823.51/196

The Administrator of Customs for Peru (Cumberland) to the Secretary of State

Sir: I take pleasure in transmitting herewith for the records of the Department a copy of a contract which was signed on October 28. 1921, between Ambassador Pezet, acting for the Republic of Peru, [Page 659] and myself, under the terms of which I shall assume the duties of Administrator of Customs for Peru.

Very truly yours,

W. W. Cumberland
[Enclosure]

Contract between the Republic of Peru and William W. Cumberland

This Contract, made this twenty-eighth day of October, in the year A. D. 1921, by and between the Government of the Republic of Peru, acting through its duly authorized agent, His Excellency Senor Don Federico Alfonso Pezet, Ambassador Extraordinary and Plenipotentiary of Peru in charge of the Embassy of Peru in Washington in the District of Columbia, United States of America, and William Wilson Cumberland, a resident of the City of Washington, and a citizen of the District of Columbia of the United States of America, Witnesseth, That:

Whereas, by a law of October, 1921, the President of Peru has been authorized to appoint an Administrator of Customs of the Republic of Peru, this law reading as follows:

Article I.

“The Executive is hereby authorized to make the reforms it may deem necessary in the organization, regulation and procedure affecting the Customs so as to simplify and accelerate its operations and improve the service. To this effect the Executive may engage in a foreign country an adequate and proper personnel to direct matters relating to the Customs Service.

Article II.

“For the effects that this authorization and the reforms may occasion the Executive will dispose of the sums fixed in the General Budget of the Republic assigned to the Customs service and if these funds should not be sufficient a supplementary credit will be opened for the sum that may be considered indispensable to cover such expenses.

Article III.

“The use made of this authorization will be referred to Congress at its next ordinary session.”

Whereas, The Government of the Republic of Peru has requested the Honorable the Secretary of State of the United States of America to nominate a properly qualified Financial Expert to serve as Administrator of Customs of the Republic of Peru, and

Whereas, the Honorable the Secretary of State has suggested William Wilson Cumberland as a suitable person to serve as the said Administrator of Customs of the Republic of Peru, and

[Page 660]

Whereas, by a letter, dated September 30, 1921, His Excellency Senor Don Federico Alfonso Pezet, Ambassador Extraordinary and Plenipotentiary, duly authorized, has formally requested the said William Wilson Cumberland to become Administrator of Customs of the Republic of Peru;

Now therefore, in consideration of the covenants, recited hereinafter, entered into between the said Republic of Peru and the said William Wilson Cumberland, each of the other, it is stipulated and agreed:

1.
That, the said Republic of Peru does hereby appoint, designate and engage the said William Wilson Cumberland to be and to serve as Administrator of Customs of Peru for a minimum period of three full years, to be computed from the date on which the said William Wilson Cumberland shall depart from the City of Washington to proceed to the Republic of Peru, and at the termination of the period of three years for an additional period of two years, provided the additional period of service is acceptable to both the said Republic of Peru and the said William Wilson Cumberland.
2.
That, the said William Wilson Cumberland agrees faithfully to serve the Republic of Peru in the above mentioned capacity of Administrator of Customs and obligates himself to comply with all of the duties and to discharge all of the functions as set forth in the subsequent paragraphs of this contract, and to obey in the performance of his duties all lawful instructions of the President of Peru and the Minister of Finance of Peru.
3.
That, the said Republic of Peru does hereby agree to pay annually to the said William Wilson Cumberland as salary and compensation for his services as said Administrator of Customs, the sum of Sixteen Thousand Dollars in gold of the United States of America ($16,000), said sum to be payable in twelve equal installments on the last day of each calendar month;
4.
That, the said Republic of Peru further agrees to pay to the said William Wilson Cumberland all reasonable and necessary traveling expenses of himself and’ of his immediate family from the City of Washington, District of Columbia, United States of America, to the City of Lima, Peru, and in like manner to pay to the said William Wilson Cumberland all reasonable and necessary traveling expenses of himself and of his immediate family from the City of Lima, Peru, to the City of Washington, District of Columbia, United States of America, at the expiration of three years of service as provided for in this contract or upon its earlier or later termination as provided herein.
5.
That, the said William Wilson Cumberland shall in the exercise of his functions as hereinafter described be responsible only to the President of Peru and to the Minister of Finance of Peru, and that in the event of disagreement between the Minister of Finance and the said William Wilson Cumberland in respect of questions within the competence of the latter, the said William Wilson Cumberland shall have the right to present his views both orally and in writing to the President of Peru;
6.
That, for the better performance of his duties, the said William Wilson Cumberland shall be entitled to meet the President of Peru and the Minister of Finance of Peru in conference at least once a week and at other times shall be entitled to send communications to them in writing;
7.
That, the said William Wilson Cumberland shall, inter alia, and subject to the stipulations of paragraph five above, assume the office of Administrator of Customs, with full authority to revise the present system of collecting the revenues and of covering them into the public treasury, shall study the present system of import and export duties and charges and suggest modifications thereof, shall have authority to propose the appointment, promotion, demotion, transfer or dismissal of employees in the customs service, shall have authority to assure the lawful collection and safeguarding of the customs revenues by proper police protection by land and by sea, shall be consulted in advance of administrative action or recommendations in regard to all financial policies of the Republic of Peru, and shall become a director of any government financial fiscal agency which the Republic of Peru may establish;
8.
That, the said William Wilson Cumberland is hereby authorized at the expense of the Republic of Peru to engage in the United States of America for a period not greater than three years an expert auditor at a salary of not to exceed Seven Thousand Five Hundred Dollars ($7,500) per annum, a customs inspector at a salary not to exceed Six Thousand Dollars ($6,000) per annum, a statistician at a salary not to exceed Five Thousand Dollars ($5,000) per annum, and a private secretary at a salary not to exceed Three Thousand Dollars ($3,000) per annum, plus reasonable and necessary traveling expenses from their respective cities of residence to Lima, Peru. Each of the above officers is to be under the exclusive direction and control of the said William Wilson Cumberland, and shall be subject to dismissal by him or by the Government of Peru provided the incompetence of any of the above mentioned officers be duly established;
9.
That, the said Republic of Peru agrees to assign a Peruvian legal expert to the said William Wilson Cumberland, to advise him regarding the laws governing the administration of revenues of the Republic;
10.
That, the said William Wilson Cumberland and the persons engaged by him under the authority of paragraphs eight and nine hereof, shall have full and immediate access to all documents, records, laws and decrees, including the books and records of account between the Republic of Peru and all designated Government depositories, relative to the disposition of the customs revenues of the Republic of Peru and to all port facilities, warehouses and other properties connected with the collection of customs revenues;
11.
That, the said William Wilson Cumberland shall be fully reimbursed for his necessary expenditures for travel, subsistence and lodging whenever his duties take him outside of the Capital of Peru;
12.
That, the said Republic of Peru at its expense agrees to provide the said William Wilson Cumberland, and the agents specified in paragraphs eight and nine of this contract, with suitable offices, office furniture, supplies and clerical assistance;
13.
That, the said William Wilson Cumberland shall be entitled to leave of absence with pay for one calendar month during each year of this contract;
14.
That, the Republic of Peru without due cause may at any time terminate this contract upon the payment of the full amount of the salary herein specified for the three years for which the present contract is to run, and subject to the stipulations of paragraph four hereof; furthermore, that for just cause, which shall be presented in writing to the said William Wilson Cumberland, this contract may be terminated at any time, and in this event the said Republic of Peru shall pay to the said William Wilson Cumberland three months’ salary and the traveling expenses stipulated in paragraph four hereof;
15.
That, the said William Wilson Cumberland may, after a period of eighteen months after the date upon which this contract comes into force, terminate his connection with the Republic of Peru, provided that he has presented to the President of Peru in writing his reasons for believing that his further service would not promote the financial welfare of the Republic of Peru, due to lack of cooperation in his work on the part of the Government of Peru. In this event the Republic of Peru will indemnify the said William Wilson Cumberland to the extent of six months’ salary from the date on which his work as Administrator of Customs ceases;
16.
That, the said William Wilson Cumberland during the continuance of this contract shall in no way be connected with or receive employment or compensation from any foreign corporation which may undertake work for the Republic of Peru or which may become interested in any financial arrangements with the Republic of Peru;
17.
That, the said William Wilson Cumberland hereby agrees, during the continuance of this contract, to use his best efforts and endeavors for the promotion of the finances and revenues of the Republic of Peru, and, in general, within the scope of his proper activities, to promote the welfare, happiness, prosperity and progress of the citizens of Peru and the honor and prestige of the lawfully constituted Government of the said Republic.

In Testimony Whereof the parties hereto have hereunto set their hands and seals this [28th] day of October, A. D. 1921.

For the Republic of Peru
F. A. Pezet

Ambassador Extraordinary and Plenipotentiary of Peru, Washington, D. C.
William Wilson Cumberland

Witnesses:
Arthur N. Young
A. C. Millspaugh