Ab the same time Japan has increased purchases, In 1940, Peruvian cotton exports to Japan went up to 297,467 quintals from 27,235 quintals in 1988. Tu the first months of this year, 800,000 quintals left unsold in Peruvian ports at the close of 1940 have been reduced to 510,000 quintals, almost all to Japan.
Here in Callao, Peru's principal port, there has been observed close Jai Japanese boats collected ce-operation between Germans and
Cotton in lesser Peruvian ports, unloaded it here and transferred it to four Nazi ships refugeed outside the Callao breakwater. These ships fled atthe time the United States was Hours, They were reported headed izing Axis boats in Americen har-
for Japan when three of them, stopped, were set afire. It has been reported by a highly reliable source that the cotton the Japanese placed on. these ships had been bought by a German firm.
The situation is one of the reasons for renewal of talk of a reciprocal trade agreement between Peru, and the United States. Cotton, sugar and the $80,000,000 debt Peru. owes the United States have been the stumble ing blocks to such a pact in the past. Peru is not yet ready to pay, the debt, although she says she wants to as soon as she is able. The United Siates is not yet ready to absorb Peruvian cotton although it has been buying sugar under the unfilled Philippine quota at the end of each year, and has given encouragement to the greatest Peruvian dollar export—oil—by promising unlimited fuel to England.
Text read from the printed page and cleaned; old type leaves the occasional error.