740.10112 RP/8–1346

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

No. 220

The Ambassador has the honor to refer to the Department’s confidential circular airgram of July 22, 1946, 11:05 a.m.,48 emphasizing the importance of maintaining close working relations with local governments.

A copy of the Embassy’s communication in this regard to the Peruvian Minister of Foreign Affairs is enclosed.

The Lima morning press of July 7 [sic] reported that on Wednesday, August 6 [7?] there was read in the Peruvian Chamber of Deputies a report of a Commission appointed to investigate the activities of the Superintendency of Economy regarding the handling of assets of Axis nationals. The report stated that during and since the war there have been serious irregularities, illegal transfers, partiality and preference, auctions for less than a third of value, accounts not certified, errors in [Page 1229] proceedings, etc. The report recommends that new evaluations be made, that proceedings be reviewed, that new auctions be held, that responsibility be ascertained and that the officials involved be accused of negligence and personal interest. There may be further developments. Additional details will be reported by the Embassy.

No. 100

Excellency: I have the honor to refer to the Embassy’s communication No. 614 of June 7, 194649 regarding the withdrawal of the Proclaimed List of Certain Blocked Nationals.

In further connection therewith I am instructed to inform Your Excellency’s Government that the withdrawal of the Proclaimed List of Certain Blocked Nationals has not lessened the need of my Government for information regarding any progress made in divesting individual spear-head firms of enemy ownership and in the general program of replacing Proclaimed List Nationals. On the contrary, it is considered that the termination of the Proclaimed List makes it more important than ever for our respective Governments to maintain close working arrangements for the most effective continued development of the replacement program.

My Government considers that it is particularly important that this Embassy and the Department of State be afforded an opportunity to review proposed reorganizations or liquidations of spear-head firms before such firms are officially or legally removed from intervention by Your Excellency’s Government. New information regarding enemy ownership of firms in the Western Hemisphere is constantly reaching the authorities of my Government from Germany, and the examination of this information may disclose enemy ownership hitherto unknown to this Embassy or to the Peruvian Government.

Although the Proclaimed List of Certain Blocked Nationals has been withdrawn, such withdrawal does not mean that former Proclaimed List Nationals are regarded as satisfactory agents for American business. It is therefore highly desirable that my Government be informed promptly of reorganizations or liquidations of spearhead firms so that the Department of Commerce of the United States will be able immediately to inform interested United States business firms.

I wish to reiterate that my Government has every confidence that Your Excellency’s Government will fulfill its inter-American commitments and complete the replacement program which has progressed so satisfactorily.

I avail myself [etc.]

Prentice Cooper
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