Peru
576. Briefing Memorandum Prepared in the Department of State for the President’s Assistant for National Security Affairs (Kissinger)
The Department reported that Peru’s expropriation of a portion of the International Petroleum Company (IPC) would require the President to suspend assistance and the sugar quota unless Peru adequately compensated the company. The Department predicted that these sanctions would precipitate widespread criticism of the United States throughout Latin America.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 794, Country Files, Latin America, Peru, 21 January–31 March 1969, Vol. I, IPC Hickenlooper Amendment. Confidential. The note at the end of the memorandum, added by the NSC staff, was based on a January 28 memorandum from Rogers to the President; National Archives, RG 59, S/S Presidential Evening Reading, 1964–7/73: Lot 74 D 164, Box 410. Kissinger informed the President in a January 29 covering memorandum that the NSC IG for Inter-American Affairs was working up plans if U.S.-Peruvian relations deteriorated.
577. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon
Kissinger wrote President Nixon about a possible meeting with Ambassador Jones.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 794, Country Files, Latin America, Peru, 21 January–31 March 1969, Vol. 1, IPC Hickenlooper Amendment. Confidential. Nixon checked the option “Prefer you [Kissinger] see him” and wrote “and bring him in to say hello at end of conversation.” In a February 5 memorandum to Kissinger, Haig wrote: “I have little doubt that this is going to be one of President Nixon’s first major crises.” (Ibid.)
578. National Security Study Memorandum 18
President Nixon requested a review of U.S. policy towards Peru, with emphasis given to the options available concerning the current situation and the IPC expropriation.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 365, NSSMs, NSSMs 1–42. Secret. A copy was sent to the Chairman of the JCS. The study of the NSC IG Study for Latin America, “U.S. Relations With Peru,” March 7, 1969, is published as Document 581.
579. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon
Kissinger informed President Nixon that he would explore with Ambassador Jones the advantages and disadvantages of sending a presidential emissary to Peru. In addition, Kissinger reviewed recent incidents of Peruvian harassment of U.S. fishing vessels and concluded that the incidents were not necessarily related to the IPC issue.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 794, Country Files, Latin America, Peru, 21 January–31 March 1969, Vol. I, IPC Hickenlooper Amendment. Confidential. No other substantive record of the meeting has been found.
580. Special National Intelligence Estimate 97–69
The report predicted that the Velasco regime would almost certainly not meet the requirements of U.S. law or compensation of the IPC. Therefore, the crisis with Peru over the IPC would probably be significant and U.S.-Latin American relations could deteriorate.
Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–34, Review Group Peru, 3/13/69. Secret; Controlled Dissem. A note on the cover page reads: “This estimate was approved by the United States Intelligence Board on 6 March 1969. The printed copies will be disseminated in a few days.” Evidence that the Review Group meeting was held has not been found.
581. Study Memorandum Prepared by the National Security Council Interdepartmental Group for Inter-American Affairs
The NSC–IG/ARA summarized U.S.–Peruvian relations, outlined U.S. objectives over the next 6 months and potential policy options that would become available in the following month, and examined possible case scenarios in which those options might be employed.
Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–135, NSSM Files, NSSM 18. Secret.
582. Memorandum From Director of Central Intelligence Helms to the President’s Assistant for National Security Affairs (Kissinger)
Helms responded to allegations made in investigations by Goodwin and Mankiewisz
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 794, Country Files, Latin America, Peru, 21 January–31 March 1969, Vol. I, IPC Hickenlooper Amendment. Secret. In an attached March 12 note to Kissinger, Helms wrote, “I feel that you should be informed of this matter. I trust the memorandum is self-explanatory.”
583. Telegram 2044 From the Embassy in Peru to the Department of State
Irwin informed the Department of State of the Peruvian system of permits and licenses for non-Peruvian ships. Irwin stated that Peru’s policy did not isolate it from the international community.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 794, Country Files, Latin America, Peru, 21 January–31 March 1969, Vol. I, IPC Hickenlooper Amendment. Confidential; Limdis. Irwin was sent to Peru on March 14 as a special emissary from the President. Additional telegrams, Irwin No. 2, dated March 14; Irwin No. 7, dated March 19; Irwin No. 13, dated March 22; and Irwin No. 15, March 25, are ibid. The other messages from Irwin to the Department have not been found.
584. Message From William Pawley to President Nixon
President Nixon’s secretary Rosemary Woods conveyed a message from William Pawley that Balaguer stated that it would be a mistake on the part of the United States to allow Peru or other countries to expropriate U.S. property without reprisal.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 794, Country Files, Latin America, Peru, 21 January–31 March 1969, Vol. I, IPC Hickenlooper Amendment. No classification marking. Next to the sixth paragraph, which starts “Balaguer says it would be”, Nixon wrote in the left-hand margin: “H.K. Note—This is a very good reason to be hard as hell on Peru next time—.” Woods sent the message to Kissinger at the President’s request.
585. Study Prepared by the NSC Interdepartmental Group for Inter-American Affairs
The NSC–IG/ARA study concluded that the United States should not enact tough policies toward Peru, but take a softer approach. To take a more “hard-line” tactic risked creating an anti-U.S. nationalist sentiment in Peru; whereas if the United States took a softer line, the sanctions would be less likely to deter future potential expropriations in other nations.
Source: Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–135, NSSM Files, NSSM 18. Secret. The study is entitled “The Peruvian Problem.” According to an introductory note, the study supplements the March 7 NCS–IG/ARA study, published as Document 581.
586. Draft Memorandum From the NSC Interdepartmental Group for Inter-American Affairs to President Nixon
In this 5 page memorandum, the NSC Interdepartmental Group for Inter-American Affairs (NSC–IG/ARA) summarized U.S,-Peruvian relations as the Hickenlooper sanction deadline approached. It also discussed policy options for the United States.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 794, Country Files, Latin America, Peru, 21 January–31 March 1969, Vol. 1, IPC Hickenlooper Amendment. Secret. Vaky sent the memorandum to Kissinger on March 28.
587. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon
Kissinger outlined policy options concerning the International Petroleum Company (IPC) case and recommended that President Nixon decide whether to employ a hard- or soft-line approach with Peru following the April 9 negotiations and authorize Kissinger to tell the Department of State that, in the negotiations, there must be sufficient reason to believe that the IPC would receive compensation in excess of the debt claimed against the company.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 794, Country Files, Latin America, Peru, 21 January–31 March 1969, Vol. I, IPC Hickenlooper Amendment. Secret. Sent for action. Neither recommendation was checked. A draft version of Tab A is published as Document 586. The summary of Tab B, “The Peruvian Problem,” is published as Document 585. The conclusion to Tab C is published as Document 580.
588. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon
After reviewing Irwin’s discussions, Kissinger concluded that the administration should defer application of Hickenlooper sanctions on Peru. In addition, he advocated that the United States continue to negotiate while maintaining other forms of pressure on the nation.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 795, Country Files, Latin America, Peru–IPC–Hickenlooper Amendment, April 1, 1969. Secret; Sensitive. Sent for action. There is no indication of approval or disapproval of either recommendation. Tab A, Kissinger’s March 29 memorandum, is published as Document 587. Attached but not published is Tab B, “Administrative Process in the IPC Case.” In an April 5 telephone conversation with Kissinger, Nixon agreed to the recommendations. See Document 589.
589. Transcript of Telephone Conversation Between President Nixon and the President’s Assistant for National Security Affairs (Kissinger)
President Nixon and President’s Assistant for National Security Affairs Kissinger discussed the implications of applying sanctions under the Hickenlooper Amendment.
Source: Library of Congress, Manuscript Division, Kissinger Papers, Box 369, Telephone Conversations, Chronological File. No classification marking. President Nixon was in Key Biscayne, Florida.
590. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon
After reviewing the opinions on the Inter-American Development Bank (IDB) loan to Peru put forth by the Departments of State and Treasury, Kissinger recommended President Nixon approve the loan.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 792, Country Files, Latin America, Peru, Vol. I, Through June 1970. Confidential. Sent for action. Nixon approved the recommendation. On April 11, Kissinger sent a memorandum to Rogers and Kennedy informing them of Nixon’s decision. (Ibid.)
591. Memorandum Prepared in the Central Intelligence Agency
This memorandum reviewed the recent U.S. pressure on the Government of Peru and different approaches to the conflict over the International Petroleum Company (IPC) expropriation.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 794, Country Files, Latin America, Peru, IPC (DAD). Secret.
592. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon
Kissinger requested that Nixon authorize the CIA to explore whether a large consortium could buy out IPC assets.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 794, Country Files, Latin America, Peru, IPC (DAD [Donald A. Dennis]). Secret. Sent for action. Nixon approved the recommendation. Helms’s study is published as Document 591. There is no evidence that the US Government explored the option of a cash payment to President Velasco. Although IPC never received direct compensation from the Peruvian Government, in early 1974 it agreed to give lump-sum payments to the U.S. Government with subsequent distribution to various companies who had lost assets through expropriation. For further information, see Shane Hunt, “Direct Foreign Investment in Peru: New Rules for an Old Game,” in Abraham F. Lowenthal, ed., The Peruvian Experiment—Continuity and Change under Military Rule, pp. 302–349.
593. National Security Decision Memorandum 11
Kissinger transmitted President Nixon’s decision to defer application of the Hickenlooper Amendment with respect to Peru. Nixon directed preparation of a campaign to generate pro-United States support in the region, and to increase pressure on Peru to settle the IPC dispute.
Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–209, NSDM 11. Secret. Copies were sent to the Secretaries of Agriculture and Commerce.
594. National Security Study Memorandum 42
Kissinger transmitted President Nixon’s directive to the NSC to prepare a plan to implement NSDM 11 and to get Peru to agree to solve the fisheries and overflight problems in a manner acceptable to the United States. In addition, he requested alternative plans be drawn up that would assess the gains and risks for the United States in the event that the IPC controversy could not be resolved and in case of a resolution of the controversy.
Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–36, Review Group, East-West Trade—Peru, 5/7/69. Secret. Annex 1 of the April 22 Study is published as Document 596.
595. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon
Kissinger outlined United States efforts used to pressure Peru economically and argued the impact of the measures on Peru would be limited.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 795, Country Files, Latin America, Peru, IPC, Hickenlooper Amendment, April 1, 1969. Confidential. Sent for information. Nixon wrote on the top right-hand corner of the memorandum: “Keep the heat on and step it up—no compromises.” In the left-hand margin, next to the paragraph that begins, “In addition,” Nixon wrote: “good—cut by 75%.” At the top of the first page of the memorandum, an unknown hand wrote: “4/22 HAK sent memo to Sec State on this.” In an April 22 memorandum from Kissinger to Rogers, Kissinger summarized Nixon’s marginalia. (Ibid., RG 59, Deputy Assistant Secretary Subject and Country Files: Lot 73 D 353, Peru-Economic)
596. Study Prepared by the National Security Council Interdepartmental Group for Latin American Affairs
The NSC–IG/ARA study outlined seven possible economic pressure points that the United States could use to put pressure on the Velasco regime: sugar exports, loans from U.S. AID, the Export-Import Bank, the IBRD, the Inter-American Development Bank loans, private U.S. investors, and the IMF.
Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–146, NSSM Files, NSDM 42. Secret. Copies were sent for information to Helms, Kennedy, Hanna, Shakespeare, and Laird. (Ibid., Department of State, RG 59, S/S Files, Lot 80 D 212, NSSM 42)
597. Memorandum From Viron P. Vaky of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)
Vaky discussed the application of the Hickenlooper sanctions and analyzed three critical points: whether application would result in a net compensation to IPC, improve U.S. political relations in the hemisphere, and limit further uncompensated expropriations of U.S. owned properties in the hemisphere.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 795, Country Files, Latin America, Peru, IPC, Hickenlooper Amendment, April 1, 1969. Confidential. Attached but not published are Annex 1, “Themes for Consultation,” and Annex 3. Copies were sent to Halperin and Bergsten. Kissinger wrote in the upper-right hand corner: “a. When do we meet on NSSM 42? b. What are we doing to prepare the ground for application of Hickenlooper, which the President seems determined to do?” The minutes of the Review Group meeting, mentioned in the last sentence, are published as Document 599.
598. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon
Kissinger proposed a list of five possible conditions that the Peruvian Government would have to meet in order for the United States to waive the suspension of military sales.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 795, Country Files, Latin America, Peru, IPC, Hickenlooper Amendment, Vol. 2. Confidential. Sent for action. Nixon approved the recommendation.
599. Minutes of NSC Review Group Meeting
The Review Group discussed the NSC–IG/ARA, dated May 16, which analyzed the effect of U.S. economic policy on Peru and on U.S. relations with the hemisphere. Kissinger concluded that the present course of U.S. policy was unlikely to achieve its objectives. He recommended that an assessment of Velasco’s strength within the hemisphere be added to the paper and with that addition, he would submit the information to President Nixon for his consideration.
Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–111, SRG Minutes, Originals, 1969. Secret; Nodis. The meeting was held in the White House Situation Room. The May 16 NSC/IG, “Peru and IPC—Review of U.S. Strategy,” is ibid., Box H–36, East-West Trade, Peru 5/7/69. A revised version, is published as Document 600.
600. Study Prepared by the NSC Interdepartmental Group for Latin American Affairs
The NSC–IG/ARA study examined U.S. policy toward Peru, issues with employing the Hickenlooper sanctions, and the implications of those issues on current strategy. It recommended that economic pressure on Peru be continued, while continuing consultations with the Peruvian Government and IPC. In addition, the study concluded that it was important to maintain harmonious inter-American relations.
Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–135, NSSM Files, NSSM 18. Secret. A May 26 covering memorandum from Davis to Pedersen, Nutter, Smith, Unger, and Lindjord stated the memorandum would be sent to the President.
601. Memorandum From Viron P. Vaky of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)
Vaky summarized a CIA report on the Peruvian Army’s reaction to U.S. suspension of arms sales and withdrawal of military missions. The report concluded that anti-U.S. sentiment in Peru strong, and that any successor to President Velasco would be equally difficult to deal with.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 792, Country Files, Latin America, Peru, Vol. I, Through June 1970. Secret. Sent for information. Attached but not published is the CIA report, TDCS–314/07741–69, May 21. Telegram 3859 from Lima, May 26, stated that the Peruvians requested termination of U.S. military missions. However, a small group of U.S. military personnel could remain in the country. (Ibid.)
602. Telegram 3904 From the Embassy in Peru to the Department of State
Ambassador Jones recounted a phone call with the Peruvian Foreign Minister in which they discussed deteriorating U.S.-Peruvian relations, the IPC, and the fisheries problems.
Source: National Archives, RG 59, Central Files 1967–69, POL PERU–US. Confidential. In telegram 86660 to Lima, May 28, the Department directed Jones to investigate the Peruvian Government’s position further, specifically requesting he determine if the Foreign Minister’s suggestion regarding the raising of sanctions on Peru and Ecuador (mentioned in the first paragraph) had Velasco’s backing (Ibid.).
603. Telegram 4312 From the Embassy in Peru to the Department of State
This telegram transmitted a message from Siracusa, in which he recounted a 40 minute meeting with President Velasco. During this discussion, the two spoke about the fisheries dispute and the impasse over the IPC case.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 792, Country Files, Latin America, Peru, Vol. 1, Through June 1970. Confidential; Immediate; Limdis. A stamped notation on the telegram indicates that it was received at the WHCA at 2027Z on June 11. In telegram 94400 to Lima, June 10, Rogers instructed Siracusa to inform Velasco that the United States would lift its FMS suspension if the CEP governments would announce they would attend a conference on fisheries. (Ibid., RG 59, Central Files 1967–69, POL 15 PERU)
604. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon
Kissinger summarized the views of officials from IPC and Standard Oil of New Jersey on Peru’s expropriation of IPC. They stated that the 6-month time frame of the Hickenlooper Amendment was too short a time period to resolve such a complicated issue and therefore advocated that the application of the Amendment be deferred.
Source: Library of Congress, Manuscript Division, Kissinger Papers, Box CL 2, Chron File, July 1–21, 1969. Confidential. Sent for information. A stamped notation on the memorandum indicates that the President saw it. Nixon wrote on the memorandum: “K: Be sure Harlow knows this—so that he can cool off Congressional critics of deferral.” The attachment, telegram 103934 to Lima, June 24, has not been found.
605. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon
Kissinger summarized the revised NSC–IG/ARA study paper on Peru and IPC, and recommended a three-part plan for implementation for President Nixon’s approval.
Source: National Archives, Nixon Presidential Materials, NSC Files, Box 795, Country Files, Latin America, Peru–IPC–Hickenlooper Amendment, Vol. 2. Secret. Sent for action. A stamped notation on the memorandum indicates the President saw it. Nixon approved the recommendation. The President wrote on the top of the first page: “1) OK 2) But I believe you should check it with N.R. [Nelson Rockefeller] as a courtesy.” Tab A is published as Document 600. The CIA analytical index was not found. In a July 7 memorandum, Kissinger informed Vaky of the President’s approval. Kissinger wrote on the memorandum, “Pete—I have checked with NAR [Rockefeller] and he approves. HK.” (Ibid.)