811.20 (D) Regulations/2658: Telegram

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

215. Reference to my telegram No. 180, May 16, 7 p.m. The Finance Minister informed the Ambassador last evening that the Government is now disposed to make effective export and reexport control. The matter is under consideration by the Cabinet but the details have not yet been worked out. The Minister said Peru proposes to restrict exports of alloy metals and ores to countries that are supplying Peru promptly and freely with iron and steel products and that this will eliminate Japan which cannot supply even a keg of nails.

Mr. Dasso stated that the British Government is also interested in the control of strategic minerals and had Peru take £900,000 of this year’s cotton crop on condition that the exportation of these minerals is controlled. By the purchase of this amount of cotton it is hoped to regularize the sterling exchange situation and to meet pending service on the guano and electric power company loans.