Peru
636. Memorandum From Director of Central Intelligence Helms to the President’s Assistant for National Security Affairs (Kissinger)
Helms reported a discussion in which Secretary of the Treasury Connally told President Velasco that Peru must offer a symbolic payment of $1 as compensation for IPC to reinforce that uncompensated expropriation was unacceptable. In exchange for an agreement between the Peruvian Government and IPC, the United States, according to Connally, would open credit to Peru from all sources.
Source: Central Intelligence Agency, Executive Registry Subject Files, Job 80–B01086A, Box 14, Folder 448, P8 Peru. Secret. The DDP concurred. Printed from a copy that bears Helms’s stamped signature.
637. National Security Study Memorandum 158 and Council on International Economic Policy Study Memorandum 23
President Nixon requested a review of United States-Peruvian relations that included five major considerations: future political developments in Peru; United States-Peruvian relations in light of U.S. policy towards Latin America, in particular Chile; the Peruvian economy; U.S. assistance to Peru; and the handling of outstanding investment disputes.
Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–193, NSSM Files, NSSM 158. Confidential. Signed by both Kissinger and Flanigan. Copies were sent to the Director of USIA, the Administrator for AID, the President and Chairman of the ExIm Bank, and the President of OPIC. NSSM 18 is Document 578. NSSM 42 is published as Document 593. Meyer sent the NSC–IG/ARA report, entitled “Review of U.S. Policy Towards Peru,” to Kissinger and Flanigan on September 26. A portion of the report is published as Document 638.
638. Memorandum Prepared by the NSC Interdepartmental Group on Latin American Affairs
The study reviewed U.S. policy towards Peru, finding that United States interests included fostering a favorable trade and investment climate and maintaining U.S. influence. The study presented three policy options: maintaining the present policy; enacting a harder line policy; or softening the policy stance.
Source: National Archives, RG 59, S/S–I, NSSMs, 1/69–5/80: Lot 80 D 212, NSSM 158. Confidential. NSSM 158/CIEPSM 23 is published as Document 637. The minutes of the SRG meeting are published as Document 639. The Gonzalez Amendment of March 10, 1972, (86 Stat. 59) required U.S. representatives to the IDB to vote against providing loans to nations that had expropriated U.S. investments; or, if U.S. officials voted to provide such loans, to publicly state their legal rationale for their vote.
639. Minutes of Senior Review Group Meeting
The Senior Review Group discussed outstanding problems with Peru and policy options outlined in a study memorandum prepared by the NSC–IG/ARA.
Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–113, SRG Meeting Minutes, Originals, 1972–1973. Confidential. The meeting took place in the White House Situation Room. A portion of the study produced in response to NSSM 158 is published as Document 638. Minutes of a future SRG meeting on Peru have not been found. The CIEP/Treasury initiative was not found.
640. National Security Decision Memorandum 199 and Council on International Economic Policy Decision Memorandum 17
President Nixon directed the Departments of State and the Treasury and the Assistant to the President for International Economic Affairs to seek a new negotiated settlement for disputes over expropriated assets of U.S. companies. Nixon also decided to defer application of the Gonzales Amendment and to continue the hold on new Ex-Im direct credits.
Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–237, NSDM Files, NSDM 199. Confidential; Nodis. Copies were sent to the Director of USIA, the Administrator of AID, the President and Chairman of the ExIm Bank, and the President of OPIC. The interagency study is published as Document 638. The Gonzalez Amendment is described in Document 638, footnote 1. No minutes of a future SRG meeting on Peru have been found.