862.85/1226: Telegram
The Secretary of State to the Ambassador in France (Wallace)
1408. For Boyden. No. B–92.
Shipping Board desires to purchase Callao, one of German ships taken over by Peru during war and chartered to Shipping Board. Apparently Peru never actually took title to vessels although she gave option to Shipping Board to purchase. For your informal information Department understands that charter hire for Callao is very high and purchase price low, and that Shipping Board believes it would save money by purchasing vessel now even if Reparation Commission later refused to recognize its title to vessel.
Has any action been taken by Reparation Commission in regard to vessels seized by Peru? Department does not desire to take any [Page 540] action which might conflict with decision of Reparation Commission on these vessels.