Office of the Historian

740.23112 RP/7–1244

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

No. 840
Lima, July 12, 1944.
[Received July 18.]

Sir: I have the honor to inform the Department of the progress that has been made toward the final liquidation of Axis interests in Peru. The Embassy has received from the Superintendent of Economy a copy of his report on the work of the Superintendency up to June 30, 1944 which was prepared for enclosure in the President’s forthcoming address on the state of the nation. The contents of this document are summarized in the following numbered paragraphs:

(1)
Peruvian citizens have acquired by direct negotiation 136 Japanese properties and 35 German properties, or a total of 171 Axis properties valued at S/11,899,087.44, and 70 agricultural contracts valued at S/2,505,416.27.
(2)
The expropriation of 101 Axis properties has been ordered and the corresponding auctions decreed, the base value of these being S/1,048,850.39.
(3)
The system of interventions is now being abandoned and 94 have already been ended, 57 by transfer of the corresponding business to Peruvians, 24 by total liquidation, and 13 by official expropriation.
(4)
There are still under intervention 85 industrial and commercial organizations with property assets of S/2,310,370.84 and cash in banks of S/1,162,704.03.
(5)
There are 26 businesses under administration with property assets of S/2,370,358.58 and cash in banks of S/668,693.24.
Thus the Axis businesses still under intervention and administration have cash and property assets, which upon final liquidation will be deposited in the Caja de Depósitos y Consignaciones, of S/6,233,126.69.
(6)
The Dependencies of the Peruvian Government have acquired two former Axis properties. The Ministry of War has bought the Factoria Nacional S.A. (P/L)25 and the Banco Industrial has acquired the Fábrica de Artículos de Jebe Kawai.
(7)
The Caja de Depósitos y Consignaciones has received from the Superintendency of Economy cash and securities valued at S/14,355,635.25 which added to the amounts turned over to the Caja by commercial banks under orders of the Superintendency brings the total of Axis funds held therein up to S/20,933,096.74.

Respectfully yours,

For the Ambassador:
Julian Greenup

Counselor for Economic Affairs
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