823.248/277
The Ambassador in Peru (Norweb) to the Secretary of State
[Received January 2, 1942.]
Sir: I have the honor to refer to my telegram number 615 of November 15, 1941, 12 noon,42 relative to information locally current to the effect that dollar exchange in compensation for the 18 Douglas airplanes requisitioned by the United States Government had been deposited in the Reserve Bank in Lima, and to the Department’s telegraphic reply number 468 of November 19 [18], 1941, 6 P.M.42 stating [Page 522] that no agreement had been arrived at in regard to the matter of compensation for these planes.
As the Department is aware from communications which have been sent from this Embassy, the action taken by the American authorities in suddenly preventing delivery of these planes has been productive of much ill will toward the United States in responsible Peruvian quarters.
While adverse comment has indeed died down in the interval the matter, and more particularly the manner of sequestration has by no means been forgotten, and is I am convinced playing a part in Peruvian hesitation to permit the United States Army Air Corps to utilize desired facilities at Talara.43 Indeed, President Prado in speaking on the 28th instant at the exercises attending the end of the scholastic year of the Aeronautical Officers School, alluded to the Government’s desire to build up the Peruvian air corps stating that, while certain equipment had been received, “unfortunately as you are well aware, reasons superior to our will have so far prevented our attaining these prime necessities in spite of our having taken all appropriate measures opportunely and with foresight”.
With a view to facilitating Peruvian approval of the necessary war measures, and considering that compensation for the planes must eventually be made, I urgently recommend that the United States Government promptly effect a first payment amounting, if possible, to the value of the planes, as evidenced by the sum understood to have been paid by the Peruvian Government to representatives of that of Norway, leaving questions relating to damages for eventual legal settlement. Although it is understood that the United States Government is disposed to allow the Peruvian Government to claim compensation through ordinary legal channels, it would seem perfectly possible for at least initial payment to be made without recourse to the courts. I believe that such action on the part of the United States Government would have a definitely beneficial effect on our negotiations with the Peruvian authorities for permission to base units of our air force on Peruvian territory.
Respectfully yours,