823.61311/6–2447
Memorandum by Mr. Edgar L. McGinnis of the Division of North and West Coast Affairs70
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On Thursday, June 19, I arranged for a meeting in Mr. Stillwell’s71 office for the purpose of affording Ambassador Cooper an opportunity [Page 1037] of expressing his views regarding the urgent wheat requirements of Peru. The meeting was attended by Mr. Epsy and myself—NWC, Messrs. Highby and Linville—IR, Mr. Craig—UE, and Mr. Andrews of the Department of Agriculture. Ambassador Cooper explained that he was anxious to present the overall situation in Peru as a background for its present difficult situation with respect to wheat. He stated that he had received the utmost cooperation from the present Administration in Peru and that it was extremely friendly to the United States. He stated that he was repeatedly called upon by the Department to request favors of Peru and had not yet been refused on any major issue. He specifically cited Peru’s cooperation with us respecting an air transport agreement and her withdrawal … of an aviation mission sent to Argentina for the specific purpose of negotiating an air transport agreement. He cited other evidences of cooperation on the part of Peru including her military cooperation during the war. Ambassador Cooper asserted that Peru was a bulwark against communist infiltration in Latin America and that Peru’s stand against communism was undoubtedly as strong as that of any country in South America.
Ambassador Cooper then referred to Peru’s rich resources in petroleum, non-ferrous metals, sugar, cotton and other commodities. He spoke of the strenuous efforts of Argentina to conclude with Peru … arrangements with respect to petroleum, banking and other economic matters. He said that Peru had thus far resisted Argentine efforts … but that the latter had two things which Peru required, namely wheat and money. Ambassador Cooper said that through the withholding or reduction of wheat shipments to Peru, Argentina had already brought considerable pressure to bear upon Peru, and that they would undoubtedly continue to do so until they obtained the desired concessions from Peru.
Ambassador Cooper then stated that if this Government could promise Peru to furnish her wheat requirements from the U.S., this … severe pressure from Argentina could be obviated. He stated that he strongly felt the best interests of the U.S. required that we furnish Peru with a long-term commitment to supply its needs for wheat and that, in his opinion, wheat could well be diverted from less cooperative foreign countries for this purpose.
. . . . Mr. Linville stated that to make such a commitment to Peru would involve a change in basic policy in that this Government had never acceded to the demands of other countries for long-term commitments on wheat. He said that the world wheat situation was so tight that allocations were made only on a monthly basis and that this policy would have to be adhered to [to] enable the most equitable distribution of wheat supply. He cited the pressing demands of Europe and other areas. Mr. Linville said that Argentina [Page 1038] was the historical supplier of wheat to Peru and that it was the policy of the IEFC to insist that those countries which ordinarily obtained their wheat supplies from Argentina should continue to do so in order to relieve the U.S. of the enormous obligation of supplying the major portion of the world wheat deficit. Mr. Linville also stated that, if a commitment were made to Peru to furnish wheat over an extended period, that country would relax its efforts to obtain wheat from Argentina since the price of Argentine wheat was greatly in excess of that of American grain. He asserted, however, that IR as well as IEFC would be willing to examine sympathetically the emergency wheat requirements of Peru, and in the event that Peru could not obtain her requirements from Argentina after exhausting all possibilities, the IEFC would be disposed to furnish emergency supplies. Mr. Linville said that during June, July and August this Government was committed to furnish 34,000 tons of wheat, or flour in wheat equivalent, to Peru, and that this amount formed a large part of Peru’s annual import requirements (fixed by IEFC at 100,000 tons). Mr. Linville concluded by saying that since Peru was represented in the IEFC, her requests for wheat allocations should be made in the first instance through that body with the necessary supporting data.
Ambassador Cooper stated that he felt other countries … should be required to meet their wheat requirements by imports from Argentina and that Peru should be given assurances by this country that her needs would be filled here. This, he said, would relieve Peru of the … pressure exerted by Argentina and would not reduce the total availability of grain to needy areas.
Since the guarantee to Peru of wheat shipments from the U. S. over an extended period would entail a modification of our basic food policy, it appears that this matter must be resolved at high levels in the Department.