represents an average of twenty-two persons per sq. mi.