823.51/2–2447: Telegram

The Secretary of State to the Embassy in Peru

secret

90. Reur telephone conversation Under Secretary this date13 Dept endeavoring communicate to Council substance Peruvian Govt’s proposed settlement together with your comments. Dept will communicate with Emb by phone when Council’s reaction ascertained.

Dept hopes President Peru understands that even favorable action by Bondholders Council on any proposal for debt settlement would not carry assurance that any loan or credit will necessarily follow. With expiration of credit on books of Eximbank on Dec 31, 1946 (subject of conversations between Commercial Counselor of Peruvian Emb and Dept and Eximbank in December and also referred to in Art VII of draft credit agreement14 forwarded with letter of Dec 11, 1945 to Montero Bernales from Taylor, then Pres Eximbank) there no longer exists commitment on part present statutory lending authorities this Govt. They would have to consider afresh any credit request from Peruvian Govt.

Dept finds no evidence Pres fully understands this and it is anxious avoid any possibility embarrassment to either US Govt or Pres that might originate in misunderstanding these facts. Dept would therefore request that at earliest possible opportunity you approach Pres and restate situation. Please telegraph when this done.

Marshall
  1. See supra.
  2. Not printed.