Foreign Relations of the United States Diplomatic Papers, 1939, The American Republics, Volume V

823.51/1279: Telegram

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

Lima, May 29, 1939—2 p.m.
[Received May 30—2:08 a.m.]

42. President Benavides took occasion of the luncheon given today in his honor aboard U. S. S. San Francisco to ask if I knew why the American Government is apparently discriminating against Peru in the matter of loans. He mentioned recent negotiations with Brazil⁵ and Colombia⁶ and the invitation to the United States to the Chilean Minister of Finance.⁷ At first the President appeared perturbed and spoke in a somewhat threatening manner saying if Peru were unimportant to the United States, it could turn to Germany and buy more things from her as Germany was anxious to get more Peruvian cotton. The President, quite irrelevantly, said Peru had tried to do the right thing by the United States in building its section of Pan-American Highway.

I said I was not well informed in this matter but if there was any reason for what appeared to him as a lack of consideration on the part of the United States perhaps it might be because Peru has made no effort to repay the loans of the American bondholders⁸ or that when the matter of a trade treaty⁹ was broached Peru made no effort to meet the United States halfway.

The conversation was interrupted by the maneuvers of the planes after which the President resumed the conversation in a much more affable tone asking if I would be willing to find out why Peru had not been treated the same as the countries mentioned above.

Dreyfus

5. See pp. 348 ff.
6. See pp. 469 ff.
7. See pp. 439 ff.
8. See Foreign Relations, 1938, vol. v, pp. 874 ff.
9. See ibid., pp. 831 ff; also ante, pp. 769 ff.