538. Telegram From the Ambassador in Peru (Achilles) to the Department of State1
203. Returned this morning,2 had editor of La Prensa for lunch, held press conference and have talked with Gallo Porras and officials of Mining Association. Took following line at press conference:
Lead and zinc: Had found in Washington not merely pressure to protect US industry but sympathy and growing understanding of problems in Peru and other countries. Congressional action now highly improbable but similar administrative action in next few months very probable. Difference was that problem would be considered in relatively calm atmosphere with ample time for consideration of Peruvian and other foreign problems. Was sure any considerations advanced by Peruvian Government or industry would receive careful attention. To insure Peruvian problems fully and accurately understood in Washington, had arranged for minerals expert Larsen to visit here early in September and for detail here of additional minerals expert for next few months.
Ships: Administrations shipping proposal, like many other of administrations proposal, has not been passed. However price of ships declining rapidly on open market and price differential now small. Any bill passed by Congress would contain cabotage limitation, whereas purchases upon market not subject any restriction. US glad to assist Peru in purchasing ships on open market.
Fishing: Department had investigated press reports alleging illegal US fishing operations off Peruvian coast and had not found substantiation. US always glad to investigate such reports despite differences of opinion re jurisdiction.
At luncheon, editor La Prensa volunteered paper’s campaign on lead and zinc had gone too far and he would now try redress balance.
[Page 1081]Gallo Porras was obstensibly friendly and complained only that he had refrained from purchases on open market for six months on basis assurances authorization for purchases from reserve fleet would be approved. In response to direct question whether he was still interested in legislation next session (Deptel 121),3 he said corporation would now have to seek ships through other channels. I reiterated US desire to assist him in doing so.
With officials of Mining Association, I took same line as with press but putting greater emphasis on fact administration would have to take some action they would not like and reasons therefor. They showed real understanding, relief that action to be taken would be determined by administration rather than Congress and appreciation for Department’s action in sending Larsen and other minerals experts here to insure technically competent understanding of situation in Peru.