823.00 Revolutions/183: Telegram

The Ambassador in Peru ( Dearing ) to the Secretary of State

126. My 123, March 16, 11 a.m.15 La Paz reports nothing in story Guaqui mobilization. Bolivian Legation here issues public denial.

Country now appears quiet and unified.

British Minister has cabled London requesting authorization to inform junta that change from Sanchez Cerro administration “does not affect diplomatic relations” and that usual intercourse will continue, question of recognition not being raised so far as Great Britain is concerned. No government has yet announced recognition of this junta. I am preparing a message regarding our relations with junta which will go forward before end of [apparent omission]. I believe it would be preferable for our action to follow that of some Latin American country rather than for us to take the lead since for us to act first might be interpreted as giving junta more support than it really deserves until it has shown more willingness to support rights of American bondholders and might be considered precipitate at home. I do not, however, favor making efforts to secure moratorium the full test or criterion of our action. There are signs that junta especially desires our recognition and will face its financial problems more resolutely but too much importance must not be attached to them. Certain responsible Peruvians, enemies of Jimenez, urge recognition be withheld.

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