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ORIGIN ARA-17
INFO OCT-01 ADP-00 EB-11 SSO-00 NSCE-00 SS-15 NSC-10 L-03
AID-20 CIAE-00 INR-10 NSAE-00 RSC-01 INRE-00 TRSE-00
OMB-01 /089 R
DRAFTED BY ARA/ EP/ P: MRRFRECHETTE
6/21/73:22196
APPROVED BY ARA: MR. SZABO
ARA/ EP: SMPRINGLE
LA/ EP: RFWEBER
EB/ IFD/ ODF: TSCHAFFER ( INFO)
EB/ IFD/ OIA: MKENNEDY
--------------------- 019058
O 212207 Z JUN 73
FM SECSTATE WASHDC
TO AMEMBASSY LIMA IMMEDIATE
C O N F I D E N T I A L STATE 121688
E. O. 11652: GDS
TAGS: EFIN, PFOR, PE
SUBJ: TWO FSO LOANS FOR PERU
FOR KUBISCH FROM SZABO
1. PERUVIAN DIRECTOR SUPERIOR OF HEALTH, DR. OSCAR
URTEAGA BALLON CALLED ON ME JUNE 21 TO ASK US SUPPORT FOR
TWO FSO LOANS FOR PERU AT THE IDB TOTALLING DOLS 12.2
MILLION. THESE LOANS WERE COMPLETED AT A TECHNICAL LEVEL
SOME TIME AGO AND ARE NOW BEING UPDATED TO REFLECT
INCREASED COSTS AND SLIGHT REVISIONS. ALTHOUGH PERU NOT
NOW PUSHING FOR A VOTE SUCH PRESSURE COULD BE APPLIED
QUICKLY GIVEN THE ADVANCED STATE OF PREPARATION OF THESE
LOANS AND PREVIOUSLY EXPRESSED PERUVIAN INTEREST. URTEAGA
ALSO SAW IDB EXECUTIVE VICE PRESIDENT COSTANZO AND US
EXECUTIVE DIRECTOR PORGES ON JUNE 20. REPORTEDLY THEY
FRIENDLY, INTERESTED, BUT NON- COMMITTAL.
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2. FIRST LOAN FOR DEVELOPMENT NATIONAL INSTITUTES OF HEALTH
IN PERU ( DOLS 6.2 MILLION). THE OTHER PROJECT IS FOR FOOT-
AND- MOUTH DISEASE CONTROL ( DOLS 6 MILLION). IN APRIL 1973
OUR AID MISSION IN PERU COMMENTED ON THESE PROJECTS TO THE
EFFECT THAT NATIONAL INSTITUTES OF HEALTH PROJECT LOW
PRIORITY IN TERMS PERUVIAN NATIONAL NEEDS. MISSION
THOUGHT PROJECT TOO SMALL TO MAKE SIGNIFICANT IMPACT ON
HEALTH STANDARDS. ALSO, LOW SALARIES, LACK OF RESEARCH
EQUIPMENT, AND OTHER PROBLEMS IN PERU CAST DOUBT ON THE
POSSIBILITIES FOR RECRUITING QUALIFIED RESEARCHERS. WITH
RESPECT FOOT- AND- MOUTH DISEASE CONTROL PROJECT, MISSION
WAS CONCERNED BY APPARENT LACK INFRASTRUCTURE WITHIN
PERUVIAN GOVERNMENT AND/ OR PRIVATE SECTOR AND BY APPARENT
ABSENCE OF SUFFICIENT RESEARCH UNDERLYING THE PROJECT TO
PERMIT ITS EFFECTIVE IMPLEMENTATION. MISSION ALSO
CONSIDERED PROJECT TOO SMALL TO CONTROL DISEASE SINCE IT
APPARENTLY DOES NOT COVER ENTIRE COUNTRY.
3. URTEAGA STATED PROJECTS CONSIDERED IMPORTANT AND GOOD
BY PAHO AND IDB EXPERTS. HE STRESSED THEIR SOCIAL AND
HUMANITARIAN NATURE AND SUGGESTED THEY SHOULD BE EXEMPT
FROM POLITICAL CONSIDERATIONS. I REPLIED THAT,
PARTICULARLY AFTER SECRETARY' S TRIP TO LIMA, WE WANTED
TO BE AS HELPFUL AS POSSIBLE AND THAT WE HOPE THAT WHEN
THESE LOANS COME TO A VOTE THAT US WILL BE IN A POSITION
TO SUPPORT THEM. URTEAGA PRESSED ME STATING PERU NEEDED
TO KNOW FOR PLANNING PURPOSES WHETHER IT COULD COUNT ON
THESE LOANS. I EXPLAINED THAT WE HAD A NUMBER OF
UNRESOLVED PROBLEMS WITH PERU. THE SECRETARY, DURING HIS
STAY IN LIMA, HAD STRESSED OUR INTEREST IN CONSTRUCTIVE
DIALOGUE TO RESOLVE THESE PROBLEMS. BASED ON THE
ATMOSPHERE GENERATED BY THE SECRETARY' S VISIT TO LIMA, I
WAS OPTIMISTIC ABOUT RESOLVING OUR PROBLEMS AND STRESSED
THAT WE SOUGHT TO COOPERATE WITH PERU AS MUCH AS POSSIBLE.
HOWEVER, WE VIEW OUR PROBLEMS NOT IN POLITICAL TERMS BUT
RATHER IN LEGAL, ECONOMIC, AND PRACTICAL TERMS WITH A
DIRECT RELATIONSHIP TO CONGRESSIONAL ATTITUDES. URTEAGA
AGREED ABOUT THE ATMOSPHERE GENERATED BY THE SECRETARY' S
VISIT AND SAID HIS GOVERNMENT ALSO HOPED TO REACH NEW
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UNDERSTANDING WITH US. HOWEVER, HE SAID HE WAS MOST
ANXIOUS TO KNOW WHETHER PERU COULD COUNT ON THE LOANS.
THEREFORE, SAID URTEAGA, HE WOULD TELEPHONE LIMA IN ORDER
THAT HIS GOVERNMENT MIGHT DISCUSS THIS MATTER WITH YOU.
I AGREED THAT THIS WAS AN EXCELLENT IDEA.
5. PURPOSE THIS MESSAGE TO ALERT YOU TO POSSIBLE PERUVIAN
APPROACH. ROGERS
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*** Current Handling Restrictions *** n/a
*** Current Classification *** CONFIDENTIAL