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

PE–28. Despatch from the Ambassador in Peru (Achilles) to the Department of State¹

No. 97

Lima, August 26, 1959

[Extract]

SUBJECT

• Communism in Peru

VIII. RECOMMENDATIONS

1. With the Beltran Cabinet² we have the best opportunity we have had in the last three years to help the Peruvian Government and to encourage measures that will improve the economic, social and political situation in Peru. The most effective weapon against communism in Peru is the adoption of such measures. We should therefore do everything possible to help the Beltran Cabinet succeed. This means primarily consistent encouragement of the Peruvian Government to develop an effective economic and social program and prompt favorable action on our part on soundly conceived development projects which require foreign financing.

2. Some way must be found to give the Indians and mestizos a stake in the free enterprise system. The Indians are more contented when they have their own land—the Vicar General of the Catholic Church in Puno asserts that the higher incidence of land ownership among the Indians in Puno as opposed to that in Arequipa and Cuzco is one of the primary reasons communism is not making as much headway in Puno. Such measures as agrarian reform, housing, and highway construction to open new areas as proposed by the Beltran Cabinet, will help considerably. These and other programs that will demonstrate that the free enterprise system will assure a higher standard of living and a better distribution of the wealth will do more than anything else to make communism less attractive as a solution. We should encourage such programs and identify ourselves with them. We should encourage not only Government officials to adopt such measures but also opinion leaders whenever the opportunity presents itself.

3. The cooperative agriculture program (SCIPA) should be strengthened, especially its program of supervised credit. The credit program of the Maryknoll Fathers in Puno and the SCIPA supervised agricultural credit program in general have been successful and opened up an avenue for improvement of the standard of living which as a practical matter has not existed for the lower classes. We should not make the mistake of expanding too rapidly and possibly discrediting the program, but we should broaden this program as rapidly as is consistent with sound management. Other ICA programs are making a sound and welcome contribution, but increased and better production is needed more than anything else in Peru not only to raise the standard of living but to combat communist activities.

4. Our information effort should be concentrated primarily on identifying the United States with the aspirations of Peru and creating a climate for economic measures and reforms that will achieve these aspirations. This can probably best be done by U.S. officials encouraging the Government to adopt such measures and, once proposed, helping through our information program to develop a favorable atmosphere for them. Some of the unpopularity of the Prado Government during its first three years has rubbed off on the United States because of our support of his administration. Our reputation is even more at stake with Pedro Beltran as Prime Minister because he and his announced policy and his actions are closely identified with the United States. This will be a distinct advantage to us if he succeeds and we should help build a climate to help him succeed. At the same time we do the constructive job of demonstrating that the programs and policies we espouse will offer Peru a higher standard of living we must effectively refute the communists. In the Lima area we can probably do this best by assisting media to do the job for us. In southern Peru, however, the job is much harder but this is where the communist danger is greatest and this is where we should concentrate our effort. We can probably make a greater impact on public opinion if we concentrate our leader grant program on people who help form public opinion on a daily basis, i. e., Congressmen, newspapermen, labor leaders, etc.

5. [text not declassified]

6. We should intensify our efforts in the universities along the lines we are now proceeding. The close working relationship between USOM and the medical faculty at San Marcos University has paid off in considerable good will toward the United States. The financial support we have given to this Faculty including laboratory and technical equipment has helped to make it one of the most stable faculties in the University. The exchange of students between the University of Indiana and San Marcos has also paid off. We should encourage more such exchanges, and in addition encourage any interest arising on the path of mature, responsible American students and scholars to study at Peruvian universities. Such a program would involve risks in that all participants might not be effective representatives of the U.S. The advantages to be gained in such exchanges, however, would greatly outweigh the disadvantages. The relatively few students from the U.S. in Peru have handled themselves extremely well. The “hotbeds” of communism in the universities are usually the economics and law faculties. We should concentrate our exchange professor program in these two faculties in an effort to propagate our economic philosophy and our legal concept on the balance between duties and responsibilities of the citizens and the State. Our effort should be more in the constitutional law field than any other.

7. The real battleground in the student field is not, however, in the universities but in secondary education. It is only a small percentage of Peruvians who ever get to the universities. Our efforts in secondary education should be directed at the student body in teacher training schools in Peru. We cannot hope to influence directly the large mass of Peruvian secondary students but we can influence them through their teachers. The more secondary school students who can be assisted to spend at least a year at school in the U.S. the better.

8. The Church in Peru should be encouraged to take a more active role in improving social conditions in the country. The Church should support a more equitable distribution of wealth. It should help in a housing program by sponsoring community action on this subject. In general we should seek to have the Church throughout Peru carry out a program along the lines now being pursued by the Maryknoll Fathers in Puno. At the same time we should encourage the Church to take a vigorous stand against communism.

9. We should encourage the military in Peru to support a positive program to improve the standard of living of Peruvians, including the necessary social and economic reforms. We should support the general desire of the Peruvian Government and the military to have the military take a more active role in the economic development of the country and agree to the use of MAP furnished equipment for this purpose provided this can be done in keeping with commitments under bilateral military arrangements. We should lend our support to the announced desire of the military to indoctrinate recruits in civism and against communism and to provide them agricultural, mechanical and trade training. Within available resources, we should provide material and technical resources toward that end. The military should be encouraged to carry out its anti-communist policy with more vigor.

10. We should keep in mind that anti-communist legislation is required in Peru and bring it to the attention of the Government at appropriate opportunities, but until the Beltran Cabinet has made an effective start on its program and has solidified its position better, we should not press on this point. When this subject is discussed with Government officials we should seek legislation in terms of strengthening the Penal Code, and not a separate anti-communist law which would be an open target for the communists and easily repealed.

11. We should encourage the Government to eliminate communists from the Government. Wherever possible we should identify such persons, but this should always be done on the basis that the Peruvian Government itself must investigate to determine the facts.

12. We should seek termination of Government support, in whatever form, to communist-led labor unions. (It is not sound practice in any case for the Government to be subsidizing labor unions, but it is especially wrong when this involves communist-led unions.)

For the Ambassador:

Robert M. Sayre
Second Secretary of Embassy

1. Source: Department of State, Central Files, 723.00/8–2659. Confidential. Extract. Drafted by Robert M. Sayre, Second Secretary, Embassy in Peru. Omitted are 46 pages of this report.
2. The Cabinet of Pedro G. Beltrán Espantoso, Prime Minister and Minister of Finance and Commerce, took the oath of office July 20.