611.2331/208
The Secretary of State to President Roosevelt
My Dear Mr. President: With a view to improving our trade and other relations with Peru in line with our general policy of promoting hemispheric solidarity by every practicable means, we have been discussing the basis for trade-agreement negotiations with the Peruvian Government.
The principal concessions which the United States could be called on to make would be on long-staple cotton and sugar. With respect to the former, we contemplate the possibility of granting the concession on a customs-quota basis which, without necessarily involving any increase in our total imports, would enable Peru to supply at least a part of the deficiency in supplies from Egypt which may be expected as a result of the war. Incidentally, the fact that Japan has been buying large quantities of Peruvian cotton, and the possibility that some of it is reaching Germany, gives particular significance to any move we may make at the present time to facilitate imports of this product into the United States.
We have also had under consideration the negotiation of a supplementary agreement with Cuba66 under which we might reduce the rate on Cuban sugar from the present rate of .9 cent to .75 cent per pound. If it should be decided to enter into such negotiations prior to the negotiation of an agreement with Peru, it would be possible to reduce the full duty rate on Peruvian sugar by the full amount permitted by the law, i. e., to .9375 cent per pound; otherwise, in order not to reduce the duty on Cuban sugar indirectly, the full-duty rate would not be reduced below 1.125 cent per pound. Our plan is to take up the question of negotiating a trade agreement with Peru and to seek to establish a basis for announcing publicly such negotiations. The exact timing of such announcement would be left open for consideration after a basis for negotiations shall have been reached.
I should appreciate being informed whether the foregoing meets with your approval.67
Faithfully yours,