611.2331/179

Memorandum of Conversation, by the Chief of the Division of Commercial Treaties and Agreements (Hawkins)

Mr. Beltrán and Mr. Chavez called today to learn the result of our consideration of the possibility of going forward immediately with the discussion of the proposed trade agreement. In accordance with Mr. Welles’ decision (my memorandum of May 24), I said that it seemed to us impracticable to work out a trade agreement in the immediate future; that in addition to the domestic considerations previously indicated to them, the unsettled state of trade and prices makes it difficult to work out an economic arrangement with Peru on as long a range basis as this; that we are fully cognizant of immediate economic needs of Peru and that when I discussed the matter with Mr. Welles, he had said that there were other possible means of cooperation to which he would give personal study. I said that this does not, of course, mean that the idea of a trade agreement with Peru is abandoned, but only that it is not considered feasible to go forward with it now or in the immediate future.

Mr. Beltrán indicated that he understood the situation and gave the impression that the decision for the immediate future was the one he had expected. His attitude throughout the conversation was very cordial and friendly.