823.51/1546: Telegram
The Ambassador in Peru (White) to the Secretary of State
[Received 10:20 p.m.]
609. For complete report on debt negotiations before May 3 see despatches 87,44 143, and 184 [185] of April 17, 24, and 27 now presumably in Washington. No. 240 of May 544 left by courier 5 a.m., May 9th, fully described last meeting May 3. Believe preliminary discussions completed May 3 and proposal may be expected shortly. Another debt meeting this p.m.
East agreed that total dollar exchange available is considerably more than his first estimate; that much of accumulated tonnage import deficit will not need replacement; that Peru’s budget allocation [Page 1576] for debt service far lower proportionately than most other American Republics. Notwithstanding, Embassy feel that he will not modify his basic plan as described in above despatches.
This not due to Peruvians’ misunderstanding but to their past success in sidestepping obligations to United States dollar debt mentioned Department’s 463, May 6, 5 p.m.,48 postal debt and other pending cases. High ranking Peruvian officials and businessmen have openly stated that they see no impelling reason to pay money to United States simply at request of the Department and Embassy officials when other influential American officials have volunteered merchandise, loans, advances, increased prices, services, matching clauses, et cetera, totalling millions of dollars.
Much as Department’s assistance will be needed for satisfactory settlement our claims, I do not believe that American Government’s best talent can succeed in obtaining anything but absolute minimum if reliance is to be solely placed in appeals to reason and decency.
Before any action or declaration recommended awaiting East’s offer.
Rogers concurs with foregoing.