723.5 MSP/1–1053: Telegram
The Counselor of Embassy in Peru (Gilmore) to the Department of State
240. Summary requested Depcirtel 722, January 7,1 follows. Full report will be pouched immediately following Ambassador Tittmann’s return approximately January 15.
Most important objective MSP Peru is preserve, strengthen Peru’s attitude cooperation with US. Technical assistance program associates US important activities bettering Peru standard living. These improvements increase peoples attitude democracy and lessen possibility their accepting communism. By thus contributing stability and pro-US orientation country, program helps assure continued production and sale to US raw materials vital defense effort. Basic objective military program is that Peru’s armed forces retain US orientation and be prepared contribute collective defense western hemisphere with specific units ready defend coastal sea communications and coordinate with US defense effort. Present courses action good in both technical military fields and Peru adheres 100 percent to commitments made.
Increasing worry re neighboring governments, especially Bolivia, which are more leftist, pro-Peron than Peru makes Peru increasingly security conscious. Present government sees potential threat its stability in possible spread leftist doctrines. As result, Peru turning even more to US as friend and natural political-economic ally. Has also approached Brazil re forming Brazilian-Peru axis strongly US oriented. Most factors present economic situation favorable. Internal financial stability satisfactory with good outlook. Government expenses 1952 exceeded income and being financed thru borrowing which not believed constitute factor financial weakness nor threat internal price levels. Balance international payments satisfactory in view continued stability currency. 1953 balance may be worse due lower prices export products, but favorable investment climate expected attract considerable foreign capital.
Both military and technical aid have furthered internal political stability. Military aid helping training, morale armed forces, especially air force. Technical assistance program substantially contributing to positive accomplishments regime fields agriculture, health, education and they create favorable attitude toward government.
Activation planned forces progressing, but not so rapidly as contemplated US planning. Air force and navy now working on system mutual cooperation coastal defense for first time. Deficiencies exist trained [Page 1506] manpower and facilities utilize military aid and probably could not utilize aid faster than now receiving.
Major economic development trends include increasing investment foreign capital metals and petroleum due liberal laws and exchange policies. Continued irrigation works and pioneer development continuing.
Economic and social effects Point IV program include substantial improvement agricultural production, health and education conditions. They have contributed to increased national production and individual income, which results increased social consciousness and incorporation more people national life.
Attitude government and people toward Point IV programs very good. Good attitude part government toward military assistance program but people have little knowledge.
Peru extends full cooperation both programs. Self help evidenced by fact Peru increasingly contributes funds Point IV programs over and above contract obligations.
- The referenced telegram requested reports concerning the status of mutual security programs (700.5 MSP/1–753).↩