Figure 1.-- Here we see the Peruvian Consul to the Netherlands and his family. The Consulate was locatted in Rotterdam. The heart of the city was destroyed by the German Luftwaff (May 1940) in a terror bombing operation. It worked, the Dutch quickly surrendered to the NAZIs. The American press caption here read, "Arrivals on the S.S. Magallanes from Spain: The Consul of Peru to Rotterdam as he returned with his family, Mr. and Mrs. Gonzalo Arris, Betty, aged 2, and Gonzalo, aged 7. They have been stationed at Rotterdam for 7 years." The photograph was dated October 21, 1940. We are not sure just what this means. It kind of sounds like they are returning to NAZI occupied Rotterdam after the German victory, but they may be arriving in New York on the way home to Peru. This needs to be determined.
German U-boats tended to dominate Latin American attitudes toward the War and generated a great deal of anti-German feeling as their economies were so dependent on exporting raw materials. This was a factor in World War II, but not as intense. A major change here was that, trade with the United States was more important than during World War I and thus their trade was less exposed to U-boat attacks. This was especially for the Pacific coast states like Peru. Thus when war broke out in Europe, Peru took no action other than declare its neutrality (September 1939). Peru had a more diversified economy than many other Latin American countries. It exported both metals and cotton. The United States was especially interested in Peru's cotton. American policy was to offer Latin American countries a high premium for strategic materials in exchange for further barganing and open market training. Peru and Ecuador fought a war over a border dispute (1941). A peace treaty negotiated in Rio de Janeiro gave Peru control over most of the disputed terrtory, including the northern sections of the departments of Amazonas and Loreto. Ecuador never accepted this border and fire fights occurred occassinal for five decades. The border was not finalized for years. Ecuador continued to claim a large area of the Amazionian basin. Peru finally granted Ecuador access to the Amazon and turned over a small area to Ecuador. The countries are now finally at peace, although unexploded ordinance (UXO) is still a problem. Peru received some Lend Lease Aid which could have destabilized the regionl balance because rival Chile did not break with the Axis and thus did not qualify for Lend Lease aid (1941). This did not develop into a serious situation because by 1943 the American Navy dominated the Pacific and both Peru and Chile became a low priority. Peru did act after the Pearl Harbor attack and Germny's declration of war on the United Sstates. Peru broke off relations with the Axis -- Germany, Italy and Japan (January 24, 1942). After the Torch invasions, Peru broke diplomatic relations with Vichy France (January 26, 1943). Peru had a refinery producing aviation fuel. This and proximity to the Panama Canal, the Inited States was given permission o build an air base at Talara in northern Peru. the Peruvian Navy participated in patrolling the Pacific Panama Canal area. The Peruvian Government detained some 2,000 Peruvian citizens of Japanese descent and transported them to the United States as part of the Japanese American internment policy. Most of the countries benefitted from the increase demand for their export commodities. Peru benefitted less than some because of Government policies like domestic price controls. Although Peru did not declare war on Germany and Japan until 1945, declaring a state of 'belligerency'. The Allied victory reinforced the trend toward a more democratic government.
World War I (1914-18)
Both Peru and Bolivia broke relations with Germany. The two countries had fought Chile in the War of the Pacific (1879) and lost territory to that country. Both countries hoped that supporting U.S. policy might gain support for their claims to lost territory. This did not occur, but Peru benefitted economically from the War. Peru substantially increased copper, cotton, rubber, oil and guano production to supply war orders. The engendered a short burst of prosperity that lasted while the War continued. A German U-boat sunk the Peruvian ship Lorton off Spain (February 1917). Germany refused to pay repriations. Peruvians were insulted that the Germans had offered Argentina compensation in similar circumstances. The implication was that the Germans did not see Peru imprtant enoough with which to bother. The Peruvian Congress voted to break relations with Germany. An indication of the public outrage was the 105-6 vote. The Government seized nine German ships, but not before the crews had disabled them. Peru's main contributions to the Allies were the mineral and other raw material exports. There were fund raisingdrives for the Red Cross. The Peruvian Navy patrolled the west coast of South America for German U-boats and surface raiders.
Maritime Trade
German U-boats tended to dominate Latin American attitudes toward the War and generated a great deal of anti-German feeling as their economies were so dependent on exporting raw materials. This was a factor in World War II, but not as intense. A major change here was that, trade with the United States was more important than during World War I and thus their trade was less exposed to U-boat attacks. This was especially for the Pacific coast states like Peru. Thus when war broke out in Europe, Peru took no action other than declare its neutrality (September 1939).
Peruvian Econmy
Peru had a more diversified economy than many other Latin American countries. It exported both metals and cotton. The United States was especially interested in Peru's cotton. American policy was to offer Latin American countries a high premium for strategic materials in exchange for further barganing and open market training.
Cotton Exports
the focus on World War II resources is on oil and metals. Agricultural commodities were also important. Peru's most importnt export commodity was cotton. Some 120,oo Peruvians wre involved in growing cotton and the cotton trade. It primarily exported to Britain and Europe before the War. With the advent of the War, shipments to Europewere curtailed, except for Britain and this meant runnung the risk of U-boat attacks. America produced its own cotton which was basically supplied domestic demand. The War, however, created demand in America that southern farmers could not fully supply. America not only had an army to unifirm, but also that of its allies. President Prado signed an agreemebt with the U.S. Commodity Credit Corporation. The United states agreed to buy all the cotton Peruvian farmers could produce at above market prices. It was a major support for the Peruvian economy, although Peruvian policies limited the potential bonanza. [Masterson and Ortiz, p. 128.]
Lend Lease
Peru received some Lend Lease Aid which could have destabilized the regionl balance because rival Chile did not break with the Axis and thus did not qualify for Lend Lease aid (1941). This did not develop into a serious situation because by 1943 the American Navy dominated the Pacific and both Peru and Chile became a low priority.
Break with the Axis
Peru did act after the Pearl Harbor attack and Germny's declration of war on the United Sstates. Peru broke off relations with the Axis -- Germany, Italy and Japan (January 24, 1942). After the Torch invasions, Peru broke diplomatic relations with Vichy France (January 26, 1943).
Peruvian Military
Latin American militaries relied strongly on foreign militaries for advisers and modern military equipment. Those advisers came primarily from Europe. And this was the case for the Peruvian Army as well. There was a relationship with the French Army. Before the War, President Benivides experimented with a German military mission as part of what was an essentially pro-Fasist military policy. It may have relected the degree to wg=hich Benivides was thinking about war mor more than Fascist sympathies. This is not alltigether clear. Some Peruvian officers were impressed with the NAZIs, a sutuation echoed throughout the region. The militarism of the NAZIs seems to have been what attracted admiration. Apparently totally unknow to most in the refion was NAZI racial doctrine which abhored race mixing and the people resulting from it. Much of the population of Peru was mestizo,mincluding much of the Army. The German officers who arrived were undoubtedly competent, they were also rrogantly insuferable, alinating even those officers who had worked to bring them to Peru. After less than 2 years they were asked to leave. The more accomodating French were invited back just before the outbreak of World war II (1939). A small group remained (until 1944). President Benivides not only arranged for German Army advisers, but also Italian Air Force advisers and a training group (1937). Peruvian aviation cadets were sent to Itly where they receivd advanced instruction at the Aviation Academy in Caserta. This ended when Italy entered the War (June 1940). The Italians wre replce with an U.S. Navy advisory group (July 1940). This was part of an overall American diplomtic effort to end Axis operations in Latin America. Unlike the Army, the Navy had connections with the U.S. Navy. American naval officers had been working with the Peruvian Navy since after World War I (1920s). The Americans worked well with the Peruvins and the Navy has a pro-American orienttion in shrp contrast to the Army. President Belevides as part of his pro-Fascist policy allowed the U.S. Naval Training Mission to lapse (1933). Largely because of pressure from the Peruvian admirals, the contract was renewed (1938). American inflence was very strong. Amerivan officer Cpt. William M/ Quigley was appointed appointed naval chief of staff (1940) and Chif of Staff. American influnce in the Navy continued throughout the 1940s. [Masterson and Ortiz, pp. 129-30.]
War with Ecuador
Peru's interest in foreign military assistance and advisers was not a random development. The country had historic greivances with its neigbors, especially Chile. Peru had lost extensive mineral-rich territory territory in the south to Chile as a result of the war of the Pacific (1879-82). Peruvian generals and admirals ever since had assumed that the war would be renewed to regain the lost territory. [Masterson and Ortiz, p. 130.] The Leticia event in the north raised the possiblity of a conflict with Colombia (1933). It would be with Ecuador that a war would be fought. Peru and Ecuador fought a war over a border dispute (1941). A peace treaty negotiated in Rio de Janeiro gave Peru control over most of the disputed terrtory, including the northern sections of the departments of Amazonas and Loreto. Ecuador never accepted this border and fire fights occurred occassinal for five decades. The border was not finalized for years. Ecuador continued to claim a large area of the Amazionian basin. Peru finally granted Ecuador access to the Amazon and turned over a small area to Ecuador. The countries are now finally at peace, although unexploded ordinance (UXO) is still a problem.
World War II Military Cooperation
Peru had a refinery producing aviation fuel. This and proximity to the Panama Canal, the United States was given permission to build an air base at Talara in northern Peru. the Peruvian Navy participated in patrolling the Pacific Panama Canal area. The Panama Canal was vital to the American war effort and the security of the Canal was a high priority for the United States.
Japanese Peruvians
The Peruvian Government detained some 2,000 Peruvian citizens of Japanese descent and transported them to the United States as part of the American Japanese internnment policy. The Government condiscated their land. They were ironically some of the most productive cotton farms in Peru, many located in the Cañete Vally near Lima. [Masterson and Ortiz, p. 128.]
Quinine
Beginning in Southeast Asia and the South Pacific, jungle warfare became a major feature of World War II in the Pacific. Thus large numbers of Allied and Japanese soldiers were exposed to and needed to be treated for malaria with quinine. Quinine was produced from the bark of the cinchona tree. This was a tree indugenous to thec eastern slopes of the Andes Mointains in Peru and to a lesser extent Bolivia. The medicianal properties were discovered by the Spanish (17th centurry). For two centuries the Spanish had a monopoly on quinine. Them British and Dutch adventuers smuggled seeds out of Peru (19th century). Profitable plantations were established in Java. These operations were more efficent than the Peruvian harvesting operation. As a result, quinine production in Peru declined and was largely abandoned. This changed dramatically after Pearl Harbor with the Japanese military offensive which seized the Dutch East Indies, including Java. This created a massive need for the Allies to find a new source of quinine. The one avilable source was Peru and Bolivia which were litterlly stripped bare of their cichona trees because of the high prices offered by the Allies. As the War progressed, the United States sunthenized uinine production. [Masterson and Ortiz, p. 128.]
Impact
Most of the countries benefitted from the increase demand for their export commodities. Peru benefitted less than most Latin American countries because of Government policies like domestic price controls. The Prados Administration decided to significantly increase duties on cotton exports. And the Government promoted the prouction of food crops on land that had been used to grow cotton. Thus the cotton acreage declined by 30 percent duringg the war. This significantly reduced cotton production and exports and thus export earnings.
State of Belligerancy (1945)
Although Peru did not declare war on Germany and Japan until 1945, declaring a state of 'belligerency' with Germany and Japan (February 12, 1945). This allowed Peru to participate in the San Francisco Conference establishing the United Nations.
Democracy
The Allied victory reinforced the trend toward a more democratic government.
Sources
Masterson, Daniel M. and Jorge Ortiz Sotelo in Thomas M. Leonard and John F. Bratzel. eds. Latin America During World War II (Rowman & Littlefield: 2007), 226p.
