Office of the Historian

102. Telegram From the Embassy in Peru to the Department of State1

Lima, August 17, 1957—1 p.m.

149. For last three months Embassy has endeavored to keep Department accurately informed of effects on Peru of tariff increases on lead and zinc and Peruvian reaction, nevertheless Dillon was both surprised during his visit here by vehemence of that reaction (which took strong upsurge at that time due to House Committee’s hearings)2 [Page 263] and impressed by particular hardships tariff increases will cause Peru (Embtel 115, August 8).3

Adverse reaction continues to grow daily, with increasing anti-US emphasis. What is hardest for well-disposed Peruvians to understand is fact that Department and President support increases. Fact that final Congressional action may be worse does not impress them, nor does need for exceptions in interest of whole trade agreements program. Most unfortunate aspect is that Peruvians are increasingly convinced that both our good neighbor and commercial policies are fair weather ones which we are prepared to abandon when they come into conflict with material interest of any powerful US element. This is doing us serious damage on political plane and may well have long-term adverse political effects as well as bringing about retaliatory commercial action against US products.

I realize both extent of pressure in US and complexities of political picture but do wish to point out again real damage to US national interest here which any tariff increases on these metals will have Congressional passage of tariff increases and failure to act on bills authorizing sale of commercial vessels and loan of naval vessels will be badly received. Tariff increases by administrative action if Congress does not act will be worse unless some formula can be found such as that suggested by Dillon (Embtel 115) which will cause less injury to Peruvian mining industry and economy.

Achilles
  1. Source: Department of State, Central Files, 411.004/8–1757. Confidential. Repeated to Buenos Aires for the U.S. Delegation at the Economic Conference.↩
  2. The House Ways and Means Committee held hearings on the Administration’s lead and zinc proposals on August 1 and 2, 1957.↩
  3. Not printed. (Department of State, Central Files, 411.006/8–857)↩