811.20 Defense(M)Peru/843: Telegram

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

893. Refer to Embassy’s 892, June 22, 6 p.m.

1.
“Preamble pursuant to Resolution II, the Third Meeting of the Ministers of Foreign Affairs of the American Republics at Rio de Janeiro,61 the Governments of the Republic of Peru and the United States of America undertook, in common with the Governments of the other American Republics, to cooperate with each other to the utmost possible degrees in the mobilization of their economic resources with the special objective of increasing the production and the flow of the strategic materials essential for the defense of the Hemisphere. Reaffirming [Page 744] these principles and prompted by the mutual friendship and esteem of the peoples of the Republic of Peru and the United States of America, the Government of the Republic of Peru and the Metals Reserve Company, an agency of the Government of the United States of America, now agree that effective the date of execution of this agreement and until June 30, 1944: Agreement 1. Metals Reserve Company shall purchase the metals and minerals of Peruvian origin listed iii exhibit ‘A’ hereof,63 at the minimum prices and terms therein specified, which may be offered to it from such sources as it selects provided that it shall not be obligated to make any purchases from producers or suppliers who are on the Proclaimed List of blocked nationals of either the Government for [of] the Republic of Peru or the Government of the United States. The maximum quantity of any metal or mineral that the Metals Reserve Company is obligated to purchase hereunder shall not exceed 125 per cent of the production of such metal or mineral for the year 1942; provided, however, but [that] the Metals Reserve Company shall have the option to accept under the terms of this agreement any amount in excess of such maximum quantities as may be available for export from Peru.
2.
The Government of the Republic of Peru shall, by adequate decrees implemented by necessary regulation, limit the exportation of all strategic metals and minerals to (1) the United States, (2) the British Empire and (3) the other American Republics which have systems of export control acceptable to the Governments of the Republic of Peru and of the United States. In no event shall exports be made to persons who are on the Proclaimed List of blocked nationals of either Government. The Government of the Republic of Peru shall use its best efforts to expedite the deliveries to the United States of metals and minerals purchased under this agreement; and will permit deliveries of these materials to other American Republics only after consultation and agreement between the appropriate representatives of the two Governments of the Republic of Peru and of the United States.
3.
The two clauses as in Department’s No. 617 of May 28, 10 p.m.
4.
For the purposes of this agreement strategic metals and minerals shall be those listed in exhibit ‘A’ and such other metals and minerals as are from time to time deemed by the Government of the United States to be strategic.”
Norweb

[The agreement as set forth in the telegram printed supra and schedule A as indicated in airgram No. A–799, with a slight change of phraseology, were formally accepted by Peru on July 14, 1943. With despatch No. 7419, July 20 (not printed) the Ambassador enclosed a copy of the accord which was signed that day (811.20 Defense(M)Peru/913).]

  1. For text of Resolution, see Department of State Bulletin, February 7, 1942, p. 119; for correspondence on the Foreign Ministers Meeting, see Foreign Relations, 1942, vol. v, pp. 6 ff.
  2. Not printed. Schedule A included copper, lead, zinc, tungsten, molybdenum, antimony, and mica. The agreed version of this schedule was conveyed to the Embassy by the Department in airgram No. A–799, July 1, 1943.