823.5151/123: Telegram

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

66. Your 71, June 9, 11 a.m. You may inform the Ministers of Foreign Affairs and Finance that in response to their request and [Page 1140] in view of the economic circumstances described in your reports, the Department has recommended and the Export-Import Bank has approved the extension of a credit of 2 million dollars to the Peruvian Central Bank to be used for exchange advances for imports purchased subsequent to May 1. The Federal Loan Agency expects to announce this on the morning of June 11. The President of the Export-Import Bank9 intimated to Beltrán a few days ago that the credit might shortly be forthcoming.

This form of assistance was decided to be expeditious for alleviating the pressure on Peruvian exchange and a more direct method than advances against cotton or other Peruvian exports. The credit is intended as a temporary measure, with the understanding that study will be undertaken on a more comprehensive longer-term program of cooperation which would include consideration of the dollar bonded debt situation.

  1. Warren Lee Pierson.