Glnugreae of the ?tztti:a liflztahixtgtott, QE 211515 EZECC 5. 2u! -1 2? M5 January 19, 2011 . 1 GF The Honorable Hillary Clinton Secretary Department of State Washington, D.C. "lhe Honorable Timothy F. Geithner Secretary U.S. Department of Treasury 1500 Avenue, N.W. Washington, D.C. 20220 Dear Madam Secretary and Mr. Secretary: We are writing you to raise a serious concern relating to the treatment of a U.S.--based company by the Government of Peru. We understand that this company has received disparate treatment by that Govemment and is apparently the subject of a possible expropriation. We understand that the Department of State is aware of this situation and that it has already expressed its concem to the Government of Peru. As we understand it, Doe Run Peru owned by the Renco Group, a .S.-based holding company, owns a smelter in Peru that has been in operation for almost 100 years, though DRP has only operated the smelter since 1997. At the time that DRP acquired the smelter from the Government of Peru. DRP agreed to assume certain environmental upgrade costs associated with the smelter, and the Government of Peru assumed soil remediation costs for cleaning up the surrounding community. We understand that by 2009 DRP had invested $315 million in meeting the terms of the agreement, and, during this same period ot` time, and up until this date, the Government of Peru has spent nothing to fulfill its obligations. While DRP has proposed good faith negotiations, to date the Government of Peru has refused to enter such discussions. Though DRP has completed eight and a half of the nine environmental commitments contained in the 1997 agreement, DRP has indicated its willingness to take further and additional steps, but for whatever reason the Government of Peru refuses to enter such negotiations. Fit; PttG{'< We urge the Treasury Department and the State Department to work together on this matter it raises very serious issues. particularly since the provides major funding to the lnter?American Development Bunk that in tum is quite active in Peru. A expropriution would raise questions about the appropriateness of further TDB investment in Peru. We would hope that your two Departments would communicate on this matter with the TDB and express the concerns otthis Govemment and the consequences that might tlow from an expropriation by the Government of Peru. Sincerely_Vg, A I MVVK /d`/sift/24{ ce; The Horiorablc Luis Alberto Moreno President Inter--American Development Bank The Honorable Luis Valdivieso Ambassador Govenuncnt of Peru Rep. Donald Payne Rep. Danny Davis Rep. Bobby Rush Rep. Wuolsey Rep. Ed Towns Rep. Gary Ackerman Rep. Joe rowlcy Rep. Bill Pascrell