Editorial Note
In 1950 the Department continued efforts to reach a basis for negotiating a settlement of Peru’s lend-lease debt. In a conversation held February 1, 1950, with Ambassador Fernando Berckemeyer and other Peruvian officials, James C. Lobenstine of the Office of North and West Coast Affairs said in part that because Peru was already making serial dollar payments on certain other obligations to the United States Government, the United States would agree to a payment period of up to 7 years. Payments could begin as late as 1953. However, the United States could not discuss any further reduction in the total amount due. (Memorandum of conversation by James C. Lobenstine, February 1, 1950, 723.56/2–150; memorandum by Francis T. Murphy, Chief of the Lend-Lease and Surplus Property Staff, to Sheldon T. Mills, Director of the Office of North and West Coast Affairs, February 1, 723.56/2–150) In a note of June 23, 1950, to the Peruvian Embassy, the Department stated in part that as a result of negotiations commenced in March 1948 it was awaiting receipt from the Embassy of a Peruvian settlement proposal. It considered Peru to owe $2,882,910.64 under the Peru–United States Lend-Lease Agreement of March 11, 1942, and another $87,831.36 in “contingent” obligations. (723.56/6–2350) A Departmental note of August 15, 1951, also to the Peruvian Embassy, indicated in part that no reply had been received to the note of June 23, 1950. (723.56/5–2451)