631. Memorandum of Meeting1 2
PARTICIPANTS:
- Henry A. Kissinger
- Edgardo Mercado Jarrin, Peruvian Foreign Minister
- Fernando Berckemeyer Pazos, Peruvian Ambassador to the United States
- Arnold Nachmanoff, National Security Council Staff
- Ashley Hewitt, National Security Council Staff
The Foreign Minister opened the conversation by noting Dr. Kissinger’s interest in Peru and his helpful attitude in the past. Mercado added that he could not pass through Washington without availing himself of the opportunity for a brief meeting with Dr. Kissinger.
Mercado then reviewed the developments of the past three years since the inception of the Peruvian revolution. He emphasized that the ideological orientation of the revolution is nationalist and not Marxist or Communist. He said that at the end of three years the revolution has consolidated itself and that despite appearances, a great deal of the capitalist structure has been left intact. He indicated that private enterprise and private initiative are valued by the leaders of the Peruvian revolution. However, certain national assets have been taken over by the government on the same principle that the streets, parks, and utilities in this country are public rather than private property. In addition, the government has assumed responsibility for marketing and in some cases producing certain scarce natural resources. He said that in addition the workers were in some instances being encouraged to take advantage of opportunities for profit sharing and worker participation.
The Foreign Minister emphasized that the Peruvian experiment is purely national in character with no desire to either export its own practices and precepts or to import those of others. He repeated that it is anti-Communist and he said that Peru viewed with concern the emergence of a Marxist regime in Chile arising from outside influences. Mercado said [Page 2] that those who seek power in Latin America by means of guerrilla warfare and terrorism will fail to achieve it, but that coalitions of Leftist forces working through the legal structures were a far greater threat. He said that the Popular Front in Chile, if it is successful in socializing a country, will have a powerful demonstration effect in Latin America.
Mercado then advanced the idea that Peru is of great importance as a demonstration of alternative and less violent means. He emphasized that success of the Peruvian experiment depends on three things—the support of the armed forces, popular support, and economic development. Thus far, the revolution has enjoyed military and popular support, he said, and has made great progress in the economic area. He said that it is within the capability of the U.S. to facilitate the success of the revolution in the next phase by not creating obstacles tending to delay or prevent the granting of loans and credits to Peru by international financial organizations. He noted that the success of the revolution certainly should be in our interests.
Dr. Kissinger replied that domestic policy and decisions were Peru’s own affair and that the U.S. had no wish to become involved in them. However, he added, we get involved from time to time because of legislation passed by the Congress relating to expropriation cases. He said he hoped these problems could be resolved.
Dr. Kissinger went on to emphasize that, these distractions aside, the Foreign Minister was correct, that we are interested in the success of the Peruvian revolution—both for its own sake and as a non-Marxist alternative to the Chilean experience in Latin America. He said that in the years ahead, we very much want to improve our relations further and therefore had hoped that President Velasco would find it possible to visit here this year. However, he said that we understood why he had been unable to do so. He emphasized that (aside from those restrictions imposed by law) the Administration was not placing obstacles in the way of granting new credits to Peru, at least as far as he was aware. He promised to make personal inquiries to make certain this is so. He repeated our fundamental desire for improved relations with Peru and our interest in the success of the Peruvian experiment.
[Page 3]Foreign Minister Mercado said that it was a great pleasure to learn that the Administration was not placing obstacles in the way of credits to Peru. He said he felt strongly that the success of the Peruvian experiment was the best defense against the spread of Marxism in Latin America. He stated that Peru had recently experienced a wave of strikes, especially in the mining industry, led by Communist agitators. He said that these strikes demonstrated that the Communists themselves were aware of the risks to their program if the Peruvian experiment succeeded and were using these means to attack it at its weakest point—the economy. He said that at some future time it might be necessary to take strong action to get rid of agitators of this kind, but the government took pride in the peaceful nature of the Peruvian revolution and wished to put off as long as possible action of this kind. The Foreign Minister repeated that the best way of insuring the success of the Peruvian revolution was to permit the transfer of capital, not as special emergency help (as in the case of the earthquake relief) but as a normal and routine practice.
Dr. Kissinger repeated our interest in the success of the Peruvian experiment and said once again that he would look into the loan picture to make sure there were no unavoidable obstacles to the transfer of resources.
- Source: National Archives, Nixon Presidential Materials, NSC Files, Box 793, Country Files, Latin America, Peru, Vol. 2, July 1970–13 December 1971. Confidential; Nodis. The meeting was held in Kissinger’s office. According to Kissinger’s Record of Schedule, the meeting lasted from 12:42 to 1:05 p.m. (Library of Congress, Manuscript Division, Papers of Henry A. Kissinger, Box 438, Miscellany, 1969–1976, Record of Schedule) In an October 1 covering memorandum, Nachmanoff requested that Kissinger approve the release of a copy of the minutes to the Departments of State and the Treasury, and Peterson. Haig approved for Kissinger to disseminate to State, but not to Treasury and Peterson. Davis sent the memorandum to Eliot on October 8.↩
- Kissinger and Peruvian Foreign Minister Edgardo Mercado Jarrin discussed recent developments in the Peru revolution, emphasizing that the Peruvian experiment was nationalistic, not Marxist, and affirming that any changes would be made solely in Peru, and that there was no intent to export its practices. Kissinger told Jarrin that the U.S. Government hoped to see the Peruvian revolution succeed as an example of a non-Marxist alternative to the Chilean experience.↩