File No. 862.85/522

The Acting Secretary of State to the Chargé in Peru ( Smith )


Department’s May 29, 3 p.m., June 19, 3 p.m., August 1, 6 p.m.,1 your June 3, 9 p.m. Cable Department full report of present status of negotiations for lease from Peru of ex-German ships.

You are cautioned against saying anything to Peruvian Government regarding guarantee which the United States Government is prepared to make to Peru, against possible consequences which may come from use of German ships. When it becomes necessary again to discuss this guarantee the Department desires to make it a financial one and include it in the actual contract for the ships as was done in the lease for the ex-German ships in Uruguay.

Before undertaking patrol duty in Peruvian harbors, Navy Department desires specific assurance that arrangement is approved by Peruvian Government.

  1. Telegram of Aug. 1 not printed.