823.2553/1–1650: Telegram
The Ambassador in Peru (Tittmann) to the Secretary of State
28. Despatch 75 January 16.2 Petroleum Attaché3 evaluates situation as follows: (1) Pending oil legislation appears at point where evidence of interest by US Government may be sufficient obtain decree law.
(2) Private companies have done all they can and it would be unfortunate if their interest were allowed to wane.
(3) If project introduced in future Congress as mere draft legislation it may suffer long delays and changes unfavorable to entrance of foreign capital.
(4) If present draft is issued as decree law now reasonably certain that companies would initiate work preparatory to exploration drilling and actually commence such drilling after ratification by Congress.
(5) In view of great strategic importance to US of Peruvian petroleum development Petroleum Attaché strongly and urgently recommends I approach government.
Although I can make no predictions as to success of approach since question so highly political I am prepared to see Admiral Saldias4 or President5 or both to point out benefits to Peru on balance of payments necessity new reserves Peru’s own interest and common hemisphere defense advantages accruing from present issuance of decree law.
[Page 983]Department’s guidance requested soonest.
- In this despatch Mr. Levangie had reported in part on his interview held January 11 with Lt. Col. José del Carmen Cabreho, Minister of Development and Public Works. Mr. Levangie had made representations to Minister Cabreho along the lines of points (3) and (4) of telegram 28; additionally, he had pointed out in part that Congress (when convened) would probably ratify a previously promulgated decree-law without serious debate, in contrast to its anticipated performance in the situation outlined in point (3). However, if it were certain that the legislation was to be submitted to Congress, interested oil companies should be so informed without delay. At the request of Colonel Cabreho, Mr. Levangie left with him on January 12 an unsigned memorandum covering the points made verbally the day before. (823.2553/1–1650)↩
- George W. Levangie was Petroleum Attaché of the Embassies in Peru, Chile, Bolivia, and Ecuador.↩
- Rear Adm. Roque A. Saldias, Minister of Marine.↩
- Gen. Manuel A. Odría, President of the Military Board of Government.↩