Peru: Reforms & Credit

It was hard to argue with new President Fernando Belaúnde Terry's assessment of Peru's prospects as presented to Congress last week by his Premier: "The grave problems of our country are caused chiefly by low production levels, unjust distribution of wealth and income, the challenge of difficult and abrupt geography that hinders the development of our resources." It was just as hard to find fault with the aspirations of the program Belaúnde proposed to put things right:

>Agrarian reform that will provide for land expropriation and technical, economic and social support to help peasant farmers produce more.

>Broader economic planning to eliminate shortages, develop resources.

>Tax overhaul to assure that everyone now dodging his share of taxes starts paying up and to channel more money into "reproductive" investments and social services.

>Resurrection of cooperative communities, based on the old Inca empire system, with internal self-help programs to encourage peasants to help themselves.

> More housing, schools, highways and credit.

> An international policy stressing national sovereignty but sticking to the inter-American system; "intelligent" and increasing use of the Alliance for Progress; promotion of a Latin American Common Market.

None of these ideas came as a surprise, in a land that had just been through two disputatious election campaigns. All of the proposals were accepted in a three-way agreement made last month by Peru's two opposition parties, which together control Congress, and Belaunde's own coalition. The opposition did not want to seem eager to obstruct such obviously admirable aims.

Besides, Teodoro Moscoso, U.S. boss of the Alliance for Progress, arrived in Lima last week to meet Belaunde and to discuss Peru's request for $80 million in aid, based on reforms being made. Both the Chamber of Deputies and the Senate quickly approved the program. But the vote, said a spokesman for the opposition APRA Party, "merely extends to the government a line of credit for its intentions. Each of its projects will have to be debated together with similar projects presented by the opposition parties in order to seek a compromise."