823.51 Bondholders/2–2547: Telegram
The Secretary of State to the Embassy in Peru
96. Supplementing suggestion paragraph 3 Deptel 93 Feb 2516 Rogers has telegraphed:
“Council will expect Peruvian legislation establishing these terms will contain provision that original contract rights will be restored [Page 1005] if any failure occurs in prompt payment of interest and amortization as scheduled in new plan; also that if any more favorable terms are granted by Peru hereafter to any other holders of foreign national or guaranteed debt now existing, Peru will extend proportionately equal treatment to dollar bonds of nation and Callao. These provisions become important as extended step-up period increases risk and sterling bonds are not now included in settlement. We assume new legislation will repeat reference to Lima dollar bonds as contained in project of law of Dec 31, 1945 second paragraph of first article. Rogers”
Proposal assumes retention all Montero bill terms it does not necessarily alter.
- Not printed.↩