528. Telegram From the Director of the International Cooperation Administration (Hollister) to the Embassy in Peru 1

Icato 229. Joint State/USDA/ICA. Reference—Embtel 622.2

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You are authorized to offer GOP under Title II, PL 480 2000 long tons nfds milk and up to 45,000 long tons grain of which 25000 tons tentatively considered to be wheat and/or wheat flour, 10,000 yellow corn and 10,000 barley, on condition terms para 4 below and that GOP (1) agrees to conclude current negotiations Title I PL 480 approximately 40,000 tons wheat; (Title II shipments per para 2 below need not be delayed pending conclusion negotiations); (2) purchase usual marketings wheat under Title I program; (3) agree to take in addition a minimum of 90,000 tons grain tentatively considered to be wheat 50,000; corn 20,000; barley 20,000 under Title I on terms to be agreed upon. FYI 90,000 tons being considered as minimum required meet drought emergency. Advise if this not correct. End FYI.
Upon receipt GOP acceptance terms expressed para 1, ICA/W will arrange promptly for earliest possible shipment Title II grain. Shipping likely be tight and will require promptest action if first shipments to arrive Peruvian ports June.
Assuming GOP acceptance terms para 1 desire advice soonest re intended sales price Title II commodities and whether commodity breakdown proposed both Title I and II satisfactory. Also indicate whether 90,000 tons additional to proposed 40,000 tons considered adequate under Title I.
Transfer Authorizations will control transfer of Title II commodities and will include such requirements as:
GOP responsible for all charges incident to the distribution of the commodity authorized herein including demurrage, port, offloading and inland transportation costs.
Suitable bag marking and publicity so that recipients will know program made possible by gift from people of US.
Commodity required be used for drought relief purposes, distributed without discrimination free or in payment work relief projects approved by USOM/Lima (latter should consult ICA/W before approving types of projects) or may be sold for soles to the extent that such soles are made available through approved work relief to drought victims for use by them to purchase food.
US govt to be provided with complete info re progress program and use of assistance received and to be given opportunity observe and review operations.
Re Embtel 612 cable on press release follows.3
Ocean freight Title II program to be financed by Peru. At least fifty percent of liner tonnage and at least fifty percent tramp [Page 1061] tonnage must be in US flag vessels, unless waived by ICA/W basis nonavailability.
Neal concurs.
  1. Source: Department of State, Central Files, 411.2341/4–2656. Confidential; Niact.
  2. Dated April 26, telegram 622 reported a conversation the Ambassador had with the Foreign Minister on April 26 concerning the drought relief program. (Ibid.)
  3. Dated April 21, telegram 612 transmitted the text of a suggested press release to be distributed following U.S. approval of the drought aid program. (Ibid. 411.2341/4–2156)