Foreign Relations of the United States, 1969–1976, Volume E–10, Documents on American Republics, 1969–1972

610. Memorandum From Viron P. Vaky of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)¹ ²

Washington, November 13, 1969

SUBJECT:

• Attitude of Peruvian President toward US and USSR

Attached is a fascinating CIA report covering observations made by Peruvian President Velasco in late October on Peru’s attitude toward the U.S. and the USSR. [text not declassified]

According to the report, President Velasco stated that:

• —While people believed his regime is anti-US, this is not so. He was opposed to the way US big business attempts to impose its conditions on Latin American countries, but he wants to have good relations with the US. He feels that the Nixon Administration desires to have good relations with Peru.
• —He believes the Peruvian oligarchy and the CIA want to oust him. He has been investigating their activities and believes that two firms, the Industrial Security Company and the Plant Protection Company, were CIA fronts. (See below).
• —His regime is not pro-Communist. If the Communists tried to exceed their bounds he would round them up and have them shot. He was unhappy with the favorable comments being made by Castro about Peru’s revolution. The Peruvian revolution is an economic one not a political one. He knows there are leftists among his advisers, but he needs their technical expertise.
• —He would accept Soviet aid on government projects if no other aid was forthcoming. He is aware of the danger of Soviet technicians becoming active in the subversive field.

With regard to the second item, Velasco is clearly referring to the business enterprises of William D. Chappers, an American citizen who was arrested by the Peruvian Government on October 17.

Chappers is a former FBI agent, who was stationed in Lima during World War II. He set up firms specializing in plant security and in industrial espionage. It has been a Pinkerton-type operation. He has also been involved in labor matters and has had close connections with APRA, which is now in opposition to Velasco.

[text not declassified]

Chappers was, however, so deeply involved with the oligarchy and APRA that it is understandable that the Peruvians should have been suspicious. If the oligarchy was planning anything, Chappers may well have been involved in that. It is unlikely that one could ever shake Velasco’s suspicion that Chappers is connected with the CIA even if he cannot prove it.

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 792, Country Files, Latin America, Peru, Vol. 1, Through June 1970. Secret; Sensitive. Sent for information. The memorandum is stamped “HAK [Kissinger] has seen November 14, 1969.” Attached but not published is Intelligence Information Cable TDCS DB–315/04774–69 from [text not declassified], November 12.
2. Vaky summarized a CIA report that outlined President Velasco’s observations of Peru’s attitude toward the United States and the USSR. The report summarized four key points of Velasco’s perception of Peru’s relationship with both nations and his opinions on the Peruvian investigation of a U.S. citizen who had worked for CIA and had run private security firms in Lima.