811.20 (D) Regulations/4100: Telegram

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

379. Referring to Department’s instruction no. 517, June 7 [July 26], 1941 and telegram no. 219, July 31, 5 p.m.,57 the Peruvian Government has enacted the following supreme decree dated and effective August 12, 1941.

The President of the Republic considering:

That by the decrees of May 6 and June 18 of the current year there were dictated dispositions convenient for the control of the exportation of domestic products as well as of the reexportation of diverse merchandise, raw materials and supplies in defense of the necessities of national economy and industry during the actual European war.

That it is necessary to amplify these dispositions controlling the exports to countries where identical measures of security have not been adopted which can affect the tranquility and economic well being of the national territory.

That in accordance with the tendencies developed in the Inter-American Congress of Habana,58 uniform dispositions should be dictated for guaranteeing the security of the American nations.

Decrees:

(1)
The effect of the supreme decrees of May 8 and June 2 of the year in course, are hereby amplified prohibiting the exportation and reexportation of the products which those decrees enumerate, to all those countries which may not be considered as of the Americas and in all to those which Peru enjoined limitations on exports similar to the decrees referred to.
(2)
The Ministry for Finance after consultation with the Minister for Foreign Affairs will establish which are the countries not included in the prohibition of exports specifically mentioned in the said decrees of May 8 and June 18.
(3)
The exportation of all other products not specified in the decrees mentioned will continue free to all countries and subject to the legal procedure now in force.

Given in Government House in Lima this 12th day of August, 1941. Manuel Prado, David Dasso.

The subject will be discussed in detail with the Finance Minister on August 16. In the meantime attention is called to the fact that there is no time limit on the effective control of the exports concerned and that it may last during the life of the decree. The Minister stated that the question of time limitation to one year was the only point to which objections were raised by other Cabinet members. The Ministers agreed that a decree without limitation is of greater value to both Government[s].

[Page 534]

It is our opinion that the wording of the letter of agreement to be handed to the Peruvian Government is satisfactory in its present form but that it might be an advantageous precautionary measure to insert the following after the word “embargo” in line 12: “provided the same remains effective during that period.”59

Does the company agree to the modification of the price on vanadium as recommended in Smith’s letter of August 8 to Bridgman?60

It would be helpful to have any comments the Department may wish to make before our interview with the Minister on the morning of August 16.

Norweb
  1. Latter not printed.
  2. Held July 21–30, 1940; for correspondence concerning this Conference, see Foreign Relations, 1940, vol. v, pp. 180 ff.
  3. In telegram No. 277, August 21, 9 p.m., the Ambassador in Peru was notified that the Metals Reserve Company agreed to this change (811.20(D) Regulations/4100).
  4. Temple Bridgman, Vice President of Metals Reserve Company.