823.51/1–2445: Telegram

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

83. The more favorable exchange situation described in despatch 2283 of January 2,82 seems to have deteriorated suddenly despite assurances to the contrary up to a few days ago. Central Reserve Bank reports a decline in foreign exchange holdings to slightly less than 12 million United States dollars. This development has strengthened the position of a group advocating controls, as a result of which comprehensive import and exchange control measures were made effective this morning. Permits approved in advance are required for all imports. It is stated that all applications for essential commerce, industry and financial services will be granted but that those for luxury, unnecessary and excessive imports will be curtailed or denied.

All exporters are required to turn over the total foreign exchange proceeds of exports to the Central Reserve Bank and no export permit will be granted unless proof or assurance of such delivery of foreign exchange to the Central Reserve Bank is given. Finance Minister stated no exceptions will be made for Cerro de Pasco International Petroleum and other companies operating with foreign capital, although their needs of foreign exchange will be amply cared for.

It is stated that these import and exchange control measures are definite and not subject to immediate withdrawal. Despatch follows.83

  1. Not printed.
  2. Despatch 2482, January 26, not printed.