823.51/1491: Telegram

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

881. From the Under Secretary. The failure of the Peruvian authorities to fulfil their assurances regarding the dollar funded debt is viewed by the Department with increasing concern. The Embassy is aware of the repeated assurances given by Peruvian officials, including Finance Minister Dasso in April 1942, that some action in this matter would soon be taken by the Peruvian Government. Those assurances have been almost completely ignored. The continuance of such a Peruvian attitude will have a cumulative effect in weakening the favorable public opinion in this country upon which financial and economic collaboration by the United States with Peru is in the last analysis based.

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Please call upon President Prado and stress the importance, for the reasons stated, of positive action by the Peruvian Government to adjust these obligations on an equitable basis. It is noted that the financial position of Peru is stronger than in April 1942 when Dasso’s assurances were given. [Welles.]