Editorial Note
According to a memorandum by William L. Krieg, Officer in Charge of North and West Coast Affairs, of a conversation held in Washington on November 27, 1950, Ambassador Berckemeyer informed Mr. Miller in part that the contract of the Klein Mission with the Peruvian Government would be renewed until July 1951 and that the Mission would be specially charged with studying the revision of customs and budget procedure in Peru. In addition, Mr. Klein’s Washington office was to advise the Peruvian Embassy on relations with the IBRD. (823.00A/11–2750)
The Department of State’s Policy Statement for Peru of March 22, 1951, includes this statement regarding the Klein Mission: “Industrial development has been hindered by the conflicting interests of the controlling conservative groups, especially by the opposition of some of the large agriculturists. The Military Junta commendably determined to assess present problems and future development possibilities. In August 1949, it contracted for the services of a non-governmental group of United States technicians headed by Dr. Julius Klein [Assistant Secretary of Commerce, 1929–1933]. The Klein Mission studied and made recommendations on a wide variety of subjects, including monetary policy, foreign trade and balance of payments problems, tax structure, budget, customs, and the government administration generally. It also devoted considerable time to the possibilities of economic development. A large majority of the Mission’s recommendations were in line with our policies and objectives, and fortunately the Peruvian Government has adopted many of the recommendations.”
In the Statement, the Department commented with reference to economic development that Peru had not received large credits from either the Export-Import Bank or the IBRD, partly because of the Peruvian record in the liquidation of financial obligations, perhaps also because of the lack of a consistent national economic development program. It concluded: “Economic development of Peru is more likely to be fostered by private capital investments, and our policy of encouraging the Peruvian Government to adopt policies favorable to such investments should be continued. The Klein Mission has been of considerable help to Peru in this field.” (611.23/3–2251)
An index of the Klein Mission’s reports to the Peruvian Government through February 1950, together with a list of those of the reports which had been forwarded by the Embassy in Peru to the Department, is included in despatch No. 375 from Lima, March 20, 1950, not printed. (823.10/3–2050)