Evening star., 1930-12-07
oILING THE OIL QUESTION.
DISCUSSION Of far-reacb,n

A DISCUSSION Of far-reaching
~ importance for the future of
~ inter;American relations will
4 4 take place within the next few
days. The scene will be the
Colombian Congress; the subject, the
new oil legislation in Colombia; the
principal protagonistS, the Colombian
Government and the American oil con-
Germs established in that country.
The decision will be in the hands Of
the Colombian legislators. And upon
SUCH decision may hang consequences
OF vast significance in the fate not only
Of the economic links uniting North and
South Americans but Of their political
relations as WELL
The Colombian legislators will have
before them the new oil legislation
which President Olaya Herrera has
been carefully preparing with the advice
Of an accredited American expert. This
legislation, as has been clearly explained
by President Olaya himself and by press
reports from Bogota, Is favorable to the
investment Of American capital in that
Latin country and 1t will offer protec-
ton and facilities to the interests al
ready engaged there in the development
OF Colombian natural resources. The
one fact that George Rublee, an Ameri-
can lawyer, considered an authority on
aided Ambassador Morrow to solve the
oil problem in Mexico, has had par
ticipation In the drafting of the new
laws Is q guaranty of their fairness
toward American interests in Colombia.
The submission Of this favorable
petroleum legislation, only two years
after a So-called nationalistic campaign
against foreign oil concerns In that
republic was on the verge of disturbing
friendly Colombian American relations,
is indicative Of a changed attitude on
the part OF Colombian statesmen which
will have a tremendous influence on the
final success of the Pan-American
scheme, because 1t is showing the
starting point of an understanding
which had heretofore been lacking on
both sides and of sensible adjustment
OF the points Of view of the two parties
involved.
A DANGEROUS POLICY.
1t was but two years ago that edi-
torial writers all over the continent
were speculating as to the possibility of
a diplomatic breaL between Colombia
and the United States as the result of
a warm controversy involving American
OIL concerns operating on Colombian
soil
Moved Dy an intense campaign of
the local press and by suggestions from
group Of radical elements, the Colom-
bian authorities had announced the
passage Of certain laws which evidently
were intended to oppose or discourage
the activities Of foreign capital in the
development Of Colombian oil re-
sources. Some provisions in these laws
made 1t impossible for certain American
companies to hold their legal titles to
ATR al Il
f1lling the desires OF those national
istic" groups which seemed to be eager
TO end all economic cooperation with
foreign interests.
Whether the policy Of naturalization
OF natural resources was q good one or
not, 1t had found favorable support in
several Latin American governments,
perhaps because 1t constituted q source
OF inexhaustible wealth to those who
indorsed it. In adopting it Colombia
waS but following the footsteps of other
Southern nations, and even of certain
European powers, which had deemed It
convenient and justihable. The policy,
however, had serious drawbacks, and
paramount among these was the danger
OF conflict with prior property title le-
gally acquired by private individuals
all the more when these individuals
happened to be citizens Of a foreign
country which had always been jealous
In the protection Of its nationals
abroad.
It was only natural, therefore, that
any attempt to modify the legal status
Of American owned enterprises exploit
Ing Colombian petroleum provoked such
alarm in this country, and that 1t
should be followed by such q heated
controversy over the rights and duties
Of foreign investors in the Latin re-
publics. And 1t was equally natural
that American capitalists and business
men-the men Of Wall street-should
look with suspicion upon q situation
which. If not one of Immediate peril,
was at least Of dangerous uncertainty.
The consequences of all of which was
the reluctance Of American bankers to
make new loans to the Colombian Gov
ernment and the financial difficulties
Of the latter, which urgently needed
them.
ON THE RIGHT TRACK.
Then came August z, 1880, Q lucky
day for Colombia. On that date En-
ricue Olaya Herrera was inaugurated