Jet Deal Threatens Peru With Crisis: Cut in U.S. Aid Would be Blow To Economy
i LIMA,Oct. 7 ÛÓ PeruÛªs reported purchse of 12 supersonic Mirage fightarÛÓbombers from France could become the decisive factor in turning this countryÛªs current economic icrisis into outright disaster.</br></br>[ The controversy over the Ijots carries with it the likelihood of a drastic reduction in United States aid to the government of President Fernando Belaunde Terry. At least, it has ended for the foreseeable future any hope of a large U.S. loan to help tide Belaunde over his budgetary and balance of payments problems.</br></br>Moreover, neutral economic observers agree that a massive infusion of outside financial assistance s essential if Peru is to stave off rapid deterioration of its fiscal positpon. Without such aid, they forecast, it will be only a matter of months befoe the economy becomes paralyzed by a debased curency and mounting inflation.</br></br>This prospect stands in bleak contrast to the high hopes expressed only a short while ago for Peru and its liberal, reform-minded President. That the outlook has taken such a marked turn.for the worse is a tributbel largely to the power of the armed forces and their desire to make Peru the first Latin American country outside of Communist Cuba to possess supersonic iets.</br></br>Because of this power and the militaryÛªs long history of using it to intervene in politics, Belaunde is catering to the desires of the armed forces.