281. Memorandum From William J. Jorden of the National Security Council Staff to the President’s Deputy Assistant for National Security Affairs (Scowcroft)

Summary: Jorden informed Scowcoft of the state of play involving the IPC investment dispute.

Source: National Archives, Nixon Presidential Materials, NSC Files, Country Files, Box 793, Latin America, Peru, Vol. 3, January 1972–December 31, 1973. Secret; Sensitive; Eyes Only. Outside the System. Sent for action. Attached but not published were undated draft letters from Flanigan to the President and from the President to Velasco. Although there is no indication that Scowcroft informed Hinton of NSC approval, Nixon decided in late February to send Greene as an intermediary to Peru. (Paper prepared by the Department of State, April 21; ibid. RG 59, National Security Study Memoranda, 1969–1977: Lot 80D212, NSSM 158)

282. Memorandum From the Acting Assistant Secretary of Defense for International Security Affairs (Eagleburger) to Secretary of Defense Richardson

Summary: Eagleburger informed Richardson of the broad outlines of the U.S. Government’s policy towards Peru. He requested approval for presidential waivers of congressionally-mandated withholding of FMS for Peru and an SRG meeting if the waivers were denied.

Source: Washington National Records Center, OSD Files: FRC 330–78 0001, Peru 1973. Secret. Richardson approved the actions on March 20. NSSM 158 is published in Foreign Relations, 1969–1976, vol. E–10, Documents on American Republics, 1969–1972, as Document 637. National Security Decision Memorandum 11 and 19 are ibid., Documents 593 and 607, respectively. Attached but not published at Tab A is a February 23 telegram from Belcher to the Secretary of State; at Tab B is Belcher’s undated overview to the FY 1974–75 CASP for Peru; at Tab C is a March 8 Memorandum for the Record from LeBailly; at Tab D is a February 20 telegram from Belcher to the Secretary of State; and at Tab E is a undated draft letter to Crimmins from Eagleburger. On April 14, Eagleburger informed Richardson that he had sent the letter to Crimmins on March 22, and that a request for a Presidential Determination issuing the waiver to the Pelly Amendment was being processed at the Department. (Ibid.) No SRG meeting on Peru was held.

283. Memorandum From Secretary of Defense Richardson to the President’s Assistant for National Security Affairs (Kissinger)

Summary: Richardson recommended to Kissinger that a SRG be convened to review U.S. policy towards Peru.

Source: National Archives, Nixon Presidential Materials, NSC Files, Country Files, Box 793, Latin America, Peru, Vol. 3, January 1972–December 31, 1973. Secret. On April 18, Richardson sent a copy of the memorandum to Rogers. (Ibid., RG 59, Central Files, 1970–1973, POL PERU–US) Belcher’s February 23 telegram is referred to in the source note to Document 282. On March 23, in telegram 1894 from Lima, Belcher informed the Department of Peru’s “probable imminent decision” to purchase Soviet MIGs. (Ibid., RG 59, Central Foreign Policy File, [no film number]) NSDM 199, December 26, 1972, is Document 640 in Foreign Relations, 1969–1976, vol. E–10, Documents on American Republics, 1969–1972. No SRG meeting on Peru was held.

284. Transcript of Telephone Conversation

Summary: Kissinger and Shultz discussed how the United States should vote on an Inter-American Development Bank loan to Peru.

Source: National Archives, Nixon Presidential Materials, Kissinger Telephone Conversation Transcripts (Telcons), Box 19, Chronological File, April 24–25, 1973. No classification marking. In a telephone conversation that took place at 4:30 p.m. on April 24, Shultz informed Kissinger that the President of the IDB, Antonio Ortíz Mena, had told him that “abstention would be be appropriate,” in his view, “because the Peruvians would regard this as a gesture of good faith on our part”; Kissinger and Shultz agreed that the United States should abstain. (Ibid.) In telegram 77610 to Lima, April 25, the Department instructed the Embassy to inform the Peruvian Government that the abstention was intended to express deep concern over U.S.-Peruvian investment disputes while also showing “good faith as a step towards successful conclusion of the Greene mission.” (National Archives, Nixon Presidential Materials, NSC Files, Country Files, Box 793, Latin America, Peru, Vol. 3, January 1972–December 31, 1973)

285. Telegram 310 From the Consulate in the Netherlands Antilles to the Department of State

Summary: Rogers and Mercado discussed Peru’s maritime claims, fishing rights, and the lifting of a ban on Peruvian participation in the Foreign Military Sales program.

Source: National Archives, RG 59, Central Files, 1970–1973, ORG 7 S. Confidential; Immediate. Repeated for information to Lima. On May 14, Nixon signed Presidential Determination 73–13 waiving the Pelly Amendment allowing FMS of 24 A–37 aircraft. (Memorandum From Peet to Clements, June 3; Washington National Records Center, OSD Files: FRC 330–78 0001, Latin America 092.2–850, 1973) In telegram 3361 from Mexico, May 14, Rogers requested Belcher’s and Crimmins’s views as to whether he should inform the Peruvian Prime Minister in his upcoming May 16 meeting. (National Archives, RG 59, Central Files, 1970–1973, ORG 7 S.) In telegram 3101 from Lima, May 14, Belcher recommended Rogers inform de la Flor in their first May 16 meeting. (Ibid.) In telegram 91988 to Caracas and Lima, May 14, Crimmins suggested that Rogers should demur if the matter came up in the conversations in Peru. Instead, Crimmins recommended that after Rogers returned to Washington he could then inform the Peruvians that the waiver had been issued as a result of the conversations in Lima. (Ibid.)

286. Telegram 311 From the Consulate in the Netherlands Antilles to the Department of State

Summary: Rogers and de la Flor discussed U.S.-Peruvian relations, and U.S. policy towards Latin America.

Source: National Archives, RG 59, Central Files, 1970–1973, ORG 7 S. Confidential; Immediate. Repeated for information to Lima. In Rogers’s conversation with Velasco, Velasco discussed the reasons behind his 1968 military coup and the Peruvian Revolution, and U.S. policy with regard to Peruvian requests for loans from IFIs. (Telegram 1736 from Rio de Janeiro, May 19; ibid.) President Nixon’s May 3 report to Congress is printed in the Department of State Bulletin, June 4, 1973, p. 717 Rogers’s remarks about Latin America can be found ibid., June 25, 1973, pp. 903–927.

287. Telegram 3670 From the Embassy in Peru the Department of State

Summary: The Embassy requested guidance on how to answer questions by Peruvian officials with regards to sales of F–5 aircraft to Latin American nations.

Source: National Archives, RG 59, Central Foreign Policy File, [no film number]. Confidential. On May 23, the Department informed the Embassy that on May 21 the President had signed Determination 73–14, which granted credit to the governments of Argentina, Brazil, Chile, Colombia, and Venezuela in connection with the sale of F–5s. (Telegram 98509 to Brasília, Santiago, Buenos Aires, Bogotá, Caracas, and Lima, May 23; ibid.) There is no indication the Department provided guidance to the Embassy. On June 8, in a telegram forwarded to Lima, the Department stated that the U.S. Government was prepared in principle to sell F–5s if the request were made. (Telegram 108603 to Bridgetown, Georgetown, Guatemala, Kingston, Managua, Mexico, Panama, Port au Prince, Port of Spain, San Jose, San Salvador, Santo Domingo, Tegucigalpa, and Nassau, June 8; ibid.)

288. Telegram 129032 From the Department of State to the Embassy in Peru

Summary: The Department informed the Ambassador that the Peruvian Government needed to publicly announce the existence of discussions to resolve investment disputes before the U.S. Government could set forth criteria for supporting IFI loans to Peru.

Source: National Archives, Nixon Presidential Materials, NSC Files, Country Files, Box 793, Latin America, Peru, Vol. 3, January 1972–December 31, 1973. Secret; Immediate; Nodis. Drafted by Pringle and Kubisch; cleared by Hinton, Hennessy, Jorden, and Rush. NSDM 199/CIEPDM, December 26, 1972, is Document 640 in Foreign Relations, 1969–1976, vol. E–10, Documents on American Republics, 1969–1972. In telegram 4584 from Lima, July 3, Belcher informed the Department that he was not able to discuss the Department’s proposal with Velasco, but did discuss it with de la Flor on July 2, in which he and de la Flor discussed the risks involved if the talks, after made public, failed. (Ibid., P840114–1800) In telegram 4661 from Lima, July 5, Belcher informed the Department that de la Flor had told him that he discussed the U.S. Government proposal with Velasco. (Ibid., P840114–1796)

289. Telegram 5644 From the Embassy in Peru to the Department of State

Summary: The Ambassador informed García Bedoya that the U.S. Government would request a postponement of an IBRD vote on a loan for Peru until the public announcement of the discussions to resolve investment disputes.

Source: National Archives, RG 59, Central Foreign Policy File, P840114–1731. Secret; Immediate, Nodis. Telegram 5520 from Lima has not been found. In telegram 157090 to Lima, August 9, the Department informed the Embassy that because the Peruvian Government agreed to an announcement, the U.S. Government would vote for a $25 million IBRD agricultural and livestock credit loan for Peru. (Ibid., P840114–1942) The August 9 Peruvian Government announcement of its agreement to investment discussions with Greene is in the Department of State Bulletin, August 27, 1973, p. 310.

290. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon

Summary: Kissinger recommended that Nixon sign a Presidential Determination to authorize credit for Peru’s purchase of F–5 aircraft.

Source: Library of Congress, Manuscript Division, Kissinger Papers, Box CL 298, Memoranda to the President, 1973, August–December, Folder 3, 1973, September. Secret. Nixon signed the Determination. Attached but not published at Tab A is a September 20 memorandum from Nixon to Rogers issuing Presidential Determination 74–4; at Tab B is a July 20 memorandum from Rush to the President; and at Tab C is a September 10 memorandum from Ash to the President.

291. Memorandum of Conversation

Summary: Kubsich and García Bedoya discussed regional issues and investment and fisheries disputes.

Source: National Archives, RG 59, Central Files, 1970–1973, POL PERU–US. Secret; Nodis. Drafted by Frechette on October 29; cleared by Weber and Kubisch. The meeting took place in Kubisch’s office. The text of Kubisch’s speech can be found in the Department of State Bulletin, November 12, 1973, pp. 608–613. Belcher informed the Department that even though Velasco had threatened to expropriate the Cerro corporation, he had not. In addition, the Cerro corporation, in Belcher’s words, “using what appears to us extreme language,” had stated that the Peruvian Government had negotiated in bad faith and refused to sell its assets to the Peruvians. (Telegram 7065 from Lima and Telegram 190532 to Lima, both September 25; ibid., Central Foreign Policy File, [no film number])

292. Telegram 223776 from the Department of State to the Embassy in Peru

Summary: Shlaudeman informed Peruvian Chargé Roca that the U.S. Government would support IFI loans to Peru once the dispute over the expropriated properties of U.S. companies was resolved.

Source: National Archives, Nixon Presidential Materials, NSC Files, Country Files, Box 793, Latin America, Peru, Vol. 3, January 1972–December 31, 1973. Confidential; Immediate; Nodis. Drafted by Frechette; cleared by Shlaudeman, Weintraub, Sternfeld, Weber, and Hennesy; approved by Kubisch.

293. Telegram 16696 From the Department of State to the Embassy in Peru

Summary: The Department instructed Belcher to express to Velasco the U.S. Government’s concern that a recent Peruvian purchase of tanks from the Soviet Union could lead to increased tensions in the region.

Source: National Archives, Nixon Presidential Materials, NSC Files, Country Files, Box 794, Latin America, Peru, Vol. 4, January 1974. Secret; Exdis. Repeated to Moscow. Drafted by Frechette and Shlaudeman; cleared by Pringle, Grey, Miles and Kubisch; approved by Kissinger. There is no indication Belcher and Velasco discussed the matter. In telegram 193548 to Lima, September 4, the Department, noting reports that the Peruvian Government had entered into new credit arrangements for further Soviet arms purchases, asked the Embassy to review the instructions in telegram 16696 and to deliver a démarche to Velasco. (National Archives, RG 59, Central Foreign Policy File, D740245–0870) Telegram 8043 from Lima, September 24, which reports on the subsequent meeting with Velasco, is Document 299.

294. Editorial Note

295. Memorandum of Conversation

Summary: Kissinger and de la Flor discussed regional issues and the dispute over fishing rights.

Source: National Archives, RG 59, Central Foreign Policy File, P820043–2412. Confidential; Nodis. Drafted by Zweifel; cleared by Kubisch; approved by Bremer on February 21. The meeting took place in the Foreign Minister’s suite in the Hotel Camino Real. Kissinger and de la Flor were in Mexico City for a meeting of the hemisphere’s Foreign Ministers. The meeting followed a November 14–16, 1973, Latin American Foreign Ministers Conference in Bogotá that approved eight points as the “bases for a new dialogue between Latin America and the United States”: cooperation for development, prevention of coercive economic measures, restructuring the inter-American system, solution of the Panama Canal question, restructuring the international commerce and monetary systems, compelling multinational enterprises to respect the sovereignty of their host nations, transfer of technology, and a reconsideration of the general panorama of relations between Latin America and the United States. (Telegram 9438 from Bogotá, November 17, 1973; ibid., [no film number]) Kissinger’s Mexico City speech is in the Department of State Bulletin, March 18, 1974, pp. 257–262.

296. Telegram 1798 From the Embassy in Peru the Department of State

Summary: Belcher outlined the reasons why the Peruvians agreed to compensate expropriated U.S.-owned companies.

Source: National Archives, RG 59, Central Foreign Policy File, [no film number]. Confidential; Limdis. Nixon’s letter to Velasco is referred to in the source note to Document 281.

297. Telegram 86749 From the Department of State to the Embassy in Peru

Summary: Following up on meetings with de la Flor during multilateral meetings in Washington and Atlanta, Kissinger informed the Peruvian Foreign Minister that he had arranged for CCC credits for wheat for Peru.

Source: National Archives, RG 59, Central Foreign Policy File, P850093–2277. Secret; Immediate; Nodis. Drafted by Kubisch; cleared by Enders, Butz, Simon and Dunlop; approved by Kissinger. On April 17, Kissinger and de la Flor met in Washington, and discussed Latin American regional issues, economic assistance, and Middle Eastern issues. (Ibid., P820043–1933) A record of the Kissinger-de la Flor meeting in Atlanta has not been found. Kissinger and de la Flor were in Washington for a meeting of the hemisphere’s Foreign Ministers and in Atlanta for a meeting of the OASGA.

298. Memorandum of Conversation

Summary: Kissinger, de la Flor, and Fernández Maldonado discussed the future of U.S. policy towards Latin America and a possible Export-Import Bank loan for a pipeline project in Peru.

Source: National Archives, RG 59, Central Foreign Policy File, P820097–1190. Confidential; Exdis. Drafted by Pringle. The meeting took place in Kissinger’s office at the Department of State. In telegram 185626 to Lima, August 23, the Department sent a summary of the memorandum of conversation to the Embassy. (Ibid., D740233–0926) Kissinger’s September 23 speech is in the Department of State Bulletin, October 14, 1974, pp. 498–504.

299. Telegram 8043 From the Embassy in Peru to the Department of State

Summary: Ambassador Dean reported on his conversation with Velasco regarding Soviet arms sales to Peru.

Source: Ford Library, National Security Adviser, Presidential Country Files for Latin America, Box 6, Peru–State Department Telegrams–To Secstate–Exdis. Secret; Immediate; Exdis. Repeated to Santiago and USUN. In telegram 193548 to Lima, September 4, the Department, noting reports that the Peruvian Government had entered into new credit arrangements for further Soviet arms purchases, asked the Embassy to deliver a démarche to Velasco. (National Archives, RG 59, Central Foreign Policy File, D740245–0870) In telegram 8001, September 23, Dean reported his conversation with Grojean. (Ibid., D740267–0529) “Plan Inca” refers to Velasco’s plan for nationalization of significant commercial enterprises. (Telegram 6692 from Lima, August 13; National Archives, RG 59, Central Foreign Policy File, D740222–0421.) In telegram 8034 from Lima, September 24, Dean reported on three September 22 explosions in Lima on a pedestrian bridge. No damage was reported. (Ibid., D740268–0629)

300. Telegram 211664 From the Department of State to the Embassy in Peru

Summary: Kissinger, de la Flor, and other Peruvian and U.S. officials discussed arms purchases, the upcoming OAS elections, an EXIM loan, and Braniff Airlines.

Source: National Archives, RG 59, Central Foreign Policy File, [no film number]. Confidential. On May 30, the Peruvian Ministry of Transportation informed Braniff it must submit appropriate justification for its increased number of flights in 1973 and for its proposed July 1 increase in flights and pay a 20% tax on the new flights; or “work out an agreement with Aeroperu [the Peruvian National Airline] having equivalent economic value.” (Telegram 119985 to Lima, June 6; ibid., D740145–0478) In telegram 9245 from Lima, October 31, the Embassy informed the Department that Peru had issued an operating permit to Braniff retroactive to April 1 and valid until February 28, 1975. (Ibid., D740312–0037)

301. Memorandum From Stephen Low of the National Security Council Staff to the President’s Deputy Assistant for National Security Affairs (Scowcroft)

Summary: Low informed Scowcroft of coup plotting in Peru and recommended that Dean be advised to keep a low profile in order to maintain a posture of non-involvement.

Source: Ford Library, National Security Adviser, Presidential Country Files for Latin America, 1974–1977, Box 6, Peru, 1. Secret; Sensitive. Sent for information. Scowcroft wrote “OK” on the memorandum and initialed it. In telegram 9200 from Lima, October 30, the Embassy informed the Department of coup-plotting. (National Archives, RG 59, Central Foreign Policy File, D740310–0428) On October 31, the Department passed telegram 9200 to the directors of the USCINCO, CIA, DIA, and the Chairman of the JCS. (Telegram 239218 to USCINCSO, October 31; ibid., D740310–0947) No instruction to Dean to maintain a low profile has been found.

302. Telegram 8696 From the Embassy in Argentina to the Department of State

Summary: Einaudi reported on institutional and leadership divisions in the Peruvian Government.

Source: National Archives, RG 59, Central Foreign Policy File, D740346–0753. Confidential. Repeated to Lima and Santiago.

303. Telegram 10425 From the Embassy in Peru to the Department of State

Summary: The Embassy transmitted an analysis of the long-term implications of Peru’s 1968 revolution.

Source: National Archives, RG 59, Central Foreign Policy File, D740359–0838. Secret.

304. Transcript of the Secretary of State’s Staff Meeting

Summary: Kissinger instructed Rogers and and Special Assistant for Press Relations Anderson to protest a Peruvian official’s claim that the CIA was involved in unrest in Peru.

Source: National Archives, RG 59, Transcripts of Secretary of State Kissinger’s Staff Meetings, Lot 78D443, Box 6, Secretary’s Principals’ and Regionals’ Staff Meetings. Secret. In telegram 1538 from Caracas, February 7, the Embassy reported that Peruvian Ambassador Barrios Llona had stated the day before that the CIA was involved in “‘just about everything that goes on in Latin America’” including recent unrest in Peru. (Ibid., Central Foreign Policy File, D750046–0082) In telegram 29385 to Lima, February 7, Rogers conveyed the Department’s concern to Roca-Zela that Peruvian officials had alleged CIA intervention in Peru, adding that the allegations had no foundation. (Ibid., [no film number]) In telegram 28577 to all American Republic diplomatic posts, February 7, the Department reported Anderson’s statement that Velasco’s personal secretary had publicly announced that APRA and left-wing groups were responsible for the recent violence, and allegations of CIA involvement had no foundation. (Ibid.)

305. Telegram 1172 From the Embassy in Peru to the Department of State

Summary: The Embassy reported on anti-government activity and Velasco’s degree of control in Peru.

Source: National Archives, RG 59, Central Foreign Policy File, D750050–0260. Confidential; Priority. Repeated to Bogotá, Brasília, Buenos Aires, Caracas, La Paz, Quito, Santiago, USCINCSO, DIA, and JCS. On February 12, the Department forwarded the telegram to the USUN. (Telegram 32244 to USUN, February 12; ibid., [no film number]) In telegram 1271 from Lima, February 13, Dean reported on a conversation with Brousset Escobar, who maintained that Velasco remained in control of the military and that friction between him and Morales Bermúdez was minimal. (Ibid., D750053–0463)

306. Telegram 2060 From the Embassy in Peru to the Department of State

Summary: Rogers and Morales Bermúdez discussed bilateral issues.

Source: National Archives, RG 59, Central Foreign Policy File, D750089–0247. Confidential. The Peruvian national airline (Aeroperú) and Braniff Airlines had been negotiating the allocation of air routes which would serve as the basis of an agreement between U.S. and Peruvian aeronautical authorities. (Telegram 54642 to Lima, March 11; ibid., [no film number]) On May 31, 1974, the Embassy of Peru requested Department approval for the sale of 280 APCs. (Memo from King to Winship, December 16, 1975; ibid., P760005–1330) Due to crises in Southeast Asia and the Middle East, Kissinger’s visit was postponed until 1976.

307. Memorandum Prepared in the Central Intelligence Agency

Summary: The CIA discussed the succession issue in Peru and identified Morales Bermúdez as the most probable candidate to succeed Velasco.

Source: Central Intelligence Agency, Office of Support Services (DI), Job 79T00865A: Staff Notes and Memos (1975), Box 25, Folder 23, Prospects for Change in Peru’s Leadership, No. 0543/75. Secret; No Foreign Dissem; Controlled Dissem. [drafting information not declassified] In telegram 978 from Lima, February 5, the Embassy reported on “popular riots” in Lima. (National Archives, RG 59, Central Foreign Policy File, [no film number]) In telegram 1707 from Lima, March 2, the Embassy reported that Velasco was ill, “perhaps from a brain hemorrhage or aneurism.” (Ibid., D750073–0181) In telegram 1795 from Lima, March 4, the Embassy reported that Velasco suffered a mild attack, and that Morales Bermdez would assume greater powers. (Ibid., D750076–0104)

308. Telegram 4291 From the Embassy in Peru to the Department of State

Summary: De la Flor and Dean discussed regional and bilateral issues, including recent U.S. protests to the Peruvian Government and the expropriation of Gulf Oil.

Source: National Archives, RG 59, Central Foreign Policy File, D750182–0564. Confidential; Priority. In telegram 3973 from Lima, May 14, the Embassy reported that Peru perhaps expropriated Gulf Oil in order to strengthen its credentials in the region and the Third World, and that the expropriation could be adopted by other countries as a precedent. (Ibid., D750169–0967) In telegram 4294 from Lima, May 23, the Embassy reported on the portion of the Dean-de la Flor conversation relating to civil aviation issues. (Ibid., D750182–0601)

309. Telegram 4920 From the Embassy in Peru to the Department of State

Summary: Dean reported on speculation that if Velasco remained healthy, there would be a gradual transfer of power from Velasco to Morales Bermúdez.

Source: National Archives, RG 59, Central Foreign Policy File, D750213–0528. Confidential. Repeated to La Paz, Quito, Santiago, and USCINCSIO.

310. Telegram 6062 From the Embassy in Peru to the Department of State

Summary: Dean reported that he had impressed upon García Bedoya the importance of compensation for the expropriation of the Marcona company’s holdings in Peru.

Source: National Archives, RG 59, Central Foreign Policy File, D750263–0170. Limited Official Use; Immediate. On July 23, Richter informed Dean of the impending expropriation. On July 24, Dean informed Garcia Bedoya of the importance of compensation for Marcona. Dean informed the Department he would write a letter to Richter regarding compensation. (Telegram 5979 from Lima, July 24; ibid., D750255–0990) Although there is no indication Dean discussed the matter with Morales Bermúdez, the Ambassador left a copy of his letter to Richter with Morales Bermdez’s principal aide, and the aide informed Dean that he would raise the matter with Morales Bermúdez. (Telegram 6101 from Lima, July 31; ibid., D750264–1011) On August 4, Dean discussed the expropriation with de la Flor. Dean reported that de la Flor “is now fully aware of the dire implications of the Marcona problem and seems to be seized with the need to begin serious negotiations to resolve it.” (Telegram 6244 from Lima, August 5; ibid., D750269–0205)