811.20 Defense(M)Peru/655: Telegram

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

466. Reference Department’s telegram number 379 March 29, 9 p.m. and 380, March 29, 10 p.m.51 Finance Minister states that the suggested text of article 3 in telegram 379 is considered even more drastic than article 3 as suggested in Department’s circular telegram 104, January 29, 10 p.m., and that it would cause the Government considerable embarrassment with Congress.

He stated that in place of any article 3, he would prefer to write me a letter incorporating the text of article 3 as cited in telegram 104 above omitting the last sentence thereof about freezing export taxes. He asked me to inquire if this alternative procedure would be satisfactory to Metals Reserve.

In the event the Department and Board of Economic Warfare insist on retaining article 3 in some form or other, it is suggested that something similar to the following wording be considered:

“This agreement to continue in force so long as the Peruvian tax structure remains as it was on the date of signature of this agreement or during such period thereafter within a period of 12 months as may be considered mutually satisfactory to both Governments”.

Either of these selected would seem to afford a measure of protection against excessive tax increases.

  1. Latter not printed.