309. Letter from President Carter to Peruvian President Morales Bermudez1
In your letter of April 4,2 you raised a number of very important issues. As you know, my government supports the process you have begun, to restore democratic rule. We recognize that the acute problems which Peru now faces make this process especially difficult.
As I have assured you, the United States wishes to help you in every appropriate way. I hope that our Commodity Credit Corporation sales, the PL 480 Title I3 program, and development loans can assist you in meeting your country’s needs. I also hope that our programs will stimulate others to express faith in Peru’s future.
I am sure you share our view that an understanding with the IMF about an economic stabilization program will greatly help Peru meet its immediate problems and restore financial balance to its economy. A mission to Washington by your Ministers of Foreign Relations and of Economy and Finance would be more useful after your government has further developed its program with the IMF. The United States will continue to follow developments between Peru and the IMF, although any agreement must be worked out by the parties directly concerned.4
We have explored the possibility of a loan from the Exchange Stabilization Fund, and we regret that it is not possible because the Peruvian financial problem seems to be longer term in nature than is appropriate for such financing. I was pleased to learn that the Inter-American Development Bank is taking an interest in assisting Peru with its investment planning. My government will support the Inter-American Development Bank in this effort.
My government would, of course, be willing to participate in a multilateral consideration of rescheduling Peru’s debt if you and your [Page 877] advisers believe that to be the best course of action. As you know, most recent debt reschedulings have been contingent on compliance with an IMF stabilization program. If Peru’s creditors agree that the situation warrants debt rescheduling, the United States would work for quick completion of the negotiations.
We wish you every success in overcoming the formidable problems your country faces. Please let me know when your mission is prepared to come to Washington to meet with the Secretaries of State and Treasury. I will consult closely with them to assure [Page 878] maximum cooperation between our governments in addressing these financial questions.5
Sincerely,
- Source: Carter Library, National Security Affairs, Brzezinski Material, President’s Correspondence with Foreign Leaders, Box 16, Peru: President Francisco Morales Bermudez Cerutti, 5/77-6/80. No classification marking. Attached as Tab A to Document 308.↩
- See footnote 2, Document 308.↩
- Title I is the concessional sales component of PL-480.↩
- In his April 28 evening report to Carter, Vance wrote: “The Peruvian Cabinet finally approved a new emergency austerity program on April 25. The Ministers of Foreign Relations and Finance will be coming to Washington next week to outline the program and to seek IMF approval.” (Carter Library, National Security Affairs, Brzezinski Material, Subject File, Box 20, Evening Reports [State], 4/78)↩
- Carter rewrote this paragraph. In an earlier draft, the last two sentences read: “Please let me know when your mission is prepared to come to Washington. If my schedule permits, I would like to receive the two Ministers whom you might send. If that is not possible, I would make every effort for the Ministers to be received in my stead by the Secretaries of State and Treasury.” (Carter Library, National Security Affairs, Brzezinski Material, President’s Correspondence with Foreign Leaders, Box 16, Peru: President Francisco Morales Bermudez Cerutti, 5/77-6/80)↩