Statement About the United States-Peruvian Agreement on Investment Disputes

I AM pleased that this morning in Lima, Peru, the United States and the Government of Peru have concluded an agreement which resolves a number of investment dispute problems that have clouded relations between our two Governments for the past 5 years. This agreement is consistent with my deep concern about just treatment of United States investments overseas and constitutes another step in strengthening the mature partnership in this hemisphere to which I am strongly committed.

Investment disputes in recent years have unfortunately troubled our traditionally good relations with a few Latin American countries. We are gratified at the successful outcome of these particular negotiations. The best solution to these problems is for the parties involved to settle their disputes directly. But there is a clear need for a new approach--for a way to solve such problems without lengthy negotiations and without complicating good relations between friends. We should establish an effective, impartial mechanism to resolve these questions within the inter-American family. I have asked the Secretary of State to explore this possibility when he meets later this week with the Latin American and Caribbean foreign ministers in Mexico City.