800.8820/1248: Telegram
The Secretary of State to the Ambassador in Peru (Norweb)
684. Your despatch 6923, May 24.5 Conversations with Chavez6 and interested agencies have led to the conclusion that the Peruvian export control cannot be coordinated with our import control without much loss of time and delay of shipments. Peru would lose by such interference with her exports. WSA7 cannot be expected to put in vessels to lift Peruvian products without assurance that these products can be exported. Such control is likely to interfere especially with occasional last-minute arrangements to fill in with non-essential cargo which Peru cannot ordinarily ship.
It is believed here that WSA has not discriminated against the Peruvians in the allocation of cargo. Delay in getting cargo for the first trip of the Peruvian vessels was caused by the lack of an agent here (see Department’s 212, February 22).5 On May 7, before the Ucayali was ready to load for second voyage, Grace, as WSA’s agent, cabled that zinc concentrates cargo was being worked out. When this was not accepted, a sugar and wool cargo was agreed to by a Grace cable of May 22. Now, WSA learns that the Perené will carry this sugar and perhaps some flax, and the Peruvians want the Ucayali, which is now engaged in coastal trade, to load lead and copper bars in late June.
It appears that the Peruvians do not wish to carry priority cargo laid out by WSA as had been agreed. If you believe it will help to make the Peruvians forget, hereafter, their objection to putting the Ucayali in the New Orleans run, permission will be granted for the lead and copper cargo, but we would much prefer to have priority cargo moved.
The Department feels that it may have been a mistake for the request for the Ucayali to go to New Orleans to have come through [Page 716] Grace, but it is hoped the Peruvians will understand the request was made only because unanticipated congestion on the West Coast forced diversions of all vessels possible to other areas. Chilean and Grace Line vessels are also required to go into the Gulf.
Please endeavor to straighten out the misunderstanding with the Peruvians and see if a better understanding of the situation will not lead them to withhold application of the export control.
Your recommendation as to whether the Ucayali should be permitted to move lead and copper bars is needed promptly since WSA is delaying an answer to the Peruvian request.
It has just been learned that 1500 tons of zinc concentrates at Supe can be made available for Ucayali and this is far more needed for the war effort than lead. It is hoped you can arrange to have it lifted.