823.51/1313
The Chargé in Peru ( Dreyfus ) to the Secretary of State
[Received December 12.]
Sir: I have the honor to report upon statements made by President Benavides regarding possible assistance for Peru from the United States in the matter of the extension of credits by the Export-Import Bank. The statements were made during the interview that took place when I accompanied Mr. Edward F. Roosevelt in his visit to the President to discuss Peruvian participation during the second year of the New York World’s Fair.
The gist of the President’s vehement remarks, which he emphasized by pounding upon the arm of his chair, was that the United States seems to forget that there is a west coast of South America and is concerned only about the east coast countries, that in spite of friendly words there has been no action taken with respect to the extension of credits to Peru by the Export-Import Bank, that no reply has been received to Peruvian proposals (the President did not specify what proposals he referred to), that formerly credits were extended for Peruvian purchases of products imported from the United States but now cash is demanded, and that the present conditions interfere with trade between the two countries. He went on to comment upon the investment and trade opportunities in Peru.
I reminded the President that the Department is under a great pressure of work at the present time, including such studies as the general program for inter-American economic and financial cooperation, the special problems of individual countries, and the possible increase in the capital of the Export-Import Bank, and I told him that I was sure there was absolutely no discrimination in the case of Peru and that questions of interest to Peru are receiving the most careful consideration. Mr. Roosevelt, to whom the President was very cordial, said that next year he hoped to be able to interest some of his associates in a study of investment possibilities in Peru.
Part of President Benavides’ attitude may be due to what, I fear, is a none too friendly feeling towards the United States. It was apparent on this occasion, as in the past, that he also does not understand the policies of the United States with respect to economic and financial cooperation with the other American Republics nor the nature and bases of agreements such as that between the United States and Brazil. President-elect Prado certainly will have a much better understanding of these economic and financial questions.
During the interview President Benavides also made the statement that he will probably visit the United States early next year when he [Page 785] would take in the New York Fair. He added that he was desirous of getting away as soon as possible as he felt he would not get much rest if he remained in Peru after the inauguration. It will be recalled that the Peruvian Constitution provides that an ex-President of the Republic take a seat in the Senate for one term.
Respectfully yours,