640. National Security Decision Memorandum 199 and Council on International Economic Policy Decision Memorandum 171 2
TO:
- The Secretary of State
- The Secretary of Defense
- The Secretary of the Treasury
- The Secretary of Commerce
- The Director of Central Intelligence
SUBJECT:
- U.S. Policy Toward Peru
The President has reviewed the interagency study on Peru prepared in response to NSSM 158/CIEPSM 23. He has concluded that we should pursue Option 1A, endeavoring to find a new basis for a negotiated settlement of the IPC dispute as well as other investment problems in Peru. The Assistant to the President for International Economic Affairs will coordinate this effort with support from the Departments of State and Treasury. If by the end of February 1973, development of an approach for initiating talks with the Peruvians has not proved feasible, the President directs the Senior Review Group to reconsider the Peruvian situation and make further recommendations.
During the 90 day exploratory period, the President has decided to reserve judgment on the question of the applicability of the Gonzales amendment to the IPC case. He directs that the U.S. continue efforts to maintain the cooperation of international financial institutions in deferring consideration of pending loans to Peru.
In regard to Ex-Im Bank lending to Peru, the President has decided to continue temporarily the present hold on new Ex-Im direct credits in order to preserve the possibility of using these credits to advantage in any new efforts directed towards a solution of the IPC dispute. If a solution cannot be developed, the current Ex-Im policy towards Peru should also be reconsidered by the Senior Review Group.
- Henry A. Kissinger
- Peter M. Flanigan
- Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–237, NSDM Files, NSDM 199. Confidential; Nodis. Copies were sent to the Director of USIA, the Administrator of AID, the President and Chairman of the ExIm Bank, and the President of OPIC. The interagency study is published as Document 638. The Gonzalez Amendment is described in Document 638, footnote 1. No minutes of a future SRG meeting on Peru have been found.↩
- President Nixon directed the Departments of State and the Treasury and the Assistant to the President for International Economic Affairs to seek a new negotiated settlement for disputes over expropriated assets of U.S. companies. Nixon also decided to defer application of the Gonzales Amendment and to continue the hold on new Ex-Im direct credits.↩