811.516 Export-Import Bank/10–1047: Telegram
The Ambassador in Peru (Cooper) to the Secretary of State
733. Mr. August Maffry, Vice President Export-Import Bank, exploded bombshell in field Peruvian economic relations with US by stating in letter Peruvian Commercial Counselor Washington, September 23 that barrier that had existed since 1942 against Peru using Export-Import Bank credits still stood. Foreign Minister stated President and Cabinet greatly disturbed and discouraged in view all President Bustamante and Peruvian Congress had done to try to reconstruct Peru’s credit standing this year, notably by passage Peruvian law last February 28 to resume service on Peru’s external dollar debt despite Peru’s extreme dollar shortage.
Foreign Minister said statement of Maffry directly contrary his [Page 1014] understanding, obtained in Washington when Foreign Minister visited US, and mentioned specifically the conference he had with Assistant Secretary Thorp on July 8 in which Mr. Thorp stated that “the Department had consulted the Export-Import Bank during past few days and that it had been decided that the Bank would now be pleased to give appropriate consideration on their economic merits to applications for loans made by Peruvian Government”. Mr. Thorp also stated that “in effect this lifted the previous ban and that Peru was to be considered one of the countries whose loan applications could now be presented to the bank”.
Foreign Minister stated that talks with both President Truman and the Secretary of the Treasury27 tended to confirm this understanding. He further said that President Bustamante’s talk with Secretary Snyder in Lima last July 29 confirmed Peru’s understanding that credit door was now open to Peru provided Peru could submit sound economic projects.
Foreign Minister and Finance Minister in recent talks with me have evidenced little short of alarm at Maffry’s apparent reversal previously stated policy.
I was present with Foreign Minister in Washington at conference with President Truman and Assistant Secretary Thorp and Secretary Snyder and was present with President Bustamante when Peru’s credit standing with US was under discussion with Secretary Snyder. My impression from these talks is contrary to the policy stated by Mr. Maffry in his letter of September 23, copy of which given me by Foreign Minister.
This Embassy would appreciate being informed as to whether Mr. Maffry’s letter correctly states present US financial policy with Peru.
- John W. Snyder.↩