811.71223/71

The Chargé in Peru (Patterson) to the Secretary of State

No. 9239

Sir: Referring to the Department’s airgram No. A–152, dated February 29, 1944, I have the honor to report that the topic was discussed with Finance Minister East on March 8.

The views of the Department and of the United States Post Office Department were communicated to him, together with other arguments of the class Mr. East has advanced in explaining to us why he is unable to comply with our requests. A summary of the main points is given in the attached copy of a letter34 which was handed to the Minister.

The Minister understood our position clearly, but did not know how he would obtain the funds necessary to repay the $308,000, since there is no budgetary provision for that item. When it was recalled that we had suggested the convenience of making such a provision at the proper time several months as well as a few years ago, he remarked that this government unfortunately is burdened with heavy obligations incurred by previous cabinets. Mr. East nevertheless recognized that these debts represent continuing obligations of the Peruvian people, and stated he would consult the President35 with the object of determining what could be done.

In the same conversation the Minister stressed the importance of renewing the Overall Metals and Minerals Agreement36 and of receiving a special financial donation from the Goodyear Tire and Rubber Company in addition to the normal taxes and charges collected from industries in general.

In the event that the Department wishes to approach all of these [Page 1571] problems in a friendly trader-to-trader fashion, a number of possibly useful suggestions will be found in the despatches cited below:37

  • No. 8983, of February 7, 1944
  • No. 9116, of February 25, 1944
  • No. 9232, of March 15, 1944
  • No. 3217, of March 28, 1942.

Respectfully yours,

For the Chargé d’Affaires a.i.:
Julian Greenup

Counselor for Economic Affairs
  1. Not printed.
  2. Manuel Prado Ugarteche.
  3. For correspondence on the renegotiation of this agreement, see pp. 1518 ff.; for previous correspondence on negotiation of the agreement and draft text, see Foreign Relations, 1943, vol. vi, pp. 735 ff.
  4. None printed.