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

No. 1510

Sir: I have the honor to report the promulgation of Law No. 10880 dated April 1, 1947 (see clipping enclosed)48 paragraphs (a), (b), (c) and (d) of Article I of which contain provision for taxation of imported commodities when consumed in the Province of Jauja at rates in excess of taxes applied to similar commodities of national origin. In the event the higher charges were to be applied to goods of United States manufacture, this would appear clearly to contravene Article II of our trade agreement with Peru.

This matter was discussed by the Commercial Attaché with the Minister of Finance49 on April 25. It was the Minister’s contention that although Law No. 10880 does not in itself contain provision for any exceptions in the application of the taxes under reference, the appropriate authorities of the Peruvian Government would naturally take into account any agreements or treaties having the effect of law and providing for exemption from internal charges at rates in excess of those applicable to national products.

Nevertheless, the Minister agreed that for the purpose of avoiding possible errors in the application of the law his Ministry would perceive no objection to the issuance at the Embassy’s request of a letter [Page 1026] to the appropriate Peruvian Government authorities calling to their attention the existence of Article II of the United States-Peruvian trade agreement. There is accordingly enclosed a copy of the Embassy’s communication of April 2950 on this subject to the Minister of Finance. A copy of the Minister’s reply, when received, will be forwarded promptly to the Department.

Respectfully yours,

For the Chargé d’Affaires, a. i.
Thomas S. Campen

Commercial Attaché
  1. Not reprinted.
  2. Luis Echecopar Garcia.
  3. Not printed.