Research On The IPC Issue Between The United States And Peru

In 20 century,The International Petroleum Company had been the dominant producer, refiner, and retailer of petroleum products in Peru for more than 40 years. IPC Issue was the most important diplomatic contradiction between the United States and Peru and one of the typical international expropriation events. The major historical issue between the IPC and various Peruvian governments dated from the 1920 s and revolved around the company’s claim to the ownership of the subsoil at Peru’s La Breay Parifias oil fields in north.After 1957, IPC staffs called on a lot of citizens and made a protest movement against the U.S. economic predominance and its economic hegemony, demanding for a higher price of the exported oil, IPC case went into the first high tide.Then after many years of legal and political debate and because of Peru’s relying overwhelmingly on the U.S.,the Peruvian government of President Fernando Belaunde Terry in August of 1968 made to a generous compromise agreement with the United States-owned International Petroleum Company(IPC), regarding that the International Petroleum Company’s claims to ownership of some oil fields in northern Peru.However,almost immediately after the agreement was announced, the Peruvian armed forces used it as a pretext to depose Belaunde and the new military government of General Juan Velasco Alvarado then became the new leader of Peru. He totally expropriated all the Peruvian assets of the IPC,declaring that no compensation would ever be paid. This is the second high tide of the IPC case.Thereafter, IPC case officially put on the agenda of the diplomatic relations of US and Peru.After many years of sanctions and counter-sanctions on the desperate battle,on February 19, 1974,the United States and Peru concluded an agreement which called Green-De la Flor Valle Agreement and eliminated all then-pending expropriation disputes,including IPC case.The thesis is divided into four parts. The first part briefly reviews the origins of the IPC case, the first tide after 1957 and the domestic situation of Peru and its solution: Belaunde Agreement;The second part describes the the process of expropriating all the Peruvian assets of the IPC by the new military government of General Juan Velasco and America’s sanctions on Peru and Peru’s counter-sanctions;The third part discusses the result of these contradiction:Green-De la Flor Valle Agreement and its implications and influences;The last part analyses what kind of factors can influence the relationship between U.S. and Peru and makes a prediction about their future development.In a word, this article aims to reveal contradictions and struggles between the U.S.and Peru through analyzing the origins and the two tides of the IPC Case, and further analyzes the influence factors, existing mode and its development prospects in U.S.--Peru diplomatic policy of cooperation and contradiction.