823.24/7–644: Airgram

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

A–651. Reference Embassy’s telegram Nos. 862 and 881 of June 28 tad July 3,95 respectively, regarding the Peruvian import control project.

The following supplementary information concerning the subject is being forwarded in view of the Department’s interest and the importance of the subject:

Statements by Finance Minister East, representatives of the Chamber of Commerce and prominent businessmen indicate that the leading importers have convinced the Finance Ministry and its counselors that the imposition of a comprehensive import licensing program at this time is detrimental and unnecessary.

The representatives of the Chamber of Commerce and businessmen energetically protest against revealing the details of their import “business to a public office where the information is available to competitors and insist that under the prevailing conditions in Peru the Government is not justified in dictating what or how much an importer shall acquire abroad. They have also referred to the decision of the Finance Ministry as diametrically opposed to the principle of free trade toward which the Allied and associated nations are striving, and emphasized the fact that the Ministry’s decision is especially inopportune at the very moment when the nations carrying the burden of the war are endeavoring to remove restrictions.

The France Minister, having stated at the beginning that the control would be mild and would take into consideration all legitimate interests, has experienced no embarrassment in acceding to the majority [Page 1542] of opinion prevailing among business men. He had prepared a communiqué for publication in the newspapers of July 4th or 5th announcing that importers would be required to submit to the Ministry only notices, which might also be termed applications, showing the quantities, values, etc. of merchandise ordered abroad. There would be two copies, one of which would be stamped immediately and returned to the importer who could forward his order forthwith. The Peruvian diplomatic and consular officers abroad would not intervene in any way—all administrative action would be taken in Lima. Representatives of the Chamber of Commerce and businessmen explained that this decision on the part of the Finance Minister was made in order to avoid a protest meeting which had been announced by the Chamber of Commerce, to be followed, if necessary, by direct appeal to President Prado. The same representatives reported they would be satisfied with this simplified form if their continued efforts to abolish the whole plan are unsuccessful. However, they are still working toward that objective, and Mr. East’s failure to release the communiqué for publication on the 4th, 5th, 6th or 7th of July indicates they may be making some progress.

The subject has been discussed several times with the Commercial Secretary of the British Embassy and the Canadian Government Trade Commissioner who report that British and Canadian businessmen also have protested against every type of import control which is not absolutely necessary. They stated that the authorities in London and Ottawa have not replied to their reports which were sent out simultaneously with the Embassy’s telegram No. 782, dated June 13, 11 a.m., 1944. This leads them to the conclusion that the British and Canadian Governments are opposed to the scheme, or at least prefer to withhold comments on the subject. In the absence of instructions they describe themselves as in full agreement with the Department and this Embassy.

White
  1. Neither printed.