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

Excellency: I have received with deep gratification Your Excellency’s cordial note of April 23, 1942 with reference to the matters which I and other officials of the Government of the United States have had the privilege of discussing with you during your visit to Washington. I need not assure you of the personal satisfaction which it has been for me to collaborate with you in the establishment of a program to attain certain of the objectives of the Resolutions of the Third Meeting of Ministers of Foreign Affairs of the American Republics at Rio de Janeiro, and I am convinced that the decisions taken will contribute in important degree to the security of the hemisphere.

My Government is pleased to note that, in furtherance of Resolution II on the Production of Strategic Materials, Your Excellency’s Government is creating a Peruvian Amazon Corporation to undertake and stimulate the production of strategic tropical products. In this connection I have today transmitted to Your Excellency a note accepting the proposal of the Government of Peru with respect to the acquisition by the Rubber Reserve Company over a period of five years of all rubber produced in Peru other than the specified amount required for essential uses in Peru. This agreement marks an important step in the carrying out of the broad program for the mobilization [Page 672] of strategic material resources for the security of the hemisphere which was undertaken at the recent Rio de Janeiro Meeting.

I am informed by the Secretary of Commerce that the Export-Import Bank finds itself heartily in sympathy with the objectives of the program of the Government of Peru and is prepared to establish a credit in favor of Banco Central de Reserva del Peru in the sum of $25,000,000 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. It is recognized that the United States cannot undertake to furnish machinery and equipment in short supply due to the exigencies of war, and that priorities necessary to acquire such items in the United States will be granted only after careful study and determination that the establishment of the industry for which they are needed will contribute directly in important measure to the war effort of the United States and the security of the hemisphere.

I have noted with satisfaction and interest the agreements entered into by Your Excellency with the Secretary of Agriculture for the establishment of an agricultural experiment station at Tingo María and for the purchase through the Commodity Credit Corporation of that portion of the Peruvian cotton production which is in excess of sales for Peruvian consumption and for export to other purchasers. I also take pleasure in informing you that my Government has found it possible to arrange to make available to Your Excellency’s Government the services of competent experts in highway engineering, erosion control, coal mining, and tea processing.

My Government has noted with great satisfaction the measures adopted by the Peruvian Government to control the commercial and financial operations of persons whose activities are deemed inimical to the security of the hemisphere, which are referred to in Your Excellency’s note, as well as Your Excellency’s statement that the Government of Peru will consult with the Government of the United States regarding any measures which may be necessary to prevent such persons from benefiting from the agreements reached between our two Governments. It is understood that the two Governments will consult particularly with respect to the policies and procedures to be adopted for dealing with cotton which may be produced by persons or firms on the United States Proclaimed List of Certain Blocked Nationals.

I likewise welcome the information that the Government of Peru is carrying on discussions with the Foreign Bondholders Protective Council, Incorporated, looking towards an early resumption of payments on the Peruvian dollar debt.

Accept [etc.]

Cordell Hull