862.85/1224: Telegram
The Secretary of State to the Ambassador in France (Wallace)
1528. Boyden B–133.
Your B–248,44 Department’s B–92,45 and B–111.44
For your information Shipping Board gives further information that Callao chartered at eight and a quarter dollars per ton before [Page 541] the armistice to continue until peace with Germany. This rate very excessive and cannot be changed until peace between United States and Germany. In addition $600,000 spent on reconditioning ship. Peru now offers to sell the ship at a price which would enable Shipping Board to recover money spent on repairs; and to permit a substantial offset as an allowance for excessive charter hire collected. In addition Peru offers to guarantee title and is now insisting on definite reply from Shipping Board. Shipping Board especially desires to purchase ship in order to cease payment of excessive charter hire. They argue that if Peru guarantees title as proposed it will not be necessary for United States to support Peru’s claim to title.
Such a plan somewhat similar in effect to that suggested in paragraph 3 your B–248, but would effect immediate settlement of charter hire difficulties. Department does not desire to place itself in awkward position with the Commission but it is rather difficult under existing conditions to refuse Shipping Board’s request. Please cable your views and if you think it advisable you might consult your associates, pointing out difficulties of the present situation.