283. Memorandum From Secretary of Defense Richardson to the President’s Assistant for National Security Affairs (Kissinger)1
SUBJECT
- Deteriorating US-Peruvian Relations
I have become increasingly concerned by the rapid deterioration in US relations with Peru over the past several months. This deterioration has been highlighted by our Ambassador to Peru in messages of 232214Z Feb 73 and 232225Z Mar 73. The immediate cause is the recent seizures of US fishing vessels. It appears that these seizures were stimulated by the October 1972 revision of the Fisherman’s Protective Act and subsequent public reaction in Peru.
Since FMS to Peru have again been placed “under review” following the December 1972 seizure, both the US Country Team and the Peruvian Naval Attaché in Washington have expressed the extreme frustration and dilemma of the Peruvian Navy created by the review. The major ships of Peru’s Navy are obsolete, and Peru is currently exploring means and sources for their replacement. The Peruvian Air [Page 759] Force is also deeply affected because of its desire to modernize with A–37B and F–5E aircraft. The sale of these aircraft is contingent upon the ability of the US Government to sell seat ejection cartridges and mini-gun barrels. Both of these Services must look elsewhere if assured FMS are not soon forthcoming from the United States. The Soviets have made continued overtures toward Peru for the sale of military equipment with attractive credit terms and have recently demonstrated new equipment (including MiGs) to the Peruvian Joint Chiefs of Staff equivalent, both in the Soviet Union and in Cuba. Should Peru purchase MIGs, the Chilean Air Force may accede to Soviet pressure and also accept these aircraft. Intelligence reports indicate that Peru is also considering the acquisition of Soviet T–54 tanks.
Parallel to the problems caused by the seizure of US fishing boats, is the equally frustrating matter of the 1968 Peruvian expropriation, without compensation, of the International Petroleum Company (IPC). Following the most recent review of US policy toward Peru (National Security Study Memorandum 158), National Security Decision Memorandum (NSDM) 199, dated 26 December 1972, stated that the Senior Review Group (SRG) would reconsider the situation if, by the end of February 1973, the initiation of talks with the Peruvians in the IPC case had not proven feasible.
The US Ambassador to Peru has identified a number of expected or possible actions and reactions which could further raise the intensity of bilateral conflicts within the next few months and has suggested that we should not go further into this difficult period without some plan for management.
In my view, the inability to make progress in resolving the IPC dispute, combined with the deteriorating situation brought about by the fisheries problem, makes it urgent that US policy toward Peru be reviewed. I therefore recommend an early meeting of the SRG for this purpose.
E.L.R.
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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.
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