823.51/1225
The Secretary of State to the Chargé in Peru (Dreyfus)
Sir: There are enclosed herewith for your information copies of telegrams dated February 24, 1938 and August 23, 193856 from the Foreign Bondholders Protective Council, Incorporated, of New York, to the Peruvian Minister of Finance relative to the desire of the Council that the Government of Peru designate a representative to discuss with it the question of Peruvian bonds now in default.
In this connection you are informed that the Council, since no reply had been received to its telegram of February 24, 1938, inquired whether the Department could instruct the Embassy to bring this question informally to the attention of the Minister for Foreign Affairs and express the hope that a reply might be made. Careful and sympathetic consideration was accorded this request. However, since it is the policy of the Department in the exercise of its good offices vis-à-vis foreign governments to avoid any appearance of supporting the Council to the exclusion of or against the other protective agencies which may have been established in the field, the position was taken that the action requested might very well impair the negotiations now being carried on by the representatives of the General Advisory Committee of Peruvian Bondholders. The Council was so informed and it then sent its telegram of August 23, 1938.
You are requested to keep the Department promptly informed of all developments and, particularly, of the reaction of the authorities to the telegraphic communications of the Council. You will, of course, exercise due caution so that the impression is not gained that this Government is partial toward either the Council or the Committee or that any action is now being taken in their behalf.
Very truly yours,
- Neither printed.↩