823.24/9–1244
The Ambassador in Peru (White) to the Secretary of State
[Received September 18.]
Sir: I have the honor to inform the Department of the prompt and continued cooperation of the Peruvian Government in disclosing and suppressing the re-exportation of United States merchandise to Argentina, as referred to in the following communications:
The Embassy’s telegram No. 1026 of August 11, 6 p.m., informing the Department of a report supplied by the Peruvian Government; and the Department’s reply thereto in telegram No. 864 of August 17, 6 p.m.
. . . . . . . . . . . . . .
Finance Minister East took both matters to the Council of Ministers and later reported Peru’s policy of cooperation is sincere, and there will be no re-exports to Argentina, barring possible clandestine operations. It was brought out in their discussions that the Supreme Decree of December 8, 1941, promulgated at the beginning of our economic warfare work and duly reported at that time, together with the Decree of November 7, 1942, provide full authority for prohibiting any re-exports to Argentina. A copy of the latter is enclosed herewith97 for ready reference. The Council decided further that goods arriving in Peru for transshipment to Argentina, on through bills of lading or when the documents emanating from the United States indicate the commodities were exported with the knowledge they were destined to Argentina, could not conveniently be stopped here. Argentina certainly would protest and possibly retaliate on wheat or other vital exports to Peru.
One of the primary questions in this matter may be whether the corresponding authorities in the United States have properly informed American exporters and banking institutions; and, if so, whether due care has been exercised by the latter in examining their documents and reporting to the export control officers.
Without affecting in any way the Peruvian Government’s determination to comply with its agreement to cooperate with the United States in this as well as other respects, it may be mentioned that some of the officials are rather confused by the occasional newspaper reports of ever-increasing United States purchases in Argentina. The papers [Page 1546] of September 10, 1944, for instance, carried a U.P. item dated the 9th in Buenos Aires, which stated that “the Corporation for the Promotion of Interchange announces that Argentine exports to the United States increased by 38.7% during the first semester of 1944 as compared with the corresponding period of 1944 [1943?], the total amounting to 373,431 tons”.
The Department will be interested in learning that the Central Reserve Bank and Mr. East supplied the new information contained in the Embassy’s telegram No. 1150 of September 8, 7 p.m., 1944,99 which demonstrates the most effective cooperation. The Minister made the special request, however, that the sources be guarded in the utmost confidence to avoid possible complications with the Central Bank of the Argentine Republic and the Argentine Government.
Respectfully yours,
Counselor for Economic Affairs