Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

103.9169/8–2844

Agreement Between Peru and the United States Concerning the Purchase and Export of Metals and Minerals From Peru to the United States

Lima, August 25, 1944

Preamble

Pursuant to Resolution II, the Third Meeting of the Ministers of Foreign Affairs of the American Republics at Rio de Janeiro,⁷⁵ the Governments of the Republic of Peru and the United States of America undertook, in common with the governments of the other American republics, to cooperate with each other to the utmost possible degree in the mobilization of their economic resources. Reaffirming these principles and prompted by the mutual friendship and esteem of the peoples of the Republic of Peru and the United States of America, the Government of the Republic of Peru and U. S. Commercial Company (to which agency all obligations, rights and privileges of Metals Reserve Company have been duly transferred), an official agency of the Government of the United States of America, now agree that effective July 1, 1944, and thereafter until this Agreement is terminated:

Agreement

1. U. S. Commercial Company shall purchase the metals and minerals of Peruvian origin listed in Exhibit “A”⁷⁶ hereof, at the minimum prices and terms therein specified, which may be offered to it from such sources as it selects provided that it shall not be obligated to make any purchases from producers or suppliers who are on the Proclaimed List of Blocked Nationals of either the Government of the Republic of Peru or the Government of the United States. The maximum quantity of any metal or mineral that U. S. Commercial Company is obligated to purchase hereunder shall not exceed one hundred and twenty-five per cent of 1942 exports of such metal or mineral produced in Peru, with the exception of tungsten; provided, however, that U. S. Commercial Company shall have the option to accept under the terms of this Agreement any amount in excess of such maximum quantities as may be available for export from Peru.

2. Pursuant to the orientation of the international policy it has adopted, the Government of the Republic of Peru will continue to limit the exportation of all strategic metals and minerals to (1) the United States, (2) the British Empire, and (3) the other American republics which have systems of export control acceptable to the Governments of the Republic of Peru and of the United States. In no event shall exports be made to persons who are on the Proclaimed List of Blocked Nationals of either Government. The Government of the Republic of Peru shall use its best efforts to expedite the deliveries to the United States of metals and minerals purchased under this Agreement and will permit deliveries of these materials to other American republics only after consultation and agreement between the appropriate representatives of the two governments of the Republic of Peru and of the United States; provided, however, that the obligations of U. S. Commercial Company shall be correspondingly reduced by the amounts of the stipulated materials which are exported from Peru to other consignees in the United States.

3. (a) The Government of the Republic of Peru proposes to administer its tax policy 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 shall not be of such a nature as to interfere with the accomplishment of that purpose.

(b) If during the term of this Agreement the taxes, levies, fees or other charges imposed by the Peruvian Government on the production or export of strategic metals and minerals should be changed against the conditions of clause 3(a) the Agreement shall not continue in effect unless the Governments of Peru and the United States shall agree to its continuation.

4. This Agreement will continue in effect until terminated by mutual agreement, provided, however, that at any time on or after July 1, 1944, notice may be given by the Government of the Republic of Peru or by U. S. Commercial Company of intention to cancel this Agreement, such cancellation to become effective six months after such notice.

5. At any time on or after July 1, 1944, notice may be given by U. S. Commercial Company of its intention to revise this Agreement with respect to the quantity or price of any metal or mineral covered by the Agreement, such revision to become effective three months after such notice.

6. For the purpose of this Agreement strategic metals and minerals shall be those listed in Exhibit “A” and such other metals and minerals as are from time to time deemed by the Government of the United States to be essential to the war effort.

Dated at Lima, Peru, this twenty-fifth day of August, 1944.

U. S. Commercial Company
By

John Campbell White

Ambassador of the United States of America
Republic of Peru
By

Julio L. East

Minister of Finance and Commerce

U. S. Commercial Company
By Warren G. Libbey
Special Representative

75. Section II of the Conclusions of the Meeting consists of 11 recommendations and one resolution. The reference here appears to apply to the recommendations. For text, see Department of State Bulletin, February 7, 1942, pp. 118–119.
76. Not printed; the metals listed were copper, lead, zinc sulphide, and tungsten ores and concentrates, electrolytic zinc, and recoverable gold and silver in copper and lead ores.