File No. No. 763.72112C26/65
The Secretary of State to the Peruvian Minister ( De Freyre)
Sir: I have the honor to acknowledge the receipt of your notes of May 14 and May 20, 1918, with reference to the measures taken by your Government in regard to the Casa Grande Sugar Plant.
I note that an administrator of the property has been appointed by your Government to effect the sale of its product to defray the expense of operation and to deposit the balance, if any, to the order of your Government in the Caja de Depósitos y Consignaciones I remark also that the administrator will possess full authority to appoint and dismiss employees at the property.
May I express my regret that no decision appears to have been reached as yet by the owners of the Casa Grande Estate as to conferring upon the administrator appointed by your Government the authority to make an absolute bona fide sale of the shares thereof, or of the Estate itself should such a course seem preferable—a decision which the American Government considers most important to be reached at the earliest moment, as indicated in my note of May 6.
Nevertheless, in view of the sincere friendship entertained by my Government for the Government of Peru, so cordially reciprocated by your Government, I beg to inform you that the American Government will take the necessary steps for the issuance of a temporary license permitting American banks or bankers in Peru to facilitate the marketing of the Casa Grande sugar in Chile and that the War Trade Board has already instructed the Mercantile Bank of the Americas to apply for such a temporary license, pending the communication to your Government by the owners of the Casa Grande Estate of their decision to authorize the administrator to dispose of the shares or the property as indicated above.
In the interest of a clear understanding on this point, I beg to add that the continued delay of the owners of the Casa Grande Estate [Page 407] in conferring such authority on the administrator will justify this Government in reconsidering the whole matter and in revoking without notice the licenses now to be granted.
As I have had the honor heretofore to indicate to you, it is contrary to the policy and interests of the United States to allow trade between this country and enemies of the United States, in respect to which stringent legislation has, as you are aware, been passed by the Congress of the United States.
Accept [etc.]