300. Telegram 211664 From the Department of State to the Embassy in Peru1

211664. Subject: Secretary’s Meeting With Peruvian Foreign Minister.

1. Foreign Minister de la Flor met with the Secretary in New York September 24 and raised two subjects:

[Page 806]

A. Reporting in U.S. media on Peruvian arms purchases. De la Flor expressed concern over U.S. press reports that arms race taking place and that GOP has aggressive intent, saying reports have very negative psychological effect. They cause problems for GOP and give rise to unfounded concern in Chile. He said they all originate in U.S. and that, while he knows the Secretary cannot intervene with U.S. press, he wants the Secretary to know Peru is not purchasing arms for aggressive or revanchist purposes. He stressed GOP’s desire use its resources to foster development but said Milgov has no intention of letting Peru find itself defenseless or inadequately prepared, as it had in past with disastrous consequences. The Secretary stressed desirability of all countries in area using restraint with respect to arms purchases.

B. OAS Secretary General elections. De la Flor said situation now at impasse; there are two candidates and neither has enough votes to win. Peru has extremely able candidate but does not wish to put him forward officially if he would be defeated. He requested U.S. support for Peruvian candidate. The Secretary said the U.S. has not decided in favor of anyone and that there will be ample opportunity to discuss this further before the elections take place. He promised that USG would talk to GOP again on subject before making final decision.

2. Subject of Exim Bank financing for trans-Andean pipeline was touched upon, with the Secretary observing that more economic data was needed and de la Flor stating that it would be supplied.

3. Braniff problem was discussed during period when Secretary was absent from meeting and will be subject of separate telegram. Kissinger unquote.

Ingersoll
  1. Summary: Kissinger, de la Flor, and other Peruvian and U.S. officials discussed arms purchases, the upcoming OAS elections, an EXIM loan, and Braniff Airlines.

    Source: National Archives, RG 59, Central Foreign Policy File, [no film number]. Confidential. On May 30, the Peruvian Ministry of Transportation informed Braniff it must submit appropriate justification for its increased number of flights in 1973 and for its proposed July 1 increase in flights and pay a 20% tax on the new flights; or “work out an agreement with Aeroperu [the Peruvian National Airline] having equivalent economic value.” (Telegram 119985 to Lima, June 6; ibid., D740145–0478) In telegram 9245 from Lima, October 31, the Embassy informed the Department that Peru had issued an operating permit to Braniff retroactive to April 1 and valid until February 28, 1975. (Ibid., D740312–0037)