823.51/1496

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

No. 7537

Sir: With reference to the Embassy’s despatch No. 7409 of July 20, 1943,78 transmitting comments by the President of Peru regarding settlement of the Foreign Debt, I have the honor to transmit as enclosure no. 1, a statement just received informally from the Ministry of Finance and Commerce as to Peru’s External Funded Debt as of December 31, 1942, totalling S/578,204, 111.46.

Except for the Guano Loan79 on which interest and amortization charges are being paid, all of these obligations are now in default, although, according to the statement of the President of Peru quoted in the despatch just cited, the settlement of the foreign debt is “under study”, which statement the President reiterated in his annual message to Congress delivered on July 28, 1943.

Respectfully yours,

For the Ambassador:
Julian Greenup

Counselor for Economic Affairs
[Enclosure]

Peruvian External Funded Debt December 31, 1942

DOLLAR DEBT

[Page 752]
Amount Outstanding
Dollars Soles
1. Tobacco loan, 7%, 1927–1959. (Republic of Peru—Secured 7% Sinking Fund Gold Bonds of 1927) Amount issued $15,000,000 in bearer bonds of $500 and $1000. 8,728,000 31,173,884.88
2. National Loan First Series 6%, 1927–1960. (Republic of Peru, 6% External Sinking Fund Gold Bonds.) Amount issued $50,000,000, in bearer bonds of $500 and $1000. 48,367,000 172,752,897.57
3. National Loan, Second Series 6%, 1928–1961. (Peruvian National Loan 6% External Sinking Fund Bonds) Amount issued $25,000,000 in bonds of $500 and $1000. 24,452,500 87,337,238.78
Total dollar debt 81,547,500 291,264,021.23

STERLING DEBT

Sterling Soles
4. Provincial Council of Lima loan of 1911, 5% First Mortgage Bonds. Amount issued £600,000 in bearer bonds of £100. 483,900 8,411,115.93
5. Peruvian Government, 7–½% (reduced to 4%) Guano Loan 1922–1948. Amount issued £1,250,000 in bearer bonds of £100. 706,300 12,276,857.16
6. Peruvian National Loan 6% External Sinking Fund Bond—Second Series. Amount issued £2,000,000 in bearer bonds of £100, £500 and £1,000. 1,958,200 34,037,295.33
3,148,400 54,725,268.42
Plus dollar debt 291,264,021.23
Interest arrears on external funded debt in dollars. $57,270,129.88 204,552,295.59
Interest arrears on external funded debt in sterling £1,589,151.17.0 27,662,526.22
578,204,111.46
  1. Not printed.
  2. See item 5 of the enclosure printed below.