823.24/780: Telegram

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

855. Reference Department’s unnumbered airgram June 7, 6:10 p.m.65 and circular telegram June 12, 7 p.m.66 The various sudden modifications introduced in the export control system since the initial period when the United States proposed the granting of general licenses in exchange for local legislation governing reexports have been subject to criticism among local officials and businessmen in a way which has not enhanced our reputation for efficient planning and enterprise.

Decentralization Plan A67 was inaugurated with extensive publicity and after laborious negotiations only 10 weeks ago. The Peruvian as well as our own Government set up special organizations and regulations which are just being accepted by the general public.

The Canadian Government’s exports have just been placed under the plan during the last few days and in the absence of any reference to Canadian goods the reaction will be unfavorable.

Moreover, the Peruvian Government certainly will be unable to understand how it is possible to authorize United States exporters to establish essentiality or for the Office of Exports to examine privately submitted applications “on their own merits”, when the local authorities at the behest of the United States Government have just announced it is imperative the Peruvian Government itself render the decision in order to assure sacrifice in maximum degree for the common cause.

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The release of Export Bulletin No. 9968 quite surely will produce turmoil throughout the hemisphere and diminish confidence in the sincerity of the United States. Only by the utmost fortune will the Axis forces fail to seize upon it. In the Embassy’s opinion no effort should be omitted to suppress dissemination thereof.

I have discussed the principal points in strict confidence with the best-informed Peruvian authority. He heard the news with consternation and requested my cooperation in holding this whole subject in abeyance pending mature deliberation.

In the meantime we can quietly approve Import Recommendations for additional tonnage on non-allocated commodities with sufficient liberality to fill the extra shipping space. Several bottoms could be used immediately or at any time for lumber, coke, several pending orders for second hand textile and other machinery, etc.

It is my sincere hope the Department will be successful in warding off this impending setback in our comparatively favorable relations with Peru and I believe with all nations including our immediate Allies in the struggle.

BEW representative here concurs in the foregoing.

Norweb
  1. Ante, p. 117.
  2. Ante, p. 119.
  3. For an outline of this plan, see circular airgram of January 19, 8 p.m., p. 106.
  4. Issued by the Office of Exports of the Board of Economic Warfare.