103.9169/3120: Airgram
The Ambassador in Peru (White) to the Secretary of State
[Received April 10—3 p.m.]
A–344. For Foreign Economic Administration. Reference Department’s circular airgram from Foreign Economic Administration of March 30, 1944, 7:30 p.m.86 regarding a further proposed rollback of Decentralization to a minimum positive list as of July 1, 1944.
As expressed in the Embassy’s telegram No. 1178 of September 3 [1], 1943, 3:00 p.m.,86 the Embassy in principle is in complete accord with the removal as soon as possible of restrictions on the exportation of American merchandise not in short supply. Any alteration in the Decentralization Plan, it is felt, should also be contingent upon whether or not available shipping is sufficient to handle the volume of requests made by Peruvian importers.
As long as certain commodities are in scarce supply and such limited amounts have to be equitably apportioned among importers on a basis of their actual requirements, it would then appear not only necessary, but advisable, that the control over the division of the limited amount available of such commodities be exercised in the field. This is primarily due to the closer association of the men in the field with importing firms in Peru and their more intimate knowledge of the requirements of such firms. Although the present system of import recommendations is one which the Embassy, in its desire to get back to a basis of normal free trade, wishes to see modified or done away with as quickly as possible, still it is realized that a distribution of allocations of commodities in limited supply by authorities of the United States Government in Washington, in which distribution or division the authorities of the Peruvian Government would have no part, could not help but lead to an inequitable distribution of such commodities. [Page 1537] This would result in ill will directed against the United States Government and its agents, whereas under the present system the responsibility for the division of the allocations of commodities in limited supply rests exclusively with the Peruvian authorities. At present if the division is not equitable from the point of view of the essential minimum needs of each applicant, then the responsibility rests directly with the Country Agency, to which appeals can be made locally.
A too rapid rollback of decentralization for those commodities in limited supply and under limited allocation, it is feared, would result in the Economic Section of the Embassy becoming a clearing house for complaints of local importers regarding the unfair distribution of such allocations by the authorities in Washington. A gradual roil-back as commodities come into freer supply would appear the most logical procedure. The Embassy would like to recommend that a positive list be completed as soon as possible since the frequent modifications and changes have resulted in misinterpretations and confusions in many cases.