740.00113 E. W. 1939/909: Airgram
The Secretary of State to the Ambassador in Peru (Norweb)
A–685. Your A–858 of May 8.37 Department notes that the statement is made in the airgram under reference that “a law threatens all Axis nationals with the expropriation of property after May 31”. It would appear, however, from your despatch 6594  of April 12 and despatch 6691 of April 2938 that at the outset, at least, expropriation will be applied only to the more important Axis enterprises. The Department feels that expropriation of all Axis and Proclaimed List businesses may not be necessary to achieve the desired ends of control or eliminating undesirable elements, and, in fact, such a result would constitute an extension of the Washington Recommendations. It is suggested that you postpone urging the Peruvian authorities to expropriate enterprises other than those Proclaimed List firms which are clearly Axis controlled or dominated pending the receipt by you of a circular instruction now being prepared in the Department relating to the Proclaimed List program in Brazil.
In the interim, if you have not already done so, a classification of listed firms in accordance with the circular instruction of December 17, 194239 should be helpful in determining whether you wish to urge the Peruvian Government to expropriate any given concern.[Page 731]
The Department has noted, with satisfaction, the increased anti-Axis activities on the part of the Peruvian authorities since the closing days of 1942.