611.2331/175
Memorandum of Conversation, by Mr. H. Gerald Smith of the Division of Commercial Treaties and Agreements
| Participants: | Señor Pedro Beltrán, Honorary Commercial Delegateof Peru |
| Señor Juan Chavez, Commercial Counselor of Peruvian Embassy | |
| Mr. Hawkins, TA13 | |
| Mr. Daniels, RA14 | |
| Mr. Smith, TA |
Señor Beltrán, who had just arrived from Lima, and Señor Chavez called by appointment to resume the preliminary conversations which, had taken place in November 1939 looking toward the establishment of a basis for trade-agreement negotiations between the United States and Peru.
At Mr. Hawkin’s request, Señor Beltrán reviewed economic developments in Peru during the past several months. He indicated that the; situation with respect to the principal export products had been developing normally up to the present time but it was anticipated, particularly because of developments in the war situation in Europe during; the last few days, that Peruvian exporters, particularly of sugar and cotton, would face considerable marketing difficulties about July. [Page 1144] Señor Beltrán stated that in view of this outlook, Peru was anxious to develop new markets to replace those in Europe which would probably be closed as a result of war developments.
Mr. Hawkins outlined the situation here over the past several months, pointing out that the trade-agreements organization had been, up until a few weeks ago, completely absorbed in the work in connection with the renewal of the Trade Agreements Act by Congress. He indicated that there were various difficulties in the way of the conclusion of a trade agreement with Peru at an early date but that the question of whether or not negotiations could be undertaken at this time was one which would have to be decided by higher authorities in the Department. Señor Beltrán stated that he was planning to be away from Washington for about ten days and he was informed that by the time he returned, it was expected that the general question of a trade agreement with Peru would have been discussed in the Department and an answer secured for the Peruvian representatives.
There was some discussion of individual commodities which might come within the scope of trade-agreement negotiations with Peru, and the Peruvian representatives were promised certain factual information in answer to questions which they had raised regarding certain of those commodities.