811:20 Defense (M) Peru/1116

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

No. 27

Sir: I have the honor to inform the Department that Dr. Alan M. Bateman, Assistant Director, Foreign Procurement and Development Branch of the Foreign Economic Administration, who visited Lima from March 26 to 29 for the purpose of discussing current mining problems, was very advantageously occupied in conferences with the local representatives of the Foreign Economic Administration, the Embassy officers, leading miners, the Finance Minister, the Minister of Fomento, ex-Finance Minister David Dasso, the General Secretary of the Ministry of Foreign Relations, the President and Manager of the Banco Minero, and representatives of mining organizations.

Dr. Bateman arrived shortly after the Finance Minister and the leading mining interests had brought up the question of renewing the Overall Metals and Minerals Agreement, as reported in despatch No. 9232 of March 15, 1944.51 The Peruvians of course were thinking in terms of higher volume and prices and were speaking of reports of unknown origin to the effect that the American Government is disposed to pay more providing the increase be devoted to upping the income of the laborers. The improved supply situation and the inconvenience to the United States of increasing and extending its war burden beyond practical limits had not received much attention, no doubt owing to their faith in our magnanimity.

The Doctor tactfully presented a logical, business-like, authoritative view of the minerals and metals situation and emphasized the interests of the United States as well as those of Peru. He told of fully adequate stock piles and an ample supply outlook in certain instances; of continued shortages in others; of declining world market prices here, firm quotations there; of the policy of the United States to render all possible assistance in cushioning the economic repercussions likely to set in soon, but also of the obligation of every friendly nation to shoulder a fair share of the load. Any revision of the agreement would of necessity have to contain flexible clauses as pertains to duration, volume, scope, and prices.

The conferees included the range of local financial thought, from Finance Minister East’s ingenious ideas to keep Peruvian remittances to the United States as low as possible to Mr. Pedro Beltrán’s52 for stimulating the most copious flow in the other direction. In a meeting [Page 1522] with the miners, Dr. Bateman had made it known there is little or no possibility of increased prices by the United States for the purpose of improving Peruvian wages. Deputy Manuel Llosa seriously inquired if some of the philanthropic agencies of the American Government could make up the difference.

The Peruvians always proceed on the theory there is no harm in asking the question; and if the answer is factual, logical, firm and friendly, they applaud with respect. Dr. Bateman’s reception was one of the warmest accorded to visiting American officials in the recent past, even though he spoke of retrenchment.

Dr. Bateman’s firm but pleasant handling of the various complex problems obviously impressed the two Ministers as well as the prominent officials in the mining industry, who were convinced of the reasonableness of his presentation of the less attractive current market trend and future probabilities for most minerals and metals.

The Embassy wishes to commend Dr. Bateman for valuable assistance in a type of work which will be increasingly important as the tapering-off period advances.

Respectfully yours,

For the Ambassador:
Julian Greenup

Counselor for Economic Affairs
  1. Not printed.
  2. Peruvian diplomat, who represented his country on the Inter-American Financial and Economic Advisory Committee; appointed Ambassador to the United States on June 28, 1944.