11.232/6: Telegram

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


47. Department’s telegram number 32 dated September 29, 6 p.m.

On the first of October I took up with the Foreign Minister substance of paragraphs 1 and 2 of Department’s telegram number 32, September 29, 6 p.m. After he had consulted with the President, Foreign Minister told me that Peru was willing to continue negotiations without regard to the inability of the United States to give Peruvian sugar the same treatment now given Cuban sugar. Foreign Minister added that they were now making a careful study of the treaty between the United States and Germany with this end in view.
Yesterday I had a conversation with the President on this subject. He stated that Peru would be glad to enter into negotiations, and would set aside for the present their request for special treatment for Peruvian sugar. …
He then made the suggestion that when the convention with Cuba terminated it might be possible for the United States to grant Peruvian sugar better treatment. He asserted that, if occasion arose, Peru would soon be in a position to furnish the United States with as much sugar as did Cuba. I indicated to him the existence of other [Page 598]agreements some of which were with countries in the Western Hemisphere, and near the United States, which did not contain provisions for any special privileges, and stated that the refusal of special privileges to these nations would obviously preclude conceding them to Peru. I stated that the treaty between the United States and Cuba was of long standing, that it had been concluded in view of the special relations between the two countries following the war with Spain, and I intimated that even should the treaty be terminated, as he expected, it would be unlikely that the United States would enter into such agreements with other nations. The President replied that he hoped, nevertheless, that if the convention with Cuba were terminated, the United States, in the light of the new situation which would be the result, could see its way clear to grant advantages to Peruvian sugar. In the meantime, however, he was quite prepared, as he had said before, to set aside the sugar question entirely and negotiate the treaty on the principle of unconditional most-favored-nation treatment.
I gained the impression that the President is inclined to keep this point in view for possible use in bargaining in this or other matters, but will be willing at the appropriate time, unless Peru’s attitude toward the United States changes, to conclude a treaty on the basis of unconditional most-favored-nation treatment. I believe, however, that if the Department anticipates continuing in force article 8 and the preferential treatment of Cuban sugar, it would help and possibly obviate delay, if the President could be informed of the bases for such expectation. I am trying to secure a written statement of the attitude of the Government of Peru with respect to negotiations.