823.01/33: Telegram

The Ambassador in Peru (Dearing) to the Secretary of State

221. Department’s 109, September 16, 2 p.m. Presented note incorporating substance Department’s instructions to the Minister for Foreign Affairs, Colonel Montagne, at 10:50 this morning. He received it cordially and expressed his Government’s great appreciation of your action. Reports of Secretary’s statement at press conference in Washington reached Lima yesterday about 2 p.m. and made an excellent impression upon Peruvians, Americans, and other foreigners and colleagues.

Colonel Montagne assures me recent reports of unrest and Cabinet crisis are purely inventions and declares present position of Government as stronger than ever and that evidence of popular approval multiplies. He scouted the report that Leguia would be humiliated at his trial and assured me it would be a serious and dignified proceeding on highest possible plane. Colonel Montagne will endeavor to arrange wider liberty for Grow and current funds for Sutton and is cooperating for termination Larranaga asylum (Department’s 111, September 17, 2 p.m.) this afternoon if possible. Further report later.

I expressed personal opinion Peru could not improve her financial position more than by paying October 1st national loan service requirements and said I felt sure satisfactory arrangements could [Page 759] immediately thereafter be made with the fiscal agents. He seemed to like this idea. Stahl is to confer with Sanchez Cerro in this sense this afternoon.

Dearing