623.3531/3–2247: Telegram
The Ambassador in Peru (Cooper) to the Secretary of State
us urgent
231. Argentina is pressing Peru for quickest possible answer to Argentine commercial treaty proposal. Answer demanded today, but probably will not be given by Peru until Monday or possibly Tuesday. Terms demanded by Argentina appear contrary to some American interests in Peru, and indications are Peru would prefer to deal with US provided US in position to furnish fats and vegetable oils and some wheat to meet her comparatively small requirements.… Is possible proposed agreement may work against American interests since exportable supply of oil of International Petroleum Company, whose stock is more than two-thirds owned by American citizens, would be commandeered to extent of 300,000 tons per year by Peruvian Govt to service Argentine treaty requirements, resulting in destroying the framework of International Petroleum Company’s present export commitments.… the actual terms which Peru will probably agree to, unless Peru is informed next Monday that she may look to US for same amounts of fats and vegetable oils, are as follows:
The following commodities would be furnished annually to Argentina for next five years in amounts shown:
100,000 tons anthracite; 400,000 tons petroleum; 30,000 tons sugar; 1,200 tons cotton; 30 tons rotenone; 1,000 tons rubber.
In return for above Argentina would agree to furnish Peru annually following commodities in amounts indicated:
130,000 tons wheat; 4,000 tons meat; 1,500 tons fats; 3,500 tons pork grease; 3,000 tons vegetable oils; 500 tons butter; 100 tons linseed oil; 300 tons cheese; 100 tons milk powder; 76 tons lambs’ wool; 2,500 tons quebracho; 800 tons leather.
Understand so far no prices are specified or any of above articles by terms of agreement which stipulates 50% all freight to be carried in Argentine flag vessels.
[Page 1034]It is urgent that I receive reply by telephone or otherwise by Monday whether Peru could look to US for assistance in meeting its requirements for fats, vegetable oils and wheat … I recommend that such assurance be given if practicable as being in best interests of US.