File No. 862.85/328
The Department of State to the Peruvian Legation
Memorandum
The Department of State has the honor to acknowledge the receipt of a memorandum from the Peruvian Legation dated the 2d instant,1 regarding the proposal presented to the Government of Peru for the utilization of the ex-German vessels at present in Peruvian ports, which stated that public opinion in Peru would not countenance the acceptance of the proposal unless the vessels should be utilized under the flag of Peru and unless their employment should be to the advantage of the national trade of Peru. The memorandum concluded with the statement that should the Government of the United States deem it convenient to modify in the sense indicated its former proposal, the Government of Peru will be pleased to give its most careful consideration to the fresh suggestions it may receive.
The Shipping Board has informed the Department of State that they are anxious to meet the views of the Peruvian Government and that they will endeavor to modify the proposal for the utilization of the ex-German ships accordingly. The Shipping Board agrees that these ships, if utilized, shall fly the Peruvian flag, and agrees in principle that the employment of these vessels shall be to the national advantage of Peru.
The Shipping Board greatly desires that the Peruvian Government express its views as to its trade requirements. It is believed that if the principle of substitution was accepted it would be mutually advantageous. In that event the Shipping Board could supply the Peruvian Government in place of the deep draught ex-German vessels, with other vessels better adapted to the maritime trade of Peru.
The Department of State expresses the sincere hope that the negotiations for these vessels may be brought to an early conclusion, as it appears that, on account of the damaged condition, some months will be required to fit them for service.
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