611.2331/313

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

No. 3450

Sir: I have the honor to acknowledge receipt of the Department’s confidential instruction No. 1104 of April 7, 1942, enclosing a memorandum of conversation with the Peruvian Commercial Counselor on April 332 regarding the trade agreement negotiations.

I have just been informed by Dr. Francisco Tudela that the American list is acceptable to the Peruvian government and that the Peruvian Embassy in Washington today is being advised to that effect.

With reference to the cotton quota, Dr. Tudela stated that the Peruvians realize the political difficulties encountered in the United States and that if it is impossible eventually to remove the quota an alternative measure is being suggested that some provision be included which would permit the redistribution of quotas, along the lines adopted in past years with reference to the redistribution of the sugar quota.

The only additional comment I have to make at the present time is with reference to the 20% increase in the basic Peruvian import duties. If adequate adjustments are not made, it is quite possible that nations which enjoy most favored nation treatment with Peru [Page 688] on the basis of the old duties will have a competitive advantage over the United States.

Respectfully yours,

R. Henry Norweb
  1. Instruction No. 1104 not printed; for memorandum of April 3, see p. 683.↩