Magazine content is available exclusively for TIME subscribers.Peru: Talking It Over
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),...
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