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Returning to Santiago from a visit to neighboring Peru, Chilean Foreign Minister Gabriel Valdés hastily summoned U.S. Ambassador Edward Korry. In Lima, Valdés had held two long talks with Juan Velasco Alvarado, leader of the military junta that seized power last fall. Subject: the approaching showdown between Peru and the U.S., which neither nation really wants. Soon after his junta overthrew President Fernando Belaunde Terry in October, Velasco expropriated the U.S.-owned International Petroleum Co. As a result, the U.S., under a congressionally imposed retaliation called the Hickenlooper Amendment (TIME, Feb. 14), would have no choice...
Velasco, reported Valdés, was finally beginning to realize that the U.S. actually intended to invoke the amendment and that the two countries were on a collision course. With 350,000 sugar workers immediately dependent on exports to the U.S., Peru's previously adamant president was now open to negotiation...
Disintegrating Relations. Valdés' message, relayed to Washington from Santiago, contained four face-saving provisos for the sovereignty-conscious Peruvian junta. Velasco would receive a U.S. emissary, but that representative must be 1) a high-level personage, 2) President Nixon's special representative, 3) armed with discretionary powers to negotiate broadly, and 4) willing to come to Lima. The Administration has been increasingly concerned over its disintegrating hemispheric relations; at his press conference two weeks ago, President Nixon ruefully admitted that imposing the Hickenlooper Amendment would have an anti-American domino effect all over South America. Therefore...
Gloom, Not Doom. "We are still thinking in terms of our individual nations and not of the common benefits," complained a Venezuelan official after the conference finally broke up. Chile's Foreign Minister Gabriel Valdés Subercaseaux decried the "exaggerated, abusive" use of the veto, and Ecuador's delegate to Asunción, Julio Prado Vallejo, said flatly that the conference demonstrated "the unacceptability of new compromises...
...Ramiro Valdés, Castro's Minister of Interior, suggested as much in a brief radio speech last week. "We must fight," he told Cubans, "against internal espionage, sabotage, acts of terrorism and attempted assassinations." A few weeks ago, according to one report, saboteurs put the torch to two Cuban PT boats in Santiago harbor. Another report tells of a Cuban antiaircraft battery that gunned down a Cuban army transport in the belief that Castro was aboard...