ABSTRACT
The return of the Liberal Party to power for the first time in the twentieth century marked a turning point both in Colombia's history and in petroleum policy. A wave of popular support swept Enrique Olaya Herrera into the presidency in August 1930, and as long as the Liberal Party could sustain the illusion of social reforms for the lower class of Colombia, petroleum royalties remained of secondary importance for the survival of the Liberal government. With this freedom to maneuver, Olaya Herrera gave full rein to his pro-United States sentiments in forging between the Colombian elite and the U.S. oil companies an alliance that, with modifications, has survived down to the present. Olaya Herrera also settled the Barco question to the satisfaction of U.S. interests. In spite of attempts to secure adjustments during 1932-1940, the alliance with the foreign oil companies remained firm.
