Foreign Relations of the United States, 1958–1960, Volume V, Microfiche Supplement, American Republics

PE–15. Letter from President Eisenhower to President Prado¹

Newport, September 21, 1958

Dear Mr. President:

Once again I consider it advisable to communicate with you directly on a matter of mutual concern. Following months of painstaking effort to find a solution to the problem of the world oversupply of lead and zinc, I have felt obliged to take action now to relieve the genuinely distressed condition of this industry in the United States by establishing import quotas.²

Contrary to my hopes and expectations, the minerals stabilization plan, which had been proposed as an alternative to accepting the recommendations of the United States Tariff Commission,³ although approved by the Senate, was defeated in the House of Representatives by a narrow margin.⁴ In this connection you will recall that the Commission, responding to appeals by United States producers who had been forced to curtail production by about 25%, recommended some months ago that I not only impose quotas but increase the duties on lead and zinc as well.

In an effort to find some other solution, the Department of State, in cooperation with your distinguished Ambassador in Washington, endeavored to obtain agreement of other major exporters to a temporary, voluntary reduction of exports. It was hoped that such an agreement would allow time to study the causes of imbalance between world supply and demand for lead and zinc and to consider the best means for dealing with this problem. While a majority of the interested nations were found willing to undertake a study of the longer range problem, these discussions, as well as those which followed in London under the auspices of the United Nations,⁵ revealed that a temporary arrangement to cope with the existing emergency would not immediately be feasible.

The action which I have thus taken will obviously have the effect of reducing Peruvian exports of lead and zinc to the United States market. It does not, however, alter the existing tariff structure and will, I am hopeful, prevent a further decline in the prices which Peruvian exporters obtain for these commodities in this market. Moreover, these import quotas, which are compatible with international discussions regarding export controls, are subject to review whenever circumstances may warrant, including possible resolution of the current problem of imbalance through multilateral action. The Department of State has therefore been instructed by me to maintain its efforts to this end in cooperation with other governments. I am confident that Peru will continue to take a most constructive part in this endeavor.

I wish again to affirm the high regard I have for your Excellency and for the Peruvian people.⁶

Sincerely,

Dwight D. Eisenhower

1. Source: Eisenhower Library, Staff Secretary Records, “Peru.” Drafted by Ernest V. Siracusa, September 20; approved by President Eisenhower by telephone, September 21; and transmitted by telegram 125 to Lima, September 21.
2. By proclamation 3257 of September 22, President Eisenhower limited imports of lead and zinc to 80 percent of average annual imports during the five years, 1953–1957; for text, see 23 Fed. Reg. 7475.
3. On April 24, 1958, the U.S. Tariff Commission reported its unanimous finding of injury to the domestic lead and zinc industry from foreign imports. Three Commissioners proposed restoration of the tariffs in the Tariff Act of 1930, [illegible in the original] to remedy the injury. The other three Commissioners proposed a larger tariff increase and quantitative limits on imports. For further information, see the Department of State Bulletin, October 13, 1958, p. 579.
4. S. 4036, 85th Cong., a bill providing for subsidy of the import-stricken mining industry, passed the Senate, July 11, but was rejected by the House of Representatives on August 21.
5. Representatives of 32 countries and six observers met in London in September 1958 to consider the current and future condition of lead and zinc production and consumption. A Lead and Zinc Committee was established to consider the views of participating governments and report to a subsequent meeting. Relevant documentation is in Department of State files 340.54 and 411.006.
6. In telegram 176 from Lima, September 24, Ambassador Achilles quoted President Prado’s reply, urging reconsideration or suspension of the import quotas (823.2545/9–2258).