Foreign Relations of the United States, 1961–1963, Volume XII, American Republics

428. Memorandum of Conversation¹

Washington, January 25, 1963, 12:15 p.m.

SUBJECT

• Farewell Call of Ambassador Jones Before Departing for Peru²

PARTICIPANTS

• The President
• Ambassador J. Wesley Jones
• Mr. Ralph Dungan, The White House
• Mr. Taylor G. Belcher, Director, Office of West Coast Affairs

The President opened the conversation by referring to the many problems which the Ambassador would face in his new post—the forthcoming elections and change of power, the dangers inherent in Leftist agitation, the dispute over territorial waters and the question of submarines for the Peruvian Navy. The President asked whether the Peruvians were claiming the 200-mile limit on territorial waters only with respect to U.S. vessels and it was explained that they were not. Upon learning that the reaction in Lima to our recent approach on behalf of two fishing vessels³ had evoked a rather negative response based on the alleged tone of our note, the President asked whether in fact the note had been offensive and he was assured that it had not been. The Ambassador spoke of his regret that there were these problems such as the fisheries and the question of submarines to plague him at a time when he felt it was so important to establish a quick sense of mutual confidence and rapport.

With regard to the submarines, the President inquired as to why the Peruvian Navy required any submarines, much less new ones. It was explained that the Peruvian Navy had a replacement program set up which provided for two new submarines to replace the two oldest of the four now in commission. A U.S. firm was interested in bidding and we had been informed that the Germans and the British had also been invited to bid. The President said that while it would be better if they did not spend their resources on submarines, if they were determined to purchase them somewhere it would be better if U.S. suppliers had the opportunity than to have the business go to Britain or Germany. It was pointed out to the President that the contrast between the $20 million apparently available for new submarines and the $1.3 million set aside in the budget for the cost of land reform was scandalous and would be likely to evoke embarrassing questions in connection with our aid program for Peru.

The President wished the Ambassador well and asked him to be certain to make it clear to the Peruvians that the U.S. Government was doing all in its power to cooperate with the other governments who were participating in the Alliance for Progress but that they would have to appreciate that our resources were limited and that we did have a balance of payments problem. He added that today Latin America occupies a primary place in our policy considerations. Europe was relatively secure and prosperous while the situation in Latin America required our best efforts and attention.

1. Source: Department of State, Central Files, 123 Jones, J. Wesley. Limited Official Use. Drafted by Belcher and approved in the White House on February 18. The meeting took place at the White House.
2. Jones was appointed Ambassador on November 29, 1962.
3. On October 28 the tuna fishing vessels Western Ace and Chicken of the Sea were seized by Peruvian authorities for fishing within the 200-mile territorial limit claimed by Peru.