740.23112 R.P/11–1044

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

No. 1912

Sir: I have the honor to inform the Department of further progress toward the final liquidation of Axis interests in Peru. According to figures supplied by the Superintendency of Economy, the Government of Peru has up to November 7, 1944 placed under control the sum of [Page 1568] S/40,742,054.15 derived from the liquidation of businesses and properties belonging to Axis subjects. This total is made up as follows:

Funds frozen in the Caja de Depositos y Consignaciones S/. 28,886,237.52
The Peruvian Government’s participation in the liquidation of Japanese owned cotton 2,093,624.94
Retained by the Peruvian Government in guarantee of its preferential rights under Supreme Decree of September 16, 1942 3,520,129.17
Intervention accounts in commercial banks 3,574,074.26
Merchandise and equipment of intervened firms 2,667,988.26

The Superintendency of Economy reports that the above mentioned figures correspond to 254 cases of which 194 were transferred as the result of direct negotiation; 92 were auctioned; and 68 remain under Government intervention.

Comparison of this information just received from the Superintendency with that which formed the basis of the Embassy’s Despatch No. 840 of July 12, 1944 shows that material progress has been made in the elimination of Axis interests and the freezing of their assets. The amount frozen in the Caja de Depositos y Consignaciones has for instance increased by approximately S/8,000,000 since the former report was made. No estimate of the probable total value of all Axis holdings has yet been made but it cannot be very much larger than the sum already mobilized by the Superintendency.

Respectfully yours,

For the Ambassador:
Julian Greenup

Counselor for Economic Affairs