The Peruvian Minister of Finance and Commerce (Dasso) to the Secretary of State

Mr. Secretary: I wish to express my sincere appreciation for the courtesies which have been extended to me and to my companions during our visit to Your Excellency’s country. During my stay, I have had the opportunity to discuss with officials of a number of agencies of Your Excellency’s Government a program of close collaboration to attain many of the objectives of the Resolutions of the Third Meeting of the Ministers of Foreign Affairs of the American Republics at Rio de Janeiro, and a series of important decisions have been reached on several points of this program.

In order to carry out its undertaking in accordance with Resolution II on the Production of Strategic Materials, the Government of Peru is establishing a Peruvian Amazon Corporation to develop the production and encourage the collection of wild rubber and other tropical products. Moreover, I have today transmitted to Your Excellency a note containing a proposal of the Government of Peru, in furtherance of the provisions relating to the production of strategic materials in Resolution II of the Third Meeting of the Ministers of Foreign Affairs of the American Republics at Rio de Janeiro, for developing the production of rubber in Peru and for making available to the United States all rubber produced in Peru other than a specified amount [Page 670] required for essential uses in Peru. This proposal provides for the purchase of such rubber by Rubber Reserve Company over a five-year period. The proposal also contemplates the establishment of a fund of $1,125,000 to be made available to Peru for the purpose of increasing the production of wild rubber in Peru.

I have taken up with the Export-Import Bank of Washington the question of obtaining an appropriate credit to assist in financing purchases in the United States of materials and equipment required in connection with the construction and development in Peru of useful public works and of agricultural, mining and industrial projects.8

In order to provide the fullest technical facilities and cooperation necessary to the successful development in Peru of production of rubber and other important and strategic tropical products, discussions were begun with members of the United States Delegation at the Rio de Janeiro Meeting looking towards the establishment of an agricultural experiment station in the Amazon region of Peru. These discussions have culminated in an agreement with the Secretary of Agriculture of the United States, a copy of which is enclosed,9 for the immediate establishment of such an experiment station at Tingo María. During my visit to Washington I have also taken up with appropriate officials of Your Excellency’s Government the desire of the Government of Peru to obtain the services of experts in highway engineering, erosion control, coal mining, and tea processing.

Discussions have also taken place with the Secretary of Agriculture and officials of the Commodity Credit Corporation regarding proposals for the purchase through the latter Corporation, for the duration of the war, of that portion of the Peruvian cotton production which is in excess of sales for Peruvian consumption and for export to other purchasers. These discussions have resulted in the conclusion with the Secretary of Agriculture of an agreement, a copy of which is attached,10 which should contribute in large measure to the maintenance of the Peruvian agricultural economy and the orderly handling of cotton crops in the face of dislocations of trade occasioned by the war.

As Your Excellency is aware, the Government of Peru has just adopted measures implementing further the recommendations contained in Resolution V on Severance of Commercial and Financial Relations adopted at the Third Meeting of the Ministers of Foreign Affairs at Rio de Janeiro.11 By these measures the Government of Peru will control the commercial and financial operations of firms [Page 671] and persons whose activities are deemed inimical to the security of the hemisphere. In this connection, the Government of Peru will consult with the Government of the United States regarding any measures which may be necessary to prevent such persons and firms from benefiting from the agreements which have been reached between our two Governments.

The Peruvian Government wishes to inform Your Excellency’s Government that it has entered into discussions with the Foreign Bondholders Protective Council, Incorporated, looking toward the early resumption of payments on the Peruvian dollar debt. These discussions with regard to the scale and amount of payments will be continued after my return to Lima and subsequent announcement will be made by my Government.

In conclusion I wish to express to Your Excellency my firm conviction that the program of further collaboration between our Governments developed during my visit will contribute greatly to the realization of our common aim of hemisphere security.

I avail myself [etc.]

David Dasso
  1. The Export-Import Bank established a credit of $25,000,000 in favor of Banco Central de Reserva del Peru for this purpose.
  2. Not printed; it was signed April 21, 1942.
  3. Not printed; this agreement was signed April 22, 1942.
  4. For text of Resolution V, see Department of State Bulletin, February 7, 1942, p. 124.