486. Editorial Note

On July 6, 1967, the Department instructed the Embassy to discuss the status of economic assistance with President Belaúnde, particularly in view of legislation before the Peruvian Congress to expropriate holdings of the International Petroleum Company. (Telegram 2229 to Lima; National Archives and Records Administration, RG 59, Central Files 1967–69, PET 6 PERU) In a meeting on July 10 Ambassador Jones recalled Belaúnde’s assurance to Walt Rostow in February 1966 that the IPC would not be “further impaired” during his administration. (Telegram 211 from Lima, July 12; ibid., DEF 19–8 US–PERU) Jones also warned of the “adverse effect this law would have, once promulgated, on US–Peruvian relations,” referring to the penalties set by the Hickenlooper amendment. (Telegram 190 from Lima, July 11, ibid., PET 6 PERU) Belaúnde replied that he needed more time to resolve the IPC case and pleaded for action “this week” on the program loan. After a heated exchange concerning Peruvian efforts to purchase French aircraft, Belaúnde complained “with strong words about local forces conspiring against him to defeat his program of government and force devaluation.” “I have seldom seen the President so distraught,” Jones observed. “It was a stormy session.” (Telegram 192 from Lima, July 11; ibid., DEF 19–8 US–PERU) Telegrams 190 and 192 from Lima were retyped and forwarded to President Johnson, with a note from Rostow on July 13. Marvin Watson recorded the President’s response: “Walt get this over to C[ovey] Oliver. Ask him to talk with T[ony] Solomon and Tom Mann about it. Oliver give the President a memo of recommendations.” (Johnson Library, National Security File, Country File, Peru, Vol. II, 6/65–9/66)