823.5151/119: Telegram

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

56. Your 61, May 29, 4 p.m.7a and the Department’s 49, May 24, 4 p.m. Please present to the Department by June 3 your views in the whole matter of credits and a cooperative program with Peru, with special emphasis on what projects might be suitable for long run development, and on the extent of Peru’s immediate need for credits to tide over the exchange situation.

The undertaking by Peru of some sort of a temporary arrangement with regard to the dollar debt would tend to place this Government on more solid ground with respect to domestic reaction within the United States, as well as in relation to arrangements already entered into with others of the American Republics. Please inform the Department as to what sort of temporary arrangement the Peruvian authorities may have had in mind in your conversation with them, and what type of arrangement you believe might be feasible.

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