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

823.24/1221: Telegram

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

Lima , June 13, 1944—11 a.m.
[Received 2:33 p.m.]

782. Department’s circular airgram May 25, 11:15 a.m.⁸⁷ Peruvian Government agrees to decentralization rollback.

But despite Embassy’s explanation of disadvantages and Peru’s desire to remove unnecessary governmental intervention as soon as possible, temporary controls during transition period are considered absolutely necessary: (1) to protect newly established domestic manufactures; (2) curb increasing volume of trade by refugees at the expense of old established firms; (3) curtail imports luxury items at high prices from Argentina and elsewhere which already are depleting the relatively small foreign exchange reserve; (4) because Peru, it is said, is about the only nation without extensive trade control. Consequently the Government has decided to require approval of all orders of merchandise from all countries effective July 1 through a system of licenses issued by the Finance Ministry and communicated to the Peruvian Consuls abroad.

The corresponding notice was to have been published June 15, but Finance Minister⁸⁸ has agreed to postponement until June 17 in observance of principle of consultation and will be pleased to receive Department’s observations for such use as may be possible. Please telegraph by June 17.⁸⁹

White

87. Not printed; it conveyed a proposal to require import recommendations only for commodities on a positive list, effective July 1, 1944. The most important items listed were steel, cotton, rubber, rayon, wool, and their products. (103.9196/3680a)
88. Julio L. East.
89. See Department’s telegram 647, June 16, p. 1540.