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The Peruvian Museum Council was an organization that supposedly represented the archaeological interests in Peru. In reality, it was a fictitious front designed by US Army Intelligence agent Musgrove to help flush out Indiana Jones, who was in Peru, and was needed by Colonel Musgrove.
In 1941, Indiana Jones discovered from his Quechuan porters that he was wanted by the Peruvian Museum Council for being a huaquero, or tomb robber. Jones, who had the proper permission to excavate the site of an Incan shrine, realized that there was no such thing as the Museum Council, and knew that someone else wanted him arrested. However, the Peruvian army had believed the wanted posters, and sought to apprehend the archaeologist.
After escaping a first time from the Peruvian army, Jones slipped across the Ecuadorian border to Puerto Bolivar, where he was captured by invading Peruvian forces. After escaping their custody, he ran into Musgrove who confirmed that the Peruvian Museum Council was just a ruse to help find Jones, who was needed to continue the quest for the Akashic Hall of Records. Jones was not happy with Musgrove's duplicity and never fully trusted him or his partner, Major Nichols.