Evening star., 1932-01-20
ST|MSON REFUSES
TO GIVE SENATE
FULL LOAN FACTS
SAYS Message on Barco Oil
Concession Would Be
Against U. S. Interests.
DECLARES WHITES
TESTIMONY CORRECT
Reply Follows New Demand of
Securities Probers for INDEBTED
Colombian Message.
by the Associated Press.

by the Associated Press.
Secretary Of State Stimson stood firm
" today in his refusal to submit pub
licly to the Senate Finance Committee
a telegram from the American legation
at Bogota dealing with Colombia loans
and the Barco oil concession.
The Secretary reiterated his stand on
the matter after the committee earlier
sn the day had requested him to furnish
the correspondence in full. Previously
Stimson had submitted kilograms with
the oil matters eliminated.
In his letter of reply to Chairman
Smoot, the Secretary reaflrmed his
Willingness to submit the telegram to
the committee in executive session. He
said at would not be in the interests
of the United States in its foreign rela-
tions to publish the telegram itself"
UphoIds White Testimony.
stimson also said that Assistant Sec
setary White In his testimony had
stated correctly the substance OF the
telegram as to the Barco concession.
The request for the telegram was
made on the motion of Senator Couzens,
Republican. of Michigan. 1t asked 1or
the message of June l9, 1881, which
White had testified mentioned to oil
concession in Colombia. Among those
who voted for the resolution were sucn
administration stalwarts as Smoot and
Senator Reed. Republican, OF PennsyI-
yania.
The committees action was at an
executive session, in which letter
from the Secretary of State, transmit
ting some of the correspondence re-
garding loans to Colombia, had been
considered.
Submits Parts of Messages.
Stimson submitted portions OF four
communications between the state De
r1a,tment and the American legation
in Colombia regarding loans made TO
that country by the National City Co.
Testimony before the committee has
shown that the National City Co.
forwarded the last S4,000,o00 quota of
a loan, contracted for by Colombia the
year before, 10 days after that govern
Inent restored the Barco oil concession
to the Mellon-owned Gulf Oh Co. and
other American interests.
White testified that among the rea-
sons mentioned by President Olaya OF
Colombia for the loan to be made was
that he had restored the oil concession.
He insisted, however, there was no con-
nection between the concession and the
Joan.
by Secretary Stimson:
An extract of a telegram OF Marcn
10 1881. from the American legation at
Bogota to the State Department;
president Olaya informed me TINS
morning that, although budget hao peeh
reduced and balanced as American
bankers had demanded, they told MN
this morning that they were unable 10
send S4o00,O00 as they had clearly
prornised. $"
Second Is Paraphrase.
A second document, paraphrase OF
and extract from a telegram OF May
10 from the American legation, follows: !:
THE bankers, President Olaya states,
sav that having discovered that the
revenues for the first quarter OF the
present fiscal year are below thelr
estimates. they cannot pay over the
duce the budget
president Olaya says this is an i'm
possible situation The President
further says no government can
function if its budget is subject 10 re-
vision month by month.
"aThe bankers themselves accepted
Kenmerer's figures for the budget, and
in any event, in my opinion, the IN,
creased revenues later in the year VIII
make up for whatever they are snort
during this quarter
The third document, paraphrase OF
1n extract from a telegram May 10,
lnOQtinn follows.
zone of the first conditions laid
down in the agreement OF June 81,
President Olaya admits, was balanced
budget. and the bankers and he agreed
on balanced budget of 81 100000 pesos
for the present year, which was after
ward reduced to 49,000,0 900.
.'The bankers now insist that as reve-
nues for the first quarter are below
their estimates, he reduce the puoget
again. President Olaya maintains that
he cannot monthly reduce his budget
according to the month-py-morIn re-
ceipt of revenues"
Wanted Higher Interest.
The fourth document, an extract
from a telegram of June l9, from the
American legation, follows:
"At the last minute and after every
thing else was agreed on Tor the ao'
vance of last 81 000,0 600, bankers tooa!
sire 5ire' to l5-~ jump interest rate on whole
loan Of June 80 from to 8 per cent
An increase of this interest rat
would now have absolutely disastrous
consequences for whole, current o
friendly feeling now existing here To-
the United States. The bankers ap
parently still have absolutely no un
derstanding of situation here or thel
own best interests"
1t was the remainder of this tele
gram which the committee requested
Assistant Secretary White testified tina
Olaya, had said his people could no
understand why the interest rate wa
jumped the day after the Colombian
Congress had approved the Barco con
cession.