The American Ambassador in Peru ( Cooper ) to the Peruvian Minister of Finance and Commerce ( Echecopar Garcia )58

My Dear Mr. Minister: As suggested by you I had the pleasure of attending on August 21 a conference with the Director General of Finance, Dr. José Barreda Moller, and the Administrator of the Tobacco Monopoly, Ing. Kaymundo Quintana, concerning various Peruvian tax laws whose application appears to be contrary to the provisions of the trade agreement between Peru and the United States.

Opportunity was taken on that occasion to discuss with Dr. Barreda another matter, involving the provisions of the trade agreement, to which Your Excellency’s attention is invited. I refer to the communiqué of June 2659 issued by the National Council of Foreign Trade under which there was established as of July 1, a list of articles which may not be imported into Peru. On that list are several commodities, classified under Items 2886, 2961, 2962 and 2963 of the new import tariff, which are included in Schedule I of the trade agreement and accordingly are subject to the provisions of Article X specifically providing for exemption from prohibition or restriction of imports except under certain conditions and then subject to prior written notification and opportunity for consultation. My Government did not, of course, receive prior notification of the action taken by the Council nor was there extended an opportunity for previous consultation with Your Excellency’s Government on that subject.

The Embassy is informed that this matter was discussed during the recent visit to the United States of His Excellency the Minister for Foreign Affairs in the course of his interview with the Assistant Secretary of State, Mr. Willard Thorp. The Assistant Secretary was informed that the subject would be brought to the attention of Your Excellency.

My Government is fully aware of the circumstances and conditions giving rise to the above-mentioned action by the Council. In view of the provisions of the trade agreement, however, my Government considers that if any restriction must continue the establishment and administration of temporary quotas in accordance with Article III of the trade agreement is highly preferable to outright prohibition. I am therefore instructed to request Your Excellency’s assurances that the present prohibition, insofar as it applies to commodities of United [Page 1030] States origin specified in Schedule I of the trade agreement, will be of the shortest duration pending replacement by the quota system and establishment of the necessary administrative machinery.60

With assurances [etc.]

For the Ambassador:
Thomas S. Campen

Commercial Attaché
  1. Copies of this communication and the answer thereto were transmitted to the Department by the Ambassador in his despatch 2242, December 23, 1947, not printed.
  2. See supra.
  3. In his reply of October 20, 1947, the Minister of Finance provided the assurances requested.