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

632. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon¹ ²

Washington, January 8, 1972

SUBJECT:

• Fisheries Dispute with Ecuador and Peru

At Tab A is State’s recommendation that we lift the Foreign Military Sales suspension we imposed on Peru when she seized a US fishing boat in March, 1971. State argues that it makes sense to treat Peru more leniently than Ecuador since Peru has had only one seizure in the course of the year as opposed to more than fifty by Ecuador. The Foreign Military Sales suspension would be lifted without any preconditions other than an indication by the Peruvian Government that its policy of restraint will be continued. This indication will be taken by us to constitute reasonable assurances against further seizures within the meaning of the Pelly Amendment, and permit you to sign a waiver lifting the suspension.

We asked the Departments of Commerce and Defense for their views on State’s recommendation. Commerce concurs with the recommendation (Tab B). Defense approves of distinguishing in our policies between Peru and Ecuador, but expresses concern about the impact on Congress of waiving the ban at this time, and also fears that Peru will react adversely if we were to press for further assurances of restraint (Tab C). Defense suggests as an alternative that we thank the Peruvians for their restraint to date, point out that the FMS suspension expires automatically in March, and suggest that we begin discussions now on military requirements which we may be able to meet after the March expiration date.

There do not appear to be any grounds for concern about congressional reaction to lifting the FMS suspension on Peru providing both the spirit and the letter of the law are honored, which they would be if State’s proposal is followed. Neither does it seem likely that Peru will react adversely to a straightforward offers to lift the FMS ban in exchange for an indication of continued restraint, though of course it may refuse the offer in the interests of solidarity with Ecuador. However, the point made by Defense that the ban against Peru expires automatically in March if no new seizures take place, and that we could begin conversations now on Peru’s requirements without actually lifting the ban, is well taken.

I agree that it would be very useful to lift the FMS suspension imposed on Peru now not only because of the contribution this step might make to resolving the fisheries dispute, but as a step toward improving our overall relations with Peru. As you know, strengthened relations with Peru are an important element in our strategy in this area. We can enjoy the benefits of both State’s and Defense’s suggestions by means of the following scenario:

• —We thank the Peruvians for their relative restraint to date, point out that the FMS suspension is due to expire in March, and suggest we begin discussions now on military requirements we may be able to meet after March.
• —We say that we can lift the FMS suspension now providing the Peruvians indicate that their policy of restraint will be continued in the future.

Thus if the Peruvians feel they cannot commit themselves to continued restraint because of the need to maintain public solidarity with Ecuador, they will nevertheless have gotten the message that we will be willing to do business with them in less than two months providing they continue to show restraint in fact.

RECOMMENDATION

That you approve the scenario outlined above.

1. Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–230, NSDM Files, NSDM 147. Secret. Sent for action. Kissinger approved the recommendation for Nixon. Attached but not published are Tabs A through C. Tab A is a January 8 memorandum from Eliot to Kissinger; Tab B is a January 7 memorandum from Howard W. Pollock, Acting Administrator National Oceanic and Atmospheric Administration and Chairman of the Department of Commerce; Tab C is a January 8 paper prepared in the Department of Defense.
2. Kissinger summarized the Department of State’s recommendation to lift the FMS suspension on Peru and analyzed the positions of the Departments of Commerce and Defense. He argued that the United States should lift the suspension if Peru indicated that it would maintain its policy of restraint.