Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume V

811.20 (D) Regulations/9939

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

No. 6172

Lima , February 22, 1943.
[Received March 6.]

Sir: Referring to the Department’s telegram No. 25, dated January 9, 9 p.m., 1943,⁵⁴ regarding the arrival of Dr. Wilkinson⁵⁵ and Mr. Henry⁵⁶ for the purpose of initiating the decentralization export control plan in Peru, I have the honor to report that their work was successfully concluded on February 17, and the persistence and tact with which they pursued their tasks created a very favorable impression among the leading Peruvian officials.

[Here follow three paragraphs on procedure and personnel.]

Attached hereto is a copy of the memorandum of agreement which was approved on February 15 and submitted through the Foreign Office on February 20. It closely resembles the form adopted in other countries visited by Dr. Wilkinson and Mr. Henry. Points of major interest were the Minister’s⁵⁷ final whole-hearted acceptance of the idea that in this critical period the United States is fully justified in requesting its Peruvian friends, colleagues and clients to sacrifice; in drastically limiting the diversion of strategic materials from the immediate war effort to ordinary civil use; and in restricting shipping space to the 7,000 tons now allotted to Peru. Although I believe the Minister had been gradually coming to this opinion during previous weeks of rather intense deliberation on the subject, as a result of our various conferences, there is no doubt that the accurate, technical knowledge and firm presentation of the seriousness of the supply situation by Dr. Wilkinson and Mr. Henry were factors of special influence.

Finance Minister East suggested April 1, 1943 as the date on which the decentralized export control plan should become operative and this date was agreed upon by all concerned.

. . . . . . . . . . . . . .

Respectfully yours,

R. Henry Norweb

[Enclosure]

Memorandum of Agreement

In order to promote the greatest possible efficiency in the war effort and to facilitate the discharge of the responsibilities of the Board of Economic Warfare, hereinafter referred to as “the Board”, for the administration of the commercial export programs of the United States, it is deemed desirable to delegate certain phases of the Board’s activities to the Embassy of the United States at Lima, hereinafter referred to as “the Embassy”.

Under the proposed procedure the Embassy, in close collaboration with the Government of Peru, through an agency that will be designated by the latter as the “Import Department”, hereinafter referred to as “the Department”, will be charged with certifying Peru’s import requirements to the end that the Board may be advised at all times of such requirements.

The general outline of the plan of procedure which tentatively has been considered most effective is as follows:

1. All juridical or natural persons resident in Peru desiring to import articles and materials from or by way of the United States will present to the Department applications for “import recommendations”.

2. The Department will make a prior examination of such applications for import recommendations with a view to selecting and segregating on a provisional basis those which are considered most urgently required. This preliminary selection by the Department will be made in the light of the estimates of supply fixed by the United States as available to meet Peru’s minimum essential requirements, the estimates of transportation availabilities, and importance of the article covered by the applications to the economy of the country, its public services, the prosecution of the war, and the maintenance of continental defense.

3. The applications which have been examined by the Department will be referred to the Embassy for consideration in the light of the standards set forth in the preceding paragraph and on the basis of the Proclaimed Lists.

4. After such consideration the Embassy and the Department, by mutual agreement, will determine which applications for import recommendations will be approved. Such applications will include those approved by both the Department and the Embassy as well as those initially rejected by the Embassy but subsequently accepted after consultation with the Department.

5. The import recommendations approved jointly by the Embassy and the Department will be held within the limits of estimates of supply for designated articles and the estimated transportation availabilities (as referred to in paragraph 2).

6. The import recommendations definitely approved in accordance with the established procedure will be classified by the Embassy and the Department according to the following categories:

Category A—Orders relating to the production and transportation of materials essential to the war program of the United Nations.

Category B—Orders relating to the maintenance of essential services of the local Government (this category will include public utilities).

Category C—Orders relating to the maintenance of civilian enterprises essential to the economy of the country of destination.

All copies of import recommendations will be appropriately marked to indicate the action taken by both the Embassy and the Department.

7. The Board will endeavor to issue export licenses on the basis of the import recommendations approved jointly by the Embassy and the Department, the supply situation in the United States and the availability of transportation. It should be understood that the Board may refuse to grant export licenses for any of the recommended orders when such action is deemed necessary to the best interests of the war program of the United Nations.

8. The Board, without reference to the preceding procedure, may approve applications for permission to export goods necessary to take care of the needs of war projects of the United Nations. Such applications will cover goods which are not included in the estimates of supply furnished Peru, and, therefore, will not be charged against such estimates of supply.

9. The Embassy on behalf of the Board will inform the Department as to the disposition by the Board of import recommendations received and as to the issuance of any export licenses not covered by import recommendations.

10. In the case that, at the time an approved import recommendation is being “processed”, the applicant is placed on the proclaimed lists or becomes an unsatisfactory consignee, the Department will be so advised in order that the Department jointly with the Embassy may designate a new consignee.

11. The Board in collaboration with the Embassy and the Department will endeavor to develop procedures by which information can readily be furnished to importers of material not easily obtainable in the United States.

12. The Board, the Embassy and the Department will draw up instructions regarding the operation of the proposed procedure and will devise ways and means to facilitate its implementation.

54. Not printed.
55. H. A. Wilkinson, representative of the Board of Economic Warfare.
56. R. Horton Henry of the American Hemisphere Exports Office, Department of State.
57. The Minister of Finance, Julio L. East.