433. Memorandum of Conversation1

SecDel/MC/1

SECRETARY’S DELEGATION TO THE EIGHTEENTH SESSION OF THE UNITED NATIONS GENERAL ASSEMBLY

New York, September 1963

PARTICIPANTS

  • U.S.
    • Secretary Rusk
    • Jack D. Neal
  • Foreign
    • Foreign Minister Dr. Fernando Schwalb Lopez Aldana (Peru)
    • Dr. Victor Andres Belaunde, Chairman of Peruvian Delegation

SUBJECT

  • Peruvian FonMin and Peruvian Chairman of Del Visit with Secretary Rusk
[Page 888]

Foreign Minister Schwalb, accompanied by Dr. Belaunde, called on Secretary Rusk this morning.

The Foreign Minister stated the new Government of Peru was attempting to institute agrarian, corporation and tax reforms. To accomplish these will necessitate the cooperation of the United States. Dr. Schwalb pointed out that the present Peruvian system is obsolete and that it must be changed. He recognizes any alteration will require a fight against the forces of the oligarchy but that President Belaunde Terry, who is an honest, young and strong leader, is determined that the changes must be made—and in juridical and peaceful ways. The Foreign Minister stated his Government will need help from the Alliance for Progress and other United States institutions, particularly in the form of credit and technical assistance.

Secretary Rusk stated we are serious about our faith in the Alliance for Progress and that we can be counted on for assistance. He informed the Foreign Minister we are aware that it is difficult to bring about reforms and changes, but that we are encouraged by Peru’s beginning and determination. In reply to the Secretary’s question, Dr. Schwalb stated the Government is trying to educate the people to this necessary change by popular appeal and through the Catholic Church which has shown support for the Government’s program.

The Foreign Minister told Secretary Rusk that President Belaunde’s party has no majority in Congress, and he admitted to the Secretary that the other political parties of Peru have refused to accept cabinet posts in the Belaunde Government. The Secretary reminded him that the development of Peru is for the benefit of all and that possibly the President could get other party help and cooperation in the Alliance for Progress Program.

The Secretary inquired about the activities of private enterprise—not necessarily foreign capital—but particularly what Peruvian private enterprise was doing.

The Foreign Minister stated his Government is attempting to stimulate the investment of private Peruvian capital and had invited it to participate. However, he added, the money of Peru is in the hands of a few—the oligarchy—and they are the most difficult opponents of the Government to bring around.

As regards the Peruvian agrarian program, the Secretary sounded a note of caution when he called the Foreign Minister’s attention to the failure of the Mexican agrarian reform, when large producing farms were divided into such small units they were not economically productive to the Mexican economy and as a result Mexico became an importing country instead of an exporting nation in several basic food crops.

The Minister stated it was not the intention of the Belaunde program to reduce farm production.

[Page 889]

Secretary Rusk told the Foreign Minister Peru had successfully passed through a difficult and important eighteen months. It should capitalize on this opportunity to become one of the leaders in the Hemisphere. He pointed out that investments (both AID and private) are attracted to a given country when it is known these investments will produce results. Peru now has an opportunity to establish a favorable climate and emerge as an example in the Hemisphere.

Both the Foreign Minister and Dr. Belaunde agreed and stated Peru had received favorable comments from other Latin American nations regarding its handling of the recent election.

The Secretary pointed out the favorable public accord which Peru enjoys in the United States. This good will has weathered the past eighteen months without a reduction in popular acclaim. He feels the present Government should do everything possible to maintain this positive position.

The Secretary suggested the Peruvian Government might consider establishing fellowships—at least six—which would encourage college students from the United States to attend some of the better known universities in Peru. He stated the fellowships necessarily would not call for heavy payments to the students, but should cover tuition and modest per diem. Too, he stated the Peruvian Government might consider furnishing some of its literature and publications to institutions in the United States. He feels these steps would have a psychological impact upon certain important segments of this country.

Both the Foreign Minister and Dr. Belaunde were impressed with the idea.

In summing up his thoughts on Peru, the Secretary informed the gentlemen that Peru has a fine opportunity to establish a strong international reputation by mobilizing its own domestic capital in its program of development. He stated it is not necessary to wait 100 years to complete the essential reforms; it can and should be done sooner.

Secretary Rusk turned to the Cuban situation and informed the Foreign Minister of the Russian “move out,” but warned him that many were still there. He pinpointed the United States position by informing the Peruvians we cannot accept the present Cuban-USSR relationship and cannot accept the interference of Castro in the Hemisphere.

  1. Source: Department of State, Central Files, POL PERU-US. Confidential. Drafted by Neal of USUN and approved in S on September 24. The meeting was held at the U.S. Mission to the United Nations in New York.