721.23/2152: Telegram

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

36. Embassy trustworthily informed quarrel arose in Cabinet meeting yesterday over excessive armament expenditures which Minister of Hacienda declared reached 72 million soles in past 12 months. Minister of Hacienda insists this cannot go on and he, Minister of Fomento, and one other member will endeavor to convince the President that Leticia must be delivered to League for return to Colombia. Status of Leticia question at present is causing much concern and disturbances in exchange as reports spread that developments are adverse to Peru.