1 3097 I C53 I T1 1922 H i /&JOHN 0LI1. • LIBRARY %»4 <^1 7acna-<^rica and the ^^SHINGTON «!\jEGOTIATIONS Vi* — Me CHILE-BOLIVIAN RELATIONS WASHINGTON 1922 rfe) OLIM F 30*11- Tl Compliments of the Embassy of Chile Washington INDEX Tacna-Arica — "Page What the Territory Is .... 5 Ports and Towns .... 5 Railway Lines ..... 6 Population ..... 7 Agricultural Products .... 7 Mineral Products .... 8 Map of South America showing Tacna-Arica . . 9 No Nitrates— Where Nature Draws the Line . . . 11 The Treaty of Ancon — The Pending Dispute about Tacna-Arica . . 12 The Washington Negotiations — Steps Toward a Settlement . . . . 14 President Harding's Good Offices ... 14 The Plenipotentiaries . . . . 15 Chile-Bolivian Relations — Truce and Treaty . . . . 16 Chilean Railway Construction . . . 17 Terms of the Treaty of 1 904 . . . 18 Bolivia's Claim to a Seaport . . . . 18 President Harding's Reply . . . 19 TACNA-ARICA WHAT THE TERRITORY IS Tacna-Arica, the territory in dispute between Chile and Peru, comprises an area, mostly desolate desert, of 9,000 square miles on the Pacific Coast of South America. The river Sama which rises in the cordillera of the Andes and enters the ocean at south latitude 17 57' forms the northern boundary; the southern limit, which separates it from the province of Tarapaca, is the Camarones river whose mouth is at south latitude 19 11'. On the east a line drawn through the cordillera separates the territory from Bolivia. The western boundary is the Pacific ocean. Arica, the port, is distant from Panama 2,161 miles and from Valparaiso 915 miles, by the steamer routes usually followed. The two departments of Arica and Tacna constitute the province of Tacna as administered by Chile. By far the greater part of the country is absolutely barren, destitute of both vegetation and animal life. The only regions capable of cultivation are the narrow valleys. The Lluta valley which is due to a small stream that comes out of the volcanic cordillera, is moist and enables crops to be raised in a restricted district back of Arica. The Azapa valley which adjoins it is hot and less productive. The dis- trict is marshy. The Tacna valley, which is the largest in the territory, lies along the course of the Tacna river. Three or four other very narrow valleys, a few miles back from the Coast, complete the area on which crops may be grown by means of irrigation. The mineral region extends from the slopes of the Andes to the summits. PORTS AND TOWNS Arica is the only port of call for steamers on the Tacna- Arica coast line. It is near the mouth of a small stream called the Azapa and is the one green spot along 1,500 miles of barren coast. It has a history that goes back to the six- teenth century. Sir Francis Drake and his sea rovers found a collection of Indian huts there in 1569. More recent [5] history brings it down to living memory. The U. S. frigate Wateree in 1866 was carried a mile inland by the huge tidal wave that engulfed her sister ship the Fredonia and the Peruvian warships. Arica lies under the beetling cliff known as the Morro and across from the rocky island of Alacran. The harbor is an open roadstead. It is the quarantine station for vessels entering Chilean ports from the north and is a cable station. Virtually all the commerce of the province of Tacna passes through Arica as well as a part of Bolivia's trade. The commerce for 1919 amounted in terms of Chilean currency to 10,185,000 pesos of which 3,745,000 pesos was repre- sented by imports and 6,440,000 pesos by exports. Con- verting the figures into United States currency at the established rate of $0,365 for one Chilean gold peso, $3,718,- 000 would represent the total commerce. The amount in 1918 was $4,172,000. The bulk of this commerce is with the United States through the Panama Canal. Tacna, about 40 miles from the coast, is the principal town of the province. It is the trade and financial center of the fertile agricultural region. It is also the headquarters of the Chilean civil administration. A large military and civil hospital is maintained at Tacna. The town lies at an elevation of 1,850 feet and has an agreeable climate. It is an attractive place and travelers who come ashore sometimes take advantage of the ship's stay to make the trip out to it and back by automobile. Sama is a hamlet at the mouth of the Sama river through which a slight coastwise traffic is carried on. Tarata in the north is a small place the population of which is made up largely of Indians. RAILWAY LINES Tacna-Arica has two railway systems. A line owned by a British company extends from Arica to Tacna, along the river valley, a distance of 39 miles. This was one of the first railways built in South America. It was begun in 1851 and completed in 1857. The principal line is the Arica-La Paz railway. This was [6] built by the Chilean government under a treaty agreement with the Bolivian government. It is the shortest line from the Pacific Coast to the interior and is 273 miles long. Of this railway 145 miles are in Bolivian territory. It crosses the Andes on the frontier at an elevation of 13,120 feet and joins with the Bolivian lines near Viacha. It gives an outlet to Bolivian copper, some tin, wool and other products and an inlet for much of the merchandise imported by Bolivia. This railway has made possible the development of the mineral resources of the province of Tacna and particularly the sulphur deposits. POPULATION The number of inhabitants in the province of Tacna is between 39,000 and 40,000. More than one-half of these are in the towns and villages. The town of Tacna has a population of 12,000. Arica has 4,000. The department of Tarata is the most sparsely settled section, having 5,000 inhabitants. The population of the province of Tacna has increased about 10,000 since it came under the control of Chile. In 1885 the Chilean census showed 29,500 inhabit- ants. AGRICULTURAL PRODUCTS Agricultural products of the province are those of the temperate and semi-tropical climates. They are raised principally on irrigated lands and supply the nitrate zone situated further south. The larger part of the crops are grown in the valley of which the town of Tacna is the center. This town actually is an oasis in the desert. This district owes its fertility to the water seeping from the mountains which forms small streams and gives moisture enough to raise crops of corn, alfalfa, potatoes and other vegetables and some citrus fruits, such as oranges. Olives also are grown. Sugar cane on irrigated land is a prospective agricultural industry on a small scale, as is cotton. The total agricultural area of Tacna-Arica as given in the Statistical Abstract of Chile for 191 8, was approximately 127,000 acres, of which about 30,000 acres were irrigated. Of this acreage 1,100 acres were in cereals and the remainder [7] in vegetables and miscellaneous crops. The area in alfalfa was 6,900 acres. Vineyards comprised 150 acres. The figures for 1919 showed smaller areas under cultivation. MINERAL PRODUCTS Mineral products are limited. The mineral region, so called, extends from the coast up the slopes of the Andes. The principal mineral is sulphur. Small deposits of copper are worked for the ore at Chaquielumpie near the Bolivian border. There are also common salt, lime, borax and molybdenum. Traces of petroleum have been reported. Borax deposits are south of Arica in the region back from the coast at Cape Lobos. Sulphur is the only mineral product which up to the present time has been found to be worth development on a commercial scale. The deposits of sulphur are on the slopes of Mount Tacora at an altitude of 13,000 feet and upwards. Their exploitation in a region previously inaccessible was made possible through the construction by Chile of the Arica-La Paz railroad. The Tacora sulphur deposits are situated in Mount Tacora and Mount Chupiquiha, 9 miles from Ancara, the nearest station on the railway. The Board of Trade Journal, the official publication of the British government, in its issue of May 1, 1919, gave the following summary of the mineral production of Tacna- Arica in 19 16: — Product Sulphur Copper ores Salt Ores containing gold, silver and copper 91 Ores containing molybdenum Ores containing tungsten . . . Gold dust Gold contained in copper ore Silver contained in copper ore 144,315 grams [8] Value in Chilean Pesos 8,579 metric tons 1,201,060 722 metric tons 171,373 2,450 metric tons 85,75o 6,221 kilos 1,652 kilos. . . . 102 kilos I 93>95° 16,520 1 40 9,340 grams 11,049 2,165 grams .... !>949 5,772 MAP OF SOUTH AMERICA SHOWING TACNA-ARICA [9] Later information about the mineral production of Tacna- Arica as gathered from official sources are thus described in a report of the American Consul at Tacna under date of July 31, 1920:— "The following table, compiled from the Statistical Annual, shows the amount in metric tons, and the value in U. S. gold of minerals produced in Tacna province during 191 8, compared with the value of the total production of all Chile as regards the same minerals. In the original pub- lication, values are given in Chilean gold pesos which are here changed to U. S. gold at the rate of $0,365 for one Chilean gold peso, this being the standard rate: — Tacna Province Per cent Metric All Chile in Minerals Tons Value Value Tacna Copper ore ex- ported 361.000 $54,801 Gold, silver and copper ore ex- ported 605.059 84.560 Total in copper ore exported.. . 966.059 $139,361 $48,457,613 0.287 Molybdenum.... 34.988 29.454 29.454 100.000 Gold in copper ore exported 0.001 356 795.248 0.044 Silver in copper ore exported .. 0.072 1.843 1.369.802 0.134 Sulphur I 3- II 7 766.033 1.142.129 67.070 Common Salt . . . 1.243 15.879 696.697 2.279 Lime 300 1.642 578.943 0.283 Samples 0.163 2 5 2 953 26.442 $954,820 $53,070,827 1.799 "The value of the total mineral production of Tacna prov- ince for 1918, $954,820, is 0.338 per cent of $281,864,589, the value of the total mineral production of all Chile for the [10] same year. Tacna province has 0.995 P er cent °f ^ e total population, and 3.105 per cent of the total area of all Chile. It will thus be seen that though the area of the mining claims in Tacna province, being 3.024 per cent of the area of the mining claims of all Chile, bears about its normal relation to all Chile, the value of the mineral production of the prov- ince is not relatively important. Sulphur is the only mineral the provincial production of which is economically impor- tant for Chile. In 1918, 13. 117 metric tons of sulphur, valued at $766,033 U. S. gold, were produced from the Tacna sulphur mines. This amount was more than 67 per cent of the total production of Chile, the remaining ^3 pe r cent being produced by the Province of Antofagasta. During 1 91 8, only about 15 metric tons of sulphur were imported into Chile, while the exportations reached 6.408 metric tons valued at $374,239 U. S. gold." NO NITRATES WHERE NATURE DREW THE LINE There are so far known no nitrates of soda or saltpeter in Tacna-Arica. This mineral, so essential as a fertilizer for the world's agriculture and as a chemical base for explosives, has not been found in the disputed territory. Small quan- tities have been imported at various times. The American Consul in his official report, it will be noted, makes no men- tion of nitrates. Mining companies which have explored the province with the purpose of uncovering its mineral resources and with a special view to nitrate deposits, have found none. Scientific surveys made under government direction, have given the same negative results. Nature seems to have drawn the line of the nitrate zone farther south. In a pamphlet on "The Great Nitrate Fields of Chile," published by the Pan American Union, this statement is made: "The saltpeter, or nitrate, zone embraces the extension comprehended between the Camarones River in south latitude 19 11' on the north and parallel 27 ° to the port of Caldera on the south, a distance of 450 miles from one end to the other." While the Camarones River flows into the Pacific at south latitude 19 11', its course from its source in the Andes is generally in a southwesternly direction so that most of the Tacna territory is above the nineteenth parallel. Although Tarapaca which adjoins Tacna on the south, is rich in nitrates they have not been found in the north- western part of that province, which is separated from Tacna by the Camarones River. Pisagua, south of Arica, is the most northern nitrate port. The Nitrate Railway of Pisagua runs south in traversing the region which furnishes it the nitrates as freight. The latest authoritative scientific information on the geographic distribution of the nitrates places the northern limit' somewhat farther south of the Tacna frontier than previously given. In the World Atlas of Commercial Geology published in 1921 by the United States Geological Survey, this statement is made: — "Sodium nitrate is found in commercial quantity only on the west coast of South America, between latitudes 19° 30' and 26° S. The region is now embraced in the provinces of Tarapaca and Antofagasta, Chile, and com- prises an area annexed from Peru and Bolivia at the end of the war of 1879-18 83. The deposits lie on the lower side of the westward-sloping desert plain, between the west slope of the Andes and the low coastal range, 15 to 100 miles from the sea. The plain extends from north to south for about 450 miles and ranges in height from 3,000 to 13,000 feet." THE TREATY OF ANCON THE PENDING DISPUTE ABOUT TACNA-ARICA Tacna-Arica has been under the administration of Chile since 1883 as a consequence of what was known as the war of the Pacific between Bolivia and Peru on one side and Chile on the other. The Treaty which put an end to the war takes its name from the little port of Ancon, thirty miles from Lima, where it was negotiated and concluded in October, 1883. It was ratified in March, 1884. Under this Treaty the province of Tarapaca was ceded in perpetuity to Chile by Peru. The provinces of Tacna and Arica were continued under the sovereignty of Chile, which had occupied them during the war, until a plebiscite could be held at a date ten years forward. The text of the stipulation in regard to Tacna and Arica and the proposed plebiscite is in Article 3 of the treaty which is as follows: — "The territory of the provinces of Tacna and Arica, bounded on the North by the River Sama, from its source in the Cordilleras bordering Bolivia to its entrance into the sea; on the South, by the ravine and river of Cam- arones; on the East, by the Republic of Bolivia; and on the West, by the Pacific Ocean, shall continue in the pos- session of Chile, subject to Chilean legislation and au- thority, for a period of ten years from the date of the rati- fication of the present treaty of peace. At the expiration of that term, a plebiscite will decide, by popular vote, whether the territory of the provinces above-mentioned remains definitely under the dominion and sovereignty of Chile or continues being a part of Peru. That country of the two to which the provinces of Tacna and Arica thus remain annexed shall pay to the other ten millions of pesos of Chilean silver or of Peruvian soles of equal weight and fineness. "A special protocol, which shall be considered an integral part of the present treaty, will determine the form in which the plebiscite is to be carried out and the terms and time for the payment of the ten millions by the nation which remains the owner of the provinces of Tacna and Arica!' When the ten years period was about to expire differences arose regarding the special protocol of the Treaty, and the special protocol for the pebliscite. In consequence of these differences there was no plebiscite in 1894 and there has been none since. The controversy at times has seemed to be nearing a settlement, but the solution has been balked by various circumstances. The causes alleged on both sides have ceased to be important in view of the steps recently taken to secure a settlement. These may be briefly told. [•3] THE WASHINGTON NEGOTIATIONS STEPS TOWARD A SETTLEMENT In December, 1921, the Chilean Government through its Foreign Office, submitted to the Peruvian Government a proposition for the carrying out of the plebiscite provided by Article 3 as given above. The Peruvian Government did not reject the proposition outright, but suggested a general arbitration covering the whole question growing out of the war of the Pacific. This was unacceptable to Chile on account of it not being possible to revise a treaty which was in force and fulfilled in all its provisions except the one men- tioned. This seemed to put an end to the direct negotiations. At this point the friendly influence of President Harding was exerted successfully to bring the two countries to con- tinue the negotiations in Washington . In January, Secretary Hughes, by instruction of the President, sent identical notes through the American Embassies at Santiago and Lima inviting the governments of Chile and Peru to send pleni- potentiaries to Washington for a Conference with a view to securing a settlement of the unfulfilled clauses of the Treaty of Ancon. PRESIDENT HARDING'S GOOD OFFICES. The text of the American Note to the two governments is as follows: — "The Government of the United States, through the courtesy of the Ambassadors of Chile and Peru in Wash- ington, has been kept informed of the progress of the recent negotiations, carried on directly by telegram between the Governments of Chile and Peru looking toward a settlement of the long-standing controversy with respect to the unfulfilled provisions of the treaty of Ancon. It has noted with the greatest pleasure and satisfaction the lofty spirit of conciliation which has ani- mated the two Governments and that as a result of the direct exchanges of views the idea of arbitration of the [ H] pending difficulties is acceptable in principle to both. It has also taken note of the suggestion that representatives of the two Governments be named to meet in Washing- ton with a view to finding the means of settling the diffi- culties which have divided the two countries. Desiring, in the interest of American peace and con- cord, to assist in a manner agreeable to both Governments concerned in finding a way to ending this long-standing controversy, the President of the United States would be pleased to welcome in Washington the representatives which the Governments of Chile and Peru may see fit to appoint to the end that such representatives may settle, if happily it may be, the existing difficulties, or may arrange for the settlement of them by arbitration." THE PLENIPOTENTIARIES Both governments responded favorably, accepting the suggestion of the President and naming plenipotentiaries. Chile named Senores Carlos Aldunate Solar and Luis Izquierdo. Seflor Carlos Aldunate Solar has served for twelve years in the Chilean Senate, part of the time as presiding officer, and has filled other official positions. He is at present a member of the Council of State. He is an eminent lawyer. Seflor Izquierdo is at present Chilean Minister in Buenos Aires. He has served in the Chilean Congress, has been Minister of Foreign Affairs and of the Interior, and has twice visited the United States on official missions for his government. His latest visit was as chairman of the dele- gation to the Pan American Financial Conference at Wash- ington in January, 1920. Peru named Senores Hernan Velarde and Meliton Porras. Seflor Hernan Velarde is a well known diplomat and writer who has filled various positions of responsibility in the home government of Peru, as well as in foreign representa- tion. He is an authority on diplomatic subjects and is at present Peruvian Minister to the Argentine Republic. He also has served as Minister to Colombia and as Minister to Brazil and as First Assistant Secretary of Foreign Affairs. [15] Seiior Meliton Porras, is an official of high standing who has occupied various posts in the Peruvian Government. He is an authority on international affairs and has served as Minister of Foreign Relations on several occasions. He was Minister to Chile from 1896 to 1898, later was Minister to Ecuador and after that Minister to Bolivia. He has been a deputy in Congress and while Minister of Foreign Affairs, President of the Council of Ministers. The meeting of these plenipotentiaries gives promise that a means will be found for solving the controversy of nearly forty years. CHILE-BOLIVIAN RELATIONS TRUCE AND TREATY. Bolivia is not a party to the Washington negotiations. The reason is that the Bolivian question has no direct rela- tion to the question at issue between Chile and Peru. In 1884, following the war of the Pacific, Bolivia and Chile signed a Truce. It was so called because it was not a complete treaty of peace and did not make a final settlement of the cession of territory. But under it the entire Bolivian littoral remained under Chilean sovereignty, as it was not possible to break the continuity of the Chilean coast after the definite cession in 1883 of Tarapaca by Peru. That is, there was no break in the Chilean seacoast from Tarapaca southward. In 1904, however, twenty years after the sign- ing of the Truce pact, a final treaty was signed by both countries. In this treaty Bolivia definitely and finally ceded to Chile the province of Antofagasta with its littoral, which in actuality had been Chilean territory since the end of the war in 1883. By one of the provisions of this treaty Chile granted to Bolivia the right to set up custom agencies in the ports she might designate for her trade. Bolivia availed herself of this privilege and established custom houses at Arica and Antofagasta. Her control of these custom agencies is complete and she exercises sov- ereign powers over them. [16] CHILEAN RAILWAY CONSTRUCTION. An important feature of the treaty of 1904 was the agree- ment by Chile to construct at her own cost a railroad from Arica to connect with the Bolivian lines, thus giving Bolivia the shortest and most direct outlet to the Pacific at Arica. Bolivian commerce on the Pacific Coast in the earlier part of the century and up to about 1875 was carried on almost entirely by way of Arica and Tacna. The port of Arica owed its existence to that commerce and to the small valleys of Tacna which were useful for grazing purposes by the pack-trains of llamas, mules and burros that carried products from abroad into the Bolivian highlands and brought out Bolivia's products. Moreover, Arica was the nearest point to Bolivia's populated territory. In 1875 and 1876 the Southern Railroad of Peru was con- structed. It ran from Mollendo to Lake Titicaca. Small steamers made the transit of 150 miles across the Lake. The building of this railway caused much of the freight to be diverted from Arica. Later, in the nineties, the railroad from Antofagasta to Oruro was begun by a Chilean nitrate company and completed by an English company. Bolivian commerce also availed itself of this railway, so that Arica was entirely deprived of the traffic for which it formerly has been the inlet and the outlet. Still later the Antofa- gasta line was extended from Oruro to La Paz by United States capitalists. The Arica-La Paz railroad, built by Chile at a total cost of $25,000,000, restored much of this traffic because it fur- nished a short line in competition with the much longer routes by way of Mollendo and Antofagasta. The distance from La Paz to the coast by the Arica-La Paz line is 273 miles. By the Mollendo route, including 150 miles ferriage across Lake Titicaca, it is 520 miles; by the Antofagasta route, 711 miles. The provision for railway construction was contained in the following clauses of Article 3 of the treaty of 1904: — "In order to extend the political and commercial rela- tions of both republics, the high contracting parties agree to unite the port of Arica with the La Paz plateau, by a [«7 J railroad which the government of Chile will construct at its own cost, within one year counting from the date of ratification of this treaty. Ownership of the Bolivian section of this railroad will be transferred to Bolivia at the expiration of fifteen years, counting from the date when the railroad shall be completed." The railway was completed in 1913 and in 1928 the Bolivian section will come into possession of Bolivia as a free gift. TERMS OF THE TREATY OF 1904. The treaty with Bolivia was signed in October, 1904, at Santiago by Emilio Bello Codecido, Minister of Foreign Relations, and Alberto Gutierrez, Bolivian Minister to Chile. The Treaty in the first Article declared that it was to re-establish the relations of peace and friendship between Bolivia and Chile, thereby putting an end to the period allowed by the Truce Pact. Bolivia ceded to Chile absolute and perpetual control of the territories occupied by Chile under the pact. Chile also recognized the full and free right in perpetuity of Boliva to commercial transit through her territory and ports of the Pacific. BOLIVIA'S CLAIM TO A SEAPORT. Bolivia now demands a seaport of her own. With this end in view she sought to become a party to the Chile- Peruvian negotiations. Chile and Peru both refused to agree to this claim. The Chilean government stated that it had accepted the invitation of the Washington Govern- ment to a Conference to deal with unfulfilled clauses of the Treaty of Ancon and that these affected only Chile and Peru. In other words, the position taken by Chile was that the Tacna-Arica question was one primarily for Peru and Chile. Bolivia appealed to Washington to be included in the negotiations. In the note cabled from La Paz late in Jan- [18] uary to President Harding, President Saavedra of Bolivia, after reciting Bolivia's contention, asked that she be con- sidered as a constituent part in solving the case of the Pacific. He maintained that the controversy affected Bolivia as a victim of the war of the Pacific and that it could not be settled definitely and with justice unless Bolivia's loss of a seacoast is repaired. President Saavedra's note further declared that the treaty of 1904 with Chile, whereby Bolivia recognized the sovereignty of Chile over the lost seacoast, was not Bolivia's free, spontaneous act, but a decision made under duress. PRESIDENT HARDING'S REPLY. President Harding in his reply to the Bolivian Govern- ment explained that it was impossible for him to take the initiative requested because the discussion of the questions at issue between the governments of Peru and Chile was a matter for the exclusive consideration of the two govern- ments concerned. The text of his reply is as follows: — "I have read with great interest your Excellency's tele- gram of January 21st, eloquently expressing your country's aspiration to secure an outlet to the sea which was lost as a consequence of the War of the Pacific, and of its desire to secure a modification of the terms of the treaty entered into with the Republic of Chile in 1904. "Your Excellency asks that in the hearing given to the dispute that Peru and Chile wish to submit to me, I will listen to the claims of Bolivia and call your country so that it may be considered as a constituent part in solving the case of the Pacific. In reply, I beg to explain to your Excellency that the invitation which I had the honor to address to the Governments of Peru and Chile does not contemplate a hearing before me or before the Govern- ment of the United States of the matters in controversy between these Governments. "Having noted in the telegrams recently exchanged directly between the Governments of Chile and Peru that the idea of a meeting of representatives of the two [19] countries for the purpose of reaching a settlement of the difficulties growing out of the unfulfilled provisions of the treaty of Ancon, either directly or by arbitration, seemed acceptable in principle to both, I invited them to send representatives to Washington for this purpose. "This invitation, I am happy to state, has been accepted, and I am informed that representatives of the two countries will soon be appointed to meet in Wash- ington for the purpose of arriving at a settlement, by direct negotiations between themselves. "Your Excellency will readily understand from the foregoing that the inclusion of Bolivia in the discussion of the questions at issue between the Governments of Peru and Chile is a matter for the exclusive consideration of the two Governments concerned, and that in the circum- stances I am precluded from taking the initiative you suggest. "I deeply appreciate the friendly sentiments of your Excellency's telegram and beg to assure your Excellency of the great interest of the Government and the people of the United States in the welfare and prosperity of the country over whose destinies you so worthily preside." [20] CORNELL UNIVERSITY LIBRARY 924 050 903 438