Evening star., 1949-03-06

.s Peru
Former Envoy Be|tron
May Curb Spending
by Government
magazines" he concluded. "are re-
sponsible for these suspicious in
the minds of you North Ameri-
cans"
Most of the Conservatives with
whom I talked were very bitter
toward the United States press
and radio. They insist that the
Peruvian political picture is mis-
represented by United States cor
respondents and especially by
what they call "the touring ones
who come down. stay for two or
three days in Lima. and then go
back and write lengthy stories
about the complicated Peruvian
political and social picture"
They complained bitterly be-
cause so much space and atten-
ton have been given in this coun-
try to Haya de la Tore. However,
some Peruvians understand the
reason. UNFORTUNATELY for Peru" "
one of them told me, "Haya de la
Tore is a master propaganda.
He speaks Yankee English: having
gone to school and spent many
years in the United States. He
also cultivates the Yankee jour-
nalists and intellectuals. Publicly,
but with his tongue In his cheek.
he has professed to support Yam
kee ideas and Yankee investors
in Peru"
Vital Matter to L. S.
No matter what the attitude OF
the present regime toward the
United States or the balance OF
the world. ruling Peru, keeping
the peace, and handling the eco
nomics of the nation will continue
to be an extremely difficult proc
ess. All of which is Of vital i'm
portance to us. not only because
of our vast investments in the
country, but the necessity OF buy
ing many Of their products. The
giant Cerro de Pasco Copper Co..
largest single industry in Peru.
is a United States corporation.
Much of the silver industry is also
financed by United States capital.
A major portion of Peru's oil in
dustry, with nearly 1000 produc-
ing wells, is operated by United
States and Canadian interests
In addition, various trading COM
panies. particularly w. r. Grace
& Co., are heavily invested in
Peru. The Grace company op-
crates a little of everything from
sugar plantations to banks and
small factories. Pan American
Grace Airways has its main op-
Grafton base in Lima.
The Peruvian financial setup is
IN the hands of Pedro Beltran
former Ambassador in Washing.
ton. In fact. nearly everybody
in Lima calls him the mentor o1
the military junta, if not the god
father of the revolution. He i.
the chairman of the board Of the
Reserve Bank, patterned after tht
Federal Reserve Bank of the
United States. Beltran. a rich
charming and polished man of the
world, equally at home in ths
United States, London or an.
other foreign capital, who speak
impeccable oxford English, i
nevertheless an arch Peruvian
conservative, a member of the oil
land aristocracy, and big cottol
farmer and property owner. HI
is sincerely convinced that tn,
revolution which overthreW Bus
tamante and destroyed the leader
ship of the APRA organization
has saved Peru from something
worse than Russian communism
Beltran Conservative
It is the consensus of the mos
responsible observers, native ane
foreign, that as long as Beltrar
is the chief financial and eco
nomic adviser. and especially st
long as he is the watchdog of tn,
Reserve Bank, the government viii
not overspend or institute an!
unusual economic innovations. 1
is believed that if he has his wa.
the nation will be operated on :
strictly conservative basis. Thu
landowners and their ways will b.
preserved. Native capital and in
vestors will receive first considera
ton. At the same time. as on
of his friends expressed it, 'labo
will be kept thoroughly in hand.
i Above all, under the present set
up, any resurgence of the APRf
movement will be slapped down b.
mericless military hand. And
finally, any return to so-callet
civilian or constitutional govern
ment, by means of elections O.
otherwise. will follow the ancien
pattern of government by the ''rul
ing class" Only a mass revolu
ton, which would hardly get yer.
far at the moment, since Peru ha
one of the strongest. best equipped
and best trained military estab
lishments on the South American
continent, can change the pros
pect.
Cz C2-oo