823.24/12–348
The Secretary of State to the Embassy in Peru
No. 297
The Secretary of State transmits herewith for the confidential information and records of the Embassy a copy of the Department’s note [Page 735] to the Embassy of Peru in Washington1 advising the Government of Peru that the statement of the lend-lease account reported in the Department’s note of June 25, 1948, to the Peruvian Embassy2 (refer to instruction No. 166 of June 25, 19481) may now be considered complete and final.
For the Embassy’s further information there are contingent accounts reported by the Treasury Department as outstanding on October 31, 1948, as follows:
Lend-Lease Pipeline Account
| Estimated deliveries $37,000 on which repayment responsibility is | $14,947.41 | ||
| Cash Reimbursable Accounts | |||
| Transfer of Personnel (Army) | $2,144.84 | ||
| Administration & Incidental | 43.50 | –Cr. | |
| Military Air Transport Service | 10,509.43 | ||
| Special Billing | 57.19 | ||
| Aeronautical Commission | 44,489.62 | ||
| Military " | 52,902.43 | ||
| Naval " | 3,720.39 | –Cr. | |
| Total due at 100% of procurement cost | 106,339.62 | ||
| $121,287.03 |
In addition, lend-lease vessels, leased under Charter Party Agreements and valued at $1,381,000, have been offered to Peru for $68,000, payable in United States dollars. Early acceptance and payment will insure prompt transfer of title to these vessels to Peru. Non-acceptance would require their return to the United States at the expense of the Peruvian Government.
It is the intention of the Department to conduct all negotiations for a settlement of these lend-lease accounts in Washington. However, the Embassy may find that various Peruvian officials will wish to consult on these matters, and the Embassy, in its discretion, may discuss the substance of this instruction. It, of course, will be understood that any proposal for any alternative method of payment must originate with the debtor government and be submitted in Washington and that, pending the receipt and study of such a proposal, no prior commitment of any kind may be made or implied to the Peruvian Government.
Information concerning further developments will be sent to the [Page 736] Embassy which, on its part, is requested promptly to inform the Department of the result of any informal action it may take for the purpose of cooperation in reaching a final basis for the settlement of these accounts and to submit to the Department any comments it may wish.