Evening star., 1942-04-23
U. 5. and Peru Agree
On Upper Amazon
Rubber Exploitation
TotoI of $50, ,0W, 900
Credit TO Limo Also 10 Aid
Coostul Desert Work
By BLAIR BOLLEs.

Secretary OF State Hull and
the Peruvian Minister OF Finance
and Commerce, David Dasso, to-
day exchanged notes at the State
Department providing for far
reaching economic cooperation
between the United States and
Peru, which among other things
In intended to help relieve our
rubber problem. open up TO ex-
ploitation the rich jungle around
the Amazon River headwaters
and reclaim the desert coastal
plain OF Peru.
The Export Import Bank In es-
tabhshtng a s25,000. 900 credit In
favor Of the Banco Central de Re-
serya del Peru TO assist In Peruvian
financing OF purchases in this coun-
try OF materials and equipment re-
ouired In construction and develop
rent OF useful public works and
agricultural, mining and industrial
projects in Peru.
Peru previously had been granted
o s26 1000 Export Import Bank
loan which Il has not found 1t neces-
sary to Use. Thus the total Peruvian
credit here now is $4,000, 900.
Agreement One Of Series.
The agreement is aimed at pro-
viding Peru with assurances of eco
nomic stability despite It's loss Of
markets as result OF the war. II
Is one OF a series of agreements
which the State Department hopes
TO reach with all the Latin Ameri-
can countries that have broken with
Germany and Germany's colleagues.
Previous agreements have been
reached with Brazil and Haiti.
The agreement gives the United
States access to Peruvian commodi-
ties needed here for the war and
serves to broaden as well as to stabi-
lie Peru's economy and to make It
possible for Peru to produce the
things 1t used to buy abroad but
which the war makes It impossible
10 buy any more.
The agreement is the result OF ac-
ton by the Rio de Janiero confer
ence in January.
Resume of Agreement.
The whole agreement provides:
u. Measures for the mobilization
OF the resources of Peru for the
production Of strategic materials
essential for the security OF the
hemisphere, involving especially the
establishment by Peru of a Peru
vian-Amazon corporation and ar
rangements for the acquisition by
the Rubber Reserve Co. over a Pc
riod Of five years OF all rubber pro-
duced In Peru other than a speci-
fed amount required for essential
uses In Peru.
q. Establishment by the Export
Import Bank of a credit in favor of
Sanco Central de Reserve del Peru
m the sum Of $25 900, 900.
"3. Agreement with the Secretary
OF Agriculture for the establishment
Of an agricultural experiment sta
ton at lingo Maria and arrange
mentS for the loan TO the gov
ernment Of Peru OF the services Of
experts of appropriate agencies of
the United States in highway en-
gineering. erosion control, coal min
ing and tea processing.
Cotton to BE Bought.
4. Agreement for the purchase
by the Department of Agriculture,
through the Commodity Credit
Corp, for the duration of the war,
OF the Peruvian cotton production
in excess Of sales for Peruvian con-
sumption and for export to other
purchases"
Meanwhile, 1t was announced in
Peru that President Manuel Prado
has postponed his scheduled trip
to Washington. The move was ex-
planned by the Peruvian Embassy
here as being the result of a con-
stitutional problem. The question
has been raised that the Peruvian
Constitution forbids the departure
of a President from the country
during his term of Office and Presl-
dent Prado will not leave until that
matter is decided