623.116/21a: Telegram

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

647. The Department regrets that the Peruvian Government considers it necessary to institute the new import control system referred to in your telegram no. 782, June 13, 11 a.m. It has noted that the new import license system is described as a temporary control during the transition period, and strongly hopes that, if adopted, the system will be removed as promptly as conditions permit.

The Department particularly regrets that the measure is being initiated at a time when it seems that emphasis might be placed more logically on the progressive diminution and elimination of wartime controls, as rapidly as wartime conditions permit, in anticipation of efforts to revitalize and augment international trade in the post-war period in which Peru has, of course, a most vital interest.

Further, the reasons which have been advanced for the adoption of the measure, including protection of newly established industries, do not seem to be directly identified with wartime or other emergency considerations.

In the absence of details as to the contemplated licensing system, the Department is unable to advance a definite opinion as to whether the measure would be in contravention of Article III, paragraph 2, [Page 1541] and Article X, paragraph 1 of the trade agreement with Peru,94 but there seems to be reasonable ground for so believing, us the reasons advanced for its adoption do not appear to fall within the provision of Article XIV, clause “h”.

Under the circumstances, you may, in your discretion, endeavor to Secure a further postponement of the measure, and request further details in order that the Department may have an opportunity to give the measure more adequate consideration.

Hull
  1. Signed at Washington, May 7, 1942; for text, see Department of State Executive Agreement Series No. 256, or 56 Stat, (pt 2) 1509. The articles cited indicate a prohibition against a trade restriction except under circumstances therein specified.