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

637. National Security Study Memorandum 158 and Council on International Economic Policy Study Memorandum 23¹ ²

Washington, August 13, 1972

TO:

• The Secretary of State
• The Secretary of Defense
• The Secretary of the Treasury
• The Secretary of Commerce
• The Director of Central Intelligence

SUBJECT:

• Review of U.S. Policy Toward Peru

The President has directed that NSSM 18 of February 7, 1969, NSSM 42 of April 11, 1969, and papers and reports resulting therefrom be reviewed and updated in the light of trends and developments since their approval. The review should take into account the full range of U.S. political and economic interests in Peru in the context of our global and hemispheric policies and interests. Specifically the study should address:

• —the probable development of Peru’s policies and politics over the next eighteen months to two years;
• —the relationship between our policy towards Peru and our policies towards Chile and Latin America generally;
• —the outlook for the Peruvian economy, including an assessment of external resource requirements and possible assistance from sources other than the U.S.;
• —U.S. assistance policy with respect to Peru, including earthquake and flood reconstruction assistance, bilateral, regional and multilateral economic assistance, Ex-Im credits and military assistance;
• —the handling of outstanding problems including investment disputes, especially IPC, and the Gonzalez and Hickenlooper amendments.

The NSC IG/ARA, augmented for this purpose by representation from CIEP, Commerce, Ex-Im and OPIC, should prepare a paper setting forth options for U.S. policy for submission by September 15, 1972. It will be reviewed by the Senior Review Group, including representation from CIEP and the Department of Commerce as well as its usual membership.

• Henry A. Kissinger
• Peter M. Flanigan

1. 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.
2. 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.