811.20 Defense(M)Peru/499b: Telegram

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

104. The Department has received informally from the Board of Economic Warfare a copy of the proposed Over-all Metals and Minerals Agreement with the Government of Peru of which numbered paragraph 3 reads as follows: “The Government of the Republic of Peru shall continue to administer its tax policies in such a manner as to stimulate the production and free flow of strategic metals and minerals, and agrees that any additional or increased taxes, fees, charges or levies which may be imposed during the term hereof with respect to such metals and minerals or the producers thereof shall not prevent the major portion of the increases in prices provided herein from accruing to such producers. It specifically agrees furthermore that no increases in export taxes or fees enacted during the term of this agreement will apply to such metals and minerals.”

While the Department assumes that the Embassy is represented in all discussions on this agreement, it would appreciate your opinion on this provision.