Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-10
COLOMBIA EXPECTS
TRADE RECOVERY
Attitude of Optimism Created by
0yala's Presidency Is :
Main Factor.
By the Associated Press.

BY the Associated Press.
| BOGOTA, Colombia. July 1o-A-
/ though the economic situation Of CO.
| lombia, keystone nation of South Amer.
lea, Is far below normal, a number Of
bright spots present an aspect of hope
full anticipation for business recovery.
Chief of these, as it has been for the
year past, is the attitude of optimism
created by the presidency Of President
Enrique Olaya Herrera.
Another is the just-completed eessa-
! ton of litigation between tie Colom-
/ bian Petroleum Co., composed of tie
! Gulf Oil Co., and the Carib Syndicate,
over the famous Barco concession.
A third is the fairly stable level Of
prices for Colombian coffee. the foun-
dation of the nations economic Struc-
ture.
The Colombian Congress passed .
law granting a 50-year concession for
exploitation OF the Barco tract to the
Colombian Petroleum Co., and Presl-
dent Olaya Immediately signed the bill.
Operations will be under way by August
The Barco concession settlement Is
the outstanding piece Of administrative
generalShip by President Olaya in his
first year of Office. Majority members
of Congress issued a statement declar-
ing their favorable vote for 1t was due
to a desire to demonstrate the nations
friendlines IS with the Government and
business interests of the United States.
Within two years the nation has felt
the effects of a greatly curtailed pro-
gram of public works. both national and
departmental, together with reduced
personnel in business, drastic wage cuts
IN government departments and loss Of
employment by thousands of workers.
Adverse conditions have been reflect
ed in greatly reduced imports. with con-
sequent diminution of revenues.
The credit situation of the country
likewise is serious: the banks continue
to tighten up on loans and many merA
chants find it difficult to borrow funds.
Importers are asking for long credits
and the number and value Of protested
drafts cause apprehensions.
The United States continues as Co
lombia's best customer, taking more
than 80 per cent of the exports, but.
In turn, selling the country less than
so per cent Of its imports. In 1890 the
United States bought Colombian goods
to the value of $9l.676.570 and sent
here merchandise to the value AZ
$23,537, 1872.
Tie largest item in Colombian ex==
ports to the United States Is coffee.
which in 1880 reached SOL .654,34s, >
little more than 81 per cent of the total
value of Colombian exports and about
80 per cent Of her total exports OF
coffee.
No other one factor so clearly indi-
Gates the state of the national economic
life as transportation. Despite the prog
reSs made and plans under way for i'm
proved means Of communication, the
! Magdalena River remains the chief
commercial highway Of Colombia. AS
SUCH it reflects the unsatisfactory eco
nomic state. River tonnage has de-
clined sharply during the last two years.
In air transportation, however, CO.
| lombia has forged ahead. For more
than 10 years the commercial mail and
passenger airlines of the nation, OPP
Grated by Scadia (Sociedad Colombo
Alemana de AransporteS Aereos) a Ger
man Colombian organization, has OPP
Grated successfully and safely from Boz
gotta to the interior and to the Allan
tic seabCard.
Recently this admirable service has
become international through arrange
msnts with Fan-American AirNsys, Inc
Airmailed letters now travel between
Bogota and New York in three and
one-half days. and 1t is predicted that
passenger transportation in the new 20.
passenger flying ships will assume largo
| proportions.