Giving In

After a month of huffing and puffing, the U.S. gave up trying to blow Peru's military dictatorship down. The State Department professed itself satisfied that "the interim government has taken important steps on the road back to constitutional government in Peru." Thereupon it resumed both diplomatic relations and U.S. economic aid amounting to $83 million this year.

The junta, which came to power after upsetting one election, promised free elections next June, and said that foreigners would be allowed to observe them. Hoping to keep the junta honest, the U.S. is still withholding about $22 million in arms assistance scheduled for Peru. Also withheld: the presence of U.S. Ambassador James Loeb, who counseled the previous hard line on Peru, and would now be staying in Washington for what is called "extended consultation." Meaning that he is not going back to Lima.

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