823.032/35: Telegram

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

9. Referring to previous telegrams concerning confiscation law [Leguia] called me to the Palace this morning and stated that he [Page 363] and his Cabinet have decided not to promulgate confiscation law but to send to Congress the following law with recommendations for its passage, translation of which is:

Whereas, it is necessary to define the scope of the recently declared civil responsibilities incurred by the disturbances of public peace, [Congress] has given the following law:

  • Article 1. The civil responsibilities referred to in the indemnification bill passed by the National Assembly in the session of December 26th last invalidate only the contracts entered into after the commitment of the offense of rebellion or conspiracy.
  • Article 2. The State shall nevertheless have the same rights which correspond to privileged creditors to ask for the annulment of contracts made without value received and for those in which there is excessive misrepresentation of value.