File No. No. 763.72112C26/110

The Permian Minister ( De Freyre) to the Secretary of State

Sir: Acting under instructions from my Government, I have the honor to inform you that the representatives in Peru of the Casa Grande Estate have delivered to the American Mercantile Bank at Lima a cablegram addressed to the directory of the firm at Bremen, requesting full power to dispose of the Estate.

In your note of May 6, 1918, you kindly advised me that a temporary license would be granted, permitting American banks or bankers, or their branches in Peru, to finance the marketing of Casa Grande sugar in Chile, pending, among other conditions, a prompt decision by the owners of the Casa Grande Estate as to whether they would authorize the Peruvian administrator of the Estate to make a sale of any or all of the shares of the corporation—or of the Estate itself should such a course seem preferable—in such a manner as would safeguard the interests of the present owners of the Plant.

As my Government holds that the attitude of the representatives in Peru of the Casa Grande Estate should be considered as a manifestation of a decision to make a sale of the property, such as required by your aforementioned note of May 6, 1918, I am furthermore instructed to request that the provisional administration of the Estate established by my Government be permitted to continue operating the Plant under a license from your Government, since all the provisions stipulated by you have been, in my Government’s judgement, fully complied with.

Accept [etc.]

M. de Freyre