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MESSAGE 
 
 PROM THE 
 
 PRESIDENT OF THE UNITED STATES, 
 
 TRANSMITTING 
 
 FA^ P E R S 
 
 RELATING TO 
 
 THE WAR IN SOUTH AMERICA. 
 
 ATTEMPTS TO BRING ABOUT A PEACE, 
 
 SUBMITTED TO 
 
 THE SENATE, JANUARY 26 AND 27, 1882, 
 
 AND TO THE 
 
 HOUSE OF REPRESENTATIVES, JANUARY 26 AND FEBRUARY 17, 1882. 
 
 IN REPLY TO 
 
 RESOLUTIONS OF THOSE BODIES, CALLING TOR CORRESPONDENCE TOUCHING THE 
 
 EFFORTS OF THIS GOVERNMENT TO BRING ABOUT PEACE BETWEEN 
 
 CHILI, AND PERU AND BOLIVIA, AND TOUCHING CLAIMS 
 
 AGAINST OR CONTRACTS RESPECTING EITHER 
 
 OF THE BELLIGERENT GOVERNMENTS. 
 
 WASHINGTON: 
 
 GOVERNMENT PRINTING OFFICE. 
 1882. 
 
 3 
 
UNIVERSITY) 
 
 LiBRARVy/ 
 
MESSAGE 
 
 PROM THE 
 
 PRESIDENT OE THE UNITED STATES, 
 
 TRANSMITTING, 
 
 In response to Senate resolution of December 13, 1881, a report oj the Sec- 
 retary of State, and accompanying papers, towelling affairs in or between 
 Peru and Chili. 
 
 January 26, 1882. — Bead and referred to the Committee on Foreign Relations. 
 
 To the Senate of ihe United States : 
 
 I transmit herewith a report of the Secretary of State, and accom- 
 panying papers, furnished in response to the resolution of the Senate of 
 the 13th ultimo, calling for correspondence touching affairs in or between 
 Peru and Chili. 
 
 CHESTER A. ARTHUR. 
 Executive Mansion, 
 
 Washington, January 26, 1882. 
 
 Department of State, 
 Washington, January 24, 1882. 
 To the President : 
 
 The Secretary of State, to whom was referred the resolution of the 
 Senate of the 13th ultimo, requesting the President, " if, in his opinion, 
 it be not incompatible with the public interest, to communicate to the 
 Senate all the correspondence between the Government of the United 
 States and its diplomatic agents in Peru and Chili, respectively, oc- 
 curring since the 1st day of April, 1879, touching public affairs in or be- 
 tween those State's, and also such other correspondence and information 
 on the subject as may be in the possession of the Executive Depart- 
 ment," has the honor to lay before the President the full correspondence 
 in response to that resolution. 
 
 The resolution calls for all the correspondence, and the Secretary of 
 State is not aware of any correspondence, whether diplomatic or of a 
 miscellaneous character, touching the subject, on the flies of the De- 
 partment during the period indicated in the resolution, which is not 
 S. Ex. 79 1 
 
II AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 submitted herewith. Where asterisks indicate a hiatus in the copy, 
 they represent, so far as he is aware, only parts of papers which are 
 omitted because referring to subjects in no way pertinent to the resolu- 
 tion. In many cases asterisks stand in the place of names. In some 
 instances this has been done because, in the judgment of the President,, 
 it would have been incompatible with the public interests to disclose 
 the names of representatives or members of foreign governments. In 
 other cases this has been done because the names of persons have been 
 given in papers written by persons holding no official position and with- 
 out, so far as appears from the files of the Department of State, any 
 sufficient authority on the part of the writers to use such names ; such 
 unofficial papers themselves are, nevertheless, sent, because they seem 
 to come within the call of the Senate, having been received by persons 
 holding official positions under this Department. 
 
 With these exceptions and explanations, the papers herewith sub- 
 mitted are a full compliance with the terms of the resolution of the Senate. 
 
 Respectfully submitted. 
 
 FEED'K T. ERELINGHUYSEN. 
 
LIST OF PAPERS. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. V 
 
 List of gapers relating to the war in South America and the attempts to bring about a peace. 
 
 1. BOLIVIA. 
 
 From whom and to whom. 
 
 Mr. Evarts to Mr. Pettis 
 (No. 12). 
 
 1879. 
 June 23 
 
 Same to same (No. 13) . 
 
 Mr. Pettis to Mr. Evarts 
 (No. 15). 
 
 Same to same (No. 16) 
 
 Mr. Evans to Mr. Pettis 
 (No. 17). 
 
 Mr. Seward to Mr. Pettis 
 (No. 19). 
 
 Same to same (No. 21) ... 
 Mr. Pettis to Mr. Evarts. 
 
 Same to same (No. 22) . 
 
 Same to same (No. 23) . 
 Same to same (No. 24) . 
 
 Mr. Evarts to Mr. Pettis 
 (No. 25). 
 
 Mr. Pettis to Mr. Seward 
 (No. 31). 
 
 Mr. Pettis to Mr. Evarts 
 (No. 35). 
 
 Mr. Pettis to Mr. Seward 
 (No. 3G). 
 
 June 25 
 
 June 28 
 
 July 2 
 Aug. 8 
 
 Aug. 11 
 
 Aug. 18 
 Aug. 23 
 
 Aug. 23 
 I 
 
 Aug. 25 
 Aug. 25 
 
 Sept. 19 
 
 Sept. 25 
 Sept. 29 
 
 Sept. 30 
 
 Privateering against Chilian property in neutral 
 vessels: authorization of, by Bolivia, and pro- 
 
 Eosed fitting out of privateers in the United 
 tates by Bolivian agents ; instructed to inform 
 Bolivia that treaty of 1858 exempts from cap- 
 ture enemy's property on board neutral vessels, 
 and that law of the United States prohibits fit- 
 ting out within its territory "of expeditions 
 against a country with which United States is 
 at peace. 
 
 Privateering projects of Bolivia: refers to De- 
 partment's No. 12 and incloses Treasury regula- 
 tions for the prevention of violation oi United 
 States neutrality laws by privateers in the in- 
 terest of Bolivia, 
 
 Peace: efforts of Mr.Pettis in behalf of; terms 
 upon which Bolivia will submit to arbitration ; 
 offer of mediation by Brazil and some European 
 power has been declined. 
 
 Peace : Peruvian minister calls on Mr. Pettis and 
 expresses desire of Peru for. 
 
 Mediation of Colombia for cessation of hostilities 
 between Bolivia and Chili : instructed to inform 
 Colombian envoy who will visit La Paz to proffer 
 such mediation, of the friendly solicitude of the 
 United States as to the result of his mission. 
 
 Neutrality of the United States during war be- 
 tween Bolivia and Chili : course of Mr. Pettis 
 in assuring minister for foreign affairs of, ap- 
 proved; reply to No. 13. 
 
 Peace: action reported in his No. 15 in behalf of, 
 approved; position of United States on the sub 
 ject of mediation. 
 
 Peace between the South American belligerents: 
 efforts of Mr. Peltis for, would have succeeded 
 had it not been for prejudicial action of Mi'. 
 Fisher, bearer of dispatches ; newspaper articles 
 indicating that Mr. Fisher has offered to Peru 
 the mediation of the United States and is about 
 to offer same to Chili inclosed. 
 
 Peace : reports his efforts to bring about same ; 
 Chili ready to enter into arbitration with Bolivia 
 on basis proposed by Mr. Pettis, but reserves 
 decision with respect to arbitration of her dis- 
 pute with Peru ; Mr. Pettis in his efforts for 
 peace visited Lima and Santiago and conferred 
 with the authorities there ; reasons for his course. 
 
 Privateering: Bolivia's alleged authorization of ; 
 note of inquiry and admonition to foreign office 
 inclosed. 
 
 Privateering: Bolivia's alleged authorization of; 
 note to foreign office transmitting Treasury 
 regulations for prevention of violation of neu- 
 trality laws of the United States by Bolivian 
 piivateers inclosed ; reply to No. 13. 
 
 Conduct of minister in conferring with Presidents 
 of Peru and Bolivia and giving rise to a suppo- 
 sition that he was on a special mission to Peru, 
 Chili, and Bolivia : explanation requested. 
 
 Documents vindicative of Bolivia's cause: reports 
 having expressed thanks of United States to 
 Government of Bolivia for same ; reply to No. 18. 
 
 Peace between the South American belligerents: 
 Colombia's offer of, mediation rejected; media- 
 tion of no other power but the United States de- 
 sired by the belligerents, who would accept such 
 mediation at »nce if tendered. 
 
 Peace question : the belligerents expect mediation 
 of the United States, and desire bo other, and 
 wonder at delay on part of the United States, 
 but are too proud to ask United States to me- 
 diate; they will be satisfied with any action the 
 United States may take to bring about peace, 
 and Mr, Pettis urges that steps he taken for 
 pacification of the belligerents; position which 
 Mr. Pettis has assumed with respect to peace; 
 it is understood perfectly in Bolivia. 
 
VI AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 1. BOLIVIA— Continued. 
 
 From whom and to whom. 
 
 Subject. 
 
 Mr. Hunter to Mr. Pettis 
 (No. 26). 
 
 Mr. Pettis to Mr. Seward . 
 
 Mr. Pettis to Mr. Evarts 
 (No. 41). 
 
 Same to same {No. 42) 
 Same to same (No. 43) 
 Same to same (No. 44) 
 
 Mr. Evarts to Mr. Adams 
 (No. 3). 
 
 Mr. Adams to Mr. Evarts 
 (No. 3). 
 
 Same to same (No. 4) 
 
 Same to same (No. 13) . 
 
 Mr. Evarts to Mr. Adams 
 (No. 10). 
 
 Mr. Adams to Mr.' Evarts 
 (No. 2-2). 
 
 Same to same (No. 26) . 
 
 Same to same (No. 27) 
 Same to same (No. 28)- 
 Same to same (No. 29) . 
 
 Same to same (No. 32) . 
 
 1879. 
 Oct. 1 
 
 Oct. 4 
 
 Oct. 7 
 
 Oct. 8 
 Oct. 9 
 Oct. 15 
 
 1880 
 Apr. 19 
 
 June 14 
 
 June 22 
 
 July 14 
 
 Aug. 2 
 Aug. 5 
 
 Sept. 2 
 
 Sept. 2 
 Sept. 4 
 Sept. 14 
 
 Oct. 4 
 
 Visit of Mr. Pettis to Santiago and Lima : Depart- 
 ment not prepared to either approve or disap- 
 prove his unauthorized and rash experiment; 
 if peace should result from it the United States 
 would of course rejoice; this government does 
 not intend to urge peace in disparagement of 
 belligerent rights, and does not tender its good 
 offices for peace, but will use them for that pur- 
 pose if called upon by the belligerents ; state- 
 ments in Chilian press alleging misrepresenta- 
 tion of our policy by Mr. Pettis regarded as un- 
 founded. 
 
 Efforts of Mr. Pettis for peace : believes they will 
 bear fruit; kindest feelings entertained for him 
 by the belligerents on account of said efforts ; 
 newspaper articles respecting his mediatory 
 efforts in Chili and Peru. 
 
 Mediation of the United States would be accept- 
 able to Chili : reports conference at foreign office 
 and transmits correspondence ; Bolivia and Peru 
 desire mediation of United States ; would ac- 
 cept it if offered, but they cannot formally ask 
 it ; basis of such mediation would have to be 
 clisoccupancy of Bolivian territory by Chili ; bel- 
 ligerents apprehend early armed foreign inter- 
 vention. 
 
 Boundary : position which the belligerents have 
 occupied towards each other in regard to bound- 
 ary ; suggestion as to territorial basis for medi- 
 ation ; maps inclosed. 
 
 Privateering: Bolivian decree authorizing the 
 same, exempts vessels carrying United States 
 flag from seizure ; note from foreign office in- 
 closed ; reply to No. 12 ; vindication of the decree. 
 
 Privateering: Bolivia's authorization of; note 
 from foreign office acknowledging receipt of the 
 United States Treasury circular respecting en- 
 forcement of neutrality laws of United States 
 inclosed. 
 
 Prisoners of war: exchange of, between Chili 
 and Bolivia; authorized to do what he can to 
 bring about such exchange. 
 
 Arrival at Lima: facilities afforded him by the 
 United States steamer Alaska; political situa- 
 tion ; Mr. Christiancy influential. 
 
 Political: Campero elected President of Bolivia 
 notwithstanding his defeat by the Chilians at 
 Tacna; war spirit strong in Bolivia; proposed 
 unification of Peru and Bolivia. 
 
 Proposed federation of Peru and Bolivia unpopu- 
 lar; hopes and rumors as to intervention by 
 United States; unsatisfactoriness of General 
 Campero as President ; appointment of Mr. Ca- 
 brera as minister to the United States. 
 
 Pobcy of the United States regarding peace ; in- 
 closes correspondence with minister to Peru 
 setting forth same. 
 
 Political: prospects as to invasion of Bolivia and 
 as to peace; rumored arrival of war vessels 
 from the United States for use of Peru revives 
 hopes of Bolivia. 
 
 Mediations Bolivia willing to accept mediation of 
 United States in form proposed by United States 
 minister at Santiago, but defers acceptance until 
 she can hear from Peru; correspondence in- 
 closed ; negotiations reported. 
 
 Confederation movement as between Peru and 
 Bolivia: condition of; peace question 
 
 Mediation of the United States : formal and unre- 
 served acceptance of, by Bolivia 
 
 Mediation of United States: acceptance of. bv Bo- 
 livia; rejection of offer of mediation b| Euro- 
 pean powers ; preparing to attend conference at 
 Arica ; correspondence inclosed 
 
 Mediation: disposition of the allies to defer or 
 abandon negotiations in consequence of the 
 seizure by the Chilians of a sugar estate in the 
 north of Peru ; effort of Mr. Adams to change 
 this disposition ; correspondence inclosed. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 1. BOLIVIA— Continued. 
 
 VII 
 
 Mr. Adams to Mr. Evarts 
 
 (No. 34). 
 
 Same to same (No. 35) - - 
 Same to same (No. 36) . . 
 
 Same to same (No. 36 a) 
 Same to same (No. 39) . 
 
 Same to same (No. 43) . . 
 
 Same to same (No. 46) . 
 Same to same (No. 49). 
 
 1880 
 Oct. 
 
 t 
 7 
 
 Oct. 
 
 8 
 
 Oot, 
 
 23 
 
 Nov. 
 
 6 
 
 Nov. 
 
 6 
 
 Mr. Evarts to Mr. Adams 
 (No. 24). 
 
 Mr. Adams to Mr. Evarts 
 (No. 52). 
 
 Same to same (No. 56) . 
 
 Same to same (No. 57; . 
 
 Mr. Nunez delPrado to Mr. 
 Evarts. 
 
 Mr. Adams to Mr. Evarts 
 (No. 59). 
 
 Same to same (No. 60). 
 
 Mr. Cabrera to Mr. Evarts. . 
 
 Mr. Adams to Mr. Evarts 
 No. 61). 
 
 Nov. 12 
 
 Nov. 17 
 Dec. 3 
 
 Dec. 14 
 
 Dec. 16 
 
 1881. 
 Jan. 9 
 
 Jan. 17 
 
 Feb. 1 
 
 Feb. 3 
 
 Feb. 15 
 
 Feb. 18 
 
 Feb. 24 
 
 Mediation: refers to his No. 32; Bolivia objects to 
 language in legation's note therein inclosed; Mr. 
 Adams modifies it accordingly ; favorable press 
 comments on mediation of the United States. 
 
 Peace conference : departs for Arica to attend the 
 same. 
 
 Peace negotiations: nearly defeated by objection 
 of Peruvian negotiators to go to Arica ; active 
 and finally successful efforts of Mr. Adams and 
 Bolivian negotiators to overcome this objection. 
 
 Peace negotiations: inclosures belonging to his 
 No, 36 transmitted. 
 
 Peace conference : failure of, reported with com- 
 ments; reprehensible conduct of Chili, and in- 
 explicable action of Minister Osborn. 
 
 Political situation: scheme for confederation of 
 Peru and Bolivia laid aside for the present ; 
 nearly a rupture between Peru and Bolivia ; 
 compromise effected; price of necessaries of 
 life very high, while exchange is at par ; minis- 
 try compelled to resign owing to failure of our 
 mediation ; intervention of United States hoped 
 for; vandalism on part of Chilians apprehended 
 with dread; legislation. 
 
 Peace conference: report of Bolivian plenipoten- 
 tiaries and protocols of proceedings of the con- 
 ference inclosed. 
 
 Peace conference : report of Bolivian foreign 
 office on, inclosed ; satisfaction at odium which 
 Chili has brought upon herself by declaring the 
 right of conquest; intervention by the United 
 States' and declaration of war by Argentine Re- 
 public hoped for ; triumph of the allies in the 
 conference. 
 
 Peace negotiations : failure of, regretted ; United 
 States still ready to do whatever it can for 
 peace; his personal movements reported in his 
 No. 36 approved. 
 
 Intervention: circular of Bolivian Government 
 inciting other South American Republics to in- 
 tervene for suppression of Chilian aggrandize- 
 ment, inclosed. 
 
 Political : circular of Bolivian Government in an- 
 swer to one of the Chilian Government respect- 
 ing responsibility for the war and its continu- 
 ance, inclosed. 
 
 Political : change of ministry ; war party in power ; 
 hopes of Bolivia revived by action and disposi- 
 tion of Argentine Republic; prompt suppres- 
 sion of a mutiny ; President Campero firmly 
 established in his seat, although revolutionary 
 rumors are frequently circulated. 
 
 Peace question : determi nation of Bolivia to resist 
 to the last extremity Chili's efforts at absorption 
 and conquest. 
 
 Political: demoralization consequent on capture 
 of Lima ; foreigners in terror in anticipation of 
 Chilian invasion ; appointment of Nunez as min- 
 ister for foreign affairs. 
 
 Political situation : Bolivian circular defining the 
 same, inclosed ; Bolivia is stronger than Peru 
 now and has suffered less; turn of Bolivia's 
 commerce towards the Atlantic via the La Plata 
 and Amazon Rivers; note from foreign office 
 inclosed for transmission to Bolivian minister 
 in the United States. 
 
 Peace question : mode of settlement of, which Mr. 
 Cabrera strongly advocates; nitrate and guano 
 deposits of Peru, bone of contention, should be 
 removed from the control of belligerents, and 
 placed in charge of a company which would pay 
 Bolivia's and Peru's war and other debts ; plan 
 of such company submitted ; war, instead of 
 being ended by fall of Lima, is to be continued 
 with greater activity. 
 
 "War contributions levied by Bolivia : Spaniards 
 apply to Mr. Adams to intervene for their ex- 
 emption from; Mr. Adams declines on grounds 
 that application is not official and that contribu- 
 tion is just. 
 
VIII AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 1. BOLIVIA Continued: 
 
 No. 
 
 From whom and to -whom. 
 
 Date. 
 
 Subject. jPage. 
 
 50 
 
 Mr. Cabrera to Mr. Blaine . . 
 
 1881. 
 May 9 
 
 Peace question : plan for solution of, set forth, in 
 his note of February 18 last; urges adoption 
 of it. 
 
 Political situation: preparations being made for 
 resisting the invasion of Chilians; Bolivia ad- 
 
 70 
 
 
 
 
 ' 
 
 51 
 
 Mr. Adams to Mr. Blaine 
 
 June 8 
 
 71 
 
 
 (No. 75). 
 
 
 
 
 
 
 heres to Pierola; intervention of the United 
 
 
 
 
 
 States for peace hoped for. 
 
 
 5'3 
 
 Mr. Blaine to Mr. Nunez del 
 Prado. 
 
 June 14 
 
 Peace question: acknowledges his note of Feb- 
 ruary 1. 
 
 72 
 
 53 
 
 Mr. Adams to Mr. Blaine - . . 
 
 Nov. 8 
 
 Policy of the United States in regard to the set- 
 tlement of the peace question : information rel- 
 ative to, requested. 
 
 
 2. CHILI. 
 
 Mr. Osborn to Mr. Evarts 
 (No. 83). 
 
 Same to same (No. 86). 
 
 Same to same (No. 88). 
 Same to same (No. 89). 
 
 Same to same (No. 92). 
 Same to same (No. 98) . 
 
 Mr. Seward to Mr. Osborn 
 (No. 63). 
 
 Mr. Osborn to Mr. Evarts 
 (No. 100). 
 
 Same to same (No. 101). 
 
 Same t« same (No. 107) . 
 
 Mr. Evarts to Mr. Osborn 
 (No. 70). 
 
 Mr. Osborn to Mr. Evarts 
 (No. 110). 
 
 1879 
 Feb. 
 
 20 
 
 Apr. 
 
 3 
 
 Apr. 
 
 i 
 
 Apr. 
 
 11) 
 
 Apr. 
 
 19 
 
 May 
 
 10 
 
 May 
 
 29 
 
 Jane 
 
 5 
 
 June 
 
 11 
 
 July 
 
 24 
 
 Aug. 
 
 8 
 
 Aug. 
 
 a 
 
 Hostilities between Bolivia and Chili resulting 
 from a boundary dispute ; Chilian forces in pos- 
 session of Bolivian territory; fears entertained 
 that Peru will join with Bolivia; explanatory 
 documents transmitted. 
 
 Hostilities between Bolivia and Chili: Peru will 
 probably take sides with Bolivia ; action of Mr. 
 Osborn to prevent a collision between Peru and 
 Chili; the Bolivian territory occupied by Chili, 
 and its resources; the desert of Atacama ; news- 
 paper articles thereon inclosed ; F. L. Asta-Bur- 
 uaga, appointed minister to the United States, 
 will leave for Washington soon. 
 
 Hostilities between Peru and Chili: Chili's griev- 
 ances are the secret treaty between Peru and 
 Bolivia, and Peru's preparation for war. 
 
 "War between Chili and Peru: war formally de- 
 clared by Chili on 5th April ; Iquique blockaded 
 on same day; province m which Iquique is sit- 
 uated is very wealthy in nitrate and guano de- 
 posits ; memorandum setting forth antecedents 
 of the war inclosed. 
 
 War between Chili and Peru: incloses manifesto 
 of Chilian Government vindicating its course in 
 declaring war against Peru. 
 
 War: progress of; map of theater of war inclosed; 
 purposes of Chili and plan of her campaign ; 
 copy of secret treaty between Peru and Bolivia 
 inclosed ; Argentine Republic was urged to be- 
 come a party to this treaty, which was gotten 
 up in hostility to Chili. 
 
 War between Chili and Peru: No. 92, transmit- 
 ting Chili's manifesto justifying her declaration 
 of war against Peru, received; the war is re- 
 gretted by the United States. 
 
 Mediation tendered by Great Britain refused by 
 Peru and accepted by Chili; naval combat at 
 Iquique, and blockade of that port ; England 
 directs protection of British subjects by her 
 naval vessels. 
 
 Privateers: inclosing translation of Bolivian de- 
 cree relative to, which is in conflict with treaty 
 of United States ; English representatives much 
 agitated. 
 
 War between Peru and Chili : mediation of Ecua- 
 dor for peace ; Peru demands as a condition of 
 arbitration a status quo ante helium; Chili de- 
 mands a status quo as at present; Chili about 
 to make a forward movement; paralyzation of 
 business ; financial measures of Chili ; opposi- 
 tion to European intervention. 
 
 Mediation of Colombia for cessation of hostilities: 
 instructed to express to Colombian envoy who 
 will visit Santiago to proffer mediation the 
 friendly solicitude of the United States as to 
 the result of his mission. 
 
 Visit of Mr. Pettis : his efforts in behalf of peace ; 
 difficulty in establishing basis for peace negoti- 
 ations ; Mr. Pettis's efforts have materially im- 
 proved the prospects for peace; Mr. Osborn 
 does not expect a peaceable solution at present. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 2. CHILI— Continued. 
 
 IX 
 
 Mr. Osborn to. Mr. Evarts 
 (No. 112). 
 
 Same to same (No. 118) - 
 
 Same to same (No. 120) 
 
 Same to same (No. 123) . 
 
 Mr. Asta-Buruaga to Mr. 
 Evarts. 
 
 Mr. Osborn to Mr. Evarts 
 (No. 125). 
 
 Mr. Evarts to Mr. Asta-Bu- 
 ruaga. 
 
 Mr. Evarts to Mr. Osborn 
 (No. 83). 
 
 Mr. Osborn to Mr. Evarts 
 (No. 131). 
 
 Same to same (No. 132) . 
 
 1879. 
 Aug. 16 
 
 Oct. 17 
 
 Oct. 28 
 
 Dec. 
 
 Dec. 15 
 
 1880. 
 Jan. 13 
 
 Same to same (No. 133) - 
 
 Mr. Evarts to Mr. Osborn 
 (No. 85). 
 
 Same to same (No. 87) . 
 
 79 Same to same.(No. t 
 
 Feb. 25 
 
 Feb. 
 
 27 
 
 Mar. 
 
 5 
 
 Mar. 
 
 9 
 
 Apr. 
 
 13 
 
 Apr. 
 
 14 
 
 Arbitration : Chili ready to arbitrate with. Bolivia 
 on basis proposed by Mr. Pettis, but not with 
 Peru ; war spirit in the ascendency in Chili ; 
 fears of revolution ; rumor that United States 
 intends to intervene ; Mr. Fisher, bearer of dis- 
 patches, and Mr. Pettis occasion the rumor; 
 memorandum of arbitration proposed by Mr. 
 Pettis and correspondence inclosed. 
 
 Peace question: reply of Mr. Osborn to letter of 
 the united States minister at Lima inclosed : 
 inutility of any effort at Santiago for peace at 
 present. 
 
 Peace question: failure of Colombia's peace mis- 
 sion ; Mr. Osborn has advised our minister at 
 La Paz to do nothing iu the way of urging medi- 
 ation of the United States upon" the belligerents ; 
 Chili confident of success, and does not wish 
 good offices of the United States at present; 
 necessity for bloody battles before peace cau be 
 treated for; proposition involving retrocession 
 of captured territory would not be accepted 
 now. 
 
 War, progress of: Chilians have captured Peru- 
 vian ports of Iquique and Pisagua, and have 
 opened them to commerce, and are now block- 
 ading Arica. 
 
 Neutrality laws of the United States: a torpedo- 
 boat is about to be sent from Bristol, B. I., to 
 Peru in violation of; requests that measures be 
 taken to prevent the departure of said boat; 
 contends that a torpedo-boat comes under the 
 head of armed vessels. 
 
 Blockade of Peruvian ports Ilo and Mollendo by 
 the Chilian squadron reported. 
 
 Neutrality of the United States: suspected inten- 
 tion of Violation of, by parties in the interest of 
 Peru ; there are no sufficient grounds at present 
 for criminal action against builders of the sus- 
 pected craft at Bristol, K. /I. ; steps taken to 
 prevent violation of neutrality. 
 
 Neutral rights: instructed to bring attention of 
 Chilian Government to the destruction of Amer- 
 ican property at Talara and Lohos by Chilian 
 naval forces, and to inform that government 
 that the United States expects the rights of its 
 citizens as neutrals to be respected, in pursuance 
 of treaty and international law. 
 
 Neutral rights : incloses note to foreign office pro- 
 testing against violation of, which would ensue 
 if recent vigorous regulations prescribed by 
 Chili for prosecution of the war should be strict- 
 ly carried: out ; the regulations provide for bom- 
 bardment of all towns and destruction of all 
 moles and launches in Peru ; copy of regulations 
 inclosed. 
 
 Prisoners of war : exchange of, between Chili and 
 Bolivia; aid of legation to effect same has been 
 requested by Chili and promised by Mr. Osborn ; 
 has addressed legation at La Paz on subject. 
 
 Nitrate beds occupied by Chilian forces: Chili 
 will never give them back to Peru ; export duty 
 placed on the products of these beds is too high, 
 and very little nitrate is being shipped ; Chili is 
 allowing foreign holders of Peruvian bonds' to 
 take the products of the beds in satisfaction of 
 their mortgages. 
 
 Foreign intervention : instructed, in the event of 
 attempt being made by European powers to 
 intervene for cessation of hostilities, to endeavor 
 to induce Chili to turn to the United States as 
 an arbitrator, rather than to a European govern- 
 ment. 
 
 Prisoners of war : exchange of, between Chili and 
 Bolivia; recently appointed United States min- 
 ister to Bolivia, who will soon depart for his 
 post, will be instructed to take steps for such 
 exchange. 
 
 "Warfare: recent rigorous rules of, established by 
 Chili; minister's protest to Chili approved; in- 
 structed to do all he can to prevent the wanton 
 destruction of life and property. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 2. CHILI— Continued. 
 
 From whom and to whom. 
 
 Mr. Evarts to Mr. Osborn 
 (No. 89). 
 
 Mr. Asta-Buruaga to Mr. 
 Evarts. 
 
 Mr. Osborn to Mr. Evarts 
 No. 143). 
 
 Same to same (No. 148) 
 
 
 May 
 
 21 
 
 Mr. Hay to Mr. Osborn (No. 
 98). 
 
 July 
 
 15 
 
 Mr. Evarts to Mr. Osborn 
 (telegram). 
 
 July 
 
 29 
 
 Same to same. (No. 101) 
 
 Jnly 
 
 30 
 
 Mr. Osborn to Mr. Evarts 
 (No. 155). 
 
 Aug. 
 
 4 
 
 Same to same (telegram) 
 
 Ang. 
 
 11 
 
 
 Aug. 
 
 12 
 
 Date. 
 
 Subject. 
 
 Apr. 23 
 Apr. 24 j 
 
 April 30 
 
 May 20 
 
 Mr. Hay to Mr. Osborn 
 
 (telegram). 
 
 Mr. Osborn to Mr. Evarta 
 (No. 160). 
 
 Same to same (No. 161) 
 
 Same to same (No. 163) 
 
 Same to same (No. 164) 
 Same to same (No. 165) 
 
 Aug. 17 
 Aug. 26 
 
 Aug. 27 
 
 Sept. 2 
 
 Sept. 9 
 Sept. 13 
 
 Prisoners of war : exchange of, between Chili and 
 Bolivia ; copy of No. 3 to the United States min- 
 ister at La Paz, on the subject, inclosed. 
 
 Neutral rights: alleged violation of, by Chili; vin- 
 dicates Chili's mode of warfare; neutral resi- 
 dents have no ground of complaint; Chili will 
 pay all just claims against her, and hopes that 
 lust claims which she may prefer will be simi- 
 larly treated ; has applied to his government for 
 instructions. 
 
 Neutral property : destruction of, by Chilian 
 naval forces at' Talara and Lobos ; has observed 
 instructions No. 83; grounds upon which Chili 
 vindicates the destruction. 
 
 Mediation by the United States for restoration of 
 peace between Chili and Perut howit should be 
 conducted when invited ; prospects for peace ; 
 no disposition on part of European powers to 
 intervene: letter to United States minister at 
 Lima inclosed. 
 
 Iqnique: charges preferred by Chili against Con- 
 sul Merriam of assisting Peru in the war ; his 
 prompt removal recommended. 
 
 Neutral rights : asks if Chili has replied to his 
 protest against her proposed mode of conduct- 
 ing the war ; refers to his No. 131. 
 
 Mediation : ' Press upon Chilian Government our 
 desire to aid in restoring peace on honorable 
 terms." 
 
 Mediation : suggestion by him to Mr. Christiancy 
 of mode of rendering good offices of United 
 States available for cessation of hostilities ap- 
 proved ; confirms Department's telegram of 29th 
 ultimo. 
 
 Intervention : movement of European legations 
 for peace ; no forcible intervention contem- 
 plated ; no prospect of an early peace ; the army 
 disentitled at not being ordered to march on 
 Lima ; present administration of Chili a very 
 timid one ; letter to Mr. Christiancy inclosed. 
 
 Mediation : Chili would accept mediation in form 
 suggested in my dispatch of May 20. 
 
 Mediation : Chili expresses willingness to accept 
 mediation of the United States on basis pro- 
 posed in Mr. Oshorn's [148 ; formal tender ng 
 of mediation postponed until receipt of instruc- 
 tions ; Chili thus is the first one of the belliger- 
 ents for peace. 
 
 Peace question : instructions sent to Mr. Chris- 
 tiancy asking views of Peru ; Mr. Osbom's 
 action approved. 
 
 Neutral rights : alleged violations of, by Chilians 
 at Talara and Lobos, and ill treatment of Mr. 
 Campbell ; note from foreign office vindicating 
 Chilians' course at Lobos and Talara inclosed; 
 purpose of legation's note, viz, greater respect 
 for neutral rights accomplished; report of in- 
 vestigation in Mr. Campbell's case not yet re- 
 ceived. 
 
 Mediation: Department's telegram of August 17 
 is gratifying to President of Chili ; has requested 
 Mr. Christiancy and Mr. Adams to learn the 
 views of Peru and Bolivia ; our movement for 
 peace embarrassed by counter movement on 
 part of other foreign governments ; proposition 
 made to Chili by Peru at request of diplomatic 
 corps at Lima to appoint a peace negotiator. 
 
 Peace conference : Mr. Christiancy's visit to San- 
 tiago doing no good; peace conference probably 
 will be held at Arica middle of October; Chili 
 has determided upon the appointment of three 
 negotiators. 
 
 Chili's proposed mode of warfare is a violation of 
 neutral rights ; no reply made to legation's pro- 
 test; explanation of excesses of Chilian sol- 
 diery ; reply to No. 98. 
 
 Prisoners or war: exchange of, between Chili and 
 Bolivia ; correspondence on the subject inclosed ; 
 reply to No. 100; no further action taken at 
 Santiago in the matter. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 2. CHILI— Contiuued. 
 
 XI 
 
 Mr. Osbora to Mr. EvartB 
 
 (No. 367). 
 Mr. Evarts to Mr. Osborn 
 (telegram). 
 
 Mr. Osborn to Mr. Evarts 
 (No. 169). 
 
 Same to same (No. 171) 
 
 Same to same (No. 172) 
 
 Mr. Evarts to Mr. Osborn 
 (No. 109). 
 
 Mr. Osborn to Mr. Evarts 
 
 (telegram). 
 Same to same (No. 173) 
 
 1880. 
 Sept. 17 
 
 Sept. 28 
 
 Sept. 30 
 
 Oct, 
 
 Mr.Valderrama to Mr. Asta- 
 Buruaga 
 
 Mr. Evarts to Mr. Osborn 
 (telegram). 
 
 Mr. Valderrama to Mr. As- 
 ta-Buruaga. 
 
 Same to same . 
 
 Mr. Osborn to Mr. Evarts 
 (No. 181). 
 
 Same to same (No. 182) . 
 
 Mr. Evarts to Mr. Osborn 
 (No. 115). 
 
 Mr. Osborn to Mr. Evarts 
 
 (No. 187). 
 Same to same (No. 190) 
 
 Oct. 
 
 8 
 
 Oct. 
 
 14 
 
 Oct. 
 
 28 
 
 Oct. 
 
 28 
 
 Nov. 
 
 11 
 
 Nov. 
 
 19 
 
 Nov. 
 
 22 
 
 Nov. 
 
 22 
 
 Nov. 
 
 23 
 
 Nov. 
 
 30 
 
 Dec. 
 
 27 
 
 
 • 
 
 1881. 
 Jan. 3 
 
 Jan. 
 
 14 
 
 Peace question: pernicious effect of Mr. Chris- 
 tiancy's visit to Santiago. 
 
 Peace question: "Proceed as proposed if bellig- 
 erents accede ; instructions to our vessels when 
 you telegraph, for them." 
 
 Mediation: Government of Chili is committed to 
 a more vigorous prosecution of the war, but our 
 mediation may bring about peace, though it is 
 unlikely, in consequence of the indisposition of 
 Peru to make adequate concessions ; Chili will 
 probably not assent to an armistice pending 
 peace negotiation ; destruction of Chimbote by 
 the Cbilians ; vindicatory explanations thereof ; 
 neutral property to be respected by Chilians ; 
 does not agree witb Mr. Christiancy that refu- 
 sal of Chili to assent to an armistice would be 
 disrespectful to the United States. 
 
 Mr. Christiancy's visit to Santiago ; embarrassing 
 position in which Chili was placed by that visit ; 
 refers to his No. 167; Mr. Osborn is astonished 
 that Chili has not withdrawn her acceptance of 
 our mediation. 
 
 Mediation accepted through note from foreign 
 office, inclosed ; Chili declines to suspend hostili- 
 ities pending peace negotiations. 
 
 Mediation : proceedings of legation for, by the 
 United States seem to prosper thus far ; full 
 advices awaited ; no. 163, and telegram of the ' 
 9th instant, received. 
 
 Conference closed without result. 
 
 Peace conference : termination of ; failure of 
 peace negotiations ; surprise at Peru's refusal 
 to cede Tarapaca ; Chilian expedition against 
 Lima ; armed intervention of European powers 
 not apprehended at present. 
 
 Peace conference : Expressing regret at failure 
 thereof, but sincere thanks for mediation and 
 good disposition of the United States, and com- 
 mending conduct of Mr. Osborn. 
 
 Neutrals: instructed as to taking action for pro- 
 tection of lives and property of, when Lima is 
 attacked by Chilians. 
 
 Peace conference: Chili not to blame for failure 
 of; she would not have accepted mediation of 
 the United States and gone into the conference 
 had she not been assured by Mr. Christiancy 
 that Peru would cede Tarapaca. 
 
 Peace conference : embarrassing misrepresenta- 
 tions of Chili's attitude regarding acceptance^ 
 mediation of the United States ; commendation 
 of Mr. Osborn's course. 
 
 "War policy of Chili ; she proposes to take TaTa- 
 paca from Peru not by right of conquest, but as 
 indemnity for war damages ; vindication of 
 Chili's refusal to submit to arbitration ; for- 
 eign office circular explaining Chili's war policy 
 inclosed. 
 
 Neutrals : protection of lives and property in the 
 event of the capture of Lima by the Chilians ; 
 confirms his telegram of the 26th instant; 
 incloses foreign office note that Chili has taken 
 due precaution for the safety of neutrals and 
 their property. 
 
 Arbitration : instructed to correct erroneous 
 
 ' impression that the United States would not 
 cheerfully act as arbitrator, which a certain re- 
 mark made by him during peace conference 
 may have caused. 
 
 Guano bonds of Peru : statement of position of 
 Chili respecting payment of. 
 
 Arbitration between Chili and Colombia : desig- 
 nation of President of the United States as ar- 
 bitrator •* Chili asks whether the President will 
 accept the position ; Mr. Osborn replies in the 
 affirmative ; correspondence inclosed ; reply to 
 No. 108. 
 
XII AFFAIRS BETWEEN CHILI, P.ERU, AND BOLIVIA. 
 
 2. CHILI— Continued. 
 
 Mr. Evarts to Mr. Osborn 
 {No. 119). 
 
 Mr. Osborn to Mr. Evarts 
 {No. 195). 
 
 Mr. Osborn to Mr. Blaine 
 (No. 198). 
 
 Same to same (No. 201) . 
 
 Mr. Osborn to Mr. Elaine 
 (No. 202). 
 
 Mr. Martinez to Mr. Hitt. . . 
 
 Mr. Osborn to Mr. Blaine 
 (No. 205). 
 
 Mr. Blaine to Mr. Kilpat- 
 
 riek (No. 2). 
 
 Mr. Kilpatrick to Mr. Blaine 
 (No. 3). 
 
 Same to same (No. 8) 
 
 1881. 
 Feb. 10 
 
 Feb. 24 
 
 Mar. 23 
 
 Apr. 5 
 
 Apr; 6 
 
 May 6 
 
 May 7 
 
 Mr. Martinez to Mr. Blaine 
 
 Same to same . 
 
 Same to same . 
 
 Mr. Blaine to Mr. Kilpatrick 
 (No. 13). 
 
 Aug. 15 
 
 Oct. 14 
 
 Oct. 24 
 
 Oct. 27 
 
 Oct. 28 
 Nov. 22 
 
 Peace question : urge upon Chili the desire of 
 the United States to bring about peace ; now 
 that the Chilians have captured Lima and Cal- 
 las, it is believed that Peru will accept media- 
 tion of the United States upon any reasonable 
 terms ; advises him of instruction of this date 
 to Mr. Christiancy. 
 Peace conference: Vindication of remarks made 
 by him during it, in regard to arbitration ; 
 they did not make any erroneous impression 
 on Chili as to disposition of the United States ; 
 reply to No. 115. 
 Peace question : no prospects of early solution of ; 
 the situation in Peru ; attitude of Chili ; Mr. 
 OBborn will do all in his poweT to effect an early 
 peace. Chilian general's account of capture of 
 Lima and its immediate antecedents, inclosed. 
 Peace question : prospects for solution of, very 
 remote ; Chili's hopes in the Calderon govern- 
 ment of Peru have been greatly weakened ; de- 
 moralization in Peru prevents establishment of 
 a stable government; course which Chili may 
 adopt. 
 Mediation : Great Britain, France, and Italy tender 
 their mediation to Chili; it is rejected by Chili; 
 the Europeans neither dissatisfied nor disap- 
 pointed. 
 Protectorate over Peru : vehemently denies rumor 
 
 that Chili intends to establish the same. 
 Peace question: determination of Chili to strength- 
 en the Calderon government in Peru and to 
 treat with it for peace ; Mr. Godoy, former min- 
 ister to the United States, goes to Lima in 
 charge of negotiations ; recoiumeiido Chili's 
 course ; advice given her by Mr. Osborn ; she 
 will certainly insist upon cession of Tarapaca 
 and possibly Mosquegua. 
 Intervention : instructed to encourage disposi- 
 tion of Chili to restore self-government in Peru ; 
 to urge Chili to enter into negotiations for 
 peace oefore deciding to take portion of Peru as 
 war indemnity, and to endeavor to have Euro- 
 pean intervention excluded from adjustment 
 of the peace question. 
 Peace question: reports his efforts to induce 
 Chili to adopt views of the United States ; coun- 
 teracting and bad effectproduced in Chili by 
 published statements of United States minister' 
 at Lima, that United States will not allow ac- 
 quisition of territory by Chili from Peru. 
 Policy of the United States : erroneous and dis- 
 quieting statement by Minister Hurlbut at Lima 
 concerning; denial of its truths and counterac- 
 tion of its effects by Mr. Kilpatrick reported ; 
 note to Minister Baimaceda inclosed. 
 Complains of the conduct of Mr. Hurlbut the 
 United States minister at Lima ; extracts from 
 newspapers inclosed, which give the cause of 
 complaint. 
 Unfriendly attitude of Mr. Hurlbut, towards Chili : 
 Mr. Martinez incloses a note from his govern- 
 ment instructing him to ascertain if views of 
 the United States are in accord with those of 
 Mr. Hurlbut. 
 Suppression of the Calderon government of Peru 
 by Chili: propriety with which the Chilian 
 commander psoceded in the matter set forth. 
 Peace question : his note to the foreign office to 
 allay apprehension and correct false impression 
 produced by the United States minister at Lima 
 strongly disapproved ; Chili had no grounds for 
 apprehension and should not have applied to 
 legation ; her course in suppressing Calderon 
 government unintelligible in view of her pre- 
 vious assurances, reported in legation's No. 3 ; 
 arrest of Calderon regretted ; hopes it is not in- 
 tended as a rebuke to the United States on 
 account of differences between him and his col- 
 league at Lima ; a special envoy will be sent to 
 endeavor to arrange a peace; reply to No. 8. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 2. CHILI— Continued. 
 
 XIII 
 
 127 
 
 Mr. Blaine to Mr. Kilpatrick 
 (telegram). I 
 
 128 Mr. Martinez to Mr. Blaine 
 
 129 
 
 130 
 
 131 
 132 
 
 Mr. Blaine to Mr. Kilpatrick 
 (N'o. 16). 
 
 1881. 
 Nov. i 
 
 Nov. 26 
 
 Nov. 
 
 Mr. Blaine to Mr. Treacot Nov. 
 (No. 1). 
 
 Mr. Blaine to Mr. "Walker 
 
 Blaine. 
 Mr. Blaine to Mr. Trescot 
 
 (No. 2). 
 
 Nov. 30 
 Dec. 1 
 
 133 
 
 134 
 
 Mr. Kilpatrick to Mr, Llaine 
 (No. <J). 
 
 Mr. Blaine to Mr. Tiescot 
 (No. 3). 
 
 Dec. 
 
 Dec. 
 
 Calderon government ; its suppression and arrest 
 of President Calderon are not understood by 
 United States; special envoy leaves "Washing- 
 ton for Chili Immediately, and it is hoped that 
 further action will await his arrival. 
 Peace question : sets forth illusory hopes and im- 
 pertinent attitude of the Peruvians and the 
 obnoxious officiousness of United States minis- 
 ter at Lima which, if persisted in, will render 
 peace impossible ; denies rumors that Chili's 
 demands upon Peru are inequitable and her 
 rule cruel. 
 Believes him of negotiations for solution of peace 
 question; informs him as to appointment and 
 powers of Mr. Trescot as special envoy extraor- 
 dinary and minister plenipotentiary to con- 
 duct such negotiations; appointment of Third 
 Assistant Secretary of State as assistant to Mr. 
 Trescot ; Mr. Kilpatrick expected to aid Mr. 
 Trescot. 
 Personal instructions as special envoy extraordi- 
 nary and minister plenipotentiary to Chili, Peru, 
 and Bolivia to negotiate for solution of peace 
 question. 
 Personal instruction as attache to special mission 
 
 for settlement of the peace question. 
 Reviews previous instructions and steps which 
 led to recognition of Calderon government; the 
 act an adoption of policy friendly to Chili ; it 
 was followed by Chilian military order forbid- 
 ding Calderon government to exercise its func- 
 tions ; President will not assume this as done 
 in consequence of the recognition by the United 
 States ; if such a motive should be avowed, 
 Mr. Trescot instructed to say that it is re- 
 garded as an intentional offense, and to suspend 
 diplomatic intercourse, but he may reoeive any 
 explanation wbich does not involve a disavowal 
 of Mr. Hurlbut. The United States wishes 
 first to stop bloodshed and misery ; second, to 
 take care that the Government of the United 
 States is treated with, the consideration to which 
 it is entitled, and would be satisfied with man- 
 ifestation of purpose in Chili either to restore Cal- 
 deron government or establish one which will be 
 allowed freedom of action in negotiations. Should 
 Chili refuse to allow formation of governmentnot 
 pledged toconsent to cession of territory, heisto 
 express dissatisfaction of the United States. The 
 United States recognizes Chili's right to ade- 
 quate indemnity and guarantee, but that the 
 exercise of the right of absolute conquest is 
 dangerous; and. the United States think that 
 Peru has the right to demand an opportunity 
 to find indemnity and guarantee without ces- 
 sion nf territory. The prohibition of the form- 
 ation of a government is practical extinction of 
 the State." If good offices are refused on this 
 basis, the United States holds itself free to ap- 
 peal to the other republics of the continent to 
 join with it. Instructions given in accordance, 
 ond a temporary convention counseled. 
 Peace question: Chili promised Mr. Kilpatrick 
 that she would m»t demand cession of territory 
 as absolute condition, and that she would build 
 up and strengthen Calderon's government y 
 these promises would have been fulfilled but 
 for the representations made by Mr. Hurlbut 
 of the attitude of the United States. Reasons 
 for suppression of Calderon ; bad faith. Com- 
 ing ot special mission creates excitement, and 
 alleged support by United States of the Peru- 
 vian Company scheme greatly intensifies it. Ex- 
 treme illness 'of Mr. Kilpatrick. 
 Congress of American governments : authorized 
 to return home by way of Argentine Republic 
 and Brazil and to urge the governments of those 
 countries to accept our invitation to such Con- 
 gress. 
 
 1S1 
 
XIV AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 2. CHILI— Continued. 
 
 No. 
 
 135 
 
 From whom and to whom. 
 
 Subject. 
 
 Page. 
 
 137 
 
 138 
 
 139 
 
 140 
 141 
 
 Mr. Martinez to Mr. Blaine 
 
 Mr. Foote to Mr. Blaine 
 (No. 83). 
 
 Mr. Blaine to Mr. "Walker 
 
 Blaine. 
 Mr. Blaine to Mr. Txescot 
 
 (No. 4). 
 
 Mr. Martinez to Mr. Fre- 
 linghuysen. 
 
 Mr. Frelinghuysen to Mr. 
 Treacot (telegram). 
 
 Same to same (telegram) 
 
 Mr. Frelinghuysen to Mr. 
 Martinez. 
 
 1881. | 
 Dec. 5 ! 
 
 Dec. 
 
 Dec. 9 
 Dec. 16 
 
 Dec. 28 
 
 1882. 
 Jan. 
 
 Jan. 
 
 Jan. 7 
 
 Mr. Frelinghuysen to Mr. Jan. 9 
 TreBcot (No. 6). 
 
 Mr. Martinez to Mr. Fre- 
 linghuysen. 
 
 145 
 
 Same to same . 
 
 Jan. 10 
 
 Jan, 10 
 
 Calderon government; announces the imprison- 
 ment of President Calderon hy Chili; reasons 
 for; states that Chili never recognized Calderon. 
 Peruvian General Montero has accepted the 
 vice-presidency, and a Peruvian committee has 
 started from Lima to bring about apeace through 
 Montero. Gives number of forces under Pierola 
 and his adherents. Peru unwilling to make 
 peace upon terms proposed by Chili. 
 
 Peruvian bondholders; rumor of an arrangement 
 with European powers by Chilian Government 
 for protection ot. Excitement caused by state- 
 ments of United States minister at Lima. Dis- 
 trust in friendship of the United States caused 
 by same. 
 
 Charge; instructed to assume duties as, on his 
 arrival at Santiago. 
 
 Claims of the United States citizens vs. Peru: 
 Cochet claim and Landreau claim. Explains 
 position of the United States regarding them, 
 in order to correct misstatements which are 
 being circulated by the press. If Chili should 
 acquire territory from Peru, it is expected that 
 whatever rights Mr. Landreau may have in 
 such territory will be respected by Chili. Cor- 
 respondence with minister at Lima inclosed. 
 
 Political situation in Peru, statement of; war 
 spirit and anarchy. 
 
 Pacific influence ; informs him that same should 
 be exerted, and all issues which might lead to 
 his withdrawal from Chili avoided. 
 
 Impartial extension of friendly offices to both re- 
 publics ; exertion of pacific influence, and avoid- 
 ance of possibly offensive issues, are desired by 
 the President. Directs him not to return via 
 Buenos Ayres. Calderon difficulty can be setr 
 tied here. 
 
 Arrest of President Calderon* requested to re- 
 peat in writing the assurance given orally by 
 nim that it was not instigated by an unfriendly 
 feeling towards the United States. 
 
 Refers to cablegrams. Modifies previous written 
 instructions. President desires no dictation to 
 either power as to merits of controversy, as to 
 indemnity, as to change of boundaries, or as to 
 personnel of government; he has no right or 
 inclination to dictate to independent republics ; 
 an attitude of dictation would necessitate the 
 taxation of our people to support an army and 
 navy for the exclusive benefit of foreign na- 
 tions ; his policy that of Washington ; is" ready 
 to extend kindly offices of United States im- 
 partially to both parties ; revokes former in- 
 struction as to suspension of diplomatic inter- 
 course ; reserves to himself the right to deter- 
 mine such question; does not wish Mr. Trescot 
 to visit Atlantic republics as envoy after leav- 
 ing Chili ; will determine hereafter' whether he 
 wishes to enter into further negotiations for 
 continuance of peace with selected nations 
 without also inviting other powers. The prin- 
 ciples controlling the relations of American 
 republics with each other are well established, 
 and little to be gained by reopening thejsubject. 
 President prefers time for deliberation. 
 
 Montero's pretended administration a farce; 
 presence of Chilian army necessary in Lima to 
 prevent anarchy. Expedition sent by Chili 
 against Peruvian Chief Caeeres. Peruvians re- 
 sponsible for consequences of their foolhardy 
 obstinacy. Assumption of administration of 
 finances of Peru by General Lynch. Threat of 
 Bolivia to invade Tarapaca will not be carried 
 out. Mr. Hurlbut's letter to the notables of 
 Lima inclosed, with comments as to its extraor- 
 dinary character. 
 
 Suppression of Calderon government; states Chi- 
 li's reasons for; it was intended as an aftront to 
 the United States. 
 
AFFAIRS BETWEEN CHILI, PEKU, AND BOLIVIA, 
 2. CHILI— Continued. 
 
 XV 
 
 No. 
 
 From whom and to whom. 
 
 Date. 
 
 Subject. 
 
 Page. 
 
 146 
 
 Mr. ErelinghuyBen to Mr. 
 Martinez. 
 
 1882. 
 Jau. 16 
 
 Arrest of Calderon ; note giving assurance that 
 it was not intended as an affront to the United 
 States received with gratification. 
 
 193 
 
 14«4 
 
 Mr. Martinez to Mr. Fre- 
 linghuysen. 
 
 J ATP. , 18 
 
 Municipal government of Lima ; assumption of 
 by the Chilians announced and justified, Rival 
 factions in Peru; incloses letter of Minister 
 Hurlbut to the head of one of them, the guer- 
 illa chief, Caceres, advising unification of fac- 
 tions and desistance from opposition to Mon- 
 tero. Mr. Martinez regards this as a strange 
 document. 
 
 193 
 
 3. PERU. 
 
 147 
 
 149 
 
 151 
 152 
 
 153 
 
 154 
 155 
 
 156 
 
 157 
 
 Mr. Gibbs to Mr. Evarts 
 (No. 311). 
 
 Same to same (No. 314) . 
 
 Same to same (No. 316) . 
 
 Same to same (No. 317) . 
 
 Same to same (No. 322) 
 Same to same (No. 323) . . 
 
 Same to same (No. 326) - 
 
 Same to same (No. 329) . . 
 Same to same (No. 330) . . 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 4). 
 
 Mr. * Christiancy to Mr. 
 Evarts (No. 6). 
 
 1879. 
 Eeb. 19 
 
 Feb. 26 
 
 Mar. 12 
 
 Mar. 19 
 
 Mar. 26 
 
 ApT. 2 
 
 Apr. 8 
 
 Apr. 9 
 
 Apr. 9 
 
 Apr. 29 
 
 Rupture of friendly relations between Bolivia 
 and Chili, particulars of: treaty ceding certain 
 territory to Bolivia annulled by Chili, and the 
 territory in Question taken possession of by 
 Chili; ill feeling of Peru toward Chili, and her 
 probable participation in the quarrel in behalf 
 of Bolivia. 
 
 Hostilities between Bolivia and Chili : minister of 
 Chili at La Paz demanded and received his 
 passport on the 15th instaut ; Chilian forces in 
 possession of Bolivia's seaports; supplies for 
 Peru from Argentine Republic cut off. 
 
 Participation of Peru with Bolivia probable: 
 statements in legation No. 314 confirmed; 
 Chilian forces have established military and 
 civil government at all points in Bolivia occu- 
 rred by them. 
 
 War with Chili: note from Bolivian minister at 
 Lima, stating that Bolivia has accepted the war 
 forced upon ner by Chili, inclosed; Chili con- 
 tends that the Bolivian territory just occupied 
 by her was ceded to Bolivia on" certain condi- 
 tions, which conditions not having been ful- 
 filled, she now merely repossesses herself of 
 her former territory ; Peru is making warlike 
 preparations, but may not take part in the 
 struggle ; various decrees of Bolivian executive 
 iu closed. 
 
 Peru apparently becoming involved: decree of 
 President of Bolivia expelling Chilians and em- 
 bargoing their property inclosed. 
 
 Warlike preparations oi" Peru: session of Con- 
 gress called to iietermine position to be taken 
 by Peru, and to adopt suitable measures; thinks 
 Chili will attack Peru before the latter declares 
 war. 
 
 "War declared against Peru by Chili: suggests 
 tbat United States send war vessel to protect 
 American interests; Bolivians defeated in a 
 skirmish; the whole Bolivian coast occupied by 
 Chilians. 
 
 Legation of the United StateB has expressed regret 
 to foreign office at the rupture between the two 
 governments; correspondence inclosed. 
 
 Progress of war: blockade of Iquique; move- 
 ment of Peruvian troops; Chilian minister 
 takes refuge on United htates steamer Lacka- 
 wanna; arrival of United States steamer Pensa- 
 cola at Iquique; newspaper account of events 
 inclosed. 
 
 Approves action of Mr. G-ibbs in reporting rela- 
 tive to the war; expresses gratification at the 
 decision of Peru in deciding to maintain strict 
 neutrality. 
 
 Proclamation of President of Peru declaring that 
 treaty between Peru and Bolivia compels Peru 
 to go to war; incloses note from Chilian foreign 
 office transmitting passports to Peruvian minis- 
 ter, and message or President of Peru to Peru- 
 vian Congress explaining his course, and reply 
 of Congress approving it. 
 
XVI AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 3. PERU— Continued. 
 
 Mr. Christiancy to Mr. 
 Evarts (No. 7)." 
 
 Same to same (No. 13) . 
 
 Mr. Tracy to Mr. Evarts. .. 
 
 Mr. Christiancy to Mr. 
 Evarts (No. 16). 
 
 Same to same (No. 18) 
 Same to same (No. 20) - 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 20). 
 
 Mr. Tracy to Mr. Evarta. - . 
 Mr. Christiancy to Mr. 
 Evarts (No. 25). 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 24). 
 
 Mr. Evarts to Mr. Tracy. . . 
 
 Mr. Christiancy to Mr. 
 Evarts (No 34). 
 
 Mr. Evarts to Mr. Tracy . 
 
 Mr. Christiancy to Mr. 
 Evarta (No. 36). 
 
 Same to same (No. 37) ' July 22 
 
 1879. 
 Apr. 29 
 
 May 12 
 
 May 15 
 
 May 21 
 
 May 27 
 
 June 2 
 
 June 18 
 
 June 24 
 June 25 
 
 June 26 
 
 June 27 
 
 July 15 
 
 July 19 
 
 July 20 
 
 Same to same (No. ! 
 
 July 23 
 
 Mr. Tracy to Mr. Evaits ' July 24 
 
 Neutrals domiciled in Peru: incloses joint note of 
 diplomatic corps in Lima to Chilian admiral, 
 setting forth duties of a belligerent toward, 
 and warning him that his government will be 
 held, responsible for injuries which have been 
 perpetrated upon, by Chilian naval forces. 
 
 Progress and effects of war: immense injury to 
 neutrals; possibility of revolution in Peru; her 
 financial embarrassment; plans for its relief; 
 coasting trade thrown open to all foreign ves- 
 sels ; apprehension that Bolivia will desert 
 Peru. 
 
 Incloses documents setting forth antecedents of 
 warand copy of Peru-Bolivian treaty of defensive 
 alliance : Peru not blamable for the war ; it has 
 been forced upon her by Chili. 
 
 President Prado takes command of the army and 
 navy and sails south ; Luis de La Puerta, vice- 
 president, assumes Presidency ad interim^ and 
 forms a new cabinet; names of new cabinet 
 officers ; the public pleased with them. 
 
 Progress of war : naval engagements ; financial 
 measures. 
 
 Bolivian decree authorizing privateering in- 
 closed : it conflicts with our treaty, and legation 
 has called attention of the United States minis- 
 ter at La Paz to it. 
 
 Approv.es action in behalf of neutral rights re- 
 ported in his No.7 ; European capitalists are seek- 
 ing to bring about an undue observance of such 
 rights during present war ; the United States 
 not disposed to have belligerent rights abridged 
 iff behalf of neutrals ; opinion of Attorney-G-en- 
 eraTStanbery justifying bombardment of un- 
 fortified places inclosed. 
 
 Manifesto vindicating the cause of Peru inclosed. 
 
 Privateering: refers to his No. 20, and says he 
 has represented to minister of foreign affairs 
 that trouble is likely to arise between the 
 United States and Bolivia if the position of 
 Bolivia relative to, is adhered to, and suggests 
 that Peru so inform Bolivia. 
 
 Privateering projects of Bolivia : copy of De- 
 partment's No. 12, to the United States minister 
 at La Paz inclosed ; instructed to inform Peiu 
 that the United States does not intend to per- 
 mit any violation of its neutrality laws. 
 
 Note of 24th instant, inclosing manifesto vindi- 
 cating Peru's cause, received. 
 
 Blockade of Iquique : question whether leaving 
 port open at night, by withdrawal of blockad- 
 ing squadron and resuming position in morning, 
 renders blockade ineffectual. 
 
 Note of 16th instant, transmitting report made to 
 Peruvian Congress by minister for foreign 
 affairs, which sets forth antecedents of war, re- 
 ceived ; thanks. 
 
 Military situation at present: visit of Mr. Pettis 
 to Lima; his and Mr. Christiancy's efforts to 
 bring about peace ; basis of peace discussed 
 with Peruvian minister for foreign affairs ,- the 
 hitter's position; Peru will accept a peace pro- 
 posals from Chili. 
 
 Rumored proffers of mediation by the United 
 States, based upon statements of Col. H. N. 
 Fisher, who represented himself as special en- 
 voy from the United States to bring about 
 peace. 
 Question whether Chili has right, without block- 
 ading Pisagua, to stop shipment of nitrates 
 therefrom ; consul at Iquique instructed to pro- 
 test against stoppage of anv American vessel 
 in the nitrate trade; blockade at Iquique not 
 regarded as raised. 
 
 Neutrality of Colombia: protest against action 
 of Panama in preventing the shipment of muni- 
 tions of war acrnss the Isthmus as being a vio- 
 lation of neutrality ; requests intervention of 
 the United States. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. XVII 
 
 3. PERU— Continued. ' 
 
 From whom and to whom. 
 
 Date. 
 
 Subject. 
 
 Page. 
 
 Mr. Christiancy to Mr. 
 Evarta (No. 41). 
 
 Same to same (No. 42) 
 
 Same to same (No. 46) 
 
 Mr. Evarts to Mr. Chris 
 tiancy (No. 29). 
 
 Same to same (No. 30) 
 
 Mr. Christiancy to Mr. Ev- 
 arts. 
 
 Mr. Reward to Mr. Chris- 
 tiancy (No. 32). 
 
 Mr. Seward to Mr. Chris- 
 tiancy (No. 33). 
 
 Same to same (No. 34) 
 
 Mr. Seward to Mr. Tracy . . 
 
 Mr. Tracy to Mr. Evarts 
 
 Mr. Seward to Mr. Chris- 
 * tiancy (No. 36). 
 
 Mr. Christiancy to Mr. Ev- 
 arts (No. 47). 
 
 Same to same. 
 
 Same to same (No. 49) 
 
 Mr. Tracy to Mr. Evarts 
 
 Mr. Hunter to Mr. Tracy . 
 Same to same 
 
 Mr. Chiistiancy to Mr. Ev- 
 arts (No. 53). 
 
 S. Ex. 79 It 
 
 1879. 
 July 30 
 
 July 30 
 Aug. 5 
 Aug. 8 
 
 Aug. 8 
 
 Aug. 12 
 Aug. 18 
 
 Aug. 18 
 
 Aug. 18 
 Aug. 19 
 
 Aug. 22 
 Aug. 25 
 Aug. 26 
 
 Sept. 1 
 Sept. 2 
 
 Sept. 4 
 
 Sept. 10 
 Sept. 10 
 
 Sept. 10 
 
 Bombardment of Iquique by Chilian naval forces: 
 protest of consular corps against; correspond- 
 ence between the consular corps and Chilian 
 admiral; the latter justifies the bombardment ; 
 legation leans to the opinion that the bombard- 
 ment was justifiable. 
 
 Progress of war ; Peruvian successes 
 
 Blockade of Iquique has been raised , 
 
 Blockade of Iquique: views and proceedings set 
 forth in his No. 34 approved ; action he should 
 take in case the blockade should at any time 
 prove ineffectual, stated. 
 
 Mediation of Colombia for cessation of hostilities 
 between the belligerents: instructed to express 
 to Colombian envoy, who will visit Lima to 
 proffer mediation, the friendly solicitude of the 
 United States as to the result of his mission. 
 
 False impressions created by Mr. S. Newton Pet- 
 tis as to the character of his mis sion ; condemns 
 Mr. Pettis' course. 
 
 Mediation of the United States for cessation of 
 hostilities: approves Mr. Christiancy's reserve 
 in conversing with Col. H. N. Fisher, who has 
 no official connection with Government of the 
 United States ; Department imparted to him its 
 
 Sositlon on the subject of mediation; reply to 
 r o. 37. 
 
 Mr. Christiancy's efforts and suggestions in be- 
 half of cessation of war approved; reply to 
 No. 36. 
 
 Blockade of .Iquique : instruction to consul, in- 
 closed in his No. 39, in regard to, approved. 
 
 Transportation of munitions of war across the 
 Isthmus of Panama: his note of 24th ultimo, 
 asking the Department to request Colombia to 
 permit same, will receive consideration. " 
 
 Transportation of munitions of war across the 
 Isthmus of Panama : Colombiahas disapproved 
 action of Panama in preventing same. 
 
 Bombardment of Iquique: views of legation and 
 its dispatch to consul at Iquique upon the sub- 
 ject approved; reply to No. 41. 
 
 Peace question : asks whether it would be proper 
 for United States to offer mediation, and whether 
 the Ohite.d States would accept position of arbi- 
 trator; belligerents not disposed for peace; 
 they desire first to try their strength; remarks 
 of Mr. Christiancy to Colombian envoy; great 
 regard manifested by Peru and Bolivia for the 
 United States; mistaken views of Mr. Pettis as 
 to prospect of peace. 
 
 Peace question : note's to United States ministers 
 at Santiago and La Paz, setting forth views of 
 Mr. Christiancy as to course which should be 
 pursued by the legation of the United States in 
 belligerent Muntries, inclosed. 
 
 Peace questio^ imprudence of Mr. Pettis has 
 given rise to the impression in Chili that the 
 United States intends to intervene ; newspaper 
 articles exhibitory of this impression inclosed, 
 states what has been Mr. Christiancy's position 
 in conversing on the subject of peace. 
 
 Documents setting forth unjustness of Chili's 
 cause, inclosed; principal events of the war; 
 Peru's successes thus tar ; reprehensible char- 
 acter of warfare practiced by Chili ; will keep 
 the department advised as to progress of the 
 war. 
 
 Note of 4th instant, narrating events of war, re- 
 ceived, and will be duly considered. 
 
 Transportation of munitions of war across the 
 Isthmus of Panama; note of 22il ultimo, stating 
 that Colombia has disapproved action of Pan- 
 ama iii prohibiting such transportation, received. 
 
 Peace question : reports having assured Colom- 
 bian envoy, in advance of receipt of Depart- 
 ment's 30, that the legation would co-operate 
 with him in any reasonable measures for peace ; 
 Bolivia and Peru desire peace as sooq as possi- 
 ble ; they seriously apprehend obnoxious foreign 
 intervention ; they would welcome any efforts 
 
XVIII AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 3. PERU— Continued. 
 
 From whom and to whom. 
 
 Mr. Christiancy to Mr. Ev- 
 arts (No. 53) — Continued. 
 
 Same to same (No. 59) . 
 
 Same to same (No. 61) . 
 
 1879. 
 Sept. 10 
 
 Sept. 17 
 
 Sept. 24 
 
 Same to same (No. 62) . 
 
 Same to same . 
 
 Mr. Hunter to Mr. Chris 
 tiancy (No/39). 
 
 Sept. 24 
 
 Sept. 24 
 
 Oct. 1 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 40). 
 
 Mr. Christiancy to Mr .Ev- 
 arts (No 64). 
 
 Mr. Tracy to Mr. Evarts . . . 
 Mr. Seward to Mr. Tracy 
 
 Mr. Seward to Mr. Chris- 
 tiancy (No. 42). 
 
 Mr. Christiancv to Mr. 
 Evarts (No. 70). '. 
 
 Same to same (No. 75) 
 
 Same to same (No. 80) 
 
 Same to same (No. 83) 
 
 Oct. 13 
 
 Oct. Wi 
 
 Oct. 
 
 17 
 
 Oct. 
 
 21 
 
 Oct. 
 
 ■TO 
 
 Oct. 
 
 23 
 
 Nov 
 Xov 
 
 3 
 11 
 
 Nov. 
 
 19. 
 
 ou tho part of the United States to thwart such 
 intervention; Chili would also; she is now nego- 
 tiating with Brazil for an offensive and defen- 
 sive alliance; legation of opinion that tender of 
 friendly mediation by the United States wonld 
 not offend any one Qf the belligerents; instruc- 
 tions requested. 
 
 Peace question : ostentatious pretensions of Col- 
 
 * onel Fisher, bearer of dispatches, have tended to 
 place the United States in a ridiculous attitude ; 
 newspaper articles in reference to Mr. JKsher's 
 supposed mission, inclosed ; has informed for- 
 eign office that the United StateT will be ready 
 to mediate for peace whenever she shall be re- 
 quested to do so by the other belligerents. 
 
 Visit of Mr. Pettis and Mr. Fisher: newspaper 
 article ridiculing their course, and expressing 
 indhTerence as to whether the United States shall 
 tender its good offices or not, inclosed; Peru and 
 Bolivia anxious for peace, and for the employ- 
 ment by the United States of its good offices 
 when the propertime arrives; has again informed 
 Peruvian Government that the United States 
 will be ready to mediate when asked by the bel- 
 ligerents to do so. 
 
 Privateering on the part of Bolivia : England has 
 increased her naval force on the Pacific for pro- 
 tection of British commerce ; Bolivia has no port 
 to which prizes could be brought for adjudica- 
 tion, and it is very doubtful whether she can use 
 Peru's ports for such a purpose; instructions 
 relative to privateering requested. 
 
 Letter to United States minister at Santiago rela- 
 tive to a course for him to pursue in regard to 
 peace, which Mr. Christancy regards as the only 
 one that can be successful, inclosed. 
 
 Views which have been expressed by minister in 
 conversation in Lima, concerning peace ques- 
 tion, approved; the United States does not tender 
 its good offices for peace, but will not hesitate to 
 use them for that purpose if called upon by bel- 
 ligerents to do so ; the United States will not en- 
 gage in any intervention which is not solicited, 
 or which is in disparagement of belligerent 
 rights; Mr. Pettis's unauthorized and rash ex- 
 periment in visiting Lima and Santiago has had 
 some good effects ; statements in Chilian news- 
 papers adverse to Mr. Pettis regarded as un- 
 founded. 
 
 Pacific instructions -requested in his Xo. 59 have 
 already been given; approves action reported 
 in his No. 59 ; instructs him as to correction of 
 any wroDg impression which may have been 
 created by Mr. Pettis qr Mr. Fisher as topolicy 
 of the United States ; he may pledge immediate 
 action by the United States for peace, provided 
 no other government be invited to mediate. 
 
 War indemnities: should be pecuniary, not terri- 
 torial ; capture of the monitor Huascar by Pe- 
 ruvian fleet reported ; this event is unfavorable 
 for peace. 
 
 Betrayal of Peru by Bolivia: documents inclosed 
 showing effort of Chili to induce same ; severely 
 animadverts upon this effort of Chili. 
 
 Betrayal of Peru bv Bolivia : documents tending 
 to show efforts of Chili to induce same, which 
 accompanied his nute of 17th instant, will b^ 
 considered. 
 
 Approves his suggestion to Mr. Osborn as to his 
 course: Department adheres to policy indicated 
 in previous instructions; reply to No. 6*H - 
 
 Prospects as to future hostilities ; present inac- 
 tivity. 
 
 Progress of war: prospects 
 
 Interdiction by Peru of commerce with'Chili' 
 question as to conflict between decree of inter- 
 diction anil our treaty with Peru; decree in- 
 closed; position of England and France on sub- 
 ject. 
 Progress of war: prospects as to military opera- 
 tions ; large defensive force at Lima. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 3. PERU— Continued. 
 
 XIX 
 
 208 
 
 209 
 210 
 
 211 
 
 212 
 
 Mr. Hay to Mr. Christiancy 
 (No. 47). 
 
 Mr. Christiancy to Mr. 
 
 Evarts (No. 87). 
 Same to same (No 88) 
 
 Same to same (No. 90) . 
 
 Same to same (No. 91) . 
 
 215 
 216 
 
 218 
 
 Same to same (No. 93) . 
 
 1879. 
 Nov. 26 
 
 Not. 2G 
 Nov. 26 
 
 Dec. 3 
 
 Dec. 7 
 
 Same to same (No. 94) 
 
 Same to same (No. 97) 
 Same to same (No. 98) 
 
 £ame to same (No. 99) 
 
 Same to same (No. 102) - 
 
 Same to same (No. 103). 
 
 Dec. 16 
 
 Dec. 23 
 
 Dec. 24 
 Dec. 31 
 
 Dec. 31 
 
 1880 
 Jan. f 
 
 Jan. 7 
 
 Communication between legation and Depart- 
 ment: if same should be cut off by Chili, he 
 should not adopt any special means of communi- 
 cation, except in case of absolute necessity. 
 
 Blockade of Iquique by Chilian war vessel, re- 
 ported. 
 
 Progress of war: a signal victory for Chili; mu- 
 tiny of Bolivian troops; rumored desertion of 
 Peru by Bolivia and alliance with. Chili ; revo- 
 lution expected in Peru ; instructions invited 
 with respect to recognition of .a new govern- 
 ment in Peru. 
 
 Capture of Iquique and blockade of Arica by 
 Chilians; resumption of Presidency by GeneraU 
 Prado; new ministry; Peruvian victory at 
 Arica; Pierola does not desire to become dic- 
 tator at present. 
 
 Political: change of ministry; manifesto of 
 Pierola, setting forth his position, and condemn- 
 ing the constitution of Peru as the source of all 
 Peru's calamities ; Mr. Christiancy shows, how- 
 ever, that the constitution is a very flexible one 
 and need not embarrass tbe government ; Peru 
 requires just such a constitution; decree 
 whereby the government monopolizes pur- 
 chase of silver produced in Peru, and increases 
 . export-tax on sugar, inclosed. 
 
 Very little progress in war : port of Ilo blockaded 
 by Chilian navy; allied troops massing at Arica ; 
 enlistments for Peruvian army active : disaf- 
 fection in Bolivia turns out to have been in 
 favor of vigorous support instead of desertion of 
 Peru ; depreciation of Peruvian paper currency"-. 
 
 Revolution in Peru : departure of President Prado 
 for United States, on 18th instant, leaving vice- 
 president as President ; motives for this action 
 on part of Prado ; want of confidence in the 
 government, and a general wish for .assumption 
 of the government by Pierola manifested imme- 
 diately upon Prado's departure ; fight between 
 Pierolists and government troops near the 
 United States legation in Lima ; army declares 
 for Pierola ; noble conduct of Prado's minister 
 of war; government abdicates, and Pierola 
 assumes control of affairs without opposition ; 
 character of Pierola ; instructions as to recog- 
 nition of his government requested; explana- 
 tory documents inclosed. 
 
 Legation's instructions to consul at Iquique, as to 
 his duties while that port remains in possession 
 of the Chilians, inclosed. 
 
 Refers to legation's No. 94, and incloses the de- 
 cree of Pierola, and letter written by President 
 Prado, at Guayquil, while en route to the United 
 States; these papers show the character and 
 status of present Government of Peru. 
 
 Question of recognition of Pierola's government: 
 conference of diplomatic corps; all of the corps 
 but Mr. Christiancy decide to recognize Pierola; 
 Mr. Christiancy informs foreign office that re- 
 cognition of the new government is not within 
 his discretion, and he must await Department 
 instructions, but he will attend at public cere- 
 monies upon the understanding that such course 
 shall not be construed as recognition. 
 
 Progress of war: Chilian successes and probable 
 projects ; massing of troops by Peru at Lima 
 and Callao; deposition of General Daza from 
 command of Bolivian army ; rumor of revolution 
 in Bolivia; financial condition of Peru more 
 likely to grow worse than to improve ; specu- 
 lation as to use to be made of Peruvian forces 
 now at Callao and Lima. 
 
 Refers to legation's No. 94, and incloses protest of 
 General de la Cotera who was Prado's minister 
 of -war; character pf General de la Cotera; ob- 
 jectionableness of Pierola's government owing 
 to its dictatorial character; -said government is 
 conciliating the Roman Catholic influences, to 
 which it owes its existence ; it is more active, 
 vigorous, and consistent of purpose than its pre- ■ 
 decessor, and merits recognition. 
 
XX AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 3. PERU— Continued. 
 
 "Mr. Cliristiancy to Mr. 
 Evarts (No. 104). 
 
 Same to same (No. 105) . 
 
 Mr. Calderon to Mr. Evarts 
 
 Same to same. 
 
 Mr. Christiancy to Mr. 
 Evarts (No. 106). 
 
 Same to same (No. 108) 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (telegram). 
 Same to same (No. 55) 
 
 Mr. Christiancy to Mr. 
 Evarts. (No. 111). 
 
 Same to same (No. 112) 
 
 Mr. Evarts to Mr. Tracy. . . 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 57). 
 
 Mr. Christiancy to Mr. 
 Evarts (No. 115). 
 
 Same to same (No. 117) 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 58). 
 
 235 Same to same (No. 63) 
 
 Mr. Evarts to Mr. Calderon . 
 
 1880. 
 Jan. 14 
 
 Jan. 14 
 
 Jan. 14 
 
 Jan. 14 
 Jan. 21 
 
 Jan. 21 
 
 Jan. 24 
 
 Jan. 26 
 
 Jan. 28 
 
 Jan. 28 
 
 Jan. 31 
 
 Feb. 4 
 
 Feb. 10 
 
 Feb. 11 
 
 Feb. IS 
 
 Mar. 1 
 
 Decrees of the Dictator of Peru regarding foreign 
 debt of Peru, guano contracts and guano loan, 
 state obligation, release of the "Luxor" and. 
 income tax, inclosed : observations respecting 
 case of the "Luxor"; declension of Mr. Chris- 
 tiancy to express an opinion in regard to it 
 when asked to do so. 
 Damages to American property by Chilian forces : 
 inclosed dispatch fiom consul at Lambayeque 
 repoTtiug same, and letter addressed by Mr. 
 Christiancy to Mr. Osbom informing latter as 
 to the damages, for the purpose of having him 
 bring the matter to the attention of the Chilian 
 Government. 
 Blockades of Peruvian ports ■which Chili pro- 
 claims established, are paper blockades, not 
 effective, and should be disregarded by neutrals ; 
 interdiction of commerce -with Chili by previous 
 administrations of Peru has been annulled. 
 Neutral vessels carrying guano from deposits in 
 poits of Peru which have been occupied by 
 Chilian forces; Peru claims right to seize them. 
 Decrees of Dictator of Peiu respecting Peruvian 
 Niti ate Company, Tights of railway constructors, 
 currency, civil and penal codes, and the value of 
 the paper sole, fixing export tax on sugar, and 
 suppressing a newspaper, inclosed; circulars of 
 Peruvian foreign office respecting inefficiency 
 of blockade established by Chilian navy and 
 denying rights of neutral vessels to transport 
 guano from Peruvian deposits which are, now 
 m possession of Chili, also inclosed; instruc- 
 tions on last-mentioned subject requested. 
 
 Progress of war 
 
 Recognition of Pierola's government : leaves time 
 
 ana manner of, to minister's discretion. 
 Recognition of Pieiola's government: question of, 
 
 is left to ministers. ' 
 Blockade of Mollendo by Chilian forces: instruc- 
 tion given by legation to consular agent at Arica 
 respecting observance of, inclosed. 
 Submits question as to rights of consul at Iquique, 
 which is now in possession of Chilian troops, to 
 giant clearances to vessels loaded with nitrate 
 taken from beds which belong to Peru, but are 
 now in possession of Chili ; letter to the consul 
 advising him not to give clearances to such ves- 
 sels and instructing him as to his duties in his 
 present anomalous position, inclosed. 
 Recognition of Pierola's government: ceremonial 
 
 letter received ; friendly expressions. 
 Recognition of Pierola's government: instructed 
 to recognize Pierola's government if he has not 
 already done so; note of the 31st ultimo from 
 Department to Peruvian charge, inclosed. 
 Recognition of Pierola's government: note to 
 foreign office recognizing said government, in- 
 closed. 
 Belligerent rights: refers to his No. 112, and in- 
 closes letter to consul at Iquique, stating that 
 in his previous letter by granting of clearances 
 he meant delivery to vessels of their papers. 
 Damages to American property by Chilian forces 
 at Lobos Island ; action of legation as reported 
 in No. 105 approved. 
 Denies right of Peru to seize neutral vessels loaded 
 with nitrates taken from beds which belong to 
 Peru, but which are now in military possession 
 of Chili, as treaty provides that free ships make 
 free goods ; instructed to enjoin Peru not to en- 
 force her claimed rights ; reply to No. 106 ; notes 
 to foreign office in reply to its circulars in- 
 closed for delivery. 
 Neutral vessels loaded with nitrate taken from 
 beds which belong to Peru and are now in mili- 
 tary possession of Chili; right claimed by chili 
 to seize same; United States legUion at Lima 
 will inform Peru of Department's views on sub- 
 ject; reply to note of 14th January. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 3. PERU— Continued 
 
 XXI 
 
 Mr. Evarts to Mr. Calderon 
 
 Mr. Evarts to Mr. Chris* 
 
 tianoy (No. 64). 
 
 Same to same (No. 65) . 
 
 Mr. Christiancy to Mr. Ev- 
 arts (No. 123). 
 
 Mr. Tracy to Mr. Evarts . . . 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 69). 
 
 Mr. Christiancy to Mr. Ev- 
 arts (No. 133). 
 
 Mr. Calderon to Mr. Tracy. . 
 
 Mr. Evarts to Mr. Tracy . . - 
 
 Mr. Christiancy to Mr. Ev- 
 arts (No. 137;. 
 
 Same to same (No. 138) 
 
 Same to same (No. 139) . 
 
 Same to same (No. 140) . j. 
 
 Same to same (No. 145) . 
 
 Mar. 1 
 
 Mar. 2 
 
 Mar. 3 
 
 Mar. 9 
 
 Mar. 10 
 
 Mar. 17 
 
 Mar. 17 
 
 Mar. 22 
 Mar, 23 
 
 Mar. 24 
 
 Mar. 24 
 
 Mar. 31 
 
 Blockades established by Chili at Peruvian ports : 
 inefficiency of; if Chili seizes any American ves- 
 sel for entering a port which, is insufficiently 
 blockaded she will be required to make repara- 
 tion ; reply to note of 14th January. 
 
 Blockade of Mollendo by Chilian squadron; lega- 
 tion's instruction to consular agent at Arica 
 relatiye to, approved ; instructed to take no 
 notice of any manifesto on subject unless it is 
 addressed to him in his official capacity. 
 
 Belligerent rights of Peru : question as to author- 
 ity of consul at Iquique, which is now in posses- 
 sion of the Chilians, to grant clearances to ves- 
 sels loaded with nitrates taken from beds be- 
 longing to Peru, but now in military possession 
 of Chili; No. 112received; consuls have no right 
 to grant clearances under any circumstances; 
 local authorities alone have such rights ; when 
 these authorities grant vessels clearances con- 
 suls should deliver to such vessels their papers ; 
 consul cannot gainsay opinion of the existing 
 authority at his port as to what may be law- 
 fully exported ; Peru's resentment at exporta- 
 tion of these nitrates is natural, but her asser- 
 tion of right to seize neutral vessels loaded with 
 them is contrary to public law and will not be 
 admitted by foreign governments. 
 
 Decrees of Dictator of Peru inclosed; calls 
 special attention, to one of them restraining 
 newspaper attacks upon individuals and pri- 
 vate character ; the principle of this decree 
 might be adopted advantageously by other 
 countries.- 
 
 Refutation of recent newspaper statement that 
 Bolivia had deserted Peru. 
 
 Recognition of government of Pierola; action of 
 legation, as reported in 115, approved- 
 
 Progress of war: bombardments by Chilian na- 
 val forces. 
 
 Protest of Peru against Chili's barbarous mode 
 of warfare, and her course in regard to Peru- 
 vian nitrate deposits ; insufficiency of block- 
 ades established by Chili ; neutral vessels dis- 
 posing, for benefit of Chili, of nitrates which 
 Peru considers hers, regarded by Peru as ene- 
 my's vessels ; Chili wages war against neutrals ; 
 friendly feeling of United States towards both 
 belligerents; her readiness to mediate; circu- 
 lars and decrees inclosed. 
 
 His note of 9th instant, denying rumor of deser- 
 tion of Peru by Bolivia, acknowledged. 
 
 Progress of war: barbarous warfare waged by 
 Chili; commendation of the present Govern- 
 ment of Peru. 
 
 Rights of humanity are paramount to belligerent 
 rights ; diplomatic corps is to have a conference 
 in which Mr. Christiancy will advocate a pro- 
 test against Chili's inhuman mode of warfare; 
 circular of Peruvian Government respecting the 
 inhumanity of Chili's war, and declaring neu- 
 tral vessels loading guano from the Peruvian 
 beds which are in possession of Chili to be ene- 
 my's vessels, inclosed. 
 
 Trade between United States aod Peru : how it 
 could be increased; Peru will subsidize an 
 American line of steamers ; Peru's hostile feel- 
 ing towards England, and kind feeling towards 
 the United States. 
 
 Dispatch from consul at Lambayeque, protesting 
 against wanton destruction of life and property 
 which Chili proposes to engage in, inclosed; 
 Mr. Christiancy has sent a copy of it to the 
 United States legation at Santiago. 
 
 Protest of American citizens in Peru against 
 mode of warfare adopted by Chili, inclosed; 
 diplomatic corps considering what steps to take 
 for protection of rights of neutrals; Chili's bar- 
 barous mode of warfare. 
 
XXII AFFAIRS BETWEEN CHILI, PE£U, AND BOLIVIA. 
 
 3. PERU— Continued. 
 
 .From whom and to whom. 
 
 Date. 
 
 Subject. 
 
 Mr. Christiarfoy to Mr. Ev- 
 arts.(No.l48). 
 
 Same to aame (No. 151). 
 
 Same to same (No. 156) . 
 
 Same to same (No. 157). 
 
 Mr. Evarta to Mr. Chris- 
 tiancy (No. 76). 
 
 Same to same (No. 77) . 
 
 Mr. Tracy to Mr. Evarts. . . 
 Mr. Evarta to Mr. Tracy. . . 
 
 Mr. Christiancy to Mr. Ev- 
 varts (No. 159). 
 
 Same to aame (No. 162) 
 
 Same to same (No. 165) 
 
 Same to same (No. 172) 
 
 Same to same (No. 173) 
 
 Same to aame (No. 175) 
 
 Same to same (No. 177) 
 
 Same to same (No. 178) . 
 Same to aame (No. 179). 
 
 Mr. Hay to Mr. Chriatiancy 
 (No. 90). 
 
 Mr. Chriatiancy to Mr. Ev- 
 arts (No. 183)'. 
 
 1880. 
 Apr. 6 
 
 Apr. 6 
 
 Apr. 14 
 
 Apr. 
 
 18 
 
 Apr. 
 
 19 
 
 Apr. 
 
 23 
 
 Apr. 
 
 26 
 
 Apr. 
 
 28 
 
 Apr. 
 
 28 
 
 May- 
 
 5 
 
 May 
 
 12 
 
 May 
 
 28 
 
 June 
 
 7 
 
 June 10 
 
 June 13 
 
 June 19 
 
 June 20 
 
 June 30 
 
 July 
 
 5 
 
 Belligerent rights : duty of consul at Iquique re- 
 specting delivery of ship's papers to vessels 
 loaded with guano taken from Peruvian beds 
 now in possession of Chili; copy of Depart- 
 ment's 65 sent to consul. 
 
 Neutral vessels loaded with guano taken from 
 Peruvian Tbeds now in possession of Chili; note 
 to, foreign office denying light of Peru to seize 
 same, inclosed ; impracticable for Peru to make 
 such seizure ; reply to No. 63. 
 
 Progress of war : blockade of Callao by Chilian 
 naval vessels; liberal warning given neutrals 
 and non-combatants of impending bombard- 
 ment; further depreciation of Peruvian paper 
 currency. 
 
 Progress of war: proposed bombardment of Cal- 
 lao; correspondence between diplomatic corps 
 and Chilian admiral respecting immunity of 
 neutrals, inclosed. 
 
 Menacing and violation of neutral rights by Chili ; 
 protest will be addressed to Chilian minister 
 here against injury to the United States citi- 
 zens; instructed to protest to Peru, in event of 
 her resorting to wanton destruction of life and 
 property, as Chili has done ; reply to 140. 
 
 Exchange of prisoners of war between Bolivia 
 and Chili; No. 3 to the United States minister 
 at La Paz inclosed. 
 
 Blockade of Callao by Chilians, and substitution of 
 other entry ports by Peru for Callao, reported. 
 
 Blockade of Callao by Chilians and opening of 
 other ports by Peru instead : announcement of, 
 received and communicated to Treasury. 
 
 Progress of war: bombardment of Callao ; insig- 
 nificance of its effect; blockade of Ancon by 
 the Chilians apprehended. 
 
 No fighting since dateof legation's No. 159 ; block- 
 ade of Callao is strictly enforced ; blockade of 
 Ancon expected. 
 
 Eebombardmentof Callao; very little damagedone; 
 blockade of Ancon by the Chilians; rumored 
 victory for Peruvian troops ; there is no talk of 
 peace. 
 
 Nothing can be done towards restoration of peace 
 until after a decisive battle on land ; Peru will 
 not accept such humiliating terms as Chili is 
 likely to offer; correspondence with the United 
 States minister at Santiago inclosed. 
 
 Chilian sucesses on land; capture of Tacna; Pe- 
 ruvian heroism in a naval engagement; peace 
 question. 
 
 Chili prefers charges against Consul Merriam, at 
 Iquique, of assisting Peru in the war ; corre- 
 spondence with United States minister at San- 
 tiago, and letter to consul requesting explana- 
 tions, inclosed. 
 
 Capture of Tacna and Arica by the Chilians ; 
 defeat of the allies at Tacna was a crushing 
 one ; peace question ; conversation with Presi- 
 dent Pierola; services of diplomatic corps of- 
 fered him for peace in event of Chili's making a 
 proposition. 
 
 Blockade of Chancay by the Chilian navy; out-* 
 ragpous conduct of the Chilian soldiery at Arica. 
 
 Proclamation of President Pierola respecting the 
 defeat of the allies at Tacna inclosed ; it is very 
 defiant and may conduce to peace; prolccols 
 respecting federation of Peru and Boliv a in- 
 closed ; it is proposed that the federation take 
 place m .December, 1880; riae in the va'ue of 
 the paper sole of Peru. 
 
 Charges preferred by Chili against Mr. Memam 
 consul at Iquiquejof assisting Peru in the war- 
 mstracted to investigate the same, and if they 
 prove well founded, to remove Mr-IMeniam 
 
 Particulars of the capture of Tacna and Ai ica by 
 the Chilians ; gross barbarities committed by 
 them ; destruction of the Chilian transport 
 *• a e ; , 1Ilsult to American fl&g and destruc- 
 tion of the house occupied and owned by Charles 
 A. Nugent, the Uuitud States consular a«-ent 
 (ltbeing the consulate), by the Chilians at Arica 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. XXIII 
 
 3. PERU— Continued. 
 
 Mr.ChristiancytoMr. Evarts 
 
 (No. 184). 
 
 Same to same (No. 185) 
 
 Mr. Evarts to Mr. Chris. 
 
 tiancy (No. 93). 
 
 Mr. Christiancy to Mr. Ev- 
 arts (No. 190). 
 
 Mr. Hay to Mr. Christiancy 
 (No. 97). 
 
 Same to same (No. 99) 
 
 Same to same (No. 102) 
 
 Mr. Cliristiancy to Mr. Ev- 
 arts. 
 
 Same to same (No. 191) 
 
 Same to same (No. 194) . 
 
 Same to same (No. 195). 
 Same to same (No. 197) . 
 
 Same to same {No. 19 
 
 Mr. Garcia to Mr. Evarts 
 
 Mr.Christiancy to Mr. Evarts 
 
 (telegram) . 
 Same to same (No. 200) . . . 
 
 Same to same (No. 202) . 
 
 1880. 
 July 8 
 
 July 9 
 July 30 
 
 Aug. 14 
 
 Aug. 16 
 Aug. 16 
 Aug. 25 
 
 Sept. 12 
 Sept. 13 
 
 Sept. 17 
 
 Sept, 18 
 Sept. 30 
 
 Oct. 24 
 
 Oct. 25 
 
 Oct, 27 
 Nov. 2 
 
 No prospect of peace until capture of Lima ; state- 
 ment of condition of Peruvian army. 
 
 Decrees of government inclosed and discussed — 
 
 Mode suggested by United States minister at 
 Santiago of rendering good offices of United 
 States available for cessation of hostilities ap- 
 proved ; confirms Department's telegram of 29th 
 instant. 
 
 Peace : reports his intention to start to-morrow 
 for Santiago to negotiate for; European inter- 
 vention ; has confidential but authentic infor- 
 mation that Chili is -willing to make aproposition 
 for peace through a third power. 
 
 Mediation ; advises him of disposition of Chili to 
 accent our mediation and as\s what is the dis- 
 position of Peru. 
 
 Iquique : charges vs. Consul Merriam of having 
 assisted Peru in the war, preferred by Chili; 
 approves course reported in his 175. 
 
 Outrage perpetrated upon the United States con- 
 sul and flag at Arica by Chilian soldiery; fur- 
 ther information relative to requested ; reply to 
 No. 183. 
 
 Reasons for going to Santiago ; learned through 
 an intercepted letter of Chili's disposition to 
 negotiate for peace. 
 
 Mediation of the United States : acceptance by 
 Chili; Peru will accept formally to-day; unsuc- 
 cessful steps towards mediation taken by other 
 powers; Bolivia's views requested; form ot 
 proposed mediation. 
 
 Peru accepts mediation of United States, bat pro- 
 tests^ against levying by -Chilian forces upon 
 private property on northern unfortified coast 
 of Peru; note inclosed; efforts of Mr. Chris- 
 tiancy for protection of neutral property and 
 for cessation of hostilities during peace negotia- 
 tions ; refusal of Chili to assent to armistice 
 would be disrespectful to the United States, and 
 would prevent mediation ; reports his explana- 
 tion to diplomatic corps at Lima of his proceed- f 
 iugs; chagrin of Italy, France, and England 
 at non-acceptance of their mediation ; notes to 
 Chilian commanders and to our minister at San- 
 tiago iaclosed. 
 
 Charges preferred against consul at Iquique, of 
 assisting Peru in the war; consul denies the 
 same; charges notsubstantiated; replytoNo. 90. 
 
 Arbitration of the United States is now preferred 
 by Peru to mediation, owing to belief that 
 Chili's demands will be too exorbitant, but she 
 has yieldedto Mr. Christiancy's persuasion to 
 proceed to negotiation under our mediation ; 
 Chilian outrages so exasperated Pern that the 
 conference project would have failed had it not 
 been for Mr. Christiancy's strenuous efforts to 
 save it. 
 
 Conference: energetic and finally successful ef- 
 forts of Mr. Christiancy to bring negotiators 
 together; first meeting; Chilian proposition 
 submitted; demauds very excessive and seem- 
 ingly not to be insisted upon ; another meeting 
 to-morrow, at which reply of the allies will be 
 • submitted. 
 
 Mediation of United States for peace between 
 Peru and Chili ; states that Peru has accepted 
 same and deserves great credit for doing so ; has 
 little orno hope of successful termination of peace 
 .negotiations, owing to the probable insistence 
 by Chili upon terms thatPeru cannot accept. 
 
 Failure of peace negotiations ; Peru refuses Tara- 
 paea ; Chili rejects arbitration of United States. 
 
 Conference: failure of; blames Chili therefor; 
 Chili prevented from malting peace by popular 
 feeling for war; protocols of proceedings of 
 peace conference inclosed ; expected attack on, 
 and pillaging of, Lima. 
 
 Arbitration of the United States : gives text of 
 his telegrams of 28th ultimo and 1st instant ; 
 states his reasons for sending the said tele- 
 grams; unwillingness of Mr. Osborn to telegraph 
 that Chili had refused arbitration of the United 
 States. 
 
XXIV AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 3. PERU— Continued. 
 
 No. 
 
 From whom and to whom. 
 
 Subject. 
 
 287 
 
 Mr. Christiancy to Mr.Evart i 
 (No. 204). 
 
 Mr. Calderon to Mr. Evarts 
 
 Mr. Hay to Mr. Christiancy 
 (No. 108). 
 
 Mr. Christiancy to Mr. Ev- 
 arts (No. 209). 
 
 1880. 
 Nov. 5 
 
 Nov. 5 
 
 Nov. 9 
 
 294 
 295 
 
 296 
 
 297 
 
 298 
 
 299 
 
 Mr. Evartsfto Mr. Garcia. . 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 109). 
 
 Mr. Garcia to Mr. Evarts. . 
 
 Mr. Evarts to Mr. Garcia. . 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 112). 
 
 Mr. Garcia to Mr. Evarts . 
 
 Mr. Hay to Mr. Garcia . 
 
 Mr. Christiancy to Mr. Ev- 
 arts (No. 226). 
 
 Same to same (No. 230) . 
 
 Nov. 13 
 
 Nov. 27 
 
 Nov. 27 
 
 Dec. 1 
 Dec. 13 
 
 Dec. 18 
 
 Dec. 22 
 
 Dec. 31 
 
 1881. 
 Jan. 22 
 
 300 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 119). 
 
 Jan. 25 
 
 Peace negotiations at Arica: reports that Bolivia 
 
 made a proposition which would have furnished 
 
 a fair basis of agreement, and Peru would have 
 
 • farthered it, but was prevented from doing so 
 
 by Chili's refusal \o make any concession. 
 
 Responsibility of the war and its attendant hor- 
 rors : circular exonerating Peru from, and charg- 
 ing Chili with, and condemning Chili's methods 
 and motives; protocols of proceedings of peace 
 conference inclosed. 
 
 Charges preferred against consul at Iquique of 
 assisting Peruvians in the war: approves in- 
 vestigation of legation ; instructed to give 
 pioper attention to any further evidence in. the 
 matter which may be adduced. 
 
 Intervention of England and France : grounds for 
 apprehending same stated ; British and French 
 ministers opposed our mediation, and urged 
 cession of Tarapaca ; their motive was protec- 
 tion of interests of bondholders ; admitting 
 such cession to be wise, it is not proper for a 
 foreign power to dictate it and thus intrench 
 on the sovereign prerogatives of the allies ; in- 
 tervention would be tantamount to giving ac- 
 tive aid to victorious Chili to crush Peru; will 
 protest against it if attempted. 
 
 Mediation of United States between Peru and 
 Chili: advises him of failure of; regret and 
 chagrin of Department; United States will wel- 
 come any further opportunity it may have pre- 
 sented to it to promote restoration of peace ; 
 reply to note of 25th ultimo. 
 
 Neutrals: protection of lives and property of, 
 in the event of an attack by the Chilians upon 
 Lima; gives text of Department's telegram of 
 19th instant to legation at Santiago. 
 
 Mediation of the United States for peace between 
 Peru and Chili: telegram received from his 
 government reporting failure of peace negotia- 
 tions inclosed. 
 
 Mediation of the United States between Peru 
 and Chili : failure of peace negotiations re- 
 gretted; note of 27th ultimo received." 
 
 Peace negotiations : failure of regretted ; the 
 United States still stands ready to do whatever 
 it properly can to bring about peace ; reply to 
 No. 200. 
 
 Peace negotiations under auspices of United 
 States : circular of his government exonerating 
 Peru from, and charging Chili with, blame for 
 failure of, inclosed. 
 
 Mediation of United States between Peru and 
 Chili: failure of; his note of 18th instant trans- 
 mitting circular from his government censuring 
 Chili received. 
 
 Peace question : attacks of Chilian press upon 
 course pursued by Mr. Christiancy; result of 
 Mr. Osborn's excessively friendly disposition 
 towards Chilian Government and malice of Mr. 
 Montjoy, consul at Lambayeque towards Mr. 
 Christiancy ; letter to Mr. Osborn in which Mr. 
 Christiancy vindicates his course inclosed ; un- 
 fair treatment of Mr. Christiancy by Mr. Os- 
 born. 
 
 Capture of Lima by the Chilians : dangerous posi- 
 tion and undignified movements of the diploma- 
 tic corps on the occasion ; conduct of the 
 Chilians in and around Lima ; refugees in lega- 
 tion ; outrages to property under protection of 
 United States legation at Lima resulting from 
 conduct of United States minister at Santiago 
 and consul at Lambayeque ; Pierola, the only 
 government of Peru, is a fugitive; Chilians 
 would like him to come back to treat for peace. 
 
 Neutrals: jeopardization of lives and property of 
 by Pern in sending adrift vessels loaded with" 
 explosive materials; instructed to remonstrate 
 if he shall ascertain that such course has been 
 pursued by Peru. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 3, PERU— Continued. 
 
 XXV 
 
 303 
 
 304 
 
 305 
 
 Mr. Christiancy to Mr. Ev- 
 arts(No.237). 
 
 Mr. Pierola to Mr. Garcia . . . 
 
 Mr. Evarts to Mr. Chris- 
 tiancy (No. 123). 
 
 Mr. Christiancy to Mr. Ev- 
 arts (No. 240). 
 
 Same to same (No. 242) . 
 
 306 Mr. Evarts to Mr. Chris- 
 tiancy (No. 129). 
 
 Mr. Christiancy to Mr. Ev- 
 arts (No. 243). 
 
 308 
 309 
 
 Same to same (No. 245) . 
 Same to same (No. 251). 
 
 Same to same (No. 253) . 
 
 Same to same (No. 254) . 
 
 Feb. 8 
 
 Feb. 10 
 
 Feb. 15 
 
 Feb. 17 
 
 Feb. 19 
 
 Feb. 25 
 Mar. 8 
 
 Mar. 8 
 
 Mar. 9 
 
 Account of occupation of Lima by the Chilians: 
 events and outrages previous and subsequent 
 thereto; .Chilian commander doing all in his 
 power to restrain lawlessness ; Peruvian rabble 
 incensed at action of neutrals in the interest of 
 order; peace question ; Chilians embarrassed by 
 their victory; no Government of Peru accessi- 
 ble to treat with ; question as to responsibility 
 for violation of armistice which resulted in bat- 
 tle of Miraflores ; Chilians have declared unwill- 
 ingness to accept mediation of a foreign govern- 
 ment for peace. 
 
 Evacuation of Lima and Callao by the Peruvians : 
 Government of Peru determined to resist to the 
 last extremity, but not unwilling to treat for 
 peace upon honorable terms; would like the 
 United States to arbitrate peace question. 
 
 Desire of United States to bring about peace : in- 
 structed to urge same upon Peruvian Govern- 
 ment, and upon such Chilian officers as he may 
 meet; Peruvians having evacuated Lima and 
 Callao, Peru desires foreign aid in behalf of 
 peace, as appears from a telegram just received 
 from the Peruvian minister here. 
 
 Neutral property: destruction of, by Chilians 
 when they wantonly burned the towns of Chor- 
 rillos, Barranco, and Miraflores; consequent 
 claims; instructions as to course to pursue in 
 regard to them requested; correspondence in- 
 closed. 
 
 Foreign mediation declined by Chili, who will not 
 treat with Pierola until a note offensive to Chili 
 written by his secretary to' dean of diplomatic 
 corps be "withdrawn ; Pierola a fugitive in the 
 mountains ; until he resigns none of the promi- 
 nent men of Peru will assume reins of govern- 
 ment; courts in Peru refuse to perform their 
 functions; martial law has been established in 
 consequence; commendable conduct of Chilians 
 ' in Lima for preservation of order: Peru ^pros- 
 trate and under complete control of Chili; 
 terms of peace will bes uch as Chili chooses to 
 dictate; Peru will probably have to surrender 
 a great deal more than Tarapaca; levying of 
 forced contributions by Chilians ; possibility of 
 partitioning of Peru among her neighbors, Chili, 
 Ecuador, and Brazil. 
 
 Scheme of the Societe ge'nerale de cr6dit indus- 
 trial et commercial for liquidation of financial 
 obligations of belligerents : authorized to sub- 
 mit the same for consideration in coonection 
 with discussion of peace question ; may advise 
 Mr. Osborn and Mr. Adams. 
 
 Offensive note written by Pierola's secretary 
 which Chili insists on being withdrawn, in- 
 closed with comments; the note charges the 
 Chilians with various misdeeds, the most im- 
 portant being perfidy in violating armistice and 
 attacking the Peruvians at Miraflores ; Mr. 
 Christiancy thinks this charge not well founded, 
 but believes in the others, viz, murdering of 
 wounded Peruvians and destruction of towns. 
 
 New government project: prospects of success or 
 failure ; Chili, has declined to treat with Pierola ; 
 position of Bolivia. 
 
 Explosive materials : practice of Peru in setting 
 adrift vessels loaded with, to damage enemy's 
 cruisers ; knows of only three such cases ; in 
 none of them was neutral commerce j eopardized ; 
 particulars given ; reply to No. 119. 
 
 Mediation of the United States : cannot urge same 
 ' upon Chilian authorities because Chili has de- 
 cided to accept no foreign mediation and will 
 not treat with. Pierola ; explains why ho did not 
 advise Department by telegraph of fall of Lima. 
 
 New government project: failure of ; Pierola has 
 called, election of a congress to be held in .Tune 
 next; Chilians are exacting war contributions 
 from Peruvians; injustice of doctrine of war 
 contributions, especially as practiced by Chil- 
 ians; rumored vandalistic intentions of Chilians; 
 
XXVI AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 3. PERU— Continued. 
 
 312 
 
 314 
 
 315 
 
 316 
 317 
 
 318 
 319 
 
 320 
 321 
 
 322 
 
 323 
 324 
 
 Mr. Christianoy to Mr. Ev- 
 
 arts (No. 254) — Continued. 
 
 Same to same (No. 256) . 
 
 Same to same (No. 257) . . 
 Same to same (No. 261* . . 
 
 Same to same (No. 262) . 
 
 Same to same (No. 263) '. . 
 Same to same (No. 264) . 
 
 Same to same (No. 265). 
 Same to same (No. 266) . 
 
 Same to same (No. 273) 
 Same to same (No. 276) 
 Same to same (No. 277) 
 
 Same to same (No. 278) . 
 Same to same (No. 282) . 
 
 Same to same (No. 283) . 
 Same to same (No. 285) . 
 
 1881. 
 Mar. 9 
 
 Mar. 16 
 
 Mar. 21 
 
 Mar. 21 
 
 Mar. 22 
 Mar. 23 
 
 Mar. 23 
 Mar. 23 
 
 Mar. 31 
 Apr. 4 
 Apr. 4 
 
 Apr. 5 
 Apr. 13 
 
 Apr. 13 
 Apr. 17 
 
 rapine and bloodshed vehemently advocated by 
 most influential portion of Chilian press; cir- 
 cular issued by Pierola deprecatory of Chili, 
 and orders of Chili as to war contributions, in- 
 closed. 
 
 "Vandalism of Chili in taking away from Peru 
 works of art, libraries, Laboratories, &c, re- 
 ported: Mr. Christiancy would like to protest; 
 motives which have prevented him from doing 
 so. 
 
 New government project: revival and success of; 
 formation of a new provisional government; 
 F. G-. Calderon, president, M. M. Galvez, minis- 
 ter for foreign affairs ; newspaper accounts in- 
 closed ; question as to recognition of new gov- 
 ernment submitted. 
 
 Foreign mediation : indisposition of Chili to ac- 
 cept Same; her apparent determination to make 
 Peru suffer the utmost of national humiliation ; 
 foreign intervention the only thing that can 
 prevent this determination ; injurious to the in- 
 terests of neutrals to have Peru humiliated; 
 has informed Chili of the desire of the United 
 States to bring about a lasting peace ; reply to 
 No. 123. 
 
 Peace question: scheme for restoration of peace 
 by means of financial arrangement; only the 
 active intervention of United States can be in- 
 fluential now ; annexation, of Pern to United 
 States suggested, or establishment of a protect- 
 orate over Peru by United States ; Great Brit- 
 ain more influential with Chili. 
 
 Vandalism of Chilians in taking from Peru works 
 of art, &c. : letter from Peruvian librarian re- 
 porting and deprecating same inclosed. 
 
 Views of the United States in regard to accom- 
 plishment of peace communicated to new gov- 
 ernment: recognition of new government ; has 
 informed new minister for foreign affairs that 
 new government will be recognized by United 
 States as soon as by people of Peru ; I. M. Can- 
 tuarias has been sent to United States as envoy 
 of new government. 
 
 "Vandalism of Chilians in taking works of art, &c, 
 from Peru: newspaper article vindicating same 
 inclosed. 
 
 "War contribution exacted from Peru by Chili : 
 steps taken by new government for payment of ; 
 time extended, by Chili; new government has 
 called upon the people for loan of the money ; 
 terms of loan ; provisions for its reimbursement; 
 hardly probable that it will be voluntary; likely 
 that it will be forced. 
 
 New government seems unlikely to be ace ep te .1 by 
 people of Peru. 
 
 Vandalism of the Chilians: modifies statement 
 contained in his No. 256. • 
 
 "War contribution: proposed exaction of, from 
 Americans; denies right of Peru to make such 
 exaction ; has advised Americans if they pay at 
 all to pay under protest ; new government has 
 thus far lost rather than gained in popular favor ; 
 provinces on which it relied for support adhere 
 to Pierola. 
 
 Confederation between belligerents: advocacy of, 
 by Chilian press of Lima and its motives; im- 
 practicability of such confederation. 
 
 Forced loans: non-liability of Americans in Peru 
 to payment of; instructions to consular-agent at 
 Paeasmaya, in the sense of legation's dispatch 
 No. 277, inclosed. 
 
 Calderon's government: majority of people op- 
 posed to; if said government had been formed 
 without the appearance of support of the Chi- 
 lians it would probably have been accepted; 
 this government favors peace; Pierola is for 
 continuance of war. 
 
 Progress of war : reasons for supposing that Chili 
 intends to attempt conquest and annexation of 
 the whole of Peru ; Pierola is keeping up a show 
 of government in his mountain asylum. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA., XXVII 
 
 3. PERU— Continued. 
 
 Erom whom and to whom. 
 
 Subject'. 
 
 Mr. ChristiancytoMr. Blaine 
 (No. 286) 
 
 Mr. Elmore to Mr. Blaine, 
 
 Mr. Christiancy to Mi. Blaine 
 
 Same to same (No. 292) — 
 
 Same to same (No. 295).. 
 Same to same (No. 296). 
 
 Mr. Blaine to Mr. Christiancy 
 
 (No. 143). " 
 Same to same (No. 144)... 
 
 Mr. ChristiancytoMr. Blaine 
 
 (No. 301). . 
 Same to same (No. 302)... 
 
 Same to same (No. 305) . 
 Same to same (No. 310). 
 
 Mr. Blaine to Mr. Hurlbut 
 (No. 2). 
 
 1881. 
 Apr. 19 
 
 May 4 
 
 May 4 
 
 May 5 
 
 May 8 
 
 May 9 
 
 May 9 
 
 May 12 
 
 May 17 
 
 May 17 
 
 May 23 
 
 May 27 
 
 June 15 
 
 Mr. ChristiancytoMr. Blaine 
 
 (No.-319). 
 Same to same (No. 1J20) . . - 
 
 Same to same (No. 322) . 
 
 Same to same (No. 327) . 
 
 Same to same (No. 330) . 
 
 Mr. Hurlbut to Mr. Blaine 
 (Memorandum). 
 
 Mr. Elaine to Mr. Hurlbut 
 (No. 7). 
 
 June 16 
 June 21 
 
 June 28 
 July 6 
 
 July 12 
 
 July 16 
 Aug. 4 
 
 Political: Chilian newspaper article on situation 
 in Peru, which strengthens suspicions set forth 
 in his No. 285 regarding acquisitionary designs 
 of "Chili, inclosed. 
 
 Calderon government : recognition of, requested ; 
 copy oi his credentials inclosed ; Peru desires 
 intervention of United States for restoration of 
 peace. 
 
 Wretched condition of Peru: subjugatory designs 
 of Chili; their realization will injuriously affect 
 our trade; Great Britain's control of South 
 Amerioan trade; how United States might gain 
 control; recommends annexation of Peru by 
 United States. 
 
 Miraflor'es : breach of armistice at ; statement of 
 diplomatic corps inclosed, from which Mr. Chris- 
 tiancy deduces that Chilians are responsible 
 therefor. 
 
 "War contributions : Peruvian authorities at Pas- 
 camaya have desisted from levying same on 
 United States citizens. 
 
 Annexation of Peru to Chili: the latter has de- 
 clared her intention to annex all the western 
 part of Peru; foreign intervention the only 
 means to prevent it; no power will intervene 
 unless it be the United States. 
 
 Calderon government : authorizes recognition of.. 
 
 Forced loans: non-liability of Americans in Peru 
 to ; his views as reported in his No. 282 approved. 
 
 Calderon government: rumor of recognition of, 
 by United States ; asks if it is correct. 
 
 Calderon government is gaining strength: prob- 
 able that Chili does not intend to occupy Peru ; 
 if Calderon gets Congress together Mr. Chris- 
 tiancy will recognize his government 
 
 Movements of Chilian troops: information as to 
 Pierola's whereabouts and doings: 
 
 Recognition of Calderon government: note to 
 Calderon 's minister of foreign affairs explain- 
 ing attitude of the United States in regard to 
 the recognition question inclosed; Pierola's do- 
 ings. 
 
 Peace question: instructed to encourage Peru- 
 vians to accept reasonable conditions, and to im- 
 press upon Chilian authorities in Peru the advan- 
 tages of liberal treatment of P^ru by their gov- 
 ernment; course which Peru should pursue so 
 as to avoid loss of territory in indemnification 
 of Chili; directed to aid Peru in pursuing this 
 course ; United States would assist the execu- 
 tion of any satisfactory plan for satisfying 
 Chili's demands by moans of money; No. 2 to 
 legation at Santiago inclosed. 
 
 Recognition of Calderon government: difficulties 
 in the way of, set forth. 
 
 Calderon government : recognition of ; discussion 
 of question ; reasons for withholding recogni- 
 tion ; Chili's policy is subjugation; Calderon 
 government not yet a government de facto. 
 
 Recognition, note of, addressed to Calderon's min- 
 ister of foreign affairs, inclosed: obedience to 
 instructions and desire to avoid personal criti-' 
 cism caused him to recognize the Calderon gov- 
 ernment, which is not yet worthy of recognition. 
 
 Recognition of Calderon government was prema- 
 ture: additional reasons for thinking so; Mr. 
 Christiancy, however, justifies his act nf recog<- 
 nition on the ground that it was in obedience to 
 Department's orders. 
 
 Political organization of Calderon government: 
 meeting of Congress; continuation of Mr. Cal- 
 deron as president until election of a successor; 
 circular announcing same inclosed. 
 
 Political situation of South American States : re- 
 lations between them ; their respective attitudes 
 in regard to pending questions. 
 
 Claims of United! Statns citizens vs. Peru; growing 
 out of contrarts: Cochet claim and claim or 
 John C. Landreau; instructed to report on 
 former, and to demand justice in the case of the 
 
XXVIII AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 3. PERU— Continued. 
 
 No. 
 
 From whom to -whom. 
 
 346 
 
 347 
 
 Mr. Elaine to Mr. Hurlbut 
 (No. 7) — Continued. 
 
 Mr. Hurlbut to Mr. Blaine 
 (No. 2). 
 
 Same to same (No. 5). 
 
 1881. 
 Aug. 4 
 
 Aug. 10 
 
 Same to same (No. 6) . 
 
 350 
 
 352 
 353 
 
 Same to same (No. 8) . 
 
 Mr. Blaine to Mr. Elmore . . . 
 
 Mr. Elmore to Mr. Blaine . . . 
 Mr. Blaine to Mr. Elmore . . . 
 
 Mr. Hurlbut to Mr. Blaine 
 (No. 11). 
 
 Same to same (No. 12) . 
 
 356 
 357 
 
 358 
 
 Same to same 
 
 Same to same (No. 14) . 
 
 Same to same (No. 16). 
 
 Aug. 24 
 
 Aug. 27 
 
 Aug. 27 
 
 Aug. 29 
 
 Aug. 31 
 
 Sept. 13 
 
 Sept. 14 
 
 Sept. 14 
 Sept. 21 
 
 Oct. 4 
 
 latter; in treaty of peace between Chili and 
 Pern, provision must be made for recognition 
 by Chili of Landreau's claim as a prior lien 
 upon any territory which Peru may be required 
 to cede to Chili ; sets forth denial of justice in 
 Mr. Landreau's case. 
 
 Political and military situation of Peru: prepara- 
 tions for peace negotiations between Chili and 
 Peru : policy of Chili ; Mr. Hurlbut urges that 
 the "United States intervene to prevent disinte- 
 gration of Peru; letter to United States min- 
 ister at Santiago, stating situation of affairs 
 and suggesting course which should be pur- 
 sued, inclosed. 
 
 Interruption of negotiations: sudden departure 
 of Chilian negotiator; urges that the United 
 States intervene ; such intervention necessary, 
 and would be welcomed by both parties ; sup- 
 posed intention of Chilians to evacuate Lima, 
 and leave it to be plundered by the mob ; Pierola 
 is still issuing proclamations. 
 
 Peace question : Chili becoming more moderate 
 in her demands; fear of the United States the 
 cause; urges that the United States intervene; 
 such intervention necessary to prevent disinte- 
 gration of Peru, and would be accepted by both 
 belligerents. 
 
 Memorandum given by hini to commander of 
 Chilian forces in Peru, setting forth views of 
 the United States, and its adverseness to disin- 
 tegration of Peru, inclosed; good effect pro- 
 duced by the memorandum. 
 
 Recognition of Mr. Elmore: credentials may be 
 presented at a future time ; will be informally 
 recognized if he will deliver office copy of his 
 credentials. 
 
 Recognition of Mr. Elmore as minister resident of 
 Peru: note of 27th ultimo acknowledged ; thanks 
 for recognition : copy"of his credentials inclosed. 
 
 Recognition of Mr. Elmore : copy of credentials 
 received ; trust to be able before long to arrange 
 for his presentation to the President; reply to 
 note of 29th instant. » 
 
 Reconciliation: negotiations between Calderou 
 government and Pierola's generals of the north 
 and center for; inhuman decrees of Pierola; 
 correspondence with Pierola's secretary in- 
 closed ; Mr. Hurlbut tells him that Pierola's 
 government does not merit recognition, and 
 that Calderon's does; that Chili will recognize 
 any government in Peru that will agree to cede 
 Tarapaca, and that Calderon's government will 
 not so agree ; we ought not to permit prolonged 
 occupancv of Peru by Chilian forces. 
 
 Claims of United States citizens vs. Peru : Lan- 
 dreau and Cochet claims ; No. 7 received ; in 
 view of extraordinary statements of J. R. Ship- 
 herd, attorney for the Cochet claim, and hjs 
 representations of the Department's aggressive 
 attitude respecting said claim, further instruc- 
 tions are requested. 
 
 Political situation: report of J. "W. Quimper on, 
 inclosed, with commendation. 
 
 Intervention : specific instruction as to course to 
 be pursued by him, requested; we have pre- 
 cluded European interference, and if we do not 
 interfere ourselves Peru will be obliged to cede 
 Tarapaca ; deprecates such cession ; possibil- 
 ity of war between Chili and Argentine Repub- 
 lic ; intention of Chili to maintain a large army 
 and navy during the coming year. 
 
 Suppression of Calderon government by military 
 order: correspondence between Admiral Lynch 
 and Calderon -, Peruvian treasury seized by mil- 
 itary authorities of Chili; review of establish- 
 ment and recognition of the Calderon govern- 
 ment and the history of the war ; evident that 
 the aim of the war on part of Chili was to ac- 
 quire the nitrate and guano territory of both 
 Bolivia and Peru. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. XXIX 
 
 3. PERU— Continued. 
 
 From whom and to whom. 
 
 Subject. 
 
 359 
 
 Mr. Hurlbut to Mr. Blaine 
 (No. 19). 
 
 Same to same (No. 20) . 
 
 Same to same (No. 21) 
 
 362 
 363 
 
 Mr. Hitt to Mr. Elmore . . . 
 Mr. Elmore to Mr. Blaine - 
 
 364 ' Mr. Hurlbut to Mr. Blaine 
 ! (No. 23). 
 
 365 Mr. Elmore to Mr. Blaine . . 
 
 Mr. Blaine to Mr. Hurlbut 
 (telegram). 
 
 36^ Same to same (telegram) . . . 
 
 Mr. Hurlbut to Mr. Blaine 
 (No. 24). 
 
 369 
 
 370 
 
 371 
 
 Same to same (No. 25) 
 
 Same to same (No, 26) 
 
 Mr. Blaine to Mr. Hurlbut 
 (No. 17). 
 
 1881. 
 Oct. 5 
 
 Oct. 13 
 
 Oct. 13 
 
 Oct. 13 
 Oct. 21 
 
 Oct. 26 
 
 Oct. 27 
 
 Oct. 27 
 
 Oct. 31 
 
 Oct. 31 
 
 Nov. 2 
 
 Nov. 9 
 
 Nov. 17 
 
 Naval and coaling stations at Chimbote: protocol 
 signed September 20 granting privileges to the 
 United States inclosed ; railroad grant obtained 
 for himself from Peru reported on. 
 
 Political: Arequipa and Puno declare for C aid e- 
 ron; center and north expected to do so ; Calde- 
 ron may move outof Chilian lines; not necessary 
 for Mr. H. to follow ; the opportunity is open 
 for the Uuitcd States to settle the war. 
 
 Peace conference : two Chilian commissioners on 
 their way to Lima; they will hold to the old 
 claim of territorial cession, and conference will 
 be useless unless arbitration be urged and ac- 
 cepted ; illness of General Kilpatrick. 
 Peace question : may call at Department at any time 
 for an interview ; reply to note of 11th instant. 
 
 Peace question : suppression of* Calderon gov- 
 ernment by Chili reported and vehemently de- 
 nounced ; formally applies for intervention of the 
 United States for restoration of peace; without 
 such intervention peace will be impossible; 
 commends course which has been pursued by 
 the United States ; newspaper articles inclosed. 
 
 Peace question: publication and misinterpreta- 
 tion in Chili of the statement of our policy which* 
 Mr. Hurlbut gave to Admiral Lynch ; vindicates 
 the statement ; has succeeded in uniting fac- 
 tions in Peru in support of Calderon; urges 
 early intervention by the United Stutes. 
 
 Suppression of Calderon's government attempted 
 by Chili: iniquitous proceedings; Ciilderon in- 
 tends to resist; his refusal to cede Tarapaca- 
 has caused this attempt on part of Chili ; urges 
 intervention of United States ; explanatory doc- 
 
 * uments inclosed ; armies of the north and south 
 have declared for Calderon. 
 
 Financial schemes: "Influence of your position 
 must not be used in aid of Credit Industriel or 
 any other financial or speculative association." 
 
 Calderon government: "Continue to recognize 
 Calderon government until otherwise specially 
 instructed; acknowledge receipt." 
 
 Peace question : all the Peruvian military forces 
 have recognized Calderon ; this unification of 
 Peru in 'face of opposition of European powers 
 is gratifying as being a successful issue of one 
 of the objects ot Mr. Hurlbut's mission ; con- 
 demns action of Chili for suppression of Calde- 
 ron government ; it is motived by declension of 
 Calderon to qomply with Chili's demand for 
 cession of territory as a condition precedent to 
 peace negotiations. 
 
 Financial schemes : fails to understand Depart- 
 ment's telegTam of October 27 as to use of his 
 influence in support of; it may have been the 
 result of charges preferred against him by agent 
 of Cochet claim ; deprecates the conduct of said 
 agent, Mr. Shipherd; Mr. Hurlbut vindicates 
 himself against charges; letters from Mr. Ship- 
 herd inclosed. 
 
 Political: arrest of President Calderon and his 
 secretary of state; particulars of; popularity 
 of Calderon government and its unwillingness 
 to cede territory to Chili the main motives; 
 another motivo was to rebuke the United States ; 
 secret negotiations have been opened by Chili 
 with Pierola; armed occupation until govern- 
 ment can be framed which will cede territory 
 is Chili's policy. 
 
 Claim of United States citizens vs. Peru: Cochet 
 claim and Landreau claim ; the former is not 
 proper for presentation; United States citizens 
 m purchasing the claim of a Peruvian against 
 his government acquires no more rights than 
 the Peruvian had, and as he had no right to 
 intervention of United States, sucb|right did not 
 pass to the purchasers of his claioi ; Landreau 
 claim should be withheld from presentation 
 until opportunity for its adjustment offers; 
 course reportf din his Nn.l2approved; condemns 
 conduct of J. It. Shipherd, attorney for the 
 Cochet claims. 
 
XXX AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 3. PEKU— Continued. 
 
 Subject. 
 
 Page. 
 
 Mr. Elmore to Mr. Blaine . . 
 
 Mr. Elmore to the President. 
 
 Mr. Elaine to Mr. Hurlbut 
 (No. 18). 
 
 Same to same (No. 19) 
 
 1881. 
 Nov. 18 
 
 Nov. 19 
 Nov. 19 
 
 Nov. 22 
 
 Mr. Hurlbut to Mr. Elaine 
 (No. 23). 
 
 Same to s&me (No. 29) 
 
 Mr. Blaine to Mr. Hurlbut 
 (telegram). 
 
 Mr. Blaine to Mr. Elmore 
 Mr. Elaine to Mr. Hurlbut 
 (No. 21). 
 
 Mr. Hurlbut to Mr. Blaine 
 (No. 30). 
 
 382 Mr. Blaine to Mr. Hurlbut 
 (No. 25). 
 
 Same to same (No. 26) . 
 
 Mr. Hurlbut to Mr. Blaine 
 (No. 32). 
 
 Same to same (No. 33) . 
 
 Same to same (No. 34) . 
 
 Nov. 23 
 
 Nov. 23 
 
 Nov. 
 
 26 
 
 Nov. 
 Nov. 
 
 26 
 
 30 
 
 Nov. 
 
 30 
 
 Dec. 
 
 3 
 
 Dec. 
 
 5 
 
 Deo. 
 
 7 
 
 Dec. 
 
 11 
 
 Dec. 
 
 14 
 
 Peace question: reselute intervention of United 
 • States necessary for just solution of; will 
 shortly furnish Department with an expose of 
 the political situation in Peru. 
 Audience of the President requested for the pur- 
 pose of pleading in behalf of Peru. 
 Financial schemes: explains Department's tele- 
 gram of 27th ultimo; minister's position in re- 
 gard to, for restoration of Peru should be a neg- 
 ative one; in case an opportunity arises for us 
 to he useful in abetting such scheme, minister 
 should take no important step without instruc- 
 tions. % 
 
 Peace question: disapproves memorandum ad- 
 dressed by him to Admiral Lynch, and his note 
 to Pierola's secretary, arid the convention he 
 concluded for establishment of naval stations 
 at Chimbote, and his telegram to legation at 
 Buenos Ayres requesting that a minister be sent 
 by Argentine Republic to Peru; instructed to 
 recognize Calderon government, or, if none such 
 exist, to remain inactive at Lima until receipt 
 of further instructions; in view of differences 
 between him and his colleague at Santiago a 
 special envoy will be sent to arrange settlement 
 of peace question. 
 
 Claim of Cochet heirs vs. Peru: letter from J\ R. 
 Shipherd, attorney for, inclosed ; it offers Mr. 
 Hurlbut a bribe ; Mr. Hurlbut has declined fur- 
 ther correspondence with Mr. Shipherd. 
 
 Indefinite military occupation of Peru the evident 
 purpose ot Chili: injuriousness of such policy 
 to Chilian and American, as well as Peruvian 
 interests; unification of factions in support of 
 Calderon government. 
 
 Peace question: "special envoy leaves "Washing- 
 ton for Peru immediately ; continue recognition 
 of Calderon government." 
 
 Peace question : note of 18th instant received. 
 
 Relieves him of negotiations for settlement of 
 peace question : informs him as to appointment 
 and powers of Mr. Trescot and Mr. "Walker 
 Blaine to conduct such negotiations-; he will 
 be expected to aid this special commission. 
 
 Political assumption of executive functions by 
 Vice-President Montero in consequence of ar- 
 rest of President Calderon, and recognition of 
 Montero by Mr. Hurlbut reported: will take 
 no further action until arrival of special com- 
 mission. 
 
 Coaling stations: strongly disapproves; proto- 
 col concluded by him with Calderon govern- 
 ment for cession of such stations to the United 
 States, and rebukes him for concluding it; rail- 
 way grant; severely reprimands him for ob- 
 taining same for himself from Pern; reply to 
 No. 19. > f J 
 
 Cochet heirs: Claim vs. Peru, upon which Peru- 
 vian company's scheme is based; No. 25 re- 
 ceived; minister's action approved; indecency 
 and dishonor of Mr. Shipherd,. the agent of the 
 company; eminent New York gentlemen, who 
 aTe alleged to beloog to the company, are proba- 
 bly as ignorant of the use of their names as Mr. 
 Blaine was of the absurd statements attributed 
 to Mm by Mr. Shipherd. 
 
 Pierola renounces presidency : is intriguing for 
 return to power; British minister is injuring 
 us by alleging conclusion of a secret treaty 
 whereby we are to acquire a portion of Peru; 
 death of General Kilpatrick reported. 
 
 British minister's injurious conduct in alleging a 
 conclusion of a secret treaty: he is called to 
 accouut by Mr. Hurlbut and says it was onh a 
 joke; suggests that it be brought to the atten- 
 tion of the foreign office; refers to No. 32. 
 
 Montero's assumption of the presidency officially 
 announced to diplomatic corps: Pierola's renun- 
 ciation; no joint action by the corps; Pierola 
 still in Lima; failure of demonstration in his 
 favor; municipality seized by Chilians; inabil- 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. XXXI 
 
 3. PERU— Continued. 
 
 No. 
 
 387 
 
 389 
 300 
 
 From whom and to whom. 
 
 Mr. Hurlbut to Mr. Blaine 
 (No. 34) — Continued. 
 
 Same to same (No. 35). 
 
 Same to same (No. 36) . 
 
 Same to same (No. 37). 
 Same to same (No. 38) . . 
 
 Same to same (No. 39) - - 
 
 Mr. Elmore to "Mr. Freling- 
 huysen. 
 
 Date. 
 
 1881. 
 Dec. 14 
 
 Dec. 15 
 
 Dec. 17 
 
 Dec. 22 
 
 Dec. 22 
 
 Dec. 28 
 
 1882. 
 Jan. 23 
 
 Subject. 
 
 ity of Mr. Adams to proceed to post; has advised 
 him to remain at Lima until the arrival of Mr. 
 Trescot; rumor that General Kilpatiick has left 
 a document stating that his note to Valmaseda 
 was wrung from him when he was wholly unfit 
 to transact business. 
 
 Telegram from Chilian minister at "Washington 
 alleging disapproval by Department of Mr. Hurl- 
 buva conduct; publication of j Mr. Hurlbut not 
 disturbed by it. 
 
 Claim of Cochet heirs: Peruvian company's scheme; 
 letters from Mr. Shipherd, president of the com- 
 pany, and Mr. Hurlbut' s reply declining further 
 correspondence, inclosed. 
 
 Political: course pursued by Mr. Hurlbut; justi- 
 fication of ; reply to No. 19 : arrest of Calderon 
 a. willful affront to United States. 
 
 Political : Mr. Elias and Mr. Candamo have been 
 appointed representatives at Lima of President 
 Montero, who is still in the interior; this facil- 
 itates intercourse. 
 
 Arrival at and departure from Lima of Special 
 Commissioners Trescot and Blaine; told Mr. 
 Trescot that arrest of Calderon was unjustifi- 
 able, and was intended as an insult to United 
 States, and that his immediate release ought to 
 be demanded; harm being done United States 
 in Chili by the Peruvian Company; letters from 
 the president of the company inclosed ; official 
 notice of our true attitude regarding this com- 
 pany should be given to Chili without delay. 
 
 Betrayal of Peru by Bolivia, rumor of, denied. 
 
 4. PRANCE. 
 
 394 
 
 397 
 
 Mr. Morton to Mr. Blaine 
 (No. 6). 
 
 Mr. Blaine to Mr. Morton 
 (No. 30). , 
 
 Mr. Morton to Mr. Blaine 
 (No. 58). 
 
 Mr. Blaine to Mr. Morton 
 (telegram). 
 
 Mr. Morton to Mr. Blaine 
 (telegram). 
 
 1881. 
 Aug. 11 
 
 Sept. 
 
 5 
 
 Oct. 
 
 20 
 
 Nov. 
 
 14 
 
 Nov. 
 
 15 
 
 Interview with President Gr6vy in regard to Chili- 
 Peruvian war, who suggests that the United 
 States again offer mediation; demands of Chili 
 upon Peru should he modified. 
 
 Chili-Peruvian war: declension of the United 
 States to enter into negotiations with European 
 powers for joint intervention for peace; reply 
 to No. 6. 
 
 Chili- Peruvian war: interview with President 
 Gr6vy; substance of the Department's No. 30 
 communicated to him ; Prance in accord with 
 position tajjen by tbe United States, and is 
 willing to act with the United States in the di- 
 rection of peace, or to leave the United States 
 to proceed alone. 
 
 Chili- Peruvian war : full account of any interview 
 he has had recently with French Government 
 relative to, and especially any relating to, recog- 
 nition of Peruvian minister, requested. 
 
 Chili-Peruvian war: has had no interview with 
 President Gr6vy since that reported in No. 58 ; 
 indications less favorable for recognition of 
 Calderon. 
 
 5. MISCELLANEOUS. 
 
 Mr. Pettis to Mr. Erarts. 
 
 Mr. Evarts to Mr. Fisher. 
 
 1880. . 
 Mar. 29 
 
 1879. 
 June 6 
 
 Political changes and situation in Bolivia, ac- 
 count of; letter from acting consul at La Paz, 
 and a Peruvian newspaper inclosed ; peaceable 
 revolution in Bolivia. 
 
 Bearer of dispatches, appoints him as; transmits 
 dispatches for United States ministers and con- 
 suls in Peru and Chili on account of existing 
 hostilities there ; also, passport, consular regu- 
 lations, and copies of treaties. 
 
XXXII AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 
 5. MISCELLANEOUS— Continued. 
 
 No. From whom and to whom. 
 
 Subject. 
 
 400 
 401 
 
 402 
 
 403 
 
 404 
 405 
 
 406 
 407 
 
 408 
 409 
 
 Mr. Fisher to Mr. Seward . 
 Mr. Ksher to Mr. Evarts. . 
 
 Same to same. 
 
 Mr. Fisher to Mr. Seward 
 (No. 3). 
 
 Same to same (No. 4). 
 Same to same (No. 5) . . 
 
 1879. 
 June 7 
 
 June 10 
 
 July 30 
 July 31 
 
 Aug. 14 
 Oct. 9 
 
 Mr. Hunter to Mr. Fisher . 
 Mr. Fisher to Mr. Hunter . 
 
 Mr. Hunter to Mr. Fisher . 
 Mr. Fisher to Mr. Hunter . 
 
 410 Same to same . 
 
 412 
 
 413 
 
 415 
 416 
 417 
 
 +18 
 
 Same to same . 
 
 Mr. Shipherd to Mr. Walker 
 Blaine. 
 
 Same to same. 
 
 Mr. "Walker Blaine to Mr. 
 Shipherd. 
 
 Mr. Shipherd to Mr. Blaine. . 
 
 Mr. Blaine to Mr. Shipherd. . 
 
 Mr. Shipherd to Mr. Blaine. . 
 
 Mr. Blaine to Mr. Shipherd- . 
 
 Oct. 
 
 10 
 
 Dee. 
 
 26 
 
 1880. 
 
 Feb. 
 
 fi 
 
 Feb. 
 
 27 
 
 Oct. 
 
 22 
 
 Oct. 
 
 20 
 
 1881, 
 
 July 
 
 27 
 
 July 
 
 & 
 
 July 
 
 28 
 
 Oct. 
 
 10 
 
 
 r 
 
 Oct. 
 
 12 
 
 Oct. 
 
 18 
 
 Oct. 
 
 22 
 
 War between Chili arid Peru: forwards two offi- 
 cial pamphlets in regard to "Question Chilens 
 Boliviana " and "Manifesto", &c. 
 
 Bearer of dispatches : special passport, package 
 of dispatches, and letter of 6th inst. received; 
 will leave on 20th inst. 
 
 Bearer of dispatches : statement showing delivery 
 of dispatches intrusted to him inclosed. 
 
 "War between Chili and Peru-Bolivia: reports Ms 
 efforts to bring about peace between the repub- 
 lics; Chili not likely to consent to any truce on 
 conditions required by other belligerents ; proba- 
 bility of an overthrow of the Chilian ministry 
 which may produce a peaceful policy. 
 
 Arbitration": does not deem it desirable to discuss 
 same at present ; strategic movements com- 
 mented upon. 
 
 Arbitration, question of: circumspection exer- 
 cised in communicating substance of interview 
 with the Secretary of State; admits having 
 stated to parties of influence the object of his 
 mission; interview of Mr. Pettis with the Pres- 
 idents of Peru and Bolivia led. to exaggerated 
 reports by the press. 
 
 War between Chili and Peru-Bolivia: letter of 
 August 14th relative to, received. 
 
 Laws of war, as adopted by Chili for the guidance 
 of its army : copy of, inclosed. 
 
 Laws of war of Chili received 
 
 Congress of American republics to convene at 
 Washington: suggests that the President in- 
 vite various countries to participate for the 
 purpose of settling the pending questions and 
 establishing closer relations between all Amer- 
 ican republics. 
 
 Mediation of United States : states that true time 
 for, will be after Chilian army has arrived in 
 bay of Callao and at the island of San Lorenzo, 
 and gives reasons why interference will fail be- 
 fore that; building for permanent exhibition of 
 American samples ; commercial treaty. 
 
 Mediation by the United States: incloses news- 
 paper extracts showing good feeling "pf Chili 
 towards the United States, notwithstanding at- 
 tempt of; will soon leave for the United States 
 with particulars of commercial treaty hereto- 
 fore referred to. 
 
 Peruvian Company: refers to conversation had 
 with Secretary relative to, and^requests a copy 
 of instructions to Mr. Hurlbut, .United States 
 minister to Peru ; also desires the address of Mr. 
 Suarez. 
 
 Peruvian Company protests against Chili taking 
 possession of the guano islands and the nitrate 
 beds to secure the payment of her war indem- 
 nity, and asks Department to take steps to pre- 
 vent said action by Chili: incloses duplicates 
 of all printed papers relating to said company ; 
 also two affidavits of Peter Hevner, and expects 
 by the end of August evidence of death and in- 
 testacy of Alexander Cochet. 
 
 Peruvian Company cannot answer letter relating- 
 to, umil after consultation with Secretary of 
 State ; Mr. Suarez was at Panama on the 13th 
 instant ; sailed for Peru on that day. 
 
 Claim to one-third of all guano deposits-in Peru ■ 
 incloses notices of ownership sent to Chilian 
 and Peruvian ministers relative to. 
 
 Claim to one-third of all guano deposits in Peru ■ 
 documents^ with his letter of 10th instant, 
 placed on hie. 
 
 Claim to one-third of all guano deposits in Peru • 
 incloses proofs that notices of ownership were 
 served ou Chilian and Peruvian ministers in 
 Washington October J£, and additional notices 
 to be sent to the United States ministers. 
 
 Claim to one-third of all guano deposits in Peru • 
 papers, with his letter of 18th instant relative 
 to, placed on file. 
 
AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. XXXIII 
 
 5. MISCELLANEOUS-Continued. 
 
 Ho. 
 
 From whom and to whom. 
 
 419 
 
 420 
 
 421 
 422 
 
 Mr. Hadden to Mr. Hunter . 
 Mr. Blaine to Mr. Sjhipherd. 
 
 Mr. Shipherd to Mr. H nnter 
 
 Count de Montferrand and 
 Mr. Suarez to Mr. Evarts. 
 
 Same to same - 
 
 1881. 
 Nov. 28 
 
 Deo. 3 
 
 Dec. 
 
 5 
 
 Jan. 
 
 17 
 
 Jan. 
 
 30 
 
 428 
 
 Same to same. 
 
 Mr. Suarez to Mr. Evarts - . - 
 
 Count Montferrand to Mr. 
 Evarts. 
 
 Confidential note. 
 
 431 
 432 
 
 433 
 434 
 
 Mr. Evarte to Mr. Suarez. . . 
 
 Mr. Suarez to Mr. Guillaume 
 
 Mr. Suarez to Mr. Evarts - - - 
 
 Same to same 
 
 Mr. Suarez to Mr. Blaine . 
 
 Same to same . 
 
 Count Montferrand to Mr. 
 Hitt. 
 
 S. Ex. 79 in 
 
 Feb. 
 
 1 
 
 Feb. 
 
 9 
 
 Feb. 
 
 14 
 
 Feb. 
 
 16 
 
 Feb. 
 
 17 
 
 Feb. 
 
 18 
 
 Feb. 
 
 19 
 
 Feb. 
 
 28 
 
 Mar. 
 
 1 
 
 Mar. 
 
 1 
 
 Apr. 
 
 22 
 
 Protectorate of the United States over Peru : in- 
 closes letter sent United States Minister Hurl- 
 but urging establishment of. 
 Calls attention to his correspondence with the 
 United States minister, and. offering bribe there- 
 to : censures Mb action severely, and states that 
 only his apparent mental irresponsibility saves 
 him from prosecution ; Departmentwillnolonger 
 recognize him as attorney in any case. 
 Claim to guano deposits in Peru : incloses letter 
 received from Peru showing present condition 
 of. 
 Credence: letter of : from the "Societ6 generale 
 de credit industnel et commercial ," and intro- 
 ductory letter from Ed. Noetzlin, esq., a director 
 of the "Banque Franco ifigyptienne. " 
 Proposition to pay Chili and Peru respectively 
 £550,000 per annum, which will justify a loan 
 to cover war indemnity demanded by CJhili and 
 meet all legitimate national obligations, and to 
 arrange with Peruvian bondholders the indebt- 
 edness held by them, on condition that Chili 
 surrender territory taken from Peru, subject to 
 protectorate of the United States, and to grant 
 the society the exclusive privilege of shipping 
 nitTate therefrom ; urges the United States to 
 again interfere on behalf of peace; incloses va- 
 rious papers, including contract between society 
 and Peru. 
 
 Mediation of the United States: urges advisa- 
 bility thereof; calls attention to^the advantages 
 of their scheme, and the evils to be averted oy 
 its adoption ; awaits action of United States. 
 
 Mediator in Chili-Peruvian war : urges the United 
 States to offer its services as, and to accept the 
 position of trustee of the financial business pro- 
 posed by the credit industriel, as such action 
 would insure the supremacy of the United 
 States in South American affairs. 
 
 Negotiations on behalf of Soci6t6 gen6rale de 
 cr6dit industriel et commercial ; states that 
 Francisco de Paulo Suarez is authorized to con- 
 tinue the same. 
 
 Statement of American and foreign interested par- 
 ties, and their representatives, in England, Bel- 
 gium, France, Netherlands, Germany, Spain, and 
 United States in the Society generate de cr6dit 
 .industriel et commercial, and observes that 
 while Chili endeavored to fortify her political 
 and commercial links with Europe, so Peru and 
 Bolivia look towards the United States. 
 
 "War indemnity : acknowledges letters relative to, 
 and says ministers to ( :hili and Peru have been 
 iuformed of the proposition of the society rela- 
 tive to payment of ; the United States is readv 
 to aid in bringing about peace. 
 
 Views of Secretary Evarts m regard to the soci6t6 
 communicated the United States: will confine 
 itself to exercise of good offices towards secur- 
 ing peace, but will recommend the soci6te as a 
 means to that end : would not seek position of 
 trustee, but would accept the same if agreed 
 upon ; has promised the secretary that agency 
 for guano should he placed under patronage 
 of a first-class American house. 
 
 Mediation: offers of; thanks for letter of 17th 
 instant relative to ; incloses telegrams to and 
 reply from " CrGdit Industriel "; will inform De- 
 partment of his arrival in Peru. 
 
 Confidential letter of 17th instant : explains delay 
 in replying to ; will continue to strive for a sat- 
 isfactory settlement of war. 
 
 Obligations of Peru; refers to papers on file in 
 Department and renews proposition therein con- 
 tained as to payment of, by the "soci6te"; asks 
 for more earnest action by United States. 
 
 Q'ermination of war: urges Secretary of State to 
 take a firm stand in favor of. 
 
 Financial arrangement : incloses correspondence 
 relative to proposed, by the company, or the Pa- 
 cific Company ; urges the United Slates to favor 
 the project. 
 
XXXIV AFFAIRS BETWEEN CHILI, PERU, AND BOLIVIA. 
 5. MISCELLANEOUS— Continued. 
 
 No. 
 
 436 
 437 
 
 438 
 439 
 
 441 
 
 Prom whom and to whom. 
 
 Mr. Snarez to Mr. Blaine. 
 
 Same to same. 
 
 Mr. Hitt to Count Montfer- 
 raud. 
 
 Mr. Suarez to Mr. Blaine . . 
 
 Mr. Suarez to Mr. Freling- 
 huysen. 
 
 Translation. 
 
 Memorandum 
 
 Bate. 
 
 Subject. 
 
 1881. 
 May 3 
 
 May 28 
 
 June 10 
 
 Dec. 5 
 
 1882. 
 Jan. 13 
 
 Arrangements proposed by " Credit Industriel " : 
 incloses telegram stating that English, French, 
 and probably Italian and German Governments 
 will agree to, if asked to do so by the United 
 States; asks what reply shall be made. 
 
 Letter of credence : incloses duplicate of his, and 
 invites attention to Department's letter of Feb- 
 ruary 17 last. 
 
 Financial arrangement: acknowledges letter of 
 April 22 last; the subject will be presented to 
 the Secretary of State and ministers to Peru and 
 Chili. - 
 
 Chili-Peruvian question : requests answer to his 
 papers relative to. 
 
 Obligations of Peru : payment of, by the society : 
 refers to previous correspondence and renews 
 proposition relative to ; argues why this should 
 be done, and amplifies upon the scheme. 
 
 Six papers relating to the debt of Peru and the 
 plans of the Cr6dit Industriel and the Cora- 
 pagnie Financiere du Pacifique left with Mr. 
 Frelinghuysen by Mr. Suarez for perusal Jan- 
 uary 20, 1882. 
 
 Extracts taken from the official registers, showing 
 that the several communications therein indi- 
 cated were received in the ordinary course of 
 business, and belong to the files of the Depart- 
 ment; a careful search fails to show that they 
 are now in the Department. 
 
 Page. 
 
 707 
 
 708 
 709- 
 
 710 
 711 
 
 741 
 
CORRESPONDENCE. 
 
CORRESPONDENCE. 
 
 l.-BOLIVIA. 
 
 No. 1. 
 
 Mr. Evarts to Mr. Pettis. 
 
 No. 12.] Department of State, 
 
 Washington, June 23, 1879. 
 
 Sir: The British Government has lately received information that 
 the Government of Bolivia has decreed the issue of letters of marque, 
 with authority to privateers to seize Chilian property in neutral vessels, 
 and that agents have departed for the United States. 
 
 You are directed to call the attention of the Bolivian Government to 
 the treaty of 1858, and more especially to the XVIth article thereof, 
 which stipulates for the freedom from capture or confiscation of effects 
 or goods belonging to subjects or citizens of a power or state at war 
 when found on board of neutral vessels, with the exception of articles 
 contraband of war. 
 
 The neutrality act of 1818 (section 5281 et seq. of the Revised Stat- 
 utes) specially prohibits the fitting out, arming, or equipping in this 
 country of any vessel for the purpose of committing hostilities against 
 the people of a country with whom the United States are at peace. 
 Should it prove true that the Bolivian Government has dispatched 
 agents to this country for the purpose, as is understood, of engaging in 
 this enterprise, you will remind them of the existence of this act and of 
 the necessity which will compel this government to adopt measures for 
 preventing a violation of it. 
 I am, &c, 
 
 WM. M. EVAETS. 
 
 No. 2. 
 
 Mr. Evarts to Mr. Pettis. 
 
 No. 13.] Department of State, 
 
 Washington, June 25, 1879. 
 Sir: Referring to my instruction No. 12, of the 23d instant, in regard 
 to the intimation received that the Government of Bolivia has decreed 
 the issue of letters of marque, with authority to privateers to seize 
 Chilian property in neutral vessels, and that Bolivian agents are under- 
 stood to have already departed for the United States, I now transmit for 
 S. Ex. 79 1 
 
I AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 your information two copies of a circular issued by the Secretary of the 
 Treasury, under date of the 21st instant, instructing collectors of cus- 
 toms and others whom it may concern with respect to the observance of 
 the neutrality laws of the United States in case of any possible attempt 
 being made to infringe the same in behalf of either of the belligerents. 
 I am, &c, 
 
 WM. M. BVAETS. 
 
 Mr. EvarU to Mr. Sherman. 
 
 Department of State, 
 Washington, June, 18, 1879. 
 Sir : I have the honor to inform you that the British Government has received in- 
 formation that the Government of Bolivia has decreed the issue of letters of marque, 
 with authority to privateers to seize Chilian property in neutral vessels, and that 
 agents of Bolivia have departed for the United States. 
 
 With a view to causing due observance of the neutrality laws of this country, I will 
 thank you to direct the attention of such of the collectors of customs of the. United 
 States to the matter as you in your judgment shall deem proper. 
 I have the honor to he, sir, your obedient servant, 
 
 WM. M. EVARTS. 
 
 Mr. Sherman to Mr. Evarts. 
 
 Treasury Department, June 24, 1879. 
 Sir : Referring to your letter of the 18th instant relative to the proposed issue of 
 letters of marque by the Government of Bolivia, with authority to privateers to seize 
 Chilian property in neutral vessels, I have the honor to inclose herewith six copies of' 
 the circular on the subject issued by this department on the 21st instant and sent to-, 
 the collectors of customs at ports from which illegal expeditions might be arranged, 
 warning them to be vigilant to guard against any breach of the neutrality laws or 
 the United States. 
 
 Very respectfully, 
 
 JOHN SHERMAN, 
 
 Secretary. 
 
 OBSERVANCE OF THE NEUTRALITY LAWS. 
 
 [1879. Department No. 101. Secretary's office.] 
 
 Treasury Department, Office of the Secretary, 
 
 Washington, D. C, June 21, 1879. 
 To collectors of customs and whom it may concern : 
 
 This department has received information that the Government of Bolivia has de- 
 creed the issue of letters of marque, with authority to privateers to seize Chilian prop- 
 erty in neutral vessels, and that agents of Bolivia have departed for the United States. 
 
 Collectors of customs, in whose ports attempts may be made to fit out warlike ex- 
 peditions in aid of either of the belligerent powers, will take care to see that section 
 5290 of the Revised Statutes be vigilantly enforced against all vessels that appear to 
 be destined to violate the neutrality laws of the United States. The section is here 
 reproduced : 
 
 " Sec. 5290. The several collectors of the customs shall detain any vessel manifestly 
 built for warlike purposes, and about to depart the United States, the cargo of which 
 principally consists of arms and munitions of war, when the number of men shipped 
 on board, or other circumstances, render it probable that such vessel is intended to be 
 employed by the owners to cruise or commit hostilities upon the subjects, citizens, or 
 property of any foreign prince or state, or of any colony, dis,trict, or people with whom 
 the United States are at peace, until the decision of the President is had thereon or 
 until the, owner gives such bond and security as is required of the owners of armed 
 vessels by the preceding section." 
 
 JOHN SHERMAN, 
 
 Secretary, 
 
AFFAIRS IN CHILI, PERU; AND BOLIVIA. 3 
 
 Eo. 3. 
 Mr. Pettis to Mr. Evarts. 
 
 No. 15.] Legation op the United States, 
 
 La Paz, Bolivia, June 28, 1879. (Beceived Aug. 16, 1879.) 
 
 Sir : I have the honor to inform you that in pursuance of the appoint- 
 ment made yesterday, and of which you were advised by my dispatch 
 of that date, No. 14, Sr. Manuel Vicente Ballivino, a gentleman con- 
 nected with the executive branch of the government here, called at this 
 legation and accompanied me to the department of foreign relations 
 of this Eepublic, where I was most cordially received by his excellency 
 Pedro J. de Guerra, minister of foreign relations and acting President 
 of Bolivia, and his excellency Eulogio D. Medina, minister of finance 
 and of war. 
 
 After an observance of the courtesies of the occasion, his excellency 
 the minister of foreign relations remarked that, enjoying the proud satis- 
 faction that the Government of the United States of America cherished 
 for the Eepublic of Bolivia and her sister republics in South America a 
 sincere friendship ; he had sought the interview for the purpose of con- 
 ferring with the representative of the government I had the honor to 
 represent touching the complication of affairs between Chili, Bolivia, 
 and Peru, and to learn if possible the views of the Government of the 
 United States in that connection, entertaining, as he did, a profound 
 respect for its opinion and wishes. 
 
 After expressing to his excellency the gratification which such a mark 
 ©f respect to my government implied, I stated to him that while I was 
 without any instruction from the government at Washington upon the 
 subject, I felt confident that so desirous was the President of the United 
 States of a peaceful solution of these pending difficulties, that he and his 
 cabinet would expect all the offices of 1 this legation, official and personal, 
 exerted in the direction of peace, and which it would be my highest 
 ambition and greatest pleasure to exert in the absence of special instruc- 
 tions in the premises, and would therefore give an attentive ear to all 
 that his excellency might have to say. 
 
 His excellency replied that Bolivia desired peace, but could not see 
 how it was to be obtained amicably at present, with the armies of the 
 different powers in the field, and their forces upon the sea. 1 expressed 
 the opinion that it might be obtained by some amicable arrangement, 
 and I thought the acceptance of arbitration the humane and dignified 
 way out, believing as I did that each of the contending powers owed 
 some respect to human society, adding that while, as his excellency sug- 
 gested, arbitration is usually resorted to prior to the actual commence- 
 ment of hostilities, precedents were to be found in the conciliatory path 
 of negotiation in the past, by which this objection or difficulty might be 
 overcome, and the terms of equality restored between the powers inter- 
 ested, so as to make arbitration proper, acceptable, honorable, and prof- 
 itable. 
 
 Such was substantially the character of the interview, which lasted 
 nearly or quite two hours, and at its termination his excellency the 
 minister of foreign relations stated that it would afford him pleasure 
 to renew and resume the consideration of the subject at this legation at 
 5 o'clock, which was agreed to. 
 
 At such second meeting his excellency placed in my hands a paper, 
 together with its translation, which (the. translation) I have copied and 
 herewith inclose, marked Inclosure 1. 
 
4 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I should state in this connection that I was informed by his excellency 
 that the mediation of Brazil had been declined by Peru and Bolivia, also 
 one of the Eastern powers, and that one of a number of reasons assigned 
 for preferring the United States as umpire was that it was purely an 
 American controversy. 
 
 I have the honor to be, &c, 
 
 S. NEWTON PETTIS. 
 
 Ilnclosnre in No. 15.1 
 
 All under the special condition not to take any decision or compromise without the 
 knowledge and approval of the Peruvian Government. 
 
 The authorities of Chili, civil and military, to withdraw from and disoccupy all ter- 
 ritory that they have taken possession of upon and since the 14th day of February, 
 1879, leaving all things in the condition and state they were its previous to the 14t& 
 day of said month. 
 
 Then, if arbitration is agreed upon, the arbitrators to hear, determine, and decide all 
 matters in dispute between Bolivia and Chili and Peru, and establish the divisionary 
 line between Bolivia and Chili, Bolivia claiming the boundary line affixed by the 
 Chilian constitution, taking with consideration the damages caused by the act of 14th 
 February, and the subsequent aggressions claimed by Bolivia, as well as the expenses 
 of the war. 
 
 That reference may be made to the President of the United States of America as sole 
 arbitrator, or to the judges of the Supreme Court of the United States of America, or 
 to the ministers of the United States of America in Peru, Bolivia, and Chili, a decision 
 by a majority of the arbitrators sitting, to be valid and binding upon the parties, to 
 be approved in its execution and perpetuity by the President of the United States. 
 
 No. 4. 
 
 Mr. Pettis to Mr. JEvarts. 
 
 No. 16.] Legation of the United States, 
 
 La Paz, Bolivia, July 2, 1879. 
 
 (Received August 16, 1879.) 
 Sik : I have the honor to inform you that I to-day received a call from 
 his excellency the Peruvian minister resident at La Paz. 
 
 He said that he called to tender to me as the representative of the 
 United States the acknowledgement of his government, as well as his own, 
 for the very humane and conciliatory views he had been informed by his 
 excellency the minister of foreign relations of Bolivia, 1 had lately ex- 
 pressed touching the pending difficulties between Chili, Peru, and Bolivia, 
 and assuring me that he should take especial pleasure in co-operating in 
 every way in his power, to obtain a peaceful and bloodless adjustment of 
 the same, and knew that he reflected the sense of the Peruvian Govern- 
 ment in that respect. 
 I have, &c, 
 
 S. NEWTON PETTIS. 
 
 No. 5. 
 Mr. Evarts to Mr. Pettis. 
 
 No. 17.] Department of State, 
 
 Washington, August 8, 1879. 
 Sie: I transmit herewith for your information copy of a dispatch 
 from Mr. Ernest Dichman, United States minister resident at Bogota, re- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 5 
 
 siting the causes which have moved Colombia to proffer mediation for the 
 settlement of the war between Bolivia and Peru and Chili, and announ- 
 cing thye appointment of Dr. Arosemena, the former secretary of foreign 
 relations of Colombia, to visit La Paz, Lima, and Santiago, on a special 
 mission for the purpose of tendering such mediation. 
 
 Although abstaining from any direct indorsement of, or co-operation 
 in, this apparently laudable eifort of Colombia in the interest of , peace 
 and reconciliation, this government, which feels lively solicitude for the 
 prosperity and tranquillity of the South American states, cannot but 
 watch Dr. Arosemena's mission with especial attention. In personal 
 intercourse with the doctor, when he visits La Paz, you will probably 
 find a fitting occasion to express to him the warm interest taken by the 
 United States in this tentative step, and the friendly solicitude of this 
 government as to the result. 
 I am, &c, 
 
 WM. M. EVARTS. 
 
 Mr. Dichman to Mr. Evarts. 
 
 [Extract.! 
 
 ■No. 100.] Legation of the United States, 
 
 Bogota, June 20, 1879. (Received July 29.) 
 Sir: The war between the three South American Republics of Chili, Peru, and 
 Bolivia is being observed with much interest at this capital, not onl y on account of 
 the affinity of race and language, and the interest which would naturally arise from 
 a similarity in name at least of political institutions, but also because it is feared that 
 the war, if not checked, may involve other South American nations and interests to 
 which this government could not remain indifferent. 
 
 * * *• * * # a 
 
 A resolution was adopted by Congress requesting the President to send a special 
 minister to the three Republics of Peru, Chili, and Bolivia for the purpose of offering 
 the mediation of the Colombian Government in the present difficulty. The Hon. Dr. 
 Pablo Arosemena, formerly secretary of the interior and foreign relations, has been 
 selected for the position, and it is expected that he will leave for Peru immediately, as 
 soon as his instructions can reach him at his home at Panama. 
 I am, &c, 
 
 ERNEST DICHMAN. 
 
 No. 6. 
 
 Mr. Seward to Mr. Pettis. 
 
 No. 19.] Department of State, 
 
 Washington, August 11, 1879. 
 
 Sir : Your dispatch No. 13 of the 25th of June last, reporting your 
 interview with the minister of foreign relations on that day, has been 
 received. 
 
 In reply I have to inform you that your course on that occasion in 
 assuring the minister that the settled policy of strict neutrality of the 
 United States would not be departed from in the conflict between Chili, 
 on the one part, and Bolivia and Peru on the other, is approved. 
 
 I am, &c, 
 
 F. W. SEWARD, 
 
 Acting Secretary. 
 
b AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 7. 
 
 Mr. Seward to Mr. Pettis. 
 
 No. 21.] Department of State, 
 
 Washington, August 18, 1879. 
 
 Sir: Your dispatch No. 15, of the 28th June last, reporting your 
 conference with his excellency, the minister of foreign relations and 
 Acting President of Bolivia, and the overtures then made to you looking 
 to the eventual mediation of the United States with a view to arbitrat-. 
 ing the unhappy differences between that state and Chili which have 
 given rise to the present deplorable war, to which Peru is also a party, 
 has been read with careful attention. Your proceedings, as stated in 
 your dispatch, seem to have been discreet and judicious, and are 
 approved. 
 
 The Department awaits with hopeful expectancy the further develop- 
 ments of the interesting question presented. 
 
 It is deemed proper to inform you that in June last simultaneous but 
 independent overtures were made to this government by the cabinets 
 of London and Berlin, looking to a future formal proposal from Ger- 
 many and Great Britain, to act with them in a mediation between the 
 belligerents in the present war in South America in the interest of the 
 protection of commerce. The reply of this government was to the effect 
 that, while as keenly alive as Germany and Great Britain can be to the 
 dangers arising to commerce from the existence of so deplorable a war 
 between kindred peoples, as well as to the prospective danger that other 
 states might yet be involved in the fratricidal quarrel, aud while it 
 has been from the commencement of the struggle, and is now, ready to 
 assist in the restoration of peace whenever its good offices may be use- 
 fully proffered, yet this government does not look with favor upon any 
 premature effort, nor any effort in combination with other neutral powers 
 which would carry the impression of dictation or coercion in disparagement 
 of belligerent rights. 
 
 The views then expressed are unchanged now, except that it is thought 
 that the time is drawing near when an honorable settlement of the ques- 
 tions of the war may, without disparagement to any of the parties thereto, 
 be frankly asked and obtained through the mediation of a friendly power. 
 I am, &c, 
 
 F. W. SEWARD, 
 
 Acting Secretary. 
 
 No. 8. 
 
 Mr. Pettis to Mr. Evarts. 
 
 Unofficial.] La Paz, Bolivia, S. A., 
 
 August 23, 1879. (Received Oct. 16.) 
 Dear Me. Secretary: I have deemed it proper to accompany my 
 dispatch of this date (No. 22) by this private note, as necessary for 
 your full understanding, of the present condition of these three troubled 
 republics; and allow me to say that I have no doubt but what the 
 Chilian ministry, with the approbation of President Pinto, had resolved 
 upon taking the suggestions made by me in the presence and with the 
 concurrence of Mr. Osborn (without the rider included in brackets in 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 7 
 
 inclosure 2), and submitting the whole controversy to the United States 
 authorities, preferring the ministers, for the reason that they were upon 
 the ground and a decision would be promptly obtained, should you 
 permit them to act. In fact Mr. Huneens said so; and looking to such 
 result, he informed us that the president had summoned Mr. Santa- 
 maria, the war minister, established at Antofagasta, to the capital, 
 desiring a united front in the movement, and assured me that he had 
 promptly responded to the telegram ; was on his way, and would reach 
 the capital the next day by special train. His arrival seemed to cause 
 a hitch in the consummation of that which I am confident had been 
 Tesolved upon, and I was satisfied that Mr. Santamaria (who is a can- 
 didate for the presidency) was the cause of it. When he was firgt 
 approached by Mr. Huneens, he remarked that he had met me at 
 Antofagasta, on my. way to Valparaiso; but he was mistaken in that, 
 for he had never seen me; he had seen Mr. Fisher, who was a fellow- 
 passenger upon my voyage to V.. 
 
 Justice to the Chilian ministry, as well as to myself, makes it proper 
 to state some things in this connection for your own eye, that I Would 
 gladly omit. 
 
 As I was leaving Lima, Judge Christiancy said to me, " You will meet 
 a Colonel Fisher on the steamer, bearer of dispatches from our govern- 
 ment, who arrived this morniug from Panama, and who brought a dis- 
 patch to me, but it has nothing to do with the question we are consid- 
 ering"; when Mr. Fisher came up and was introduced to me. When on 
 board the steamer he desired an introduction to the captain, and asked 
 to be presented as "bearer of dispatches from the United States." He 
 talked much about these peoples' troubles, was outspoken against Bo- 
 livia and Peru, and was quite partially in favor of Chili. I was reticent, 
 as I did not wish to talk to any one, save the ministry, as I had here 
 in La Paz and Lima, and might possibly with Mr. Osborn in Chili. 
 When the steamer arrived at Antofagasta a number of passengers 
 went on shore, and as I was about stepping into the small boat to return 
 to the ship, Mr. Greene, an American, the superintendent of the nitrate 
 works there, invited and insisted upon my going to breakfast with him, 
 saying that Mr. Santamaria, the war manager, was stopping in his house, 
 would be at breakfast, and that he was a power in Chili. I thanked 
 him, but declined and would not be moved by importunity, but Mr. 
 Fisher accepted and went up, and I feared from that moment that mis- 
 chief would result from his freedom and manner of talk. The steamer 
 was then ready to sail, and the captain was very angry at the two hours' 
 delay caused by Mr. Fisher's conference with those on shore, as the pow- 
 ers had the dispatches withheld from the captain of the steamer and he 
 could not leave until the captain of the port saw lit to take them out to 
 him. 
 
 As we were nearing Valparaiso I asked Colonel Fisher to be a little 
 guarded in expression in Chili, and. not talk there as he had in my pres- 
 ence, declaiming against Bolivia and Peru, and championing Chili's 
 cause, saying that instead of hissing her on, it was time for cooling, for 
 casting oil upon the troubled waters, rather than further inflaming the 
 passions ; but I then feared he had done my cause damage at Antofa- 
 gasta, and the only hope I had of not being made to feel the effects of it 
 was found in the fact that possibly it would not reach Santiago in time 
 to injure or embarrass me ; but although it did not travel as fast as the 
 storms upon the sea, it came as surely as do earth's dances along the 
 coast of these countries, in phrases familiarly known as earthquakes. 
 I told Mr. Osborn of my fears when Santamaria was sent for, and gave 
 
8 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 him my opinion after he arrived, both of which were confirmed by dem- 
 onstration upon my return to Antofagasta, in a frank conversation with 
 the same Mr. Greene, whose hospitalities I did then accept for a day 
 and a half, and explained why in my personal quiet movement to Val- 
 paraiso I did not wish any recognition, much less any importance or 
 prominence given to me or my trip, which I all along stated was simply 
 for my health, making a convenience of the occasion to visit my old and 
 early friend Osborn. 
 
 Mr. Greene informed me that in the conversation at the breakfast ta- 
 ble he "interpreted between Mr. Santamaria and Mr. Fisher, and that 
 the latter was outspoken against Peru and Bolivia, stating that he was 
 direct from the United States, and that the feeling there was, that Chili 
 was further advanced in civilization, her government more republi- 
 can in form, and that he would not advise Chili to relinquish any of the 
 territory occupied by her to give place for arbritration, and that he 
 thought that was the sentiment in the United States, and that he be- 
 lieved that the United States would offer mediation if Chili asked it;" 
 and he did say to a Senator in my presence that Mr. Seward authorized 
 him to say that the United States would make such offer if either one of 
 the republics requested it. 
 
 That conversation, in my opinion, established a pre-judgment in the 
 mind of Mr. Santamaria against the object Judge Christiancy, Mr. Os- 
 born, Mr. Huneens, and myself had in view, and prevented the con- 
 summation of our informal negotiations with Mr. Huneens. 
 
 I inclose a slip from the South Pacific Times (published at Callao, Pe- 
 ru) of the 2M ultimo, and another from its columns of the 24th ultimo, 
 which will speak for themselves. * 
 
 If it be of any importance, I might say that my health has been ma- 
 terially improved by my voyage, chiefly no doubt from the change of 
 air and climate, and I cannot help feeling that had my son of twenty 
 years accompanied me, he would not to-day need the attention from me, 
 nor the services of his physician that his sick-bed demands and receives 
 from both. 
 
 Did I, in my previous informal note, give to you Mr. Huneen's part- 
 ing words ^ If not, here they are: 
 
 Good-bye, Mr. Minister; I hope and trust that we shall soon meet again, ■when and 
 ■where I trust you -will be judge and I attorney, and be kind enough to say for me to 
 President Prado, who was long a client of mine, that I am at heart for peace, and am 
 personally and officially laboring and longing for it. 
 
 Faithfully yours, 
 
 S. NEWTON PETTIS. 
 
 [Inclosure No. 1.— From the South Pacific Times of July 22, 1879.] 
 
 Colonel Fisher was among the passengers who arrived here by the Lima on Satur- 
 day. This gentleman is a special messenger from Washington to this country and 
 to Chile, and hearer of dispatches to both these governments, offerinf the media- 
 tion of the United States government in the present unnatural quarrel in which they 
 are engaged. "We sincerely hope the mission of Colonel Fisher will not be unattended 
 with success, for there can be no denying the sincerity of purpose which prompts the 
 great republic to action ; not that the same might not be said, of European govern- 
 ments, whose intervention would not be less earnest nor less sincere, but the interference 
 of the United States will perhaps be more acceptable, and the presumption may be 
 more generally and perhaps more justly entertained that it is better interested na- 
 tions, or those nations whose subjects have millions invested in these countries should 
 not be arbitrators. For instance, let us for a moment look at the proposition just 
 made in France. It is to the effect that the bondholders unite to defray the expense 
 «f the war for Chile on the condition that they are protected by Chile in getting paid 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 9 
 
 on their Peruvian bonds from the proceeds of the guano and nitrate, and that they 
 l)e reimbursed from the same source the war expenses so to be advanced. This prop- 
 osition would be acted upon had the English bondholders agreed to it. We allude to 
 this point simply in illustration of the fact that there is less likely to be confidence 
 where there is interest, or where disinterestedness cannot reasonably be expected to 
 prevail. Under the circumstances, therefore, we think the United States is unques- 
 tionably the best nation to intervene, and has already acted for Peru, if not for Chile 
 likewise, in reference to the political relations existing with Spain. Colonel Fisher 
 presented his dispatches here on Saturday, and the same evening left for Chile with 
 the same object. We have heard the opinion of one worthy of the respect that an 
 armistice is very likely to follow the presentation of the dispatches, so as to allow 
 time for agreement as to the conditions of peace. We hope this may be so, for blood 
 enough has been shed, and the wounds to national honor had better be healed now 
 than later ; the sooner the better. 
 
 [Inclosure No. 2.— From the Soutli Pacifie Times of July 24, 1879.] 
 
 Beyond what we record, there is little to communicate and nothing that encourages 
 the immediate prospects of the re-establishment of peace, if we except, perhaps, the 
 visit to this country of Colonel Fisher, from the United States Government, as the 
 special bearer of despatches to the belligerents, offering the good services of the North 
 American Republic to intervene in the present contest, with the view to put a stop to 
 it. He arrived here from Panama on the morning 19th instant, and having performed 
 his mission as far as this country is concerned, proceeded the same evening to Chile. 
 We allude to this gentleman's arrival in another part of our paper, and can but re- 
 peat that we should be delighted to find the efforts of the United States crowned with 
 success. The war is an expensive one, which neither party can afford, and it must ter- 
 minate or wear itself out. There is no reason why it should not he terminated now, 
 through the medium of friendly interference, without the sacrifice of honor on either 
 side. We comprehend fully the difficulties that are to be overcome, but greater diffiV 
 culties in international disputes have arisen and have been surmounted, and there is 
 no cause to despair in the case of Chile and Peru. 
 
 No. 9. 
 
 Mr. Pettis to Mr. Evarts. 
 
 No. 22.] La Paz, Bolivia, August 23, 1879. 
 
 (Eeceived October 16, 1879.) 
 
 Sib: At the date of my last dispatch, the impaired state of my health 
 caused by the high altitude of this cold, cheerless, because flreless, re- 
 gion. I was compelled to resolve upon at least a temporary change for 
 a milder clime, if I would seek to regain the uniform good health of my 
 whole life, and decided upon going to the coast, which is more than 
 12,000 feet lower than this point. 
 
 This being known to the Bolivian ministry as well as the Peruvian 
 representative here, and both professing an anxiety for peace, in the 
 interests of their governments, and being very desirous of knowing the 
 inner feelings of the Government of the United States, and to be gov- 
 erned much by its desires and wishes when ascertained, inasmuch as 
 they have voluntarily put at my disposal the steamer upon the lake, the 
 railroad and telegraph from La Paz to the coast passing through por- 
 tions of both republics, in view of what Bolivia had submitted to me 
 upon paper, with the acknowledgment and approval of the Peruvian 
 minister here, I telegraphed Mr. Christiancy from Puno, asking him to 
 meet me at Mollendo in the interest of peace. 
 
 Upon reaching Arequipa I received an answer saying that he could 
 
10 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 not then leave, but that he would write me at Mollendo, and requested 
 me to write him fully from there, and arriving at Mollendo I received 
 his letter, and after reading it and resting a day or two, and feeling a 
 little improved in health, and reflecting upon the situation, I concluded 
 to take the steamer for Lima, and confer with Mr. Christiancy, which -I 
 did, showing him the proposition submitted to me by the Bolivian 
 minister of foreign relations two weeks before, a copy of which 1 for- 
 warded to you in my dispatch of June 28, !Nb. 15. 
 
 After reading the same, Judge Christiancy thought that it looked like 
 business, and furnished what he had not before seen or heard of, a start- 
 ing point looking to a civilized solution of the troubles of the three re- 
 publics — Chili, Bolivia, and Peru, adding that he would call upon the 
 acting President and minister for foreign affairs there (at Lima) with 
 Mr. Koman, a Peruvian, who had traveled with me from La Paz, as the 
 bearer of dispatches addressed to the executive department at Lima, 
 one being from the Peruvian minister resident here, and the other from 
 the acting President of Bolivia, and bearing upon the subject of peace. 
 
 Shortly afterwards Judge Christiancy called upon me at my hotel and 
 informed me that Mr. Irogoyen, the Peruvian minister of foreign rela- 
 tions, desired to see us at his department at 2 o'clock. We called at the 
 time designated, and had a somewhat protracted interview. The min- 
 ister seemed anxious to do anything that would prove acceptable and 
 satisfactory to Bolivia. He had been informed of Bolivia's willingness 
 and desire to submit all matters involved by the war to the United States 
 for arbitration, and expressed a hearty concurrence in such suggestion 
 by Bolivia, and added that the Peruvian minister at La Paz was in full 
 accord with the Bolivian authorities at La Paz upon the subject, but 
 stated that the trouble in the premises came from the fact that as Boliv- 
 ian soil had been invaded by Chili, she (Bolivia) could not make the 
 first advance by proposing arbitration, and as Chili had declared the 
 war it was not for Peru to take the iniative. 
 
 I remarked that as in the declaration of war by Chili and in the 
 invasion of Bolivia's territory the latter did not hold Pern responsible 
 for either, it seemed to me that she (Peru) could, without compromising 
 her honor in the least, propose an arbitration that she and Bolivia both 
 professed to desire. Mr. Irogoyen replied that Peru had tendered her 
 kind offices at the outset in the interests of peace, but they were rejected 
 by Chili. I rejoined by asking if there was not some justification for 
 Chili's rejection to be found in the fact of the existence of the treaty 
 between Peru and Bolivia of 1873, and known as the " secret treaty" 
 between those two governments ; when the conversation took a differ- 
 ent direction. The interview was very pleasant, lasting about two 
 hours, resulting in a request that we return at 9 o'clock p. m., which 
 we did, when we were informed that the matter had been considered by 
 the cabinet. 
 
 The second interview developed the fact that should Chili say that 
 such terms of reference were acceptable to her, there was, there could 
 be, no impediment in the way of a bloodless adjustment of the difficulties 
 of these people, which are being attended with quite as much, if not 
 more, damage to neutrals and foreigners than to themselves. In fact, 
 Mr. Irogoyen stated: 
 
 First. That if Chili proposed arbitration upon the terms indicated by 
 the authorities of Bolivia (see inclosure to this dispatch, 1), Peru would 
 accept. 
 
 Second. That if Chili proposed reference to the parties or authorities 
 indicated by Bolivia and upon the basis implied in Bolivia's suggestion, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 11 
 
 excepting only that the time of evacuation should be referred to the 
 United States ministers for Peru, Bolivia, and Chili, Peru would acdept. 
 ,: Thus ended the second interview, which seemed to promise results in 
 the interests of civilization. I became satisfied that Peru, like Bolivia, 
 desired our government to settle this matter in the way indicated, and 
 preferred arbitration by the United States high over any and every 
 other power, as both had assured me that the kind offices of other 
 powers had been offered and rejected, giving me as a reason therefor 
 -that they were endeavoring to pattern after our form of government. 
 
 I may have been mistaken in my impressions formed, but confiding in 
 their correctness, feeling that the three powers were separated by so 
 great distance, the intercommunication being so limited, in fact in one 
 sense entirely suspended, and not being able to satisfy myself that the 
 controversy was such a one as demanded or even justified the continu- 
 ance of a bloody warfare, and especially if means were within reach by 
 which the bitterness of the conflict could be toned down without the 
 sacrifice of principle or the compromise of honor, it occurred to me that 
 if something could be done to afford a breathing spell, a cooling of the 
 passions, a little healthy reflection would naturally follow, that would 
 result in a restoration of reason, when, if a proper and timely sugges- 
 tion could be made, by which the fancied honor of these people could be 
 preserved inviolate, a peace could be obtained, and to that end I thought 
 if the conditions and the inclinations of the two northern powers (Peru 
 and Bolivia) could be presented to the Chilian authorities by Mr. Minister 
 Osborn, matters might possibly be made to culminate in peace ; and 
 Judge Christiancy agreeing with me in that respect, I concluded to write 
 Mr. Osborn (unofficially) the result of all my consultations, and leave the 
 matter with him to present to Chili or not, as he chose. Before leaving 
 Lima I was importuned by Mr. J. G. Meiggs, a North American Peruvian, 
 (and a brother of the late Henry Meiggs, famous in South American 
 railroad history), who sustains close and confidential relations with (at 
 least) one of the Peruvian cabinet, to by all means go and see Mr. Osborn, 
 knowing as he did that it would not be prudent for me to return to La 
 Paz for some time if the value of my health was of any consideration 
 with me. 
 
 Without settling the question in my own mind as to whatl would do, 
 I set out upon my return, and while on my way to Mollendo, upon ma- 
 ture reflection, I concluded that if you were cognizant of the situation, 
 you would desire me to do what I resolved upon, which was to continue 
 down the coast to Valparaiso, and confer with Mr, Osborn fully, firmly 
 .believing, after looking the ground all over, that the authorities of these 
 three peoples have hastily perched themselves upon a pinnacle of honor 
 and know of no way to get down, and that at heart they would thank 
 anybody to tell them how, or even point them to the way. Upon arriv- 
 ing at Coquimbo I telegraphed Mr. Osborn at Santiago, with whom 1 
 have been upon the most intimate terms since young manhood, that I 
 expected to be in Valparaiso the next noon, and would be glad to see 
 him before returning north. 
 
 Upon reaching Valparaiso I was met by Mr. Osborn, when a full and 
 confidential (unofficial) consultation took place, after which he informed 
 me that he had shown my dispatch to Mr. Huneens, the Chilian minis- 
 ter for foreign relations at Santiago, who had sent an invitation to me to 
 visit Santiago, and him as well. 
 
 Finding Mr. Osborn in full accord with my views already set forth in 
 this dispatch, and following his advice, I accompanied him to Santiago 
 the next day, when an interview was arranged between the minister 
 
12 AFFAIKS IN CHILI, PERU, AND BOLIVIA. 
 
 and Mr. Osborn for a meeting of all three on Saturday afternoon, at his 
 department, which lasted several hours and was more than cordial, Mr. 
 Huneens being informed at the outset that upon my part the visit was 
 a purely personal one and entirely unofficial. 
 
 Mr. Huneens expressed a desire to consult with the President that 
 evening touching the subject-matter of our conference, lasting two hours, 
 and at the same time volunteered a call upon me the next day at my 
 hotel at 12 m , which appointment he kept punctually, remaining over 
 two hours, devoting the whole of the time to the subject of this dispatch. 
 Mr. Huneens speaks the English language as well as he does his own, 
 the Spanish, and writes both readily. 
 
 Suffice it to say that at Ms instance several interviews followed, both 
 at his department and at the hotel where Mr. Osborn and I were living, 
 all of which manifesting upon his part a desire for the settlement of the 
 existing troubles, and that, too, by arbitration at the hands of the United 
 States above all or any other power, the status quo question seemingly 
 being the only one of embarrassment, Peru and Bolivia insisting upon 
 the statu quo ante helium, Chili declining; whereupon 1 suggested that 
 possibly some middle ground might be found if the parties should seek 
 for it in a spirit of forbearance and conciliation ; and as a compromise 
 upon that branch of the controversy I numbered the twenty-third par- 
 allel of south latitude, to which, and below that, Chili should withdraw 
 her troops by land and sea, disoccupying all north of such parallel in 
 order that submission might be made and arbitration proceeded with. 
 Mr. Huneens seemed to be pleased with the idea, and asked me if I would 
 be kind enough to make a proposition in writing to this effect, when I 
 promptly informed him that I had no authority to make any proposition, 
 although I had found great pleasure in discovering to him, and his gov- 
 ernment through him, the position occupied by Peru and Bolivia upon 
 the question under consideration, and the one that they would probably 
 incline to and assume, if met in a humane spirit. 
 
 Mr. Huneens then asked me if I had any objections to giving my views 
 upon paper, without signature, that he might submit them to the Presi- 
 dent; when I replied that within an hour I would do so in pencil to Mr. 
 Osborn, and if upon consultation with Mr. O. he felt disposed to hand 
 him such unofficial expression, I bad no objection to his being gratified 
 in that respect. 
 
 Upon retiring and consultation with Mr. Osborn, I penciledmy views, 
 which, being concurred in by Mr. Osborn, were by him inclosed, to Mr. 
 Huneens, with the request that it be returned to me, which was done, and 
 a copy of which is herewith inclosed and marked Inclosure 2, indi- 
 cating that I thought, if Chili was satisfied with that, Peru and Bolivia 
 would concur. 
 
 Upon reading the paper thus submitted, Mr. Huneens requested me to 
 add that which 1 have included between brackets, which he thought 
 would make sure the acceptance upon the part of Chili, and which I 
 consented to, although I thought it might possibly prove too much for 
 Peru and Bolivia to carry, and, having done that, terminated the inter- 
 view by stating to Mr. Huneens that: 
 
 More than a month hefore, I had had a long interview with the acting president and 
 minister for foreign relations of Bolivia, at La Paz, npon the subject of the difficult- 
 ies of that republic and Peru with Chili, and that the same was at the Bolivian min- 
 ister's request, who informed me that he had sought the interview to learn the opinion 
 of the Government of the United States of America, and inquired if I had any instruc- 
 tion upon the subject, and that I told him I had not, but that I knew that my govern- 
 ment regretted deeply the conflict the three governments were engaged in. He then 
 asked me for an expression ot my own views upon the situation, which I gave him 
 
AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 13 
 
 freely, making no reference to the relative merits of the controversy, but confining 
 myself to a solution of the troubles, in stating emphatically that under all the cir- 
 cumstances I thought that the safe, honorable, and profitable deliverance was only 
 to be found in arbitration by some friendly power, and that I knew that my govern- 
 ment would feel that I was poorly discharging my official duty if I failed to use all of 
 my kind and personal offices in the direction of peace, adding that I thought that 
 precedent was to be found in the conciliatory path of the past for the resort to arbi- 
 tration even after hostilities had begun, and that I thought that persistence by the 
 three countries in a desolating and devastating war, if an honorable peace could be 
 attained, implied a blindness to interest entirely inexcusable ; and at the close of 
 such interview the minister of Bolivia requested a renewal of the same at my lega- 
 tion the evening of the same day, at which time the minister of Bolivia informed 
 me, that, Peru-consenting, Bolivia would be willing to submit all matters of difference, 
 of every description, for final and complete adjustment and settlement with Chili, to 
 the President of the United States, the judges of the Supreme Court of the United 
 States, or to the United States ministers of the three republics, resident therein, if the 
 statu quo ante helium was restored, and that being mindful of a similar proposition 
 made by the Chilian Government, less than fifteen years ago, to Spain, which was 
 Tejected by that power, who went further and fared worse, and having about that 
 time, by the advice of a physician, resolved upon a trip to the coast for my health 
 that had became seriously impaired in the high altitude of La Paz, I concluded to 
 invite the United States minister at Lima to meet me at Mollendo in the interest of 
 peace, but upon reaching that place received a letter from him stating that he could 
 not then leave, and requested me to write him upon the subject, but preferring a per- 
 sonal interview, I took the steamer for Lima, and an early meeting with Judge 
 Christiancy resulted in one, two, and a third interview. It transpired that Peru wae 
 willing to submit to arbitration at the hands of the powers named by Bolivia's 
 minister of foreign relations, who was Acting President. While I learned, as I had 
 at La Paz, that the main difficulty in reaching arbitration was found in the hesitancy 
 of all to advance in that direction, which induced me to remark to Mr. Irogoyen that 
 true, it might seem difficult tor Bolivia, who claims that her soil had been invaded, 
 to propose to Chili arbitration, but as Peru had not been despoiled that she might, 
 while in the last interview the minister said that, in the event of a reference to the 
 United States ministers, his government (Peru) would be willing to allow them to fix 
 the time of the disoccupancy of the disputed territory of Chili ; and that being both 
 gratified and encouraged at the manner, frankness, and spirit of Mr. Irogoyen, after 
 consultation with Judge Christiancy, I concluded that I would undertake the tedious 
 .journey to Valparaiso that I might visit and consult my early friend, Mr. Min- 
 ister Osborn, touching the troubles of the three countries, believing that from 
 the known and acknowledged intelligence and fairness of the Chilian character, all 
 that was necessary to put matters in the way of a pacific adjustment was for Mr. 
 Osborn to submit, as a peaceful offering, the result of these frank, friendly, and uuoffi - 
 «ial conferences with the authorities of the other two contending powers, coupled with 
 the sentiments already expressed by Mr. Osborn and myself for Chili's consideration, 
 which neither compromise, embarrass, nor humiliate any or either, but presented a 
 basis upon which all desirous of peace could consistently and honorably stand, and 
 that I had only to add that I was satisfied, if Chili acceded to such suggestions, 
 the peaceful and amicable arrangement would be speedily concluded with Presidents 
 Prado and Daza upon my return to Arica, as I had conversed with each of them upon 
 my way to Valparaiso, at the same time expressing a eonsciousness of having dis- 
 charged all my duty to the Government of the United States (and more), as well as 
 that, I owed to mankind, including that, not owed to these struggling republics, except 
 as implied by considerations imposed by a common humanity, I only awaited the 
 action of his (the Chilian) Government, before reporting to my government the easy 
 steps I had taken in the premises since the date of my last dispatch to Mr. Secretary 
 Evarts, informing him of all interviews with the Bolivian authorities before leav- 
 ing La Paz, including a copy of the minister's expressed willingness to submit all 
 matters to the United States for arbitration, hoping that I might have the high privi- 
 lege of conveying to my government the intelligence, gratifying to me as I knew it 
 would be to them, that Chili had acted magnanimously and wisely, leaving with 
 Bolivia and Peru the responsibility of a continuance of a war, if it was to be pro- 
 longed, which I was satisfied they would shrink from, but would at once take such 
 action as would promptly terminate the war, end strife, and restore peace. 
 
 Upon the following morning, Mr. Huneens called at my room at the 
 hotel, with Mr. Osborn, and informed us that, so fjar as Bolivia was con- 
 cerned, there was no difficulty in submitting all matters to arbitration 
 as we had talked, but that as to Peru the Cabinet was not prepared to 
 say, and desired a little time to feel their way in Congress, which was 
 
14 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 in session, and that he desired the matter left open for consultation with 
 Mr. Osborn, to whom he would give a written expression of views dur- 
 ing the day, and which, when received, Mr. Osborn will furnish you a 
 copy of. 
 
 Returning, upon reaching Arica, Bolivia's business port, I was called 
 upon by the aids of Presidents Daza and Prado, and requested to name 
 an hour for an interview, which took place in the afternoon.. 
 
 I informed them of the result of my labors and assured them that no 
 earthly consideration save a desire for peace and the welfare of their peo- 
 ple could have induced me to have taken upon myself the labor I had 
 performed in their behalf, and especially without any knowledge of my 
 government, and which I had undertaken without any direction from it, 
 since I believed that it would justify me in so doing, inasmuch as both 
 Bolivia and Peru had expressed a desire that they not only would be sat- 
 isfied by the arbitration of the United States, but that they preferred a 
 settlement at the hands of that power in preference to any other power 
 of the world, and that I had been informed that such was the desire of 
 Chili, and that such being my information, and knowing that it would 
 take over two months to consult and receive instructions from my gov- 
 ernment, I deemed it my personal and representative duty to do as I had, 
 and trust to the judgment of my government for a justification of my 
 conduct. 
 
 While they repeatedly expressed their gratification for the interest I 
 had taken in the welfare of all three of the republics, and showered 
 upon me their sincere thanks for my labors for the peace and prosperity 
 of Bolivia and Peru, it was too evident and perhaps needless to add 
 that they were disappointed at the failure of the movement in favor of 
 arbitration, as already referred to, and greatly regretted it. President 
 Prado stated to me explicitly that they, Peru, were in the war out of con- 
 sideration for Bolivia, and if Bolivia said peace, let it come; if war, so 
 be it; and if she desired arbitration, Peru accepted that. 
 
 I said, in answer to an inquiry upon the subject, that I thought the 
 United States Government would offer mediation if Peru and Bolivia 
 desired and requested it, but further than that I could not speak, as I 
 had never assumed or ventured an opinion as to the position of my 
 government, aside from an earnest desire that I had no doubt it cher- 
 ished for peace. 
 
 I have been thus minute in disclosing to you every movement made 
 and every word uttered upon this subject, in order that you may readily 
 discover not only what I have done, but the reason for so doing, and 
 shall be more than compensated for my unofficial labor if I have not 
 incurred your displeasure in endeavoring to merit and deserve your 
 approbation. 
 
 Indications along the coast for some time have occasioned ground for 
 fears, and with many the expressed opinion, that at no distant day there 
 would be foreign intervention, and my action was influenced in a great 
 measure from a desire that an early adjustment might take place that 
 would relieve our government from the enunciation of any opinion in 
 the premises upon the principle contained in the Monroe doctrine, and 
 that might involve embarrassing compbcations ; and hoping that I have 
 not mistaken the desires of my government or overestimated their de- 
 sire for an early and amicable adjustment of these unfortunate South 
 American troubles, I have the honor to submit all my action in this 
 behalf to you for your superior consideration, at the same time sub 
 scribing myself, &c, 
 
 S. NEWTON PETTIS. 
 
AFFAIRS INi CHILI, PERU t AND BOLIVIA* 15 
 
 [Incloenre 1 in No. £2.1 
 BOLIVIA'S, POSITION. 
 
 All under the especial condition not to take any decision or compromise without the 
 knowledge and approval of the Peruvian Government. 
 
 The authorities of Chili, civil aud military, to withdraw from and disoccupy all 
 territory that they have taken possession of upon and since the 14th day of February, 
 1879, leaving all things in the state and condition they were in, previous to the 14th 
 day of said month. 
 
 Then, if arbitration is agreed upon, the arbitrators to hear, determine, and decide 
 all matters in dispute between Bolivia and Chili and Peru, and establish the divisory 
 line between the two countries ; Bolivia claiming the boundary line affixed by the 
 Chilian constitution, taking into consideration the damages caused by the act of the- 
 14th of February, and the subsequent aggression claimed by Chili, the expenses of the 
 war. 
 
 The reference may be made to the President of the United States of America as sol© 
 arbitrator, or to the judges of the Supreme Court of the United States of America, or 
 to the ministers of the United States of America in Peru, Bolivia, and Chili ; a decision 
 by a majority of the arbitrators sitting, to be valid and binding upon the parties, to be 
 approved in its execution and perpetuity by the President, of the United States. 
 
 [InclOBare 2 in No. 22.] 
 SUGGESTIONS. 
 
 Whereas it has been suggested through a friendly medium that even now the path 
 way to an early, honorable, and profitable peace leads in the direction of arbitration 
 at the hands of some known and acknowledged power, alike friendly to Peru, 
 Bolivia, and Chili ; 
 
 And desiring, in the spirit of conciliation and compromise, and in the interests ot 
 peace and humanity, to transfer and elevate the contest of principle from the theater 
 of force to that of reason and conscience : 
 
 It is agreed that all differences and all matters in dispute between Peru and Bolivia 
 upon one side, and Chili upon the other side, of whatever character, class, kind, de- 
 scription, or extent, be submitted to * * * who shall be requested to meet upon 
 the * * * of September, 1879, for the purpose i of receiving and considering the 
 statements of the proper representatives of each of the three republics in support of 
 their respective views and claims, and, after such presentation, hearing, and considera- 
 tion, to determine and decide upon, all matters concerning which Peru, Bolivia, and 
 Chili are now at variance; and the same being reduced to writing and signed by a 
 majority of the, arbitrators, to be final, binding, .and conclusive upon the said repub- 
 Uca and the governments thereof. 
 
 And in the event that the arbitrators should be of opinion that Bolivia is justly and 
 equitably entitled to any territory south of the twenty-third parallel south latitude, 
 it is understood that the arbitrators, or a majority of them shall ascertain and fix the 
 amount that Chili shall pay to Bolivia, and the manner of payment for said territory, 
 provided the respective legally constituted representatives before the arbitrators can- 
 not agree upon such amount as compensation therefor, and the divisory line between 
 Chili and Bolivia shall thereupon by such arbitration established upon the said parallel 
 twenty-third south latitude; therefore, it is stipulated : 
 
 That from this day of August, 1879, hostilities of every character shall cease, and 
 
 neither party augment its force on land or sea ; that Chili at once disoccupy all terri- 
 tory north of the 23d degree of south latitude, withdrawing all her forces, both by 
 land and sea, south of said 23d degree, leaving clear to Bolivia as well the coast south 
 of said degree ten minutes below said twenty-third parallel, but in all other respects 
 the status quo to remain as at present.- This instrument to have no force or validity 
 until signed by the proper authorities of the three republics. 
 
 No. 10. 
 
 Mr. Pettis to Mr. Evarts. 
 
 No. 23.] Legation of the United States, 
 
 La Paz, Bolivia, August 25, 1879. (Received October 16.) 
 Sir : I have Ithe honor to acknowledge the receipt of your dispatch of 
 the 23d June last (No. 12), and have, in compliance with directions therein 
 
16 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 contained, called the attention of the minister for foreign relations of 
 Bolivia to the subject of your dispateh, as will appear from a copy of my 
 saidjetter herewith forwarded, marked inclosure 1. 
 
 I am, &c, 
 
 S. NEWTON PETTIS. 
 
 [Inclosure in Mr. Pettis'8 No. 23.] 
 
 Legation of the United States, 
 
 La Paz, August 25, 1879. 
 
 Sir : I am informed by an official dispatch from Washington that the United States 
 Government has received information that the British Government has lately been in- 
 formed that the Government of Bolivia has decreed the issue of letters of marque, with 
 authority to privateers to seize Chilian property iu neutral vessels, and that agents 
 have departed for the United States, and assuming that my government has been cor- 
 rectly informed, I am directed by it to call the attention of the Bolivian Government 
 to the treaty of 1858, and especially to the sixteenth article thereof, which stipulates 
 for the freedom from capture or confiscation of effects or goods belonging to subjects 
 or citizens of a power or state at war when found on board of neutral vessels, with 
 the exception of articles contraband of war. 
 
 May I ask your excellency to be kind enough to advise me whether the information 
 received by my government touching the decree of the Bolivian Government herein- 
 before referred to is correct or not ? 
 
 Allow me to renew to your excellency the assurances of the high consideration with 
 which I have the honor to remain, &c, 
 
 S. NEWTON PETTIS. 
 
 No. 11. 
 Mr. Pettis to Mr. Evarts. 
 
 No. 24.] Legation of the United States, 
 
 La Paz, Bolivia, August 25, 1879. (Received October 16.) 
 Sir: I am in receipt of your dispatch of June 25 (No. 13), and inclo- 
 sures, and in answer thereto I have the honor to inform you that I have 
 transmitted one copy of the Treasury circular to the minister of foreign 
 relations of Bolivia, as will be seen by my letter addressed to him upon 
 the subject, a copy of which is herewith inclosed and marked inclosure 1. 
 I am, &c, 
 
 S. NEWTON PETTIS. 
 
 [Inclosure in Mr. Pettia'B No. 24.] 
 
 Legation op the United States, 
 
 La Paz, Bolivia, August 25, 1879. 
 Sir: In connection with my note this day addressed to your excellency upon the 
 subject of information received by the British Government and communicated to the 
 Government of the United States touching upon the supposed action of the Bolivian 
 Government with reference to the issuing of letters of marque, I inclose herewith a 
 copy of a circular issued by the Secretary of the Treasury of the United States of 
 America under date of the 21st June last, bearing upon the subject of the observance 
 of the neutrality laws of the United States, all of which is most respectfully submitted 
 to your excellency's consideration. 
 With distinguished consideration, I have the honor to be, sir, &c, 
 
 S. NEWTON PETTIS. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 17 
 
 No. 12. 
 
 ilfr. Eparts to Mr. Tetiis. 
 
 No. 25.] Department of State, 
 
 Washington, September 19, 1879. 
 i Sir : I transmit herewith a translation of an article from El Comercio, 
 of the 7th of August last (a newspaper published in Lima), in which it 
 is represented that information had been received from a private source 
 that you had come on a special mission to the Eepublics of Bolivia, Peru, 
 and Chili, and that an interview had taken place between yourself and 
 General Prado ; and from another source it is represented that an inter- 
 view was subsequently, held between yourself and General Daza. 
 
 In reply I have t6 express regret that any opportunity for such obser- 
 vations as are contained therein should have been furnished by your 
 intercourse in these countries on your way to Bolivia. In view of these 
 representations you are desired to make an explicit statement on the 
 subject, though the Department is, in advance, disposed to consider it 
 impossible that you should have assumed any functions, express or im- 
 plied, outside of your own mission to Bolivia. 
 I am, &c, 
 
 WM. M. EVAETS. 
 
 No. 13. 
 
 Mr. Pettis to Mr. Seivard. 
 
 No. 31.] Legation oe the United States, 
 
 La Paz, Bolivia, September 25, 1879. (Beceived Nov. 4.) 
 Sir : I have the honor to acknowledge the receipt of your dispatch of 
 the 11th ultimo (No. 18), and to inform you that I have observed the 
 direction therein given, as will appear from inclosure 1 of this dispatch. 
 I have the honor to be, sir, &c, 
 
 S. NEWTON PETTIS. 
 
 [Inclosure 1 in No. 31.] 
 Mr. Pettis to Sis Excellency the Minister of Foreign Relations of Bolivia. 
 
 Sir : I have the honor to inform, you that I am in receipt of a dispatch from my gov- 
 ernment at Washington, acknowledging the receipt of two pamphlets expressive of 
 the views.of Bolivia npon the questions at issue between Bolivia and Chili, forwarded 
 by me to the State Department at Washington upon the 6th day of last June, at the 
 instance of the then Acting President of Bolivia, and I am directed by the same to 
 convey to the high source whence they emanated the thanks of the Government of the 
 United States, and I have taken great pleasure in so doing. 
 
 Allow me to renew, &c. , 
 
 S. NEWTON PETTIS. 
 
 No. 14. 
 
 Mr. Pettis to Mr. JEvarts. 
 
 No. 35.] Legation of the United States, 
 
 La Paz, Bolivia, September 29, 1879. (Beceived Nov. 15.) 
 Sir : I have the honor to be in receipt of your dispatch of the 8th 
 ultimo, No. 17, with inclosure, consisting of a copy of a dispatch from 
 S. Ex. 79 2 
 
18 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Mr. Minister Dichman, United States minister resident at Bogota, under 
 date of June 20 (last), No. 100, and have considered both carefully, and 
 shall bear in mind your suggestions if the occasion which your dispatch 
 contemplates presents itself. 
 
 I have been informed by Mr. * * * that the Bolivian authorities 
 here have been informed of the action of the Colombian Congress to 
 which Mr. Minister Dichman refers, and have information that Doctor 
 Arosemena visited Presidents Daza and Prado at Arica, in pursuance 
 of his appointment and in furtherance of the object of his special mis- 
 sion, but that his mediatory offer upon the part of Colombia was rejected 
 by both. Whether he visited Chili or not I have no information. 
 
 The failure of the special mission of Doctor Arosemena strengthens 
 me in the opinion I have for some time entertained, which is that neither 
 of the three belligerent powers desire the mediation or interference of 
 any power but the United States, and I believe would accept gladly the 
 mediation of our government at once, if tendered. 
 I am, &c, 
 
 S. NEWTON PETTIS. 
 
 No. 15. 
 
 Mr. Pettis to Mr. Setcard. 
 
 No. 36.] Legation of the United States, 
 
 La Paz, Bolivia, September 30, 1879. (Received Nov. 15.) 
 
 Sir : With reference to your dispatch of the 18th ultimo, No. 21, this 
 day received, acknowledging the receipt of mine dated June 28 (last), 
 No. 15, 1 may be permitted to say that I am gratified to learn that the 
 action to which my dispatch referred met with Department approbation. 
 
 If not already, you will soon be in possession of the "further develop- 
 ments" of the question presented in such dispatch, and which I am glad 
 to be informed is interesting the Department, as you will find all set forth 
 in my dispatch No. 22, the length of which I regretted, but could not 
 prevent. 
 
 Prom the contents of your dispatch I find further ground for the opin- 
 ion some time entertained by me that these three contending powers all 
 desire the settlement of their troubles by the United States, and I doubt 
 whether all can agree upon any other power either by way of mediation 
 or arbitration. 
 
 I think I intimated in d former dispatch that the late minister for for- 
 eign relations and Acting President of Bolivia, Pedro J. Guerra, had 
 stated to me that Great Britain, Germany, and Brazil had tendered their 
 friendly offices, and that M. Irogoyen, the Peruvian minister of foreign 
 relations, had intimated to me the same thing, while Mr. Huneens, of 
 the Chilian cabinet, added thereto the information that Ecuador, through 
 a special envoy, Ex-President Urbina, had also offered the mediation 
 of Ecuador, which had been declined; and now added to such refusals 
 the rejection of Colombia, taken in connection with the several verbal 
 avowals to me upon the subject, establishes me in the belief that they 
 all desire the mediation of the United States, and that each and all are 
 too proud to ask our government to interpose its friendly offices, as each 
 of the ministers referred to declared to me that they would be satisfied 
 with any action the United States might take in the direction and inter- 
 est of peace. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 19 
 
 I account for such preference, first, from the fact that Great Britain, 
 Germany, and Prance are more largely interested financially upon the 
 western coast of South America, and I may say in the three republics, 
 than the United States, for it is doubtless true that the industries that 
 have been paralyzed, and the commerce that has been destroyed by 
 bombardment, which seems to be the favorite and principal system of 
 warfare practiced thus far, was produced by their capital and fostered 
 by their energies and intelligence, and it would not have occasioned any 
 surprise to me had the countries whose citizens had invested their capi- 
 tal for the welfare of some, if not all, of these republics forbidden the 
 destruction of their property by conduct that fell but little, if anything, 
 short of a wanton indulgence of madness, malice, and folly. 
 
 Secondly, they pride themselves upon the avowal that they are as 
 fast as possible fashioning their form of government after our own, and 
 are vain enough to believe that they are succeeding, and that the United 
 States are gratified, not to say flattered, by their exertions in this direc- 
 tion, and therefore feel an interest in the success of their experiment, 
 and would deplore a failure upon their part, whether it came from inter- 
 nal dissensions or foreign intervention. 
 
 • So far as the mediation of Ecuador and Colombia is concerned, I 
 think the belligerents looked upon the offers as but little, if any, short 
 of presumption upon their part, while Brazil's tender was not considered 
 entirely disinterested under the circumstances. 
 
 In this connection I may say that Mr. Bollivino but yesterday in- 
 formed me that the Brazilian minister resident here has been very im- 
 portunate in his efforts and endeavors to have Bolivia accept Brazil's 
 mediation, appealing to his excellency the late minister of foreign rela- 
 tions upon personal grounds, and giving as a reason that such an accept- 
 ance upon the part of Bolivia would result in his (the Brazilian minis- 
 ter's) promotion and advancement by his government. 
 
 I shall be glad to learn at any time that our government has moved 
 in the direction of peace and a higher civilization for these people by 
 way of mediation, feeling confident that such a step upon the part*of 
 the United States would be hailed with delight and satisfaction by all 
 concerned, firmly believing that the hope of all, turns to the United 
 States, and that such mediation, and such alone, will promote and se- 
 cure the material interests of these three republics and those of South 
 America generally, realizing as I do that the manner of conducting the 
 war in the past and present is a piece of stupendous folly, and if per- 
 sisted in can only result in utter ruin, bankruptcy, and national death, 
 as the maintaining of their respective armies (bo far from each other) 
 will soon impoverish all. 
 
 Neither party has a fleet strong enough to engage in a conflict that 
 would entitle itself to the dignity of a naval engagement, but each go 
 skulking around seeking a safe opportunity (in the absence of the other) 
 to destroy some thriving little town upon the coast, the product of foreign 
 industry, capital, and enterprise, and sinking their launches ; and it is 
 palpable to the most casual observer of men and things that such cam- 
 paigning can never end the conflict. 
 
 I know of no diversity of opinion in any of the three republics upon 
 the question of a pacific adjustment of the differences and difficulties of 
 these people, all feel that it should take place and promptly, but wher- 
 ever you find the English entrenched with capital and strong in num- 
 bers, as in Valparaiso, or a small sprinkling of individuals as at Mol- 
 lendo, you will hear mutterings about Yankee intervention, but it finds 
 no countenance with or among the citizens or possessors of the soil, and 
 
20 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 such blustering is understood by all to be the product of an anxiety to 
 have England interfere and pacify these people. 
 
 As you may correctly infer from what I have hereinbefore stated, 
 aside from this small English bluster, all not only desire our govern- 
 ment's prompt action, but really expect it, and in fact, I think, are gen- 
 erally surprised at the delay upon the part of the United States. 
 
 My position here is understood perfectly (and has been from the out- 
 set) to be in favor of arbitration by a friendly power, that all could con- 
 sider impartial, and have only entertained the consideration of the action 
 of our own government in that connection, except as the indicated pre- 
 ference expressed by the cabinets of all three of the countries made it 
 not only proper but absolutely necessary that I should. 
 
 Mr. Allen Carr, the Brazilian minister resident here (and who you 
 may remember in "Washington during the rebellion), volunteered to me 
 a few days since the expression that after one engagement of the parties' 
 forces he "would be with me in my efforts," meaning, I suppose, my 
 efforts at pacification. 
 I have, &c, 
 
 S. NEWTON PETTIS. 
 
 No. 16. 
 
 Mr. Hunter to Mr. Pettis. 
 
 No. 20.] Department of State, 
 
 Washington October 1, 1879. 
 
 Sir : A dispatch, without number or date, has been received from you, 
 detailing the incidents of your recent visit to Lima and Santiago, in the 
 interest of peace between the parties to the existing war. 
 
 As your expedition was professedly undertaken without the knowledge 
 or direction of your government, and as favorable results therefrom were 
 not apparent at the time your dispatch was written, it seems prema- 
 ture to express either approval or distrust of your course. Your aim 
 seems to have been limited to endeavoring to make each of the three 
 governments concerned privately acquainted with the desire of the others 
 for the termination of the contest, and the extent to which each might 
 be disposed to make concessions in order to reach an accord as to the 
 basis on which their differences might be eventually submitted to the 
 arbitration of a friendly power, should a direct settlement be unattain- 
 able. Unauthorized, and even rash, as your experiment might appear, 
 it may at least have led the contestants to the healthy consideration of 
 the terms on which the strife might be ended. Should the knowledge 
 of the views of each other thus gained conduce to an eventual settlement, 
 this government could not but rejoice at the result. It is not, however, 
 disposed to dictate a peace, or to take any steps looking to arbitration 
 or intervention in disparagement of belligerent rights, or even to urge the 
 conditions under which it may be reached. Its good offices have not 
 been tendered, but if sought on a practicable basis of arbitration sub- 
 mitted by the several parties to the struggle, the President would not 
 hesitate to use them in the interest of peace. 
 
 In this respect of the question, and having your own assurances that 
 the governments with which you have conferred have been frankly ac- 
 quainted with the unauthorized character of your expedition, the Depart- 
 ment dismisses, as unbased rumor of a hostile press, the statement in 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 21 
 
 some of the Chilian journals, that you have indicated a purpose on the 
 part of this government to end the war by intervention or by arbitration 
 on terms proposed by itself. 
 
 Your further and frank reports on this matter are awaited with in- 
 terest. 
 
 I am, &c. ; 
 
 W. HUNTER, 
 
 Acting /Secretary. 
 
 No. 17. 
 Mr. Pettis to Mr. Seward. 
 
 Unofficial.] La Paz, October 4, 1879. 
 
 Dear Me. Secretary: I was to-day invited to a conference at the 
 office of foreign relations for next Monday afternoon, of which I have 
 advised Secretary Evarts. 
 
 I inclose a slip from the last issue (second) of the Panama Star and 
 Herald, and the previous number as well. I send them that you may 
 see how gently they write. • I am assured, and am satisfied, that the 
 people of the three republics have none other than the kindest feelings 
 toward me, for the quiet course I have pursued in endeavoring to have 
 them gratified in the interest of peace and civilization, and am myself 
 gratified to be able to indulge in the belief that my labors will bear 
 fruits, and that all will redound to the interest of North as well as South 
 America, and their honor also. 
 
 With best wishes for your health and prosperity, and kindest regards 
 to Mr. Secretary Evarts, I remain as ever, &c, 
 
 S. NEWTON PETTIS. 
 
 Hon. F. W. Seward, 
 
 Washington, D. G. 
 
 [Inclosure 1 in Mr. Pettis' letter of October 4, 1879.] 
 
 [From tlie Panama Star and Herald, Lima correspondence of August 13, 1879.] 
 
 The American minister in Bolivia, Judge Newton Pettis, recently visited Arica and 
 Iquique and had long private interviews with Generals Prado and Daza. He then 
 proceeded to Chili. It is rumored that some attempt at mediation is being made by 
 the United States, but if such is the fact the secret has been admirably kept. General 
 Urbina, the special envoy of Ecuador to Chili, approached the Santiago Government, 
 with the same purpose, but met with immediate and decisive rebut. 
 
 [Inclosure No 2 — From tlie same, Lima correspondence of August 27, 1879. ] 
 
 By the last steamer frbm the south we are informed that the honorable Mr. Pettis, 
 United States minister to Bolivia, had returned to Arica from his visit to Chili, and 
 held a long private interview with Generals Prado and Daza. As was mentioned in 
 a previous dispatch it is surmised that an effort is being made by the Government of 
 the United States towards mediating in the present question between the three repub- 
 lics, and that this is the direct object held in view by Mr. Pettis. It is even named 
 here that the probabilities are in favor of peace, and that Chili has consented to a 
 suspension of hostilities, and that the respective Presidents of Peru and Bolivia are 
 not averse to an arrangement of difficulties on an equitable basis. Peru would be 
 
22 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 the gainer probably in some new dispositions regarding the goods for Bolivian con- 
 sumption dispatched through her custom houses and transported qver her territory ; 
 Bolivia would be placed again in possession of the ports seized by Chili, whilst the 
 pretentions of Chili and Bolivia to the territory would be left to the arbitration of 
 some third power. These are the rumors prevalent here, but such reticence is observed 
 in official circles as to render it impossible to guarantee their accuracy. The belliger- 
 ents, and Chili more particularly, evidently perceive that the struggle must be pro- 
 longed for an indefinite period, as the limited resources at their disposition naturally 
 hamper all extensive military or naval movements, and Peru, with her diminished 
 navy, cannot venture a decisive combat on the sea. 
 
 The American minister for Bolivia, Mr. Pettis, arrived at Arica on the Lima. 
 
 No. 18. 
 
 Mr. Pettis to Mr. Evarts. 
 
 No. 41. J Legation of the United States, 
 
 La Paz, Bolivia, October 7, 1879. 
 
 (Received November 24, 1879.) 
 
 Sir: I have the honor to inform you that I yesterday attended the 
 conference to which I was last Saturday invited by his excellency, Mr. 
 Serapio Reyes Ortiz, minister for foreign relations, and of which I ad- 
 vised you of that date, in my dispatch No. 40. 
 
 Mr. Bollivino, the government interpreter and translator, called for 
 me at the hour previously designated; and none were present at the 
 conference but Mr. Ortiz, Mr. Bollivino, and myself. 
 
 His excellency at first took occasion to allude to the matter embraced 
 in a communication which, in obedience to instructions from the De- 
 partment, I some time since addressed to Mr. Guerra, the then acting- 
 minister of foreign relations, afterwards deceased, respecting the decree 
 of the president of this republic in reference to letters of marque; assur- 
 ing me that I should receive an answer at an early day. 
 
 Mr. Ortiz was in possession of the portfolio for foreign relations at 
 the time of the declaration of war by Chili, but passed it over to Mr. 
 Guerra to accept an important special mission to Peru, remaining at 
 Lima until President Prado left the capital, about the middle of May 
 last, to assume command of the Peruvian army at Arica and Tacna, 
 when Mr. Ortiz accompanied him, remaining with the two presidents, 
 Generals Daza and Prado, acting as secretary-general of state under 
 General Daza until called here, to resume the portfolio he had laid down, 
 in consequence of the death of Mr. Guerra, and is now the acting presi- 
 dent of Bolivia. 
 
 I met Mr. Ortiz in Lima, on my way here, he calling upon me, in 
 company with Mr. Minister Plores, the envoy extraordinary of Bolivia 
 to Pern. I met him, with President Daza, at Pisaqua, when passing 
 down the coast late in July, and at Arica, with both presidents, Gen- 
 erals Daza and Prado, upon my return. He was their adviser and 
 counsel then, and I may say he is so still. 
 
 The conversation and conference soon turned upon the war, which, 
 doubtless, was the purpose of calling it. Mr. Ortiz desired to know the 
 feeling in the United States, and of our government. 
 
 I stated that I had learned nothing from that direction since my in- 
 terview with the two presidents at Arica, in his presence, to change the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 23 
 
 opinion by me then expressed; that my government deplored the un- 
 happy differences existing between Chili, Bolivia, and Peru; and that I 
 felt satisfied that the United States would gladly assist in any proper 
 way in its power in the settlement of their troubles; in truth, stood 
 ready to render any assistance it might in honor be able to, toward the 
 restoration of peace, but was, of course, averse to doing anything, or 
 saying anything, that would be considered by the parties interested 
 either officious or presumptuous upon her part. 
 
 Mr. Ortiz then remarked that Bolivia had been all the time, and still 
 was, in favor of mediation, and that he believed Peru was also; but 
 that it had not been offered by any power that they felt inclined to 
 accept; but that an offer of mediation from the United States would 
 be considered respectful and respectable, coming from a responsible, 
 powerful, and friendly nation. 
 
 I expressed the opinion that if my government was satisfied that the 
 contending parties desired to avail themselves of its good offices, and 
 that amicable relations could be restored through its efforts, I could not 
 believe that the President of the United States, influenced by his de- 
 sires to restore peace to the people of the three republics with whom his 
 government is on such terms of entire cordiality and friendship, and to 
 advance their prosperity would hesitate to tender the good offices of the 
 United States for that purpose, but I thought before any such media- 
 tory step upon the part of my government was taken, it would have to 
 be satisfied that the offer would be acceptable to the contending powers, 
 and in the spirit that it would be made; whereupon Mr. Ortiz stated 
 that President Daza and President Prado, as well as himself desired 
 the mediation of the United States and would gladly accept the same 
 if offered, but that inasmuch as Chili had declared the war, Bolivia and 
 Peru did not feel that they could honorably solicit formally the media- 
 tion of any other power. 
 
 I then added that such being the wish and desire of the two govern- 
 ments, it was possible that my government in consideration of such posi- 
 tion of Bolivia and Peru, might, in the interest of peace and in its well 
 known character and office of peacemaker, make thie desired offer and 
 tender, when the knowledge of such a desire upon the part of Bolivia 
 and Peru became known to the President, and which I should lose no 
 time in communicating to him, feeling that I should incur his displeas- 
 ure, if not forfeit his good opinion by withholding it; and thus ended a 
 very cordial and pleasant interview that lasted from 2 o'clock until 
 nearly 4. 
 
 This morning I addressed a "private unofficial" note to his excellency, 
 Mr. Ortiz, a copy of which I herewith send forward marked "Inclosure 
 1," and a few moments since received a reply, which translated by Mr. 
 Bullivian and copied by me is herewith inclosed, marked "Inclosure 2." 
 
 By a comparison of that portion of my note (Inclosure 1) that is in- 
 cluded within quotation marks, with his excellency's reply, you will 
 discover that the minister flinches a little as he speaks of a condition 
 of the disocou'pying of the territory taken possession of by Chili, and 
 which is claimed by Bolivia. Mr. Bullivian, who delivered to me the 
 letter and the translation, informed me that it was only inserted (the 
 condition) as expressive of the feelings of the people of Bolivia upon 
 that question. 
 
 This dispatch will in all probability reach the department some time 
 from the 15th to the 20th proximo, when I hope to be at Panama, and 
 shall be pleased to receive, by cable, any advices that the department 
 may desire to send me at that place. 
 
24 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Should I have occasion to cable the department from Panama, T will 
 use for the word — 
 
 Mediation, Japan. 
 Arbitration, Panama. 
 Ecuador, Colon. 
 Columbia, Floi'ida. 
 Brazil, Alabama. 
 Territory, Holland. 
 Christiancy, Letter "C." 
 Osborne, Letter "O." 
 
 In view of the fullness of this dispatch, it is not probable that any cable- 
 gram will be found necessary from me unless made so by advices that 
 the department may address to me there. 
 
 I am of the opinion, from what occurred between the Chilian authorities 
 and Mr. Osborn and myself at Santiago, that Chili desired, and will ac- 
 cept, the mediation of the United States, if it is offered, and I think Mr. 
 Osborn was of the same opinion. 
 
 My impression is that all of these people are in fear of early armed 
 foreign intervention, and perhaps not without reasonable ground for 
 such apprehension. 
 
 I should, perhaps, state that Mr. Bullivian informs me that since the 
 reply of Mr. Ortiz to me, Mr. Ortiz conferred fully with the envoy ex- 
 traordinary of Peru, at La Paz, and that he concurred fully in Mr. 
 Ortiz's expression to me. 
 
 I have the honor, &c, 
 
 S. XEWTO^T PETTIS. 
 
 [Inclosure 1 in No. 41.} 
 
 Mr. Pettis to Mr. Ortiz. 
 Private and unofficial.] La Paz, October 7, 1879. 
 
 Sib : The more I refect upon the character and conclusions of our interview yester- 
 day, the more am I gratified at both, realizing that from the known, close, confiden- 
 tial, and intimate relations, personal and official, that have existed between both 
 President Daza and President Prado and yourself since the declaration of war by 
 Chili, you were authorized and prepared to speak for them and their governments as 
 well, so far as an expression of their views and wishes concerned the question of the 
 war, and peace as well. 
 
 You were pleased to say to me upon the occasion referred to, that " President Daza 
 and President Prado, as well as yourself, desired the mediation of the United States, 
 and would gladly accept the same, if offered, but that inasmuch as Chili had declared 
 the war, Bolivia and Peru did not feel that they could honorably solicit formally the 
 mediation of any other power." 
 
 I address to your excellency this private and unofficial note, for. the purpose of ask- 
 ing if you will be pleased to put such statement upon paper, with translation by Mr. 
 Bullivian, in order that I may establish it to the President of the United States, and 
 to the Honorable William M. Evarts, Secretary of State of the United States, believing 
 as I do that a compliance with such suggestion will result in such desired offer upon 
 the part of the United States Government at an early day. 
 I have, &e., 
 
 S. NEWTON PETTIS. 
 
 [Inclosure 2 in No. 41. — Translation.] 
 
 Mr. Ortiz to Mr. Pettis. 
 
 La Paz, October 7, 1879. 
 Sir: I answer with pleasure your welcome note of this date, with the same private 
 character as the sentiments that we have interchanged in our unofficial confidence. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 25 
 
 I have assured to your excellency that I believed that I knew of the feelings of their 
 excellencies, the supreme directors of the war, and those of their respective govern- 
 ments of Bolivia and Peru, and the special reasons of the intercourse that I have 
 maintained with them, and that I can formulate these feelings in following terms : 
 
 The allied nations will not refuse any mediation, but they cannot solicit it. They 
 will see with pleasure that the supreme government of the United States will inter- 
 pose effective or practical mediation in preference to that of any European states. As 
 Peru and Bolivia have been offended, it would not be dignified and honorable for them 
 to make any insinuations at all about a mediation ; but they would accept it under 
 the particular condition that the invaded territory of Bolivia shall be disoccupied 
 by the Chilian forces. 
 
 Theallied nations do not make war, ouly because they have been impelled to it ; 
 and they do not pretend to usurp the Chilian territory, nor diminish the rights of Chili 
 as an independent state, but it is only to recover the usurped territory, conserving 
 our own rights of sovereign states and the dignity of the pavilions of Peru and Bo- 
 'livia. 
 
 They do not refuse the arbitration, and they will agree with the designation of any 
 arbitrators whatsoever that may be honorable. 
 
 These ideas constitute the feelings of the directors of the two allied nations and are 
 those of which I have the honor to manifest to your excellency, so that you cau make 
 use of this private letter with the noble purpose your excellency has undertaken 
 for your government and the belligerent nations. 
 I have, &c, 
 
 SEKAPIO REYES ORTIZ. 
 
 ISO. 19. 
 
 Mr. Pettis to Mr. JEvarts. 
 
 No. 42.] Legation of the United States, 
 
 La Paz, October 8, 1879. 
 (Received November 24.) 
 
 Sie : Had time permitted before the mail of yesterday closed I should 
 have inclosed a map, herewith sent forward, and added a few words ex- 
 planatory thereof, which with it, is now submitted. 
 
 As I have been able to gather the facts involved in this controversy 
 from the most reliable data at hand, I conclude : 
 
 First. That in the colonial times of these countries now at war Chili 
 exercised her jurisdiction unchallenged as far north as the 23d degree 
 (south latitude), which included the Bay of Majellones and a southern 
 portion of the desert of Atacama. 
 
 Second. That after the Spanish yoke was thrown off no change was 
 made in the boundaries between Bolivia and Chili for years. 
 
 Third. That it seems to me that there can be little, if any, doubt 
 about the fact that the rich and valuable guano discoveries on the coast 
 of the Atacamathrough the enterprise and industries of Chili, about 1840, 
 resulted in a claim by Bolivia that has since been the subject of much 
 controversy and several treaties, at least two. 
 
 Fourth. That discussion continued between the two countries, Bolivia 
 and Chili, until 1864 or 1865, when an attempted invasion by Spain 
 seemed to necessitate relations of cordiality between Bolivia and Chili, 
 if they would observe the first law of nature, and, doubtless influenced 
 by interested and selfish considerations, they were induced to forget, 
 or at least smother, their own dissensions, in order to strengthen each 
 other and make common cause against a common foe, concluded a treaty 
 establishing the boundary line at 24th degree, which conceded to each 
 a sort of tenancy in common between the 23d and the 25th degrees, 
 upon certain conditions and under certain restrictions. 
 
 Fifth. Thus the two governments finally found themselves at vari- 
 
26 AFFAIRS IN CHILI, PEElT, AND BOLIVIA. 
 
 ance upon the question of treaty stipulation observance, when discus- 
 sion upon the subject resulted in the treaty of 1874 between Chili and 
 Bolivia, which, by modification and change, actually abrogated the treaty 
 of 1866, when in 1878 the two powers find themselves further apart than 
 ever, and it would seem with respect to the observance or disregard of 
 the treaty stipulatious contained in the instrument and covenant of 
 1874, concerning which they went to war, and that, too, notwithstand- 
 ing the treaty provided for arbitration between the parties in the event 
 of any further or future misunderstanding. 
 
 Peru finds herself involved, either willingly or unwillingly, in conse- 
 quence of a secret treaty with. Bolivia, made in 1873, providing for the 
 mutual protection of each other. 
 
 If I am correct in the premises, would it not be enough to ask of 
 Chili to withdraw her forces south of the twenty -three and a half (23£) de- 
 gree, preceding arbitration, if proposed and agreed upon ? That would 
 leave to Chili Antofagasta while arbitration was progressing, and to 
 Bolivia Mejillones and Caracoles, although the map sent, locates Cara- 
 coles (in error) north of the 23d degree. 
 
 I suggest this in the belief that Chili would consent to this, and in 
 that connection ask if Bolivia should not be satisfied with that as pre- 
 liminary to pacific proceedings. 
 
 You will see that I have pencilled a line midway between the 23d and 
 24th parallel, which I think a fair subject of compromise upon the " dis- 
 occupancy" question, which Bolivia is always remembering and never 
 forgetting. 
 
 I have the honor, &c, 
 
 S. XEWTON PETTIS. 
 
 Xo. 20. 
 
 Mr. Pettis to Mr. Erarts. 
 
 So. 43.] Legation op the United States, 
 
 La Paz, Bolivia, October 9, 1879. (Keceived November 24.) 
 Sir : I have the honor to inclose a translated copy of a communica- 
 tion this day received from the minister of foreign relations of Bolivia, 
 in reply to mine to him with reference to the subject-matter of your dis- 
 patch Xo. 12, which is marked Inclosure 1. 
 
 The delay in answering mine upon the subject doubtlesss arose from 
 he sickness and death of Mr. Guerra. 
 I am, &c, 
 
 S. XEWTOX PETTIS. 
 
 [Inclosure 1 in Xo. 43. — Translation.] 
 
 Mr. Ortte to Mr. Pettis. 
 
 La Paz, October 9, 1879. 
 
 Mr. Minister : The executive council of this republic has had the honor to receive 
 and take note of the dispatch your excellency has favored us v^ith on the 25th of last 
 August, with the object of advising us that' your excellency lias been informed by 
 official note from Washington that the Government of the United States has learned 
 that the British Government has been informed of a decree issued by this o-overnment, 
 authorizing the use of privateers and the capture of Chilian property iu neutral ships', 
 and that to this effect Bolivia has sent agents to the United States. * 
 
 In consequence of this, your excellency calls the attention of my government to the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 27 
 
 treaty celebrated between the United States and Bolivia in 1838, and very particu- 
 larly to the 16th article of said treaty, which expresses that the effects or goods be- 
 longing to the citizens of a belligerent nation are protected on board neutral ships, with 
 the exception of contraband articles. 
 
 Answering the question which thereby arises, and which your excellency has the 
 honor to put to me, whether the information received by the United States as to the 
 decree given out by Bolivia is or is not true, I am gratified, to inform your excellency 
 that, in fact, my government, in the exceptional circumstances in which Bolivia finds 
 itself as to the other states, for it absolutely does not count upon a single ship at sea, 
 and in order to counteract the aggression of Chili, which possesses a powerful navy, 
 has thought convenient to authorize in its defense the use of privateers, by the su- 
 preme decree published on the 26th of March, of the present year. 
 
 Your excellency will understand the perfect right that pertains to Bolivia, as she 
 has not adhered to the treaty of Paris, which prohibits the fitting out of privateers ; 
 having besides respected the exceptional case which, by the treaty of 1858, exists with 
 the United States, as, allow me to inform your excellency, in the decree issued by my 
 government authorizing the privateers to seize ajl cargo of Chilian property found on 
 board a neutral vessel, whether a contraband or not, are excluded those cargoes sail- 
 ing under the United States flag. 
 
 With this declaration I have, &c, 
 
 SERAPIO REYES ORTIZ. 
 
 His Excellency S. Newton Pettis, 
 
 Minister Resident of the United States, fyc. 
 
 No. 21. 
 
 Mr. Pettis to Mr. Evarts. 
 
 No. i-L.] Legation of the United States, 
 
 La Paz, Bolivia, October 15, 1879. (Beceived Nov. 24.) 
 Sir : I take pleasure in inclosing the communication of Mr. Minister 
 Ortiz, of this date, in reply to mine to him last August, inclosing to him, 
 as directed by the Department, a copy of a circular issued by the Secre- 
 tary of the Treasury, accompanying your dispatch No. 13, marked In- 
 closnre 1, translation. 
 
 I have the honor, &c, 
 
 S. NEWTON PETTIS. 
 
 [Inclosure 1 in No. 44. — Translation.] • 
 
 Mr. Ortiz to Mr. Pettis. 
 
 La Paz, October 15, 1879. 
 Mr. Minister: The council of ministers charged with the executive power of tho 
 government has had the honor to consider your official note, which, on the 25th of Au- 
 gust, your excellency had the kindness to address this ministry, with inclosed copy of 
 a circular published by the Secretary of the United States of America, in which the 
 observance of the neutrality laws in the present war which Bolivia now sustains with 
 the Republic of Chili is recommended. 
 
 Acknowledging, your excellency, the receipt of said official note and inclosed circu- 
 lar, I have the honor to refer you to the answer which I addressed to you on the 9th 
 instant. 
 At the same time it is gratifying for me to repeatmyself, yours, very sincerely, 
 
 ^ SERAPIO REYES ORTIZ. 
 His Excellency S. Newton Pettis, 
 
 Minister Resident of the United States of America. 
 
28 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 22. 
 
 Mr. JSvarts to Mr. Adams. 
 
 No. 3.1 Department oe State, 
 
 Washington, April 19, 18S0. 
 
 Sir : I transmit herewith copy of a dispatch received from Mr. Thomas 
 A. Osborn, United States minister to Chili, relative to the proposed ex- 
 change of prisoners of war between Chili and Bolivia. You will per- 
 ceive that Mr. Osborn reports having written to the legation at La Paz 
 on the subject. I have replied to Mr. Osborn that a change has been 
 made in the incumbency of the mission, and that the person who had 
 taken charge of the archives of the legation and consulate-general had 
 not been invested by this government with any official functions; and 
 cotild not, consequently, act in a diplomatic capacity toward the further- 
 ance of the desired end. 
 
 The suggestion made in reference to the exchange of prisoners of war, 
 like all others of a broadly humane character, has the sympathies of 
 this government, and if the exercise of your good offices within their 
 proper sphere will promote such a result without disparagement to the 
 belligerent rights of any of the combatants, and especially of Peru, as 
 the ally of Bolivia and presumably equally interested with her in such 
 an arrangement, you are authorized to do what you can to promote the 
 interests of humanity in the conduct of this unhappy war. 
 I am, &c, 
 
 WM. M. EVAETS. 
 
 No. 23. 
 
 Mr. Adams to Mr. Evarts. 
 
 N:\ 3.] Legation oe the United States to Bolivia, 
 
 Lima, Peru, June 14, 1880. (Received July 29.) 
 
 Sir : I have the honor to report my arrival at this place yesterday, 
 the 13th instant. I was enabled to land at the blockaded port of Callao 
 and reach this city without detention, through the assistance of Captain 
 Brown, U. S. N., commanding the United States ship Alaska, whom by 
 good fortune I met in the harbor of Chimbote, and who kindly placed 
 his vessel at my disposal on its return trip from Chimbote to Callao. 
 On entering the latter port I called with Captain Brown upon Admiral 
 Rivera, commanding the blockading squadron of Chili on the coast, in 
 order to inform him that in a few days 1 should land at Mollendo, a 
 blockaded port further south, and request that the railway train which I 
 would take there to proceed to La Paz be not fired upon from his ships, 
 which request was granted readily and most willingly. 
 
 Captain Brown has informed me that in about a week he will be ready 
 to take me to Mollendo, and I consider it really fortunate to have met 
 him, as it would have been out of the question for me to visit Lima at 
 all and place myself in communication with Minister Christiancy, which 
 you considered advisable and of importance in your last verbal instruc- 
 tions, and which would have necessitated a land journey of several hun- 
 dred miles through a desert, for which I was not prepared. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 29 
 
 I will not endeavor to report upon events that have lately taken place 
 here, as without doubt you will be advised by those who, being on the 
 ground, have had better facilities to know. I will only state that after 
 the defeat of the allies at Tacna on the 26th ultimo, General Campero, 
 Provisional President of Bolivia, having lost half his army killed in the 
 battle, separated from the Peruvian forces and with the remnant of his 
 own soldiers took the road to Bolivia, promising, however, that he would 
 return with a larger force. On the evening before the battle, General 
 Campero had resigned the chief command of the allied forces, which had 
 fallen to him by virtue of the treaty with Peru, stipulating that if the 
 President of either republic should be with the troops he should be com- 
 mander-in-chief of the troops of both republics, and had said when sur- 
 rendering his command that on that day he ceased to be Provisional 
 President of Bolivia, as the Congress of that country; called together to 
 elect a constitutional President that day, had no doubt fulfilled its mis- 
 sion. The latest news from Bolivia, however, up to the 28th ultimo, is 
 that, while said Congress had met on the 25th for the purpose of elect- 
 ing a President, it had failed to take a vote, adjourning from day to day 
 and occupying the time with making patriotic speeches ; evidently wait- 
 ing for some news from the army. What may have happened in La 
 Paz since that date it is impossible to say, and will be unknown probably 
 for some time, but that perhaps another revolution with or without 
 bloodshed has taken place may be imagined, when the hurried departure 
 of General Campero from Tacna is considered, his own candidature 
 before the Congres for election as constitutional President, and the hesi- 
 tation of this Congress to proceed to a vote. 
 
 I am anxious to reach my post, and shall wait no longer than the 
 Alaska is obliged to remain off Callao before proceeding to La Paz, al- 
 though perhaps no time would be lost by remaining here until such time 
 as some result of the action taken by the diplomatic corps should 'be 
 apparent. 
 
 Should the action taken have any result, and possible proposals of 
 peace from Chili be not entirely rejected by the Governmentof Peru, the 
 latter could not act without also considering the status of Bolivia, and 
 in that case it may be advantageous for me to know the wishes, ideas, 
 and actions of the neutral representatives here, in order to co-operate with 
 them in Bolivia after my arrival. I should be guided, however, in some 
 measure by the opinion of "Minister Christiancy, at whose request I at- 
 tended a meeting of the diplomatic corps to-day, and who. I find, not 
 only understands the situation thoroughly, but also has considerable in- 
 fluence in the deliberations of that body. 
 I am, &c, 
 
 CHABLES ADAMS. 
 
 No. 24. 
 
 Mr. Adams to Mr. Uvarts. 
 
 No. 4.] Legation op the United States to Bolivia, 
 
 Lima, Peru, June 22, 1880. (Eeceived July 29.) 
 
 Sir : Since my last dispatch of the 14th instant, in which I had the 
 
 honor to advise you of the existing uncertainty as to political affairs in 
 
 Bolivia, advices have reached this city from La Paz to the effect that 
 
 on the 1st instant General Narciso Campero was elected constitutional 
 
30 AFFAIRS IN CHILI, PEBU, AND BOLIVIA. 
 
 President by the Congress, which had met on the 25th ultimo, after his 
 report of the defeat at Tacna had been received, and after it had become 
 known that the remains of his army were scattered and dissolved and 
 that he himself was returning to La Paz with but a few followers. 
 
 Taking into consideration the reverses sustained by President Cam- 
 pero in the field, this action of Congress foreshadows a strong govern- 
 ment for Bolivia, one that is well supported and therefore likely to 
 endure. 
 
 I have the honor also to report that the proceedings of the Bolivian 
 Congress, in its different acts and decrees passed, seem to indicate a 
 further prosecution of the war with Chili, as new levies of men are pro- 
 jected; war material is to be gathered; the revenues of the republic 
 pledged for war purposes, and any correspondence looking towards peace 
 is to be considered treason and to be punished with death. 
 • At the same time that the above news reaches us from La Paz, and with- 
 out previous intimation whatever, a message of the Dictator of Peru ad- 
 dressed to the counsel "of state is published, submitting a proctocol 
 entered into by the representatives of both Peru and Bolivia on the 11th 
 instant, looking towards the unification of the two republics into one, 
 with a full constitution for the new republic, subject, however, to a 
 plebiscite; all of which Mr. Pierola highly indorses, and advises its 
 ratification. 
 
 Minister Christiancy will forward copies of the documents relating 
 thereto, and will no doubt also report upon its merits and the proba- 
 bility of its adoption as far as Peru is concerned. Inasmuch as Boliv- 
 ian advices are entirely silent upon the subject, it is impossible to say 
 whether the people of that country, or even its present government, 
 will agree to this confederation, and I cannot intelligently report there- 
 on until I shall have reached La Paz and examined into the matter 
 thoroughly. 
 
 I am notified that the steamer Alaska has finished coaling and will 
 leave for Mollendo to-morrow, so I shall be enabled to reach La Paz by 
 the 1st proximo, where I expect President Campero to be at the same 
 time, and so be able to deliver my credentials to him in person, instead 
 of to the president of the council of ministers, the secretary-general of 
 state, or lately the first vice-president, under which different titles 
 different persons have been in power in Bolivia since the flight of 
 President Daza, and the absence from the seat of government of the 
 Provisional President, General Campero. , 
 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 jSTo. 25. 
 
 Mr. Adams to Mr. Evarts. 
 
 No. 13.] Legation of the United States, 
 
 La Paz, July 14, 1880. (Received August 25.) 
 
 Sib : Although in the political situation of Bolivia nothing startling 
 has occurred since my arrival here, I deem it proper to advise you from 
 time to time, and do so now, as the extreme quietness prevailing seems 
 to me to be only the forerunner of a violent storm, which may engulf 
 this Republic in utter ruin and end its existence. 
 
 Mr. Campero has been elected Constitutional President a month and 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 31 
 
 a half ago with the distinct understanding — he being the head of the 
 War party — to carry on the war to the very extremes, if necessary ; but 
 instead, absolutely nothing has been done to organize a new army; so 
 much so, that even the best battalion of Bolivian troops, which suffered 
 most at Tacna, fought heroically, and was the only body which kept its 
 organization after the defeat, on its arrival at La Paz was disarmed 
 and furloughed against their will, simply because the government seems 
 to be afraid of a new revolution. There are about 400 soldiers here in 
 La Paz, and I see no indication of recruiting, drafting, or even of gath- 
 ering the stragglers of the Tacna troops. Everything is at a standstill; 
 no commerce; even production of the soil neglected. The Congress is 
 still in session, but beyond proclaiming martial law in the republic, 
 they have done nothing, but are considering in secret session, from 
 day to day, the protocol of the Peru-Bolivia confederation, which, 
 should it be accepted by the Congress, will surely lead to the disintegra- 
 tion of the republic, inasmuch as the southern departments are likely 
 to join the Argentine Confederation, and one or two of the eastern de- 
 partments Brazil. 
 
 In fact, the proposed confederation with Peru created no enthusiasm 
 in Bolivia; the people, with the exception of where Peruvian, interests 
 predominate, are against it, and I should not be surprised that in the 
 near future, either the peace party or the extremists will obtain control 
 of the government, the present executive having failed to satisfy either 
 party. That the government. and the Congress understand this feeling- 
 is shown by the fact that the resignations of all the officials, especially in 
 the south, of contrary opinions have been accepted, but at the same 
 time I am informed confidentially that negotiations are now pending at 
 least between Bolivia and the Government of the Argentine Confedera- 
 tion, not only to include the latter in the alliance against Chili, but in 
 fact form a grand confederation consisting of Peru, Bolivia, and the 
 Argentine Bepublic. 
 
 If this information is correct, it is of great importance, and if it 
 should be accomplished it would change the status of the war mate- 
 rially, and at any rate would unite the different elements of Bolivia, as 
 the south would really be enthusiastic far such a confederation. 
 
 The present political troubles in Buenos Ayres are, here at least, as- 
 cribed to intrigues of Chili, to prevent any possible alliance with its 
 enemies, and should this be also understood at Buenos Ayres, the con- 
 summation of a triple alliance and confederation may be a thing of the 
 near future, especially as Peru in its present financial difficulties would 
 be very glad indeed, and it is indeed the only way out of its difficulties 
 and to retain to coast districts now occupied by Chili, which contain 
 the immense deposits of salitre and guano. 
 
 There are also rumors here that a certain party in Bolivia has made 
 arrangements with Chili to make a separate peace, whereby the coast 
 as far north as the Eiver Loa shall fall to Chili, and Bolivia acquire the 
 department of Moquequa, with the ports of Ilo and Arica, and the pros- 
 perous city of Tacna ; but although no doubt such a course would be 
 approved by many of the people here who are tired of the war, the in- 
 ternational question of bad faith towards its allies, it is to be hoped, 
 will preclude any such arrangement. 
 
 There are still some hopes expressed, especially since my arrival, that 
 our government may see fit to intervene, and all sorts of rumors, such 
 as the coast districts have been ceded to the United States in considera- 
 tion of its help, or that the district of the Amazonas is to be purchased 
 by us, gain credence amongst the people, which may be considered a 
 
32 AFFAIRS IN CHILI, PEKIT, AND BOLIVIA. 
 
 natural consequence of the course pursued by my predecessor, who seems 
 of his own account to have acted, very absurdly and has in many re- 
 gards made my own stay very uncomfortable. 
 
 In conclusion, I have the honor to advise you that Mr. Cabrera, lately 
 the Acting President of the republic, while the President was in com- 
 mand of the armies at Tacna, and himself a candidate before Congress, 
 but defeated by General Campero, has been appointed minister pleni- 
 potentiary to the United States, and that his departure may take place 
 at any time. 
 
 I am informed that Senor Cabrera is a thorough gentleman and able 
 statesman, and although his appointment by many here is considered 
 more an honorable banishment, it cannot fail to promote the good feel- 
 ing existing between the two republics, and will undoubtedly be wel- 
 comed by yourself and the President. 
 1 have, &c, 
 
 CHABLES ADAMS. 
 
 Xo. 26. 
 
 Mr. Ei-arts to Mr. Adams. 
 
 Kb. 10.] Department of State, 
 
 Washington, August 2, 1880. 
 
 Sir: With his dispatch jSTo. 148, of the 20th of May last. Mr. Osborn, 
 the United States minister at Santiago, Chili, transmitted to the De- 
 partment a copy of his letter of the 13th of that month, addressed to Mr. 
 Christiancy, the United States minister to Peru, in reference to the pros- 
 pects of peace between the contending powers on the Pacific coast, and 
 suggesting a method by which the Government of the United States 
 might make its good offices available in the way of mediation. 
 
 Upon the receipt of this dispatch an identical telegraphic instruction 
 was addressed to both Mr. Osborn and Mr. Christiancy for their imme- 
 diate guidance in the matter referred to in Mr. Osborn's letter. The 
 telegrams were dated the 29th ultimo, and read as follows : 
 
 Press upon Chilian Government onr desire to aid in restoring peace on honorable 
 terms between nations, to which we are sincerely and equally friendly. A like in- 
 struction is sent to-day to Lima. 
 
 On the 30th ultimo an instruction, embodying the telegrams ad- 
 verted to, was addressed to those gentlemen. Mr. Osborn was advised 
 that the tenor of his letter to Mr. Christiancy was approved by the De- 
 partment, and the minister to Peru was likewise informed of its action 
 in respect of Mr. Osborn's letter to him. 
 
 A copy of Mr. Osborn's dispatch above referred to is forwarded here- 
 with,* and that you may be further informed of the course pursued by 
 the Department in regard to the letter which accompanied it, the above 
 recapitulation of its action has been embodied in the present instruc- 
 tion for your complete and fall understanding in the premises. 
 I am, &c, 
 
 WM. M. EVAETS. 
 
 * For text of Mr. Osborn's dispatch, see Doc. No. 13, post, p. 25. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 33 
 
 No. 27. 
 
 Mr. Adams to Mr. LJvarts. 
 
 No. 22.] Legation of the United States,, 
 
 La Paz, August 5, 1880. (Received October 5.) 
 
 Sir : Since my last dispatch (No. 13) concerning the political situation 
 of Bolivia uothing of importance has occurred. Congress is still in ses- 
 sion, doing nothing apparently, but said to be engaged in secret sessions' 
 to deliberate upon the question of peace or further prosecution of the 
 war. 
 
 Two weeks ago the question of peace was not even discussed openly ; 
 now two of our journals here propose the necessary preliminaries look- 
 ing towards an armistice, and within a few days the two most prominent 
 members of the cabinet, Mr. Oarillo, of state and foreign affairs, and 
 Mr. Salinas, of war, have been mentioned as favoring such a policy. 
 
 Arica, the Peruvian port lately captured by the Chilians, has been 
 opened to Bolivian commerce, but such commerce has been interdicted 
 by the government at the demand of Peru, and in consequence it is now 
 rumored that Chilian troops will shortly move towards this city or Puno, 
 Peru; the latter the only place by which communication is kept open 
 between the allies. 
 
 Should this prove" true, and it is likely, as the sentiment of Chili de- 
 mands some action, either place could be occupied by a small force, and 
 then indeed all intercourse between Peru and Bolivia would necessarily 
 cease. 
 
 It is already said that the government here will abandon La Paz and 
 retire to Oruro, and private advices have been received from Tacna that 
 such movement may take place very shortly. 
 
 The war party here consoles itself with late news from Lima, stating 
 that several ironclads, with war material of all kinds, purchased in the 
 United States, have arrived, or will shortly arrive, and will change the 
 aspect of the war materially, and this slim hoj)e keeps off utter despond- 
 ency. 
 
 I rather look forward to an early invasion of Bolivia, and as La Paz 
 will naturally be the object of the enemy's attack, I shall probably have 
 my hands full in protecting property and persons in that event. 
 
 Everything, however, is uncertain, and a day may change the whole 
 aspect of affairs. 
 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 No. 28. 
 
 Mr. Adams to Mr. JEvarts. 
 
 No. 26.] Legation of the United States, 
 
 La Paz, (September 2, 1880. (Received October 12.) 
 
 Sir : 1 have the honor to transmit herewith copies of correspondence 
 had so far in relation to the mediation offered by yourself to aid in the 
 restoration of peace. 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 S. Ex. 79 3 
 
34 AFFAIBS IX CHILI, PERU, AND BOLIVIA. 
 
 [Inclosure 1 in No. 26. J 
 
 Mr. Osiorn to Mr Adams. 
 
 Legation of the United States, 
 
 Santiago, Chili, August 10, 1880. 
 
 Sik : On the 5th instant I received from Secretary Evarts a telegraphic message, 
 which reads as follows : 
 
 "Press upon Chilian Government our desire to aid in restoring peace on honorable 
 .terms between nations to which we are sincerely and equally friendly." 
 
 The Secretary informs me that a like instruction was sent to Lima. 
 
 Upon the receipt of this, I visited President Pinto and urged upon him the impor- 
 tance to all the belligerents of a peace, and endeavored to convince him of the pro- 
 priety of their availing themselves for that purpose of the friendly offers of the 
 United States. 
 
 I am just in receipt of a response, in which I am informed that mediation by the 
 United States in the form suggested by me in May last in communication to Secretary 
 Evarts and Minister Christiancy will Tbe accepted by Chili. 
 
 The form suggested, in brief, was this : To have the belligerents appoint ambassadors 
 with full power to meet at some point on their coast on board an American man-of- 
 war, there to enter upon negotiations, in the presence of, and with the advice and 
 assistance of, such ambassadors as the United States Government might designate. 
 
 I am not yet in receipt of a reply from the Department, but I cannot doubt that my 
 suggestions have been favorably considered. 
 
 It seems to me that there ought to be no objection on the part of the belligerents to 
 mediation in the form suggested, and if you shall find the Government of Bolivia ready 
 to agree thereto, I trust you will not fail to promptly advise me. 
 
 The Government at Washington is evidently anxious that some extra effort should 
 be put forth wil h a view of facilitating the restoration of peace to these unfortunate 
 countries. , 
 
 I have arranged so that your correspondence for this legation can be sent under 
 cover to the commanding general at Arica. He will forward here communications for 
 me. You will, I suppose, have little difficulty in sending letters through the lines to 
 him. 
 
 I shall write to Mr. Christiancy of this matter by the first mail. 
 
 Please let me hear from you at your earliest convenience. 
 Very respectfully, &c, 
 
 THOMAS A. OSBORN. 
 
 [Inclosure 2 in No. 26.] 
 Mr. Adams to Mi: Carrillo. 
 
 Legation of the United States, 
 
 La Paz, August 27, 18S0. 
 
 Sie: I have the honor to advise you that I have received a dispatch from the minis- 
 ter of the United States near the Government of Chili, wherein I am informed that, 
 my government having urgently "pressed its desire upon the Chilian Government to 
 aid in restoring peace on honorable terms between nations to which it is sincerely and 
 equally friendly," mediation by the United States had been accepted by President 
 Pinto in a form which I shall take great pleasure to communicate to your excel- 
 lency, if efforts of that kind are at all considered with favor by the Government of 
 Bolivia, and an invitation to a conference can be accepted. 
 
 I am also informed that the same invitation and for the same purpose has been com- 
 municated to our minister at Lima. 
 
 I improve the opportunity to renew to your excellency sentiments of my highest es- 
 teem, and have, &c. 
 
 CHARLES ADAMS. 
 
 [Inclosure 3 in No. 26 — Translation.] 
 
 Mr. Carrillo to Mr. Adams. 
 
 Ministry of Foreign Affairs, 
 
 La Paz, August 31, 1880. 
 Mr. Minister : I had the honor to receive your esteemed letter of the 27th of this 
 month, by which you are pleased to inform me that "the Government of the United 
 
AFFAIRS IN CHILJ, PERU, AND BOLIVIA. 35 
 
 States having urgently pressed its desires upon the Government of Chili to aid in re- 
 storing peace on honorable terms between nations to which it is sincerely and equally 
 friendly," mediation of the United States had been accepted by the President of Chili 
 in a form which your excellency offers to communicate me with pleasure, if efforts 
 of that nature are considered with favor by the Government of Bolivia, and if it ac- 
 cepts the invitation to a conference, which you had the kindness so generously to 
 propose. 
 
 You are also pleased to advise me that the same invitation and for the same pur- 
 pose has been communicated to the minister of the United States residing at Lima. 
 
 It gives my government great satisfaction to recognize thehigh intentions with which 
 the most excellent Government of the United States has offered its respected mediation 
 in order that the ravages of war, in which three nations of the Pacific are involved, 
 may cease. This friendly action, which manifests the noble object with which the 
 
 treat Republic of the North interests itself for peace among the republics of the 
 outh, in which the domination of force is contrary to its destinies, will always be 
 considered by my government with sincere acknowledgments of its obligation, and 
 which I may be permitted to express to your excellency as the representative of such 
 elevated sentiments of Americanism. 
 
 My government, convinced that the mediation offered by a nation of such high merit 
 for its policy, which, while so eminently just, strives to keep intact in America the 
 honorable independence of the states on the new continent, cannot be disregarded 
 without grave reasons, has authorized me to receive from your excellency the propo- 
 sitions of the suggested mediation in the form in which it has been accepted by the 
 President of Chili. 
 
 Without prejudice as to what the Government of the allied Republic of Peru may 
 have to say, I have the honor, in response to your generous invitation, to state that I 
 am willing to agree to the proposed conference at a time, which you might indicate, 
 and naming as place the office of this ministry, if convenient to your excellency. 
 
 With sentiments of the most distinguished consideration, I have, &c. 
 
 JUAN C. CARRILLO. 
 
 {Tnclosure 4 in No. 26.] 
 
 Memorandum of an interview between Mr. Carrillo, miniiter of foreign affairs of Bolivia, and 
 the minister of the United States, Mr. Adams, at La Paz, September 1, 1880. 
 
 Mr. Adams, referring to his note of the 27th ultimo, states that he is informed by Mr. 
 Osboru, the minister of the United States at Santiago, that the Government of Chili 
 has accepted the mediation of the United States in the following form : " Each of the 
 belligerents to appoint an ambassador to meet at some point on the coast, for which 
 purpose the Government of the United States will place at the disposal of the powers 
 an American man-of-war, there to deliberate upon the conditions of peace in the pres- 
 ence of, and with the advice and assistance of, such American or Americans as the 
 Government of the United States shall designate." 
 
 Mr. Carrillo asks whether any distinct basis is stipulated on which Chili has 
 agreed to these proceedings, to which Mr. Adams replies that it has not, but that the 
 object) of the conference appears to him to be to come, if possible, to an understand- 
 ing as to the basis whereupon an honorable peace can be accepted by the three coun- 
 tries. 
 
 Mr. Carrillo thereupon asks what the result of the conference would be, if, as 
 might be expected, the ambassadors cannot come to an understanding ; whether he, 
 in that case, is to understand that nothing further is to be done, or whether in that 
 case, it is proposed to leave the decision of all questions and the conditions of peace 
 to the United States. 
 
 Mr. Adams in reply regrets that Mr. Osborn's dispatch is not explicit enough to give 
 a decided answer to this question, but inasmuch as it speaks of full powers being given 
 to the respective ambassadors, and as, if the duties and powers of the Americans were 
 limited to those of simple spectators or even advisers, the conference would likely be 
 without result, and as he felt sure that the government of the United States had not 
 offered its good offices, for mediation simply as a matter of compliment, but actually 
 desired a termination of the war, it seemed to him, and he felt authorized to say, that 
 the idea is or should be, that in case the respective ambassadors of the three powers 
 cannot agree amongst themselves, they should have instructions and full powers from 
 their governments to leave the settlement of all questions and the conditions of 
 peace for arbitration, so to speak, to the Government of the .United States, to be de- 
 cided either at home or by commissioners appointed at Washington, deliberating in 
 the presence of the said ambassadors on board an American man-of-war, but that in 
 any case the decision should be final and end the war. Furthermore, Mr. Adams 
 
36 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 thought proper to say, in order to express fully the sentiments of his government, that 
 so far from being desirous of exerting a decisive influence in the settlement of these 
 troubles, it would be content if the three ambassadors on board the American man-of- 
 war could agree upon some other power, neutral in all respects, whose services as 
 arbitrator, either alone or in conjunction with the United States, might promise a 
 speedy, just, and complete settlement and peace. 
 
 Mr. Careillo, after expressing his thanks, referring in eloquent terms to the Great 
 Republic, its influence, its leadership in American, affairs, its laws and institutions, 
 its government and the character of its people, declares that he fully understands now 
 the object of the mediation, but that it would appear just to Mr. Adams if his gov- 
 ernment withheld its official acceptance until it had heard from its ally, the Govern- 
 mentof Peru ; the more so as in the near future he ought to certainly hear from the 
 Bolivian minister at Lima in regard to this matter, as he understood that the Govern- 
 ment of Peru had also been informed and invited to this conference. 
 
 Mr. Adams, while protesting that his government under no circumstances would 
 lend Its aid or good offices to any arrangement to which not all the belligerents were 
 parties, still in order to gain time and to put an end as soon as possible to the heavy 
 war expenses under which the three countries were groaning, would suggest that 
 Bolivia appoint its ambassador at once, who might proceed to Mollendo, and so being 
 in direct communication with Lima, at the same time would be on the spot and nego- 
 tiations might commence, if, as he had no doubt, Peru agreed to the proceedings. 
 
 Mr. Carrillo, while acknowledgingthe propriety of such a step, thought it proper 
 to inform Mr. Adams that if Bolivia should do so, the Government of Peru might 
 consider it an act of presumption, and as already several actions of Chili as towards 
 Bolivia had aroused a certain jealousy and feeling of mistrust iu Peru, he believed it 
 to be better to do nothing until that government could be heard from ; he would, 
 however, not fail to immediately lay the matter before the President and the cabinet, 
 and would as soon as possible inform the minister of the United States of its views. 
 
 Mr. Adams thereupon, and to conclude the interview, offered to undertake to for- 
 ward through the Chilian authorities at Arica and before C'allao any communications 
 relating to this subject which the Government of Bolivia might wish to transmit to 
 or receive from its minister at Lima, so that in that manner at least some time might 
 be saved; which offer was accepted with thanks. 
 
 [Inclosure 5 in Xo. 2G.1 
 
 Mr. Adams to Mr. Osiorn. 
 
 Legatiox of the United States, 
 
 La Pas, September 2, 1880. 
 
 Sir : In answer to your communication of the 10th ultimo, I have the honor to state 
 that the Government of Bolivia will accept the mediation and if necessary the arbi- 
 tration of the United States, provided its ally, Peru, decides to do so, but as so far it 
 has not heard from Lima in regard to thejnatter, it feels bound for the present to 
 withhold its formal acceptation. 
 
 The form as suggested by you in your dispatch and as accepted by Chili does not seem 
 to provide for the eventuality which is likely to occur, in case the ambassadors of the 
 belligerents, even with the advice and assistance of American commissioners, should 
 fail to come to an understanding, so I took the responsibility to explain to the govern- 
 ment here, that the idea is, iu case the ambassadors cannot agree, they should at least 
 have full powers to leave all questions in dispute and conditions of peace to the Gov- 
 ernment of the United States for arbitration, so to speak, either to be decided at 
 home or by commissioners here; but the decision in either case to be final. 
 
 I may be wrong in the premises, and the form as suggested by you may not intend 
 arbitration on our part, but I chose to interpret your dispatch as above, considering 
 it more in accordance with the dignity of the United States, if it interferes at all and 
 takes part in the negotiations, to have the power to make the same binding and settle 
 the matter for good. 
 
 In order to facilitate matters, I have offered to arrange the transmittal of dispatches 
 • between this government and Lima on this business through the*Chilian authorities at 
 Arica and before Callao. If, however, you should receive information that Peru accepts, 
 I would ask you to send me word at once, and immediately thereafter the Alaska, or 
 whatever vessel is designated, might go to Mollendo to receive the Bolivian ambassa- 
 dor, whom I should probably accompany to that point. 
 
 Taking it for granted that in case these negotiations come to a head you will ac- 
 company the Chilian ambassador, I promise myself the pleasure of meeting you per- 
 sonally under pleasant circumstances. Meanwhile I am, &c, 
 
 CHARLES ADAMS. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 37 
 
 T$0. 29. 
 
 Mr. Adams to Mr. Uvarts. 
 
 No. 27.] Legation of the United States, 
 
 La Paz, September 2, 1880. (Keceivecl October 22.) 
 
 Sir : Since my last report of the political situation of Bolivia, dated 
 August 5, absolutely nothing has occurred to change the aspect of 
 affairs. The Congress is still in session, but has done nothing to help 
 the country in its present weakness except to legalize what is called a 
 forced loan of $500,000, which will be exacted mostly from the foreign 
 merchants. Some attempts have been made to organize a national 
 guard for home protection should the Chilians take it into their heads 
 to visit La Paz, and every Sunday we have the spectacle of seeing a, 
 great number of men of all classes assemble in the plaza and march 
 around the same two or three times with martial music, but as the 
 country has not a single rifle to arm those men, and as there is no pos- 
 sibility whatever of the government being able to make or purchase any, 
 the whole proceeding is calculated to expose the very weakness of Bo- 
 livia, although still some of the papers shout for war, getting bolder in 
 their utterances, because Chili seems to rest on its laurels at Tacna and 
 Arica. That any soldiers have been or are being raised to oppose the 
 Chilian army in its next onward march, I have not heard of; and, unless 
 Peru sends the arms, tbe latter will have to fight the next battles alone. 
 
 The cherished plan of Dictator Pierola to organize and become su- 
 preme ruler of the United States of Peru; Bolivia seems to have been 
 entirely lost sight of, as the Congress here seems to be afraid to touch 
 the subject, it having voted to postpone tbe consideration of the same 
 until a great many other matters are disposed of, and the late action of 
 the charge" d'affaires of Peru in forbidding or protesting against grant- 
 ing a concession to Mr. Brabo and company, organized to open com- 
 munications towards the Atlantic, basiug his protest on one of the arti- 
 cles of the proposed confederation, has opened the eyes of a good many 
 people as to the evident intention of Peru not to allow Bolivia to ex- 
 tend its commerce or make use of the immense natural advantages it 
 possesses, except by paying tribute to Peru at its ports on the Pacific, 
 and the bitter feeling expressed seems to show that even should this 
 confederation as a war measure be accomplished it will be but of short 
 duration on account of the evident desire of Peru to make the natural 
 resources of Bolivia contribute to its own wealth. 
 
 If in addition to this the ambition of the ruler of Peru should frus- 
 trate the attempts now made for the establishment of x>eace, which the 
 people here and also the government, I believe, are very anxious indeed 
 to have brought about, then indeed the grand idea of confederation 
 will but remain a still-born infant, and instead a decided rupture may 
 be the result. 
 
 Peace indeed is the great necessity for this country, although directly 
 it has suffered comparatively little; and I can only express the hope that 
 the mediation of our government may bring it about, no matter how the 
 jealousies of other powers may be provoked thereby. 
 I have, &c, 
 
 CHARLES ADAMS. 
 
38 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 No. 30. 
 
 Mr. Adams to Mr. Evarts. 
 
 No. 28.] Legation op the United States, 
 
 La Paz, September 4, 1880. (Eeceived October 22.) 
 
 Sie : On the 2d instant I had an opportunity to forward my mail by 
 a special messenger to the coast, and in my dispatch of that date (No. 
 26) I had the honor to transmit to you copies of correspondence and a 
 memorandum of a conference held with Mr. Oarrillo the day before, re- 
 lating to the mediation between the belligerents proposed by yourself 
 through Mr. Osborn, by which it appeared that the government of Bo- 
 livia was not likely to refuse the same, provided that Peru agreed 
 thereto; but I was not able to forward the formal answer to the propo- 
 sition, which I received only last night, it having been delayed because 
 of a serious indisposition of President Campero, the cabinet meeting 
 had been postponed. 
 
 I now have the honor to transmit a copy of the official answer in Span- 
 ish, and also a literal translation made by myself, from which you will 
 perceive that Bolivia unreservedly accepts the mediation, and is not 
 only willing, but anxious, in case the ambassadors do not agree, to leave 
 the whole matter to our government for arbitration, only stipulating 
 that its sovereignty and independence be acknowledged as the basis of 
 proceedings. 
 
 I considered it proper in my note of acknowledgment — a copy of 
 which is also inclosed — to add a few words, which I hope will meet your 
 approval. 
 
 I have, &c, 
 
 CHAELES ADAMS. 
 
 [Inclosure 1 in No. 28. — Translation.] 
 
 Mr. Carrillo to Mr. Adams. 
 
 No. 9. Confidential.] Ministry op Foreign Affairs, 
 
 La Paz, September 3, 1880. 
 
 Mr. Minister : In accordance with what I had the honor to declare to your excel- 
 lency in the interview of the first instant, and repeating the acknowledgment which 
 is due to the most excellent Government of the United States for the initiative it has 
 taken by proposing its aid towards an honorable settlement of the present war of the 
 Pacific, it gives me satisfaction to advise your excellency that, in conformity with 
 the treaty of alliance which binds this republic to that of Peru, I have this day ad- 
 dressed to the cabinet at Lima a note, in which I make known that, on my part, I 
 consider the proposed mediation by the most excellent Government of the United 
 States in accordance with the great interests of America and modern civilization, 
 and that I hope, in order to accept the same definitely, to be advised officially of the 
 consent which the allied government may have given' to a like invitation extended to 
 it, inasmuch as this concurrence is indispensable to the good faith with which Bolivia 
 guards its engagements. 
 
 As soon as I shall be advised officially of its acceptance by the Government of Peru, 
 Bolivia will, without delay, send its plenipotentiary to join those of the allied nation 
 and Chili, and to take part in the conferences and deliberations which are to be held 
 on board a North American vessel, in order to terminate the present complications of 
 the war. 
 
 The Government of the United States having resolved to point the way so signifi- 
 cantly by its proposition to bring about a settlement equally honorable and accepta- 
 ble to the belligerent republics, the Government of Bolivia understands that arbitra- 
 tion is to be the essential basis of the offered mediation, for the reason that it is not 
 probable that the plenipotentiaries named will be able to settle the grave differences 
 which exist between the states which they directly represent. 
 
 "With that idea, and feeling that it is the decided object of the Government of the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 39 
 
 United States to aid seriously and in an honorable manner in the re-establishment of 
 peace, as your excellency was kind enough to declare in the interview referred to, my 
 government reposes the utmost confidence in the mediation as well because thereby 
 it consigns the justice of its actions to the decision of a powerful nation, as because 
 it introduces arbitration as an essential condition which, while maintaining towards 
 the contending parties an equally dignified attitude, guards their sentiments of 
 national honor and offers the only certain solution — one which is in accordance with 
 the principles of justice. 
 
 My government, interpreting faithfully the national sentiment, can assure your ex- 
 cellency that, as much as Bolivia is resolved at any sacrifice to sustain in the present 
 war its rights of sovereignty and independence against the impositions of- force, 
 which are contrary to South American politics, it is also ready to accept, without re- 
 serve, any means which, while preserving its honor, may tend to re-establish peace ; 
 and, believing that this will be the result of the proposed mediation, 'my government 
 will also accept with pleasure that the most excellent Government of the United 
 States may be the judge-arbitrator to decide all questions relating to the present 
 struggle .of the Pacific which it should be impossible for the plenipotentiaries of the 
 belligerent powers to regulate and settle. 
 
 While deolaring in this open and frank manner the resolution of my government in 
 cordial response to the mediation offered by the most excellent Government of the 
 United States, I have, &c, 
 
 JUAN C. CARRILLO. 
 
 LInclosure 3 in No. 28.1 
 Mr. Adams to Mr. Carrillo. 
 
 Legation of the United States, 
 
 La Paz, September 4, 1880. 
 Sir : I have the honor to acknowledge the receipt of the note, dated yesterday, 
 which your excellency had the kindness to transmit to me, and in which you declare 
 in such eloquent language that the Government of Bolivia is prepared to accept the 
 mediation and, if neeessary, the arbitration of the Government of the United States, 
 as proposed, if the allied Government of Peru should also agree thereto. 
 
 I shall not fail to acquaint my government with the sentiments so creditable and 
 honorable to yourself and your government, and can only express the hope that that 
 of Peru, animated by the same enlightened views, may aiso consent to this manner of 
 ending a cruel, unnatural, and fratricidal war. 
 
 If, unfortunately, after all, this attempt should prove ineffectual, I can at least 
 bear witness that Bolivia was ready to stop the further effusion of blood, and the 
 blame must rest where it belongs. 
 I am, &c, 
 
 CHARLES ADAMS. 
 
 No. 31. 
 
 Mr. Adams to Mr. Evarts. 
 
 No. 29.] Legation of the United States, 
 
 La Paz, September 14, 1880. (Received November 4.) 
 Sir: Having received from Mr. Christiancy a dispatch, dated the 7th, 
 from Arica, in regard to the proposed mediation in the interest of peace, 
 I, without delay, called upon Mr. Carrillo, tbe minister of foreign affairs, 
 at his office, and have now the pleasure to transmit a memorandum of 
 our interview, which, as far as Bolivia is concerned, certainly demon- 
 strates that the efforts of our government are fully appreciated. 
 
 I also have the honor to inclose a copy of Mr. Christiancy's dispatch, 
 and my reply. 
 
 I am, &c, 
 
 CHAELES ADAMS, 
 
40 AFFAIRS IN CHILI, PEEU, AMD BOLIVIA. 
 
 [iBclosure 1 in No. 29. ] 
 
 Mr. Christiancy to Mr. Adams. 
 
 On Board U. S. Steamer Wachusett, 
 On the u-ayfrom Valparaiso to Arica, September Z, 1£80. 
 
 Sir : As I had not heard from Mr. Osborn, our minister at Santiago, for some time, 
 and felt quite confident that the Peruvian Government was ready to enterupon nego- 
 tiations for peace, with the friendly mediation of the United States, I left Lima on 
 the 15th of August, and reached Santiago August 27th, where I immediately learned 
 from Mr. Osborn that the ministers of England, France, and Italy, at Santiago, acting 
 in concert with the ministers of the same governments at Lima, had urged the Chilian 
 Government to offer peace to Peru, on condition of ceding to Chili absolutely the pro v- 
 ince of Tarapaca", and that the Chilian Government was) waiting an answer from the 
 ministers of France, England, and Italy in Lima to their colleagues in Santiago, indi- 
 cating whether Peru would accept such condition of peace. 
 
 Should Pern thus accept there would be no special object for mediation by the 
 "United States ; but the Chilian Government accepted unconditionally the friendly 
 mediation of the United States, and if the representatives of England, France, and 
 Italy do not succeed in getting Peru to accept peace on the terms they have proposed, 
 and that they (said representatives) can guarantee snch acceptance, then I am satis- 
 fied it is the wish of the Chilian Government, as 1 know it to be of our own, that the 
 United States should offer their friendly mediation, provided both Peru and Bolivia 
 accept the same, and I feel confident that Peru will gladly accept such mediation as 
 soon as I can see' the Dictator Pi^rola. In fact I should have consulted him before 
 leaving Lima, had I known the position of the Chilian Government. 
 
 Mr. Osborn informs me that he wrote you some two weeks ago of the disposition of 
 the Chilian Government, and their willingness to accept our mediation, and that in 
 the event of Bolivia and Pern accepting such mediation, you and Mr. Osborn and 
 myself should come to Arica upon a naval vessel of the United States and meet there 
 the ambassadors of the three belligerent powers, and that we should there aid, in a 
 friendly manner, to -secure peace. As Mr. Osborn's letter was forwarded to you by 
 courier from Arica, he thinks your answer must be in Arica before now, and perhaps 
 may have been sent on to him by mail steamer ; but I am to inquire when I get to 
 Arica, and if your letter to him is there I am to open and read it, and see that it is for- 
 waTded to him. 
 
 It is very important that Mr. Osborn and myself should know as soon as possible 
 whether Bolivia accepts the mediation of the United 8tates. She may not be willing 
 to accept without knowing that Peru will do the same. In such case, in order to 
 save time, let the Government of Bolivia accept on condition that Peru shall do so. 
 
 I take it for granted and have full confidence that both Bolivia and Peru will accept 
 the mediation, and just as soon as this can be ascertained I am to fix the day of meet- 
 ing at Arica, which Mr. Osborn and myself think can bo brought about by the 5th of 
 October, and we therefore think it best that you should come down to Arica by that 
 time, and that an ambassador from Bolivia should come with you. Please write Mr. 
 Osborn and myself fully, under cover to the general commanding at Arica, who will 
 forward to me and to Mr. Osborn unopened. And as there is a line of telegraph from 
 Arica to Santiago, please write a dispatch to Mr. Osborn inclosed in a letter addressed 
 to the general commanding at Arica, asking him to forward the dispatch. The dis- 
 patch should say only (if Bolivia accepts mediation), " Bolivia accepts." If she does 
 not accept, please say in the dispatch only "Bolivia refuses." 
 
 Yon will readily understand that, if all the belligerents accept the mediation of the 
 United States, the opening of the negotiations will not depend upon any condition 
 such as that proposed by the ministers of England, France, and Italy; but that the 
 field is open to any terms which, under our friendly mediation, all the parties may bo 
 ■willing to accept. 
 
 I will further say that should you and any ambassador come down to Arica, the 
 general commanding there is instructed to treat you and such ambassador with all 
 kindness and attention. He is also ordered in the mean time to aid in any way he 
 can to facilitate communication between yourself and Mr. Osborn and me. I shall 
 call to see him at Arica and deliver him a letter from his government, and I may pos- 
 sibly drop you a short letter from there in addition to the present. 
 
 I send you inclosed a copy of the mode agreed upon between Mr. Osborn and myself 
 for telegraphing, &c, which you can also adopt. 
 
 I have strong hopes that in some one of the ways now under consideration peace 
 will be restored. 
 
 I am, very truly, your friend, 
 
 I. P. CHRISTIANCY* 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 41 
 
 [Inoloeure 2 in No. 29.] 
 
 Memorandum of a conference held at La Paz September 13, 1880, between Mr. Carrillo, the 
 minister of foreign affairs of Bolivia, and Mr. Adams, the minister resident of the United' 
 States, 
 
 Mr. Adams opens the interview by stating that on the same morning he has re- 
 ceived from Mr. Chriatiancy, the minister of the United States at Lima, a dispatch, 
 dated Arica, September 7, in relation to the proposed mediation of the United States, 
 and inquires whether anything relating to the same subject has been received from 
 .Lima by the Bolivian (iovernment. 
 
 Mr. Cariullo states that he has been anxious for this interview, inasmuch as he has- 
 dispatches from Mr. Terrazas, the Bolivian minister at Lima, up to August 27, iu 
 which no mention is made of the proposed mediation of the United States, although he 
 had been led to suppose that by that da'te certainly the Government of Peru should 
 have been consulted thereon, as it was the same date on which he had been first ad- 
 dressed upon the subject. He continues to state that, however, the three powers, En- 
 gland, France, and Italy, on August 17, had made offers of mediation to Peru, and that 
 the same had been considered favorably upon the condition that Bolivia accept the 
 same; that, however, his government had decided to answer in the negative, because, 
 first, it had already accepted a like mediation offered by the United States, and, sec- 
 ondly, because it preferred mediation by the United States — that power being not only 
 American and Republican, but also connected with the South American States by 
 other ties and relations than those simply of commerce. 
 
 Mr. Adams explains that Mr. Christiancy had left Lima for Santiago on August 15, 
 and that not until he reached there had he heard of the proposed mediation of the 
 three powers at the same time with that made by Minister Osborn on behalf of the 
 United States ; that, however, from the tone of his dispatch, Mr. Adams concludes that 
 he, probably, before his departure to Chili, has had an interview with Mr. PiCrola, of a 
 personal nature, in regarcl to this matter, from which it may be assumed that there 
 will be no objection on the part of Peru to accede to the proposed conference ; so 
 much so that Mr. Christiancy and Mr. Osborn have already fixed upon the 5th day of 
 October as the date of the conference of Arica, and have requested that the Bolivian 
 ambassador and himself (Mr. Adams) meet them there on that date. As to the pro- 
 posed mediation of the three European powers, Mr. Adams understands that it has 
 been accepted by Chili, based upon the condition that Peru cede the province of 
 Tarapacit; while that of the United States has been accepted unconditionally, which, 
 leaving open all questions, seemed to him therefore of a nature more acceptable to- 
 the allies; and if, as he understood now, Mr. PhSrola had not objected definitely to 
 the former, he could not but believe that he would accept the latter ; aud so, inasmuch 
 as by the refusal of Bolivia the former must end, it seemed to him that now the ac- 
 ceptance of Peru might be considered certain, and that therefore nothing remained 
 in the way to make preparations for the proposed conference on the 5th proximo, 
 which he (Mr. Adams), at the invitation of his colleagues, should be happy to attend. 
 
 Mr. Carrillo states that he has no information of the condition attached to the pro- 
 posal of the powers ; in fact, no mention of any had been made by its representatives 
 when offering their good offices ; but, however that may be, this had been disposed of, 
 and he could only repeat that his government would willingly leave the whole matter 
 to the United States, and in that sense, with the further information now given, and 
 regretting the absence from Lima of Mr. Christiancy, by which the expected answer 
 from the Government of Peru had been delayed, he would make the necessary prepara- 
 tions for the proposed conference, but hoped still to receive afinal dispatehfrom Lima 
 before the actual departure of the Bolivian ambassador. 
 
 Mention being made by Mr. Carrillo of the reported bombardment of Callao by the 
 Chilians, which Mr. Adams thought improbable iu view of the proposed negotiations, 
 and the probability being discussed of hearing from Lima, the interview thereupon 
 terminated. 
 
 flnclosure 3 in No. 29.] 
 
 Mr. Adams to Mr. Christiancy. 
 
 Legation of the United States, 
 
 La Paz, Sejitember 14, 1880. 
 
 My Dear Sir: I received your dispatch, dated on board theWachnsett the 3d, with 
 inclosures from Arica under date of the 7th instant, yesterday, and lost no time to 
 have a conference in regard to it with the minister of foreign affairs. Of course be- 
 fore you receive this you will have my former letter advising you that Bolivia accepts. 
 
42 
 
 AFFAIRS IN CHILI,. PERU, AND BOLIVIA. 
 
 and only waits the acceptance of Peru before it sends its plenipotentiary to the con- 
 ference. 
 
 The situation is not materially changed, although your absence from Lima has de- 
 layed the consummation of the proposed mediation by the United States, while that 
 made by the three powers had been transmitted here from Lima for approval, but 
 was promptly rejected because that of the United States is preferred and had already 
 been accepted. 
 
 So, concluding from the tone of your dispatch that you are certain of Mr. Pierola's 
 acceptance, I have in that sense 'prevailed upon the government here to make its 
 preparations for the conference on the 5th proximo, as suggested, although we still 
 hope to have the official note of acceptance from Lima before we start upon the jour- 
 ney, which at best must be one of hardship and privation. 
 
 I would much prefer and shall probably after all come via Peru and Mollendo, and 
 as the distance from Arica to that place is not considerable by sea, if on your arrival 
 at Arica you find that I have concluded to go by Mollendo, it cannot make much differ- 
 ence for the vessel to call there. 
 
 I shall, therefore, if I do not go overland, send a letter in care of the commanding 
 officer at Arica, which will inform you of my movements, which I cannot do at pres- 
 ent, as the Bolivian ambassador has not yet been named, and as I intend to defer in 
 a measure to him, whoever he may be. 
 
 I shall send a dispatch (telegram) to Mr. Osborn by this messenger, as suggested by 
 you. 
 
 Hoping that the Peruvian government will agree and that no fiasco may reward 
 our pains, by which besides the renown of our government might be compromised, 
 I am, Ac. 
 
 CHARLES ADAMS. 
 
 No. 32. 
 
 Mr. Adams to Mr. JEvarts. 
 
 No. 32.] Legation of the United States, 
 
 La Paz, October 4, 1880. (Eeceived December 6.) 
 
 Sir: Instead of being able to advise you that actual negotiations in 
 the interest of peace have commenced, I am sorry to be obbged to re- 
 port that a further correspondence has taken place, from which it will 
 be perceived that the proposed conference must be deferred. 
 
 Mr. Garrillo's lengthy note reached me on the evening of the 1st, when 
 it had been arranged that in order to be present at Arica on the 5th 
 we must be en route early in the morning of the 2d; and at the same 
 time I was informed by the secretary of the ambassador that, so far as 
 the latter was concerned, he had received instructions to delay his de- 
 parture, although it was expected by the government that I would go 
 to confer with my colleagues. 
 
 As Mr. Carrillo's note does not exactly withdraw its former acceptauce, 
 but nevertheless intimates that under the circumstances Bolivia is not 
 bound to adhere to it, and as I did not care to place myself in the same 
 position as my predecessor did, earning by his anxiety so little glory 
 and so much ridicule for his pains, I immediately decided not to go, and 
 after due deliberation wrote my answer, some of the sentiments of which 
 may not be pleasing, but are based upon truth and my best judgment. 
 
 I consider this letter of Senor Carrillo not at all as an expression of a 
 desire to withdraw Bolivia's acceptance of the mediation, for everybody 
 is anxious enough to have peace established, but as a means of gratify- 
 ing the national pride and public clamor, and I am borne out in this 
 Opinion, as this letter is published ia last night's newspaper, and is well 
 adapted, by its grand phrases and little meaning, to quiet the public 
 excitement, which a few days ago, only for the prompt interference of 
 President Campero in ordering many arrests, had nearly resulted in a 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 43 
 
 revolution in favor of the peace party, and it also serves as an answer to 
 the recent debate in Congress, where an interpellation in regard to this 
 mediation was vigorously discussed. I, however, considered a little 
 truth advisable at this point, and hope that my note — by which I meant 
 to convey the idea that while our government is ready to act as medi- 
 ator in the interest of peace, after the plenipotentiaries of the three 
 powers have met, it does not intend to become a carrier of messages and 
 investigator of grievances between the governments before such meet- 
 ing — will meet your approval. 
 
 The cause of all this seems to be the destruction of a sugar plantation 
 in Northern Peru owned by a very rich firm in Lima, the members of 
 which have been very active supporters of Dictator Pi6rola, and fur- 
 nished large sums for the prosecution of the war, which, however, was 
 not ordered until after a war contribution of $100,000 — the property de- 
 stroyed is said to be worth four millions — had, by order of Dictator 
 Pierola, been refused. 
 
 Of course Mr. Christiancy will know the particulars better and report 
 accordingly, when yon can judge whether this was a breach of the laws 
 of war, and whether Chili is responsible for having violated its pledged 
 word towards the United States, by first accepting its mediation and 
 then fitting out expeditions of this kind, as Bolivia, and no doubt also 
 . Peru, seems to assume. 
 
 I expect to hear shortly from Mr. Christiancy, and should not Peru 
 decidedly decline further negotiations, I have no doubt that Senor Car- 
 rillo will be glad to carry out his arrangements in accordance with his 
 former views and agreement. 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 [Tncloaure 2 in No. 32 — Translation.] 
 Mr. Carrillo to Mr. Adams. 
 
 No. 11.] Ministry of Foreign Affairs, 
 
 La Paz, October 1, 1880. 
 
 Sir: The last deeds of devastation committed in Northern Peru by Chilian forces 
 against private property, disgraceful and of the most odious character as they are, 
 have attracted the consideration of my government, not only because they are an 
 outrage to civilization and the law of nations, which limits the damages of war to 
 snch as are strictly necessary (o secure the results of military operations, but also be- 
 cause these acts tend to compromise the official word of one of the belligerent powers 
 pledged to a friendly nation, which, for the sake of peace and American interests, had 
 taken upon itself the noble effort to make its offered mediation effeetive. 
 
 My government, in mentioning these deeds, pronounces them contrary to the usages 
 of war; especially those lately committed on the property of Seiior Don Dionisio Derte- 
 ano, when the hostile army, instead of turning its arms against the allied forces and those 
 in the neighborhood of Lima, employed them to destroy the rich establishments and 
 warehouses of a defenseless citizen. My government is convinced that the opinion of 
 the other American States will also condemn these acts as contrary to the universal 
 law of nations, as well as the traditional law of America, which has not permitted 
 wars of devastation. 
 
 My government, knowing that the hostile operations of Chili from the beginning 
 had not been moderate either in the respect due to the law of nations nor in the object 
 which served as cause of the war, resolved, in accord with its ally, to maintain at any 
 sacrifice the common national independence and South American interests, alike ex- 
 posed with those of Bolivia and Peru, against the unjust domination of force. 
 
 While such preparations for a great struggle were being made, the end of which 
 could not hut be favorable to the just cause and the combined strength of the allied 
 powers, your excellency was kind enough to bring to the knowledge of my govern- 
 ment, in your respected note of the 27th August last, that the President of the 
 
44 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Republic of Chili had accepted the mediation offered by the most excellent Govern- 
 ment of the United States in the capital of Santiago. With such antecedent, and the 
 noble desire to contribute to the restoration of peace so long interrupted, your excel- 
 lency offered like mediation to this republic on bases which, being honorable to the 
 belligerent States, could not be rejected by my government. In that sense, and after 
 the conference of the 1st September, it was frankly accepted by the note from this 
 ministry of the 3d, same month, with declarations which, while they defend the dig- 
 nity of the republic and the engagements with the allied nation, demonstrate the 
 high respect which my government places iu the means of conciliation which acknowl- 
 edge international law, as well as the faith which the official word of the Government 
 of Chili should inspire when, listening to the counsel of reason, it had accepted the 
 mediation proposed by a friendly nation. 
 
 A short time since the same mediation was confirmed in Santiago by his excellency 
 Mr. I. P. Christiancy, plenipotentiary of the United States near the Government of 
 Lima, and offered to the allied Government of Peru, was accepted with the defeience 
 due the most excellent government of your excellency. 
 
 After the friendly intervention of the most excellent Government of the United 
 States had been so formally accepted, during the middle of August, and while in accord- 
 ance with its acceptance by the allied powers the preliminary preparations for the 
 first conference were being made, on the 10th of September and with extreme violence 
 those deeds of devastation occurred which have been mentioned at the beginning of 
 this note. 
 
 While such conciliatory measures were going an with the aid of a friendly nation 
 it is difficult enough to harmonize the authorized expression of such peaceful proceed- 
 ings with the outrageous hostilities committed on defenseless citizens and with the 
 burning and destroying of private property far from the center of military operations. 
 
 My government believes it to be its duty to call the attention of your excellency to 
 these deeds and the grave contradiction which they imply. It is still possible that 
 they are unauthorized and reprehended by the Government of Chili ; but in any case 
 they will, on account of the atrocity and the time when they took place, merit your ex- 
 cellency's impartial and just consideration, iuasmuch as you, while faithfully repre- 
 senting the intentions of your government, take such marked interest towards an hon- 
 orable and dignified settlement of the present struggle on the Pacific. 
 
 Having mentioned the grave incidents as they occurred, the consideration of which 
 and the bearing they may have upon the proposed mediation my goverement leaves 
 to the discernment of vour excellency, I have, &c, 
 
 JUAN C. CARRILLO. 
 
 [Incisure 3 in ~$o. 32. J 
 
 Mr. Adams to Mr. Carrillo. 
 
 Legation of the United States. 
 
 La Paz, October 2, 1880. 
 
 Sir: I have the honor to acknowedge the receipt of your note of yesterday, in 
 which you take occasion to protest against the late operations of a Chilian force in the 
 northern part of Pern, not only because they are an outrage to civilization and a vio- 
 lation of the law of nations, but also because these actions, if authorized by the 
 Government of Chili, appear to be in direct violation of its national honor and its 
 pledged word when it had accepted the mediation offered by the Government of the 
 United States as a-basis of peace. 
 
 Not knowing at this time the causes which led to the unnecessary and cruel destruc- 
 tion of private property, I cannot but reserve my opinion, but shall not fail to bring 
 to the knowledge of my government the contents of your note, and I beg to assure your 
 excellency that the Government of the United States, should it become convinced 
 that its offered mediation had been accepted by Chili for ulterior motives, or not in 
 good faith as the offer itself deserved, will not fail to maintain that dignity which it 
 has always upheld with honor amongst the nations of the earth. 
 
 What I most deplore is that by these events the proposed conference on the 5th 
 instant seems to be delayed or suspended, if not entirely abandoned. 
 
 I have always been of the opinion that if representatives of the three nations could 
 be brought together and in the presence of a friendly power could discuss their griev- 
 ances, justice and reason would take the place of pride and force, and all difficulties 
 might be arranged and peace established. 
 
 I think so still ; I believe the first meeting to be the most difficult to be arranged, but 
 also the most important step towards peace, and I cannot conceive why the 'late 
 actions of a small detached hostile force, as disgraceful as the conduct may be, should 
 prove a serious obstacle in the way of the proposed negotiations, and so be actually 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 45 
 
 the means of leading to further vandalism of that kind. A destruction of property — 
 I have not heard of loss of life or other outrages — can be made good by a money consid- 
 eration, and as in the proposed negotiations the subject of reclamations will undoubt- 
 edly have to be considered in one way or another, this wanton destruction of property 
 would only form one of the many grievances which the allies can justly bring against 
 the Government of Chili. 
 
 Taking that view of the case, I had made my arrangements to leave for the coast 
 via Arequipa this morning, but being informed last night that the plenipotentiary of 
 Bolivia would not be prepared to go, it became necessary for me to change my plans; 
 for of course any conference in which the Government of Bolivia is unrepresented 
 cannot but be unproductive of results. 
 
 Deploring, >is I do, this delay, I have still hopes that the proposed conference may 
 take place, and I shall not fail to advise your excellency should I receive any further 
 information from my colleagues at Lima and Santiago. 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 No. 33. 
 
 Mr. Adams to Mr. Evarts. 
 
 No. 34.] Legation of the United States. 
 
 La Pas, October 7, 1880. (Received November 16.) 
 
 Sin : Referring to my dispatch No. 32, of the 4th instant, and especially 
 to inclosure 3 thereof — my note to Senor Carrilto of the 2d instant — I 
 have to advise you that I was honored yesterday by a visit on the part 
 of Senor Carrillo, who called my attention to the word "protest" in the 
 first part of my note, and begged to explain that his note of the 1st, to 
 which mine of the 2d was a reply, was not intended to be a juotest in 
 that sense, inasmuch as the circumstances of the affair on the Peruvian 
 coast might be liable to an explanation, and an official protest should be 
 reserved to the last. 
 
 The minister also explained that the reason for not attending the con- 
 ference at Arica^ fixed for the 5th, on the part of Peru, was the excited 
 feeling of the people in Lima, brought about by the acts of the Chilians 
 near Chimbote, but that at the particular desire of Mr. Christiancy the 
 question had been left open so as to arrange the conference for a future 
 date, and that accordingly Bolivia, regretting the delay, had also been 
 obliged to postpone sending its ambassador, but that it not only stood 
 ready to do so at any time, but would use its influence with the cabinet 
 at Lima to bring the matter to the desired issue without further delay ; 
 and Mr. Carrillo also regretted not having advised me of this before last 
 Saturday, as by so doing that part of my note, in which I had implied a 
 want of compliance with former arrangements, namely, the departure of 
 Bolivia's ambassador on the 2d, might have been obviated. 
 
 After these explanations, and at Senor Carrillo's urgent request, I had 
 no hesitation to modify my note by changing the word "protest" in the 
 first part, and leaving out entirely in the latter part the paragraph re- 
 lating to my expressed disappointment and expected departure on the 2d, 
 all of wbich confirms my surmises that Senor Carrillo's note was intended 
 more for the public eye at home than as an explanation for myself and 
 my government. 
 
 The publication of this note has had, however, that effect, that the 
 newspapers here in leading editorials have spoken favorably of the efforts 
 of our government, commended the steps so far taken, and, while elab- 
 orating on the subject of "Monroe doctrine," are earnestly advocating 
 
46 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 the policy of leaving forever afterwards all questions and grievances to 
 the arbitration of its strong northern neighbor. 
 
 Should, with our help, peace be established, the bearing this will have 
 on our future relations and our commerce can hardly be estimated. The 
 resources and wealth of the country are immense, and it needs only a 
 guiding hand in its politics, some American enterprise, capital, and 
 immigration, to make it one of the richest and most prosperous countries 
 in the world. 
 
 I have, &c, 
 
 CHAELES ADAMS. 
 
 No./ 34. 
 Mr. Adams to Mr. Hvarts. 
 
 No. 35. j Legation of the United States, 
 
 La Paz, October 8, 1880. (Received December 17.) 
 -Sir : I have the honor to advise you that, having received late last 
 night the inclosed telegram, and after a consultation with the Govern- 
 ment of Bolivia, I shall leave my post, accompanied by plenipotentiaries 
 from this republic, temporarily to-morrow morning, in order to attend 
 the conferences between the belligerents in the interest of peace. 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 [Inclosure to No. 35. ] 
 
 f Telegram— translation .] 
 
 (From Mollendo, 11.07 p. m.) 
 Mr. Charles Adams, 
 
 Minister of the United States, La Paz : * 
 
 We start to-day to Arica; come to Mollendo and go aboard the Peruvian steamer 
 Chalaco, where you will meet the Peruvian ambassadors. 
 
 I. P. CHRISTIANCY.. 
 October 5, 1880. 
 
 No. 35. 
 Mr. Adams to Mr. Hvarts. 
 
 No. 36.] Legation of the United States to Bolivia, 
 
 U. S. S. Lackawanna, Bay of Arica, 
 October 23, 1880. (Received December 6.) 
 
 Sir : I have the honor to report that yesterday, on the 22d, the first 
 conference of the plenipotentiaries of the belligerent nations Chili, Peru, 
 and Bolivia, took place on board this vessel, and that, jointly with Messrs. 
 Osborn and Christiancy, I took part in the proceedings. 
 
 Inasmuch as we have concluded to act jointly and from that date sub- 
 mit a joint report of our actions, I propose to limit this dispatch to my 
 personal movements and actions up to the same date from the day of 
 leaving La Paz. 
 
 On the 7th instant, late in the evening, I received a dispatch from 
 Mr. Christiancy, dated at Mollendo, the 5th, notifying me that the Peru- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 47 
 
 vian ambassadors were then at that point, and asking me to come with- 
 out delay. 
 
 Conferring with Mr. Carrillo, minister of foreign affairs, the next day, 
 I was informed that his government had also received dispatches in the 
 same tenor, and that it was prepared to send its plenipotentiaries at 
 once, and we fixed upon the next morning as the time for our departure. 
 Accordingly, on the 9th instant, I left La Paz with Messrs. Marino Bap- 
 tista, president of the Bolivian Congress, and Senor Juan C. Carrillo, 
 minister of foreign affairs, being the plenipotentiaries on the part of Bo- 
 livia, and Senor F. Avelino Aramayo, being their secretary. 
 
 A special steamboat across Lake Titicaca and extra train from Puno 
 to Mollendo was placed at our disposal by the Peruvian authorities, and 
 we reached Mollendo on the 12th, in the evening. 
 
 At our arrival at this port, I found that the United States steamer 
 Lackawanna had arrived there from Arica on the same day, and I im- 
 mediately went aboard to confer with Mr. Christiancy. 
 
 Then for the first time I was informed of the existing difficulty as to 
 the place where the conferences were to be held. Mr. Osborn having 
 fixed Arica, Chili had refused to go to any other place, and Peru as 
 decidedly had refused to allow its representatives to go to that point, 
 considering it humiliating to meet the Chilians in a Peruvianport occu- 
 pied by the enemy, besides other reasons. 
 
 I learned that Mr. Christiancy had just returned from Arica bringing 
 the positive information that Chili would not agree to a change, and 
 that unless the Peruvians were prepared to go there he would leave the 
 next day and all our efforts might be considered in vain and the nego- 
 tiations broken off. The next day we went together on board the Peru- 
 vian vessel, and after a long conference it was manifested to us that 
 the instructions from their government forbade the Peruvian ambassa- 
 dors to comply with the demand of the Chilians to go to Arica, and Mr. 
 Christiancy left the vessel, insisting upon his determination to leave that 
 afternoon. 
 
 At that crisis, when all negotiations seemed to be at an end before 
 they had really commenced, I suggested to the Peruvians that I thought 
 some consideration was due to the Bolivians, who had come in good 
 faith, and who, before being obliged to return infecta re, should at least 
 be notified of the dispute, and their opinion be heard. 
 
 After this point was conceded, and the Bolivians had arrived on board, 
 I did not hesitate to explain to the representatives of both countries 
 that in my opinion, Mr. Osborn having fixed the place at Arica, in good 
 faith, simply on account of its convenience and central location, and 
 neither Peru nor Bolivia having objected to it at that time, and the 
 official notes fixing it there having been widely published in Chili, and 
 the opposition to the place having been made only at the last moment 
 by the minister of foreign affairs at Lima, while its chief executive had, 
 as appeared from an official interview with Mr. Christiancy, a short time 
 before, not definitely objected, and Bolivia having no cause to object, a& 
 Arica was the only place spoken of between myself and its government, 
 it seemed to me that should now the change of place be insisted upon 
 by the Government of Peru, history would make that government re- 
 sponsible for the failure, and would consider the reasons therefor as ema- 
 nating from extreme sentimentality, not justified at this hour. 
 
 Finally, it was agreed that one of the Bolivian plenipotentiaries, Senor 
 Baptista, should accompany me to Arica, and that while he should try 
 to obtain a change of place from the Chilians, the government at Lima 
 should be advised of the state of affairs and the Bolivian position, in 
 
48 AFFAIRS IX CHILI, PERU, AND BOLIVIA. 
 
 order that in the extreme case of Mr. Baptista failing in his mission, a 
 favorable reply might for these reasons still be expected. 
 
 Accordingly, early on the 14th the Lackawanna sailed, having aboard 
 Messrs. Baptista and Aramayo. On the 15th Seiior Baptista placed 
 himself, after our arrival at Arica, in communication with the Chilian 
 Government, but all his efforts in that regard being -unsuccessful, he 
 on the 17th sent a dispatch to Messrs. Arenas and Garcia y Garcia, at 
 Mollendo, taking the responsibility to advise and request them on the 
 part of Bolivia to comply, and without further delay come to Arica, in 
 consequence of which, and an answer having meanwhile been received 
 from President Pierola, allowing his plenipotentiaries to do so, if Bolivia 
 should so desire, the Chalaco arrived at this port on the 20th, in the 
 evening, and on the same evening I was officially notified by the Boli- 
 vians of their readiness to proceed to business. 
 
 Meanwhile, Mr. Osborn and the plenipotentiaries of Chili had also 
 arrived, and both he and Mr. Christiancy were also notified, and in 
 accordance with these notices we jointly, fixed the time for the first 
 meeting for the 22d at 12 m., on board the Lackawanna, at which time 
 and place it actually took place. 
 
 * Whatever the final result of these conferences may be, I feel justified 
 in saying that by reason of the forbearance, moderation, and dignified 
 position exhibited by the BoUvian plenipotentiaries as between the other 
 two parties, both so stubborn in their resolution not to yield, the present 
 state of affairs — that the conferences are held at all — has been attained, 
 and if I did take an active part in advising the course as actually taken, 
 I have done so from an ardent desire not to see the object of our media- 
 tion fail before it had fairly commenced, and I hope that such my action 
 may meet your approval. 
 
 I have, &c, * 
 
 CHABLES ADAMS. 
 
 No. 36. 
 Mr. Adams to Mr. Evarta. 
 
 No. 36 A.} Legation of the United States, 
 
 La Pa~, Bolivia, November 6, 1880. (Beeeived December 17.) 
 
 Sir: I have the honor to transmit herewith copies of correspondence 
 had between the Bolivian plenipotentiaries, Mr. Christiancy, and myself, 
 which belong to and are explanatory of my dispatch No. 36, dated from 
 United States steamship Lackawanna, Bay of Arica, October 23, 1880. 
 I have, therefore, marked this No. 36 A, and would request that it be 
 added to and made a part of the above-mentioned dispatch on the files 
 of the Department. 
 
 The correspondence explains itself and is arranged in its proper order. 
 
 I have, &e. 
 
 CHABLES ADAMS. 
 
 [Inclosure 1 in ^o. 36 A.I 
 
 Mr. Adams to Mr. Christiancy. ' 
 
 On Board the Chalaco, 
 
 October 13 — 5 p. m. 
 Dear Sik : The Peruvian ambassadors desire you to wait, if it is possible, until they 
 ■can receive an answer from their government, which is momentarily expected. 
 
 Should you decide not to wait, one of the Bolivian ambassadors has accepted my 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 49 
 
 invitation to go aboard the Lackawanna at once with me and proceed to Arica with 
 ns (as Bolivia does not wish to see the negotiations fail), and will try to do what he 
 can to bring the matter to an issue. 
 
 The inclosed memorandum is about their opinion, but, as said before, Mr. Baptista, 
 the first ambassador, will go with us ; Mr. Carrillo is too sick. 
 
 Send me word at once whether you will stay or not. If not, I will send a boat for 
 Mr. Baptista to the shore and come without delay. 
 Yours, &c., 
 
 ADAMS. 
 
 [Inqlosure 2 in No. 36 A.— Translation.] 
 MEMORANDUM. 
 
 To Mr. Adams (who will kindly communicate this to Mr. Christiancy) : 
 
 The diplomatic ministers of Bolivia, considering the incident which has just occurred 
 in determining the point of their labor jointly with those of the Republics of Peru 
 and Chili, present these brief considerations : 
 
 One of them, Mr. Carrillo, since coming on board is entirely incapacitated from any 
 work by reason of his delicate health, a situation which will be aggravated if his stay 
 on the sea be permanent. In Arica they would be placed in their diplomatic work 
 under unfavorable conditions, as communication with their government would be very 
 difficult. They thought these difficulties removed when they were given to understand 
 on their departure from La Paz that the conference would take place at a point sit- 
 uated between Pacocha and Callao ; they would be obviated, if Mollendo or any other 
 place on the coast be neutralized, or if the Lackawanna would approach any other 
 landing more convenient than Mollendo. 
 
 They simply present these considerations as likely to conciliate all inconveniences, 
 not sufficient in any case, however, to obstruct the serious steps initiated to bind 
 together the interests of the three nations. 
 
 On board the Chalaco, October 13, 1880. 
 
 [Inclosure 3 in No. 30 A.] 
 Mr. Christiancy to Mr. Adams. 
 
 On Board the Lackawanna, 
 
 Mollendo, October 13, 1880. 
 
 Dear Sir : It is very important for us to be at Arica as soon as Mr. Osborn and the 
 Chilian ministers arrive. We did wish to leave at once, but have concluded to wait 
 until 3 o'clock a. m., by which time I hope the expected dispatch may arrive. 
 
 The plenipotentiaries of Peru and Bolivia, after the very full explanations I have 
 given, must be aware that the government of Chili is disinclined to hold the prelimi- 
 nary conferences in any other port than that of Arica, while it is not disinclined to 
 transfer the next meeting elsewhere, if the plenipotentiaries, in full council, so decide. 
 
 It being therefore evident that such preliminary conference should take place there, 
 it remains simply for the representatives of Peru and Bolivia to say whether they will 
 proceed to that port or decline to do so. 
 
 In the former case it will not be necessary for them to be in Arica before Monday 
 evening next, which will give them ample time to receive the dispatch from Lima, 
 now expected. 
 
 I have therefore decided to return to Arica at once, and shall await the arrival of 
 the Chalaco with the envoys of Bolivia and Peru at that port until noon on Tuesday 
 next, 19th instant. 
 
 Should they not arrive before that hour, I shall consider it as indicating their re- 
 fusal to come to Arica and shall sail for Callao, calling at Mollendo at about 10 a. m. 
 of Wednesday, the 20th instant, to convoy the Chalaco to Callao. 
 
 The Lackawanna will therefore leave at 3 o'clock a. m. to-morrow for Arica. 
 
 Captain Gillis will send a boat for yourself and Mr. Baptista at 8 o'clock, and will 
 be most happy to see you both on board. 
 I remain, &c, 
 
 I. P. CHRISTIANCY. 
 
 Chas. Adams, Esq., 
 
 On hoard the Steamer Chalaco, Mollendo. 
 
 S. Ex. 79 4 
 
50 AFFAIRS IN CHILI, PEETJ, AND BOLIVIA. 
 
 [Incloaure 4 in No. 36 A. } 
 
 Mr. Adams to Mr. Aramayo. 
 
 On board Chalaco, October 13 — 7 p. m. 
 Dear Sir: Please tell Mr. Baptista that I have received a note from Mr. Christiancy 
 indicating the following points : First, that the Lackawanna will leave this port at 
 three o'clock this night for Arica ; second, that Mr. Christiancy and the captain of the 
 ship will be glad to see Mr. Baptista on board, in which case this boat will bring him 
 and yourself at once; and third, that the Chalaco will have time to make its appear- 
 ance at Arica until next Tuesday, when, it failing to do so, all negotiations will be 
 
 considered at an end.* 
 
 ******* 
 
 Expecting to see you and Mr. Baptista at once, 
 I am, &c, 
 
 CHAS. ADAMS. 
 
 [Inclosure 5 in No. 36 A. — Translation.] 
 
 The Ministers Plenipotentiary to Mr. Adams. 
 
 Legation Extraordinary of Bolivia, 
 
 on board Steamer Chalaco, 
 
 Arica, October 20, 1880. 
 Sir : The undersigned, ministers plenipotentiary of Bolivia, have the honor to in- 
 form your excellency that, having arrived at this port, they are ready to attend the 
 conferences to which the Governments of Bolivia, Peru, and Chili have been invited 
 through the benevolent mediation of the most excellent Government of the United 
 States of North America. 
 
 Your excellency will therefore have the kindness, iu accord with their excellencies 
 the ministers of the United States near the Governments of Peru and Chili, to name 
 day and hour when the said conferences should begin. 
 
 With sentiments of the most distinguished consideration, the undersigned have the 
 honor to subscribe themselves, &c. 
 
 JUAN C. CAKEILLO, 
 MAEIANO BAPTISTA. 
 
 [Inclosure 6 in No. 36 A.] 
 
 Mr. Adams to the Ministers Plenipotentiary. 
 
 On board United States Steamer Lackawanna, 
 
 Bay of Arica, October 21, 1880. 
 ^Sefiores Plenipotentiaries: 
 
 I have the honor to acknowledge the receipt of your excellencies' note of the 20th 
 instant, informing me that, having arrived in this port, you are ready to attend the 
 conferences to which the Governments of Bolivia, Peru, and Chili have been invited 
 by my government, and requesting me in concert with ray colleagues, the ministers of 
 the United States accredited near the Governments of Peru and Chili, to name the 
 day and hour when the said conferences should begin. 
 
 In reply I have the honor to inform your excellencies that I have been officially noti- 
 fied by my colleague, the minister of the United States near the Government of Pern, 
 of the arrival here of the plenipotentiaries of that republic, Don Antonio Arenas and 
 Don Aurelio Garcia y Garcia, and by my colleague, the minister of the United States 
 near the Government of Chili, of the arrival of the Chilian plenipotentiaries, Don J. 
 F. Vergara, Don Eusebio Lillo, and Don E. Altamirano, all of whom have signified their 
 readiness to attend the proposed conferences. 
 
 In view of these faots my colleagues concur with me in inviting your excellencies 
 and the plenipotentiaries of Peru and Chili to proceed, as soon as may be convenient, 
 with said conferences, in the cabin of the "Lackawanna," and we respectfully suggest 
 that the first meeting be held at twelve o'clock noon, to-morrow, the 22d instant. 
 Be pleased to accept, &c, 
 
 CHAS. ADAMS. 
 
 * The extract is made by Adams. 
 
AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 51 
 
 No. 37. 
 
 Mr. Adams to Mr. Evarts. 
 
 ]So, 39.] Legation of the United States, 
 
 La Paz, November 6, 1880. (Received December 17.) 
 
 Sib: I have the honor to advise you that I have returned to my post 
 after the failure of the peace conference at Arica. I do not think that 
 either our government or its representatives have any cause to reproach 
 themselves nor feel that the efforts made, although without apparent 
 result, have been entirely misplaced. 
 
 A short dispatch of the abrupt termination of the conferences was signed 
 by me jointly with Messrs. Osborn and Christiancy, and this, with a re- 
 port of the proceedings and official protocols of the three conferences, will 
 be transmitted to the Department by the latter, who is accompanied by 
 our joint secretary, so that it is unnecessary for me to make a separate re- 
 port ; but some observations may not be perhaps out of place, especially as 
 I am cognizant of some matters affecting the negotiations as between Chili 
 and Bolivia, which were not brought forward in the conference, but 
 nevertheless may be of interest to yourself in order to completely under- 
 stand the situation. 
 
 The decided expressions of the plenipotentiaries not to modify their 
 first bases, no doubt influenced by public opinion in their country, which 
 was opposed to peace, and the causes of this feeling said to be mainly 
 based upon an official note to Mr. Christiancy by the Government of 
 Peru, will probably be fully explained and commented upon by Mr. Os- 
 born ; as will also Mr. Christiancy, without doubt, give his views upon 
 the popular feeling in Peru, and how much the government of that re- 
 public through its plenipotentiaries was able to concede, and also upon 
 the rather proudly, if not offensively, expressed refusal by Chili to ac- 
 cept arbitration as proposed by Peru and accepted by Bolivia. 
 
 The matters are as between Chili and Peru, and I wish to add to the 
 history of the proceedings simply that the proposition made by Bolivia to 
 surrender the coveted territory under failure to pay a large war indemnity 
 in a fixed limit of time, which would have guaranteed its peaceful pos- 
 session to Chili, as neither Peru nor Bolivia would have been able to pay 
 it, seemed to me at least well worthy of respectful consideration ; but in- 
 asmuch as the proceedings do not show that the government at Santiago 
 had even been consulted thereon, and its plenipotentiaries in the con- 
 ference had but little to say about it, it seems to me that that govern- 
 ment was not very much in earnest in its desires for peace; that the con- 
 ditions at first submitted were meant to preclude any probability of be- 
 ing accepted and that from the first our efforts might be considered inu- 
 tile and in vain. 
 
 The main endeavors of the Chilians in private conferences with the 
 Bolivians, communicated to me confidentially by the latter, were made 
 to break up the alliance between Peru and Bolivia, and engage the latter 
 republic in an alliance with themselves as the unavoidable result of such 
 action. Great inducements were held out, a share in the conquests 
 already and still to be made; but I am pleased to be able to say that such 
 perfidy and disregard of national honor was not consummated; and if, 
 on being consulted on that subject, I took a decided stand in declaring 
 that such proceeding, no matter how beneficial it might be to Bolivia, 
 would be considered by my government, and no doubt by the world, as one 
 of the most infamous transactions in history, would reflect no credit on 
 either nation, but lasting infamy on all persons connected therewith, ' 
 and that I would be neither a party thereto nor even be considered offi.- 
 
52 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 cially cognizant thereof, I hope that I only expressed your own senti- 
 ments. The advances so made by oneof the Chilian plenipotentiaries were 
 rejected; and if by the unfortunately existing alliance with Peru Bolivia 
 is deprived from making peace, which it so much needs and desires, it 
 can at least hold up its head amongst nations and be able to say that it 
 ■will bear misfortune rather than dishonor. 
 
 I have only to'addmy views upon one point as appearing in the second 
 protocol,* when Mr. Osborn,in rather strong terms, it seemed to me, stated 
 the Government of the United States would not care to accept the office 
 of arbitrator on account of the labor and trouble involved. In my dis- 
 patch No. 26D,inclosure5,Ihad the honor to transmit a memorandum of 
 a conference with Mr. Carrillo, which, considering arbitration a natural 
 consequence of the offered mediation and upon its failure the only prac- 
 ticable road to peace, I had no hesitation in declaring that such arbitra- 
 tion would be accepted by my government if desired by all the belliger- 
 ents. In that sense the mediation was accepted by Bolivia, and in that 
 sense I wrote to Mr. Osborn (inclosure 6, No. 26), and having been in- 
 formed by him that he had acquainted the Government of Chili of its 
 import, and never having been by him advised that the construction I 
 had placed upon the terms of mediation was wrong and ill-founded. I 
 at least may be permitted to say that both the rejection of such arbitra- 
 tion by Chili and Mr. Osborn's speech thereon appear to me strange and 
 inexplicable, especially as no instructions had been received by either 
 of us on that subject. 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 No. 38. 
 
 Mr. Adams to Mr. Evarts. 
 
 No. 43.] Legation of the United States, 
 
 La Paz, November 12, 1880. (Received December 27.) 
 
 Sir : I have the honor to submit herewith a brief report of the politi- 
 cal situation in Bolivia, since my last dispatch upon that subject, No. 
 27, dated September 3 last. 
 
 During the absence of the ministers and myself at Arica, everything 
 was very quiet, especially as it was generally believed that our media- 
 tion would certainly bring about peace, if not directly at least by arbi- 
 tration, m^u 
 
 In that sense the National Assembly of Bolivia after a session of five 
 months adjourned sine die on October 24, without passing any direct 
 laws looking towards an active prosecution of the war. It gave, how- 
 ever, full powers to the President as to the enrollment of troops, the 
 raising of a foreign loan, in compliance with which a financial agent has 
 already been sent to Europe, the purchase, of arms and employment of 
 other means for defense ; it approved the Bravo concessions, in spite of 
 Peru's protest, for the colonization of its eastern territories and building 
 of highways, railroads, and canals from the east via the La Plata and 
 Amazon Rivers, and it referred the acceptance of the Peru-Bolivia con- 
 federation to popular vote in the future; so that for the present that 
 brilliant idea of Dictator Periola of Peru may be considered a failure ; 
 it passed an excellent mining law, and in general, being very conserva- 
 tive, may be considered to have worked foj the interest of the country 
 as best it could. 
 
 "Enclosed with Mr. Christianoy's No. 200, November 2, 1880. See Document 285. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 53 
 
 The Government of Bolivia having declined to declare commercial in- 
 terdiction with Tacna • and Arica at the request of Peru, the prefect of 
 the narrow strip of country still nominally occupied by Peruvians be- 
 tween the above places, and the borders of Bolivia ; had imposed upon 
 all goods passing through his jurisdiction a transit duty in itself for- 
 bidding all trade, and had actually seized goods then en route for non- 
 payment, which action had excited the public feeling'here very much, 
 and came near leading to a rupture, but the Peruvian minister at La 
 Paz ordered the goods released and a compromise was effected, whereby 
 an additional 5 per cent, duty is to be paid to Peru, so that with the 
 duties to Chili, Peru, and Bolivia, about 65 per cent, ad valorem, and the 
 enormous costs of transportation prices ' of even the necessaries of life 
 and especially clothing have risen to extreme figures, while money re- 
 tains its full value, exchange being almost at par. 
 
 When the failure of the conferences became known here, the Presi- 
 dent made a spirited address to the troops in public; but the people are 
 very dejected, an invasion is feared, and especially the inhabitants of 
 this city already see their property burned and destroyed, and themselves 
 fleeing from the cruelty and brutality of the enemy, their only hope be- ' 
 ing still that in some way or other the United States will intervene in 
 what is now considered by all the most cruel and barbarous war of 
 devastation, vandalism, and conquest on the part of the enemy, and that 
 no mercy need be expected. 
 
 Minister Oarrillo informed me yesterday that he, with his colleagues 
 of the cabinet, had resigned, being forced thereto on account of the 
 failure of the mediation; that they having held out the hope of peace to 
 the country, and being unsuccessful, must now leave the work to others, 
 who propose a different policy, and that the change in the cabinet 
 would take place as soon as their report of the matters connected with 
 the mediation with the protocols of conferences at Arica is published 
 and submitted to the country. 
 
 What the future will bring, it is impossible to say; a hope still remains 
 that the Argentine Republic may take part in the war against Chili; 
 but I have not much confidence in this, and the present allies, I believe, 
 will have to fight to the bitter and scarcely doubtful end. 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 No. 39. 
 
 Mr. Adams to Mr. Uvarts. 
 
 No. 46.] Legation of the United States, 
 
 La Paz, November 17, 1880. (Received January 3, 1881.) 
 Sir: I have the honor to transmit herewith a copy of a note received 
 from Seiior Carrillo, and one of the printed pamphlets mentioned therein, 
 containing the report of the Bolivian plenipotentiaries, the protocols* 
 of the conferences and the acknowledgment of the government. 
 
 Inasmuch as a' translation of the protocols will be furnished by Mr. 
 Christiancy, I transmit herewith only that of the report itself. 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 * For report of the proceedings of the conference, see document No. 285, post. 
 
54 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [In closure 1 in No. 46. — Translation.] 
 
 Mr. Carrillo to Mr. Adams. 
 
 Ministrt of Foreign Relations, 
 
 La Paz, November 13, 1880. 
 
 Sir : Repeating the acknowledgments of my government for the benevolent offices 
 and personal attitude of yonr excellency during the peace negotiations, I have th» 
 honor to transmit three copies of a pamphlet, in which these conferences have been 
 published. 
 
 I improve the opportunity to again subscribe myself, with all consideration and 
 respect, your excellency's, &c., 
 
 J. C. CARRILLO. 
 To His Excellency the Minister Resident 
 
 of the United States of North America, 
 
 Present. 
 
 [Inclosure 2 in No. 46. — Translation.! 
 
 Report of the Bolivian plenipotentiaries. 
 
 Plenipotentiaries of Bolivia on Special Mission, 
 
 La Paz, November 5, 1880. 
 To the Minister of State and Foreign Relations : 
 
 Sir : We have the honor to transmit to the department with this report the auto- 
 graph protocols of the peace conferences which have taken place in the waters of 
 Arica and on board of the American corvette Lackawanna, between the plenipoten- 
 tiaries of the three republics engaged in the present struggle of the Pacific. 
 
 In accord with the high and sincere sentiments of the national government, we have 
 tried, with decided ardor, to arrive at an arrangement for peace compatible with the 
 honor of the allied republics and the great interests of South America. 
 
 We understood that such result would not be probable if we did not accept to a 
 certain extent the necessary effects produced by the advantages gained on the battle- 
 field. This consideration induced us to calculate quietly the favorable results which 
 the allies might obtain, as well as the sacrifices which they might have to make with- 
 out loss of dignity, not vaguely invoked, but defined in the course of events. 
 
 At the first step of the negotiations the designation of the place for the conferences 
 became a point of diplomatic consideration, and might have definitely made these 
 impossible. To obviate this incident, we agreed that one of us should go to Arica on 
 a particular mission, accompanied their excellencies the American ministers, Messrs. 
 Christiancy and Adams, which was done with the consent of their excellencies the 
 plenipotentiaries of Peru. There we were enabled to speak to the delegate from the 
 most excellent Government of Chili, who transmitted to it our different concilia- 
 tory propositions, which were, however, peremptorily rejected. On our responsibility 
 thereupon we chose that the negotiations should take place on board of the corvette 
 Lackawanna in the waters of Arica. The estimable arguments of their excellencies 
 the ministers of the United States in the same sense facilitated the final opening of the 
 conferences. 
 
 In these we maintained the same spirit which animated us. In the first we expressed 
 our hope that the most excellent negotiators might consider the subject in accordance 
 with its responsibility and as Americans, putting aside the inspirations of interior 
 politics and the popular clamor of the day, considering only the serious' and perma- 
 nent necessities of the three republics. Our confidence in the noble action of the 
 United States was strengthened above all when we heard his excellency Mr. Osbo'rn, 
 as organ of his colleagues and appreciating exactly one point in our history, de- 
 clare in these words, "That for the first time the institutions of our continent were 
 on trial." 
 
 Notwithstanding that the propositions of Chili when presented were of such a charac- 
 ter as to shut off all discussion, we endeavored to maintain it patiently within the 
 limits of natural development. 
 
 Consequently we introduced for the sake of peace and* the high interests of America 
 what we thought a measure of conciliation, counting upon the approbation of our 
 government. Its sense and deductions, as well as the substance of our observations, 
 are contained in the proper protocol. We will only add tha't their excellencies the pleni- 
 potentiaries of Chili declared this measure inconvenient and opposed to their instruc- 
 tions. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 55 
 
 We favored decidedly the arbitration proposed by their excellencies the ministers of 
 Peru, and did not omit to show all the advantages held out by this means even to the 
 Republic of Chili. 
 
 Nothing was sufficient to change the'unalterable resolution maintained by their ex- 
 cellencies the plenipotentiaries of Chili in regard to the definite annexation of all the 
 Bolivian coast, and that of Peru as far as Camorones, as a basis sine qua non of any 
 arrangement. 
 
 With satisfaction we have to refer to the distinguished attitudeaf their excellencies 
 the plenipotentiaries of Peru in discharging their delicate and difficult task, wherein 
 they were assisted materially by their clear and practical reasoning. 
 
 We also express our acknowledgments of the personal 1 efforts of their excellencies 
 the ministers of the United States,, and we are well aware of what we owe to those 
 particularly employed by his excellency Mr. Charles Adams; but, considering the an- 
 tecedents of the mediation and the high object manifested in the first conference, we 
 cannot conceal our lively regrets that it was not possible for the most excellent medi- 
 ators to assume a different diplomatic attitude from that which his excellency Mr. 
 Osboru marked out, and which reduced itself to a polite invitation to meet and preside 
 over our discussions, without giving their presence any other character than that of 
 the most simple and initiatory good offices. 
 
 Our efforts to re-establish an honorable and secure peace between the three repub- 
 lics have been without result. Arbitration, the most dignified mode of settling dis- 
 putes among civilized nations, has been rejected. America will decide on which side 
 justice remains. 
 
 Begging you to bring this report, with the protocols attached, to the knowledge of 
 the President of the Republic, we herewith tender our respects and subscribe ourselves. 
 Your very, &c, 
 
 MARIANO BAPTISTA. 
 JUAN C. CARRILLO. 
 
 No. 40. 
 
 Mr. Adams to Mr. Evarts. 
 
 No. 49.] Legation of the United States, 
 
 La Paz, December 3, 1880. (Eeceived January 21, 1881.) 
 
 Sir: Since the publication in pamphlet of the protocols of the Arica 
 conferences, one of which, with the report of the Bolivian plenipoten- 
 tiaries, I had the honor to transmit in my dispatch No. 46, another doc- 
 ument relating to the same subject has been issued by the department 
 of foreign affairs, a copy of which is herewith inclosed, in which Mr. 
 Carrillo recites all the steps taken by him in regard to the mediation, and 
 finally closes by offering his resignation on account of its failure. The 
 manifest, as it is called, is quite lengthy, aud as all the points are well 
 known to you from-my former dispatches, and the annexed correspond- 
 ence with the memoranda of official interviews have all been transmitted 
 by me, a complete translation seems unnecessary. 
 
 Mr. Carrillo begins by saying that as soon as the mediation had been 
 offered he had, full of hopes of a successful issue, communicated these 
 to the National Congress, which had approved of the policy to be pur- 
 sued ; and now, inasmuch as it had failed, he felt himself obliged to show 
 to the country the reasons whereupon his hopes and policy were based. 
 He then gives in detail the history of our correspondence from its com- 
 mencement of our two interviews, and lays particular stress upon the 
 idea advanced by me that if the representatives of the three republics 
 could not agree, it seemed to me advisable that the settlement should be 
 left to arbitration; at any rate that the different plenipotentiaries ought 
 to have full power to accept arbitration if mediation failed, especially 
 as this had been offered, not as a compliment, but actually with a view 
 to end the conflict. He then proceeds to give his correspondence with 
 his minister in Lima; refers to the offered mediation of the European 
 
56 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 powers, and states his reasons why the latter could not be accepted. He 
 then briefly mentions that the expedition to and destruction of private 
 property at Chimbote had nearly frustrated all hopes of the conferences 
 taking place, but that finally, all obstacles being removed, the actual 
 meeting seemed to hold out a hope of a successful issue. 
 
 Passing to the conference, he describes the failure of the mediation to 
 the determined and not-to-be-modified proposition of Chili to annex the 
 Bolivian and Peruvian coast provinces by right of conquest simply, 
 and leaves it to America and the world to judge whether this demand 
 of Chili and the acknowledgment of being conquered by Peru and Bo- 
 livia would be consistent with the honor of the latter and with American 
 interests at large. 
 
 He then ealls attention to the curious history of this mediation, which 
 was first accepted by Chili in August last, then even its existence denied 
 by its cabinet, then again officially accepted on October 7, although 
 my correspondence, as well as the fact that the day for the conference 
 was fixed by Mr. Cbristiancy and Mr. Osborn for the 5th of October, 
 borne out by the farther fact that the Chilian admiral actually permitted 
 the Peruvian vessel with the plenipotentiaries on board to leave Callao 
 on the 1st of the same month, would demonstrate that the second accept- 
 ance was an act hardly in accordance with the honor of an American 
 nation. Then, speaking of the attitude of the American ministers and 
 the course pursued by us, he continues: 
 
 The spirit of conciliation consistent with the good offices of a mediating power has 
 never entered into the designs of Chili. Arbitration proposed with full acknowledg- 
 ment of the advantages gained in the war -was hotly rejected. All discussion, all 
 agreement was impossible. The mediation, the diplomatic action of the allied govern- 
 ments, and the universal wish for the return of peace, I repeat, were doomed by the 
 determined attitude of the representatives of Chili. 
 
 In such extreme emergency what action would have been most consistent with the 
 dignity ef the most excellent ministers of the United States and the high prestige of 
 its government? 
 
 With perfect right and in accordance with the first step in the mediation they might 
 have proposed acceptable bases, or they might have approved the propositions of the 
 plenipotentiaries of the allies, if they considered these just and proper. They might 
 have advised, and even honored with their decided approval, the acceptance of arbi- 
 tration, which, considered in the Bolivian ministry as the essential basis of mediation 
 and frankly authorized by the representative of the United States was the only pos- 
 sible solution since the beginning of the negotiations. This, and much more, and on 
 a greater scale, corresponded with the fervent and noble desires with which the most 
 excellent government of the United States proposed to aid in the restoration of peace. 
 
 But this important step, which might have been taken by the representatives of the 
 United States, preceded those haughty and determined declarations as well as the pro- 
 test that under no considerations would these be changed; and they, convinced also 
 that the sentiment of Chili was for war at any price, preferred to reserve their diplo- 
 matic action in order to avoid a sure rejection of their proposition and the grave con- 
 sequences whichmight have followed such action. Without instructions towards such 
 extreme eventuality they were obliged to limit their action to bringing the unexpected 
 and unsuccessful conclusion of the offered mediation to the knowledge of their gov- 
 ernment. So by this step, prudent as well as of great foresight, they have preserved the 
 prestige of the government of the Great Republic and the respect due its policy of con- 
 ciliation. 
 
 Mr. Carrillo then gives it as his opinion that the Government of Chili 
 at first was prepared to offer moderate conditions, but that under the 
 influence of public clamor it had abandoned the path of justice, and 
 thereby, perhaps, endangered its political future, and he concludes .by 
 offering, as stated above, his resignation because the policy advocated 
 by him before the Congress and the country had failed. 
 
 It may not be out of place, nor uninteresting to add, that so far this 
 resignation has not been accepted, nor is it likely to be, as the press and 
 people, as far as heard from,are united in declaring the action of Senor 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 57 
 
 Carrillo to have been upright and statesmanlike, and President Oampero 
 last night informed me that, unless public sentiment in the interior 
 should be different, Mr. Carrillo would certainly remain at the head of 
 affairs. 
 
 At the same time I was also informed that Mr. Baptista, the other plen- 
 ipotentiary at Arica, and Mr. Aramayo, the secretary, had been appointed 
 minister and secretary of legation at Buenos Ayres, so that it seems that 
 instead of being considered a failure, the Bolivian diplomats engaged in 
 the negotiations are rewarded^ their action and position are fully approved, 
 and" the result is considered an advantage, because it is hoped by some 
 that the so openly exposed policy of conquest on the part of Chili, coupled 
 with the rejection of arbitration, may induce our government to intervene ; 
 while, on the other hand, there is no doubt that it will compel the Gov- 
 ernment of the Argentine Bepublic, which also has its frontier disputes 
 with Chili, to demand guarantees for its own security, in which case it 
 is expected here, that war between those two powers will be unavoidable. 
 I have, &e., 
 
 CHAELES ADAMS. 
 
 [The inclosure is a lengthy pamphlet in the Spanish language, the 
 translation of which would cause delay in the transmission of the papers 
 to Congress. It will be translated if required.] 
 
 No. 41. 
 
 Mr. Evarts to Mr. Adantt. 
 
 No. 24. J Department of State, 
 
 Washington, December 14, 1880. 
 
 Sir : You dispatch No. 36, of the 24th of October last, written while 
 on board of the United States ship Lackawanna, Bay of Arica, has 
 been received. It narrates the personal movements of yourself and the 
 Bolivian plenipotentiaries to join the conference, under the mediation 
 of the United States, between the belligerent powers. 
 
 Your action, as reported therein, is approved by the Department. 
 
 While upon the subject of the mediation between the plenipotentiaries 
 of Bolivia, Chili, and Peru, I have to inform you that Mr. Christiancy 
 has, in his dispatch No. 200, of the 2d ultimo, inclosed the protocols of 
 the conferences of such representatives, held at Arica from the 22d to 
 the 27th of October last. 
 
 Although this government would have been glad to have received in- 
 telligence that its efforts in the direction of securing peace between the 
 belligerent powers had been efficacious to that desirable end, and al- 
 though it cannot cease to entertain the most serious regret that such 
 efforts have met with so little apparent success thus far, the Government 
 of the United States still stands ready to render its assistance to that 
 end in every proper way. 
 I am, &C, 
 
 WM. M. EVARTS. 
 
58 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 42. 
 
 Mr. Adams to Mr. Evarte. 
 
 No. 52.] Legation of the United States, 
 
 La Paz, December 16, 1880. (Received February 5, 1881.) 
 
 Sir: I have the honor to transmit herewith a diplomatic circular ad- 
 dressed to the governments of South America by the minister of foreign 
 relations of Bolivia, and which, in connection with his manifest, a copy 
 of which has heretofore been transmitted, is intended to fully demon- 
 strate the position of Bolivia in the present war, the unjust demands 
 and cruel mode of warfare on the part of Chili, and seems to have in 
 view an active intervention of the other South American States as against 
 the encroachments on the part of Chili. 
 
 Much of What is contained in this circular is a repetition of former 
 declarations, especially as to the policy of Chili, now openly acknowl- 
 edged to be one of conquest, and which Mr. Carrillo thinks, if accepted in 
 silence and without protest by the other governments of South America, 
 would, after what has happened at Arica, place these in a position of 
 virtually acknowledging it to be proper and right. 
 
 The principal reasons for invoking the intervention of the other States 
 against Chili are its policy of conquest, contrary to American ideas, 
 traditions, and interests; the cruel mode of prosecuting the war by 
 destruction of private property and undefended towns; and, principally, 
 the rejection of the proposed arbitration. 
 
 If the first should be accepted as the future policy of America, Mr. 
 Carrillo explains, all the different republics would be obliged to keep 
 large standing armies, whichheretofore had never been necessary, and 
 constant wars might be apprehended. 
 
 Chili had never pretended to claim any part of the territory now de- 
 manded as the price of peace; while even when the small Republic of 
 Paraguay, after a long war, and completely at the mercy of its enemies — 
 the powerful Empire of Brazil and the Argentine Confederation — it was 
 especially declared that the victory did not give them title to disputed 
 territory, but the decision on that point was left to the President of 
 the United States as arbiter; and in accordance with it the Argentine 
 Republic returned to Paraguay territory to which it had claimed and 
 believed to have rights, and Brazil kept only such as it fully was en- 
 titled to. 
 
 The coast district of Bolivia, small as it is, had given it an outlet to 
 the Pacific Ocean, and its possession was never questioned until natural 
 deposits of salitre and guano were discovered, and should it now be 
 taken, its only outlet would be gone, and thereby its very existence and 
 certainly the equilibrium of South America be threatened. 
 
 Passing to the second consideration, the various acts of devastation 
 in the present war are enumerated and compared to the policy of En- 
 gland during our own war of 1812-'14, when Admiral Cochrane destroyed 
 our undefended towns on the Atlantic and even the public buildings of 
 our capital, for which action he had not only been denounced in his 
 own country, but all over the civilized world, and which like action, in 
 addition to what already has been done, is now threatened against Lima, 
 the old and historical city of the Pacific, destruction of which has been 
 authorized by Chili. 
 
 The third consideration, the rejection of arbitration by Chili, is espec- 
 ially commented upon, because a month before the conference at Arica 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 59 1 
 
 it had entered into a treaty "with the Eepublic of Colombia on the fol- 
 lowing terms : 
 
 Desiring to affirm the sentiments of international friendship which should be the 
 foundation of peace and fraternity in America, they have with this object in view re- 
 solved to mate a treaty and have signed the following articles : 
 
 First : The two republics are forever obliged to submit to arbitration all controver- 
 sies and difficulties of whatever nature may come up between both nations. 
 
 Second : In case of failure to agree, the President of the United States of America ia 
 fully authorized as arbiter to carry out his functions as such. 
 
 Third : Colombia and Chili shall try at the first opportunity to hold like conven- 
 tions with the other American nations, so that the solution of all international con- 
 flicts by means of arbitration be a principle of American public right. 
 
 A month after this had been signed, the very principle was disowned, 
 one entirely contrary to its protestations proposed, and the very power 
 which so solemnly had been designated as arbiter by Chili itself as sol ■ 
 emnly rejected. 
 
 Mr. Carrillo in summing up, refers also to the other conditions im- 
 posed upon the allies, which virtually deprive them of their sovereignty, 
 as it prohibits them from entering into future treaties, besides declaring 
 null and void a former one, and forbids Peru even to fortify its own 
 ports in the future ; thereby assuming such domination as no nation 
 could submit to, if not totally conquered. Mr. Carrillo therefore believes 
 that the governments of the other republics, convinced of Chili's bad 
 faith, barbarous acts, and intentions, its false position, lust of conquest 
 and domination, will in their wisdom take such steps as will stop these 
 ambitions, preserve the traditions of America, and define such a policy 
 for N the future, which, in accord with the division of Spanish- America, 
 and the definition of the limits of the different republics as agreed upon 
 in 1810, will forever avoid further complications and conflicts ; to which 
 end. he advises that an American congress should meet, deliberate upon 
 all questions at issue, and establish sucb guarantees as will keep intact 
 these limits, and in that way procure a lasting peace. On account of a 
 severe illness, from which I still suffer, and having no assistance What- 
 ever, I have not been able to make a translation of the circular, but trust 
 that the above summary may answer the purpose. 
 I have, &c, 
 
 CHAELES ADAMS. 
 
 [The circular is very long, and as the minister has given the substance 
 in the dispatch it is not transmitted.] 
 
 No. 43. 
 
 Mr. Adams to Mr. Uvarts. 
 
 No. 56.] Legation of the United States, 
 
 La Paz, January 9, 1881. (Eeceived February 15.) 
 SrB: I have the honor to transmit herewith a second diplomatic cir- 
 cular,* addressed by Mr. Carrillo to the other American governments, 
 relating to the present war with Chili, and which is especially intended 
 as an answer to and in refutation of the position assumed by the min- 
 ister of foreign affairs of Chili, as expressed in his diplomatic circular 
 
 * This second diplomatic circular of Bolivia, dated December 20, 1880, 
 is long and in the Spanish language. A translation will be furnished if 
 deemed desirable. 
 
60 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 of November 10, 1880, a copy of which no doubt has reached the De- 
 partment. 
 
 The charges contained in the latter circular as against Bolivia, " that 
 she has failed to comply with the provisions of former treaties, that she 
 had rejected arbitration, and that she had entered into the 1873 treaty 
 with Peru with hostile intent towards Chili," are seriatim considered in 
 this paper, and the whole question is carried back to the outbreak of 
 the war and the causes leading to it, which, from a Bolivian standpoint, 
 are shown to be for a long time entertained and premeditated by Chili 
 in order to conquer and utilize the rich coast districts belonging to 
 Bolivia. 
 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 No. 44. 
 
 Mr. Adams to Mr. Evarts. 
 
 [Extract.) 
 
 No. 57.] Legation of the United States, 
 
 La Paz, January 17, 1881. (Received March 2.) 
 
 Sir : I have the honor to report that on the 15th instant the Carrillo 
 cabinet, whose probable dissolution after the failure of the Arica con- 
 ferences was foreshadowed, went quietly out of office, and a new cabinet 
 was announced, which consists of Dr. Nunez del Prado, minister of gov- 
 ernment and public instruction ; Senor Villazon, for treasury (retained); 
 Dr. Aguirro for war, and Dr. Jimenez for foreign affairs and public 
 worship. The latter, at present prefect of the province o£ Cochabamba, 
 has as yet not arrived at La Paz, so that Dr. Nunez del Prado is charged 
 with the business of the foreign department for the time being. 
 
 This cabinet may be considered representing the extreme war party, 
 •as Dr. Aguirro will be the soul of it, who, as a member of the late Con- 
 gress was daily and hourly advocating fresh measures for resistance 
 and aggression, and has ever been opposed to President Campero's 
 policy of inaction and expectancy. 
 
 While Chilian cannon are thundering at the very doors of Lima, and 
 all Bolivia is trembling for its fate and praying for its deliverance, this 
 change of cabinet takes place, and with it a ray of hope comes from the 
 south, from the government of the Argentine Republic, which at last 
 has granted free transit for Bolivian arms and ammunition, and should 
 the anticipated capture of Lima be delayed, Chili may find in a short 
 time a Bolivian army in its rear occupying Tacna, Arica, and Iquique, 
 which might force it to abandon its plans regarding Lima, and to fight 
 again for the possession of Atacama and Tarapaca, which provinces it 
 has already fondly considered its own by right of possession and con- 
 quest. I am also informed by the Peruvian minister that the govern- 
 ment at Buenos Ayres has decisively declared its intention to oppose 
 any annexation of territory in South America, and its press and public 
 opinion have lately assumed such bitter hostility towards Chili, that even 
 before you receive this the latter may have considered it wiser to 
 abandon its proud and haughty position. 
 
 This city, although rumors of revolution are frequently circulating, 
 remains quiet ; the other day a plot of mutiny was discovered amongst 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 61 
 
 the soldiers, and a sergeant promptly shot, and the editor of La Patria,. 
 who advocated peace with Chili at the expense of Peru, might have 
 shared the same fate if he had not been granted asylum in the Brazilian 
 legation, but had to leave the republic within twenty-four hours, which 
 measures seem to have established General Campero only the firmer in 
 his seat, so that I do not expect any serious attempts against him, unless 
 events now taking place near Lima should deprive Dictator Pi^rola of 
 power, and in sympathy should also affect Bolivia. * * * 
 I have, &c, 
 
 CHAELES ADAMS. 
 
 No. 45. 
 
 Mr. Nunez del Prado to Mr. Evarts. 
 
 [Translation.] 
 
 Ministry of Foreign Eelations of Bolivia, 
 
 La Paz, February 1, 1881. (Eeceived May 10.) 
 
 Sir : This ministry has the honor to inform your excellency's govern- 
 ment of Bolivia's unshaken determination to defend her rights and to 
 repel the doctrines of absorption and conquest which are sustained by 
 Chili. 
 
 This attitude, which is the only one that my government considers 
 compatible with the dignity and lawful privileges of an American nation, 
 is in accordance with the conviction which it entertains, that the vast 
 proportions which the war on the Pacific is daily assuming affect not 
 only the territorial integrity of the allied nations, but even their future 
 autonomy, and the permanent interests of America in a serious manner. 
 
 In order to defend this idea, Bolivia has sacrificed her bravest sons, 
 and is anxiously waiting for every American country to protest against 
 the acts of that nation which has originated this sanguinary conflict. 
 
 Meanwhile the allied forces, whose arms have been attended with 
 very ill success during the course of the struggle, have just met with 
 another reverse near Lima. 
 
 The loss of that maritime city, and the total destruction of the allied 
 fleet, oblige the government of the undersigned once more solemnly to 
 declare to the friendly nations of this continent that it is resolved un- 
 flinchingly to persevere in the defense of its autonomic integrity and in 
 that of American interests. 
 
 The occupation of Lima, far from shaking the determination of this 
 republic, has stimulated its patriotism, and it is now prepared to con- 
 tinue the struggle with Chili at any sacrifice. 
 
 This resolution is strengthened by the remembrance of an act which 
 will be condemned by all America. The war, which was inaugurated by 
 the forcible occupation of the maritime districts of Bolivia, is not a dis- 
 pute concerning a right that is more or less doubtful among the bellig- 
 erent powers ; it is one for the settlement of serious and highly impor- 
 tant questions. Chili, confiding in the strength of her navy, hoists the 
 standard of conquest and of territorial annexation. Bolivia and Peru 
 reject these doctrines and offer their blood and treasure in behalf of the 
 triumph of the principle of right. 
 
 There is, then, an immense chasm between the objects aimed at by the 
 two contending parties; and peace with Chili, which is at the present 
 
€2 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 moment impossible, cannot be restored save by the absolute triumph, of 
 the one and the utter overthrow of the other. 
 
 The justiee of the cause which Bolivia is defending is in itself a pow- 
 erful stimulus to maintain the contest, and the cheering conviction 
 which she entertains, viz, that in sacrificing herself in her own defense 
 she is sacrificing herself for the great interests of America, increases 
 her warlike enthusiasm, and adds fuel to the flame of her patriotism. 
 
 My government feels persuaded that by resolutely accepting this sit- 
 uation it furnishes evidence of its good faith towards its ally and of its 
 devotion to the principles which it professes. 
 
 If the final result shall be unfavorable to her, Bolivia will have the 
 glory of having sacrificed herself in defense of her rights in preference 
 to accepting the galling yoke of the conqueror. 
 
 Such, most excellent sir, are the declarations which my government 
 ■desires to make to friendly nations, inasmuch as they are watching with 
 increasing interest the prolonged struggle on the Pacific coast, and as 
 for the continuance of that struggle it relies upon the favorable opinion 
 ■of your excellency's enlightened government. 
 
 This occasion affords to the undersigned minister of foreign relations 
 of Bolivia the high honor of offering your excellency the assurances of 
 the esteem and respect with which he subscribes himself, 
 Your excellency's obedient servant, 
 
 DA]STOL NUNEZ DEL PBADO. 
 
 To his Excellency the Minister of Foreign Relations 
 
 of the United States of North America, Washington. 
 
 No. 46. 
 
 Mr. Adams to Mr. J5 carts. 
 
 [Extract.] 
 
 No. 59.] Legation of the United States, 
 
 La Paz, February 3, 1881. (Received April 26.) 
 
 Sir : Referring to my dispatch No. 57, of the 17th ultimo, I have the 
 honor to report that Dr. Nunez del Prado, of whose appointment as 
 minister of foreign affairs ad interim I had advised you, has now en- 
 tered upon the duties of that office in the full character. * * * 
 
 The news of the defeat of Dictator Pierola, of Peru, before Lima, and 
 the capture of that city, at first discredited but within the last days 
 fully confirmed, has so demoralized all classes and parties that opinions 
 as to the probable consequences here are as yet simply speculative, and 
 must remain so until the course of Peru in its defeat, and that of vic- 
 torious Chili, develops itself. 
 
 The foreigners here not represented by ministers, or consuls even, are 
 in the greatest terror since it has become known that Lima would have 
 been pillaged and plundered only for the energetic action of the diplo- 
 matic corps, backed by a powerful fleet ; and they fear that, if a Chilian 
 force should approach La Paz and the government be compelled to aban- 
 don the city, not only the soldiers of the enemy but also the lower classes 
 of the population here might commit excesses, directed of course mainly 
 against the property and persons of foreigners. 
 
 Should this eventuality occur, I hope to be able to save life and prop- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 63 
 
 erty in exerting myself to bring about a peaceful occupation of the city 
 by the enemy, and in organizing an armed city guard of the foreign 
 residents, in imitation of the course taken at Lima. 
 
 Allow me to add that I still remain without mail of any kind from the 
 United States. 
 
 I have, &c, 
 
 CHAELES ADAMS. 
 
 Ho. 47. 
 
 Mr. Adams to Mr. Evarts. 
 
 No. 60.] Legation of the United States, 
 
 La Paz, February 15, 1881. (Eeceived April 26.) 
 
 Sir: I have the honor to transmit herewith a copy of a diplomatic 
 circular from the Bolivian minister of foreign affairs, issued under date 
 of February 1, with translation, in which the position of Bolivia is de- 
 fined as influenced by the late defeat before Lima. 
 
 I do not think it necessary to add any opinion ofmine regarding this 
 circular and the very strong views of the Bolivian Government therein 
 expressed, as it quite corresponds with what I have foreshadowed in 
 former dispatches; I may, however, say that although Bolivia is appar- 
 ently exhausted and looked upon by Chili as an enemy not worth troub- 
 ling herself about, it may carry on for an indefinite period a guerrilla 
 warfare, which will be a continuous menace to Chili, and well calculated 
 to threaten its peaceful possession of the conquered territory, necessitat- 
 ing the support of a large standing army, while at the same time it will 
 no doubt turn Bolivia's commerce towards the Atlantic, via the La Plata 
 or Amazon River. At any rate, I consider Bolivia stronger to-day than 
 Peru, as it has more means of resistance and a more united people, and 
 has suifered less in the actual war. 
 
 The original document, addressed to the minister of Bolivia at Wash- 
 ington, I beg to inclose for transmittal to its address, as requested in the 
 accompanying note of the Hon. Dr. Nunez del Prado, and have the honor 
 to be, &c, 
 
 CHARLES ADAMS. 
 
 [Inclosure 1 in No. 60. — Translation.] 
 Mr. Prado to Mr. Adams 
 
 Ministry of Foreign Relations of Bolivia, 
 
 La Paz, February 1, 1881. 
 Sir : I have the honor to transmit to your excellency the original and a legalized, 
 copy of a diplomatic circular which this office directs to that of the United States, and 
 in which, by occasion of the new defeat which the allied armies have suifered, it again 
 expresses the unalterable intention of Bolivia to defend its rights and repel the ideas 
 of conquest entertained by Chili. 
 
 Meanwhile I beg of your excellency to please have it reach its high destination, and 
 accept the sentiments of my most perfect consideration. 
 
 DANIEL N. DEL PRADO. 
 
64 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosure 2 in No. 60. — Translation.] 
 
 Mr. Xunez del Prado to Mr. Evarts. 
 
 Ministry of Foreign Relations of Bolivia, 
 
 La Paz, February 1, 1881. 
 
 Sir: This department has had the honor to declare on more than one occasion to 
 the most excellent government of your excellency the unalterable intention of Bolivia 
 to defend its rights and to repel the ideas of absorption. and conquest entertained by 
 Chili. 
 
 This position, which my government believes to be the only one compatible with the 
 national dignity and American institutions, is borne out by the conviction that the 
 immoderate proportions which the war of the Pacific from day to day assumes do not 
 only affect the territorial integrity of the allied nations, but also the future self-gov- 
 ernment of the same and in a grave manner the permanent interests of America. 
 
 In defense of that idea Bolivia has sacrificed its most illustrious sons, and hopes 
 anxiously that each of the South American sections may hear its voice of protest against 
 the country which has brought about such bloody struggle. 
 
 In the mean while the allied armies, whose fortune has been adverse for so long, have 
 just suffered in the course of the conflict a new check in the neighborhood of Lima. 
 
 The loss of the last seaport of the alliance and the total disappearance of its squad- 
 ron places the government of the undersigned in the position to declare solemnly again 
 before the sister nations of the continent its determined and persevering resolution, 
 which it assumes in defense of its integrity, autonomy, and American principles. 
 
 The occupation of Lima, far from weakening the firm intentions of this republic, has 
 strongly wounded its patriotism, and to-day it finds itself resolved to sustain the 
 struggle with Chili to any sacrifice. 
 
 This unconquerable resolution is strengthened by the bitter remembrance of a fact 
 which will be condemned by the judgment of America. The war, begun with the forci- 
 ble usurpation of the coast province of Bolivia, does not mean a controversy between 
 the belligerent nations about a right more or less in doubt ; it is a combat over ques- 
 tions of serious importance perfectly antagonistic and at variance ; Chili, supported by 
 its naval power, raises the standard of conquest and of territorial annexation ; Bolivia 
 and Peru reject these doctrines, and offer towards the triumph of principles of modern 
 rights its blood and its treasures. 
 
 There is therefore an abyss between the propositions of both adversaries, and peace 
 with Chili, impossible for the present, can only be brought about by the absolute supe- 
 riority of the one and complete ruin of the other. 
 
 The justice of the cause which Bolivia defends is alone a powerful encouragement 
 and the consoling conviction that besides sacrificing itself to the great interests of 
 America, fires its martial enthusiasm and gives new vigor to its patriotism. 
 
 My government is persuaded that in accepting resolutely this situation it gives 
 proofs of its loyalty to its ally and the cause of principles. If the final result should 
 be adverse, there will remain for Bolivia the glory of having sacrificed itself for prin- 
 ciples and rights before accepting the offensive yoke of conquest. 
 
 These are, most excellent sir, the declarations which my government has the honor 
 to bring to the notice of the friendly nations who look with growing interest upon 
 the prolonged struggls of the Pacific, and to sustain which it relies upon the favorable 
 opinion of your excellency's most illustrious government. 
 
 This occasion affords the undersigned, minister of foreign affairs of Bolivia, the high 
 honor to offer to your excellency the pledges of esteem and respect with which he 
 subscribes himself, 
 
 Your obedient servant, 
 
 DANIEL NUSEZ DEL PRADO. 
 
 No. 48. 
 
 Mr. Ladislas Cabrera to Mr. Evarts. 
 
 [Translation. ] 
 
 Legation of Bolivia in the United States, 
 „ Washington, February 18, 1881. (Received February 19.) 
 Sir : In reference to the subject which I had the honor to broach to 
 your excellency, in the name of my government, on the 3d instantr— the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 65 
 
 conference which you were pleased to accord to me, at my request, hav- 
 ing then remained pending — I take pleasure in laying before your excel- 
 lency's government the latest intelligence that I have received from the. 
 Pacific touching the war subsequently to the occupation of Lima by 
 the Chilian army. 
 
 According to this intelligence the government of Peru had retired to 
 the departments of the south. Mr. Pierola, thePresident, having declared 
 that the seat of government is where the Executive is, Mr. Auelio Gar- 
 cia y Garcia had been appointed secretary-general. 
 
 The Government of Peru, on taking its departure for the department 
 of Arequipa, was firmly purposed to continue the war to the utmost 
 extremity. This information is contained in a telegram which has been 
 received by Mr. Ramon I. Garcia, charge" d'affaires of Peru near your 
 excellency's government. 
 
 General Baquedano, moreover, who is in command of the Chilian 
 forces which have occupied Lima, had addressed an official communica- 
 tion to the municipal government of the capital of Peru, apprising it 
 of the necessity of forming a board composed of the principal citizens, 
 that it might designate a provisional government with which an ar- 
 mistice might be concluded or some other arrangement made. The 
 municipal government had replied that, inasmuch as President Pierola's 
 government was still existing and had received its powers from the 
 nation, no municipal government or board of principal citizens could 
 arrogate to itself the right to appoint another government. 
 
 General Barquedano had likewise addressed a communication to the 
 supreme court of Peru, requesting it to re : enter upon the discharge of 
 its functions, but the court had replied declining to do so. 
 
 As to Bolivia, it is known that her army was to march against Tacna 
 under the command of General Campero, the President of the Republic, 
 and in c6ncert with a portion of the army of Arequipa, on the 15th of 
 last m nth. 
 
 It was also known that she had received a supply of arms, and ex- 
 pected to receive more, through a reliable channel. 
 
 All this shows that the occupation of Lima has not ended the war, 
 and that, so far from this being the case, the Governments of Peru and 
 Bolivia will continue it with greater activity than ever. 
 
 Nevertheless, some solution must be sought that will put an end to 
 the present state of things, and I firmly believe that, an earnest desire 
 existing to secure an honorable peace, and one that will meet all present 
 questions of the belligerent nations, as well as those of the future, some 
 combination acceptable to all parties is not impossible. 
 
 To this effect I beg leave to offer the plan contained in the documents 
 numbered 1 and 2, and herewith inclosed, to the consideration of your 
 excellency's government. 
 
 This plan, if carried out, would, in my judgment, meet all the diffi- 
 culties that have given rise to the war, they being simply the wealth of 
 Peru and Bolivia. 
 
 It would systemize the working and management of that wealth in 
 the interest of universal commerce; in the interest of the markets 
 which purchase guano and saltpetre; in the interest of the owners of 
 the territory containing these valuable substances, and in the interest 
 of modern civilization, which loves peace and detests war. 
 
 In a political point of view it would prescribe the right of conquest; 
 and as regards the stability of the South American nations, it would 
 firmly establish the uti possidetis principle, which is the foundation of 
 their nationality and independence, 
 S. .Ex. 79 5 
 
66 AFFAIRS IN CHILI, PERU, A> T D BOLIVIA. 
 
 Moreover, with regard to the manner in which the guano and salt- 
 petre deposits of Peru and Bolivia have hitherto been worked by Euro- 
 pean capital, long years of experience have shown that there is need of 
 a new element, capable of giving renewed vigor and a different form to 
 the industry and commerce of those republics. 
 
 With the most respectful and cordial sentiments, I am, &c, 
 
 LAMSLAS CABEEEA. 
 
 To His Excellency the Secretary of State. 
 
 [Document Xo. 1. 
 
 let. The organization of a company in the United States is suggested, for the pur- 
 pose of working the guano and nitrate deposits of Peru and Bolivia, the company to 
 consist of powerful capitalists, and the effective capital and organization to meet the 
 approval of the Governments of Chili, Peru, and Bolivia. 
 
 2d. The three governments to turn over to the company, for the period of 
 
 years, the entire and exclusive control and administration of the districts claimed by 
 Chili by right of conquest, as well as any guano deposits not so claimed, and to guar- 
 antee their pacific occupation by the company. 
 
 3d. The United States Government to guarantee that the company shall remain in 
 peaceable and undisturbed possession and administration of the districts to be desig- 
 nated in the contract. 
 
 4th. From the proceeds of the working of the guano and nitrate deposits — the com- 
 pany to retain such amounts as may be indicated in the contract, and to apply the 
 remainder in such proportions as Chili, Peru, and Bolivia may arrange by treaty. 
 
 First. To the war indemnity which may be agreed upon. 
 
 Second. To the payment of nitrate certificates. 
 
 Third. To the existing foreign loans of Peru. 
 
 Fourth. To the Peruvian Government. 
 
 Fifth. To the Bolivian Government. 
 
 5th. The company is to establish its own agencies in the various markets of the 
 world, conduct aud manage all sales of the guano and nitrate, and manipulate both 
 products within limits to be agreed upon; but the entire operations of the company 
 shall be subject to periodical report and inspection. 
 
 6th. The contract company to have authority to capitalize, in the form of a public 
 loan, the war indemnity and the nitrate certificates : and if it be found convenient 
 by the company, the Peruvian loans of Is* I) and 1672 may be included in a single con- 
 solidated issue ; the rate of interest, sinking fund, issue-price, commission, &c, to be 
 agreed upon in consultation with the three governments. 
 
 Should a loan be negotiated, Chili to be paid the full war indemnity at once, and to 
 release all claim and charges upon the guano and nitrate deposits and districts of 
 both Peru and Bolivia held by the company, but not to retire her obligation guaran- 
 teeing the pacific" occupation by the company of the districts confided to its adminis- 
 tration. 
 
 Washington, D. C, February IS, 1881. 
 
 [Document Xo. 2.] 
 
 FINANCIAL STATEMENT. 
 
 Tons. 
 
 Annual guano product of Peru 350,000 
 
 Annual nitrate product of Peru _ _ 275 000 
 
 Annual nitrate product of Bolivia _ 60000 
 
 £ t. d. 
 
 Total cost of the guano delivered to the buyers in Europe, per ton * 4 10 
 
 Lowest selling price j2 10 
 
 Cost of nitrate delivered in Europe to the buyers, per ton 9 00 
 
 Average selling price of nitrate for ten years, per ton 14 14 
 
 From the above data we have on guano a profit of per ton 7 10 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 67 
 
 Or on 350,000 per annum £2,625,000 
 
 Profits per ton on nitrate £5 14s. 0d., or on 335,000 tons per annum 1, 909, 500 
 
 Total annual income.... 4,534,500 
 
 Deduct 7-} per cent, for profits of the contract company and contingen- 
 cies on groBS product of £4,200,000 of guano and £4,924,500 of nitrate. 684, 337 
 
 We have net annual iucome 3, 850, 163 
 
 DEBTS. 
 
 Chilian war indemnity, say £6,000,000 
 
 Nitrate certificates 4,000,000 
 
 10, 000, 000 
 Suppose the issue of aloan to pay off the war indemnity and the nitrate certificates, say, 
 including discounts and commissions, £11,000,000. Five per cent, interest and 1 per 
 cent, sinking fund would require as annual service £660,000. The total net income 
 above calculated is £3,850,163. Deduct annual service of loan above estimated, 
 £660,000. Remainder, £3.190,163, applicable to the Peruvian loans of 1870 and 1872 
 and to the Governments of Peru and Bolivia. 
 Washington, D. C, February 18, 1881. 
 
 No. 49. 
 
 Mr. Adams to Mr. Hvarts. 
 
 No. 61.] Legation of the United States, 
 
 La Paz, February 24, 1881. (Received April 26.) 
 
 Sir : 1 have the honor to transmit herewith the correspondence which 
 has taken place between some Spanish subjects residing in La Paz and 
 myself, upon the question of a war-tax levied upon the people of Bolivia 
 by the late Congress and now about to be enforced. 
 
 You will perceive that I have refused to accommodate these gentle- 
 men, for aside from the consideration that the request for my official in- 
 terference should have come from the Spanish Government directly, or 
 its minister at Lima, I consider the tax referred to not one of an extraor- 
 dinary character as implied by the treaty mentioned in the petition, as 
 it was decreed by a Congress and imposed upon all inhabitants of the 
 Republic in proportion to their property. 
 
 A question of this kind upon application of American citizens resid- 
 ing in Mexico was at the time decided by the then minister, Mr. Corwin, 
 in the same spirit, and his action was approved by the Department, so 
 that although my reply to this — a test petition, which was to have been 
 followed by others — has obviated all further resistance on the part of 
 other foreigners. I feel that in advising Americans, even, to pay, I have 
 acted properly and in accordance with international comity. 
 I have, &c, 
 
 CHARLES ADAMS. 
 
 flnclosure 1 in No. 61. —Translation.] 
 
 La Paz, Febmary 11, 1881. 
 To his Excellency General Charles Adams, 
 
 Minister Resident of the United States of America, present : 
 Mr. Minister: We, the undersigned, Spanish subjects resident in this city, see our- 
 selves obliged to trouble your excellency and to request your assistance towards a 
 petition, which we are compelled to direct to the supreme government of this republic, 
 
68 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 •which petition, praying for an exemption from the extraordinary contribution now 
 actually demanded from Bolivian citizens, is attached to this note. 
 
 We request your protection, most excellent sir, on account of the known absence of 
 a diplomatic representative of His Majesty the King of Spain to a simple consular agent 
 in all the territory of the Republic, in which case the international practice of civilized 
 nations authorizes us to have recourse to the representative of a nation friendly to our 
 own, who cannot refuse to assist us if he is convinced of the justice of the reclamation. 
 In the present case your excellency will perceive that our request cannot be more 
 just, and the minister of the United States, a nation so friendly to Spain, cannot do 
 less than accede to our demand. 
 
 Your excellency will, therefore, be kind enough to present our petition to the su- 
 preme government near which you are worthily accredited, and to duly favor the 
 same, being assured that by so doing you will not only earn our gratitude, but also, as 
 may be imagined, that of the Government of his Catholic Majesty. 
 
 "With this motive we have the high honor to subscribe ourselves your excellency's 
 obedient and respectful servants, 
 
 MIGUEL SARAIZABEL. 
 
 JAIME DAVIN. 
 
 EDUARDO Q. MALDONALDO. 
 
 ANJEL BAJ1NETA. 
 
 CELSO COMELLAS. 
 
 DOMINGO DE ITURDE. 
 
 JUAN FORRENS. 
 
 JUAN RUDON. 
 
 LIZANDRO RUDON. 
 
 MIGUEL SOL. 
 
 JUAN CORES. 
 
 JOSE HERRERA. 
 
 [Inclosure 2 in No. 61. — Translation.] 
 
 Mr. President of the Republic : Asking a declaration of exemption of what they 
 mention, founded on the international laws they quote : 
 
 The undersigned, Spanish subjects resident in this city, through the organ of the 
 minister for foreign affairs, and by the mediation of the minister resident of the United 
 States of America, not having a diplomatic or consular agent of their own nation, 
 most respectfully submit to your consideration : 
 
 That the supreme Government of Bolivia, making use of its legitimate authority, 
 haB ordered the carrying out of a law of the late national convention, by which an 
 extraordinary forced war contribution was ordered to be levied, assessed equitably 
 and proportionately. 
 
 That for this purpose and in this department of La Paz, in which we are residents, 
 a commission of most honorable and competent persons has been appointed to assign 
 to each citizen the quota he Jias -to pay according to the judgment of said commission. 
 
 That in the distribution of the said forced war contribution and its assessment, not 
 only the inhabitants of this city, without distinction or exemption whatever, have 
 been included, but also the foreigners ; as the said honorable commission has not 
 weighed the powerful and imprescriptible exemptions established as a general rule 
 in favor of foreigners by international law, and fixed especially in our behalf by solemn 
 international treaties in full force to-day between Bolivia and Spain. 
 
 On this account we are obliged to address ourselves to the justification of the gov- 
 ernment of the republic, asking a declaration of exemption from all extraordinay war 
 loans or taxes, on account of our being Spanish subjects, protected not only by inter- 
 national law, but by the formal engagements of this nation towards ours. 
 
 The legal reasons on which we base our claim are obvious, and fearing to offend the 
 recognized knowledge and integrity of the government of the republic, we will briefly 
 and summarily mention just only in order to bring them to mind. 
 
 By the treaty made between this republic and His Majesty the King of Spain, at 
 Paris, on the 29th of August, 1879, ratified and exchanged in the same city on January 
 19, 1880, and promulgated as a.law of the republic in this city of La Paz on the 30th 
 of August last (third article), are re-established in full force the stipulations of the 
 treaty made between the said nations on February 12, 1861. The eleventh article of 
 said treaty says literally : " Neither Bolivians in Spain, nor Spaniards in Bolivia, are 
 obliged to serve in the army, navy or militia, and they are exempt from all extraordi- 
 nary impost tax or loan, and in the ordinary taxes which they pay on account of their 
 industry, commerce or landed property, they must be treated just as the citizens or 
 subjects of the most favored nation." One cannot find a more clear, peremptory, and 
 
AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 69 
 
 » 
 reciprocal exemption in favor of the citizens of both states, living in each other's 
 territory, and which involves their exemption from all forced or extraordinary taxes 
 (of war) in strict compliance with the doctrines of international law. 
 
 And even if this positive law referred to did not exist — a law that, like all interna- 
 tional treaty law, is supreme and modifies even the constitution of the state — it is 
 enough to legitimate our claim by stating that the practical jurisprudence of all civil- 
 ized nations and the doctrine established by all the authorities on the. subject are all 
 in our favor. 
 
 There is no need to quote Vattel, Pradier, Fordere', Fiore", Jenner, Block, Bello, and 
 so many other eminent writers, who unanimously sustain this doctrine ; but we will 
 refer to all the treaties of amity and commerce in force to-day between different nations, 
 all of which establish the doctrines of exemption with rigorous uniformity. 
 
 To insist on this would be tiresome and superfluous. We are sure that the govern- 
 ment has had no doubt about it, and that, taking duly into account our petition, the 
 government will modify the proceedings of the assessing commission, and that it will 
 proclaim a doctrine which is a law of ihe nation and attested by a sacred agreement, 
 by declaring that the subjects of His Majesty the King of Spain are not obliged to 
 pay now, and are not subject to any other tax of the kind, either of blood, money, or 
 otherwise. 
 
 We expect our petition will be duly and justly appreciated, and granted as it is 
 founded on justice. 
 
 La Paz, 11th February, 1881. 
 
 MIGUEL GARAZAIBAO. 
 
 JAIME DAVIN. 
 
 MIGUEL SOL EDUAEDO Q. MALDONALDO. 
 
 CELSO COMELLAS. 
 
 ANJEL BAJINETA. 
 
 DOMINGO DE ITUEBE. 
 
 JUAN FORRENS. 
 
 JUAN KEEDON. 
 
 LIZANDEO EUDON. 
 
 JOSfi HERREEA. 
 
 JUAN COSES. 
 
 [Inclosure 3 in No. 61.] 
 
 Legation of the United States, 
 
 Cotaiia, February 18, 1881. 
 
 Messrs. Sarazabal, Devin, Maldonaldo, and others, subjects of Spain in La Paz, 
 Bolivia. : 
 
 Gentlemen: I have the honor to acknowledge the receipt of your communication 
 of the 11th instant, in which you ask me to transmit to the Government of Bolivia, in 
 an official manner, a document signed by the Spanish subjects of La Paz, praying for 
 an exemption from the forced loan lately decreed, and in which you ask my help and 
 protection, basing your request upon the fact that Spain has no representative of its 
 own near the Government of Bolivia, and that you feel yourselves authorized by com-, 
 mon international usage to call upon me as tbe representative of a friendly nation. 
 
 In reply to your polite and dignified letter, I am sorry to be obliged to inform you 
 that I cannot comply with your request, inasmuch, by the established usage of nations, 
 and in compliance with the rules made for the ministers of the United States by its 
 government, it is required that the request for diplomatic protection of subjects of 
 another country by any minister of the United States should come from the govern- 
 ment of such country, and should be acknowledged by the government where both 
 reside. 
 
 In cases where the life, liberty, or property of a foreign subject or citizen, not rep- 
 resented, has been in danger either from local persecution or foreign invasion, it has 
 been customary for such foreigner to claim the help and protection of the representa- 
 tive of a friendly nation, and without a previous request from his own government and 
 the usual formalities it has been accorded freely and fully, especially by ministers of 
 the United States, at different times and occasions, but this case, involving as it does 
 no act of persecution or injustice even, but simply the rights and duties of foreigners 
 under established treaty stipulations, into a discussion of which I am not prepared to 
 enter, offers no reason for my official interference, especially as I cannot deny that a 
 sovereign natiqn has the right, even in time of war, to levy extraordinary taxes, not 
 upon the person, but the property and business of its inhabitants, and as long as no 
 distinction is made in the assessment of this tax, called strangely, for what reason I 
 know not, a forced loan (emprestito forzoso), although legally authorized by a constitu- 
 
70 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 tntional Congress of the republic, I do not feel warranted in throwing obstacles in 
 the way of the government, and did and shall advise my own countrymen to pay the 
 said tax. 
 
 I have the honor, in returning to you, gentlemen, the document referred, to assure 
 you of my highest respect and consideration, and to subscribe myself, 
 Your vdry obedient servant, 
 
 CHARLES ADAMS. 
 
 No. 50. 
 
 Mr. Cabrera to Mr. Blaine. 
 
 [Translation.] 
 
 Legation of Bolivia in the United States, 
 
 Washington, May 9, 1881. (Received May 9.) 
 
 Most Excellent Sir: In the month of February last I had the 
 honor to have a verbal conference with Mr. Evarts, then Secretary of 
 State, with regard to the urgent necessity of putting an end to the long 
 and disastrous war between Peru, Bolivia, and Chili. 
 
 For the purpose of reaching some practical result, I proposed, after 
 some preliminaries, the bases of a peace contained in my note of Feb- 
 ruary 18th and the two inclosures therewith transmitted. 
 
 His Excellency Mr. Evarts, although he considered the plan submitted 
 to his consideration as possessing a high degree of importance, had not 
 time to give it the necessary attention, owing to the change' in the ad- 
 ministration of the United States Government, as he had the kindness 
 to state in his note of March 5. 
 
 I duly reported what had been done to the Governments of Bolivia 
 and Peru, calling their attention at the same time to the necessity of 
 proposing those bases of a peace to Chili as their ultimatum. 
 
 Since that date the character of the war has not changed much, not- 
 withstanding the occupation of Lima by the victorious forces of Chili. 
 In the south and north of Peru resistance is still continued, and in 
 Bolivia public spirit has been invigorated by the news of the occupation 
 of Lima, all of which renders it probable that the war will be intermi- 
 nable. 
 
 This view is confirmed by a telegram which was published by the New 
 York Herald in its issue of the 6th, in which it was stated that the King 
 of Holland had authorized his representative to tender his (the King's) 
 good offices, in conjunction with France, England, and Italy, to the three 
 belligerent nations for the restoration of peace. 
 
 I cannot believe, under these circumstances, that your excellency's 
 government, which during the course of this war has manifested so deep 
 an interest in the restoration of peace among the nations of South 
 America, will permit foreign powers to claim the merit of having re- 
 stored peace, while the plan which I had the honor to propose is still 
 pending before it. In presenting that plan my object was manifold, viz, 
 to bring about an honorable peace; to strengthen and develop the won- 
 derful productive power ot North America by opening new and profita- 
 ble markets to its commercial activity ; to secure to your excellency's 
 government that influence in South America which rightfully belongs 
 to it by reason of its proximity, its civilization, and the similarity of its 
 institutions; and, finally, to satisfy the pecuniary demands of Chili, the 
 conqueror of Lima. 
 
 In order to secure such great benefits to humanity, to whom war must 
 
AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 71 
 
 ever be repugnant; to bring two continents of the new world into imme- 
 diate contact by closely uniting them in the bonds of industry and com- 
 merce; and, finally, to secure even the rights of the conqueror (although 
 they are improperly so called), what is it that the plan proposed by me 
 asks of your excellency's government? 
 
 Nothing but the fulfillment of an obligation, which is to be common 
 to all the governments, viz, to guarantee that capital invested by citi- 
 zens of the United States in the management and working of the guano 
 and nitre deposits of Peru and Bolivia shall not be disturbed in its in- 
 dustrial application. 
 
 I take the liberty to submit these passing reflections to your excel- 
 lency, that they may receive attention when you may see fit to consider 
 my plan, and to secure a new title to glory to your government by re- 
 storing peace in South America, and by opening up new sources of 
 wealth to North American labor and activity. 
 
 I purposely avoid presenting any further considerations, but I feel 
 sure that the foregoing will not be disregarded by your excellency. 
 
 With sentiments of true respect and high esteem, I am your excel- 
 lency's obedient servant, 
 
 LADISLAS CABEEEA. 
 
 No. 51. 
 
 Mr. Adams to Mr. Blaine. 
 
 No. 75.] Legation of the United States, 
 
 La Paz, June 8, 1881. (Eeceived July 18.) 
 
 Sib : Eegarding the political situation of Bolivia, I have the honor to 
 report that everything remains in statu quo. . The Congress of the coun- 
 try has been called to meet in extra session on the 13th of this month, 
 but it is simply expected to approve the measures of the government 
 since its adjournment last November. President Oampero s'eems to be 
 established firmer in his seat than ever, and his policy of quietly strength- 
 ening the army, drilling and equipping it, and of getting the national 
 guard ready for active service, if necessary, seems to meet the approval 
 of the country, based as this policy is upon the expressed will of the 
 people to resist any invasion Chili might contemplate. 
 
 Meanwhile, the visit of President Pi^rola to La Paz has strengthened 
 the alliance between Peru and Bolivia, and I do not believe that one will 
 make peace without the co-operation and approval of the other. No- 
 body here so far acknowledges the government of Garcia Oalderon at 
 Lima while it is upheld by Chilian bayonets. While an invasion from 
 Chili in the near future is entirely improbable, as Chilian soldiers could 
 never endure an Andean winter, and so no immediate fighting is ex 
 pected, it is still hoped here that our government may be pleased to 
 put an end to the war, and in the interest of commerce, humanity, re- 
 publican institutions, and American traditions and ideas may compel 
 Chili, if necessary, to grant to Peru and Bolivia honorable terms of 
 peace, instead of holding both countries by the throat, so to speak, by 
 demanding continuous contributions and excluding them from all com- 
 merce on the sea. 
 
 Inasmuch as under these circumstances my presence here can be 
 spared, and unless next mail brings me orders to the contrary, 1 shall 
 
72 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 leave here on the 15th instant en route to the United States, and I may 
 expect to reach Few York on the steamer following the one which brings 
 this dispatch, and shall report in person at Washington immediately 
 after my arrival. 
 I have, &c, 
 
 GHAELES ADAMS. 
 
 Xo. 52. 
 
 Mr. Blaine to Mr. Sunez del Prado. 
 
 Department of State, 
 
 Washington, June 14, 1881. 
 
 Sir : I have the honor to acknowledge the receipt of your excellency's 
 note of February 1 last, setting forth the reasons which animate and 
 control the Government of Bolivia in resisting to the last extremity the 
 encroachments of the Chilian Government. 
 
 The people of this country have watched, not withoixt the deepest 
 interest, the continued struggle between the three nations on the Pa- 
 cific, whose institutions and forms of government are allied to their own, 
 in the sincere hope that the differences of whatever nature which en- 
 gendered the present conflict might be amicably and satisfactorily 
 adjusted, and the perpetuity and prosperity of those republics guaran- 
 teed. 
 
 Still cherishing this confident hope, I bid you accept, sir, in the name 
 of the Government and people of the United States the assurances of 
 my highest consideration. 
 
 JAMES G. BLAU> T E. 
 
 Xo. 53. 
 
 Mr. Adams to Mr. Blaine. 
 
 Xeav York, Xovember S, 1881. 
 
 (Eeceived Xov. 15.) 
 
 My Dear Mr. Secretary: I fear that it will be almost impossible 
 for me to have another interview with you in relation to South American 
 and Bolivia affairs, as to-morrow will be my last day before I sail, and 
 you are occupied with so many important affairs, bat before I go I would 
 ask you if only in a brief memorandum to outline for me a course of 
 action which I would think you and the government would approve. 
 
 I can assure you that Bolivia perhaps to-day is a stronger factor in 
 the war with Chili than Peru, and that it only awaits my return and 
 what word I bring with me from you as to the intentions of this govern- 
 ment towards the belligerents to shape its actions for the future. 
 
 You are aware that the last Congress of Bolivia resolved to ignore any 
 government in Peru until it was firmly established and recognized, and 
 I suppose that any instructions I may receive and bring to President 
 Campero will influence him and the government as to what course he 
 will pursue ; at any rate, whatever your policy may be, will, I am sure, be 
 almost considered a command, for, in accordance with the Monroe doc- 
 trine, Bolivia will not call in the assistance of any other nation as long 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA 73 
 
 as it may be assured of the sympathy of ours and the rejection on your 
 part of the lust of conquest so clearly shown by Chili. 
 
 On that point I should desire some instructions, and I would ask to be 
 allowed to take them with me, not only for Bolivia's sake but for my 
 own, so that I may be prepared to act with discretion and decision in 
 case of emergency. 
 
 Hoping that you will not let me depart without this, and if possible 
 to grant me another irfterview, 
 I have, &c, 
 
 CHAELES ADAMS. 
 
 2.-CHILI. 
 
 No. 54. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No 83.] Legation of the United States, 
 
 Santiago, Chili, February 20, 1879. (Received March 26.) 
 
 Sir : Chili is involved in another dispute concerning her boundaries. 
 It is with Bolivia now, and concerns the territory on the Pacific coast 
 lying between the 23d and 25th degrees of latitude. Prior to 1866, 
 jurisdiction over this territory was claimed by both of these govern- 
 ments, but on December 9 of that year they promulgated a treaty which 
 had for its purpose a settlementof the dispute. In substance, the treaty 
 provided that the 24th degree should constitute the line of division, but 
 that all guano deposits within the territory prior thereto in dispute, as 
 • also all duties which might be derived from the exportation of minerals 
 therefrom should be equally divided between the two countries. It 
 soon became evident, however, that the treaty had failed to accomplish 
 the purpose for which it was intended, and on the 6th of August, 1874, 
 they celebrated another. 
 
 In this the 24th degree was reasserted as the line of division, and 
 each government relinquished its right, within the jurisdiction of the 
 other, to duties arising from exportation of minerals. They agreed, 
 also, that within the hitherto disputed territory neither government 
 should, for the term of twenty-five years, impose upon the exportation 
 of minerals a higher duty than was then provided for, and that neither 
 government should, within said territory, tax the citizens, industries, or 
 capital of the other, of whatever character, in excess of that then fixed 
 . by law. 
 
 The country referred to as the disputed territory is in the heart of 
 what is known as the desert of Atacama, and was regarded, until about 
 the time of the execution of the first treaty, except for the deposit of 
 guano at Majillones, its northern boundary, as of little or no value. 
 The discovery of vast nitrate dex>osits about that time, however, in that 
 
74 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 i 
 part of the territory set apart to Bolivia by the treaty soon brought it 
 into prominent notice, and companies were organized for the purpose of 
 developing that industry. The business seems to have been monopo- 
 lized by a corporation known as "El Oompania de Salitres y Ferrocarril 
 de Antofagasta," a company composed mainly of gentlemen of means, 
 citizens of Chili. It is claimed in behalf of the company that it had full 
 authority from the Bolivian Government for the prosecution of its busi- 
 ness, and that it relied upon the good faith of Bolivia in making its in- 
 vestments. It is claimed that its investments now exceed $4,000,000. 
 It has constructed a railroad 40 miles into the interior, running through 
 the nitrate deposits, and Antofagasta, the shipping point for the nitrate, 
 aud the location of the principal works, has developed into a city of 
 nearly 10,000 people. 
 
 In February of last year the Bolivian Congress enacted a law exacting 
 a tax often cents a quintal on all exportations of nitrate, and from this 
 has arisen the present difficulty with Chili. The Chilian Government 
 promptly protested against the execution of this law, claiming that it 
 was in direct conflict with the guarantees of the treaty of 1874. The 
 law was allowed to remain dormant for several months, but no action 
 was taken looking to its revocation. 
 
 A short time since, however, the Bolivian authorities notified the 
 company at Antofagasta that the law was to be executed, and that the 
 amount which was due from it on account of shipments made since the 
 passage of the law was something in excess of $90,000. The Chilian Gov- 
 ernment protested anew* and caused Bolivia to be informed that if she 
 insisted upon executing the law Chili would regard the treaty as ab- 
 rogated, and would proceed to assert her right of dominion to the ter- 
 ritory claimed by her prior to 1866. Notwithstanding this threat the 
 works at Antofagasta were levied upon and notice was given that they 
 would be sold ; whereupon, on the liith instant, the Chilian minister at 
 La Paz was instructed by telegraph to demand his passport, and forces 
 were immediately forwarded by water with instructions to take posses- 
 sion of the territory on the coast as far north as the 23d degree of lati- 
 tude. On the 14th the Chilian forces occupied Antofagasta without 
 firing a gun, aud the disputed territory is all now held by Chilian troops. 
 
 The course of the government here meets with a hearty approval from 
 all classes. The movement was an exceedingly popular one. It is doubt- ' 
 ful, indeed, if the administration could have taken another course and 
 sustained itself. There is much anxiety concerning the course which 
 Peru is likely to take. That herpeople strongly sympathize with Bolivia 
 in this affair is undoubtedly true, and it is feared by some that the gov- 
 ernment may be driven into an alliance with Bolivia. I think the fear is 
 well grounded. 
 
 The Chili Government is endeavoring to prepare itself for any emer- 
 gency. The naval force has all been sent to the north and troops are 
 being forwarded as rapidly as possible. 
 
 It is understood that Congress will be convened in extraordinary ses- 
 sion about the 10th of March. 
 
 I forward you by this mail a copy of a pamphlet entitled the "New 
 question of Chile with Bolivia," which was sent to me from the foreign 
 office. Also a copy of the " Diario Official," which contains a sort of mani- 
 festo from the government under the head of "El Conflicto con Bolivia." 
 I have, &c, 
 
 THOMAS A. OSBOEN. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 75 
 
 No. 55. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No. 86.] Legation of the United States, 
 
 Santiago, Chili, April 3, 1879. (Eeceived May 8.) 
 
 Sir: Following the events related in my dispatch No. 83 came the 
 proclamation of the President of Bolivia, on the 1st of March, declaring 
 war against Chili, and providing for the confiscation of the property of 
 Chilians. Upon the receipt of this proclamation here, the Chilian land 
 forces were ordered to advance upon Calama, and the naval force was 
 directed to occupy Cobija and Tocopilla. The two latter places are the 
 only Bolivian ports north of the 23d degree, and the former is a town of 
 about five hundred people, in the valley of the Loa, some hundred miles 
 from Antofagasta, and is supposed to have some strategic importance. 
 
 The two ports were taken possession of without trouble, but the sec- 
 retary of war, who was in the vicinity, reports that at Calama the Chili 
 troops were seriously resisted. 
 
 A number were killed on both sides, but the Chilians triumphed, and 
 the Bolivians who were not killed were taken prisoners. I judge, how- 
 ever, that there were not more than five hundred men engaged, all told. 
 This is the only engagement of which advices have been received here. 
 
 Peru is giving the government and people here much more concern 
 just now than is Bolivia. 
 
 Soon after the taking of Antofagasta the Government of Peru sent 
 here an ambassador extraordinary, SeHor Lavalle, with instructions to 
 tender the good offices of his government in the settlement of the dis- 
 pute with Bolivia, and to urge, earnestly, an amicable arrangement. 
 Senor Lavalle was kindly received by the government, but among the 
 people there has been an almost universal expression of displeasure at 
 his coming. From day to day the newspapers have been filled with 
 reports from the north tending to show that Peru is preparing herself 
 for a struggle with her rival, and charges have been freely made that the 
 ambassador was sent here merely for delay, to enable his government 
 to prepare itself for the contest. This idea has taken a strong hold upon 
 the public mind, whether there be foundation for it or not. 
 
 I was invited to an interview with the minister of foreign relations, 
 and attended for that purpose at his official quarters, on the 29th ultimo. 
 Among other things he informed me that Chili was not satisfied with 
 the attitude of Peru, and that Mr. G-odoy, their minister at Lima, under 
 instructions from his government, had demanded an answer from the 
 Peruvian G-overnment as to its purpose in the dispute between Chili 
 and Bolivia. The answer was not, he said, satisfactory. In it was 
 embodied an acknowledgment that there had existed for several years 
 a secret alliance between Peru and Bolivia, the effect of which would be 
 to force Peru into the conflict against Chili. 
 
 I told Mr. Fierro, the foreign minister, that I was sure that my gov- 
 ernment would be exceedingly sorry to hear of a war between these 
 countries, and I urged him to neglect no opportunity to settle the dis- 
 pute amicably. In response to a suggestion from him, I remarked that 
 I did not doubt that the United States G-overnment would cheerfully 
 lend its efforts to an amicable arrangement of the difficulties if the gov- 
 ernments engaged in the controversy should request it to do so, but 
 that I trusted that they would be able to arrange it among themselves. 
 
 From the manner of the minister rather than the matter of his con- 
 
76 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 versation, I discovered that he felt much interested in the response, 
 and it would not surprise me to learn that an effort was being made to 
 induce these countries to join in a request to the United States to assist 
 them in the settlement of their dispute. 
 
 However his language concerning the reply of Pern to Mr. Godoy led 
 me to believe that war was almost certain to follow. 
 
 I had infonnp.fl the minister some time previous of my intention to 
 avail myself at a convenient time of the privilege granted me by my 
 government to visit the United States, and he now expressed a very 
 earnest wish, in behalf of his government, that pending these difficulties 
 I should remain in Chili. He seemed satisfied with my answer. 
 
 Minister LaValle is still in Santiago, and it is barely possible that 
 Peru may yet remain out of the conflict. I don't regard it as probable, 
 however. 
 
 Neither of the countries is prepared for war, and where the money is 
 to come from is more than I can tell. The probable condition of their 
 credit at its close does not present' so difficult a problem. 
 
 The navies of Peru and Chili are about equal in point of strength, 
 and there cannot be much difference in their laud forces. The Chilian 
 army, the minister informs me. consists of nine' thousand men, with a 
 reserve force, called national guards, of fifteen thousand more. The 
 national guards are, I judge, not unlike our State militia. 
 
 The minister informed me that the Chilian legation in Washington 
 was about to be supplied with a minister, and that that post would be 
 filled by Don F. L. Asta-Buruaga. Mr. Asta-Buruaga formerly repre- 
 sented ChUi at Washington in the same capacity. He has a high regard 
 for our country, and I look upon his selection as a fit one. He will 
 probably leave for the United States next week. 
 
 I enclose some skps cut from an English paper containing an article 
 translated from the "Diario Official" of Santiago, upon the -'Desert of 
 Atacaina and its resources." The article will repay perusal.* 
 I have, &c 
 
 THOMAS A. OSBOEX. 
 
 Mr. Osboni to Mr. Erarts? 
 
 Xo. S3.] Legation op the United States, 
 
 Santiago, Chili, April 4, 1379. (Received May 3.) 
 
 Sir: I have but just time before the closing of the mad to say that 
 the friendly relations between ChUi and Peru have been broken off. 
 The Peruvian special envoy received his passports last night, and soon 
 after left on a special train for his home. To-day it is officially anuouueed 
 that the amity and friendship heretofore existing between these coun- 
 tries is at an end. The Official Gazette promises to-morrow a •' Memo- 
 randum "' of the causes which have brought about this unfortunate result. 
 Suffice it to say that the grievance of Chid is the aUeged secret alliance 
 between Peru and Bolivia, and the apparant preparation making by 
 Peru for war. 
 
 Congress has conferred upon the President extraordinary powers. He 
 is authorized to increase the army without limit. 
 I have. &c, 
 
 THOMAS A. OSBOBif. 
 
 * The inclosure is long and will t>e found printed in Foreign Relations, lr?9, p. 162. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 77 
 
 No." 57. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No. 89.J Legation of the United States, 
 
 Santiago, Chili, April 10, 1879. (Received May 16.) 
 
 Sir : As will be seen from the inclosed translation of a note received 
 by me from the minister of foreign relations, war was formally declared 
 against Peru on the 5th instant, and on the same day the port of Iquique 
 was placed in blockade by the Chilian squadron. 
 
 The government promises a statement of the reasons for -its action, 
 for the information of friendly governments, in a few days. Awaiting 
 it, I inclose a slip from a newspaper containing the "memorandum," 
 published in the "Official Gazette" simultaneously with the declaration 
 of war. 
 
 The army is being rapidly increased, and there is apparently no abate- 
 ment in the enthusiasm. 
 
 Iquique is the great niter depot of Peru, and is situated about midway 
 in the province of Tarapaca, from north to south. This province extends 
 to the Bolivian frontier on the north, and is supposed to contain almost 
 inexhaustible wealth in its niter and guano deposits. If Chili succeeds 
 in getting possession of Tarapaca, she will, I judge, insist upon holding 
 it. An intelligent gentlemen with whom I have conversed upon the 
 subject, and who formerly lived in Tarapaca, estimates the value of its 
 niter deposits alone at four hundred millions of dollars. 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 [Inclosure in No. 89. — Translation-,] 
 
 Mr. Fierro to Mr. Osborn. 
 
 Republic op Chili, Ministry op Foreign Relations, 
 
 Santiago, April 9, 1879. 
 SeSor: I have the honor to inform you, pursuant to special orders received from his 
 excellency the President of the Republic, that on the 5th instant war was declared 
 against the Government of Peru. 
 
 The reasons which obliged my government to take that hard but necessary resolu- 
 tion will be in a short time communicated to you. 
 
 At the same time ft becomes my duty to announce to you that on the date above 
 indicated the maritime forces of Chili placed in blockade the port of Iquique. 
 
 In requesting that you will please place these facts within the knowledge of your 
 government, it affords me pleasure to offer to you the assurances of high consideration 
 with which, 
 
 I am, &c, 
 
 ALEJANDRO FIERRO. 
 
 No. 58. 
 Mr. Osborn to Mr. Evarts. 
 
 No. 92.] Legation of the United States, 
 
 Santiago, Chili, April 19, 1879. (Received May 27.) 
 Sir: By this mail I have the honor to forward a copy of the manifesto 
 of the Chilian Government, addressed to friendly nations, in justification 
 of the declaration of war against Peru, in Spanish, as also a copy of the 
 Chilian Times, containing a translation of the same in English. 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
78 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosure ill dispatch Xo. 92.) 
 
 MANIFESTO OF THE CHILIAN GOVERNMENT TO THE EEPKESENTATIVES OF FRIENDLY 
 POWERS, WITH REFERENCE TO THE DECLARATION OF WAR AGAINST PERU. 
 
 ^Translated from the Diario Uncial. J 
 
 Ministry of Foreign Affairs, 
 
 Santiago, April 12, 1879. 
 
 Mr. Minister : Annexed to the present note you will find a copy of the official ga- 
 zette of Chili, from which yon will learn the authority conferred on my government 
 by the high authorities of the state to declare war against Peru, and couduct it to an 
 end .by all the means recognized by the rights of nations, and with all the resources 
 at the disposal of the country. 
 
 By order of his excellency the President of the republic, I fulfill the duty of inform- 
 ing you of the grave .causes that have led to the formation of this unavoidable though 
 lamentable resolution, which breaks old ties that Chili has always endeavored to 
 strengthen. 
 
 The government, in whose name I have the honor of speaking, flatters itself with 
 the hope that the calm judgment of that represented by your excellency will duly 
 appreciate the conduct that Chili has observed in this emergency — as foreign to her 
 character and tradition as contrary to her dearest interests. 
 
 The especial characteristic of this country, the constant tendency of its foreign pol- 
 icy, and even its social and economic necessities, have withdrawn it from all spirit of 
 adventure, and have stimulated it to maintain the most friendly relations with all 
 nations. Chili lives by peace and industry ; requires as a prime element of its pros- 
 perity, foreign immigration ; and possessing a vast territory only partially fertilized 
 by the rude labor of its sons, requires more than any people foreign and internal tran- 
 quillity. 
 
 The latter has been obtained, thanks to the frank adoption of a system by which all 
 the public powers emanate from the national vote ; and clearly is it proved, by the 
 history of many years, that it has always endeavored to avoid conflict with foreign 
 nations. The republic can show with legitimate pride that it has never been sparing 
 of its blood or resources whenever it has been embarked in a noble cause, and much 
 less when to it have been united the interests of this continent ; but it can also declare 
 with no less satisfaction that, though always ready to defend outraged rights, it has 
 systematically avoided all provocation, even under circumstances that would have au- 
 thorized it. Ouly a few months ago it has given a new proof of the traditional char- 
 acter of its policy, by submitting to the honorable solution of arbitration an old and 
 vexed question it sustained against a neighboring power, although it had to yield to 
 the uncertainty of a sentence, rights to which the national sentiment attached great 
 importance. From this it will be easy for your excellency to deduce that Chili, in for- 
 getting its historic conduct and the necessities of its situation, has done so only by 
 the irresistible force of evident justice and in obedience to the clearest demands on its 
 dignity. 
 
 My government very recently complied with its duty in manifesting to those with 
 whom it has the pleasure to maintain cordial relations, the circumstances which 
 obliged it to declare at an end the treaty existing with Bolivia, a&d to occupy the ter- 
 ritory lying between parallels 2:i and 24 S. lat. 
 
 Subsequently, and without previous declaration of war, the President of Bolivia 
 issued a decree emanating from'his single will, by which he expelled Chilian citizens 
 from that state, confiscated their property, and sequestrated the products of the indus- 
 try and capital of this country. 
 
 It is unnecessary to recapitulate the bonds uniting the two nations, confirmed by 
 solemn treaties, never respected by our neighbors ; unnecessary to repeat that since 
 1866 till the occupation of Antofagasta on February 14 of this year, my government, 
 by a series of concessions more or less valuable, had arrived at the last sacrifice in 
 order to maintain peace. 
 
 If Chili has been forced into war, it is not through its own act, but is the unavoid- 
 able consequence of the extraordinary conduct observed by the government of La 
 Paz. This, on one hand, declined to fulfill the treaty of i.8/4, in virtue of which, 
 and by whose sole title, it occupied conditionally the territory whose possession was 
 transferred by the treaty mentioned. On the otlier it refused the honorable resource 
 of arbitration, pretending to constitute itself absolute judge of the interpretation and 
 practical application of the rights and duties established by the mutual sanction of 
 both nations. 
 
 From whatever point of view the severest impartiality may consider the irregular 
 proceedings of the Bolivian authorities, we feel convinced that the friendly powers 
 whose opinion we so much esteem will recognize, in homage to the strictest justice, 
 that the situation imposed on Chili by a will not its own, indicated one sole course as 
 possible in protection of its decorum. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 79 
 
 My government nevertheless, in spite of antecedents that perhaps should have indi- 
 cated a different course, -wished to limit itself to pointing out the natural consequences 
 of the rupture of the treaty of 1874. If it he undeniable that before the treaty of 
 1866 the territory comprised between parallels 23 and 24 belonged to Chili by right 
 and by the constant exercise of veritable possession ; if it be true that it was ceded to 
 Bolivia by the treaty of 1874 on the emphatic condition that no new taxes should be 
 levied on Chilian industry and capital ; and if, in line, it is the melancholy truth, 
 proved by pnbjic documents of the Bolivian Government, that it, turning a deaf ear 
 to all remoustrance, ceased in truth to impose taxation, but rendered illusory the right 
 of property recognized by its own laws — it was necessary on the part of Chili to re- 
 place things in the state in which they stood before the extraordinary violation of the 
 treaty mentioned. 
 
 This violent act of Bolivia was necessarily followed by the occupation of the con- 
 sideration ceded, on the ground of nonfulfillment of the conditions. This sufficiently 
 explains the landing of our troops at Antofagasta, so that in attributing to this the 
 character of a belligerent act, the antecedents of the conflict are deliberately disre- 
 garded. In order to avoid the occupation, Bolivia possessed the means open to the 
 commonest honesty — viz, promising to respect the treaty of 1874. This would have 
 been the course of a civilized nation, for no reasoning, no> protest, can defend the un- 
 just sentence Bolivia claimed to give in the question; to retain the territory it owed 
 to the liberality of Chili, and at the same time to break the fundamental condition of 
 the concession. 
 
 It is painful, but at the same time indispensable, to bring to the memory of friendly 
 powers another evident reason that my government could have wished not to reveal, 
 out of respect to a state of the same origin. Official documents, and still more, the 
 private history of Chilian industry on the coast between 23° and 24° S. lat., are wit- 
 nesses that cannot be refuted to the fact that since 1866 to the date of the occupation 
 of Antofagasta, the Bolivian Government appears to have conceived, organized, and 
 put in practice an inflexible system of persecution against the development of Chilian 
 enterprises which have been the only origin and the principal element of the wealth 
 of that locality, never suspected and never stimulated by the private industry or na- 
 tional protection of Bolivia. 
 
 The capital of this republic, and that developed under the protection of our laws 
 without distinction of nationality, being embarked in costly speculations, my govern- 
 ment could not view with indifference the adoption by Bolivia of special measures 
 tending to place Chilians in an exceptional situation. Soon after the treaty of 1866, 
 and then after that of 1874, the painful certainty was realized that in Bolivia no idea 
 existed of individual guarantees. Taxes were imposed under -the pretext of muni- 
 cipal rates; disgiaceful punishments were inflicted by the authorities on citizens of 
 this republic : and finally, a Chilian enterprise for the working of nitrate beds, author- 
 ized by the Bolivian Government, afforded a pretext for a law irreconcilable with the 
 most essential stipulation of the treaty of 1874. 
 
 My government could not and ought not abandon its citizens to the caprice of that 
 of Bolivia, and less to the discretion of its subalterns ; and the official documents in- 
 serted in the reports of the ministry of foreign affairs since 1866 render unnecessary 
 any additional proof that since then till now it has been impossible to restrain the 
 action of the Bolivian authorities. 
 
 These precedents showed sufficiently that the occupation of Antofagasta was urgently 
 required, through the violation of the treaty; and my government found itself under 
 the necessity of ordering it, for the protection of interests and persons threatened by 
 measures which respected no rights whatever. 
 
 The occupation effected on February 14 could not be considered as a declaration of 
 war, and still less as a threat on the part of my government against the sovereignty 
 of Bolivia. Nor was it reasonable to suppose that the cabinet of Santiago intended 
 to modify the geographical limits of the neighboring nations. In this conflict, which 
 never would have arisen if even a show of respect had been evinced for the spirit and 
 letter of treaties, what this republic has aimed at from the beginning, with the great- 
 est frankness, was to defend its national rights and protect private property. Before 
 1866 we possessed effectively up to the parallel 23. By the treaty of that year we ac- 
 cepted the exploitation in common up to parallel 25; and subsequently we fixed the 
 limits of Chili at 24°, on condition of the neighboring republic leaving our industry 
 free from any new exaction. 
 
 The situation of the two republics seemed to be clear enough. Chili renounced its 
 effective possession up to lat. 23° S. ; Bolivia ceded its fantastic pretentions up to lat. 
 24°; and both countries, respecting the fact that Antofagasta, Mejillones, Caracoles, 
 and Salinas were of Chilian creation, agreed to guarantee the freedom of the indus- 
 tries established in those regions. This undoubtedly imported an immense sacrifice to 
 Chili, considering that she not only ceded to Bolivia a territory in dispute, but also a 
 large area over which her title could not have been questioned for a moment. 
 
 The antecedents of the treaty of 1866, and the negotiations which resulted in that 
 
80 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 of 1874 are the most evident proofs that Chili, far from desiring the extension of its 
 limits recognized under the colonial regime, only sought an arrangement that per- 
 mitted the untrammeled exercise of Chilian industry, notwithstanding the appropria- 
 tion by Bolivia of the territory that we possessed. 
 
 It is unnecessary to dwell upon the right of a sovereign state to claim from another 
 with which it contracted the fulfillment of its stipulations, and the no less indisput- 
 able faculty to employ the means of enforcement which the law of nations has placed 
 in use. Although the proceeding of my government was open to no objection, consid- 
 ering that the conflict with Bolivia in no way aifected Peru, we wished to give the 
 latter a. proof of our friendship by informing it fully of whatever transpired, calling 
 previously its attention to the necessary results of a groundless complication. 
 
 The Lima cabinet knew, therefore, everything concerning the negotiations at La 
 Paz ; it could appreciate the tenacious resistance opposed to the conciliatory proposals 
 of our chancellery ; and it also knew that such proposals were replied to by unheard-of 
 acts of violent spoliation. In spite of this, that cabinet, so zealous for the peace 
 of America, which has assumed at the eleventh hour the charge of Bolivia, could find 
 then — when an opportunity offered for it to fulfill its duty — not a single word nor 
 course whatever to avert a conflict in which it may now be said Peru represented a 
 secret r6le by no means in conformity with its much-talked of highmindedness. 
 
 It was our duty then to confide in the loyalty of Peru ; still more, we had the right 
 to demand it, either on the ground of a sincere friendship, or as a slight return for the 
 blood of our citizens and our treasure spent in giving that country a nationality, and 
 defending it at the price of our own ruin. 
 
 It was natural for us to give faith to the professions of netrality which the Peru- 
 vian Government transmitted to us through our plenipotentiary ; and to consider as 
 friendly the intimation given us by that cabinet, that until war was declared it must 
 permit the passage of Bolivian troops through its territory, in virtue of a previous 
 treaty. 
 
 There were, however, various antecedents which contradicted in a great measure 
 the declarations that now we may stigmatize as insidious, with full knowledge of the 
 circumstances. The President of Peru did not hesitate to express his fears for the 
 pressure that might be brought to bear in an opposite sense by a reckless popular 
 opinion. He hinted at the not improbable event of the action of the authorities 
 being interfered with, and recognized the influence of certain circles whose disaf- 
 fection to Chili is only founded on the childish jealousy with which our prosperity is 
 regarded. 
 
 This caused my government to observe an attitude of vigilant expectation. Accord- 
 ing to the rules regulating the relations of friendly powers, it would have been rash 
 to provoke a definitive situation ; but according to the claims of our own responsibii-' 
 ity and dignity, we were bound to prepare for any emergency. 
 
 This explains the reception accorded to the extraordinary legation from Peru which 
 arrived at Santiago at the beginning of March, with words of peace and conciliation. 
 
 The nature of the complication with Bolivia did not exclude the possibility of some 
 arrangement, as it was not our desire to make war unnecessarily. My government, 
 however, believed that all mediation under the then circumstances was inopportune ; 
 that it had even been so when on a previous occasion it had been offered by the 
 charge d'affaires of Peru ; and that the cabinet of Lima had lost the occasion of inter- 
 posing its friendly offices, even if it had at any time professed them. 
 
 When the government of La Paz showed itself deaf to all remonstrance ; when its 
 only argument was decrees violatory of the treaty of 1874 ; when it replied to pacific 
 indications by the enforcement of the law of 1878, which implicitly abrogated its re- 
 cent pledges to Chili ; then, indeed, mediation would have been practicable, supposing 
 that Peru had possessed the real character of an honorable mutual friend. 
 
 Believing firmly that mediation for the moment was groundless, my government yet 
 considered that such belief was not incompatible with hearing the ideas of the Peru- 
 vian Government, transmitted by its representative, Don Jose' Antonio de Lavalle. At 
 the preliminary conference held by the undersigned with Sefior Lavalle, it appeared 
 that the object of the mission was to exchange ideas and make general observations 
 on the Chilino-Bolivian question. As then the belief became more pronounced in the 
 existence of a secret treaty of alliance, concluded in the year 1873 between Peru and 
 Bolivia, it seemed advisable to interrogate Sefior Lavalle concerning an event of such 
 importance ; and as at the same time an unusual activity was observable in the army 
 and navy of Peru, explanations were demanded as to the signification and object of 
 such preparations. 
 
 Sefior Lavalle gave the following reply : 
 
 " That he had no knowledge of the treaty alluded to; that he believed it had no 
 " existence ; that it could not have been approved by the Congress of 1873, because the 
 ' ' legislature being biennial till the constitutional reform of 1878, that assembly did not 
 " meet in that year; and that he was sure it was not approved on the following years, 
 " during which he had the honor of presiding over the diplomatic committee of Con- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 81 
 
 "gress, at which such negotiation would necessarily have had to be discussed. But 
 "nevertheless, as since his arrival in Chili he had heard the existence of this treaty 
 "spoken of, he had asked instructions from his government, which he would comniii- 
 " nicate immediately they were received." 
 
 Respecting the belligerent attitude which Peru commenced to assume, its represent- 
 ative attributed it to the special condition of its territory, and to the necessity of 
 preventing its violation by the operations of the belligerents, which it was reasonable 
 to anticipate, as the Bolivians had invaded it even in the cases of internal commotion. 
 
 These explanations were not tranquilizing, because they were not conclusive, and 
 confirmed my government in the conviction that it would be necessary to resolve so 
 equivocal a situation before the cabinet of Lima itself; and even without knowing 
 its antecedents, instructions were sent at the first moment to our minister at that cap- 
 ital, to ask for a prompt declaration of neutrality. 
 
 The cabinet of Lima, as I have already had the honor of stating to your excellency 
 declared to our representative in verbal conference that it would be neutral in the 
 conflict with Bolivia, and that such resolution would remain in suspense until the 
 declaration of war were notified to it. 
 
 On March 14 our minister in Lima announced to my government that the charge' 
 d'affaires of Bolivia. had made known to the diplomatic corps there resident that his 
 country was at war with Chili, and on the same day orders were sent Sefior Godoy to 
 demand the declaration of neutrality. It was asked for in moderate terms on the 
 17th of the same month, and the Peruvian chancellery, replying on the 21st, referred 
 to instructions that would be transmitted to its envoy extraordinary in Chili, without 
 explaining the reasons which induced it to delay the solution of a legitimate right 
 which gave no margin for further explanations. The disloyal evasion of Peru was 
 unacceptable even to the least suspicious judgment, and for this reason my govern- 
 ment informed Senor Godoy on the same day that it did not admit of such a tardy 
 course being adopted ; that it insisted on claiming its right in Lima itself; and that 
 it now not only asked Peru to define its attitude, but demanded a frank explanation 
 as to the object of its armament, and substantial guarantees for the future, in the 
 event of any probable contingency. 
 
 Such a demand was fully justified. The extraordinary mission of Senor Lavalle, at 
 such a critical moment, only served to satisfy us as to his ignorance of subjects of im- 
 mense importance ; and at the same time the Government of Lima had to be reminded 
 that it had confessed itself impotent to fulfill its duty, and that an explosion of hate 
 as profound as unreasonable against this republic had burst forth among the people 
 of the pretended mediator. 
 
 The moment had therefore arrived to dissipate all doubt. My government, sensible 
 of the responsibility weighing upon it, and being aware of the extent of the right of 
 self-defense before an ill-defined neutrality that was arming in every haste, did not 
 hesitate to give its demands the pressing nature that the gravity of the situation 
 demanded. 
 
 On the said 21st of March Senor Godoy communicated to my government the result 
 of that step, but the defective telegraphic transmission necessitated the rectification 
 of the dispatch, which from various causes could not be effected before the night of 
 the 24th. His note had not been replied to in writing, but in verbal conference he 
 was given clearly to understand by the Government of Peru that it was impossible 
 for it to assume a neutral attitude, owing to the existence Of a treaty of alliance with 
 Bolivia. In spite of the importance of this declaration, that government insisted on 
 Chili abiding by the explanations of the Peruvian envoy ; and exhibited, with an 
 impassiveness at variance with the simplest demands of honor, the desire of postpon- 
 ing the solution of the problem. 
 
 Notwithstanding, my government, obedient to the respect which it has always pro- 
 fessed toward the opinions of other nations, and desirous of avoiding the reproach of 
 hastiness by the omission of any essential requisite to establish clearly the situation 
 of Peru, endeavored to obtain explicit and exact explanations. 
 
 On the said 24th of March peremptory instructions were sent to our minister at 
 Lima. According to them he was to insist that the question of neutrality should not 
 be discussed in Chili ; that we demanded the immediate and guaranteed suspension 
 of the armament, and the production of the secrect treaty, inquiring if it was ap- 
 proved in due form, and if Peru was disposed to abrogate it immediately and give ns 
 the requisite explanations for having negotiated in secret, while on terms of friend- 
 ship with us, a treaty showing want of confidence in and even of hostility toward 
 Chili. 
 
 Such were our last demands and their just foundations. Our representative in 
 Lima, putting them into prompt execution, conferred verbally with the head of the 
 Peruvian Government and. the members of his cabinet. 
 
 The result of those conferences was the following declarations, which suffice with- 
 out any comment to show the international policy of a government allied till then 
 
 S. Ex. 79 6 
 
82 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 ■with us by a treaty of friendship offered by Chili when the ancient masters of Pern, 
 imposed on it a humiliating vassalage. 
 
 The cabinet of Lima, without a tinge of shame, undeterred by recent events, with- 
 out even the frankness which occasionally excuses great faults, tranquilly answered 
 our minister : 
 
 1. That it would not declare nor assume an attitude of neutrality, though with an 
 incomprehensible logic it offered, nevertheless, on its already violated word, to sus- 
 pend its warlike preparations. 
 
 2. That the secret treaty with Bolivia — a shameful net spread for our friendship — 
 was duly completed for a long time past. 
 
 3. That that treaty, whose hidden existence was the best proof of its bastard na- 
 ture, had to be kept' secret, in accordance with one of its articles, calculated cunningly 
 against the friend of many years, the ally in trouble, the savior in the two great 
 crises of the nation, that jrith such a monument testified its gratitude ; and 
 
 4. That a copy of this singular treaty had been remitted to Senor Lavalle ; hut on 
 the understanding that it should only be read to us, doubtless to satisfy our curiosity 
 to know a negotiation whose like can scarcely be found in the darkest records of 
 diplomacy. 
 
 It is not surprising that the cabinet of Lima had the assurance- to insist, with all 
 the appearance of seriousness, on the possibility of the continuance of the pending 
 negotiations. 
 
 If all this was not war, such as it is understood by civilized nations, it signified the 
 same thing, under the transparent disguise of a mediator who assumed the double 
 part of a friend when he was an interested belligerent. 
 
 The secret treaty of February 6, 1873, needs no lengthy examination to ascertain 
 its object ; and the reserve in which it has been maintained confirms in the least sus- 
 picious mind the conviction that it was entered iuto solely as a means of security for 
 the fiscal egotism of Peru in ite pecuniary troubles and to aid the schemes of the 
 Government of Bolivia, a perpetual conspirator against the treaty of 1866. In 1873, 
 neither Peru nor Bolivia was threatened by the remotest danger of territorial dis- 
 memberment ; and much less could it be foreseen that Chili cherished such idea, seeing 
 that it had granted to Bolivia whatever that republic demanded in the convention of 
 1866— applauded by the Bolivian people as a splendid manifestation of Chilian gener- 
 osity. 
 
 The treaty of 1873 owed its origin — hidden as a shameful act — to the measures 
 adopted by Peru at that epoch to justify one of the most audacious and cruel spoliations 
 witnessed by countries submitted to a regime of common respect toward the industry 
 of all nations. 
 
 Peru desired to monopolize and appropriate the nitrate works ; and in order to sus- 
 tain its daily diminishing credit, adopted the supreme measure of ruining an industry 
 to satisfy a fiscal voracity that could not satisfy itself with the ordinary resources of a 
 country that has lived, thanks to its territorial wealth, in complete obliviousness of 
 economy and labor. 
 
 Your excellency cannot be ignorant of the situation of these three republics in Feb- 
 ruary, 1873 ; and in fact only by the cause I have just indicated can be explained the 
 existence of the treaty of that year, entered into in prevision of acts that nobody 
 threatened to realize ; that could not be realized while the treaty of 1866 existed ; and 
 when in no case was it possible to anticipate that Chili or any other nation would 
 threaten the integrity of Bolivian territory, or the never-disputed, sovereignty of Peru 
 within its recognized limits. 
 
 It is evident that Peru sought in the treaty of 1873 to protect the financial measures 
 it meditated against an industry that in any commonly scrupulous country would 
 have had the right to develop itself freely. What it desired was to strengthen the 
 nitrate monopoly without considering the sums invested in that industry ; for in vain 
 are antecedents of any kind scraped up to justify the belief, not probable, but even 
 possible, of any aggression against the independence or dominion of the contracting 
 powers. 
 
 Knowing the respective situation Of these countries, the secret treaty of which I 
 have spoken was either wholly useless, or it possessed an ulterior design that events 
 have shown to be the real one. Neither Bolivia nor Peru could fear the perturbation 
 of their sovereignty by any of the surrounding nations ; so that the alliance is explain- 
 able by much less elevated motives, and which decidedly were intended to embarrass 
 the action of ray government in exacting the due fulfillment of the treaty we had cele- 
 brated with Bolivia, and provide against the consequences of the indignant clamor of 
 Chilian citizens, despoiled by the despotic hand of the monopoly established in Tara- 
 
 As a last analysis, the Peru-Bolivian convention was for Peru the cold calculation 
 of a trader ; and for Bolivia a vote of indemnity which covered the previous viola- 
 tions and future infractions of the agreement of 1866. The monopolizing interest of 
 the former republic and the international ill faith of the second found their faithful 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 83 
 
 expression in that document, whose celebrity will he as lasting as the condemnation 
 which the honest conscience of every civilized people will attach to it. 
 
 And this, you excellency will observe as an orignal lesson of diplomatic loyalty, was 
 on the eve of adjusting the treaty of 1874, when Chili, withoat necessity, and only in 
 homage to peace, being able to exact the fulfillment of the treaty of 1866, agreed to 
 renounce its recognized right to the territory between 24° and 23°. 
 
 There is even yet something more worthy of observation. Article 3 of the secret ' 
 convention reserves to each party the qualification of the casus fcederis. The 8th es- 
 tablishes, as a solemn pledge, to avert war as far as possible, employing conciliatory 
 means to avoid a rupture, aiid among them arbitration. 
 
 Peru therefore possessed the fullest liberty of action for deciding if the time for an 
 alliance had arrived. It could and ought to have considered the object and character 
 of the operations undertaken by my government ; and more than one opportunity pre- 
 sented itself for offering its mediation, when it assisted as a mute witness to the nego- 
 tiations whose logical results it could not otherwise than forsee. It is not therefore 
 unwarranted to impute to the cabinet of Lima the deliberate intention, formed long 
 before, of assuming the character of a belligerent. For this reason it manifested a 
 decided inclination for neutrality even whilst it armed with unusual rapidity ; for 
 this it sent us a legation which claimed to be without instructions on the cardinal 
 points of its mission ; for this, whilst it delayed the replies asked by our representative, 
 it sent urgent orders to Europe for new war material. 
 
 All this would merit, on the part of any power disinterested in the conflict, qualifi- 
 cations too severe for my government to repeat here out of respect for that of your 
 excellency. The nations whose worthy representatives I have the honor to address 
 will observe by the accompanying documents, that even accepting as obligatory the 
 secret treaty of 1873, the Peruvian Government was free from any pledge. That of 
 Bolivia refused the arbitration referred to in article 8 of the secret treaty, as it did in 
 the treaties celebrated with Chili; and the casus fcederis had not occurred, inasmuch 
 as Chili stated, and repeated frequently, that it did not intend to conquer a hand's 
 breadth of Bolivian territory. Peru not only could but should observe the strictest 
 neutrality, even observing the secret stipulations binding it with Bolivia; because 
 these are founded on the existence of a threat against territorial integrity, which was 
 never thought of on our part ; and because they also fix as an indispensable precedent 
 to the casus fcederis the previous recourse to arbitration. 
 
 The explanations given by Senor Lavalle, far from attenuating, strengthened more 
 clearly, if that be possible, the terminant spirit of the treaty of 1873. How accept the 
 trifling excuse that it contained a generic stipulation, not directed at Chili, whilst it 
 is carefully hidden from her knowledge? If the treaty meant a general guarantee 
 against any advance of a foreign power, why was the co-operation of Chili not sought, 
 which has given more than one example of being the first to contribute, with its men, 
 and its wealth, toward the maintenance of the sovereignty of nations of a common 
 origin? ' 
 
 It was still more inconceivable that Pern should inform us by its envoy that the 
 reserve of the treaty arose from one of its conditions, fearing our susceptibilities might 
 be wounded if it proceeded to act as mediator while informing us of its relations with 
 one of the belligerents. 
 
 To discuss such allegations would be merely to tire your patience, and is doubly 
 unnecessary, inasmuch as Peru from the beginning of the conflict has done every- 
 thing in its power to elude any explanation relating to the secret treaty. 
 
 My government needed no extraordinary effort to ascertain, from the acts and dec- 
 larations related, what was the position that Pera preferred to assume, what were 
 the rights, and, more than all, what were the duties that were consequently imposed. 
 The mediator offered himself, backed by an army, whose rapid reunion testified to 
 the prevision of proximate conflicts, manned his navy, and, whilst uncertainly stam- 
 mering words of impartiality, allowed to transpire the engagement of a belligerent 
 duly sealed. 
 
 It was Peru which, if it did not declare war first, with the frankness of a noble 
 resolution, commenced it first ; and, what is worse, a war hidden and sheltered under 
 false protestations of friendship. 
 
 Chili has never forgotten the course marked out by the patriotism of its sons, the 
 energy strengthened by the conviction of violated justice, and its historic name 
 among civilized nations. It is Peru that has plotted and desired war; let Peru, 
 therefore, be charged with the responsibility, whilst Chili delivers its future to the 
 protection of God, to the stout hearts of its citizens, and to the just opinion of enlight- 
 ened nations. 
 
 I have, &c, 
 
 ALEJANDRO FIERRO. 
 
84 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Kb. 59. 
 
 Mr. Osbom to Mr. Evarts. 
 
 So. 98.] Legation of the United States, 
 
 Santiago, Chili, May 10, 1879. (Received Juue 16.) 
 
 Sir: I herewith inclose an English translation of the secret treaty be- 
 tween Peru and Bolivia, of which I have heretofore written. It will be 
 observed that the alliance is a defensive one, each agreeing to defend 
 the other from all foreign aggression. While the treaty is general in 
 its terms there can be no doubt that its purpose was to consolidate the 
 remaining South American Eepublics against Chili. Article 4, it will 
 be seen, provides for the extension of the alliance to one or more of 
 these states. I have it from reliable authority that the Argentine Gov- 
 ernment was some time since urged to become a party to the arrange- 
 ment. 
 
 I also inclose a "map of the theater of the war," first issued here. The 
 24th degree south has heretofore been the north line of Chili. The ter- 
 ritory comprised in the degree lying north of this line' is that in dispute 
 between Chili and Bolivia, and the Bolivian jurisdiction extended thence 
 north to the river Loa. The purposes of the Chili Government are, in 
 my judgment, outlined in this map. The plan contemplates an exten- 
 sion of the northern frontier to .the river Camerones, and a compro- 
 mise with Bolivia by guaranteeing to her the possession of the territory 
 on the coast embracing Arica and Taena. It is believed here very gen- 
 erally that Bolivia would much rather have the territory mentioned 
 than that hitherto possessed by her embracing Antofagasta, and that 
 as soon as a favorable opportunity shall offer she will be found ready to 
 break with her present ally. When it is remembered that the imports 
 and exports of Bolivia nearly all pass through the Peruvian custom- 
 houses at Arica and Mollendo, this faith of the Chilians does not seem 
 extravagantly wild. 
 
 The military situation now is about this : 
 
 Antofagasta is occupied by about 10,000 Chilian troops.- Iquique is 
 occupied by Peruvian troops, about 5,000 strong. This place is still 
 under blockade, and the people and soldiers are suffering much for want 
 of healthy provisions and water. Arica is occupied by a combined army 
 consisting of about 6,000 Bolivians and the same number of Peruvians. 
 
 The Chilian campaign seems now to contemplate a movement by the 
 forces at Antofagasta upon Iquique. If they should be successful in 
 this they believe that the time will have arrived for an arrangement 
 with Bolivia. If this should be consummated the new allies would un- 
 questionably have Peru at their feet. President Daza, of Bolivia, is 
 understood to be with his troops in the neighborhood of Arica, and I do 
 not doubt that with the assistance of the Chilian navy he would be 
 able to overcome the Peruvian force there with but little difficulty. It 
 may perhaps be said that this course ou the part of Bolivia would be 
 highly dishonorable, and that, therefore, she is not likely to pursue it. 
 She may not, but it will be for other reasons than this if she does not. 
 
 I have been disappointed in the faint resistance which Peru has thus 
 lar made upon the sea. The Chilian naval force is traversing the Peru- 
 vian coast with impunity, destroying the moles and launches in the 
 various ports, and occasionally, by way of diversion, destroying a town. 
 I have, &c, ' 
 
 THOMAS A. OSBOEX. 
 
AFFAIES IN CHILI, PERU, AND BOLIVIA. 85 
 
 [Inclosure linNo. 98.] > 
 
 The secret treaty 'between Peru and Bolivia. 
 
 The Peruvian minister of foreign affairs, Sefior Manuel Irigoyen, and the envoy ex- 
 traordinary and minister plenipotentiary of Bolivia, Senor Serapio Reyes Ortiz, hav- 
 ing agreed to publish the secret treaty of defensive alliance celebrated between their 
 repective governments on the 6th of February, 1873, in accordance with the terms of 
 the additional article appended to the said treaty, the same has now appeared in print, 
 and the following is a translation : 
 
 Adolfo Baixivian, constitutional President of the Republic of Bolivia: 
 
 Inasmuch as, between the republics of Bolivia and Peru, represented by the respect- 
 ive plenipotentiaries, there has been celebrated in the city of Lima on the sixth day 
 of the month of February of the present year the following treaty of defensive alli- 
 ance: 
 
 The republics of Bolivia and Peru, desirous to cement in a solemn manner the bonds 
 that unite them, to increase thus their strength and mutually guarantee one another 
 certain rights, have drawn up the present treaty of defensive alliance, to which end 
 the President of Bolivia has invested with ample powers to conduct the said negotia- 
 tion, Juan de la Cruz Benevente, envoy extraordinary and minister plenipotentiary in 
 Peru, and the President of Peru has conferred the same upon Jose' de la Riva Aguero, 
 minister of foreign affairs, who have agreed upon the following stipulations: 
 
 Article I. The contracting parties will unite and Join to mutually guarantee their 
 independence, sovereignty, and the integrity of their respective territories, binding 
 themselves by the terms of the present treaty to defend themselves against all foreign 
 aggression, whether proceeding from another or other independent states, or from a 
 force without a flag owing obedience to no recognized power. 
 
 Art. II. The alliance will become effective to protect the rights expressed in the 
 preceding article, and particularly in cases of offense consisting, first, iu acts tend- 
 ing to deprive either of the contracting parties of a portion of their territory, in order 
 to assume dominion over it, or to yield it to another power ; second, in acts tending 
 to oblige either of the contracting parties to submit to a protectorate, sale or cession 
 of territory, or to establish over it any superiority, right, or pre-eminence whatso- 
 ever, which may injure or offend the full and ample exercise of its sovereignty and 
 independence ; third, in acts tending to do away with or change the form of govern- 
 ment, the political constitution or the laws that the contracting parties have made, 
 or may in future make, in the exercise of the sovereignty. 
 
 Art. III. As both the contracting parties admit that every legitimate act of alliance 
 is based upon justice, for each of them, respectively, the right is established of decid- 
 ing whether the offense inferred to the other is comprised amongst those mentioned in 
 the preceding article. 
 
 Art. IV. The cams foederis once declared, the contracting parties bind them- 
 selves to cease immediately their relations with the offending state, to hand their pass- 
 ports to its diplomatic ministers, to cancel the appointments of the consular agents, to 
 forbid the importation of its natural and industrial products, and to close their ports 
 against its ships. 
 
 Art. V. The same parties will also appoint plenipotentiaries to adjust by pro- 
 tocol the arrangements necessary to determine upon the subsidies, the contingents 
 of either sea or land forces, or the aid of whatever kind that must be lent to the re- 
 public which has received the offense, the manner in which the forces are to act and the 
 assistance to be lent, and whatever else may be convenient for the defense. The meet- 
 ing of the plenipotentiaries will take place in the place assigned by the offended party 
 for that purpose. 
 
 Art. VI. The contracting parties bind themselves to provide the one offended with 
 the means of defense of which each may consider it can dispose, though the arrange- 
 ments pointed out in the preceding article may not have taken place, provided that 
 they consider the case urgent. 
 
 Art. VII. The casus foederis once declared, the offended party will not be able to 
 make arrangements for peace, truce, or armistice, without the concurrence of the ally 
 who may have taken part in the war. 
 
 Art. VIII. The contracting parties bind themselves in addition — 
 
 1st. To employ with preference, whenever it is possible, every conciliatory measure 
 in order to avoid a rupture, or to put an end to the war, holding as the most effective 
 the arbitration of a third power. 
 
 2d. Not to admit nor accept from any nation or government, protectorate or super- 
 iority that may injure and lessen their independence or sovereignty, and not to yield 
 up nor transfer in favor of any nation or government any part whatsoever of their 
 territories excepting in the cases of better demarkation of limits. 
 
86 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 3d. Not to celebrate treaties of limits or of other territorial arrangements, without 
 the other contracting party first knowing of same. 
 
 Art. IX. The stipulations of the present treaty do not extend to acts performed by 
 political parties or the result of internal disturbances independent of the intervention 
 of foreign governments ; inasmuch as the principal object of the present treaty of al- 
 liance being the mutual guarantee of the sovereign rights of both nations, none of its 
 clauses must be interpreted in opposition to its primary end. 
 
 Art. X. The contracting parties will, separately or collectively, when by a subse- 
 quent agreement they may consider it convenient, solicit the adhesion of another or 
 other American states to the present treaty of defensive alliance. 
 
 Art. XI. The present treaty will be exchanged in Lima or in L a Pa^i as soon as it 
 is legally perfected, and will remain in full force on the twentieth day after said ex- 
 change takes place. Its duration shall be for an indefinite period, each party reserv- 
 ing to itself the right of considering it as no longer existing when such shall be thought 
 convenient. 
 
 In such a case the party desiring to annul the treaty must notify the other party of 
 the same, and the treaty will no longer have effect on the elapse of forty months from 
 such notification. 
 
 In testimony whereof, the respective plenipotentiaries signed it in .duplicate and 
 sealed it with their private seals. 
 
 Done in Lima on the sixth day of the month of February, one thousand eight hun- 
 dred and seventy-three. 
 
 JUAN DE LA CRUZ BENATENTE. 
 J. DE LA EIVA AGUERO. 
 
 Here follows an additional article which provides that the treaty shall be kept se- 
 cret as long as both parties by common accord shall not deem its publication neces- 
 sary. 
 
 The treaty having received the approbation of the extraordinary assembly of Bolivia 
 and been confirmed and ratified by the then President of that country, Senor Adolfo 
 Ballivian, was formally exchanged between the two parties, represented by their 
 respective ministers, in the city of Ea Paz, on the 16th day of June, 1873. 
 
 The Peruvian Congress gave its approbation to the treaty on the 22d of April of 
 the same year, and notified Senor Pardo, at the time President of Peru, of same on the 
 30th of the same month and year, who thereupon ratified it. 
 
 Xo. 60. 
 
 Mr. Seward to Mr. Osborn. 
 
 [Extract.] 
 
 2so. 63.] Department of State, 
 
 Washington, May 29, 1S79. 
 
 Sir : I have to acknowledge the receipt of your dispatch of the 19th 
 ultimo (92), in which you send me a copy and a translation of the mani- 
 festo of the government of Chili, in justification of its war with Peru. 
 
 Whatever may have been the causes leading to this war, its commence- 
 ment and continuance cannot but be regretted by the United States ; 
 and it is hardly necessary to add that the announcement of an early 
 peace between the two- governments, a* also with Bolivia, would be news 
 most welcome to the Government of the United States. 
 
 I a"in, &c, 
 
 F. W. SEWAED, 
 
 Acting Secretary. 
 
87 
 
 No. 61. 
 
 Mr. Osborn to Mr. Hvarts. 
 
 No. 100.J Legation of the United States, 
 
 Santiago, Chili, June 5, 1879. (Received July 8.) 
 
 Sir : I have the honor to inclose a copy of the President's message, 
 delivered, to Congress at its opening on the 1st instant. 
 
 The message treats almost exclusively of the international difficulties 
 in which the country is involved, but I discover little in it worthy of 
 note which has not been already adverted to in my dispatches. Its re- 
 view of the origin of the Avar with Bolivia and with Peru is but a 
 repetition of the arguments presented by the foreign office in documents 
 with which you have been furnished. 
 
 The President speaks with a pardonable pride of the valor displayed 
 by the Chilians in the combat of the 21st ultimo at Iquique between 
 the Chilian wooden ships Esmeralda and Covodonga and the powerful 
 Peruvian iron-clads Huascar and Independencia. In this battle the 
 Esmeralda, with no possible hope of escape from destruction except 
 through a surrender, continued for four long hours the desperate en- 
 counter, and then went down with her colors still at the mast. The 
 Covodonga, more fortunate than her companion, managed to get out 
 of the bay closely pursued by the Independencia, and being a ship of 
 light draught, by running close to the shore she led the large ironclad 
 upon the rocks and witnessed its total destruction. 
 
 The enthusiasm of the people in consequence of this battle is beyond 
 my power of description. Chili has had other heroes, but I doubt if any 
 were ever so honored as is. now the memory of Arturo Prat, the late com- 
 mander of the Esmeralda. 
 
 At the time of this battle the Chilian fleet, except the two ships men- 
 tioned, was in the neighborhood of Callao, where it still remained at last 
 advices received here. The Huascar in the mean time has continued in 
 the vicinity of Iquique. The loss of the Independencia must prove to be 
 a severe blow to the Peruvian cause, and I doubt if it can be repaired 
 in the present condition of the Peruvian credit. 
 
 The two Chilian iron-clads are powerful vessels, and ought to be able 
 to destroy the Huascar if they can succeed in bringing her under their 
 guns. 
 
 The government is exceedingly reticent as to the future movements of 
 the fleet, but I infer that the blockade of Iquique will soon be re-estab- 
 lished, if it has not already been done. 
 
 You will have learned ere this, doubtless, through our legation in 
 Lima, of the tender made by Great Britain to Peru and Chili of its good 
 offices in the capacity of a mediator, and of the refusal thereof by Peru. 
 The President states in his message, as you will observe, that the offer 
 was accepted by his government. I cannot speak positively, but I am 
 strongly impressed with the belief that the action of Great Britain was 
 the result of a suggestion from their legation here, and that this sug- 
 gestion was inspired by the Chili government. 
 
 I see by the newspapers that the Queen's ministers have assured the 
 British Parliament, in response to questions propounded to them, that 
 their government would take the proper steps to protect the interests of 
 British citizens on this coast pending the war. This declaration caused 
 considerable uneasiness here. 
 
 The large Peruvian debt is principally held in England, and it was 
 feared by the friends of Chili that the contemplated action meant an 
 
88 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 interference in behalf of the holders to the extent of insisting that the ■ 
 niter and guano in the Tarapaca district should be applied to the liqui- 
 dation of this debt, regardless of the result of the war in that section. 
 The British minister called on me a few days since, and in the course of 
 conversation, referring to this subject, said that the commander of the 
 British naval forces in the Pacific had been instructed from home, by 
 telegraph to exercise due diligence in protecting British interests here, 
 and that that was all that was meant by the assurance given by Her 
 ^Majesty's ministers to Parliament. I do not doubt that such a dispatch 
 was received, but you are better able to judge than I am whether the 
 promises of the British cabinet contemplated this and no more, or not. 
 I have, &c, 
 
 THOMAS A. OSBOEN. 
 
 P. S., June 6. — A dispatch received this morning announces that the 
 Chilian fleet had returned to Iquique. On the 31st ultimo the Huascar 
 was at anchor in a small inlet a short distance this side of Antofagasta. 
 
 OSBOEN. 
 
 Xo. 62. 
 
 Mr. Osborn to Mr. Uvarts. 
 
 ZSTo. 101.] Legation of the United States, 
 
 Santiago, Chili, June 11, 1879. (Received July 24.) 
 
 Sir : I inclose an English translation of what I find published in the 
 newspapers purporting to be a decree of the Bolivian government con- 
 cerning privateers, and beg leave to direct your especial attention to 
 sections 5 and 6 thereof. I assume that the treaty of the United States 
 with Bolivia, proclaimed January 8, 1863, is still in force. This treaty 
 fully recognizes the doctrine of " free ships, free goods," and unequivo- 
 cally defines which shall be regarded as contraband of war. On these 
 points the decree is in direct conflict with the provisions of the treaty. 
 
 This decree has caused quite a flutter in diplomatic circles here. The 
 British representative has been especially exercised concerning it. He 
 informed me a few days since that he purposed telegraphing the sub- 
 stance of it to London, and I conclude that if his government shall 
 agree with him privateers under the Bolivian flag will be treated by 
 Great Britain as pirates. 
 
 Bolivia is not, I understand, a party to the treaty of Paris, and I 
 know of no maritime power, except that of the United States, which 
 has stipulated with her for the recognition of the principle that the flag 
 protects the cargo. 
 
 I have taken the liberty of mentioning this matter to my friend 
 Judge Pettis, in a personal note which I forward to him at La Paz to- 
 day. The decree is dated prior to his arrival at La Paz, and it may 
 have escaped his notice. 
 I have, &c, 
 
 THOMAS A. OSBOEN. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 89 
 
 [luclosure.J 
 Translation of Bolivian decree concerning privateering. 
 
 Whereas, the Republic of Chili having declared itself in a state of warfare against 
 Bolivia, and having taken armed^and forcible possession of a portion of the coast, 
 thereby breaking former well-defined treaties, it has become necessary to make use of 
 all legitimate means of maritime warfare; and to such effect, having the right and 
 believing in the necessity of sending forth vessels carrying letters of marque against 
 any other vessels sailing under the enemy's flag, or against any Chilian merchandise, 
 whether or not contraband of war which they may meet under a neutral flag, or for 
 the taking or confiscation of the saltpeter works, guano deposits, or other products' of 
 the Bolivian coast which may be worked and exported, such acts being considered as 
 robbery and piracy committed by the Chilian Government on the national property, 
 I hereby issue the following decree for the guidance of all captains of privateers hold- 
 ing letters of marque from this republic in the present war against Chili. 
 
 1st. It is hereby authorized to auy Bolivian privateer to c^hase and capture any 
 Chilian vessel, whether she be a ship of war, privateer, a merchantman, whether she 
 be at sea, or in the waters or harbors of the republic, waters or ports of the enemy. 
 
 2d. It is forbidden to privateers of the republic to make any attack or hostile act 
 within the limits of any waters or ports belonging to neutral nations, it being under- 
 stood that national waters are such as ar.e within the reach of a cannon shot from low 
 water mark. 
 
 3d. The privateers of the republic may take possession of the cargoes of Chilian 
 merchant vessels, provided that such cargoes do not belong to any neutral, except in 
 the case that the articles of which the same is composed may be contraband of war, 
 destined to the enemy, the which will be always seizable. If one portion of the cargo 
 is contraband of war and the other not, the first only shall be seizable. 
 
 4th. The privateers shall be authorized to stop or seize any neutral vessel which 
 may carry official dispatches from or to the enemy, or troops for land or marine serv- 
 ice, or supplies for the enemy. , 
 
 5th. The privateers of the republic may seize any cargo being Chilian property, 
 which they may find on board of any neutral vessel, whether or not the same may be 
 contraband of war. 
 
 6th. Contraband of war is composed of the following matters: cannons, muskets, 
 mortars, and all description of arms, and also all kinds of projectiles, gun carriages, 
 fusees, fulminants, percussion caps, gunpowder, saltpetre, sulphur, articles of military 
 clothing, harness, horse saddles and bridles, field tents, coal intended for the war 
 ships of the enemy or their privateers, or other such, and all instruments and appli- 
 ances destined for warfare, including food and victuals, gold and silver coined, and 
 the correspondence addressed to the enemy ; also military contingeiits or individuals 
 belonging to the service of the enemy, are contraband of war. 
 
 7th. Also any vessel which cannot prove her neutrality may be seized, and in like 
 manner those which may fail to produce the necessary documents, namely, the reg- 
 ister, the bills of lading for the cargo, or other such documents as may -^.mch for the 
 neutral ownership of the ship and cargo, and shall be deemed lawful prize unless there 
 shall be proof that the said documents have been lost by inevitable accident. All the 
 papers presented must be properly accredited in order to be accepted. 
 
 8th. Vessels which shall hoist any other flag than that of their true nationality, or 
 which may throw their papers overboard into the sea, or which may offer resistance 
 or attempt to escape from the privateer, shall be considered as enemies. 
 
 9th. The privateers of the republic are authorized to seize any vessels of whatever 
 nationality which may carry on board produce exported from the ports of Mejillones 
 or Autofagasta, and minerals from Caracoles, such as saltpeter, guano, silver or cop- 
 per, unless they can prove that the same have been shipped through the intervention 
 of the Bolivian authorities. 
 
 10th. The declaration of lawful prize shall be given by the courts established by 
 the laws of the republic. If, on account of distance or other cause, the prize cannot be 
 brought before such court, judgment shall be delivered by the diplomatic or consular 
 agents of the republic in the ports of any friendly nation which may consent to the sale 
 of such prize. If by chance the privateer, being embarrassed by extraordinary cir- 
 cumstances, may be unable to send the prize for proper judgment, she may act accord- 
 ing to the circumstances, consulting her own safety, and keeping the necessary docu- 
 ments, which shall be presented in due course before the competent authorities. 
 
 11th. The privateers of the republic shall hold the right of visit which belongs to 
 all belligerents, and in the exercise of the same comply with the following regulations : 
 The privateer shall display the national flag, firing a blank shot towards the vessel 
 which is to be visited, and which shall atop and hoist her ensign. If she do not do so 
 the privateer will take the necessary means to oblige her to comply. 
 
80 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 12th. If the merchant vessel stops and displays her ensign, the commander of the 
 privateer shall send a visit on hoard, with all necessary precautions to examine the 
 papers, and ascertain the nationality of the ship and cargo, and that she is engaged 
 in legitimate trade. 
 
 13th. If on such visit it results that the vessel is seizable, the privateer shall take 
 an inventory of the cargo, and all the effects which shall be found on board, and shall 
 keep such documents as may prove the legality of the prize, to present the same be- 
 fore the respective tribunal (court). 
 
 14th. If it results from the visit, that the vessel is not seizable, nor may be de- 
 tained, and that the cargo is altogether neutral property, and not contraband of war, 
 a certificate shall be given to the captain of such vessel, in which these facts shall be 
 set down, and the captain of the privateer shall keep a duplicate of the said docu- 
 ment. 
 
 15th. Any vessels captured by Bolivian privateers, and also the cargo of the same, 
 shall be free of all fiscal dues in the ports or harbors of the republic. 
 
 16th. The commander, officers, and crew of such privateers shall be under the pro- 
 tection of the government and law of the republic, and shall be considered Bolivian 
 citizens, with all the rights and warranties thereunto annexed, even though they may 
 be foreigners, from the time of the arming of the privateer, or that they may belong 
 to her. 
 
 Given in the city of La Paz this twenty-sixth day of March, 1879. 
 
 H. DAZA. 
 EULOGIO D. MEDINA. 
 
 No. 63. 
 Mr. Osborn to Mr. Uvarts. 
 
 No. 107.] Legation of the United States, 
 
 Santiago, Chili, July 21, 1879. (Keceived September 4.) 
 
 Sir : General Urbina, an ex-president of Ecuador, has been here a 
 few weeks on a special mission from his government in the interest of 
 peace, and left this morning for Lima. On his way down the coast 
 General Urbina had an interview with Presidents Prado of Peru, and 
 Daza of Bolivia, at Arica, which resulted in his being informed that 
 Peru and Bolivia would consent to a cessation of hostilities and an ar- 
 bitration of the matters in dispute upon the condition that the status 
 quo ante oellum should be restored, and should continue pending the 
 arbitration. In an informal interview which I had with the minister of 
 foreign relations yesterday, he informed me that this condition would 
 not be ageeed to by this government. Said he, and truly, I believe, 
 "a ministry which would consent to this now could not stand a day." 
 
 He added, however, that Chili would consent to arbitrate, leaving the 
 statits quo as at present, and with an understanding that if the dominion 
 of the country in dispute should be determined to belong rightfully to 
 Bolivia, Chili would pay therefor the price which the arbitrator might 
 fix. I judge that this is the proposition with which General Urbina goes 
 to Lima to-day. 
 
 What the other governments will say to it now is more than I dare to 
 venture an opinion upon. 
 
 Since the first interview of General Urbina with Presidents Prado 
 and Daza, the allies have met with quite a severe loss in the destruction 
 of the " Independencia,'' one of the Peruvian ironclads, and it is possible 
 that their demands touching the status quo may be somewhat modified. 
 
 Prom the beginning I have believed that, if the Chili troops should 
 succeed in capturing Iquique before an arrangement could be reached, 
 it would be difficult to induce Chili to consent to withdraw therefrom 
 until she should be indemnified for expenses in the war; and this opinion 
 I still entertain. The proposition which I assume General Urbina car- 
 
AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 91 
 
 ries, is, I doubt not, made in good faith, but it is made with the sur- 
 roundings of to-day. There is here a strong party urging upon the 
 government greater energy in the prosecution of the war, and one of 
 the movements demanded is the capture of Iquique. President Pinto 
 is exceedingly conservative and disposed to "make haste slowly," but 
 public sentiment is pressing him forward, and has just made it neces- 
 sary for him to change the commander-in-chief of the army. There is a 
 very general demand for an aggressive campaign, and I think I venture 
 little in predicting that before the receipt of this dispatch a part of the 
 army now at Autofagasta will have effected a landing north of Iquique. 
 I know that a forward movement has been determined upon, and the 
 government anticipates a severe and bloody battle. 
 . In the conversation referred to, the foreign minister volunteered some 
 expressions touching the choice of an arbitrator, if that point -shall 
 be reached. While the Emperor of Brazil would be satisfactory to 
 Chili, the government expects, I am led to believe, that the President of 
 the United States will be requested to assist the belligerents in the 
 arrangement of their difficulties. 
 
 Business in all its branches is at a standstill, and I can see nothing 
 but universal bankruptcy in a long continuance of the war. i 
 
 Some few months since the government, after failing in all efforts to 
 secure a loan, issued six millions of paper notes. This is about ex- 
 hausted, and I apprehend that ere long a new issue will be made. 
 
 The extraordinary expenses growing out of the. war are not much 
 short of two millions a month. 
 
 To provide the necessary funds for expenditures abroad, a decree has 
 just been issued by the Executive requiring that all import duties shall 
 be paid in silver or its equivalent in bills on Europe. This was made 
 necessary by the great decline in the value of paper money exchange on 
 London, which, rated at about 40d for the dollar at the commencement 
 of the war, has advanced to 28d. ; or, putting it in another way, the 
 American gold dollar, which was worth a few months since a dollar and 
 a quarter in this money, now commands a dollar and three-quarters. 
 
 By the New York papers which came to hand by the last mail, I see 
 that there has been some newspaper discussion growing out of a tele- 
 graphic dispatch from Berlin indicating an intention on the part of the 
 German Government to interfere in this controversy. 
 
 These articles have been generally copied and commented upon by 
 the Chili press, and I have yet to see an expression of dissent from the 
 views entertained by our leading journals regarding the ability of 
 America to arrange her difficulties without assistance from the other 
 side of the Atlantic. The Ferro-canil, the leading newspaper of the 
 country, has quite an able editorial on the subject this morning, in 
 .which it rejoices that the opportunity occurred for an expression of 
 opinion upon the part of the American press regarding the " Monroe 
 doctrine." 
 
 Public sentiment here now seems to be decidedly averse to European 
 interference in any contingency. It may not be inappropriate for me to 
 remark in this connection that several months since Baron von Gulich, 
 the German minister here, informed me that he had just received a dis- 
 patch from his government directing him in the most positive manner 
 to have nothing to say concerning matters which are purely American. 
 I did not see the dispatch, nor am I sure now that he said that it in 
 terms mentioned the " Monroe doctrine," but in our conversation I know 
 he regarded it as conforming fully to this principle. The dispatch was 
 received prior to the commencement of the present war, and was oc- 
 
92 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 casioned, I think, by some suggestions made by von Gulich concerning 
 the Argentine dispute. 
 
 The British representative informs me that his colleague in Lima is 
 especially anxious that Great Britain shall be permitted to mediate, and 
 is suggesting that the good offices of the government shall be urged 
 upon the belligerents. 
 
 In my dispatch, No. 100, speaking of the tender by Great Britain of 
 its good offices I intimated a belief on my part that this action had been 
 inspired by the government here. Further developments lead me to 
 conclude that my suspicions were groundless. 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 No. 64. 
 Mr. Evarts to Mr. Osborn. 
 
 No. 70. | Department of State, 
 
 Washington, August 8, 1879. 
 
 Sir: I transmit herewith for your information copy of a dispatch 
 from Mr. Ernest Dichman,* United States minister resident at Bogota, 
 reciting the causes which have prompted Colombia to proffer mediation 
 for the settlement of the war between Chili and Peru and Bolivia, and 
 announcing the appointment of Br. Arosemena, the former secretary of 
 foreign relations of Colombia, to visit Santiago, Lima, and La Paz on a 
 special mission for the purpose of tendering such mediation. 
 
 Although abstaining from any direct indorsement of, or co-operation 
 in, this apparrently laudable effort of Colombia in the interest of peace 
 and reconciliation, this government, which feels lively solicitude for the 
 prosperity and tranquility of the South American states, cannot but 
 watch Dr. Arosemena's mission with especial attention. 
 
 In personal intercourse with the doctor, when he visits Santiago, you 
 will probably find a fitting occasion to express to him the warm interest 
 taken by the United States in this tentative step, and the friendly solici- 
 tude of this government as to the result. 
 I am, sir, your obedient servant, 
 
 WM. M. EVARTS. 
 
 No. -65. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No. 110.] Legation of the United States. 
 
 Santiago, Chili, August 9, 1879 {September 16). 
 Sir : Since the arrival of Judge Pettis on this coast, in April last, we 
 have exchanged many letters, some of a personal and others of a public 
 character. Quite naturally the distressing war in which these countries 
 are engaged has been a subject of comment. Realizing the sincere re- 
 gret of the United States at this sad conflict we have endeavored, by 
 careful inquiry into the real cause of the difficulty and a comparison of 
 views .thereon, to find some fair basis upon which an honorable and a 
 lasting peace might possibly be consummated. 
 
 * For inclosure see inclosure to document No. 5. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 93 
 
 It is unnecessary that I should recapitulate in detail our correspond- 
 ence. Suffice it to say that all parties seemed willing to* arbitrate, and 
 all appeared desirous that some branch of the Government of the United 
 States should officiate as arbitrator, but the difficulty which blocked the 
 way was the status quo. Peru and Bolivia insisted that the status quo 
 ante helium should prevail, while Chili contended for it, as at present. 
 Judge Pettis seemed to think, however, that this difficulty might be re- 
 moved if a fair opportunity should be afforded the belligerents for a 
 comparison of their views. 
 
 On the 29th ultimo I received a telegraphic message from Judge Pet- 
 tis on board the steamer at Coquimbo, on his way to Valparaiso, notify- 
 ing me of his coming to Chili. In an unofficial interview with Minister 
 Hunaeus, in charge of the foreign office, I informed him of the receipt 
 by me of this message, whereupon he requested me to urge Judge Pet- 
 tis to continue his voyage to Santiago. On the arrival of Judge Pettis 
 here I introduced him to Minister Hunaeus, and several extended con- 
 versations, all having in view a peaceable solution of the difficulties, have 
 followed. In the outset Mr. Hunaeus was informed that Judge Pettis 
 was here without instructions from his government. Mr. Hunaeus ex- 
 pressed a belief that his government would be glad to arbitrate the 
 questions in dispute and would accept as arbitrator either the President 
 of the United States, the Supreme Court of the United States, or the 
 United States ministers at Santiago, Lima, and La Paz, but that it 
 would not recede from its position regarding the status quo. 
 
 Many suggestions were made, when finally Judge Pettis expressed a 
 belief that a status quo would be consented to by Peru and Bolivia which 
 would provide for the immediate withdrawal of the Chilian forces from 
 the territory north of the 23d parallel of south latitude, and for a con- 
 cession to Bolivia of the coast as far south as, and including the port of, 
 Majillones. Mr. Hunaeus seemed to think that this would be satisfac- 
 tory to Chili if it were coupled with an understanding that if the arbi- 
 trator should determine that the territory between the 23d and 24th 
 parallels was a part of Bolivia, Chili should pay Bolivia therefor a price 
 to be by the arbitrator fixed. In support of this demand he urged the 
 fact that the population and interests in the territory spoken of were 
 almost exclusively Chilian. Judge Pettis replied that he did not know 
 that there would be any serious objection to this, whereupon Mr. Hu- 
 naeus requested that an informal written memorandum should he made 
 of the suggestions presented for submission to the President and cabi- 
 net. Judge Pettis desired an opportunity to confer with me privately 
 on the subject, and in an hour I forwarded to Mr. Hunaeus the memo- 
 randum of Judge Pettis, written in pencil, under cover of a personal 
 letter from me. I will forward hereafter a copy of the memorandum. I 
 am not in possession of it now, but having stipulated for a return of the 
 original when it was sent to the minister, it will, I presume, be returned 
 to me in a day or two. The cabinet is in earnest consultation on this 
 matter to-day, but I will not be able to give you the result thereof by 
 this mail. 1 must close my dispatch in an hour. I may say, how- 
 ever, that notwithstanding the cheerful opinion expressed by Minister 
 Hunaeus, my hopes of a peaceable solution of the dispute between 
 Chili and Peru at present are not unbounded. There is a deep-seated 
 feeling of enmity between the two countries, and I doubt if either is yet 
 ready for peace. They are jealous of each other, and are engaged in 
 a terrible struggle for supremacy in the Pacific. It is different with 
 Bolivia. Chili would settle with Bolivia on the basis suggested in a 
 
94 AFFAIKS IN CHILI, PERU, AND BOLIVIA. 
 
 moment. That such a settlement would, by removing the original cause 
 of the war, tend to simplify the road to peace with Peru, is probably true. 
 
 It is proper that I should say that the presence of Judge Pettis here 
 has, in my judgment, materially improved the prospect for an amicable 
 arrangement of the difficulties. 
 
 The advance of the army predicted in my No. 107 has been, by reason 
 of the capture by Peru of one of the Chilian transports, indefinitely 
 postponed. 
 
 The blockade at Iquique has been raised. I am not advised whether 
 the government intends to re-establish it or not. 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 No. 66. 
 Mr. Osborn to Mr. JEvarts. 
 
 No. 112.] Legation of the United States, 
 
 Santiago, Chili, August 16, 1879. (Received September 17.) 
 
 Sir : In my dispatch No. 110 I spoke of the arrival here of Judge 
 Pettis and of the informal submission to the minister of foreign rela- 
 tions of his memorandum regarding peace. I now have the honor to 
 inclose a copy of the memorandum, together with an English transla- 
 tion of the response sent me by Minister Hunaeus. It will be observed 
 that they are both without date and signature. The memorandum of 
 Judge Pettis was inclosed to the minister in a personal letter from me, 
 a copy of whichjJL forward, as I do also a copy of the personal letter to 
 me from Minister Hunaeus accompanying the response. 
 
 It will be seen that the fears expressed in my No. 110 regarding the 
 prospect for an immediate peace with Peru were well founded, as was 
 also my belief that Chili would consent to submit to arbitration its 
 questions with Bolivia on the basis proposed in the memorandum. In 
 my judgment the President would gladly conclude a peace with Peru 
 ou the terms suggested, if he could. But he is powerless m that direc- 
 tion. The war spirit is in the ascendency, and it is likely so to remain 
 until a trial of strength has been had. 
 
 President-making is now the order of the day, and I very much fear 
 that this spirit will soon develop into one of President-breaking. The 
 cabinet is being repeatedly called before Congress for explanations con- 
 cerning the conduct of the war, and it is now understood that there is 
 soon to be another change in the ministry. The mass of the people, 
 urged on by the politicians, clamor for more activity, while the admin- 
 istration hesitates. The government doubtless fears that a serious 
 reverse would, in the present condition, produce a revolution. I se- 
 riously fear that Chili is being threatened by an enemy far more dan- 
 gerous than the armies of Peru and Bolivia. Her internal political con- 
 dition is that of confusion, and as each day succeeds the other it becomes 
 more so. 
 
 A rumor obtained currency a few days since that the United States 
 Government had determined upon intervention in the controversy, and 
 the newspapers of the clerical party, accepting the rumor as well founded, 
 proceeded to inform the President as to his duties in the premises. 
 Circumstances, among which I may mention the "arrival of Mr. Fisher, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. "95 
 
 of Boston, with dispatches for the legation, and the visit of Mr. Pettis, 
 conspired to give credence to the report. It was freely stated that Mr. 
 Fisher had announced on the steamer that he was the bearer of impor- 
 tant dispatches to this legation concerning the war, and an article was 
 copied by the press from a Lima paper, announcing the arrival there of 
 Mr. Fisher with important dispatches from the government at Wash- 
 ington for our legations at Lima and Santiago. The excited condition 
 of public opinion gave to these incidents an important coloring and 
 afforded the sensational newspaper man a fair field for operations. Of 
 course the rumor was of short duration, but the discussion which it pro- ' 
 duced developed the existence of a strong public sentiment in opposi- 
 tion to dictation from without. I may have more to say hereafter re- 
 garding the source of this rumor. 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 [Inclosures.] 
 
 1. Memorandum of basis for peace. 
 
 2. Eesponse sent by Minister Hunaeus. 
 
 3. Personal letter to Minister Hunaeus, inclosing memorandum. 
 
 4. Personal letter from Minister Hunaeus, inclosing response. 
 
 [Tnclosure 1 of No. 112.] 
 Memorandum of basis for peace. 
 
 Whereas, it has been suggested through a friendly medium that even now the path- 
 way to an early, honorable, and profitable peace leads in the direction of arbitration 
 at the hands of some known and acknowledged power alike friendly to Peru, Bolivia, 
 and Chili ; 
 
 And desiring in the spirit of conciliation and compromise, and in the interest of peace 
 and humanity, to transfer and elevate the contest of principle from the theater of force 
 to that of reason and conscience : 
 
 It is agreed that all differences and all matters in dispute between Peru and Bolivia 
 upon one side, and Chili upon the otherside, of whatever character, class, kind, descrip- 
 tion, or extent, be submitted to , who shall be requested to meet upon the 
 
 day of September, 1879, for the purpose of receiving and considering the state- 
 ments of the proper representatives of each of the three republics in support of their 
 respective views and claims; and after such presentation, hearing, and considera- 
 tion, to determine and decide upon all matters concerning which Peru, Bolivia and 
 Chili are now at variance, and the same being reduced to writing and signed by a 
 majority of the arbitrators, to be final, binding, and conclusive upon the said repub- 
 lics and the governments thereof; and in the event that the arbitrators should be of 
 opinion that Bolivia is justly and equitably entitled to any territory south of the 
 twenty-third parallel south latitude, it is understood that the arbitrators, or a 
 majority of them, shall ascertain and fix the amount that Chili shall pay to Bolivia 
 and the manner of payment for such territory, provided the respective legally-consti- 
 tuted representatives before the arbitrators cannot agree upon such amount as com- 
 pensation therefor, and the divisory line between Chili and Bolivia shall thereupon 
 be by such arbitrators established upon the said parallel 23d south latitude. There- 
 fore, 
 
 It is stipulated : 
 
 That from this day of August, 1879, hostilities of every character shall cease, 
 
 and neither party augment its forces on land or sea ; that Chili at once disoccupy all 
 territory south of the 23d degree of south latitude, withdrawing all her forces by land 
 and sea south of said 23d degree, leaving clear to Bolivia as well the coast south of 
 said degree ten minutes below said 23d parallel, but in all other respects the status quo 
 to remain as at present. 
 
 This instrument to have no force or validity until signed by the proper authorities 
 of the three republics. 
 
96 • AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [iDclosnre 2 in No. 112.] 
 Response sent by Mr. Sunaeus. 
 
 1. The government has no objection to submit the questions between it and Bolivia 
 to the arbitration of the United States upon the terms proposed, inasmuch as such 
 terms cover the purpose of the war and express the spirit by which Chili has been 
 governed in the question of boundaries with Bolivia, as also because it believes that 
 such agreement would be cheerfully accepted by Congress, and meet the approval of 
 the country. 
 
 2. With regard to the questions with Peru, although the conditions proposed meet, 
 to a great extent, the purpose of the war, the disloyal conduct of Peru or its govern- 
 ment in preparing for war while at the same time it was outwardly manifesting 
 towards Chili pacific and friendly feelings ; in offering herself as a mediator, while at 
 the same time she was bound by a secret treaty of alliance with Bolivia, which, for 
 the time being, was our enemy, affords this country and its government just grounds 
 for not accepting a solution of our existing difficulties by means of an arbitration, 
 and for demanding that in future Peru shall enter into no treaties such as the one of 
 February of 1873, and which she kept secret for six years, doubtless waiting her oppor- 
 tunity to take the aggressive when the advantage might be on her side under a treaty 
 which did not render war upon her side obligatory, unless we desire to expose our- 
 selves to the serious danger of a standing menace against peaceful relations abroad, 
 and to be always ready to resist. 
 
 Such are the grave considerations which deter the government from accepting the 
 arbitration upon the terms proposed, and make it incumbent on it, before accepting 
 them, of informing itself of the views of Congress with regard to the proposed condi- 
 tions, and also to ascertain how far they would meet the exigencies of the country. 
 
 For, although the government recognizes it as a duty, suggested as well by reason 
 as by the practice of all civilized nations, to put an end to war by pacific means, it 
 also feels it to be a- duty to consider well whether such pacific solution of the difficul- 
 ties would really bring a lasting peace to Chili and shield her from the machinations 
 of which she has been the object and by which she has been unwittingly dragged into 
 a war for which she was not prepared. 
 
 [Inclosure 3 in Xo. 112.] 
 
 Mr. Osborn to Mr. Hunaeus. 
 
 Santiago, Chili, August 7, 1?79. 
 My Dear Friend Hunaeus: Judge Pettis, my colleague, accredited to Bolivia, 
 has handed me the inclosed " memorandum" of a proposed arbitration of the dispute 
 between Chili, Bolivia, and Peru, which I transmit for your information. 
 With due consideration, &c, 
 
 THOMAS A. OSBORN. 
 
 [Inclosure 4 in Xo. 112.— Translation.] 
 Mr. Hunaeus to Mr. Osborn. 
 
 Santiago, August 11, 1879. 
 Esteemed Sir and Friend: Acknowledging the receipt of your letter of the 5th 
 instant, and of the memorandum of proposed arbitration that the Hon. Newton Pettis, 
 your colleague in Bolivia, had delivered to you, and that you had the goodness to remit 
 to me, I have, in return, the pleasure of inclosing to you a copy of that which I read 
 to you and to Mr. Pettis at 5 p.m. yesterday, thus acceding to the desire which you 
 manifested of having it. 
 
 With all consideration, &c, 
 
 JORJE HUNAEUS. 
 The Hon. Thomas A. Osborn. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 97 
 
 No. 67. 
 Mr. Osborn to Mr. Evarts. 
 
 No. 118.] Legation of the United States, 
 
 Santiago, Chili, October 17, 1879. (Eeceived Nov. 24.) 
 Sir : Under date of September 24, 1879, Mr. Christiancy wrote me a 
 somewhat lengthy letter from Lima upon the subject of the war, and 
 made some suggestions regarding an effort to bring it to a termination. 
 A copy of his letter was, he informs me, forwarded to the State Depart- 
 ment. I have the honor to forward, under cover of this dispatch, a copy 
 of my reply. 
 
 I have, &c, &c, &c, 
 
 THOMAS A. OSBOBN. 
 
 Mr. Osborn to Mr. Christiancy. 
 
 Private.] Legation of the United States, 
 
 Santiago, Chili, October 17, 1879. 
 
 Sir : I have your communication of the 24th ultimo concerning the unfortunate war 
 in which these republics are ongaged, and suggesting propositions looking to peace, 
 and have given it a very careful consideration. 
 
 You are right in concluding that, personally, I would he glad to see this conflict at 
 an end. I see no good in it, hut, on the contrary, much injury to all the governments, 
 concerned, and such influence as I may have had here with this government has been 
 on all proper occasions thrown into the scale in behalf of peace. I have been careful, 
 however, to avoid making myself offensive by tendering advice where it did not seem 
 to be welcome. I have endeavored to keep in mind the fact that the convict is one in 
 which we are quite remotely, if at all, concerned, and the policy which has governed, 
 the United States would scarcely warrant her agents in meddling obtrusively in it. 
 
 As to mediation by the United States, my own judgment is against any movement 
 in that direction, as the matter now stands, except upon a positive assurance that the 
 good offices of our government would not only be accepted, but that they are desired. 
 
 Contingencies might arise in the future which Vould justify our government, per- 
 haps, in urging its good offices, but I see nothing in the present aspect to warrant any 
 such action. 
 
 H it should hereafter appear manifest that some of the European powers were on. 
 the eve of armed intervention, the aspect would doubtless be changed. 
 
 It is a mistake to suppose that this government is anxious to end the war and only 
 seeks a way to let herself down easily. The war spirit here is quite as strong now as 
 it has been at any time, and there seems to be the most perfect confidence in Chili's 
 ability to conquer its enemies. Such being the case, it is useless to talk to them of 
 mediation. They regard themselves as capable of settling their affairs without the 
 assistance of a mediator. Mr. Arosemena, of the Colombian Government, whom you 
 met in Lima, assured me last evening that he should leave in a few days without 
 formally tendering the good offices of his government, as he has been privately made 
 to understand that such good offices are not desired. 
 
 I still regard it as probable that in the end some of the questions in dispute will 
 have to be submitted to arbitration, but the manner in which they are to be submitted 
 will depend much upon the result of the war. When that point shall be reached I 
 feel confident Chili will be content with the United States as arbitrator. I cannot, 
 however, concur in your suggestion ihat the other governments mentioned should be 
 associated with ours. I see many objections to it, and you will on reflection, I think, 
 conclude that it would be impracticable. 
 
 Regarding your suggestion as to a division of the territory between the twenty- 
 third and twenty-fourth parallels, I am confident that if Peru and Bolivia were to 
 send here a direct proposition to that end it would not be accepted. Nothing short 
 of utter defeat in the war will induce Chili to give up any considerable part of the 
 territory south of the twenty-third parallel. She is willing, I judge, to arbitrate it,, 
 hut only on condition that if the title should be determined to he in Bolivia, Chili 
 should retain it by paying an equivalent therefor. I suppose that Judge Pettis has 
 furnished yon with a copy of the memorandum which was sent me by the minister of 
 foreign relations. That memorandum was quite as moderate as public sentiment here 
 wouldjustify, and now that the depression which then prevailed over the loss of the 
 
 S. Ex. 79 7 
 
98 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 "Rimae" has given way to universal joy and renewed confidence because of the capture 
 of the "Hua8car," you can judge how utterly useless it would be to suggest to them a 
 division of the territory referred to. 
 
 I have written you quite hurriedly in my anxiety to get my letter into the mail 
 which leaves to-day, but have endeavored to speak plainly, and trust I have made 
 myself understood. I am as anxious for peace as any one can be, and will go as far 
 in the eifort to bring it about as my sense of propriety will permit. My chief regret 
 is that I am unable to see how, in the present condition of affairs, I can be of any 
 service in that direction. I trust, however, that our correspondence shall be con- 
 tinued, and if events shall place it in our power hereafter to aid in extrica+ing these 
 republics from their difficulties, I feel confident that we will both be found equal to 
 the occasion. 
 
 I will write you further on the subject as circumstances may seem to require. 
 I have the honor to subscribe myself, truly your friend, 
 
 THOMAS A. OSBORN. 
 
 Xo. 68. 
 
 Mr. Osborn to 2Ir. Hearts. 
 
 Xo. 120.] Legation of the United States, 
 
 Santiago, Chili, October 28, 1879. (Eeceived December 18.) 
 
 Sir : Keferring to your instruction, Xo. 70, regarding the mission of 
 Dr. Arosemena, special ambassador of the United States of Colombia 
 to the belligerents in the existing war in this section, I have the honor 
 to inform yon that I have discharged, to the best of my ability, the duty 
 therein imposed upon me. Soon after the arrival of Dr. A. at this cap- 
 ital we were made acquainted with each other, and circumstances have 
 since brought us together quite frequently. On more than one occasion 
 before the arrival of your instruction he had mentioned to me the pur- 
 poses of his mission, and had intimated a hope that possibly the United 
 States Government might join the United States of Colombia in its ef- 
 forts for peace. I said to him in substance that I was without instruc- 
 tions touching the matter suggested by him, but that, while I knew that 
 the United States Government felt a deep concern for the welfare of all 
 the American republics, and that it regretted very much the present con- 
 flict and would rejoice at its termination, still I did not believe that it 
 would, in the absence of knowledge that its good offices were desired by 
 all the belligerents, or until it should have some good reason for believ- 
 ing that an effort by it in behalf of peace would" be crowned with suc- 
 cess, propose to meddle in the controversy in any manner. 
 
 Subsequently, when your instruction came to hand, I was more than 
 gratified to observe that my expressions were in harmony with the views 
 of the State Department in so far as the Department had seen fit to make 
 them known. Dr. Arosemena is not hopeful of accomplishing anything 
 now, and will leave here in a few days for Lima without formally tender- 
 ing the good offices of his government. He has private assurances that 
 the services of his government are not desired by Chili at present. 
 
 Upon this subject of mediation by the United States, I had occasion to 
 write at some length a few days since to my colleague Judge Pettis in 
 answer to some letters from him. Tn the course of my communication 
 I took occasion to say that I was u fully convinced that our diplomatic 
 agents should be careful to avoid any action which could possibly be 
 tortured into an effort to urge the mediation of our government upon 
 the belligerents." " This rule," I continued, " I have adopted for myself, 
 and it shall be adhered to unless a change of circumstances shall render 
 another course necessary or until advised otherwise by the government 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 99' 
 
 at home." I informed him that Chili seemed perfectly confident of its 
 ability to conquer its enemies, and that I had no reason to'believe that 
 it desired the good offices of our government at present. 
 
 This country was never more confident of siiccess in the war, appar- 
 ently, than it is now. The government, as now organized, with Senor 
 Santa Maria at the head of the cabinet, represents tally the aggressive 
 war spiiit of the country. The government has the confidence of the- 
 people in so far as the conduct of the war is concerned, and all are san- 
 guine regarding the result. And 1 judge, from the tone of the Pe- 
 ruvian press, that the allies are quite aw confident that they will ulti- 
 mately triumph. While matters continue in this condition 1 am at a loss 
 to understand how our government can possibly make itself useful in the 
 direction of peace. I am sure that no proposition which would admit 
 of the reoccnpation by Bolivia of the territory between the 23d and 24th 
 parallels, or any considerable part thereof, would be accepted by Chili, 
 no matter where the proposition should come from. It will also be re- 
 membered that in the unofficial "memorandum" sent to me by Mr. 
 Hunaeus, late minister of foreign affairs, a copy of which was inclosed 
 in my No. 112, it is claimed that, as between Peru and Chili, the latter 
 must have some" guarantee that its peace shall not be disturbed in the 
 future before there can be a cessation of hostilities. At the time of the 
 delivery of the memorandum T asked Mr. Hunaeus if he was prepared 
 to say what guarantee would be required, but he did not answer. The 
 principal cause for the declaration of war against Peru was the secret 
 treaty between Peru and Bolivia. Chili understands this compact to 
 have originated in Peru's hostility to her, and I am led to infer that the 
 "security for the future'' mentioned contemplated an abrogation of the 
 treaty and an assurance that a like one would not be entered into here- 
 after. If Chili should, however, get possession of the Tarapaca district, 
 I apprehend that it would be interpreted to mean mucb more. 
 
 There can be no peace until at least one of the parties to the conflict 
 shall show a disposition to abate some of its pretensions. I am confident 
 that Chili is not so disposed now. If the allies are, I do not know it. 
 The fact is, the belligerents have not sufficiently felt the horrors of war 
 „to incline them in the direction of peace. Up to this time the conflict 
 has been confined to the sea. There has been no engagement worthy the 
 name of battle by the army, and there must be, in my judgment, at least 
 one serious, bloody engagement by the land forces ere they will be found 
 ready to listen to friendly suggestions from outsiders. 
 
 The Chilian laud forces now number about twenty-five thousand men. 
 They have been supplied with new arms of the most approved patterns, 
 purchased in Europe. The men are regarded as good soldiers, and there 
 will be much disappointment here if they fail to render a good account 
 of themselves in the engagements which must, sooner or later, take place. 
 
 The capture of the famous turreted monitor "Huascar" by the Chilian 
 navy has produced here the most unbounded enthusiasm. This vessel 
 is now in the Valparaiso harbor undergoing repairs. This naval victory 
 leaves Chili undisputed master of the sea. It remains to be seen whether 
 she is to be as fortunate on land. Her position is undoubtedly much 
 stronger than it was prior to this naval engagement. 
 
 The government is anxiously watching the course of events in the 
 Argentine Eepublic. There is much hostility there to Chili, and it is 
 feared that that country may yet drift into an alliance with Peru and 
 Bolivia. 
 
 I have, &c, 
 
 ' THOMAS A. OSBOBK 
 
100 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 69. 
 
 2Ir. Osborn to Mr. Uvarts. 
 
 No. 123.] Legation of the United States, 
 
 Santiago, Chili, December 5, 1879. (Received January 22, 1880.) 
 Sir : I am this day in receipt of a note from the minister of foreign 
 relations, containing' information to the effect that on the 27th ultimo 
 the Peruvian port of Arica was placed in blockade by the Chilian 
 squadron. 
 
 The ports of Iquique and Pisagua are now in the possession of the 
 Chilenos, and are open to commerce. 
 I have, &c, 
 
 THOMAS A. OSBCmX. 
 
 No. 70. 
 
 Mr. Asta-Buruaga to Mr. Urarts. 
 
 [Translation.] 
 
 Legation of Chili, 
 Washington. December 15, 1879. 
 
 Mr. Secretary: I have the honor to address your excellency for the 
 purpose of calling your attention to the case of a torpedo-boat, which it 
 is proposed to ship from Bristol, E. I., so that it may be used against 
 Chili in its present war with Bolivia and Peru. 
 
 This legation has received reliable private information confirming the 
 intelligence published on the 12th instant in the Evening Telegram (a 
 slip containing the intelligence in question will be found on the margin 
 of my letter), to the effect that this terrible agent of destruction has 
 been in process of construction for some time, in pursuance of an order 
 given by Peruvian commissioners or agents with the object above stated. 
 
 "Without considering the question whether in legitimate warfare the 
 use of an instrument of hostility would be admissible which uselessly 
 endangers and sacrifices many lives, it may be asserted that a torpedo- 
 boat comes under the head of armed vessels, as does any other of larger 
 dimensions belonging to a navy, the fitting out of which violates the 
 neutrabty of the country in which it takes place. These boats are 
 managed and operated by their own independent force, or as auxilia- 
 ries of other vessels forming part of a squadron. In such capacity they 
 go to form, in my judgment, armed expeditions, whose preparation is in 
 evident violation of the laws of thecountryin which it occurs, andfrom 
 which they are conveyed for the purpose of carrying on hostilities 
 against another with which that one is at perfect peace. I do not con- 
 sider that this torpedo-boat is included in the right which is allowed to- 
 belligerents to purchase arms or other articles contraband of war in a 
 neutral country. 
 
 Consequently, and in virtue of the stipulations of the treaty of 1S32 
 between this country and Chili, which is still in full force as regards 
 peace and sincere friendship, and of the neutrality law, I would request 
 your excellency to adopt suitable measures to prevent the said torpedo- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 101 
 
 boat from leaving any port of these United States, it being evidently- 
 intended for hostile use against Chili. 
 
 I avail myself of this occasion to repeat to your excellency the assur- 
 ances of the very high consideration with which I am, 
 Your excellency's, &c, 
 
 F. S. ASTA-BUEUAGA. 
 
 71. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No. 125.] Legation op the United States, 
 
 Santiago, Chili, January 13, 1880. (Received Feb. 25, 1880.) 
 Sir : I am this day in receipt of a note from the minister of foreign 
 relations, dated yesterday, by which I am informed that the Peruvian 
 ports Ho and Mollendo have been placed in blockade by the Chilian 
 squadron. 
 
 The blockade of the first-named port was established on the 12th of 
 December, and of the last named on the 29th of the same month. 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 No. 72. 
 
 Mr. Evarts to Mr. Asta-Buruaga. 
 
 Department op State, 
 
 Washington, February 10, 1880. 
 
 Sir : Tour note of the 15th of December last, in relation to a rumor 
 that a torpedo-boat was about to be shipped from Bristol, R. I., for the 
 use of the Allies in the present war with Chili, was duly received. In 
 reply I have the honor to observe that the facts, as now within the 
 knowledge of this Department, do not constitute any sufficient ground 
 of criminal action against the builders of the craft, such as would nec- 
 essarily follow the preliminary measures prescribed in our neutrality 
 statutes. 
 
 I have the honor, however, to add that I have requested my colleague 
 of the Treasury to cause a watch to be kept on the movements of the 
 suspicious craft to which your note refers, in order that any evident in- 
 tent to violate the neutrality laws may be at once reported and acted 
 upon. 
 
 Accept, &c. 
 
 WM. M. EVARTS. 
 
 No. 73. 
 Mr. Evarts to Mr. Osborn. 
 
 No. 83.] Department op State, 
 
 Washington, February 19, 1880. .. 
 
 Sir : I have received a dispatch from the minister of the United States 
 at Lima, with a copy of a letter from the consul at Lambayeque, Mr. 
 
102 AFFAIRS IX CHILI, PERU, AND BOLIVIA. 
 
 MoDtjoy, from which it appears that certain property of the American 
 Oil Company, at Talara, which is described as "exclusively American 
 property," and other like effects at the Lobos Islands, have been de- 
 stroyed' by the fleet of Chili ; also that " a launch belonging to an Ameri- 
 can steam tug-boat was captured and taken away by the Chilian vessels, 
 although made fast to the steamer and flying the American ensign." 
 
 It is understood that these facts are already within your cognizance. 
 You will bring these acts to the early attention of the Chilian Govern- 
 ment, and so represent the matter as may distinctly show, without how- 
 ever any appearance of captious opposition to the legitimate processes and 
 needs of war, that the United States expect the equitable rights of their 
 citizens under treaty and the law of nations to be respected to the full, 
 as befits the relations between two such friendly powers. 
 I am, iSrc, 
 
 WM. M. EVARTS. 
 
 No. 71. 
 
 Mr. Osbom to Mr. Hvarts. 
 
 Xo. 131.] Legation of the United States, 
 
 Santiago, Chili, February 25, 1880. (Received April 10.) 
 
 Sir : Under date of the 3d instant, the minister, of war and marine is- 
 sued an order to the chief officer of the Chili squadron regarding the 
 course to be pursued in the further prosecution of the war, an extract 
 from which, with a translation in English, I herewith inclose. The re- 
 mainder of the order I have not deemed it necessary to forward, as it 
 treats only of the magnanimity of Chili heretofore, in dealing with the 
 enemy, and is of no consequence. 
 
 It will be seen that this government proposes to adopt more vigorous 
 measures than it has heretofore had recourse to in the prosecution of 
 the war, and that to that end it directs the bombardment and destruc- 
 tion of all towns on the Peruvian coast which have prepared cannons for 
 defense, and the destruction of all moles and other property in the vari- 
 ous ports of the enemy used in the loading and discharging of cargo. 
 
 To say nothing of the misery and suffering which woidd necessarily 
 ensue from a rigid execution of this instruction, it occurred to me that 
 neutral rights and interests were liable to become very seriously jeopar- 
 dized by it, and 1 therefore suggested to my colleagues of the diplo- 
 matic corps that it might be well to consider the propriety of address- 
 ing the Chilian Government on the subject. The result was a meeting 
 of the corps, and, after a full discussion, an understanding that each rep- 
 resentative should address the Chilian Government concerning the in- 
 terpretation to be placed on the order in question. A copy of my note 
 is herewith inclosed. 
 
 You will observe that I have urged that bombardment should only be 
 resorted to as against towns which possess some importance in a mili- 
 tary sense, and that even then sufficient notice should be given to enable 
 non-combatants and neutrals to remove themselves and their property 
 from danger. You will also have observed that I have protested against 
 the right of Chili to destroy the moles and other means of loading and 
 discharging cargo on the enemy's coast except where such destruction 
 appears to be necessary in view of the military situation. 
 
 An important fact in connection with this subject is that a very large 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 103 
 
 proportion of the population, and even alarger proportion of the property, 
 in the various towns on this coast, whether in Chili or Peru, is foreign ; 
 and it is upon these people and upon these interests that the severity of 
 this measure must, in a great degree, fall, if its execution is insisted up- 
 on. Many of these people are Americans. If the government should 
 listen to my suggestions, much ruin would be avoided, and I am not 
 without hope of such a result. 
 
 My note is now under consideration at the foreign office, as are also 
 those of the other ministers, and I anticipate a reply soon. 
 I have, &c, 
 
 THOMAS A. OSBOEK 
 
 [Inclosure 1 in No. 131.— Translation.] 
 Extract from order of minister of rear and marine, February 3, 1880. 
 
 So, then, noiv that it is manifest that the 'enemy did not duly appreciate the hu- 
 manity of our conduct, I believe that our hostilities must he conducted with greater 
 severity. In virtue of this, all towns on the coast that are protected by cannons 
 should be bombarded and destroyed ; all railroads that are serviDg the enemy in the 
 transportation of troops and elements of war should be fired upon ; and all moles and 
 boats employed in the ports of the enemy in loading or discharging cargo should be 
 destroyed. In a word, our standard of conduct hereafter must be to do the enemy all 
 possible injury, without neglecting anything that is authorized by the law of nations, 
 until it is made to feel the necessity of obtaining peace. Any other course will re- 
 sult in prolonging the war without limit, and will greatly increase the sacrifices which 
 the country is making to sustain it. 
 
 If heretofore it was believed that great severity in conducting our hostilities was, 
 until a certain point, unnecessary ; now we have sufficient data to believe that we 
 shall not oblige Peru to lay down her arms except by reducing her to absolute want, 
 and making her feel, in the property and interests of her inhabitants, all the burden 
 of the war. 
 
 [Inclosure 2.inXo. 131.] 
 Mr. Osborn to Stnor Amundtegui. 
 
 Legation of the Uxited States, 
 
 Santiago, Chili, February 21, 1880. 
 
 Sir: I find published in the Diario Oficial an order from the minister of war and 
 marine of your excellency's government issued on the 3d instant to the commander- 
 in-chief of the Chilian squadron, regarding the course to be pursued in the prosecution 
 of the present war, touching the purport of which I deem it my duty to address your 
 excellency. 
 
 The very cordial relations which exist between our respective governments en- 
 courage me to believe that the motives which impel me cannot be misconstrued, and 
 that my suggestions will be received by your excellency as they are offered, in a spirit 
 of the utmost sincerity and friendship. 
 
 I understand the order mentioned to direct the bombardment and destruction of all 
 Peruvian towns which have made preparations for defense, and the destruction of all 
 -launches and other property, whether public or private, used for loading and discharg- 
 ing cargo in the various ports of the enemy. The instruction to bombard is, I under- 
 stand, unrestricted, except as stated above. The importance of the place in a military 
 point of view is not to be taken into consideration. It is enough to know that it has 
 in place some cannons for defense. Nor is there any requirement for the notice now 
 so generally recognized as necessary by the civilized governments in such cases. 
 
 The right of bombardment is a cruel one in any aspect, and the public opinion of 
 the world very iuftly demands that it should be sparingly exercised, and when ex- 
 ercised that the horrors attending it should be mitigated in the greatest degree pos- 
 sible. It is a relic of the barbarism of the dark ages, against which civilization has 
 for several centuries steadily and unceasingly directed its fire, and while the progress 
 which has been made may not be as great as good men everywhere could wish for 
 still much has been accomplished for humanity. The limits which circumscribed it 
 
104 AFFAIRS IN. CHILI, PERU, AND BOLIVIA- 
 
 exereise in the ages which are past have heeu, through the expansion of an enlight- 
 ened public sentiment, gradually reduced, until, I respectfully submit to your excel- 
 lency, the law of nations recognizes it only as pertaining to ports which possess some 
 importance, strategic or otherwise, in a military sense, and that even then sufficient 
 notice of the proposed bombardment should be given to enable non-combatants and 
 neutrals to remove themselves and their property from danger. And so, too, regard- 
 ing the destruction of the launches and moles. It will hardly be seriously contended 
 that such destruction could be justified exec pt when the necessities of the military 
 situation might seem to require ic. 
 
 These observations are of a general character, but it is in its bearing upon the in- 
 terests and rights of neutrals that I desire more especially to direct your excellency's 
 attention to the order in question. These rights are liable to be seriously compro- 
 mised by a rigid execution of the order, if I correctly understand its purport. The 
 destruction of all the moles and launches on the Peruvian coast, for instance, involves 
 the destruction of all neutral commerce with that country without the necessity of a 
 blockade. I trust to be informed that my interpretation of the order in this respect 
 is a mistaken one. 
 
 Without, however, particularizing further, I feel that my duty has been performed 
 in bringing the matter to the consideration of your excellency, and I shall rest in the 
 hope that whatever may appear to be wrong in the order referred toy in so far at least 
 as it affects the righ'j cf neutrals, win be duly righted. 
 
 With sentiments of the highest consideration, I have, &c, 
 
 THOMAS A. OSBORN. 
 
 Hon. Miguel Luis Amunategui, 
 
 Minister of Foreign Eolations. 
 
 No. 75. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No. 132. | Legation of the United States, 
 
 Santiago, Chili, February 27, 1880. (Eeceived April 10.) 
 
 Sir: The minister of foreign relations has addressed me a note solic- 
 iting the friendly aid of our legations at Santiago and La Paz in securing 
 an exchange with Bolivia of prisoners of war, in answer to which I have 
 assured him that I would very cheerfully render his government all the 
 aid in my power, and that I would communicate at as early a day as 
 possible with my colleague in La Paz on the subject. I further informed 
 the minister that Judge Pettis had been absent from his post, and that 
 I was uninformed touching the time fixed for his return, but that I 
 judged that the legation, had been left in the hands of some person who 
 would give due consideration to my communication if Judge P. should 
 not be there to receive it. 
 
 I have this day written to the legation in La Paz, as promised in my 
 note. 
 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 No. 70. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No. 133.] Legation of the' United States, 
 
 Santiago, Chili, March 5, 1880. (Eeceived April 10.) 
 Sir : In several of my dispatches upon the subject of the existing 
 war in this section, I have expressed the conviction that if Chili should 
 
AFFAIKS IN CHILI, PERU, AND BOLIVIA. 105 
 
 succeed in placing her army in possession of the rich niter and guano 
 deposits of the Tarapaca district she would insist upon holding them, 
 regardless of any declaration which she may have made touching the pur- 
 poses of the war. Prior to her occupation of this district her authorized 
 officials here strenuously insisted that great injustice was done her if it 
 was believed that her purpose was one of conquest. In a conversation 
 with Judge Pettis and myself, in August last, Mr. Hunaeus, the acting 
 minister of foreign relations, expressed "himself quite emphatically on 
 the subject, asserting that there was no responsible public opinion in 
 Chili in favor of the conquest of a part of Peru, and he appealed to me 
 to bear him out in this statement. I do not doubt that Mr. H. was sin- 
 cere; nevertheless it was apparent to me then, as it had been before and 
 has been since, that if Chili should succeed in conquering the district 
 of Tarapaca she would eventually annex it to her dominion. 
 
 The drift of public opinion has constantly.been in the direction indi- 
 cated, and now I doubt if any responsible citizen would have the 
 temerity to suggest a contrary course. There has been, and is now, 
 doubtless, a difference of opinion as to the manner in which the annexa- 
 tion should take place, but that Tarapaca is to be annexed, now that it 
 is in the possession of the Chilian army, is an acknowledged fact which 
 no one presumes to question. A proposition for peace which should ex- 
 clude the possibility of such a consummation would not, in my opinion, be 
 seriously considered by this government. Just prior to the adjournment 
 of the late session of Congress a resolution proposing an immediate an- 
 nexation was offered by a very prominent and influential member, but 
 the minister of the interior urged that its adoption then would be inop- 
 portune, and at his request it was laid aside. I judge that the govern- 
 ment would prefer to accept Tarapaca as a reimbursement for expenses 
 in the war to any other form of annexation. 
 
 The management of the niter and guano interests in the conquered 
 territory is presenting some difficult questions to the Chilian Govern- 
 ment. By military order an export duty upon niter of one dollar and 
 fifty cents per hundred pounds was established some three months since, 
 but from various causes comparatively little has been shipped, and the 
 revenue derived therefrom is quite small. Of the principal causes for 
 the meager shipment may be mentioned the excessive duty and the 
 fear upon the part of the individual owners of a confiscation of their 
 interests if Peru should recover her lost possessions. The government 
 is sadly in need of money, and is making every effort to bring about a 
 shipment of the niter, but I incline to the belief that before much is 
 accomplished in that direction a reduction of the duty will be found 
 necessary. 
 
 The average value of niter in the European markets during the year 
 1878 was thirteen shillings per hundred pounds. At this figure it would 
 hardly pay to engage in its production, with the export duty as fixed. 
 In 1878 the amount exported from the Pacific coast was 313,000 tons. 
 Assuming this to be an average year, it will be seen that upwards of 
 seven millions of dollars per annum could be realized from this source 
 with the duty at one dollar per hundred pounds. 
 
 I inclose a military order recently issued regarding the exportation of 
 guano from the districts mentioned. These guano deposits are, it is un- 
 derstood, all mortgaged to secure the payment of the Peruvian foreign 
 debt. An agent of a part of the Peruvian bondholders has been here 
 for about five months endeavoring to secure an arrangement with the 
 government by which the guano in question should be appropriated to 
 the payment of the debt for which it was mortgaged, and the inclosed 
 
106 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 order is the result. In diplomatic circles here this action of the Chilian 
 Government in permitting the foreign bondholders of Peru to pay them- 
 selves from the conquered territory is very highly spoken of. 
 
 It occurs to me that there may be some question touching the owner- 
 ship of guano shipped under this order in the absence of further action 
 by the Chilian Government. 
 I have, &c, 
 
 THOMAS A. OSBOEK 
 
 [Inclosare -with Ko. 133.J 
 Military order touching exports of guano from the occupied district of Peru. 
 
 JOSE A. VlLLAGRAN, GeXERAL-IX-ChiEF OF THE AliMY OF RESERVE, &C. 
 
 The province of Tarapac^ being occupied by the Chilian army, and in virtue of the 
 powers conferred upon me by the Supreme Government, I decree : 
 
 That as" the foreign holders of Peruvian bonds have solicited due permission from 
 the Supreme Government to ship guano from the Peruvian deposits occupied by the 
 arms of the republic, and there being no impediment to granting this permission, I 
 decree : 
 
 Article 1. The foreign holders of Peruvian bonds are hereby allowed to extract 
 guano from the Peruvian, deposits occupied by the arms of the republic, under the fol- 
 lowing conditions : 
 
 1st. The bondholders shall name a committee or responsible.business house to 
 direct the operations; 
 
 2d. The Chilian Government reserves the power of intervention aud of naming 
 one or more functionaries to inspect, and if it be thought opportune, to direct the 
 operations of extraction and shipment. 
 
 3d. The functionaries referred to in the foregoing paragraph shall dispatch the 
 loaded ships to Valparaiso, whence they cannot sail to a foreign port until the sum of 
 30s. per ton of guano on board has been paid into the custom-house. 
 
 4th. This payment shall be made in bills of exchange upon London, in favor of 
 the Chilian Government and to its satisfaction; this payment shall be lowered to 20s. 
 per ton, in case that the price of guano falls below £6 per ton. 
 
 Art. 2. The papers of the ships sent off shall be made out to the order of the firm 
 of Messrs. Baring Bros. & Co., or to some other equally respectable firm, in case con- 
 signation is not arranged with them. 
 
 Until a contract of consignation be signed, the ships' papers shall be made out in 
 favor of the Chilian minister and plenipotentiary in Europe, and of James Croyle, esq., 
 and Sir Charles Russell. 
 
 Art. 3. The consignee or consignees of the guano shall proceed to sell the cargoes, 
 and, after deducting the sums expended, be it in the obtaining of this permission, be 
 it in payment of the debts referred to in article 1, or be it to repay the shipping ex- 
 penses, or in other similar objects, the remainder shall be divided between the foreign 
 holders of Peruvian bonds, in whose favor the guano deposits have been mortgaged. 
 
 Provisional article. Until the committee, mentioned in article 1, be named, Mr. 
 John Proctor is authorized to arrange provisionally the mode of shipment, he. being 
 empowered to use for that purpose the material in possession of the government. 
 
 Let this be published, noted, and communicated. 
 
 J. A. VILLAGRAN. 
 
 Xo. 77. 
 
 Mr. Ei-arts to Mr. Osborn. 
 [Confidential.] 
 
 No. 85.] Department of State, 
 
 Washington, March 9, 1880. 
 Sir : The indications which reach this government from trustworthy 
 sources, and among others from the legation at Lima, point to uneasi- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 107 
 
 ness on the part of the governments of Great Britain, France, and Ger- 
 many, with respect to the duration and tendency of the existing South 
 American war, and to the exertion of considerable pressure by them on 
 the contestants, and especially on Pern, to induce a speedy termination 
 of the struggle. 
 
 It is not thought that this movement looks to a removal of the pro- 
 jected intervention in settlement of the quarrel, which was in contem- 
 plation last year. It is rather more probable that the almost continuous 
 successes of Chili hitherto, and the distracted internal condition of her 
 principal opponent, may induce the European powers to use effective 
 arguments to bring about a practical surrender on the part of Peru and 
 _ Bolivia. On the other hand, it is possible that the pressure in favor of 
 " a settlement, of mutual advantage to the commerce of those countries 
 with the three States at war, may be exerted at Santiago as well as at 
 Lima and La Paz, and that such arguments may be supported by sug- 
 gestion of intervention if not accepted. 
 
 If, however, any renewal of the idea of European joint intervention 
 should take shape, it is conceived that its application would encounter 
 resistance on the part of all three of the belligerent governments, and 
 that in such a contingency they would more naturally turn to the United 
 States for counsel and arbitration. 
 
 Chili, as well as Peru and Bolivia, is already aware of the disposition 
 of this government with regard to mediation, and its willingness to act 
 as peacemaker if assured by all the parties to the struggle that its peace- 
 able intervention would be acceptable and unhampered by any conditions 
 in disparagement of belligerent rights. It is, therefore, at the present 
 time unnecessary to again instruct you on this point, further than to 
 observe that should the pressure of foreign governments upon the com- 
 batants tend to assume a coercive character, your attitude should be 
 such as to facilitate a joint and friendly resort to the good offices of the 
 United States. In such an event, requiring prompt action, perhaps, 
 before the instructions of this government could be asked and received, 
 the Department would place much reliance upon your own good judg- 
 ment. 
 
 An instruction identical with the present is sent by to-day's mail to 
 Mr. Christiancy, at Lima, and Mr. Pettis, at La Paz, with whom you are 
 counseled to continue the friendly conferences and consultations by let- 
 ter which have heretofore been so beneficial to the conduct of the inti- 
 mately related affairs of your respective legations. 
 I am, &c, 
 
 WM. M. EVARTS. 
 
 Same to United States minister, Peru. 
 
 No. 78. 
 
 Mr. Eccirts to Mr. Osborn. 
 
 No. 87.] Department of State, 
 
 Washington, April 13, 1880. 
 
 Sir : I have to acknowledge the receipt of your No. 132, in which you 
 
 inclose a copy of a note from the Chilian minister of foreign affairs, 
 
 soliciting the friendly offices of the legations of the United States at La 
 
 Paz and Santiago, in securing an exchange of prisoners of war between 
 
108 
 
 AFFAIKS IN CHILI, PEKU, AND BOLIVIA. 
 
 Chili and Bolivia, and to say in reply that Mr. Adams, who succeeds 
 Mr. Pettis in the mission to Bolivia, presently departs for his post at La 
 Paz and will be instructed in the direction desired. The person in 
 charge of the archives of the legation at La Paz is not authorized to act 
 in a diplomatic sense. 
 I am, &c, 
 
 WM. M. BVAETS. 
 
 No. 79. 
 
 2Ir. Evarts to Mr. Osborn. 
 
 ]STo. 88.] Department op State, 
 
 "Washington, April 14, 1880. 
 
 Sir : I have to acknowledge the receipt of your ~So. 131, communi- 
 cating information of the order made by the Chilian minister of war and 
 marine to the chief officer of the navy to bombard all cities and towns 
 and destroy all moles and launches of the enemy, where practicable, 
 and in reply to approve the spirit and purpose of your note (a copy of 
 which you inclose) to the minister of foreign relations of Chili on the 
 subject of that order. 
 
 Commending the method you employed of expressing your views iu 
 the premises by a separate note rather than in connection with your 
 colleagues, I conclude by observing that this government desires you 
 to make every proper effort to restrict to collisions of a military charac- 
 ter the cruelties and destruction of life and property involved in the 
 prosecution of this deplorable war. 
 I am, &c, 
 
 WM. M. EYAKTS. 
 
 No. 80. 
 
 Mr. Evarts to Mr. Osborn. 
 
 Xo. 89.] Department op State, 
 
 Washington, April 23, 1880. 
 Sir : I transmit herein for your information a copy of a late instruc- 
 tion* sent to Mr. Adams, the newly appointed minister of the United 
 States to Bolivia, respecting a proposition of Chili, touching an ex- 
 change between those countries of prisoners of war. 
 I am, &c, 
 
 WM. M. EVAETS. 
 
 See Mr. Evartb's instruction to Mr. Adams, ante, document No. 22. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 109 
 
 NO. 81. 
 Mr. Asta-J3uruaga to Mr. Uvarts. 
 [Translation.] 
 
 Legation of Chili in the United States, 
 
 Washington, April 24, 1880. (Received April 26.) 
 
 Sik : Iu the conference which I yesterday had the honor to have with 
 your excellency, in relation to the war in Avhich my country is involved 
 with Peru and Bolivia, you informed me that you had received official 
 advices from the former of those republics, to which, in view of their 
 gravity, you deemed it indispen sable to call my attention. 
 
 By those advices 5 r our excellency was informed that the corvette 
 Chacabuco and the transport Loa had appeared, on the 10th of March 
 last, off the island of Lobos de Afuera, and that after notifying the gov- 
 ernor of the island of the object of their visit, they had proceeded to 
 burn and destroy the wharf, platforms, cars, boats, and other appurte- 
 nances of the port, and to .take on board everything movable that they 
 could find on the island, including mules, horses, cattle, and provisions, 
 belonging both to the company which is engaged in taking guano there, 
 and to the store of the parties who supply it with provisions (over which 
 the flag of the English consul was floating), without leaving anything 
 on the island for the inhabitants to eat, save a quantity of rice and 
 jerked beef sufficient to last them for eight days ; that the commander 
 of the Chilian vessels had declared, on performing these acts, that he 
 had positive orders to take whatever he could find, to await re-enforce- 
 ments, and then to destroy all the ports of Peru between Paita and Cal- 
 lao. Finally, that without any provocation on the part of the inhabit- 
 ants, and without any warning to them, shots had been fired at their 
 dwellings. 
 
 Your excellency further informed me that you had also received offi- 
 cial advices that instructions had recently been issued by the ministry of 
 war and marine to the Chilian squadron in the sense stated by the afore- 
 said commander, and that you were likewise informed that, as regarded 
 those orders, representations had been addressed to the Government of 
 Chili by the diplomatic ministers accredited to it, in behalf of neutral 
 interests in Peru and Bolivia ; your excellency observing that, in view 
 of this intelligence, and since it was proposed to destroy property in 
 those ports, ninety per cent, of which was understood to belong to for- 
 eigners, a large proportion belonging to North American citizens was 
 thereby endangered, for which reason you requested me to give you some 
 satisfactory explanation concerning the nature of these proceedings, and 
 the reasons which had led to the adoption of such extreme war meas- 
 ure?, since such acts of hostility affected not only the combatants and 
 other inhabitants, but also neutrals, whose property and commerce 
 thereby received injuries for which it was the duty of their respective 
 governments to demand reparation, in the interest of their citizens. 
 Your excellency remarked that you referred to this state of things in 
 order that I might call the attention of my government to it, as like- 
 wise to the view which was taken of its action, reminding me that dur- 
 ing the course of this war, the government of this country had uniformly 
 maintained strict neutrality, notwithstanding the fact that it had been 
 urged, in various quarters, to assume a different attitude. 
 
 To all the above statements made by your excellency in the aforesaid 
 
110 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 coDference, I had the honor to reply that I had no knowledge of the facts 
 alleged, hut that I would refer them to my government, together with 
 your excellency's observations, feeling confident that it would hasten to 
 rectify the inaccuracy with which I thought that those facts had reached 
 your excellency, and to manifest the legitimacy with which hostilities 
 are adopted, even to a rigorous degree, under the present circumstances 
 of the war, for the purpose of completely subduing the enemy. 
 
 I nevertheless think it proper for me, in the mean time, to give you an 
 idea of the line of conduct that has been followed in this war, in which 
 Chili was forced to engage in defense of her rights. 
 
 In the early part of the war, Chili carried on hostilities against the 
 two allied republics with extreme mildness, respecting the property of 
 her enemies even to excess. Sire made war, arms against arms, without 
 the rigor which is authorized by a state of war, or by the necessity of 
 putting a speedy end to a deplorable and ruinous struggle, in order to 
 reestablish peace on a solid and permanent basis. The prevalence of a 
 state of war allowed her, however, within the sphere recognized by 
 civilized nations, to disable and destroy her armed enemies, and who- 
 ever in any way, even incidentally, took part in warlike operations 
 against her; to render useless or destroy any property belonging to her 
 enemies, and any means of communication and traffic; to deprive the 
 enemy of all resources, provisions, and means of subsistence, and. it' 
 military necessity required it, to extend her action with the same legiti- 
 macy to all inhabitants and property in the hostile country, so as to 
 render it unable to continue hostilities. 
 
 A precedent for this course is found in the war in this country in 
 1861-65. and in the recent European wars. 
 
 Chili did not do so. She now, however, finds herself obliged to com- 
 ply with the demands of a military necessity, although she is careful 
 not to disregard the dictates of humanity and the precepts of interna- 
 tional law; she is obliged to do so by the conduct of her enemies, who t 
 as is shown by Peruvian official documents, conduct hostilities on land 
 by illicit means, and carry on an irregular warfare with armed prowlers. 
 Nothing, therefore, remains for my government but to adopt severe re- 
 pressive measures against hostilities of that character, iu order not to 
 prolong the contest indefinitely, at an immense sacrifice of blood and 
 treasure, and to the great detriment of even foreign commerce. Under 
 these circumstances, it is not strange if Chili has ordered the bom- 
 bardment of armed ports whence resources are procured for the enemy, 
 or that she should cripple the activity of railways and other means of 
 communication which enable him to transport troops and munitions of 
 war; nor is it strange, that she should order the destruction of wharves, 
 apparatus, and material intended to facilitate the loading and unloading 
 of vessels, and to serve to maintain establishments like that of the 
 island of Lobos, from the working of which the Government of Peru de- 
 rives means to continue the war. Those establishments, moreover, in 
 several of the ports, even if controlled by neutrals residing there or as- 
 sociated with enemies, partake of the same hostile character. 
 
 If, through hostilities which are performed through military necessity, 
 the property or, interests of foreigners residing in the enemy's country 
 are injured, it is an evil similar to many others which emanate from the 
 exceptional condition of a state of war. My government, however, has 
 endeavored to avoid, as far as possible, doing injury to neutrals residing 
 in the territory of the enemy, and I make bold to assert that it cannot 
 be justly charged with doing anything detrimental to those interests 
 without imperious necessity. Nevertheless, it is a recognized rule of 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. Ill 
 
 international law that if a neutral suffers injury through the unavoid- 
 able hostile acts of a belligerent, he does not thereby acquire a claim 
 to indemnity '; because, if he has preferred to continue or comes to re- 
 side in a belligerent country after the commencement of hostilities, it 
 has been his intention to submit to all the contingencies consequent 
 upon a, state of war. 
 
 There is still another circumstance to which I will take the liberty of 
 calling your excellency's attention, and it is that the bulk of the property 
 in the ports of Peru has been transferred, perhaps surreptitiously, to 
 foreign hands, since the beginning of the war, with a view to investing 
 it with a neutral character, which explains why so large a proportion of 
 that property has been represented to you as belonging to foreigners. 
 
 Yet, in spite of all, I can likewise assure your excellency that the Gov- 
 ernment of Chili, with the fairness and justice that characterize it in its 
 dealings with friendly nations, will not refuse to make such reparation 
 as may be called for by sound reason and the recognized principles of 
 international law, and it hopes that the claims which it may prefer on 
 account of the acts of foreign citizens during the war will be considered 
 in the same spirit of reciprocity. 
 
 Hoping, sir, that the contents of this note will be satisfactory upon 
 some of the points which formed the subject of our yesterday's conver- 
 sation, until I shall have reported them to my government, so that it 
 may explain them more fully, I have the honor, to avail myself of this 
 occasion to reiterate to your excellency the assurances of my most dis- 
 tinguished consideration. 
 
 F. S. ASTA-BURUAGA. 
 
 No. 82. 
 Mr. Osborn to Mr. Evarts. 
 
 •No. 143.1 Legation of the United States, 
 
 Santiago, Chili, April 30, 1880. (Received June 5, 1880.) 
 
 Sir: Referring to your dispatch No. 83, concerning the destruction 
 by the Chilian fleet of certain property of the American Oil Company 
 at Talara, Peru, and the seizure at the Lobos Islands of a launch at- 
 tached to an American tug-boat, I have to inform you that the instruc- 
 tions therein contained have been duly observed. 
 
 1 The information which I have been enabled to obtain, bearing upou 
 ' this subject, is exceedingly meager, yet I judge that I am sufficiently ac- 
 quainted with the facts to warrant the conclusion that the destruction 
 of the property at Talara, at least, was without justification. Talara is 
 far removed from the field of actual military and naval operations, and 
 if the property destroyed had been used, or if it was in condition to be 
 used, to further the prospects of Peru in the war, I am not advised 
 thereof. 
 
 My information in regard to these matters is limited to a copy of the 
 letter of Consul Mountjoy written to Mr. Christiancy, under date of 
 January 3. By referring to your copy of this letter you will see that 
 the information furnished, touching the affairs at Lobos Islands, is 
 based entirely upon a conversation with a Peruvian official at that 
 point, and while it may be correct in every particular, I am as yet with- 
 out testimony confirming it. It is true, however, that this government 
 
112 AFFAIRS IN CHILI, PERU, AXD BOLIVIA. 
 
 has asserted from the beginning of the war that Peru should not be per- 
 mitted to export guano or nitre, and to that end has insisted upon the 
 right to destroy in the various ports used for these purposes the means 
 by which these articles have been loaded. Early in the war her navy 
 destroyed the moles and launches at the guano deposits of Pabellon de 
 Pica and Huanillos. The loss was very great, and the owners, who 
 were British subjects residing in Great Britain, had the earnest sup- 
 port of their government in an effort to obtain assurances from Chili 
 that they should not be again molested if they should repair their moles 
 and launches. The note of Lerd Saulsbury was, I am credibly in- 
 formed, somewhat dictatorial in its tone, but it accomplished nothing. 
 The guano deposits are, it will be borne in mind, the property of the 
 Peruvian government, and it was contended here.that Peru relied upon 
 the exportations froih them for means with which to carry on the war. 
 That Peru has been very materially crippled in the finances by Chin's 
 course in this matter will not admit of a doubt. 
 
 The Lobos Islands contain large beds of guano, and I infer that the 
 launch referred to was seized to prevent its being used in loading that 
 article. 
 
 I may add that the naval officer under whose immediate direction the 
 acts complained of were committed was a rash man,, and that he has 
 since paid with his life for his excessive temerity. 
 
 I have reason to believe that the government has cautioned its naval 
 officers against a repetition of such scenes as that at Talara. But while 
 the war lasts I feel confident that Chili will endeavor to maintain her 
 position regarding the exportation of guano. 
 I have, &c, 
 
 THOMAS A. OSBOBK 
 
 Xo. S3. 
 
 Mr. Osborn to Mr. Evarts. 
 
 ~So. 148.] Legation of the United States, 
 
 Santiago, Chili, May 20, 1880. (Eeceived June 26.) 
 
 Sir : For your information I inclose a copy of a communication writ- 
 ten by me to Mr. Christiancy, regarding the war between these repub- 
 lics, in which 1 have discussed somewhat briefly the prospects of peace, 
 the probabilities of intervention by the European powers, and the 
 methods by which our government could make its good offices available 
 if our friendly mediation should be desired by the belligerents, and I 
 wish especially to direct your attention to what is said on the latter 
 branch of the subject, beginning on page 4. 
 
 It seems to me plain that if friendly mediation should be agreed upon, 
 an early conference of duly empowered representatives of the belligerent 
 governments would be a necessity. A discussionof the questions at issue 
 could hardly be carried on in any other manner. The distance inter- 
 vening, and the difficulties in the way of communicating by mail, would, 
 in my judgment, render impracticable the holding of such conference at 
 Washington, and I conclude that some point on this coast would be 
 fixed for its sessions. You will observe my suggestions as to the course 
 which should be observed by our diplomatic representatives in connec- 
 tion with such conference if it should take place. We could not expect 
 to be of much service to the belligerents in arranging their difficulties 
 
APPAIES IN CHILI, PERU, AND BOLIVIA. 113 
 
 unless some authorized representative of our government could be pres- 
 ent at the conference and assist therein, and the course suggested seemed 
 to me the most practicable in the absence of instructions from the De- 
 partment on that point. If peace could be secured without resorting to 
 the conference, of course it should be done, but I do not regard such a 
 result as probable. 
 
 Should my views on this subject be in harmony with those of the State 
 Department it might be well, I respectfully submit, that the aid of the 
 Navy Department should be solicited in carrying them into effect. In 
 the contingency referred to it seems to me that the representatives of 
 the Government of the United States having in charge this business 
 should have at their disposal a naval vessel. 
 
 My suggestions are all made, of course, in contemplation of the con- 
 tingency spoken of — a contingency which is liable to happen at any time, 
 and which may, on the other hand, never occur. 
 
 I fail to discover any evidence here of a disposition on the part of the 
 European powers to dictate to this government regarding the settlement 
 of this controversy. Should such disposition manifest itself, however, 
 and should it tend in the direction of armed intervention, I do not 
 doubt that this government would solicit counsel and advice from the 
 United States. It is unnecessary, I judge, that I should assure you that 
 your instructions on this subject, embraced in your No. 85, shall be care- 
 fully observed. 
 
 It may be added that the Government of Chili is fully informed as to 
 the willingness of that of t-he United States to use its good offices in the 
 way of friendly mediation for the purpose of bringing about a peace 
 when it shall be assured that its services to that end would be accepta- 
 ble to all the belligerents. 
 I have, &c., 
 
 THOMAS A. OSBOEN. 
 
 [Inclosnre 1 in No. 148.] 
 
 Mr. Osborn to Mr. Chfiaiiancy. 
 
 Legation of the United States. 
 
 Santiago, Chili, May 13, 1880. 
 
 Sir : There prevails here to some extent among well-informed people an impression 
 that following the battle which will probably be fought in a few days at Taona, if its 
 result should be favorable to Chili, negotiations between the belligerents will be 
 opened, having in view the accomplishment of peace. The government officials have 
 not discouraged the growth of this sentiment, and I am credibly informed that the 
 President has stated that after this battle a proposition will be submitted to Peru for 
 its consideration. I have no special means of knowing the terms of the contemplated 
 proposition, but judge that it will include a relinquishment by Peru in some form of 
 the province of Tarapaca\ It could not do less and meet wiih the popular approval. 
 Possibly, it may in substance contemplate an acknowledgment by Peru of an obliga- 
 tion to pay Chili's expenses in the war, and the right of the latter to occupy TarapacS 
 until such payment shall be made. 
 
 It is possible, however, if not; probable, that the government may change its mind, 
 and that no proposition whatever will be made. If the allies should be successful in 
 the battle, an event which is not regarded as possible here, of course the idea would 
 be abandoned. You best know how the terms suggested would be received by Peru, 
 but my impressions incline me to the belief that they would not be acoepted. It occurs 
 to me, however, that perhaps an arrangement might be made which would acknowl- 
 edge the obligation of Peru as above stated, but should leave the settlement of the 
 amount of the expenses, together with the determination of all rights and equities in 
 the nitre and guano in the district referred to, to arbitration. I merely suggest this 
 that you may give it thought, if you think it worthy of consideration. Such a project 
 would, I judge, receive the moral support of the European powers, and I know of no 
 
 S. Ex. 79 8 
 
ili AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 reason why it should not be favorably looked upon by our government. The arbi- 
 trator would, I assume, be the United States, in ease a resort to arbitration should he 
 had upon auy basis. 
 
 Now as to mediation. As I have written you heretofore, there is no evidence here, 
 in so far as I can observe, of a contemplated intervention by the European powers, 
 and but for the instruction from the State Department, of which I have spoken in a 
 former communication, I should regard the probability of such a proceeding; at this 
 time as exceedingly doubtful. In view of this instruction, however, I feel constrained 
 to regard the contingency as liable to occur. I assume that, in such an event, the 
 good offices of our government would be very acceptable to all of the belligerents. It 
 occurs to me, then, that we should endeavor to arrive at some understanding regard- 
 ing the means by which the friendly mediation of our government can be made avail- 
 able. Prompt action would doubtless be required, and it Is therefore important, in 
 my judgment, that we should by comparison of views labor to comprehend each other 
 fully, and to place ourselves in perfect accord. 
 
 Upon the tender and acceptance of the good offices of our government it strikes me 
 that the first thing to be done is to bring about a conference at some suitable point of 
 duly empowered representatives of the belligerent governments. 
 
 At this conference the United States ministers in the belligerent countries should 
 attend and assist, and it might be convenient and proper to hold it on an American 
 man-of-war. Our naval commanders would doubtless accede to any proper request 
 which might be made of them in this connection. It may become very important 
 that communications between our respective legations should be transmitted at a 
 more rapid rate than the mails are carried. In such a contingency I do not doubt that 
 our naval officers would afford us all proper assistance. You are in the vicinity of the 
 seat of war, and will probably be informed of any movement in the direction indi- 
 cated before knowledge of it can reach me. 
 
 If at any time it shall appear that the Government of Pern is ready to accept friendly 
 mediation by the United States on the basis suggested by the State Department, I 
 trust you will not fail to cause me to be promptly informed thereof ; and I will thank 
 you also for any information which you may give me" concerning the disposition of 
 Bolivia in this regard. As I understand it, neither of them has as yet signified its de- 
 sire to that end. This is true also of Chili, but. I feel quite confident that if I could 
 positively assure this government that Peru and Bolivia were desirous of our good 
 offices, an expression of its willingness to accept would not long be withheld. 
 
 I beg that you will write me generally ou the matters herein discussed. I shall 
 send a copy of this communication to the State Department for its information. 
 Very respectfullv, &c, 
 
 THOMAS A. OSBORN. 
 
 P. S. — I observe that a new minister has been appointed for Bolivia. The difficul- 
 ties attending the transmission of communications from here to La Paz are very great, 
 and it appears to me that the burden of conducting the correspondence with that lega- 
 tion on this subject will necessarily fall upon you. 
 
 Yours, OSBORN. 
 
 Xo. 84. 
 Mr. Osborn to Mr. JBvarts. 
 
 No. 149.] Legation of the United States, 
 
 Santiago, Chili, May 21, 1880. (Beceived June 26.) 
 Sir: Pursuant to an invitation from the minister of foreign relatioas, 
 I to-day had an interview with him concerning our consulate at lquique. 
 The Chilian military governor at that point, Captain Lynch, has re- 
 peatedly charged that Dr. Merriam was unfaithful to his obligations aa 
 a neutral, and that his consulate was being used in the interest of Peru 
 in the present war. In a conversation which we had some six weeks 
 ago, Captain L. stated that he was quite confident that Merriam had 
 taken advantage of his position to afford thePeruvian Government means 
 of communicating with its southern army at Arica. Merriam, knowing 
 of the suspicions concerning him, addressed me a letter denying that he 
 had been guilty of any impropriety. There the matter rested until to- 
 day, when the foreign minister told me that he had positive evidence 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 115 
 
 that our consulate at Iquique was being used as had been charged by 
 Captain Lynch. 
 
 I replied that I did not doubt that Merriam's sympathies were on the 
 side of Peru, for his wife and children were Peruvians; but if he was 
 at liberty to give me the evidence upon which he based his conclusion I 
 would be obliged to him. In reply, he said there was no doubt of the 
 facts, and he then sent for and exhibited to me an official envelope ad- 
 dressed to the minister of war at Lima, in which was contained an official 
 letter, signed by General Montero, the Peruvian director-general of the 
 war at Arica. "This," said he, " was in transit to Consul Merriam for the 
 purpose of having it forwarded to Lima by the mail steamer;" bat just 
 how the government got possession of it he did not tell me. The minis- 
 ter says the government is much displeased with the conduct of Consul 
 Merriam, and he thinks he should be promptly removed from his posi- 
 tion. In this opinion, in view of the evidence submitted to me to-day, I 
 fully concur, and it seems to me that his displacement cannot be too soon 
 brought about. There are several Americans in Iquique who are com- 
 petent for the position, either one of whom would, I judge, take tempo- 
 rary charge of the consulate if asked. 
 
 By this mail I write to Mr. Christiancy on the subject. If the Iquique 
 consulate were recognized as being within the supervision of this lega- 
 tion, I would not hesitate a moment to place it in temporary charge of 
 another person, as the minister politely requested I should, but under 
 the circumstances I have deemed it prudent to confer with my colleague 
 at Lima. 
 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 No. 85. 
 Mr. Hay to Mr. Osborn. 
 
 No. 98.] DEPARTMENT OF STATE, 
 
 Washington, July 15, 1880. 
 Sir: Referring to your No. 131, touching your action with respect to 
 the order of the Government of Chili as to the prosecution of the war 
 with Peru and Bolivia, I have to observe that no reply to your note to 
 the foreign office at that juncture has yet been communicated to the 
 Department, and to inquire if any has been received by you, or if any 
 of your colleagues have been since addressed on the subject, so far as 
 you are aware. 
 1 am, &c. 
 
 JOHN HAY, 
 Acting Secretary. 
 
116 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 86. 
 Mr. Evarts to Mr. Osborn. 
 
 [Telegram.] 
 
 Washington, July 29, 1880. 
 Osborn, Minister, Santiago, Chili : 
 
 Press upon Chilian Government our desire to aid in restoring peace 
 on honorable terms between nations to which we are sincerely and 
 equally friendly. A like instruction is sent to-day to Lima. 
 
 EVAETS, 
 
 Secretary. 
 
 No. 87. 
 
 Mr. Evarts to Mr. Osborn. 
 
 No. 101.] Department of State, 
 
 Washington, July 30, 1880, 
 Sir : I have to acknowledge the receipt of your dispatch, No. 148, of 
 the 20th May last, in which you inclose a copy of a letter addressed by 
 you to Mr. Christiancy in reference to the. prospects of peace between 
 the contending powers on the Pacific coast, and suggesting a method 
 by which the Government of the United States might make its good of- 
 fices available in the way of mediation. On the 29th instant I tele- 
 graphed you as follows : 
 
 Press upon Chilian Government our desire to aid in restoring peace on honorable 
 terms between nations to which we are sincerely and equally friendly. A like in- 
 struction is sent to-day to Lima. 
 
 The Department approves the tenor of your letter to Mr. Christiancy, 
 above referred to, and will so inform that minister by to-day's mail. 
 I am, sir, &c, 
 
 WM. M. EVAETS. 
 
 No. 88. 
 Mr. Osborn to Mr. Evarts. 
 
 No. 155.] Legation of the United States, 
 
 Santiago, Chili, August i, 1880. (Eeceived September 17.) 
 
 Sir: I inclose a copy of a letter which I have written to Mr. Chris- 
 tiancy regarding some movements made here by a portion of the Euro- 
 pean legations, with a view of removing the obstacles to peace, and I 
 beg of you to regard it as a part of this dispatch. 
 
 The legations which took part in the movement were those of France, 
 Italy, and Great Britain, but the minister of the latter took but little 
 interest in it and seemed to regard it as futile. There was nothing 
 which indicated even in the remotest degree a disposition on the part of 
 the European powers to dictate terms to Chili, nor was there the slight- 
 est evidence of an intention to urge a peace except with the full and 
 free consent of the belligerents. In answer to a suggestion from me, the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 117 
 
 Italian minister said quite emphatically that European intervention with 
 force was not to be thought of. 
 
 I am not aware that the German minister, Baron von Gtilich, was con- 
 sulted in this matter. He is about to depart for his home in Europe on 
 leave of absence, and I therefore conclude that the German Government 
 has in contemplation no movement of an extraordinary character in this 
 part of the world. I see no reason to hope for an early conclusion of 
 the war. Public opinion here emphatically demands Tarapaca, and I 
 fear that Peru is determined to continue the desperate and apparently 
 hopeless struggle rather than cede it. This fear is based, in part, upon 
 the fact that my suggestions to Mr. Christiancy, under date of May 13, 
 have met with no response from him. 
 
 There are some- men of influence here who would welcome a peace 
 without exacting the district of territory mentioned, but they see fit to 
 reserve their views to this effect from the public. A successor to Presi- 
 dent Pinto is to be elected in April next, and the desire of the party in 
 power to continue in control has tended to make of an exceedingly care- 
 ful administration a timid one. The government is inclined to follow 
 public opinion rather than to attempt to lead it. 
 
 The army has been remitted to its strength prior to the late battles 
 in Southern Peru, and I judge that it now contains about 25,000 effective 
 men. Much discontent pervades it at the delay of the government in 
 giving the order to march on Lima. The government is, for obvious 
 reasons, exceedingly desirous of avoiding a campaign against Lima, and 
 will, I judge, for the present occupy the army with expeditions to Northern 
 Peru. 
 
 I have, &c, 
 
 THOMAS A. OSBOEN. 
 
 [Inclosure in No. 155. ] 
 
 Mr. Osborn to Mr. Christiancy. 
 
 Legation of the United States, 
 
 Santiagc, Chill, July 31, 1880. 
 
 Sir: During the present week there has been considerable discussion here among 
 members of the diplomatic corps, and between some of them and the President and 
 his advisers, regarding the difficulties which stand in the way of a peace between these 
 countries. The discussion seems to have originated in the receipt of advices, by some 
 of the European ministers, from their colleagues in Lima, from which it is inferred 
 that President Pierola is desirous of peace, and that he would be willing to enter into 
 negotiations for its accomplishment, even though he might know that it would cost 
 him the province .of Tarapaca\ I need not say to you that'I was not of those who so 
 presented the matter to the government here. The fact that the suggestions upon 
 this subject, contained in my letter to you of May 13, have elicited no response, was 
 strong evidence to my mind that, however much I might wish it otherwise, my friends 
 in the European legations had been misled touching the disposition of Peru. How- 
 ever, be the information well founded or otherwise, by means of the conferences re- 
 ferred to a definite understanding has been reached regarding the basis upon which 
 Chili will consent to enter into negotiations. President Pinto directed that the details 
 of the' conferences should be laid before me, and I am, therefore, able to put you in 
 possession of the conclusions reached. I will state them as briefly as possible. 
 
 President Pinto is anxious to conclude a peace, and will appoint ambassadors for 
 that purpose, with full powers, when he shall be assured from an authoritative source 
 that President Pierola is alike, anxious and that he is desirous of entering into nego- 
 tiations. 
 
 Before arriving at a definite conclusion in the affirmative, however, President Pierola 
 should be fully advised of the conditions which Chili will impose. In consideration 
 of the injuries sustained by Chili, by reason of the war, she will insist upon retaining 
 the province of Tarapaca\ No other conditions will be imposed, but she will with- 
 draw from the country now occupied by her army in the neighborhood of Arica, mak- 
 
118 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 jug the river Camarones the line of division between the two countries, She will 
 respect private rights in the province mentioned as the same are defined by the 
 authorities on international law regarding territory similarly acquired. Antofagasta, 
 and the ports to the north thereof will be made, for the purposes of Bolivian com- 
 merce, free ports. 
 
 That is all. There is, it is true, quite a sentiment here demanding that other and, 
 more severe conditions should be imposed, and I am quite sure that the government 
 will subject itself to much censure if it shall conclude the war on the basis suggested. 
 It is possible that these terms are quite as liberal as the government would dare to- 
 subscribe to in the condition in which we fiijd public opinion. President Pinto ex- 
 presses himself quite averse to the imposition upon Peru of humiliating conditions,, 
 and I am convinced that he is disposed to exact no more than the circumstances seem 
 to require. Nothing was said regarding Bolivia, except that she could have free com- 
 merce as stated. The disposition of her government does not seem to have been con- 
 sidered. 
 
 Now, as to the assurances demanded as to Peru's purposes. What the government 
 here requires, before proceeding with the appointment of ambassadors, is a positive 
 assurance from one or more of the foreign legations to the effect that the Peruvian 
 Government is sincerely desirous of peace and is ready to negotiate as before stated. 
 The authority to give such assurance must be derived, of course, from the conference 
 of their colleagues in Lima with the government there. 
 
 If there should be a conference of ambassadors. Chili would not object to its taking 
 place on board a neutral man-of-war at any point on the coast, but Arica would seem 
 to be the mostdesirable point. If such conference should include all the belligerents, 
 by all means it should take place on an American ship. Some of the European min- 
 isters here, who have more faith in this movement than I have, would, I am informed, 
 be pleased to appoint the conference on a European man-of-war. 
 
 I still think that mediation suggests the most feasible way out of this difficulty- 
 Now that the allies are to be informed of the terms which Chili will impose, they will 
 be able the more intelligently to consider whether they can be served by mediation 
 or not. I think it highly probable that, through mediation, other andmore satisfactory 
 terms, perhaps, could be obtained for Bolivia. On this point, however, I do not 
 speak by authority. * * * Public sentiment here is quite the reverse of hostile to- 
 Bolivia, and I infer that the government would welcome a settlement on terms which 
 should promise a lasting peace. 
 
 Simultaneously with this will go forward letters from the European ministers to 
 their colleagues in Lima, touching the matters herein discussed. The Italian and 
 French representatives seem to have been the most active in the matter, but I hear 
 the opinion of Mr. St. John, of the British legation in Lima, quoted as a reason for the 
 hope that the Peruvian Government will be found ready to treat on the terms pro- 
 posed. 
 
 Tarapaca has been the bane of Peru, as it will be also, I fear, of Chili if she shall con- 
 tinue to retain it. Congress and the press are already almost exclusively occupied in 
 the discussion of subjects pertaining to it, and it threatens to beeome a source of se- 
 rious trouble to the country. Chili makes a great mistake in reaching out for it, in my 
 judgment, on more accounts than one. Peru without it is infinitely better off than 
 with it. It strikes me that Peru has a grand future before her if she can but have 
 peace. She has had many difficulties to contend with in the past, the most of which 
 were the outgrowth of Tarapaca. With that cause removed , she only needs peace to 
 insure her prosperity and greatness. 
 Very respectfully, &c, 
 
 THOMAS A. OSBORN. 
 
 ¥0. 89. 
 
 Mr. Osborn to Mr. Evarts. 
 [Telegram.] 
 Santiago, August 11, 1880. (Keceived August 13.) 
 
 Evarts, Washington: 
 
 Chili will accept mediation in form suggested my dispatch May- 
 twentieth. 
 
 OSBOHN, 
 
 Santiago* 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 119 
 
 No. 90. 
 
 Mr. Osborn to Mr. JSvarts. 
 
 No. 156.] Legation of the United Seates, 
 
 Santiago, Chili, August 12, 1880. (Received September 25.) 
 Sir : On the 6th instant I received the following telegraphic message, 
 without date, to wit : 
 
 Osborn, Minister, Santiago : 
 
 Press upon Chilian Government our desire to aid in restoring peace on honorable 
 terms between nations to which we are sincerely and equally friendly. A like instruc- 
 tion is sent to-day to Lima. 
 
 EVARTS, 
 
 Secretary. 
 
 Later in the day I had an interview with President Pinto and Mr. 
 Valderama, the foreign minister, regarding the subject of your message, 
 in the course of which I urged in as strong terms as seemed prudent 
 the propriety of the belligerents calling to their aid in the present emer- 
 gency the friendly efforts of our government. The President expressed 
 his gratitude for the generous and friendly manifestations by the United 
 States, but spoke of the long distance intervening and the difficulties in 
 the way of communicating between Santiago and Washington, as serious 
 obstacles in the way of mediation. After considerable discussion the 
 President expressed himself satisfied, personally, with the form of 
 mediation suggested by me to the Department in my dispatch No. 148, 
 of the 20th of May last, and said that he would consult his advisers, 
 and inform me as soon as possible if mediation on that basis would be 
 accepted. I was careful to inform him that I was not prepared to say 
 positively that the mode proposed would receive the sanction of my 
 government, but that I trusted soon to hear that my suggestions to that 
 end. had been favorably considered. 
 
 On the 10th instant I had a further interview with Minister Valde- 
 rama, and received from him the assurance that mediation in the form 1 
 suggested would be accepted by Chili. We therefore agreed upon a 
 memorandum of the interviews referred to, a copy of which I inclose. 
 
 The minister concurred in my suggestion to the effect that a formal 
 tender of mediation should be deferred until I could be further informed 
 regarding the purposes of the other belligerents, and until advices 
 should be received from Washington touching the proposed manner of 
 proceeding. If, therefore, you have not already instructed me in this 
 matter, it might be well, upon the receipt of this, to do so briefly by 
 telegraph. 
 
 On the 11th instant I telegraphed you as follows : 
 Evarts, Washington: 
 
 Chili will accept mediation in form suggested my dispatch May 20. 
 
 OSBORN. 
 
 I have also written to Mr. Christiancy and to Mr. Adams, informing 
 them of the result of my efforts. 
 
 If mediation should take place in the manner suggested, you will. not 
 fail to see the importance of having the hearty co-operation of the Navy 
 Department. 
 
 A source of some embarrassment to me in this exigency is my seem- 
 ing lack of reliable information from Peru and Bolivia. I have noth- 
 ing upon this subject from the legation in Lima later than May 7. The 
 fact that Mr. Christiancy has not deemed it necessary to communicate 
 
120 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 •with, me would seem to indicate that the situation there has remained 
 unchanged. 
 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 P. S.— August 13. I am just in receipt of a letter from Mr. Chris- 
 tiancy, under date of July 14. He thinks Chili should take the initia- 
 tive in a movement toward peace. This she has now done in accepting 
 our mediation. The movement suggested might prove a failure, but I 
 believe that if the door to negotiation can once be thrown wide open 
 under the influence of our mediation, eventually a peaceful solution will 
 be reached. 
 
 Respectfully, &c, 
 
 OSBORN. 
 
 [Inclosure in TSo. 156. J 
 Memorandum of conferences. 
 
 On the 6th of August, 1880, Mr. Osbom visited President Pinto and Minister Val- 
 derama touching the subject of mediation by the United States in the present war, 
 and after some general conversation in which thejPresident expressed himself as desir- 
 ous of arriving at an early peace, Mr. Osborn read from a telegraphic message which 
 he had received from Mr. Evarts, Secretary of State of the United States, instructing 
 him to press upon the Chilian Government the desire of the United States to aid in* 
 restoring peace. 
 
 The President expressed his gratitude to the Government of the United States for 
 its kindness, but thought that the great distance intervening and the difficulties in 
 the way of mail communication presented obstacles to prompt action, if mediation 
 should mean a reference of all matters to Washington. 
 
 Mr. Osborn replied that he understood that the United States Government was de- 
 sirous of serving the belligerents in whatever way might seem best calculated to pro- 
 duce the desired result and as might to them seem advisable, but that, anticipating 
 the force of the suggestions of President Pinto in May last, he had written to the gov- 
 ernment at Washington and to his colleague in Lima suggesting that, if the United 
 States should be called upon to mediate, in his judgment, the best mode of proceeding 
 would be to request the belligerent governments to appoint duly empowered ambas- 
 sadors to meet at some point on their coast, on board an American man-of-war, and 
 there to confer regarding the settlement of their difficulties in the presence of and with 
 the advice and assistance of such ambassador or ambassadors as the United States 
 Government might designate for that purpose. To his dispatch to the foregoing effect 
 Mr. Osborn stated that he had not yet received an answer, but that he believed his 
 suggestions would prove acceptable to his government. President Pinto and Minister 
 Valderama expressed themselves as satisfied with the form suggested for mediation, 
 and the President, after a conference with his advisers, caused Mr. Osborn to be in- 
 formed, in another conference with Minister Valderama, on the 10th of August, that 
 the Chilian Government would be pleased to accept the services of the United States 
 Government in the capacity of a mediator in the form by Mr. Osborn suggested. 
 
 Santiago, August 10, 1880. 
 
 No. 91. 
 
 Mr. Hay to Mr. Osborn. 
 
 [Telegram.] 
 
 Washington, August 17, 1880. 
 Osborn, Minister, Santiago, Chili: 
 
 Tour telegram received. Instruction sent to Christiancy, asking 
 views of Peru. Your action approved and your earnest attention to 
 the matter urged. 
 
 HAY. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 121 
 
 No. 92. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No. 160.] Legation of the United States, 
 
 Santiago, Chili, August 26, 1880. (Received October 11.) 
 
 Sir : Referring to your instruction No. 83, concerning the destruction 
 by Chilian naval vessels of property belonging to American citizens at 
 Talara, Peru, and at the Lobos Islands, and to my dispatch No. 143 on the 
 same subject, I have the honor herewith to inclose an English trans- 
 lation of a note, with accompanying documents, from the Chilian minis- 
 ter of foreign relations, in answer to one from me dated April 30 last, 
 a copy of which was transmitted to the Department with my No. 152. 
 
 It will be seen that the subject of my note was referred to the minis- 
 ter of marine for explanation, and that that officer in turn directed the 
 commanding officer of the Chilian fleet to report touching the matters 
 complained of. The note of the minister of marine embraces a report 
 from the admiral, and is accompanied with a statement from the second 
 officer of the cruiser Amazonas, touching the affair at Talara. 
 
 It is alleged in justification of the burning of the launch at Talara 
 that it was entirely abandoned; that it bore evidences of having been 
 used as a coal-hulk, and that the circumstances were such as to war- 
 rant the Chilian officials in concluding that it was being used for such 
 purpose by the enemy. 
 
 Regarding the affair at Lobos Islands, the admiral says that only 
 such launches were destroyed as belonged to the company engaged in 
 loading guano, and that no indignity was offered to any neutral flag. 
 
 No proofs have been received at the legation in support of any claim 
 for damages on account of those affairs, and I have not therefore deemed 
 it necessary to present anything further to the government here on the 
 subject. 
 
 I judge that the main purpose of your instruction has been accom- 
 plished in the very observable growth of respect for neutral interests 
 in this section. 
 
 My note of the 30th of April, referred to, also called the attention of 
 the government to some alleged outrages upon one Campbell, an Ameri- 
 can citizen, by the Chilian soldiery, at Mollendo, of which subject your 
 instruction No. 90 treated. I am assured by the foreign office that the 
 commanding general of the Army has been directed to make inquiry 
 regarding this affair, but I have no information yet of his having re- 
 ported thereon. 
 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 flnclosure 1 in No.- 160. — Translation. 1 
 Mr. Valderama 1o Mr. Osbwn. 
 
 Republic of Chili, Department of Foreign Relations, 
 
 Santiago, July 27, 1880. 
 Sir : Referring to your note of the 30th of April last, relative to the destruction by 
 the Chilian squadron, at the Lobos Islands and in the inlet of Talara, of certain prop- 
 erty belonging to American citizens, I have the honor to place in your hands a copy of 
 a note, with an accompanying document, which the minister of marine has remitted to 
 me. 
 
 I approve, &c.,&c. * 
 
 MELQUIADES VALDERAMA. 
 
122 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [In closure 2 in No. 160. — Translation.] 
 
 Mr. de la Buerta to Mr. Valderama. 
 
 Republic of Chili, Department of Marine, 
 
 Santiago, June 28. 
 
 Sir : In answer to your note of the 8th ultimo, I herewith transcribe the report 
 which the commander-in-chief of the squadron has given upon the subject thereof. 
 
 " Mr. Minister: In compliance with the orders contained in your note of the 14th 
 of May, in which you ask for information regarding some incidents which occurred on 
 the coast of the north of Peru, which have caused a protest from the representative of 
 the United States in Chili, I proceed to give you the explanations of the case. 
 
 "The facts to which the honorable minister refers took place in the expedition of 
 the Blanco, the Amazonas, and the Loa, in search of a torpedo-launch belonging to the 
 enemy. On the Peruvian coast, between Paita and Tumbes, was found hidden in a 
 small inlet a launch in very bad condition, completely abandoned, and without any 
 cargo or crew on board. It contained only a few empty barrels, which were considered 
 useless. It was believed that that old and dismantled vessel was being used as a coal 
 hulk by the enemy in their frequent voyages to Panama for the purpose of procuring 
 war material, for which reason its destruction was deemed expedient. I have asked 
 for a report from the second officer of the Amazonas, who destroyed the launch, and 
 he has forwarded me the inclosed, which I herewith transmit. It would be very easy 
 to direct an official investigation of this occurrence, and it will be made if you should 
 deem it necessary. 
 
 "Having received orders to destroy the guano-loading appliances at the Lobos Is- 
 lands as a measure necessary to deprive the enemy of his resources, this measure was 
 carried into effect on the 27th of December, 1879. The only property destroyed were 
 the large launches belonging to the loading company at the islands, the wharves, and 
 platforms. It is, however, true that one or two of the captains of the merchant ves- 
 sels at first alleged that the launches belonged to them. Subsequently they ackowl- 
 edged that this was merely a subterfuge on their part to prevent the stoppage of their 
 taking cargo on board. The same attempt was made at Pubellon tie Pica, when the 
 Chilian squadron carried into effect the same necessary operation. No act of violence 
 or lack of consideration was perpetrated against neutral flags at the Lobos Islands. 
 Only such launches were destroyed as from their size and condition showed conclu- 
 sively that they did not belong to vessels. 
 
 "It has been a matter of regret to me during the present war that certain captains 
 of neutral merchant vessels, whether from interest or sympathy with the enemies of 
 Chili, in endeavoring to favor them, have sought to ignore the lawful rights of our 
 navy in its hostile operations. 
 
 " I think that the foregoing will comply with your excellency's orders as far as I 
 myself am concerned." 
 
 All of which I communicate to yon for the purposes for which it may serve, inclos- 
 ing you copy of the report of the second officer of the Amazonas, before referred to. 
 
 God protect your excellency. 
 
 GARCIA DE LA HUERTA. 
 
 [Inclosure 3 in So. 160.— Translation. 1 
 Mr. Valverde to Mr. de la ffuerta. 
 
 Blockading Squadron off Callao, 
 
 June 13, 1880. 
 
 Sir : In compliance with your excellency's orders to report upon the destruction of 
 a launch, which was burned by the cruiser Amazonas on her return voyage from 
 Panama in December of last year, the undersigned, who was executive officer on board 
 at that time, has to say : 
 
 That on the 24th of December of last year, at 10.30 a. m., upon doubling a point four 
 miles north of Talara, in latitude 4.26 south, longitnde 81.16 west, a launch was dis- 
 covered concealed in a small cove. It was wholly abandoned, and showed no signs 
 of having had a crew on board for a long time previous. It was half full of water, 
 with no cabin on deck or below, without masts or spars, in very bad condition, and 
 had some 50 old empty barrels in the hold. It showed signs of having been used for 
 a coal-hulk, the deck being in very bad condition. The locality where the launch was 
 discovered is some four or five miles to the north of some petroleum wells, which are 
 at Talara. There were no indications of any inhabitants on shore. We discovered 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 12£ 
 
 this establishment while steeling south at a distance of some iive miles, and about an 
 hour after having set fire to the launch, hence there was nobody on the spot who> 
 could have explained the fact of this launch being concealed and abandoned at that 
 place, andser ving as a coalingstationfor the enemy's transports in passing by thatplace 
 on their voyages from Panama while engaged in the transport of arms. Furthermore,, 
 the torpedo-launch, which was coming for the enemy, was expected about that time, 
 and it was to. be supposed, for the reasons given, that the launch burned was in- 
 tended for the service of the enemy. From inquiries which we made of one of the 
 English steamers, and of some Italian fishermen who were on board at the time we 
 passed Paita on our voyage to Panama, we knew that the Peruvian Government had 
 no stock of coal at the former place. 
 
 The foregoing is all that I have to communicate in compliance with your excellency's- 
 instructions. 
 
 God protect your excelleuc} 7 . 
 
 ERNESTIO VALVERDE. 
 
 No. 03. 
 
 Mr. Osbom to Mr. Hvarts. 
 
 No. 161.] Legation oe the United States, 
 
 Santiago, Chili, August 27, 1880. (Eeceived October 11.) 
 Sie : On the 20th instant I received the following telegram : 
 
 Washington, August 17. 
 Osborn, Minister, Santiago, Chili : 
 
 Your telegram received. Instruction sent to Christiancy, asking views of Peru. 
 Your action approved, and vour earnest attention to the matter urged. 
 
 HAY. 
 
 That the government here might know that my course upon the sub- 
 ject of mediation by the United States in this war had been approved 
 by the government at Washington, and as well for the purpose of still 
 further impressing them regarding your desires in this matter, I imme- 
 diately caused the President to be informed of the contents of your dis- 
 patch. He was in Valparaiso at the time, but it was telegraphed to 
 Mm in cipher, and he expressed himself in reply as much pleased there- 
 with. It now only needs the consent of the allies to place our move- 
 ment in active operation. 
 
 Upon the receipt of the above message I wrote to Mr. Christiancy at 
 Lima, and to Mr. Adams at La Paz. My communications went north on 
 the steamer which left Valparaiso on the 22d instant, that for Mr. Adams 
 going under cover to the Chilian commanding general at Arica, who 
 was instructed from here to forward it to La Paz by messenger. 
 
 I have nothing from either Lima or La Paz since I last wrote you on 
 this subject, but am just now in receipt of a telegram from Consul Poote, 
 at Valparaiso, informing me that Mr. Christiancy arrived there yester- 
 day in the Wachusett, and that he is now on his way to Santiago by 
 rail. I doubt if I shall be able to inform you by the mail steamer which 
 takes this communication of the purposes or results of his visit. 
 
 A joint dispatch has been received here by the English, French, and 
 Italian ministers from their colleagues in Lima, dated subsequent to the 
 departure of the Wachusett, forwarded by French corvette to Arica, 
 and thence by cable here, announcing the willingness of the Peruvian 
 Government to appoint an ambassador to confer with one from Chili 
 upon the request of the signers of the dispatch. This is in response to 
 communications to the purport of the inclosure of my No. 155. I am 
 assured that this government would prefer the mediation suggested by 
 
124 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 us, and I judge that time will be given us to secure a response from 
 Peru regarding the same. This dispatch may, however, cause us some 
 embarrassment. 
 
 I have, &c. 
 
 THOMAS A. OSBORN. 
 
 No. 94. 
 Mr. Osbom to Mr. Evarts. 
 [Extract.] 
 
 No. 163.] Legation of the United States. 
 
 Santiago, Chili, September 2, 1880. (Received October 11.) 
 
 Sir : Mr. Christiancy has come and gone. The Wachusett, with him 
 on board, sailed from Valparaiso on the 31st ultimo. I shall not pre- 
 sume to deal with his purposes in coming here. His own explanations 
 thereof will doubtless be more satisfactory to the Department than any- 
 thing that I might be able to offer. He undoubtedly hoped to further 
 the prospects for peace, but I am not sure that his coming has not 
 had a contrary effect. Yon can well understand that in the present 
 excited condition of the public mind such an event could not occur 
 without causing much commotion. The wildest of speculations have 
 been indulged in regarding it. The politicians have taken hold of it, 
 and if we are to judge from the tone of the press, what seemed easy 
 ten days since regarding the settlement of terms, may yet present some 
 difficulties. " To Lima ! " is the popular cry now. Many influential 
 men insist that a peace without going to Lima would prove an empty 
 one, and I fear that this sentiment may gather sufficient strength to 
 force the governmeut to yield. 
 
 Personally, I was exceedingly pleased to meet Mr. Christiancy, and 
 his visit was made as agreeable for him as possible. By the President 
 and cabinet, as well as by other distinguished citizens, he was treated 
 with much consideration. He left Lima before the arrival of my letters 
 in reference to the action of Chili concerning mediation, or your tele- 
 grams on the same subject, and he was not, therefore, prepared to say 
 what Peru would do. His impressions were, however, that the media- 
 tion already agreed to by Chili would be accepted by the belligerents, 
 and he so told President Pinto. Soon after his return to his post I hope 
 to hear that in this his judgment was correct, in which event the confer- 
 ence would be fixed for as early a day as possible, most likely about the 
 middle of October ; and it will probably be held on board an American 
 man-of-war at Arica. This point is satisfactory to Chili, and Mr. Chris- 
 tiancy agrees with me in regarding it as the most suitable place. 
 
 Anticipating the assent of the other belligerents, this government 
 has already determined upon the appointment of three ambassadors. 
 Unless you shall instruct otherwise, our three ministers will attend as 
 suggested in my dispatch of May 20. If this dispatch should not be 
 delayed in its transmission, a telegram forwarded soon after its receipt 
 would, I judge, reach me here before my departure for Arica, or such 
 other point as may be determined. upon for the conference; but I will 
 arrange for the prompt forwarding of all telegraphic dispatches that 
 may arrive during my absence. Upon the completion of the arrange- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 125 
 
 ments for the conference I will telegraph you briefly, giving time and 
 place thereof. Arica is in telegraphic communication with this point, 
 and messages can be sent there direct from Washington when the con- 
 necting lines are in order. 
 
 Now, in conclusion, I venture to express the hope that during the 
 continuance of the war in this section we shall have no more of these 
 visits from our representatives accredited to other belligerent powers. 
 We have had quite as many already as can prove beneficial to a proper 
 understanding of the purposes of our government, and even more, I 
 regret to say, than the preservation of the good name of our diplomatic 
 service has demanded. My letters to Mr. Ghristiancy have been fre- 
 quent, and he has had all needed information regarding the situation 
 here. My communication to him of the 13th of May, of which you have 
 a copy, and which constitutes the initiation of the proposed mediation, 
 has elicited no further response than a mere acknowledgment of its 
 receipt. What he could have expected to accomplish in coming here 
 passes my comprehension. 
 I have, &c, 
 
 ' THOMAS A. OSBORN. 
 
 No. 95. 
 
 Mr. Osborn to Mr. Uvarts. 
 
 No. 164.] Legation of the United States, 
 
 Santiago, Chili, September 9, 1880. (Received October 22.) 
 Sir: Responding to your instruction No. 98, 1 have the honor to in- 
 close an English translation of a note received by me from the minister 
 of foreign relations on the day of its date. You will observe that it is 
 simply an acknowledgment of the receipt of my note to which your in- 
 struction refers concerning the course to be observed by Chili in the 
 prosecution of the war in this section, and an assurance that it should 
 be laid before the President. A similar note was received at the Euro- 
 pean legations, but no further response has been deemed necessary by 
 this government. I am assured, however, that our respective notes 
 have received that consideration which the gravity of the subject of 
 which they treat demanded, and I am led to believe that they have ex- 
 ercised no small influence in the subsequent conduct of the war. In so 
 far as the naval operations are concerned, I have heard of no cause of 
 complaint since about the first of last January. Unfortunately their 
 land forces are not so easily controlled. I judge that the reports which 
 have gone to the world from Peruvian sources regarding the behavior 
 of the Chilian soldiery at Pisagua, Mollendo, Tacna, and Arica are 
 more or less exaggerated ; still it is undoubtedly true that they are not 
 wholly without foundation. The common Chilian soldier is a strong 
 and reckless man, paying but little regard to discipline, and, in battle, 
 a stranger, alike, to fear and to instincts of mercy. He is impatient 
 Under restraint, and is too apt to turn a deaf ear to commands which do 
 not conform to his liking. This is the one great fault with the Chilian 
 army — its want of respect for the commands of its officers in battle. 
 The authorities here understand that perfectly, and to this knowledge, 
 in a great degree, is due the hesitation of the government in entering 
 upon the Lima campaign. There is not the slightest doubt entertained 
 here as to the ability of the Chilian army to enter Lima, but it is feared 
 
126 
 
 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 by the more considerate ones, that once there, the soldiers might be 
 guilty of excesses which would not redound to the credit of their coun 
 try. The Chilian peon hates the Peruvian as if by instinct, and his ha- 
 tred is as bitter as it is natural. To this common feeling add the flame 
 which stories of torpedoes and of hidden mines laid for his destruction 
 necessarily produce, and you will be able to comprehend, perhaps, in a 
 modified degree, the spirit which animates the common Chilian soldier 
 in this war. 
 
 Preparations for an extensive campaign continue, and unless peace 
 shall come soon, the government will undoubtedly be driven into the 
 movement against Lima. They hope, however, that while satisfying 
 the popular clamor by the preparations which are making, peace may 
 come through the movement which we have been instrumental in ini- 
 tiating, and that they may be saved from the obloquy which the taking 
 of the Peruvian capital might entail. 
 
 The government have informed the European ministers that they can- 
 not entertain any proposition regarding peace until they can be informed 
 of the conclusions reached by the allies touching our proposed mediation. 
 I shall expect to hear from Mr. Christiancy and Mr. Adams on this sub- 
 ject in the course of two or three weeks. 
 
 I think I see some slight evidences here of apprehensiou upon the 
 part of the government of armed intervention by the European powers, 
 to the extent of preventing the Chilian army from entering Lima, if that 
 campaign should be undertaken, but my inquiries among my colleagues 
 have failed to develop anything in justification of this fear, further than 
 can be implied from the uncommon interest iu behalf of peace now being 
 manifested by the representatives of Great Britain, France, and Italy. 
 I have, &c, ■ 
 
 THOMAS A. OSBOEN. 
 
 [Inclosure in ilr. Osbora's No. 164. — Translation.] 
 
 J/r. Amundtegui to Mr. Osborn. 
 
 Republic of Chili, Department of Foreigx Relations, 
 
 Valparaiso, February 26, 1880. 
 Sir : I liaTe had the honor to receive the note which you directed to me, dated the 
 21st instant, calling the attention of my government to the contents of the communi- 
 cations which the minister of war, in the field, sent on the 28th of January and the 
 3d of February to the chiefs of the army and of the Chilian squadron with regard to 
 the course to be, by them, pursued in their belligere,nt operations. 
 
 To-day I will lay before his excellency, the President of the Republic, the observa- 
 tions that you were pleased to make concerning said communications. 
 
 Limiting myself for the present to an acknowledgment of the receipt of your esti- 
 mable note, I improve with pleasure the occasion to reiterate to you the sentiments of 
 high consideration with which I am, 
 Your obedient servant, 
 
 MIGUEL LUIS AMUNATEGUI. 
 
 No. 96. 
 Mr. Osborn to Mr. Evarts. 
 
 No. 165.] Legation of the United States, 
 
 Santiago, Chili, September 13, 1880. (Received November 4.) 
 Sir : Eesponding to your instruction No. 100, 1 have the honor here- 
 with to inclose an English translation of the note received by me in 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 127 
 
 February last from the minister of foreign relations regarding an ex- 
 change of prisoners with Bolivia, as also a copy of my reply thereto. 
 
 My letter upon this subject to the legation in La Paz has not been 
 answered, and no further steps have been taken in the matter either by 
 the Chili Government or by this legation. 
 
 I have, &c. 
 
 THOMAS A. OSBOEN. 
 
 [Inclosure 1 in No. 165. — Translation-] 
 
 Mr. Amundtegui to Mr. Osborn. 
 
 Republic of Chili, Department op Foreign Relations, 
 ' Valparaiso, February 20,' 1480. 
 
 Sir: The Government of Chili is desirous of ransoming some soldiers -which Bolivia 
 lias made prisoners in unimportant encounters that have taken place between the 
 scouts of our respective armies. 
 
 At present we have many Bolivian prisoners from which we would give the number 
 necessary to ransom those which they have belonging to us. 
 
 Convinced of the benevolent sentiments that animate you, my government has be- 
 lieved that perhaps it could_ count upon your friendly assistance in bringing about an 
 exchange of all the Chihan prisoners which are in Bolivia for a corresponding number 
 of those which we have in Chili. 
 
 In case there should be no objection on your part to assist in carrying into effect 
 this proposition, I would venture to request that you should be pleased to solicit in 
 our name the co-operation of your worthy colleague in La Paz. 
 
 As soon as a favorable response shall be received from you, I will be careful to send 
 to you the list of Bolivian prisoners that we now have, so that the exchange can be 
 perfected in La Paz. 
 
 I improve the occasion, &,c. 
 
 MIGUEL LUIS AMUNATEGUI. 
 
 [Inclosure 2 in No. 165.] 
 
 Mr. Osborn to Mr. Amundtegui. 
 
 Legation of the United States, 
 
 Santiago, Chili, February 23, 1880. 
 
 Sir : I have the honor to acknowledge the receipt of your esteemed note of the 20th 
 instant, wherein your excellency is pleased to solicit the aid of this legation, as also 
 that of my colleague in La Paz, in securing an exchange of prisoners of war with 
 Bolivia. 
 
 Your excellency can rest assured that such aid as it may be in my power to render 
 to your excellency's government in this connection will be most cheerfully given, and 
 I shall avail myself of the first mail which leaves for the north to communicate with 
 the United States legation in La Paz on the subject, pursuant to the suggestion con- 
 tained in your note. 
 
 It is possible, and I fear even probable, that my colleague in La Paz, Judge Pettis, 
 Las not yet returned from his home in the United States, whence he went in Novem- 
 ber last. He expected to return about this time, but I am as yet unadvised of his 
 having reached his post. Nor have I, since his departure ,had any correspondence 
 with his legation, and I am quite ignorant regarding the person in whose hands it has 
 been left. I judge, however, that the legation was placed in charge of some compe- 
 tent person, and that even though my colleague shall not have returned, my com- 
 munication, upon its arrival in La Paz, will receive proper attention. 
 
 With sentiments of the highest consideration, &c, 
 
 THOMAS A. OSBOBN. 
 
128 AFFAIRS IN CHILI, PERU, AND BOLIVIA 
 
 No. 97. 
 
 Mr. Osborn to Mr. Uvarts. 
 
 No. 167.] Legation, of the United States, 
 
 Santiago, Chili, September 17, 1880. (Received November L\ 
 
 Sir: The commotion which was produced by the coming of Mr. 
 Christiancy finally culminated in the formal introduction into the house 
 of deputies of interrogatories to the ministry on the 13th instant, and 
 the subsequent presentation of resolutions expressing a want of confi- 
 dence in the government. The debate which followed has continued 
 through two sessions, and has been exceedingly acrimonious. I inclose 
 two copies of the Ferrocarril containing the discussion. Tou will observe 
 that the ministry has found it difficult to convince some of the members 
 of th£ house that Mr. Christiancy's visit had no official»charaeter. 
 
 There seemed to be danger at one time that the resolution expressing 
 a want of confidence in the ministry would be adopted, but I now re- 
 gard that as improbable. The intervening holidays will prevent a fur- 
 ther discussion of the subject until the latter part of next week. 
 
 The developments are not as yet sufficient to warrant a conclusion as 
 to whether the progress hitherto made in the direction of peace may or 
 may not have been entirely undone by the coming of my Lima col- 
 league, but it is quite evident that the accomplishment of the end de- 
 sired has been rendered far more problematical. 
 
 I trust you will not fail to observe the statements made in the house 
 on the 14th instant by the Hon. Mr. Huneens, of which an English 
 translation is attached to the paper. Mr. H. was formerly minister of 
 foreign relations, and has especially represented the President in sev- 
 eral interviews with me on this subject. 
 I have, &c, 
 
 THOMAS A. OSBOEN. 
 
 [Inclosure in No. 167 — Translation. | 
 Statement made to the Chilian chamber of deputies by Mr. Huneens. 
 
 In view or the participation, which as a private citizen I have had the honor to 
 take in the matter now occupying the attention of the house, I feel it to be my duty 
 to correct some of the statements made by the Hon. Mr. Rodriguez with regard to the 
 visit of the Hon. Mr. Christiancy, minister plenipotentiary and envoy extraordinary 
 of the United States at Lima. I feel myself authorized to do so by my distinguished 
 friend, Hon. T. A. Osborn, minister plenipotentiary and envoy extraordinary of the 
 United States. 
 
 I now, therefore, state in the most emphatic and unequivocal manner — 
 
 1st. That Mr. Christiancy came to Chili with no mission whatever from Mr. Pierola, 
 and that he has submitted no proposals whatever for peace on behalf of the Govern- - 
 ment of Peru. 
 
 2d. That Mr. Christiancy has not asked for any proposals for peace from our gov- 
 ernment. 
 
 3d. That Mr. Christiancy came to Chili simply for the purpose of conferring with 
 Mr. Osborn, in obedience to instructions from his government, with regard to certain 
 questions that have occupied the attention of the Cabjnet at Washington. 
 
 In view of what may hereafter occur, I ask that the foregoing statement be placed 
 on the minutes. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 129 
 
 No. 98. 
 Mr. Evarts to Mr. Osborn. 
 
 [Telegram.] 
 
 Washington, September 28, 1880. 
 Osborn, 
 
 Minister, Santiago, Chili: 
 
 Proceed as proposed, if belligerents accede. Instructions to our ves- 
 sels when you telegraph for them. 
 
 EVAETS, 
 
 Secretary. 
 
 No. 99. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No. 169.] Legation of the United States, 
 
 Santiago, Chili, September 30, 1880. (Eeceived November 16.) 
 
 Sir : I send you by to-day's mail an extra copy of each- of the news- 
 papers inclosed with my No. 167, containing a part of the debate in the 
 house of deputies which grew out of the visit of Mr. Christiancy, and 
 also two copies each of three dates of the same publication containing 
 the remainder of the discussion. You wUl see that on the 25th instant, 
 after a full and explict statement by Mr. Recabarren, the minister of the 
 interior, regarding the purposes of the government in conducting the 
 war, the resolution of censure was withdrawn' and the house passed to 
 the order of the day. It will also be noticed that the government stands 
 committed to the country to a vigorous prosecution of the war. This is 
 understood here to mean that a more aggressive policy has been resolved 
 upon, and that unless Peru shall exhibit a disposition to arrive at peace 
 the war is to be prosecuted with all possible energy, to the end that 
 terms may be dictated to her at her capital. The minister, however, 
 did not place the government in a position of direct antagonism with its 
 former attitude regarding our proposed mediation, and I still hope for 
 a good result therefrom. 
 
 Mr. Christiancy has telegraphed me by way of Arica that the allies 
 have accepted our proposed mediation, but I have found it necessary to 
 communicate with him further before addressing this government for- 
 mally on the subject, because of the various conditions which appear to 
 attach to such consent. 
 
 In his last message Mr. Christiancy intimates that Peru may possibly 
 withdraw its consent unless Chili shall agree to an armistice. He adds 
 that if the campaign against Lima should be prosecuted during the 
 negotiations our government would be placed in an "ignominious posi- 
 tion," and says in effect that the conference would have to be abandoned. 
 
 Six weeks ago there would have been little difficulty in obtaining 
 Chili's consent to at least a qualified armistice during the sitting of the 
 conference, but I much doubt if the government will be prepared to 
 agree to this now. The campaign against Lima cannot, however, be 
 undertaken before the middle of November, but of this I could not speak 
 to Mr. Christiancy by telegraph, and have simply advised him that the 
 conference ought to be held as hitherto contemplated. If the allies are 
 S. Ex. 79 9 
 
130 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 sincerely desirous of availing themselves of our suggested movement for 
 the purpose of closing the war, there is abundant time in which to ac- 
 complish that result ere the Lima expedition is ready to move. 
 
 By what sort of reasoning Mr. Christiancy has reached the conclusion 
 that the prosecution of hostilities, pending negotiations, would tend to 
 render the position of our government "ignominious" I fail to com- 
 prehend. An armistice would be desirable, doubtless, but a refusal to 
 agree to it certainly would not bear the construction which my colleague 
 seems disposed to give it. 
 
 If our assistance had been solicited by the belligerents there might, 
 perhaps, be some ground for his conclusion, but in the actual situation 
 it seems to me plain that there is none. The opinion here is quite gen- 
 eral that the Pierola government will not yield to the demands of Chili 
 until it shall be absolutely driven thereto, and there are some high in 
 official position who regard its so-called consent to mediation as a sub- 
 terfuge for the purpose of obtaining time. In view of this, you will not 
 be surprised, I am confident, if all efforts to secure an armistice shall 
 prove abortive. 
 
 The destruction of Chimbote and other places in Northern Peru may 
 be accepted as an indication of the character of the change in the policy 
 of the government. It is claimed in justification of this expedition that 
 the resources of the Peruvian Government are being derived from the 
 rich sugar plantations north of Oallao, and that the destruction of these 
 estates has therefore become a necessity. It is further urged that the 
 men of wealth in Peru must be made to experience some of the horrors 
 of war, to the end that the government may be forced to sue for peace. 
 
 I judge that the instructions to Captain Lynch, the commander of the 
 
 expedition, have been quite explicit in requiring that the property of 
 
 neutrals should not be mqlested, and the information which reaches me 
 
 from the north induces the belief that he has been careful in this regard. 
 
 I have, &c, 
 
 THOMAS A. OSBOBN. 
 
 No. 100. 
 
 Mr. Osborn to Mr. JEvarts. 
 
 [Extract.] 
 
 No. 171.] Legation of the United States, 
 
 Santiago, Chili, October 6, 1880. (Beceived November 16.) 
 
 Sir : I inclose two copies of a newspaper containing a discussion in 
 the house of deputies yesterday, concerning the note of the Peruvian 
 minister of foreign relations, of September 14,* to Mr. Christiancy, upon 
 the subject of mediation. Tou have undoubtedly been furnished with 
 a copy of the note by the legation at Lima, and it is therefore unnec- 
 essary that I should here include it. 
 
 You have not failed to notice, I judge, that the minister, in the first 
 lines of his note, says that Mr. Christiancy has informed him that he 
 (Mr. Christiancy) had visited Chili for the purpose of proposing to this 
 
 •For note of minister for foreign affairs of Peru, see inclosure Mr. Christiancy's No. 
 194, September 17, 1880, document No. 279. The debate in the house of deputies being 
 quite lengthy, and in the Spanish language, is omitted, but will be submitted if deemed 
 necessary. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 131 
 
 government the mediation of the United States, and that such tender 
 had been accepted. I cannot doubt that the minister misunderstood 
 Mr. Christiancy, but I beg you to read the remarks of Mr. Balinaceda 
 and Mr. Alemparte in this connection. You will bear in mind that on 
 the very day of the date of the note referred to, the government here, 
 in justifying themselves before Congress, were engaged in asserting that 
 Mr. Ohristiancy's visit had no official significance. See my No. 167, with 
 inclosure. 
 
 In view of the embarrassment which this affair has caused this gov- 
 ernment, I am more than astonished that I have not been advised that 
 this government has deemed it prudent to proceed no further in the 
 matter of the mediation. 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 No. 101. 
 
 Mr. Osborn to Mr. Uvarts. 
 
 No. 172.] Legation op the United States, 
 
 Santiago, Chili, October 8, 1880. (Received November 16.) 
 Sir : I inclose my final note to the minister of foreign relations ten- 
 dering formally the good offices of the United States, and also his reply 
 thereto. You will observe that the minister has. deemed it prudent to 
 remove all doubts touching the effect which the acceptance of mediation 
 is to have upon the prosecution of hostilities. 
 
 Mr. Christiancy is at Arica, and I shall probably leave for that point 
 to-morrow, in company with the Chilian ministers. 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 [Incloaure 1 in No. 172.] 
 
 Mr. Osborn to Mr. Valderrama. 
 
 Legation op the UAtted States, 
 
 Santiago, Chili, October 6, 1880. 
 
 Sir : Your excellency is aware that on the 6th of August last, I approached the hon- 
 orable President of the Republic of Chili, for the purpose of learning if the Govern- 
 ment of Chili would be disposed to enter into a conference with ministers from the 
 other belligerent republics in the present war with a view of- arriving at an honorable 
 peace, under the mediation, in the form of good offices, of the United States. Your 
 excellency was pleased to inform me, in our interview of the 10th of August, that the 
 Government of Chili would accept the good offices of the United States, as suggested, 
 if Peru and Bolivia should upon their part signify their acceptance of the same. 
 , The conditions indicated by your excellency, in the interview referred to, having 
 been complied with, I now have the honor to offer formally to the government of your 
 excellency, the mediation of the Government of the United States to be exercised in the 
 manner proposed. 
 
 The form suggested by me in the interview referred to, contemplates the holding of 
 a conference of duly empowered ministers of the three belligerent republics on board an 
 American man-of-war at Arica, in the presence and with the friendly aid and assistance 
 of the representatives of the United States to the belligerent republics. 
 With sentiments, &c, 
 
 THOMAS A. OSBORN. 
 
132 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosure 2 in No. 172. — Translation.] 
 
 Mr. Valderrama to Mr. Osborn. 
 
 Republic of Chlli, Department of State, 
 
 Santiago, October 7, 1880. 
 
 Sih : I have received your excellency's note under date of yesterday. In it your 
 excellency, after recalling the steps taken for the purpose of ascertaining whether my 
 government was disposed to enter into a conference of peace with the other bellige- 
 rents, through the mediation of the kindly offices of the United States, and also further 
 recalling the favorable disposition manifested by my government in case Peru and 
 Bolivia should accept on their part a similar suggestion, your excellency notifies me 
 that, this having been done, the time has now arrived to make a formal tender of the 
 mediation of the Uuited States to the Government of Chili, as you now do. 
 
 Having laid your excellency's note before the President, he directs me to transmit 
 to your excellency the expression of his gratitude for the great interest which the 
 United States has shown in its endeavors to restore peace between Chili andthe allied 
 republics. 
 
 My government accepts the formal mediation and kindly offices that your excellency 
 offers on behalf of the United States, and also further accepts the suggestions made 
 by your excellency as to the manner of carrying it into effect. 
 
 It is nevertheless my duty here again to repeat, in order to avoid all ambiguity or 
 doubt, that this acceptation does not imply a suspension of hostilities. 
 I avail myself, &c. 
 
 MELQUlADES VALDERRAMA. 
 
 No. 102. 
 
 Mr. Evarts to Mr. Osborn. 
 
 No. 109.] Department of State, 
 
 Washington, October 14, 1880. 
 
 Sir : Your dispatch, No. 163, of the 2d ultimo has been received. 
 You therein report the visit of Mr. Christiancy to Santiago, on board 
 the Wachusett, and the steps taken by him and you in favor of bringing 
 about a conference at Arica, in the interests of an honorable termination 
 of the present disastrous war. 
 
 Dispatches subsequently received, through the Navy Department, 
 from the commanding officer of the "Wachusett, under date of September 
 18, indicate the partial success, at least, of your and Mr. Christiancy's 
 efforts to this laudable end, and these reports are further confirmed by 
 a telegraphic dispatch received from you on the 12th, in the following 
 words : 
 
 Evarts, Washington : 
 Sail for Arica to-day, 9th. 
 
 OSBORN, Valparaiso. 
 
 The proposed conference being, so far as the Department can perceive 
 at this distance of time and place and from the information before it, 
 in conformity with its views and with previous instructions, it has not 
 been thought necessary to send you any modificatory telegraphic orders, 
 snch as you seem to suggest in your present dispatch. The full advices 
 of yourself and Mr. Christiancy with respect to the conference are nec- 
 essarily awaited before the Department can be in a position to judge 
 how far its instructions have been correctly and successfully carried 
 out. 
 
 I am, &c, 
 
 WM. M. EVARTS. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 133 
 
 No. 102£. 
 
 Mr. Osbom to Mr. Evarts. 
 [Telegram.] • 
 
 Legation of the United States, 
 Santiago, October 28, 1880. (Eeceived October 31.) 
 Evarts, Washington: 
 Conference closed without result. 
 
 OSBOEN. 
 (Sent from Arica.) 
 
 No. 103. 
 Mr. Osbom to Mr. Evarts. 
 
 No. 173.] Legation of the United States in Chili, 
 
 On board the United States Ship Lackawanna, 
 
 In the bay of Arica, 
 October 28, 1880. (Eeceived December 6.) 
 
 Sir : On the 9th instant, as I was about to take the steamer for this 
 place, I telegraphed you from Valparaiso that fact. My reason for not 
 being more explicit in reference to the meeting of the conference was 
 that I had received a telegraphic message from Judge Christiancy an- 
 nouncing that Peru had determined that a change in the place of hold- 
 ing the same was necessary. I had already, as you are aware, formally 
 invited the Chilian Government to send its ministers to Arica, and when 
 I consulted them regarding a change of place as demanded by Peru I 
 found them determined to insist upon the point already named. I in- 
 formed Judge Christiancy by telegraph of this fact, and on receiving 
 his reply urging me, notwithstanding this difficulty, to come to Arica 
 with the Chilian ministers, took passage on the mail steamer for this 
 place. Upon my arrival, on the 17th instant, I went on board the 
 United States ship Lackawanna anchored in the bay, where I found 
 Ministers Christiancy and Adams. The Peruvian ministers were still 
 at Mollendo, but they were finally prevailed upon to extend their voy- 
 age to Arica, and on the 22d the conference was opened on board the 
 Lackawanna. 
 
 At the first session Chili presented, through her ministers, a memo- 
 randum* indicating the basis upon which she would consent to termi- 
 nate the war. It is unnecessary that I should here include a copy of this 
 paper, as it will be found with the official proceedings of the conference. 
 For the present purpose it is sufficient to state that, among other con- 
 ditions, it demanded from Peru the cession of the province of Tarapaca. 
 
 The allied ministers took the memorandum with them for considera- 
 tion; and in the conference, which was held on the 25th instant, Mr. 
 Arenas, in behalf of Peru, replied at some length, in the course of which 
 he said that the demand which had been made concerning Tarapaca 
 presented an insurmountable obstacle to the conclusion of a peace. The 
 Chilian ministers replied that their instructions made this demand nec- 
 essary, and that it would be useless to talk of peace upon any other 
 
 * For memorandum, see inclosnre with Mr. Christiancy's No. 198 of October 24, 1680, 
 document No. 282. 
 
134 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 basis. This practically put an end to the conference. The allies pro- 
 posed arbitration, it is true, but, in view of the situation, it could hardly 
 have been expected that the suggestion would meet with a favorable 
 reception. 
 
 As you know from my dispatches, the only basis upon which Chili 
 was disposed to negotiate involved the cession by Peru of Tarapaca, 
 and my fear latterly has been that the government might even be, forced 
 to recede from its position in this respect. When Mr. Christiancy was 
 in Santiago he was quite confldentthat Peru would be found ready to con- 
 clude a peace upon this basis, and he so told President Pinto. It was with 
 some surprise, therefore, that I listened to the emphatic declaration of 
 Mr. Arenas that this condition presented an "insurmountable obstacle" 
 to a happy termination of the negotiations. Every effort was made to 
 induce the Peruvian ministers to present a counter-proposition, in the 
 hope that finally an acceptable basis might be reached; but without 
 avail. They saw fit to rest with the declaration already made, and with 
 this, as before stated, the negotiations were practically ended. 
 
 The unhappy termination of these attempts is deeply to be deplored, 
 the more so in that it leaves no ground to hope for peace until either 
 Peru or Chili shall acknowledge its defeat and sue for terms. This, at 
 least, is the present aspect of the situation as it appears to me. 
 
 I have telegraphed you to-day as follows, to wit: 
 
 Etakts, Washington : 
 Conference closed without result. 
 
 OSBORN. 
 
 Preparations for the expedition to Lima are being carried forward 
 with all possible haste, and I judge that ere the receipt of this the 
 Chilian army «nll have landed in the vicinity of Callao. 
 
 I shall leave here to-morrow on the mail steamer for Santiago, and 
 upon reaching my post shall probably have some further observations 
 to make concerning our efforts, and the effect thereof. I can see noth- 
 ing, at present, to warrant an apprehension of armed intervention by 
 the European powers, but I will be able, perhaps, to express myself 
 more intelligently upon this point from Santiago. 
 Very respectfully, &c, 
 
 THOMAS A. OSBOEN. 
 
 No. 104. 
 
 (Copy handed to Mr. Evarts by Mr. Asta-Buruaga, January 6, 1881.) 
 
 Mr. Valderrama to Mr. Asta-Buruaga. 
 
 [Translation.] 
 
 Bepublic of Chili, 
 Ministry of Foreign Eelations, 
 
 Santiago, November 11, 1880. 
 In a separate note I acquaint you with the result of a conference held 
 at Arica by reason of the mediation which the Government of the United 
 States of North America was pleased to offer to the belligerents. 
 
 Although the result of those conferences has not borne out the noble 
 object which the Government of the United States had in view, the 
 sentiment of sincere gratitude which its fraternal and elevated policy 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 135 
 
 has awakened in the Government and the people of Chili is none the less 
 lively. 
 
 I must likewise add that its noble policy has been faithfully and ably 
 interpreted by the Hon. Mr. Osborn in all this negotiation, and that the 
 delicate tact, rectitude of views, and elevated spirit of which he has 
 given unmistakable proof, have strengthened the confidence and esteem 
 with which from the first he has inspired this government and country. 
 
 You will take an early opportunity of signifying these sentiments to 
 the Government of the United States, leaving a copy of this dispatch if 
 any suggestion be made in that sense. 
 
 May God guard you. 
 
 MBLQUlADBS VALDEEEAMA. 
 
 To Don Francisco S. Asta-Burttaga, 
 
 Envoy Extraordinary and Minister Plenipotentiary 
 
 of Chili in the United States. 
 
 No. 105. 
 
 Mr. Evarts to Mr. Osborn. 
 [Telegram. ] 
 
 Washington, November 19, 1880. 
 You are authorized to unite with your colleagues in pressing upon 
 Chili the adoption of the measures agreed upon in a diplomatic confer- 
 ence at Lima for securing the lives and property of neutrals when Lima 
 is attacked. This authority is to be used only in case these measures 
 are approved by Christiancy and yourself as within neutral policy, and 
 this concurrent representation seems to you useful. 
 
 You are also authorized to join in asking a direct answer from Chili, 
 if in your judgment the requirement is justified by the situation. Tele- 
 graph your action. 
 
 EVAETS, 
 
 Secretary. 
 
 No. 106. 
 
 Mr. Valderrama to Mr. Asta-Buruaga. 
 
 ["Translation.;]' 
 
 Confidential, No. 29.] Eeptjblic of Chili, 
 
 Ministry of Foreign Eblations, 
 
 November 22, 1880. 
 
 Sir : In a separate note I acquaint you with the result of the con- 
 ference of Arica, which took place through the medium of the friendly 
 co-operation of the Government of the United States. 
 
 This result cannot have been satisfactory, I am convinced, to that gov- 
 ernment, which had desired, as that of Chili desired, that its interven- 
 tion in this delicate matter should have been accompanied by the most 
 complete results. 
 
 For this reason I consider it necessary to set forth to you, in all frank- 
 ness, the causes which induced the Government of Chili to accept the 
 good offices of the United States, in the conviction that its noble efforts 
 would not be barren of result. 
 
136 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 My government very well realizes the important part which the policy, 
 of the United States justly plays in the international movements of the 
 whole world. But before accepting its high mediation in the affairs of 
 the Pacific, it was thought proper that the necessary precautions should 
 be taken, in order to feel assured that its good offices would reach the 
 desired result. With this purpose in view, my government was careful 
 to express, with all frankness, that it could not for its part arrive at a 
 peace without the cession by Peru and Bolivia of the territories which 
 extend to the south of Camarones as an equitable compensation for the 
 enormous expenses and sacrifices which have been demanded of it by 
 the present war. 
 
 This same declaration was made by his excellency the President of 
 the Republic, to Mr. Christiancy, in the presence of Mr. Osborn, when 
 the former came from Lima, toward the end of August last. His excel- 
 lency the President stated moreover to Mr. Christiancy, on that occa- 
 sion, that his demand in this respect was absolute and final, so that 
 it would be futile to take any steps in the direction of realizing the pro- 
 jected conference suggested by the Government of the United States 
 without first obtaining the assurance that the allied governments would 
 accept the prior condition proposed. 
 
 Mr. Christiancy, who came from Lima, and who, it was natural to sup- 
 pose, would be impressed by the views of the Peruvian Government, 
 declares in the most unmistakable and positive manner that he was per- 
 suaded that the Government of Peru would agree to the cession of terri- 
 tory which Chili demanded, and that therefore the conference would 
 yield the peaceful results which the United States aimed at. 
 
 Although Mr. Christiancy was not accredited to my government, he 
 did not for that reason cease to be a representative of the United States, 
 in whose affirmations faith should be reposed, in view especially of the 
 great importance of the affair which gave rise to them. 
 
 In namimg its plenipotentiaries, my government confided in the assur- 
 ances given by Mr. Christiancy, and cherished well-founded hope that 
 the conference would give a happy result. 
 
 You are already aware that Peru refused absolutely any cession of 
 territory, and that the result of the conference did not correspond to the 
 assurances of Mr. Christiancy. 
 
 My government considers that it could not better respond to the 
 fraternal spirit of which the United States have given it such proofs 
 than by declaring with sincerity, as it now does, that the failure of this 
 conference is in no wise to be imputed to any action on the part of 
 Chili. 
 
 I desire that you will seek a fitting occasion to give to the Govern- 
 ment of the United States confidential knowledge of this dispatch. 
 
 May God guard you. 
 
 MELQUIADBS VALDEERAMA. 
 
 No. 107. 
 
 Mr. Valderrama to Mr. Asta-Buruaga. 
 
 [Translation.] 
 
 Confidential No. 30.] Republic of Chili, 
 
 Ministry of Foreign Relations, 
 
 Santiago, November 22, 1880. 
 Sir: Referring to the dispatch of this date, No. 29, 1 think it oppor- 
 tune to make mention of other facts connected with the strange attitude 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 137 
 
 assumed by Mr. Christiancy during the preliminary negotiations which 
 preceded the holding of the conference of, Arica. 
 
 You know that in our country, as in Peru and Bolivia, the national 
 sentiment is extremely susceptible, and is profoundly affected by any act 
 or demonstration which is capable of being regarded as a disregard, even 
 though involuntary, of the considerations due to the national dignity. 
 
 Knowing these sentiments, the Government of the United States 
 endeavored with great delicacy to learn privately, and through the 
 medium of its respective diplomatic agents, what would be the disposi- 
 tion of the belligerents respecting the acceptance of the mediation of 
 the United States. 
 
 The spirit which led it to proceed in this manner was most obvious ; 
 on the one hand, a desire to be assured of the success of its conciliatory 
 attempts, and, on the other hand, to find itself in a condition to make 
 simultaneously to the belligerents the formal offer of its mediation. In 
 this way it perfectly safe-guarded the natural delicacy of the three coun- 
 tries. 
 
 In the high character of mediator and common friend which the United 
 States proposed to assume, it became an object of especial attention to 
 treat the belligerents with identical consideration. It was therefore 
 indispensable that the necessary precautions should be taken so that 
 no one of them should appear as taking the first step toward asking or 
 seeking for peace. 
 
 Mr. Osborn seconded most faithfully, in our judgment, the noble policy 
 of his government. The 5th of August last, he began by inquiring pri- 
 vately, in an interview, what would be the disposition of my govern- 
 ment with respect to the mediation which the United States proposed 
 to offer. 
 
 The reply given on the 10th of the same month informs Mr. Osborn 
 that Chili would have no objection to accepting it, provided that it had 
 the assurances of equal acceptance on the part of the allies. 
 
 Two months later, that is to say, on the 6th of October, Mr. Osborn, 
 for the first time, offered to my government, as you may see by the ac- 
 companying copy No. 1, the formal mediation of the United States, and 
 on the 7th, as appears in copy Ho. 2, he received the reply in which the 
 Government of Chili informed him that his offer of mediation was ac- 
 cepted on our part. 
 
 Meanwhile, in the time which elapsed between the conversation held 
 with Mr. Osborn, in the early part of August, and the formal offer of 
 meditation which was made in the beginning of October, Mr. Christiancy 
 thought it proper to come from Lima to Santiago, where he remained 
 several days, toward the end of August, in order to be able to return in 
 safety to that capital. The unexpected appearance of Mr. Christiancy 
 in Chili could not fail, however, to attract attention, causing the very 
 general impression that the sudden voyage ot the American minister 
 was intimately related to the question of mediation. 
 
 The disquietude which was occasioned expressed itself in Congress, 
 wherein my government was interpolated touching this matter, about 
 the middle of September. 
 
 The government responded, stating what had theretofore occurred in- 
 the premises, that is to say, that there did not exist any formal proposal 
 of meditation, since there had merely been exchanged with the minister 
 of the United States, Mr. Osborn, certain views in a private form con- 
 cerning the projected office of mediation. 
 
 A few days later the journals of Lima published a note from the for- 
 
138 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 eign minister of Peru, dated the 14th September, and addressed to Mr. 
 Ohristiancy. In this note occurred the following : 
 
 Informed by you concerning your voyage to Santiago de Chili, to which place yon 
 had gone with the object of proposing to the government of that republic the media- 
 tion of the United States of America, in order to negotiate a peace with Pern and Bo- 
 livia, a mediation which had been accepted by Chili, in virtue whereof you proposed 
 it to my government, the latter resolved, after conferring with the minister plenipo- 
 tentiary of the republic of Bolivia, to accept the offered mediation, &c. 
 
 It is seen, therefore, by the paragraph I have quoted, that at the same 
 time that my government declared, toward the middle of September, in 
 the chamber of deputies, that up to that time the mediation in question 
 had not been formally accepted, nor even officially offered, Mr. Ohris- 
 tiancy was affirming, in his turn, to the Government of Peru, that he had 
 come to our country for the purpose of offering it to my government, 
 and that in view of the acceptance given by this government, he made 
 a like offer to the government of that republic. 
 
 The affirmations made by my government before one of the branches 
 of the legislative body, and the affirmations of Mr. Ohristiancy to the 
 Government of Peru, are altogether irreconcilable. 
 
 It does not appertain to me to qualify herein the motives which Mr. 
 Ohristiancy may have obeyed in making such a declaration. My pur- 
 pose is simply limited to setting upon record that the affirmations of my 
 government rested faithfully upon the truth. 
 
 Mr. Ohristiancy did not present to my government credentials author- 
 izing him to act either in respect of the projected mediation or in respect 
 of any negotiation whatever. He was, therefore, in our country simply 
 as a distinguished guest, and in no wise as the authorized organ of the 
 Government. If Mr. Ohristiancy had made, as he affirms, the offer of 
 mediation, my government would have found itself under the painful 
 necessity of rejecting such offer, because it did not conform to the usual 
 practices between two nations; neither would it have been natural for the 
 Government of the United States which, with such delicate tact, had put 
 forth its conciliatory efforts, to have set aside its official representative 
 in Ohili, Mr. Osborn, in order to confide the continuation of this delicate 
 business to a simple visitor, worthy of all respect, but lacking towards 
 us the representative character. 
 
 These well founded considerations led my government to think that 
 perhaps the note of the foreign minister of Peru might not faithfully 
 express the ideas of Mr. Ohristiancy, and it has awaited until now, but 
 in vain, a correction on the part of that high functionary, which would 
 re-establish the truth of the facts. 
 
 Subsequently there came to the hands of my government a note which 
 the same Mr. Ohristiancy deemed it proper to address to Mr. Lynch, 
 chief of the Chilian expedition operating upon the north of Peru, and 
 that note has confirmed, to a certain extent, the ideas which the minister 
 of Peru attributes to Mr. Ohristiancy with respect to the form in which 
 the mediation was offered. I inclose herewith, in copies designated as 
 numbers 3, 4, and 5, the note of the minister of Peru to which I have 
 made reference, and also the dispatches exchanged between Mr. Ohris- 
 tiancy and Mr. Lynch. It is not for the present a part of my purpose 
 to take note of the proceeding employed by the minister of the United 
 States in addressing himself to a military employe" of Chili, for the pur- 
 pose of making representations to him, which, from the high source from 
 which they emanated, might induce the chief of our forces to deviate 
 from the instructions of his government. My purpose at this time is 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 139 
 
 • 
 
 simply to inform you with precision of the various steps which preceded 
 the conference of Arica. 
 
 You will take an opportunity to express these facts to the Govern- 
 ment of the United States in confidential form. . 
 
 May God guard you. 
 
 MELQTTIADES VALDBREAMA. 
 
 [Inclosure Ho. 1.— Translation.] 
 Mr. Osborn to Mr. Valderrama.* 
 
 X 
 
 Legation or the United States, 
 
 Santiago de Chili, October 6, 1880. 
 
 Sir: Your excellency is aware that on the 6th of August last I approached the hon- 
 orable President of the Republic of Chili with a view of learning whether the Govern- 
 ment of Chili was disposed to enter into a conference with the ministers of the other 
 belligerent republics in the present war, in order to reach an honorable peace under 
 the mediation in the shape of good offices Of the United States. Your excellency was 
 pleased to inform me, in our interview of the 10th of August, that the government of 
 Chili would accept the good offices of the United States in the suggested form, if Pero 
 and Bolivia signified on their part their acceptance of this idea. 
 
 The conditions indicated by your excellency in this interview having been complied 
 with, I now have the honor to offer formally to the government of your excellency the 
 mediation of the Government of the United States, in order that it may be exercised 
 in the proposed manner. 
 
 The form which I suggested in the interview alluded to had in view the celebration 
 of a conference of the ministers duly authorized of the three belligerent republics on 
 board of an American vessel of war, at Arica, in the presence and with the friendly 
 aid and assistance of the representatives of the United States near the belligerent 
 government. 
 
 With sentiments of high consideration I have the honor to be, sir, your excellency's 
 most respectful and obedient servant, 
 
 THOMAS A. OSBORN. 
 
 [Inclosure No. 2.] 
 Mr. Valderrama to Mr. Osborn. 
 
 Ministry of Foreign Relations, 
 
 Santiago, October 7, 1880. 
 
 Sir : I have received the note which you were pleased to address to me under date 
 of yesterday. After recalling therein the steps you have taken with a view to ascer- 
 taining if my government were disposed to enter upon the peace conference with the 
 other belligerents under the mediation in the form of good offices of the United States, 
 and recalling, also, the favorable disposition shown by my government provided that 
 those of Peru and Bolivia should accept on their part a like suggestion, you inform me 
 that this condition having been already complied with, the time has come to offer 
 formally to the Government of Chili, as you now do, the mediation of the United 
 States. 
 
 His Excellency the President of the Republic, to whose knowledge I have brought 
 your dispatch, has charged me to convey to you the expression of his gratitude for 
 the noble interest with which the Government of the United States endeavors to bring 
 about the restoration of peace between Chili and the allied republics. 
 
 My government accepts the mediation in the form of good offices which you offer to 
 me in the name of the United States, likewise the proceeding, which you suggest to 
 carry it into effect. 
 
 I must before all, repeat here, in order to avoid doubts and ambiguities, that this 
 acceptance does not involve the suspension of all hostilities. 
 
 I improve this opportunity to renew to you the sentiments of high consideration 
 with which I have the Honor to subscribe myself. 
 
 MELQUIADES VALDE RRAMA ^ 
 
 * For the original English version of this note see inclosure to Mr. Osborn's dis- 
 patch No. 172, dated October 8, 1880, document 101. 
 
140 AFFAIRS in CHILI, PERU, AND BOLIVIA. 
 
 [Inclosure No. 3.— Translation.] 
 
 Mr. Barinaga to Mr. Christiana/. 
 
 Department of Foreign Relations and Worship, 
 
 Lima, September 14, 1880. 
 
 Mr. Minister: Informed by your excellency respecting your voyage to Santiago de 
 Chili, to which place you went for the purpose of proposing to the government of that 
 republic the mediation of the United States of America, in order to negotiate peace with 
 Peru and Bolivia, which mediation had been accepted by Chili, and in virtue of which 
 you proposed the same to my government, the latter decided, after conferring with the 
 minister plenipotentiary of the Republic of Bolivia, to accept the offered mediation 
 solely in deference to the Government of the United States, aud notwithstanding that 
 the motives of the war declared by Chili, which took Peru by surprise, and the man- 
 ner in which it has been conducted from the first had convinced us how far Chili was 
 from the path of moderation and justice, the sole path in which peace is possible, as t 
 had the honor to say to you in a verbal conference on this business. 
 
 The acts which the Chilian forces have, notwithstanding, done at more than 100 
 leagues from our army, and from any objective military point, acts of pillage, incen- 
 diarism, devastation, and all manner of outrages against private property of natives 
 and foreigners, especially after having accepted the mediation of the government of 
 yonr excellency, if not compatible with the consideration which is due to the friendly 
 mediator, cannot but confirm that presumption, awakening a spirit of indignation 
 difficult to control. My government confines itself to expressing that sentiment, leav- 
 ing to that of your excellency and to your excellency yourself the due appreciation of 
 such conduct. My government thinks that if the love of peace and the consideration 
 which it feels for the government and people of the United States can decide it, not- 
 withstanding the evident justice of its cause and its complete confidence in the final 
 result of the war, and the injuries and losses sustained, to enter upon negotiations for 
 peace, it is natural that snch motives should be entirely destroyed by the actual and 
 melancholy evidence that we are contending with those -who in such manner violate 
 the laws of civilization and the respect which cultured people owe to themselves. 
 
 It is pleasing to me to avail myself of this opportunity to offer to your excellency 
 my considerations of especial esteem. 
 
 MANUEL A. BARINAGA. 
 
 [Inclosure No. 4. — Translation.] 
 
 Mr. Christiancy to the commander of the Chilian forces* 
 
 Legation of the United States, 
 
 Lima, Peru, September 13, 1S80. 
 
 Sir : I have just arrived from Santiago, where, in company with the American Min- 
 ister, Mr. Osborn, I had a full and free conference with the government of Chili, which 
 has accepted the mediation of the United States, in order to negotiatepeace with Peru 
 and Bolivia. I am now authorized to say that Peru accepts such mediation and that 
 the negotiations for peace will be immediately undertaken. When I conferred with 
 the government of Chili I was not authorized to say that Peru would accept the media- 
 tion of the United States, but now I am authorized to say that Peru accepts it and that 
 the ambassadors of all the belligerents will meet for this purpose in the early days of 
 the coming month of October. 
 
 I do not interfere, nor can I pretend to interfere, with the instructions which you 
 may have from your government concerning the steps which yon have been ordered 
 to take, but I hope that you will appreciate my representations, and those of the 
 
 fovernment which I represent, which is equally the friend of all the belligerents, if 
 suggest to you that, in so far as your orders permit, it would be prudent and would 
 contribute to obtain a speedy peace and avoid all destruction and causes of irri- 
 tation which may not be rendered obligatory by the orders you have ; and I permit 
 myself to add that there is a very marked sentiment, as I know, among the minis- 
 ters of the foreign governments, both here and in Santiago, against the destruc- 
 tion of pnrely private property which is not demanded by the military necessity of 
 attacking the armed forces of the enemy and against accepting contributions from 
 them, and especially because such destructions may be committed or such contribu- 
 tions imposed upon the private property which is known to helong to the citizens of 
 friendly and neutral nations, and from which proceedings, as you will readily com- 
 prehend, may arise many complications and complaints. The government of Chili 
 
 * For the original English version of this note see inclosure to Mr. Christiancy's dis- 
 patch No. 194, dated September 17, 1880, Document 279. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 141 
 
 will be immediately informed that Peru has accepted the friendly mediation of the 
 United States, and' of its readiness to enter upon negotiation upon such auspices. 
 
 If I had been able, when I was in Santiago, to assure the government of Chili of the 
 readiness of Peru to enter upon negotiations in which Chili should take part, I would 
 feel inclined to believe that if the Chilian expedition had been about to depart it 
 would have been under orders somewhat modified and less severe than those which 
 you now probably have, but I' cannot ask you to adopt my opinion, and recognize 
 entirely the fact that you must act in view of your own j udgment of the circum- 
 stances and as the orders of your government demand. 
 
 Permit me to conclude by expressing to your excellency the respect and high con- 
 sideration with whioh I subscribe myself your excellency's friend and. obedient ser- 
 vant, 
 
 I. P. CHRISTIANCT. 
 
 [Inclosure No. 5. — Translation. 1 
 
 Mr. Lynch to Mr. Christiancy. 
 
 Headquarters of the Chilian Division in the North of Peru, 
 
 On board the Itata, September 17, 1880. 
 
 Sir : I have had the honor to receive your polite notes of the 13th and 14th instant, 
 in which your excellency is pleased to bring to my knowledge the laudable efforts 
 which have been made towards the belligerent governments for the purpose of bringing 
 about an honorable peace between them, through the medium of the mediation of the 
 Government of the United States, of which your excellency is the worthy represen- 
 tative at Lima. 
 
 Your excellekcy, in making known to me whftt has been done to that end, and what 
 is hbped for from the good offices (of the United States) has been pleased to indicate 
 to me the conduct, which in your judgment, I should follow in the military operations 
 which my government has confided to me, in view of the good will with which the 
 belligerent governments have accepted the mediation of that of your excellency. 
 
 It would have been very gratifying to me, Mr. Minister, to accept your manner of 
 thinking if I had not been informed to-day by the commanding officer of our squad- 
 ron, that the government of Peru is continuing its operations against the vessels of 
 the Chilian navy. 
 
 The repetition of such insidious attempts on the part of that government, at the 
 time when your excellency assures me of the desire it expresses to negotiate for peace, 
 convinces me that its purpose is not genuine. 
 
 For this reason I see no well-founded motive for suspending the military operations 
 which have been confided to me in the absence of a special instruction from my 
 government. 
 
 So far as concerns respect for the property of neutrals which, your excellency is 
 pleased to recommend to me in the notes, which I have the honor to answer, your ex- 
 cellency may rest assured that I will proceed in conformity with the prescriptions 
 of international law. 
 
 In conclusion, I beg your excellency to accept the high esteem with which I sub- 
 scribe myself your obedient servant, 
 
 PATRICIO lynch: 
 
 NO. 108. 
 
 Mr. Osborn to Mr. JEvarts. 
 
 No. 181.] Legation op the United States, 
 
 Santiago, Chili, November 23, 1880. (Received January 3, 1881.) 
 
 Sir: I have the honor to inclose a copy of a circular note addressed 
 by this government to the diplomatic representatives in Santiago, ex- 
 planatory of Chili's purposes in the war in which she is engaged, as also 
 an English translation thereof. 
 
 The government evidently fears that the discussion in the Arica con- 
 ference may have left an impression that in exacting Tarapaca as a con- 
 
142 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 dition for peace, Chili has proclaimed the right of conquest, and the 
 minister's note seems to be directed mainly to the removal of any such 
 belief. It is insisted, as you will observe, that the territory mentioned 
 was demanded as indemnity for damages sustained by Chili because of 
 the war-damages which, it is claimed, Peru is powerless to liquidate in 
 any other way. 
 
 The minister also touches upon the proposition made by the allies in 
 the conference to submit the questions in dispute tq the arbitration of 
 the United States, justifying the action of his government upon the 
 ground that the results of the war have given to Chili certain rights 
 which cannot well be determined in the manner proposed. As I have 
 heretofore written to you, my judgment is that the proposition for arbi- 
 tration was not made with the expectation that it would be seriously 
 entertained. Had the reverse been true, I assume that it would have 
 been submitted in some practicable form, rather than in the intangible 
 shape in which we find it. 
 
 I have, &c, 
 
 THOMAS A. OSBOEK 
 
 [Inclosure 1, in ~No. 181. — Translation.] 
 Chilian circular to the foreign representatives. i 
 
 Department of Foreign Relations, 
 
 Santiago, November 10, 1880. 
 
 Sir : At the commencement of the war into which Chili was provoked by the injus- 
 tice of Peru and Bolivia, my government made haste to lay before the friendly powers 
 the all-powerful reasons that compelled her to seek in war satisfaction for her grossly 
 offended honor and seriously imperiled interests, ends which, notwithstanding Chili's 
 repeated efforts, it had been impossible to attain by conciliatory measures. 
 
 The absence of all military organization consequent upon years of peace ; the habits 
 of the people of Chili, devoted to peaceful toil and industry ; the financial crisis that 
 then weighed upon the country, the wholly unarmed condition of the republic, which 
 had reached the point even of disbanding the national guard, her sale at public auction 
 of a number of her war vessels ; will demonstrate to your excellency's government how 
 distant from Chili was the thought of her tranquillity being interrupted, how sincere 
 was her love of peace. 
 
 The republic of Chili would never have abandoned her peaceful attitude, had it 
 not been for the^ continued violations of her most sacred treaty obligations on the part 
 of Bolivia ; the 'discovery of the existence of a secret compact against her integrity, 
 entered into between Peru and Bolivia, at a time when the outward relations of these 
 powers with Chili were of the most friendly character, and finally the outrages com- 
 mitted against her citizens, all of which compelled her to resort to arms in vindica- 
 tion of her rights. Involved thus in a war against her will, and after having ex- 
 hausted all peaceful means, she found herself compelled to accept it, as a last resort, 
 and she now relies to the end upon the justice of her cause and the unfailing zeal of 
 her people. 
 
 The hopes entertained by Chili have not beeD disappointed by the course of events ; 
 since the declaration of war her navy has annihilated the maritime power of Peru, 
 and now holds her principal seaports under blockade. Her armies, in numerous en- 
 gagements, have everywhere overcome her enemies; and she is now the mistress of all 
 the Bolivian coast, and a very considerable portion of that of Peru. An uninterrupted 
 series of defeats have made it impossible for the allied forces to recuperate their losses, 
 and rendered them powerless to resist our attacks. In the face of events already con- 
 summated, and the stern reality of what'has already occurred, the attempts made by 
 them to conceal the truth or misrepresent facts are futile. 
 
 Under this condition of affairs, so unquestionably in favor of Chili, the Govern- 
 ment of the United States, through its representatives near the three republics, ten- 
 dered their good offices as mediator for the re- establishment of peace. The Govern- 
 ment of Chili, true to its traditions and sincere in its international policy of loyal 
 friendship with all nations, with a firm resolution that she would interpose no ob- 
 stacle toward securing peace upon a firm and lasting basis, accepted the offer of the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 143 
 
 great Republic of the North, notwithstanding her repeated successes against the allied 
 powers. 
 
 Mediation having been accepted by Peru and Bolivia, it was also accepted by Chili, 
 and for this purpose a conference was held at Arica. The mode and result of this meet- 
 ing your excellency will find by a perusal of the copies of the documents I have the 
 honor to herewith transmit. 
 
 By the protocol at the first meeting of the conference, a memorandum was submit- 
 ted of the conditions that Chili deemed essential for the attainment of peace, which, 
 as I will proceed to explain to your excellency, were the only ones that could have 
 permanently and equitably put an end to the war. 
 
 In view of the situation of the belligerents, the series of victories obtained by Chili, 
 both on land and sea; the enormous expenditure of blood and treasure that the war 
 had cost the country; the blind tenacity with which the enemy persisted in carrying 
 it on, thereby uselessly increasing the expense and injury; the outrages committed on 
 our citizens whose property was confiscated and they expelled from the country ; the 
 obstacles thrown in the way of the development of our industries and commerce; in 
 view, I repeat, of these antecedents, it was not reasonable to suppose that Chili would 
 appear at the conference of Arica with other than a firm resolution to insist upon an 
 indemnity that should, in part at least, compensate for so many and so great sacrifices 
 on her part. 
 
 But two courses presented themselves that could make the attempt at an under- 
 standing and peace a success. One, the surrender of the territory according to the 
 first clause of the memorandum submitted to the plenipotentiaries of the allies, as 
 indemnity for the expenses and damages of the war, or the exaction of a stipulated 
 sum of money upon the same grounds, Chili holding the territory now in her posses- 
 sion as security and until the final payment of such indemnity. 
 
 The adoption of the latter course found an insuperable obstacle in the deplorable 
 condition of the finances of both Bolivia and Peru. For years past the embarrassed 
 condition of the allied powers has been well known. Crushed by the weight of an 
 enormous debt, without credit abroad, and, what is still worse, without order or sta- 
 bility at home, they had totally ignored their obligations. Unable to meet the inter- 
 est on their debt, the fact of the bonds of Peru appreciating in value' upon the occu- 
 pancy of her territory by Chili, will show the point of insolvency she had reached in 
 the estimation of Europe. How, then, would it have been possible for Chili to obtain 
 from such powers the payment of the indemnity to which she was justly entitled 1 
 
 An arrangement by which Chili should hold the territory occupied by her armies as 
 security for the payment of the expenses of the war by means of' the income derived 
 from the same, was wholly inadmissible. The holding of this territory would neces- 
 sarily involve the military occupation of it by the conquering power, and this could 
 not be done without a heavy outlay to be paid by the allies. On any other terms the 
 result, as far as regarded Chili, would be illusive. Such an arrangement never could 
 have put an end to the war ; however moderate the sum agreed upon as indemnity 
 might be, it, increased by interest and the charges of a military occupation, would 
 very soon place the sum beyond the power of the debtors to pay, while the irregular 
 condition of affairs in the territory, by reason of the coexisting authority of Peru and 
 Bolivia on the one side, and the forces of Chili on the other, would be productive of 
 serious conflicts that could not long delay in again resulting in war, thus defeating 
 the prime purpose that Chili has in view, the attainment of a solid and lasting peace. 
 
 The security being thus inadequate, Chili had no other resource but to demand the 
 surrender of the territory as the only means of securing indemnity for her sacrifices 
 and expenses. The government, in insisting on this stipulation in its instructions to 
 its plenipotentiaries, did not simply seek an extension of its frontier. The faithful 
 exponent of the feelings of its people, it adopted the only means that the depressed 
 condition of the finances of the allies rendered it possible for them to grant; one that 
 circumstances had imposed, and which they were powerless to change. 
 
 The allied governments will no doubt endeavor to make it appear, as did their plen- 
 ipotentiaires at the conference, that Chili maintains the right of conquest. - 
 
 The truth, however, will prevail in spite of all that may be said. The fact, clear and 
 indisputable, alone remains, and that is, that Chili is entitled to indemnity for the ex- 
 penditures and sacrifices incurred by her in the war, and that the allied governments 
 have not the means of satisfying them. 
 
 The surrender of the territory furthermore involved on the part of the successful 
 power a recognition of the mortgages and incumbrances created upon it by Peru to 
 her foreign creditors. 
 
 The Republic of Chili possesses an extensive and fertile soil whereon her people 
 may toil in peace. She has always lived in harmony, devoted to her own internal 
 improvements. She has ever given proofs of her desire to seek a peaceful solution of 
 all international questions. She has always been ready to defend the integrity and 
 independence of her sister republics, when threatened. She has been the champion 
 of Peru herself, and never could she have suspected that her demand that Bolivia 
 
144 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 should live up to her treaty obligations would have been the cause of war. The Re- 
 public of Chili, with such antecedents, never appeared at the Arica conference for the 
 purpose of maintaining the principle of the right of conquest. She appeared there 
 solely for the purpose of obtaining indemnity for the expenses of the war, and the as- 
 surance of a solid and lasting peace in the future. Such was her right and the natural 
 consequence of the justice of her cause, confirmed by the successes of her armies. The 
 powers that forced her into an unjust war and that still insist on carrying it on, not- 
 withstanding their reverses, are the ones responsible for the sacrifices and damages of 
 which they were the cause. Chili under these circumstances commits no more act of 
 conquest than does a creditor commit an act of despoliation when he seeks payment 
 of the debt due him through the real estate of his debtor who has nothing else with 
 which to discharge his obligation. 
 
 The demand of Chili is furthermore, founded on other considerations not less worthy 
 of notice. The territory' belonging to the allied powers, lying south of the Camarones 
 Valley, consists for the most part of desert lands with a very small native population. 
 The greater part of its occupants are foreigners, of which the Chilians are the most 
 numerous. It is they who are the principal owners and workers of the country. It 
 is their capital and enterprise that have given value and importance to those hitherto 
 barren wastes. The peculiar topographical conditions of this territory, the fact of its 
 being at so great a distance from the seat of its own government, while its commerce 
 and traffic largely depended on Chilians, made the character of the surrender de- 
 manded, as far as national susceptibilities were concerned, much less obnoxious than 
 may have been the case in other instances of the annexation of neighboring territories. 
 National susceptibilities, as is well known, do not exist in that locality, and this 
 would have gone very far toward facilitating an easy assimilation of its elements, 
 tending to the development of its wealth and prosperity. 
 
 Chili seeks that compensation to which she is justly entitled ; she seeks a guarantee 
 of peace for the future. In assuring these important ends, she proposes as a basis of 
 arrangement a means that is not now and never has been ignored among civilized 
 powers. ■ Her frank and open demands should not be viewed with suspicion, nor 
 should they inspire the other portions of the American continent with any feelings of 
 uneasiness. 
 
 The other conditions demanded by Chili are the natural sequences of the first con- 
 dition. They are in perfect harmony with the obvious and rightful considerations 
 emanating from the subject. 
 
 The war has not only entailed enormous sacrifices of treasure and of blood upon Chili 
 as a nation, but it has also been productive of similar sacrifices to her commerce and 
 industries, and to her private citizens who were business residents of the territory of 
 the allied powers from whence they were forcibly expelled after being despoiled of 
 their real estate, their capital, and their personal property. The second and third 
 stipulations of the memorandum provide for the indemnification of such injured par- 
 ties ■ Their future, after the manner in which they were treated, cannot be a matter 
 of indifference to my government. 
 
 The fourth stipulation is open to no objection whatever. It simply providesfor the 
 de livery to Chili of a transport that was the property of the republic. 
 
 The fifth becomes a matter of absolute necessity, when we take it into consideration 
 that the war grew out of a secret treaty, and that the incentive to the treaty of alli- 
 ance now sought to be brought about between Peru and Bolivia, as stated by these 
 governments themselves, was to more effectually hostilize Chili. Such a treaty would 
 be a standing menace to the peace that Chili so earnestly desires. 
 
 The sixth stipulation, with reference to the holding of certain territory as a guaran- 
 tee for the fulfillment of the other conditions imposed on the allied powers, is abso- 
 lutely necessary. 
 
 The seventh and last becomes important, in o rder to give to the peace sought to be 
 obtained that stability which the interests of the belligerents themselves, as well as 
 the other powers of the Pacific, demand. If the northern frontier of Chili should he 
 ■established at the Camarones Valley, and the port of Arica thereafter fortified and 
 converted into an impregnable fortress, it would be a constant source of danger to 
 Chili, obliging her also to fortify her own frontier. In either case peace would always 
 be in jeopardy, and this may be avoided by making the said port for all time simply 
 and exclusively a commercial port. 
 
 Furthermore, it is known that when the boundaries of Bolivia were arranged, she 
 was given a geographical position inimic al to the logical development of her resources. 
 It is also known that the port of Arica is the most suitable and best adapted to the 
 commercial requirements of Bolivia. This fact would render its fortification still 
 more dangerous and improper. 
 
 Before concluding the present communication I deem it proper to notice two impor- 
 ant points submitted to the Arica conference, viz, the proposition of the plenipo- 
 entiaries of the allied powers to bring the war to a close through the -arbitration of 
 he power then acting as mediator, and the interpretation given by his excellency 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 145 
 
 Mr. Baptista, the Bolivian plenipotentiary, to the secret treaty of alliance, offensive 
 and defensive, so mysteriously entered into between Peru and Bolivia in 1873, and 
 which has been the cause of the lengthened struggle in which we now find ourselvea 
 iuvolved. 
 
 , Unquestionably the method most in harmony with the interests of humanity, the 
 one best calculated to preserve friendly international relations, is, in cases of conflict, 
 to submit to the arbitration of a third power, which might impartially and without 
 prejudice decide as to which side was right ; but this method has its appropriate time 
 for application ; unfortunately, the time at which it was suggested by the plenipoten- 
 tiaries of the allied powers deprived it completely of its applicability. When diplo- 
 macy had exhausted all its resources and war appeared to be inevitable, Chili pro- 
 posed arbitration to Bolivia and it was peremptorily declined. War was the conse- 
 quence, and your excellency is aware of the results and sufferings that have followed. 
 Chili, through her efforts, has obtained decisive advantages over her adversaries, and 
 has by reason of the war become invested with clear and important rights. What 
 point, therefore, would the arbitrator be called upon to decide? The question of 
 rights is one no longer open to discussion ; it is now simply a question of accepting or 
 declining through war what has already been accomplished by war. 
 
 Success has its obligations, and they increase in. the ratio of the sacrifices and the 
 risks incurred in obtaining it. These obligations are still further increased wien deal- 
 ing with an enemy who, although defeated by land and sea, tenaciously holds out in 
 the struggle when resistance is vain. 
 
 Bolivia rejected arbitration when it was offered by Chili: Peru became her ally 
 with a full knowledge of all the facts, and it is now both logical and natural that she 
 should accept the consequences-of a war -that she might have prevented, but did not 
 choose to prevent. If suoh was not the case, if it should be held that a power is 
 obliged to suspend hostilities at the request of its antagonist, when the antagonist had 
 provoked the war and been unsuccessful in its issues, war would cease to be a right. 
 In the midst of the train of evils that it entails it would fail to achieve the only "ben- 
 efit to be derived from it, that of compelling the vanquished to repair the injury they 
 had caused, and to respect in the future the rights of others in accordance with interna- 
 tional treaties. But for these considerations Chili would have accepted the proposed 
 arbitration with full confidence in the impartiality of the arbitrator. • 
 
 With regard to the interpretation of the secret treaty of 1873 given by his excellency 
 Mr. Baptista at the conference, I will take occasion to say that the ' circumstances 
 under which it was negotiated, and the means adopted to give it effect, show a pur- 
 pose directly the opposite of the one,sought to be attributed to it, viz), that of strength- 
 ening the fraternity and union of the republics of America. In no other light can ex- 
 planation be given for the secrecy that was observed with regard to it for more than 
 six years ; for the. irregular manner in which it was passed by the congresses of Peru 
 and Bolivia ; the denial of its existence by the former of these powers when interro- 
 gated by Chili with regard to its existence ; and, finally, the exclusion of Chili from it 
 when Chili at the same time was the ally of the powers that were conspiring against 
 her. The treaty was a measure directed against Chili, and my government so de- 
 monstrated at the commencement of the war. 
 
 The foregoing statement I trust will convince the sober j udgnjent of youT excellency's 
 government that Chili took part in the conference with a sincere desire of putting an 
 end to the war ; that the conditions submitted by her plenipotentiaries were the only 
 ones that could be productive of a lasting and equitable peace ; that her conditions 
 were neither exaggerated nor onerousunder the circumstances in which thebelligerents 
 are now placed, and that whatever may be the consequences of the continuance of the 
 war, the allies, through their persistence in refusing to accede to the just demands of 
 Chili, are alone responsible for it. 
 
 My government, sir, profoundly regrets that the Arica conference has been barren 
 of results, and that the noble efforts of the mediating power in its endeavor to re-estab- 
 lish peace have been sterile, for all of which efforts Chili is sincerely grateful. 
 
 With the request that your excellency will be pleased to make thisstatementknown 
 to your government, I have to beg you will accept the assurance of my distinguished 
 consideration, and remain your most, &.C., 
 
 MELQUIADES VALDEERAM A. 
 S. Ex. 79 10 
 
146 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 109. 
 
 Mr. Osbom to Mr. Evarts. 
 
 ~So. 182.] Legation op the United States, 
 
 Santiago, Chili, November 30, 1880. (Received January 21.) 
 Sir : On the 21st instant, I received the following cablegram : 
 
 Washington, November 19. 
 O^BJORN, Minister; Santiago, Chili : 
 
 You are authorized to unite with your colleagues in pressing upon Chili the adoption 
 of the measures agreed upon in a diplomatic conference at Lima for securing the lives 
 and property of neutrals when Lima is attacked. This authority is to be used only in 
 case these measures are approved by Christiancy and yourself as within neutral policy 
 and this concurrent representation seems to you useful. You are also authorized to 
 join in asking a direct answer from Chili, if in your judgment the requirement is 
 justified 'by the situation. Telegraph your action. 
 
 EVARTS, 
 Secretary, Washington. 
 
 A few brief interviews with my colleagues touching the details of the 
 measures adopted at the Lima diplomatic conference, and the steps 
 hitherto taken, Jiaving in view their acceptance by this government, 
 served to impress me with the belief that any movement now by this 
 legatipn in the direction indicated in your dispatch would be exceedingly 
 impolitic, and this belief was strengthened to conviction by the informal 
 conversation which 1 subsequently had with the minister of foreign rela- 
 tions, Mr. Valderrama. 
 
 As you know, the measures referred to provide for the protection of all 
 private property, neutral and otherwise, in Lima, and determine the man- 
 ner in which the Chilian army may bombard, occupy, and police the city. 
 This programme was submitted to the consideration of the Chili cabinet 
 ■early in October by the European representatives. In response, this 
 government declared that it was its purpose to protect as far as possi- 
 ble the interests of neutrals in Lima, but maintained, in justification of a 
 refusal to adopt unqualifiedly the measures proposed, that such action 
 might tend to seriously embarrass the army in its legitimate operations. 
 With this answer, it seems, the European governments were not satis- 
 fied; hence this renewed effort in the direction indicated. 
 
 I have had frequent conversations with Minister Valderrama concern- 
 ing the protection of lives and property of neutrals in Lima in case that 
 •city should be attacked, and on the 24th instant, in an interview with 
 him, I intimated a desire to know what measures had been adopted to 
 that end. He was quite unreserved in his answer, asserting that it was 
 the sincere desire of his government that neutral interests should be 
 fully protected, but justified the refusal to adopt the measures proposed 
 by my colleagues upon the ground heretofore stated; that is, that the 
 army might thereby become seriously crippled in its proper operations 
 against the enemy. He informed me, however,, that, with a view of 
 affording the protection desired, the general in commandhad been directed 
 ro confer with the dean of the diplomatic corps at Lima, and, in so far 
 us the same could be done without interfering with the legitimate opera- 
 tions of the army, to adopt his suggestions to that end. An English 
 translation of the note of Minister Valderrama, repeating the assurances 
 <• iven me in conversation, will be found inclosed. 
 
 In addition to what is said in the minister's note, I may add that I 
 have known for some time that the government was desirous of avoid- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 147 
 
 iug a scandal growing .out of the operations at Lima, and that precau- 
 tions were being taken to that end. The minister of war is with the army 
 in the field, as is also Mr. Altamirano, the intendente of Valparaiso, who 
 has gone north as secretary for the geueral-in-chief. These gentlemen 
 are men of high standing, and I am assured that the chief reason for 
 their attendance upon the army is the solicitude of the government upon 
 this subject. 
 
 On the 26th instant I telegraphed you as follows : 
 Evarts, Washington : 
 
 Regard pressure of Lima measures useless and impolitic, Government adopts strin- 
 gent measures for protection of neutrals in Lima, but rejects European pressure. 
 
 OSBORN. 
 
 I am credibly informed that the Lima measures were not pressed upon 
 this government by the European representatives with much earnest- 
 ness ; but, be that as it may, the response to their efforts was substan- 
 tially the same as that received by me. 
 I have, &c, 
 
 THOMAS A. OSBOBN. 
 
 flnclosure in No. 182 Translation.] 
 
 Mr. Valderrama to Mr. Osoorn. 
 
 Republic of Chili, Ministry of Foreign Relations, 
 
 Santiago, November 25, 1880. 
 
 Sir: Referring to the conference that I had yesterday with you, and in which you 
 expressed a desire to know if my government had taken any measures for the purposes 
 of protecting, in as far as may be possible, the persons and interests of foreigners lo- 
 cated in Lima and Calhio, in case hostilities against said cities should be undertaken, 
 I now have the honor to repeat to you what, in that respect, I expressed to you 
 verbally. 
 
 My government feels a deep interest in that the persons and property of foreigners 
 should remain as far as possible exempt from all damage in the future operations that 
 it may be necessary to undertake against those cities, and to this end has recommended 
 very especially to the chief of our forces that he should respect these persons and 
 properties. In order that this protection should be more efficacious, my government 
 has directed that the chief of our forces should hear all the suggestions that the dean 
 of the diplomatic corps in Lima should be pleased to make to him in this regard, and 
 to accept them in so far as they should not be opposed to or should not embarrass the 
 legitimate operations of our army. My government believes that on the field of actual 
 operations the Chilian commander, upon the representations of the dean of the diplo- 
 matic corps, will be the better able to protect the important interests" of neutrals, 
 which the government ardently desires may be protected in the military opeaations 
 which our army has been directed to carry out. 
 I avail, &c, 
 
 MELQUIADES VALDERRAMA. 
 
 No. 110. 
 
 Mr. Evarts to Mr. Osbom. 
 
 No. 115.] Department op State, 
 
 Washington, December 27, 1880. 
 Sin: My attention has been called to the following passage of your 
 remarks at the conference" held at Arica, Peru, on the 15th of October 
 last, as reported in the second protocol of those conferences : 
 
 ". His excellency Mr. Osborn remarked that it seemed proper to him, as well as to his 
 colleagues, to place upon record that the Government of the United States does not 
 
148 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 seels the position of arbiter in this question. A strict compliance with the duties 
 inherent to that position .would involve much trouble and* great labor, and, while he 
 could not doubt that his government would accept the position if properly requested 
 to do so, it was nevertheless proper that it be understood that its representatives did 
 not court that distinction. 
 
 As it is not quite clear what the meaning and scope of your remark 
 on that occasion was, I will thank you for explanation upon the subject. 
 There was no impropriety in your making it clear to the representatives 
 of the belligerent states that this government had no desire to unduly 
 urge its arbitration upon them. If, however, it was your purpose to 
 convey the impression that we would not cheerfully assume any labor 
 and trouble incident to arbitration in the interest of peace and the serv- 
 ice of justice, you have not correctly appreciated the views and wishes 
 of this government. It is the sincere desire of the President to see an 
 honorable and lasting peace secured among the South American repub- 
 lics now engaged in war, and he will shrink from no effort or responsi- 
 bility which cm properly tend to the accomplishment of such a desirable 
 result. 
 
 In order to remove a possibly wrong impression which your language 
 may have made upon the representatives of the belligerent powers, you 
 will read this instruction to the minister for foreign affairs of Chili ; and 
 I will instruct Mr. Christiancy and Mr. Adams to read a copy of it to 
 the ministers for foreign affairs of Peru and Bolivia, respectn'ely. 
 I am, &c, 
 
 WM. M. EVAETS. 
 
 No. 111. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No. 187.] • Legation of the United States, 
 
 Santiago, Chili, January 3, 1881. (Received February 21.) 
 Sir : In the circular note which minister Valderrama addressed to the 
 diplomatic corps on the 10th of November last, a copy and translation 
 of which accompanied my No. 181, is found the following sentence : 
 
 The cession (meaning the cession of Tarapaca by Peru), carried with it, moreover, 
 the obligation on the part of the victorious nation of accepting as its own all the 
 hypothecated bonds given by the Peruvian Government to its foreign creditors. 
 
 The guano beds in the Tarapaca. district, as is well known, have been 
 mortgaged by Peru to secure the payment of a large part of her public 
 debt, and the expression here quoted was very generally accepted as a 
 formal recognition of these obligations in the event, of a change in the 
 sovereignty of the district. Subsequent discussion in the newspapers 
 and in the two houses of Congress, however, apparently developed the 
 fact that the country was not prepared to accept this doctrine as its 
 policy, and the minister has felt himself called upon to explain in an- 
 other note, a copy of which I herewith inclose, with English translation. 
 
 It will be observed that the interpretation which had so very gener- 
 ally been accepted was entirely erroneous, and that the minister does 
 not desire to be understood as having committed his government to the 
 payment of any part of the Peruvian debt or the recognition of any of 
 its mortgages, but that all claims in the district referred to are to be 
 settled in accordance with the principles of international law. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 149 
 
 If the influences which have driven minister Valderrama into writing 
 the inclosed note shall continue in the ascendency, I fear that Peru- 
 vian mortgage bonds are likely to remain a very precarious investment. 
 I am not aware that any of these mortgage securities are held by 
 American citizens. The loan for which they were issued was raised in 
 Enrope, principally in Great Britain and France. 
 I have, &c, 
 
 THOMAS A. OSBOEK 
 
 [Inclosure in Mo. 187.— Translation.] 
 
 Mr. Valderrama to Mr. OtbOfn. 
 
 Republic of Chili, Ministry of Foreign Relations, 
 
 Santiago, December 24, 1880. 
 
 Sir : On the lOtli of November ultimo I had the honor of addressing you informing 
 you of the result of the conference held on hoard the Lackawanna in the bay of Arica, 
 in the last days of October. 
 
 In view of the instructions given to our plenipotentiaries in the event of certain 
 contingencies arising in connection with the conference, I then stated that the ceding 
 of the territory claimed by Chili would have implied on the part of Chili a recogni- 
 tion of the mortgages executed by Pern to. her foreign creditors. This expression 
 has not been properly understood, as appears from the interpellations directed, to the 
 government in both nouses of Congress. 
 
 By some, without taking into consideration the special circumstances of the case, 
 the circular of the 10th of November was understood to be an absolute definition of 
 the rights of creditors in the nature of an assertion of a principle ; such an interpreta- 
 tion of it is not correct. The statement referred to is intimately connected with the 
 instructions given to our plenipotentiaries, and both refer to the occurrences of certain 
 contingencies that never took place. 
 
 It is known that the conference at Arica was productive of no result, and that mat- 
 ters continued in the same condition they were before the said conference was held. 
 This statement thus becomes merely an expression of a fact which might have occurred 
 had the allies accepted all the conditions with which it was connected. It might also 
 have been a result of certain compensations or advantages provided for in the instruc- 
 tions, but it embraces no recognition of a right as has been supposed by some. 
 
 It was not intended in the circular alluded to, to define the rights of creditors. Its 
 Bcope was confined to certain facts that had already occurred and others that might 
 have grown out of the Arica conference if certain circumstances then in view had 
 taken place. The failure of the negotiations left matters in the same condition in 
 which it found them, and consequently the rights alleged by certain parties with re- 
 gard to the Tarapac£ district will be settled according to the precepts of international 
 law. This is the line of conduct which the government of Chili has observed from the 
 beginning, and in which it has the purpose of continuing. 
 
 With this explanation of the true meaning of the statement which has been so im- 
 perfectly understood, I avail myself of the opportunity of oiferin g to you the sentiments 
 of high consideration with which I am, &c, 
 
 MELQLTADES' VALDERRAMA. 
 
 E"0. 112. 
 Mr. Osbom to Mr. Evarts. 
 
 ]So. 190.J Legation of the United States, 
 
 Santiago, Chili, January 14, 1881. (Received March 7.) 
 Sir : Referring to your instruction No. 108, conveying information of 
 the convention concluded between the representatives of Chili and the 
 United States of Colombia, at Bogata, in September last, for the preser- 
 vation of peace between those republics, and directing me as to my 
 duties in the premises, I have the honor herewith to inclose a copy, with 
 
150 AFFAIRS IN' CHILI, PERU, AND BOLIVIA. 
 
 English translation, of a note received by me from the minister of for- 
 eign relations, together with a copy of my reply. 
 
 Yon will observe that the minister, after informing me of the execu- 
 tion of the convention referred to, says that it meets with the approval 
 of his government, and will be presented to the National Congress for 
 its action. He adds a request to be informed whether the designation 
 of the President of the United States to act as arbitrator in certain con- 
 tingencies mentioned in the convention will prove acceptable to the Gov- 
 ernment of the United States. 
 
 My reply, as you will see, is an assurance that the President will deem 
 himself privileged in being permitted to respond to the flattering trust 
 reposed in him, if his services should be required. 
 I have, &c, 
 
 THOMAS A. OSBORX. 
 
 [Inclosure 1 in No. 190. — Translation.! 
 Mr. ralderrama to Mr. Osborn. 
 
 Republic of Chili, 
 Department of Foreign Relations, 
 
 Santiago, December 23, 1880. 
 
 Sir : I have the honor to inform you that on the 3d of September last a convention 
 " ad referendum" was entered into at the city of Bogota by the minister of foreign re- 
 lations of Colombia and the charge' d'affaires of Chili near that republic, copy of 
 which accompanies the present, by the terms of which both countries agree to submit 
 to arbitration the decision of all questions that may arise between them and which it 
 may be found to be impossible to decide by diplomacy. 
 
 My government has no hesitancy in accepting the principle of arbitration thus estab- 
 lished, and will submit the convention to the National Congress. 
 
 With regard to the designation of his excellency the President of the United States 
 of America as umpire in the cases specified in Article II, my government hopes that 
 it will not prove unacceptable to your excellency's government, and that in it your 
 government will see a reciprocation of the many and strong proofs of friendly feeling 
 that Chili has received from it. 
 
 Notwithstanding these marks of confidence, I am directed by his excellency the 
 President of the Republic, in bringing this subject to your notice, to inquire whether 
 the Government of the United States will give a favorable consideration to the selec- 
 tion which has been made of the President of the Union for the cases referred to. 
 
 I avail myself of the occasion to renew the assurance of my distinguished considera- 
 tion. 
 
 MELQUIADES VALDEERAMA. 
 
 [Inclosnre 2 in Xo. 190.] 
 
 Mr. Oshorn to Mr. Valdeirama. 
 
 Legation of the United States. 
 
 Santiago, January 7, 1?>1. 
 
 Sir : I have to acknowledge the reeeiptof your excellency's note of the 23d ultimo, 
 inclosing a copy of the convention entered into on the 3d of September last "ad 
 referendum" between the Republic of Chili and that of Colombia, providing for the 
 settlement by arbitration of all such questions as may arise between the two govern- 
 ments which it may be found impossible to arrange through diplomatic intercourse, 
 designating at the same time the President of the United States as umpire, and in- 
 quiring whether the Government of the United States would lend favorable considera- 
 tion to the selection therein made of its President as umpire for the cases provided for 
 by the convention referred to. 
 
 In reply I have to say that I can best answer your inquiry by transcribing the text 
 
AFFAIES IN CHILI, PERU, AND BOLIVIA. 151 
 
 of a communication on this subject received from my government under date of Octo- 
 ber 13, and which is as follows : 
 
 "That should occasion for arbitration arise under the treaty, the President will 
 deem himself privileged in being able to respond to the flattering trust reposed in 
 him, and evincing the friendship of the people and Government of the United States 
 for both republics." 
 
 I may add that my government experiences the liveliest satisfaction at the course 
 proposed by your excellency's government and that of the Eepublic of Colombia, re- 
 garding it as a concurrence in a great principle successfully inaugurated and put in 
 practice by the Government of the United States. 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 No. 113. 
 
 Mr. Evarts to Mr. Osborn. 
 
 No. 119.] Department of State, 
 
 Washington, February 10, 1881. 
 
 Sir: The information which the Department gleans from the press 
 reports that the Chilian forces have taken Lima and Callao, and that 
 the Peruvian forces and government have fallen back into the interior. 
 
 Under these circumstances, of which I have as yet no confirmation 
 from yourself and Mr. Christiancy, it is naturally to be inferred that the 
 time has come when the Peruvian Government would not refuse to treat 
 for peace upon any supportable basis, and that it would turn to the 
 good offices or mediation of this government, with hope, if not expect- 
 ancy, of an end to the war being reached. 
 
 I have, to-day, instructed Mr. Christiancy to press upon the Govern- 
 ment of Peru, and upon such Chilian authorities as he may have access 
 to, the earnest desire of this government to bring about a peace without 
 delay and upon reasonable and honorable terms, compatible with the 
 true welfare of all tne belligerents, so as to be lasting. I have directed 
 him to urge the desire of this government with all that pressure which, 
 under the circumstances, may appear to him to be admissible and 
 proper to the gravity of the occasion. 
 
 Your own urgent efforts will be exerted in the same direction. 
 1 am, &c., 
 
 WM. M. BVAETS. 
 
 No. 114. 
 
 Mr. Osborn to Mr. Evarts. 
 
 No. 195.] Legation of the United States, 
 
 Santiago, Chili, February 24, 1881. (Received April 5.) 
 Sir: Referring to your instruction No. 115, wherein you quote from 
 remarks made by me at the Arica conference, touching the suggestions 
 there made concerning the submission of the questions in dispute to the 
 President of the United States as arbiter, and in which you express an 
 apprehension that possibly I may not have correctly interpreted the 
 views of the Government of the United States in that regard, I have to 
 say that I have read your instruction to the minister of foreign relations, 
 as therein directed, and am assured by him that his government has not 
 been misled, in the least, by the remarks quoted by you from the pro- 
 tocol. 
 
152 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 For nearly two years this- government has known of the earnest de- 
 sire of the President of the United States to see an honorable termi- 
 nation of the unfortunate war in this section, and of his willingness to 
 contribute in every proper manner to the accomplishment of that result. 
 This assurance in the precise sense of your instruction, if not in its ex- 
 act language, Las been given not once only, but repeatedly, until there 
 has been left no room for doubt upon that subject. 
 
 The remarks quoted, to be correctly appreciated, should be read in 
 connection with the discussion which was then going on in the confer- 
 ence, and in the light of surrounding facts. They were not intended 
 to qualify or change, in the slightest degree, the views of the Govern- 
 ment of the United States as hitherto made known to the several bel- 
 ligerents. Their purpose was to cover the single question then being 
 discussed, and I am not informed that either of the belligerents under- 
 stood them in any other sense. 
 
 As you well know, since the Chilians succeeded in getting possession 
 of the province of Tarapaca this government has not been willing to 
 listen to suggestions regarding peace which did not involve a cession of 
 such province by Peru. The State Department contains many dispatches 
 from me to this purport, and I judge, the allies were well informed on 
 this point. It is impossible that they should have remained ignorant of th e 
 fact that the condition of public sentiment here was such as to preclude the 
 possibility of a peace upon any other basis. "When Mr. Ohristiancy was 
 here, prior to the conference of Arica, President Pinto told him emphatic- 
 ally that our mediation would come to naught unless Peru was ready to 
 make this concession. I assume that the Pierola government was informed 
 of this by Mr. G, upon his return to Lima, and prior to the acceptance 
 by Peru of our mediation ; but, be that as it may, I am positively as- 
 sured that President Pierola was made acquainted with the facts in 
 this regard by the European' representatives in Lima. That they could 
 not have been ignorant in Peru on this point is evidenced by the fact 
 that Mr. Ohristiancy felt himself warrantedin saying to President Pinto 
 that he was confident that the demand made by Chili would be con- 
 ceded. 
 
 With this understanding, then, our mediation was accepted, and the 
 conference convened at Arica in October. The ministers who went from 
 Chili were instructed to demand, among other things, Tarapaca. The 
 sentiment of the country was a unit upon this point, and the govern- 
 ment could not have done less and stood. 
 
 In the presence of these facts you will, perhaps, be able to compre- 
 hend with what surprise and mortification I listened to the reply of the 
 allies in the second conference, wherein .they announced that the very 
 condition which was irrevocable presented an " insurmountable obstacle" 
 to the conclusion of a peace. It was after this announcement of the 
 conclusion reached by the Peruvian minsters, that Mr. Baptista, of 
 Bolivia, following an assurance that he and his colleague were quite in 
 accord with the representatives from Pern, suggested that perhaps the 
 difficulty might be solved by leaving the u remaining questions'" to arbi- 
 tration by the United States. The allies knew perfectly well that the 
 " remaining questions " were comparatively nothing in the settlement 
 of the difficulty. They understood then, as the Peruvian Government 
 at least had understood before our mediation was accepted, that the 
 unbending demand of Chili would continue to be the cession of Tara- 
 paca, and that peace was impossible unless that point should be yielded. 
 In view of all this, how hollow was the proposition touching arbitration ; 
 how insincere. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 153 
 
 It will not be forgotten that circumstances conspired to make our 
 mediation exceedingly unpopular in Chili. For present purposes it 
 will be sufficient to refer to this fact generally without calling atten- 
 tion to the causes therefor. So strong was the sentiment in opposition 
 to the movement immediately preceding the holding of the conference 
 that I am confident the government would have gladly retraced its steps 
 in that matter if it could have honorably done so. The country was 
 exceedingly sensitive upon the subject, and there was very great- danger 
 that the government would fall. All this I knew perfectly well, per- 
 haps better than my colleagues. I felt the full responsibility of my 
 position, and endeavored to so discharge my duty as to leave the United 
 States Government blameless, let what might be the result of the move- 
 ment. With this knowledge, and this determination, the remarks which 
 you quote were made, and now, in the light of subsequent events, I do 
 not hesitate to say that if a different course had been pursued by us — if 
 we had given to the proposition submitted regarding arbitration a quasi 
 approval — American influence here would have been very seriously crip- 
 pled, if not entirely destroyed. As it was, the United States Govern- 
 ment came out of the movement standing better here than it had ever 
 stood before. 
 
 Trusting that this explanation may prove satisfactory, 
 I am, &c, 
 
 THOMAS A. OSBOEN 
 
 No. 115. 
 
 Mr. Osbom to Mr. Blaine. 
 
 ~No. 198.] Legation of the United States, 
 
 Santiago, Chili, March 23, 1881. (Received May 4.) 
 
 Sir: I have deemed it quite unnecessary to burden the archives of 
 the State Department with the scattered information which has from 
 time to time reached me from Peru since the occupation of Lima by the 
 Chilian forces, as you have doubtless been placed in possession of all 
 needed knowledge of events there by Minister Christiancy. Lima is 
 but little farther from New York, in the matter of mail communication, 
 than it is from Santiago, and you are, I judge, made acquainted with 
 incidents there transpiring almost as soon as I am. 
 
 The negotiations regarding peace have, on the part of Chili, been in- 
 trusted to Messrs. Vergara and Altamirano, two of the ministers who 
 participated in the Arica conference, and from what I learn I conclude 
 that these gentlemen find their task by do means an easy one. While 
 the war is practically at an end, yet serious difficulties appear to stand 
 in the way of peace negotiations. Whether these difficulties might not 
 in a measure have been avoided presents a question which I am not pre- 
 pared to discuss, nor am I sufficiently informed to warrant an expression 
 of opinion as to the real source of the blame, if blame there is. The 
 fact is, there are two pretended governments in Peru, that of Pierola 
 and that headed by Calderon. 
 
 The Chilian ministers, as you know, have emphatically declined to 
 enter into negotiations with Pmrola, alleging as a reason, as I under- 
 stand, that his government is without the necessary strength. It is 
 whispered, and perhaps truly, that other influences contributed to this 
 
154 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 determination, among which I may mention what is termed here an in- 
 sulting and untruthful insinuation by Pierola in one of his recent offi- 
 cial papers to the effect that the perfidy attached to the premature 
 commencement of the battle of Miraflores^ on the 15th of January, was 
 chargeable to the Chilian army. It will be remembered that on the 
 morning of the 15th, through the friendly efforts of the diplomatic corps 
 in Lima, a qualified armistice was arranged between the two armies, which 
 was to continue until midnight, but that notwithstanding at about two 
 o'clock in the afternoon fire was opened and the bloody battle of Mira- 
 flores followed. It is no secret here that in this engagement the Chilian 
 army narrowly escaped a serious disaster, and the government, the 
 army, and the people, are alike severe in their denunciations of Pierola 
 for what they term his treachery in this matter. 
 
 The government of Calderon has been accepted by several of the 
 Peruvian provinces, but there still remains a considerable portion of 
 the country which has not acknowledged its authority. I am induced 
 to believe, however, that President Pinto hopes that it will have acquired 
 ere long sufficient strength to warrant this government in entering 
 into negotiations with it. Mr. Altamirano is on his way down the coast 
 now, and will reach Santiago in a few days. He comes, I infer, to con- 
 fer with the government regarding the situation in Peru, and perhaps, 
 to receive final instructions touching the terms to be exacted in a treaty 
 of peace. 
 
 There is every reason why Chili should conclude a peace at the ear- 
 liest possible day, and I think the government so looks upon it. What 
 terms are to be insisted upon I do not know, but judge they will be quite 
 as severe as Peru, in its impoverished condition, can possible comply 
 with. In this regard, however, I see evidences here of a modification 
 of public sentiment, and from this I expect much. 
 
 I need scarcely assure you that my efforts shall continue to be exerted 
 in facilitating the restoration of peace. This, yonr instructions, as well 
 as my sense of duty, would require ; but I find an additional incentive 
 in my great desire to avail myself of the leave of absence granted me by 
 the State Department, and so long held in abeyance because of the war. 
 Since the receipt of instructions No. 119, which came to hand by the 
 last mail, I have had a friendly conversation with Minister Yalderama 
 concerning the negotiations at Lima, and after the arrival of Mr. Altami- 
 rano I expect to see him again, when I may have something worth com- 
 municating. The information upon which the instruction above men- 
 tioned was based seems to have been somewhat faulty in that it indicated 
 that President Pierola, with his army, had retired to the interior. It is 
 reported" here, and believed, that the Peruvian army was entirely dis- 
 persed, and that Pierola took refuge in the mountains surrounded by a 
 few followers only. 
 
 About 6,000 of the volunteer troops have been returned to Chili and 
 mustered out of the service. Geueral Baquedano, the commander-in- 
 chief, accompanied them, and they were received with universal rejoicing. 
 
 I inclose an English translation of General Baquedano's report of 
 events preceding the occupation of Lima by the Chilian army.* 
 I have, &c, 
 
 THOMAS A. OSBOK> T . 
 
 "This is a newspaper report oaiit^e 1 on account of its length. It can be furnished 
 if desired. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 155 
 
 No. 116. 
 
 Mr. Osborn to Mr. Blaine. 
 
 No. 201.] Legation of the United States, 
 
 Santiago, Chili, April 5, 1881. (Eeceived May 17. ) l 
 
 Sir: In my No. 198, in speaking of the prospects of peace, I informed 
 you that Mr. Altamirano, one of the ministers authorized to treat with 
 Peru, was on his way to Chili. Since his arrival he has had extended 
 interviews with the government regarding Ifie situation in Lima, and as 
 a result I have good reason for believing that the President's hopes 
 touching the government of Oalderon have been very seriously weak- 
 ened. The impression seems to be gaining ground that the demoraliza- 
 tion prevailing in Peru is so great as to prevent the establishment, at 
 present, of any government with sufficient solidity 7 to warrant Ghili in 
 negotiating with it. If this should become the view of the government, 
 as seems probable, the indications are that the policy for the future 
 would involve the removal to Ghili of all valuables belonging to the Gov- 
 ernment of Peru, the destruction of all means of defense, and the with- 
 drawal of the Chilian forces to Arica. Prom this point, itis inferred, 
 they would watch with interest the movements of the factions in Peru in 
 their struggles for the ascendency. Minister Vergara has been sent for r 
 and is expected in a few days, when it is understood a definite course is- 
 to be determined upon. 
 
 If the policy which I have outlined should be adopted, all talk regard- 
 ing a formal peace would be mere speculation. 
 I have, &c, 
 
 THOMAS A. OSBORN. 
 
 No. 117. 
 
 Mr. Osborn to Mr. Blaine. 
 
 No. 202.] Legation of the United States, 
 
 Santiago, Chili, April 6, 1881. (Eeceived May 17.) . 
 
 Sir: The representatives here of Great Britain, Prance, and Italy, 
 acting' jointly under instructions, have tendered the mediation of their 
 respective governments, with a view of putting au end to the war, but 
 this government has deemed it advisable to decline their offer. 
 
 I conclude that the agents of the European powers were not dissatis- 
 fied with the answer which they received. They probably regard the 
 present unsettled state of affairs in Peru as presenting a serious obsta- 
 cle to negotiations, and are, I judge, not disappointed that they should 
 be excused, by the action of this government, from entering upon the 
 performance of a work which would seem to have so little promise of a 
 happy result. 
 
 I have, &c, 
 
 THOMAS A. OSBOEN. 
 
156 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 118. 
 
 Mr. Martinez to Mr. Hitt. 
 
 [Translation.] 
 
 Legation of Chili, 
 Washington, D. C, May 6, 1881. 
 Esteemed Sie and Friend : The New York papers are publishing 
 a rumor that it is possible tihat Chili may establish a protectorate over 
 Peru, because that country cannot form a government of its own, and 
 because many sensible people are asking for such a protectorate. 
 
 I am sorry that I cannot call and speak with Mr. Blaine personally 
 on this subject. Nevertheless I desire to inform him, through you, that 
 there is no ground whatever for such rumor ; and that, even though all 
 the Peruvians should clamor for a protectorate, Chili would on no ac- 
 count consent to establish one. 
 
 With sentiments of highest esteem, &c, 
 
 M. MARTINEZ. 
 
 No. 119. 
 
 Mr. Osbom to Mr. Blaine. 
 
 No. 205.] Legation of the United States, 
 
 Santiago, Chili, May 1, 1881. (Received June 7.) 
 
 Sir: In my No. 201, of date April 5th, regarding the war in this sec- 
 tion, I mentioned the fact that the minister of war, Mr. Vergara, who 
 had been with tha army at Lima, had been sent for, and was then on 
 his way to Chili. Since his arrival the government has labored to reach 
 a conclusion touching the course to be pursued with Peru, and to that 
 end numerous and extended discussions among the ministers and promi- 
 nent citizens of the republic who had been invited to participate, have 
 taken place. Three plans or propositions were discussed : First, that 
 spoken of by me in my No. 201, involving the withdrawal of the army 
 to Arica ; second, the occupation of the entire Peruvian coast by the 
 Chilian forces, and its government by Chilian authorities ; and third, 
 the strengthening of the government of Calderon and the negotiation 
 of a peace therewith. The propriety of entering into negotiations -with 
 Pierola was not even dignified with a consideration. After much labor 
 the government reached the conclusion that the last proposition afforded 
 the easiest way out of their complications, and it has been determined 
 to send to Peru, in charge of the negotiations, Mr. Godoy, who in times 
 past represented Chili in Washington. Mr. G. is well qualified for 
 the delicate post which he is called upon to fill. He occupied the 
 position of minister to Peru for several years immediately preceding the 
 opening of hostilities, and is thoroughly informed of that country and 
 its people, and of the causes which brought about the present war. In 
 conversation with me yesterday, he expressed the belief that three or 
 four months would serve to bring the difficulties to a conclusion, and it 
 is to be hoped that the result may prove him to be not over-sanguine. 
 
 The ministry has freely counseled with me regarding the diffictdties of 
 the situation, and, in view of their previous determination to have noth- 
 ing to do with Pierola, I cannot but applaud the result of their delibera- 
 
157 
 
 tion. To vacate the country now would be to turn it over to anarchy, 
 and to attempt to occupy the entire coast would in time involve both 
 countries in ruin. The most feasible way to peace is, in my opinion, the 
 one resolved upon. In fact it is the only one which offers any reason- 
 able hope of a solution of the difficulties during the present generation. 
 
 I have endeavored to impress upon the authorities here, and not with- 
 out, I judge,, some measure of success, the propriety of their afford- 
 ing the government of Calderon greater freedom of action than it has 
 hrjherto enjoyed. I have urged upon them that if it is their purpose to 
 strengthen and dignify the new government, and place it in a position 
 to claim recognition at home and abroad, they should give it possession 
 of the capital freed from the embarrassments of Chilian military rule, 
 and should enable it to raise revenue for its proper support. It will be 
 remembered that the new government has been confined to a small 
 village in the neighborhood of Lima, which was exempted from the 
 operation of martial law, while the capital has been occupied by the 
 Chilian military authorities; and it will also be borne in mind that the 
 custom-house at Callao, almost the only source from which revenue can 
 be readily raised, has remained in possession of the Chilians. 
 
 This government will unquestionably insist upon the relinquishment 
 by Peru of the province of Tarapaca, and imless the Peruvian authori- 
 ties shall be found ready to concede this, the attempt to make peace 
 will fail. It is probable, also, that Chili will demand the province of 
 Moquegua, which includes the towns of Arica, Tacna, and Moquegua ; 
 but'I incline to the belief that they will not insist upon this to the ex- 
 tent of endangering the negotiations. They will doubtless move cau- 
 tiously, however, taking good care to see that they are to be sustained 
 by the country; and as the public expectation has been raised to a most 
 extravagant point, their way may be beset by serious difficulties. 
 
 1 regard it as quite probable that the terms of the treaty may provide 
 for the maintenance of Chilian garrisons at Callao and Arica until some 
 minor conditions shall be complied with. And it is Fell perhaps for the 
 interests of those who are concerned in the preservation of qrder there 
 that the term of this occupation should not be limited to too brief a 
 period. 
 
 I have, &c, 
 
 THOMAS A. OSBOEK. 
 
 No. 120. 
 
 Mr. Blaine to Mr. KilpatricJc. 
 
 No. 2.] • Department of State, 
 
 Washington, June 15, 1881. 
 Sir: The, unfortunate condition of the relations between Chili and 
 Peru makes the mission upon the duties of which you are now entering 
 one of grave responsibibty and great delicacy. Difficult as would be any 
 intervention of the United States under ordinary circumstances, our po- 
 sition is further embarrassed by the failure of the conference at Arica, 
 undertaken at our suggestion. It ;s evident from the protocols of that 
 conference that Chili was prepared to dictate and not to discuss terms 
 of peace, and that the arbitration of the United States upon any ques- 
 tions of difference with the allied powers of Peru and Bolivia was not 
 
158 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 acceptable and would not be accepted by the Chilian Government. Since 
 that time the war has closed in the complete success of Chili, and in 
 what can scarcely be considered less than the conquest of Peru and 
 Bolivia. 
 
 This government cannot therefore anticipate that the offer of friendly 
 intervention in the settlement of the very serious questions now pend- 
 ing would be agreeable to the Government of Chili. It would scarcely 
 comport with self-respect that such an offer should be refused, and it 
 would be of no benefit to Peru and Bolivia that it should be offered and 
 declined. But I am sure the Chilian Government will appreciate the 
 natural and deep interest which the United States feels in the termina- 
 tion of a condition so calamitous in its consequences to the best inter- 
 ests of all the South American republics. It should also know that if 
 at any time the interposition of the good offices of this government can 
 contribute to the restoration of friendly relations between the belliger- 
 ent powers, they will, upon proper intimation, be promptly offered. 
 
 While, therefore, no instructions are given you to tender officially any 
 advice to the Government of Chili which is unsought, you will, on such 
 opportunity as may occur, govern your conduct and representations by 
 the considerations to which I shall now call your attention. 
 
 Without entering upon any discussion as to the causes of the late 
 war between Chili on the one side and Peru and Bolivia on the other, 
 this government recognizes the right which the successful conduct of 
 that war has conferred upon Chili ; and, in doing so, I will not under- 
 take to estimate the extent to which the Chilian Government has the 
 right to carry its calculations of the indemnities to which it is entitled, 
 nor the security for the future which its interests may seem to require. 
 But if the Chilian Government, as its representatives have declared, 
 seeks only a guarantee of future peace, it would seem natural that Peru 
 and Bolivia should be allowed to offer such indemnity and guarantee 
 before the annexation of territory, which is the right of conquest, is in- 
 sisted upon. If thise powers fail to offer what is a reasonably sufficient 
 indemnity and guarantee, then it becomes a fair subject of considera- 
 tion whether such territory may not be exacted as the necessary price 
 of peace. 
 
 But at the conclusion of a war avowedly not of conquest, but for the 
 solution of differences which diplomacy had failed to settle, to make the 
 acquisition of territory a sine qua non of peace is calculated to cast 
 suspicions on the professions with which war was originally declared. 
 It may very well be that at the termination of such a contest the 
 changed condition and relation of all the parties to it may make read- 
 justment of boundaries or territorial changes wise as well as necessary ; 
 but this, where the war is not one of conquest, should be the result of 
 negotiation and not the absolute preliminary condition on which alone 
 the victor consents to negotiate. At this day, when the right of the 
 people to govern themselves, the fundamental basis of republican insti- 
 tutions, is so universally recognized, there is nothing more difficult or 
 more dangerous than the forced transfer of territory, carrying with it 
 an indignant and hostile population, and nothing but a necessity proven 
 before the world can justify it. It is not a case in which the power 
 desiring the territory can be accepted as a safe or impartial judge. 
 
 While the United States Government does not pretend to express an 
 opinion whether or not such an annexation of territory is a necessary 
 consequence of this war, it believes that it would be more honorable to 
 the Chilian Government, more conducive to the security of a permanent 
 peace, and more in consonance with those principles which are professed 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 159 
 
 by all the republics of America, that such territorial changes should 
 be avoided as far as possible ; that they should never be the result of 
 mere force, but, if necessary, should be decided and tempered by full and 
 equal discussion between all the powers whose people and whose national 
 interests are involved. 
 
 At the present moment, the completeness of the victory of Chili seems 
 to render such a diplomatic discussion impossible. The result of the 
 conflict has been not only the defeat of the allied armies, but the disso- 
 lution of all responsible government in Peru. Its soil is occupied, the 
 collection of its revenues transferred to the conquerors, and its executive, 
 legislative, and judicial functions in abeyance. It can neither enforce 
 order within nor assure peace without. 
 
 An effort, and apparently a very earnest and honest one, has been 
 made to create a provisional government, which shall gradually restore 
 order and the reign of law. But it is obvious that for such a govern- 
 ment to succeed in obtaining the confidence either of its own people or 
 foreign powers, it must be allowed a freedom and force of action which 
 cannot be exercised while Chili holds absolute possession and governs 
 by military authority. This government, therefore, has been glad to 
 learn from its minister in Chili, whom you succeed, that the Chilian 
 authorities have decided to give their support to the efforts of Senor 
 Calderon to establish on a steady footing a provisional government in 
 Peru. 
 
 You will, as far as you can do so with propriety and without officious 
 intrusion, approve and encourage this disposition on the part of the 
 Chilian Government, and this Department will be exceedingly gratified 
 if your influence as the representative of the United States shall be in- 
 strumental in inducing the Government of Chili to give its aid and sup- 
 port to the restoration of regular, constitutional government in Peru, 
 and to postpone the final settlement of all questions of territorial annex- 
 ation to the diplomatic negotiations which can then be resumed with 
 the certainty of a just, friendly, and satisfactory conclusion. 
 
 In any representation which you may make, you will say that the hope 
 of the United States is that the negotiations for peace shall be con- 
 ducted, and the final settlement between the two countries determined, 
 without either side invoking the aid or intervention of any European 
 power. 
 
 The Government of the United States seeks only to perform the part 
 of a friend to all the parties in this unhappy conflict between South 
 American republics, and it will regret to be compelled to consider how 
 far that feeling might be affected, and a more active'interposition forced 
 upon it, by any attempted complication of this question with European 
 politics. 
 
 If at any time you shall judge it expedient and advantageous to read 
 this dispatch to the minister of foreign affairs, you are authorized to 
 do so. The decision on this point is left to your discretion. 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
160 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 121. 
 
 Mr. Kilpatrick to Mr. Blaine. 
 
 No. 3.] Legation of the United States, 
 
 Santiago, Chili, August 15, 1881. (Received September 22.) ■ 
 
 Sir : The considerations and instructions contained in your dispatch 
 No. 2, dated June 15, 1881, relating to the course Chili should pursue 
 in the final settlement of peace with Peru, have received my earnest at- 
 tention. 
 
 Tou say in your dispatch that — 
 
 The Department will be exceedingly gratified if your influence as the representa- 
 tive of the United States shall be instrumental in inducing, the Government of Chili to 
 give its aid and support to the restoration of regular constitutional government in 
 Peru, and to postpone the final settlement of all questions of territorial annexation to 
 the diplomatic negotiations, which can then be resumed with the certainty of a just, 
 friendly, and satisfactory conclusion. 
 
 If I understand you aright this is the full intent and purport of your 
 dispatch. 
 
 Taking this for granted, I have the honor to report that, so far as the 
 assurances of public men can be relied upon, your instructions have 
 been complied with, your ideas of final terms of peace accepted, not 
 only by the present administration at Santiago, but, still better, by Senor 
 Santa Maria, the President elect, whose administration will have be- 
 gun when you receive this note. 
 
 I beg your patient attention to the somewhat lengthy explanation I 
 am compelled to make of my action in the matter. 
 
 As soon as I received your instructions I made inquiries to ascertain 
 the real intention of the Government of Chili regarding peace with 
 Peru. For a time I was completely misled ; it seemed as if the govern- 
 ment had no plan, but would leave the whole matter of final settle- 
 ment to the incoming administration. In this I was mistaken, as 
 were the public men of Chili with whom I conversed, outside the Pres- ' 
 ident and his cabinet. I discovered later on that the President was 
 alarmed at the views you advanced, delicately brought to his attention, 
 and in all probability would not be inclined to accept them. I at once 
 became satisfied that the President and his cabinet held not only other 
 views, but were contemplating absolute peace with the Government of 
 Senor Calderon. I therefore did not deem it wise to acquaint the Sec- 
 retary of State and the President with the full purport of your dispatch. 
 I adopted what I thought to be a wiser course ; I called upon Senor 
 Louis Aldunate, the first friend of the President elect, a gentleman of 
 great ability, who, I have reason to know, will occupy the first position 
 in the cabinet of President-elect Santa Maria. I read him your 
 dispatch, and at the same time informed him of my belief regard- 
 ing the intention of President Pinto. After a full discussion of each 
 separate point, and explanations of what I believed to be the result of 
 misinformation on your part regarding "annexation of hostile territory," 
 (to which I will refer again) your views were substantially accepted as 
 wise and just. Senor Aldunate immediately acquainted President-elect 
 Santa Maria with the contents of your note, and both have assuredme — 
 
 That not one foot of Peruvian territory will be exacted by force unless all efforts 
 of diplomatic negotiations shall fail, and that in no case can Chili treat finally with 
 the Government of Senor Calderon until it shall appear that his government is re- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 161 
 
 spected and obeyed throughout Peru, which does not obtain at this moment. That 
 no doubt President Pinto would like to celebrate the last days of his administration 
 by a proclamation of peace with Peru, with the Government of Calderon, a govern- 
 ment with out a single element that constitutes a real government, and that would 
 fall at once but for Chilian protection. 
 
 I was invited to attend Congress the following day, when the govern- 
 ment would be interpolated regarding its plans and purposes. I went, 
 found the House crowded with people, and, amid great excitement, heard 
 the cabinet of President Pinto questioned and worried by Senor Lira, 
 the first orator of Chili. I intended to send you translations of the 
 speeches in this debate, but am too unwell to attempt it. I have been 
 confined to my bed the greater portion of the time since my arrival in 
 Chili. This debate developed the fact that President Pinto was contem- 
 plating peace with the Government of Calderon — peace which, from the 
 nature of the debate, I was satisfied, must of necessity include territo- 
 rial annexation. Intimate friends of the administration not only con- 
 firmed this belief, but convinced me further that President Pinto was 
 determined to accomplish his purpose ; that he yet had time, and that 
 the Government of Calderon was in no condition to refuse any condi- 
 tions Chili might impose. How to prevent this without giving offense 
 to President Pinto I could not satisfactorily answer. I had gained the 
 incoming administration ; this was not sufficient. I determined finally 
 to approach the administration, and change its purpose if possible. I 
 sent for Senor Aldunate and Senor George Huneens, the solicitor for 
 the government whose name you will find frequently mentioned in the 
 paper relating to the Arica conference, and asked them to arrange for 
 me a meeting with the secretary of state and secretary of war, the 
 dominant members of the President's cabinet. 
 
 After some delay this was agreed upon, and a conference was held at 
 my house last night between Senor Valderrama, secretary of state, 
 Senor Vergara, secretary of war, Aldunate, and Huneens. The con- 
 ference lasted from 7 p. in. till one in the morning. I am too ill to give 
 you a full account of the meeting ; the result is all I can forward at this 
 time. 
 
 Your dispatch was read and fully considered, and its advice and sug- 
 gestions pressed upon the secretary of state. He finally replied. " The 
 ideas indicated by Secretary Blaine are in direct conflict with those held 
 by the Government of Chili, and if we abandon our policy it is out of 
 respect for the opinion of the administration at Washington. You may 
 therefore say to your government, that every effort would be given 
 by Chili to strengthen the Government of President Calderon, giving to 
 it the most perfect freedom of action, considering the Chilian occupa- 
 tion. That no question of territorial annexation would be touched 
 until a constitutional government could be established in Peru, acknowl- 
 edged and respected by the people, with full powers to enter into diplo- 
 matic negotiations for peace. That no territory would be exacted unless 
 Chili failed to secure ample and just indemnification in other and satis- 
 factory ways, as also ample security for the future, and that in no case 
 would Chili exact territory save when Chilian enterprise and Chilian 
 capital had developed the deserts, and where to-day nine-tenths of the 
 people were Chilians; and finally that Chili would never consent to sub- 
 mit her rights gained in battle to the arbitration of any European 
 power." This embraces, I think, all the important points contained in 
 your dispatch ; and if so, then I trust I have, fulfilled my instructions. 
 
 The character of the territory, its people, &c, that Chili may finally 
 be compelled to demand, I will speak of in my next communication. One 
 
 S. Ex. 79 11 
 
162 AFFAIRS IN CHILI, 
 
 other matter and I have done. The secretary of state has just placed 
 in my hands the following telegram, dated Lima, August 16 : 
 
 Hurlbut, the United States minister, has notified Calderon that the United States 
 will under no circumstances permit annexation of territory ' to Chili ; he has also 
 repeated this statement to outside parties. It is now the subject of conversation here, 
 complicates and endangers our occupation. 
 
 LYNCH, 
 Commandant in Chief. 
 
 If this be true, which I cannot believe, it will not only create bad 
 feeling here in Chili, but compromise my action. Certainly it is not in 
 conformity with my instructions, for you distinctly say Peru and Bo- 
 livia should be allowed to offer such indemnity and guarantee before the 
 annexation of territory, which is the right of conquest, is insisted upon." 
 Again, you say, " If these fail to offer what is a reasonable, sufficient 
 indemnity and guarantee, then it becomes a fair subject of considera- 
 tion whether such territory may not be exacted as the necessary price 
 of peace." In no way can the letter or spirit of your dispatch be tortured 
 into saying " The United States will nob permit in any case annexation 
 of territory to Chili." General Hurlbut has not sent me the Depart- 
 ment cipher, or I would telegraph him, that, he may know that he has 
 been misunderstood or misinterpreted, and in time correct false impres- 
 sions. If my mission is a delicate one, his is still more so, for he has two 
 governments to deal with, the Chilian Government, under Lynch, and 
 the provincial government of Calderon. I have done what I could to 
 satisfy the secretary of state that there must be some mistake ; that you 
 would not send one class of instructions to me and another to our min- 
 ister at Lima. 
 
 Very, &c, 
 
 J. KILPATEICK. 
 
 ISTo. 122. 
 
 Mr. Kilpatrick to Mr. Blaine. 
 
 No. 8.] Legation op the United States, 
 
 Santiago, Chili, October 14, 1881. (Received November 18.) 
 
 Sir: I have the honor to inclose copies of Senor Balmaceda's note of 
 the 8th instant, and my reply of same date. 
 
 In a previous communication I called your attention to the great dis- 
 quiet caused by the tenor of General Hurlbut's remarks when presented 
 to Senor Garcia Calderon. This was soon largely increased by telegrams 
 from persons in high position in Buenos Ayres, stating, in the most posi- 
 tive terms, my government had determined to prevent any annexation 
 of Peruvian territory, and to oblige Chili to accept au indemnity in 
 money or its equivalent. It was further added to by the general's note 
 to Senor Garcia Calderon, and by the reports of his general and private 
 conversation, in which he apparently confirmed the position assumed to 
 have been taken by my government; and, lastly, by the terms of his 
 memorandum to Admiral Lynch. 
 
 In replying to Senor Balmaceda, I deemed the time had arrived for 
 me, as far as my strength would permit, to take advantage of the au- 
 thority given in my instructions, and to make clear to the Government 
 of Chili the entire uniformity in the instructions to both legations, and to 
 establish beyond a doubt that my government holds fast to the policy 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 163 
 
 adopted at the commencement of the war. I have ample assurances 
 that my note has given great satisfaction. 
 
 Eegretting the unfortunate state of my health will not, for the moment, 
 allow a more exhaustive statement of affairs, and trusting my action will 
 meet your approval, 
 
 &c, 
 
 J. KILPATRICK. 
 
 [Inclosure in No. 8. J 
 
 Mr. Kilpatrick to Mr. Balmaeeda. 
 
 United States Legation, 
 
 Santiago, October 8, 1881. 
 
 Sir : I liave the honor of acknowledging the receipt of your excellency's note of this 
 date, in which you call my attention to the fact that the daily papers of Valparaiso and of 
 this capital have given publicity to a memorandum sent by my colleague in Lima, the 
 honorable Mr. Hurlbut, to Rear-Admiral Lynch, commander of the Chilian forces in the 
 capital of Peru. Your excellency is surprised at the publicity given to a confidential 
 document " of little importance, considering the form and circumstances under which, 
 the same was produced." Your excellency therefore considers it convenient to direct 
 a note to this legation " with the view of establishing the good faith and sincerity of 
 the relations so happily cultivated by our respective governments." 
 
 Although, as your excellency is aware, I have been for some weeks past, and still 
 am, seriously unwell, recognizing as I do the serious consequences, complications, and 
 misunderstandings that might possibly arise, consequent from the unwise publicity of 
 the memorandum of Mr. Hurlbut to Rear- Admiral Lynch, and the spirit thereof, at 
 least so far as may be judged from the document as published, the circumstances 
 oblige me, despite the warnings of my medical advisers, to accede without delay to 
 the wishes expressed by your excellency, and replying, although perhaps not in so 
 definite a manner as, owing to the occasion, I should desire. 
 
 In the first place allow me to assure your excellency in most unequivocal manner 
 the Government of Chili has no reason for disquietude, either as respects the inten- 
 tion or the attitude that my government may assume as to the war on the Pacific 
 coast. The Government of the United States has not at any time interfered officiously 
 in the public affairs of other countries, not even when its own interests have beea 
 compromised, and much less would it do so when the interests involved are those of 
 friendly nations respecting whom there can be no motive inducing it to partiality. 
 
 I had read the memorandum of Mr. Hurlbut, as also the speech at his reception by 
 President Garcia Calderon, both articles having been forwarded to me from Lima 
 some time since, and I at once communicated with my government regarding the same. 
 The first of said documents cannot be considered as having either official or diplo- 
 matic character, as the author himself says in the note of which your excellency has 
 sent me a copy. 
 
 The instructions given me by my government are, undoubtedly, the same as those 
 given Mr. Hurlbut, and it may be said in truth that they have none of the spirit pre- 
 dominating in the document to which your excellency alludes. The instructions of 
 the Secretary of State, Hon. Mr. Blaine, contain nothing of doubtful meaning, he hav- 
 ing such decided confidence in the intelligence, justice, and generosity of the Gov- 
 ernment of Chili that he authorized me to make them known to his excellency the 
 President, or his minister, should I at any time consider it convenient to communicate 
 them. 
 
 In order that no room for doubt may exist in your excellency's mind as to the posi- 
 tion of my government in regard to the conditions of peace between Chili and Pern, 
 and its determination to abstain from taking any part in the matter, I have no hesi- 
 tation in subjoining a copy of a paragraph of said instructions which reads as fol- 
 lows : 
 
 "Since the suspension of the Arica conferences the war has ended in a complete suc- 
 cess for Chili, and in what may be considered as little less than the conquest of Peru. 
 This government cannot undertake to suppose that the offer of a friendly intervention 
 in questions still pending would be agreeable to the Government ot Chili. But I am 
 sure the Government of Chili will appreciate the natural and profound interest taken 
 by the United States in the ending ot a situation so calamitous in its results to the 
 best interests of the South American republics. The Government of Chili must also 
 know that if at any time the interposition of the good offices of this government will 
 contribute to the re-establishment of friendly relations, they (the United States) will 
 promptly offer it whenever it manifests such wish. ' 
 
164 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 It is further added in these instructions that in all conversation with persons of your 
 excellency's government on this subject I am to observe established international law, 
 and that under no condition whatever am I to offer unsought advice to the Govern- 
 ment of Chili. 
 
 Again, in speaking of the provisional government of SeDor Garcia Calderon, which 
 the administration at Washington hoped to have seen established, my instructions are 
 to encourage the same only to the extent that it may be done in a dignified and neu- 
 tral way hy a plenipotentiary, without officious interposition. 
 
 I think these extracts of the instructions given me by my government will he suffi- 
 cient to convince your excellency that there exists, no intention on the part of my 
 government of interfering arbitrarily in the conflict existing on the Pacific coast, and 
 that its acts and conduct are those of a friendly nation desirous of proceeding in the 
 most delicate manner. 
 
 I trust, therefore, that your excellency's government will continue its full confidence 
 in the long and well-established policy of the United States, whose friendship has 
 lasted so many years and has never been more sincere than at the present moment. 
 
 With the .considerations of the highest regards and esteem, 
 I am, &c, 
 
 J. KILPATRICK. 
 
 No. 12.3. 
 
 Mr. Martinez to Mr. Blaine. 
 * 
 
 Legation of Chili, 
 
 Washington, October 24, 1881. 
 
 Sir: To-morrow, or the day after, I shall have the pleasure to call on 
 you in order to deliver two autograph letters from the President, of 
 Chili. 
 
 In the mean time I allow myself to inclose some articles published in 
 some of the newspapers, which will let you know the political course 
 which Minister Hurlbut has been pursuing in Peru. 
 
 The New York Herald published the letter written by Mr. Hurlbut to 
 Garcia i Garcia, Pierola's only minister, in which he decisively declares 
 that Peru will never yield any portion of her territory to Chili. 
 
 Other paper, cut out from the National Eepublican of this city, con- 
 tains a communication relating to the clandestine or fraudulent emission 
 of bank-notes emitted by Garcia Calderon, and which compelled General 
 Lynch to act in the manner that I spoke of in our last intercourse. 
 
 The third article, published in the New York Evening Post, is very sen- 
 sibly written, and in which Mr. Hurlbut's diplomatic conduct is very 
 accurately criticised. 
 
 I have also a copy in Spanish of the letter addressed by Minister 
 Hurlbut to General Lynch, after the occupation of the fiscal office of 
 Garcia Calderon. This letter is written more or less in the same sense 
 as that addressed to Garcia y Garcia. 
 
 With sentiments of, my highest consideration, I am your obedient 
 servant, 
 
 M. MARTINEZ. 
 
 [Extract from New York Herald. J 
 GENERAL HURLBtJT'S LETTER. 
 
 The following is a translation from the Spanish of the original letter written in 
 English by General Hurlbut, the United States minister here, to Don Anrelio Garcia y 
 Garcia, secretary-general of Don Nicolas de Pie>ola. The letter was intended to be 
 private, and, indeed, is only from one gentleman to another ; but the government here 
 found it so pleasing and so much to the point, that its publicity in Lima to-day is 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 165 
 
 owing to such partiality. When Mr. Hurlbut penned the communication he never 
 thought it would see the light in Lima. To say that it has caused a sensation would 
 be to underrate the truth, and the truth contained in it cannot be controverted : 
 
 Lima, September 12, 1881. 
 To Aurelio Garcia y Garcia, Esq., 
 
 Ayacucho : 
 
 Sir : I have the honor to own receipt of your letter dated August 28 last. In an- 
 swer allow me to observe that I hardly consider it proper to discuss the internal af- 
 fairs of Peru, if not replying to some formal and proper invitation to do so. But since 
 yours gives me an opportunity to express to you particularly my frank opinion, I shall 
 so proceed, and at the same time employing all the kindness possible. It is an accepted 
 fact that ours is a republic, governed by a constitution which is regarded as the su- 
 preme law. Mr. Pierola took possession of the reins of power and arrogated to him- 
 self an authority not recognized by that constitution ; these were acts in themselves 
 revolutionary and contrary to the true obedience required by law. The violent and 
 compulsory manner by which that revolution was effected stamped the act itself as 
 being a crime against liberty. The dictatorship was nothing but an autocratic and 
 despotic tyranny, not only in its plan, but in its name and actions. While it lasted 
 the constitutional government of Peru was overwhelmed by the will of ore man, 
 which replaced the laws and the regimen of the constitution. The people of Peru, in 
 the midst of the perplexities of a war of invasion, accepted this autocracy, believing 
 that victory was to be achieved under its banners. 
 
 Foreign nations acknowledged this power as a government de facto, but never gave 
 their approval to either its origin or the system followed. Instead of victory, the dic- 
 tatorship brought as a result terrible defeats, and the Dictator fled from the capital. 
 The people of Peru have not had since that moment an opportunity to freely express 
 ther will and sympathy. According to the constitution, the National Assembly — the 
 minister refers to that of Ayacucho — has no right to exist, and its resolutions or laws 
 have no more legal weight than the opinion^ expressed by a similar number of simple 
 citizens. Therefore the confirmation of the full and autocratic faculties given to the 
 ex-dictator, under his new title of President, confer no further validity in the eyes of 
 the law to his authority and pretensions. 
 
 I am obliged, for this reason, and to my regret, to say to you that the last decrees 
 issued in Ayacucho, regarding the persons and property of those citizens who decline 
 to recognize Mr. Pierola are inhuman and barbarous, and serve to place the govern- 
 ment employing such measures beyond the pale of the law. (Mr. Hurlbut refers to a 
 wholesale decree of confiscation and death issued by Pierola, but which has not yet 
 caused any great alarm among his opponents.) These violent decrees are, according 
 to my way of thinking, conclusive proofs that the government of which you form a 
 part is only supported by force, and not by the weight of public opinion. A strong 
 government, resting or based on public opinion and sovereign will, never appeals to 
 such cruel means of devastation. Such methods oblige civilized governments to re- 
 gard with reprobation the authorities employing them. I think I have said all that 
 I think is my duty respecting the government presided over by Mr. Pierola. The ad- 
 ministration of Mr. Garcia Calderon does not pretend to be perfectly regular in its 
 formation. It is provisional, that is, a transitory means of exercising governmental 
 functions until such time as the nation may act directly and without pressure. It is 
 supported by Congress, a national Congress recognized by the constitution, and it is 
 the embodiment of an effort toward the re-establishment in this country of a properly 
 organized and. constitutional government. You are mistaken in stating that this gov- 
 ernment of Mr. Garcia Calderon meets with Chilian sympathy; it desires peace, as 
 does the entire country, but without sacrificing national honor, nor will it cede terri- 
 tory to obtain that peace. The Chilian authorities are in communication with both 
 parties, and even you have written to Admiral Lynch. Chili desires and asks for the 
 territory of TarapaciJ, and will recognize the party ceding it. The cabinet of Garcia 
 Calderon will not consent to this cession; it remains to be seen if Mr. Pierola will do 
 so. Meanwhile, under the regimen inaugurated in Ayacucho and put in practice by 
 the prefects, Peruvians are to-day more deadly enemies to themselves than are the Chi- 
 lians, and the efforts of those friendly to Peru are paralyzed cm account of these inter- 
 nal dissensions. When the United States asks Chili why she cannot make peace, the 
 answer is that no one can be found in Peru to treat with. 
 
 Is it not better to put an end to this state of affairs, and for all true Peruvians to 
 
 unite under one chief, whose authority would be acknowledged and protected by all 
 
 parties and factions, in order to save the country from its imminent ruin, to establish 
 
 peace, and restore the proper and pacific supremacy of the constitution and the law? 
 
 I have the honor, &c, „_ 
 
 S. A. HURLBUT. 
 
166 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 124. 
 
 Mr. Martinez to Mr. Blaine. 
 
 f Translation.] 
 
 The envoy extraordinary and minister plenipotentiary of Chili has 
 the honor to present his respects to his excellency the Secretary of State, 
 and to inclose herewith, pursuant to the request his excellency was 
 pleased to make, a copy of the confidential dispatch of the minister for 
 foreign affairs of Chili, dated the 12th of September last. 
 
 Washington, October 27, 1881. 
 
 [Tnclosure. — Translation.] 
 Mr. Valderrama to Mr. Martinez. 
 
 Confidential.] Santiago, September 12, 1S61. 
 
 By dispatches which were in dne season addressed to you by Don Joaqnin Godoy 
 from Lima you will have been informed of the very uncircumspect conduct of the 
 minister of the United States recently accredited to the provisional government of 
 SeEor Garcia Calderon. 
 
 From the time of his arrival at Lima Mr. Hurlbnrt has omitted no signs of decided 
 partiality in favor of Peru, giving it to be understood tha,t the Government of the 
 United States would resist aDy arrangement which Chili might endeavor to effect 
 with that republic, and which might involve the cession of any part of its territory. 
 
 These ideas, which obtained a footing among the public men of Peru, acquired still 
 greater persistence after the address delivered by the American minister on the public 
 occasion of presenting his credentials to the provisional President. From that moment 
 Mr. Garcia Calderon, the members of his cabinet, and all persons who had any influ- 
 ence whatever upon the public opinion, deemed themselves encouraged by the words 
 and demonstrations of the representative of the United States, believing that they 
 saw therein the expression of the policy which the Cabinet at Washington proposed 
 to adopt. 
 
 Our plenipotentiary, Mr. Godoy, carefully observed the reaction which was brought 
 about in the Peruvian mind by the conduct of Mr. Hurlbut. To the negotiations 
 which have been initiated in a conciliatory and accommodating spirit before the arrival 
 of the American minister, there succeeded after his arrival a sudden and unlooked-for 
 change, the explanation of which can only be attributed to the influence, directly or 
 indirectly, produced by the attitude of the representative of the United States. In 
 this state of affairs our plenipotentiary deemed it proper to suspend the negotiations 
 already set on foot, and went to Chili to confer with my government. 
 
 Being desirous of inquiring if the conduct of Mr. Hurlbut responded to a political 
 plan of his government, I held a conference with Mr. Kilpatrick, who expressed him- 
 self dissatisfied with the manner iu which his colleague in Lima had begun his diplo- 
 matic mission. Mr. Kilpatrick did not hesitate to affirm that Mr. Hurlbut did not 
 faithfully represent the policy of abstention and neutrality of his government. In 
 order to relieve my government of all unfounded apprehension in this respect, he made 
 me acquainted with the dispatch which contained his own instructions, adding that 
 the instructions given his colleage at Lima, who was appointed at the same time, 
 could not but be in entire conformity with his own. 
 
 In those instructions, and in the part thereof which refers to the war between Chili, 
 Peru, and Bolivia, the Government of the United States shows itself iu entire con- 
 formity with its previous policy. It exhibits the intention of not interfering in the 
 solution of the war, except in the case of its good offices being solicited by all the bellig-. 
 erents. As respects the cession of a part of the Peruvian territory, the Government of 
 the United States expresses no surprise whatever that such should appear among the 
 conditions of peace. It observes, in passing, that it would be expedient if the territo- 
 rial cession should not comprise cities whose inhabitants are exclusively Peruvians, 
 and should not desire to choose the citizenship of our country. But thislast appears 
 rather a friendly reflection than as an exigency of American policy. 
 
 Meanwhile it is not possible to ignore the fact that the presence of Mr. Hurlbut in 
 Lima has been in a high degree prejudicial to the conclusion of arrangements for peace. 
 I have ground to believe that he continues to place at the service of the purposes of 
 
 • 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 167 
 
 the provisional government all the influence which can he given by the representative 
 character he holds. 
 
 As late as yesterday I learned, in a confidential way, but one entirely trustworthy, 
 that he haH sent a telegram to Mr. Kilpatrick, in Santiago, hogging him to forward it 
 to his colleague at Buenos Ayres. In this telegram Mr. Hurlbut seconded, doubt- 
 less, the plans of Mr. Garcia Calderon, and asks his colleague in Buenos Ayres that he 
 should represent to the Argentine cabinet the urgent necessity of accrediting, without 
 loss of time, a representative at Lima. There are reasons to think that the govern- 
 ment of Selior Garcia Calderon would welcome the presence of an Argentine minis- 
 ter in Peru, in order to seek therefrom mild or erfective aid against us. 
 
 These considerations, to which you will give all the importauce which they them- 
 selves possess, induce me to charge you to endeavor to see the Secretary of State, in 
 order to let him see, in a confidential and delicate way, the manner in which Mr. Hurl- 
 but is interpreting his policy in Peru. You will endeavor, also, with the greatest 
 discretion, to obtain from the American Government some act or declaration which will tend 
 to destroy the bad impression caused by the conduct of their representative in Lima, to avoid 
 in future that he shall continue to create difficulties foreign to his official character, 
 and contrary to the ever friendly and loyal policy of the "united States. 
 
 May God guard you. 
 
 MELQUIADES VALDERRAMA. 
 
 Seiior Don Marcial Martinlz, fc, <fc, cjc. 
 
 No. 125. 
 
 Mr. Martinez to Mr. Blaine. 
 
 Legacion de Chile, 
 Washington, October 28, 1881. 
 
 Sir : Yesterday when I read to you A dmiral Lynch's letter I made 
 you remark that this gentleman said that he was going to take posses- 
 sion of the offices belonging to Garcia Calderon without giving previous 
 knowledge of this act to anybody, in order that the important papers 
 might not be hidden. But I have just had another letter from Mr. 
 Lynch, telling me that he thought it more prudent to let Mr. Garcia 
 Calderon himself know about what he was going to do. He assures me 
 that that gentleman consulted Minister Hurlbut and some of the sena- 
 tors and deputies, and consequently addressed to Mr. Lynch a very 
 original and eccentric letter. Tbis same letter has been published in 
 the Lima papers, and now I have it in my possession. Lynch answered 
 it immediately. 
 
 Garcia Calderon and his friends spoke about the American fleet meet- 
 ing at Callao. In fact, Mr. Hurlbut called the admiral-in-chief, who 
 thought that there had been an insurrection in Lima, occasioned by the 
 withdrawal of the Chilian troops. He was greatly surprised at finding 
 everything in peace. The American admiral does perfect justice to the 
 Chilians. 
 
 Seeing General Lynch that Garcia Calderon persisted in giving himself 
 Presidential airs, although he had no offices nor territory to rule, thought 
 that this queer conduct arose from that fiscal emission of bank-notes 
 that I have mentioned to you ; so that the Chilian chief had to issue a 
 decree to put a stop to that affair. 
 
 I make these explanations, so that you might see that Mr. Lynch's 
 conduct has been perfectly correct. 
 I am, sir, yours, obedient, 
 
 M. MABTINEZ. 
 
168 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 No. 126. 
 
 Mr. Blaine to Mr. Kilpatrick. 
 
 No. 13.] Department of State, 
 
 Washington, November 22, 1SS1 . 
 
 Sir: Your dispatch, No. 8, conveying a copy of your reply to Senor 
 Balmaseda has been received. The communication to which it was a 
 reply should have accompanied it, in order that the Department could 
 properly judge of your answer. 
 
 Your letter is not approved by the Department. You had had ample 
 opportunity, and, as you have before stated, availed yourself of it, to 
 make known to the Government of Chili the scope of your instructions, 
 and to give it abundant assurance of the friendly feeling of your own 
 government. 
 
 If the conduct of Mr. Hiu-lbut in Peru had given sufficient ground of 
 complaint to the Chilian Government, that complaint should have been 
 made in Washington. Mr. Hurlbut's presentation speech to President 
 Calderon, his memorandum to Admiral Lynch, his letter to Garcia, and 
 telegraphic reports from Buenos Ayres, were not subjects upon which 
 you were called to pass judgment, nor upon which you should have been 
 interrogated by the Chilian Government. Nothing in your conduct or 
 language had excited its apprehensions, and no explanation was due or 
 could have been expected from you, of the language or conduct of your 
 colleague in Peru. I should have been glad if it had occurred to you 
 to call the attention of the secretary for foreign affairs to the impro- 
 priety of such a communication, and, in referring to the fact, that your 
 instructions, which you were authorized to communicate to him, gave 
 all the assurance which he could either desire or ask, of the friendly 
 disposition of the United States, I should have much preferred that 
 you had furnished him with a copy of those instructions instead of sub- 
 mitting a paraphrase which does not fully represent their spirit and 
 meaning. 
 
 Indeed, I find it difficult to understand how the Chilian Government 
 could have been under any misapprehension as to the disposition or 
 purpose of the United States, when the instructions both to yourself 
 and to Mr. Hurlbut had, in fact, been already frankly communicated; 
 the former, according to your dispatch No. 3, to the outgoing adminis- 
 tration, and the latter by this Department to Mr. Martinez, the repre- 
 sentative of the present government. It is still more difficult to under- 
 stand the abolition of the Calderon Government and the arrest of the 
 President himself, in the face of your assurance in your dispatch No. 3, 
 where you quote the following as having been addressed to you by Senor 
 Yalderrama, viz: 
 
 Tou are therefore authorized to say to your government that every effort would be 
 given by Chili to strengthen the government of President Calderon, giving to it the 
 most perfect freedom of action, considering the Chilian occupation. That no question 
 of territorial annexation would lie touched until a constitutional government could 
 be established in Peru, acknowledged and respected by the people, with full powers 
 to enter into diplomatic negotiations for peace. 
 
 And it would only have beeu natural if you had asked, for the informa- 
 tion of your government, if not for your own, for what reasons and by 
 what means the Calderon government had, as Senor Balmaseda in- 
 formed you, "come to an end. 1 ' 
 
 The President has learned with great regret of the arrest and removal 
 of President Calderon, but in the present state of his information will 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 169 
 
 not undertake to appreciate its significance. He hopes that he will, when 
 the facts are better known, be relieved from the painful impression that 
 it was intended as a rebuke to the friendly disposition of the United 
 States. The present condition of affairs, the difficulty of prompt com- 
 munication with the legations of Peru and Chili, and the unfortunate 
 notoriety of the differences between your colleague in Peru and yourself, 
 have, in the judgment of the President, rendered a special mission neces- 
 sary. You will inform the Chilian Government that a special envoy will 
 be immediately sent, and you will assure that government that he will 
 come in the spirit of impartial friendship, anxious to learn that recent 
 occurrences have not been intended to disturb the long-continued and 
 friendly relations existing between us ; and instructed by the President to* 
 lay before the Chilian Government frankly, but with a scrupulous consid- 
 eration for the rights and interests of that government, the views which 
 he holds upon the deplorable condition of affairs in South America, a 
 condition now fast assuming proportions which make its settlement a 
 matter of deep concern to all the republics of the continent. The 'Pres- 
 ident cannot but anticipate that this step, suggested by the most friendly 
 ' interest and justified by our existing relations, will be properly appre- 
 ciated by the Chilian Government; and he sincerely hopes thatno action 
 of that government will tend further to complicate existing difficulties 
 before the arrival of the minister. 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
 No. 127. 
 
 Mr. Blaine to Mr KilpatricJc. 
 
 [Telegram.] 
 
 Washington, November 25, 1881. 
 United States does not understand the abolition of Calderon Govern- 
 ment and his arrest. Special envoy leaves Washington for Chili imme- 
 diately. President hopes further action will await his arrival. 
 
 BLAINE, 
 
 Secretary. 
 
 No. 128. 
 
 Mr. Martinez to Mr. Blaine. 
 
 Legation of Chili, 
 Washington, November 26, 1881. 
 
 Sir: Yielding to the purpose of communicating to the Department 
 of State the actual course of events that occur on the Pacific coast, I 
 shall briefly refer to the authentic intelligences that I have had by the 
 last mail. 
 
 Several of the military chiefs in Arequipa, availing themselves of the* 
 absence of Pie"rola and Colonel Holar, declared themselves in favor of 
 the late provisional government of Garcia Calderon, giving the three 
 following reasons for so doing. 
 
170 AFFAIRS IN CHILI, PERU, AXD BOLIVIA. 
 
 1st. That Pterola's tyranny was absolutely intolerable. That the conn- 
 try could not carry on the war with. Chili, and that the United States 
 had offered their intervention, in order to obtain an agreement of peace 
 that did not comprise territorial cession. Certainly those patriots did 
 not explain how Peru could otherwise answer the claims of Chili. 
 
 Some time afterwards Rear Admiral Montero, who had been for some 
 months past inactive on the Cajamarca mountains, accepted the irregu- 
 lar and unconstitutional offer for the vice-presidency of the republic. 
 In his letter of acceptance, dated last October 23, he made declarations 
 which are absolutely necessary that your excellency should hear of, to 
 know on what illusions the Peruvian leaders found their politics, and 
 also to know the role the American legation is made to assume in all 
 those affairs. 
 
 The philosphy arising from the facts that I am going to state, is that, 
 while these illusions and hopes are being kept up. peace will be impos- 
 sible. 
 
 Mohtero says: 
 
 The noble officiousness of the Government of the United States, manifested in the 
 documents which have successively been published, even the definite declarations 
 comprised in the letter written at the request of the notables of Lima by the honor- 
 able minister plenipotentiary from Washington (letter which nobody has seen) which 
 has completely changed the situation, and consequently its proper resolution. 
 
 He adds, that he has officially communicated his resolution to the 
 representative of the United States, in a dispatch directed on the same 
 date. He finally states that " his noble wishes of increasing the elements 
 to defend his country are greatly gratified " ! and concludes, assuring 
 that "he redoubles his activity to multiply the necessary elements in 
 order to be always ready for its support, till he sees the final issue of the 
 diplomatic affairs with Chili''! 
 
 If, as it is said, Garcia Calderon has been imprisoned because he in- 
 sisted upon sneering the decree of the Chilian general within the limits 
 of the Chilian forces, it is probable that Montero will represent the pro- 
 visional government, and I beg your excellency to remark that this chief 
 assures he has forces, and that he is desirous to have more to continue 
 their armed resistance against Chili. 
 
 The protest of all these chiefs against a territorial cession is estab- 
 lished on the chimerical intervention of the United States, warranted 
 by Minister Hurlbut, to whom Montero has addressed himself as his 
 immediate superior. 
 
 Your excellency's deep penetration will judge in the same way that I 
 do, I allow so to express myself, this queer and anomalous situation. 
 All that is extraordinary and unexpected in the affairs of Peru will very 
 often, I have no doubt, call your excellency's attention, and will too 
 often explain that providence did not endow that country with any logic. 
 
 I have some reasons to believe that in some information sent from 
 Lima to the Department of State they insist on saying that the indem- 
 nification which Chili pretends to ask exceeds the limits of justice, and 
 that the authorities in Lima have acted very cruelly towards the Peru- 
 vians. 
 
 Both informations, if they are known to your excellency, are entirely 
 erroneous. 
 
 As to the indemnification, I will only say that those who think exag- 
 gerated the claims of Chili, entitled as it is by the perfect right of its 
 actual situation, are under a mistake, for they are moderate and equita- 
 ble, as it will probably be demonstrated as international courtesy when 
 the time comes to make them practicable. Those who think otherwise 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 171 
 
 do not, either out of dislike, or want of knowledge in the matter, being 
 for the rest no judges to give their opinions in businesses that do not con- 
 cern them. 
 
 As for the second information, the want of truth is but too plain. If 
 any good quality is to be precisely acknowledged in the Chilians, it is 
 that of not being sanguinary. It can be assured -that in the space of 
 eight years not more than three or four capital executions ever occur in 
 Chili. 
 
 When the Chilian army occupied Lima the general in chief invited the 
 Peruvian tribunals to continue in their functions, and they absolutely 
 refused. It was necessary to establish a military tribunal, ruled under 
 martial law, to maintain the public peace. 
 
 In a country greatly demoralized and given up to anarchy, like Peru, 
 it was necessary to give examples of rigor, and nevertheless there have 
 been but few condemned to death, and those for acts of unheard of 
 cruelty. 
 
 Meanwhile the society in Lima rests quietly under the auspices of 
 peace and order guaranteed by the Chilians. 
 
 I shall continue to communicate to your excellency my informations, 
 and, in doing so this time, I renew my sentiments of highest considera- 
 tion. 
 
 M. MAETINEZ. 
 
 No. 129. 
 
 Mr. Blaine to Mr. Kilpatrieh. 
 
 No. 16.] Department op State, 
 
 Washington, November 30, 1881. 
 
 Sir : You have already been made acquainted by my No. 13, of the 
 22d instant, with the determination of this government to send a special 
 mission to South America for the purpose of adjusting whatever ques- 
 tions growing out of the contest between Chili and Peru and Bolivia 
 may affect the relation, of the United States to the three belligerent 
 powers, or conduce to the restoration of good understanding among 
 them. 
 
 I have now to inform you that William Henry Trescot, esquire, of 
 South Carolina, has been cqinmissioned as special envoy, with the rank 
 of minister plenipotentiary, to the republics of Chili, Peru, and Bolivia, 
 and will forthwith set out upon his mission. 
 
 The commission which Mr. Trescot receives will not supersede the or- 
 dinary duties of yourself and your colleagues at Lima and La Paz; but 
 all communications and negotiations connected with the settlement of 
 the pending difficulties between Chili, Peru, and Bolivia, so far as this 
 government may deem it judicious to take action, will be transferred to 
 Mr. Trescot's charge. 
 
 Under the instructions which have been .niven to Mr. Trescot, he will 
 place himself in direct communication with the several governments to 
 which he is thus specially accredited. It is, however, expected that he 
 will learn from you and your colleagues the exact condition of existing 
 political relations, and receive such suggestions as your recent experi- 
 ence may enable you to submit for his consideration. The action he 
 may take, however, must be decided upon his own responsibility, and in. 
 the exercise of his independent authority. 
 
172 AFFAIES IN CHILI, PERU," AND BOLIVIA. 
 
 Mr. Trescot will be accompanied on this important mission by the 
 Third Assistant Secretary of State. As it may be necessary to consult 
 the representatives of the United States in Chili, Peru, and Bolivia at 
 the same time, or to conduct a simultaneous negotiation with those gov- 
 ernments, Mr. Trescot is empowered by the President of the United 
 States to authorize Mr. Walker Blaine to represent the United States at 
 any point where this necessity may occur. 
 I am, sir, your obedient servant, 
 
 JAMES G. BLAINE. 
 
 JSTo. 130. 
 
 Mr. Blaine to Mr. Trescot. 
 
 No. l.j Department of State, 
 
 Washington, November 30, 1881. 
 
 Sir: You will receive herewith your commission as special envoy with 
 the rank of minister plenipotentiary to the republics of Chili, Peru, and 
 Bolivia. This commission will not supersede the ordinary duties of the 
 ministers plenipotentiary and resident now accredited to those gov- 
 «rnments. But, as they will be duly informed, all communications and 
 negotiations connected with the settlement of the pending difficulties 
 between Chili, Peru, and Bolivia, so far as this government may deem it 
 judicious to take action, wdl be transferred to your charge. Under the 
 instructions which will be furnished, you will place yourself in direct 
 communication with those governments ; but it is expected, as I am 
 sure you would desire, that you should learn from the United States 
 ministers now there the exact condition of existing political relations, 
 and that you will give due regard to such suggestions as their recent 
 experience enables them to submit to your consideration. Whatever 
 action, however, you may take, must be decided upon your own responsi- 
 bility, and will be in the exercise of your independent authority. 
 
 After full consideration of your suggestion that it may be necessary 
 to conduct the same negotiation at more than one point, the President 
 has directed the Third Assistant Secretary of State to accompany you. 
 Should the occasion which you anticipate arise, you are authorized to 
 give Mr. Blaine the necessary instructions; his official rank in the de- 
 partment, and his detail for special service on this mission, being suffi- 
 cient to authorize him, without a formal commission, to execute your in- 
 structions. 
 
 Your expenses, and those of the Third Assistant Secretary who ac- 
 companies you going and returning, and such as are incidental to your 
 residence in South America and the mission upon which you are sent, 
 will be allowed by this Department, in the confidence that with due 
 regard to the proprieties of your position and the duties with which you 
 are charged, these expenses will be reasonably and carefully regulated. 
 
 You will receive herewith an advance of two thousand dollars ($2,000), 
 which will be charged to your expense account. 
 
 In the final settlement of your account for expenses, you will be re- 
 quired to furnish this Department with a certificate that the amounts 
 charged have been actually expended for that purpose. 
 
 You are authorized to expend for clerical services, while engaged 
 upon the special mission, a sum not to exceed fifteen hundred dollars 
 ,($1,500), for which you will return the proper vouchers. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 173 
 
 Tour compensation for the special mission is hereby fixed at ten 
 thousand dollars ($10,000), upon which an allowance cot to exceed 
 $1,000 will be made to you forthwith, to be charged to your compensation 
 account. 
 
 You are also authorized to draw upon the Secretary of State from 
 time to time, against your compensation allowance, in sums not to exceed 
 one thousand dollars monthly, commencing from January 1, 1882, pro- 
 vided the total amount of such drafts shall not exceed five thousand 
 dollars, leaving the remainder to be adjusted at the close of your mission. 
 I am, &c, 
 
 JAMBS G. BLAINE. 
 
 No. 131. 
 Mr. Blaine to Mr. Walker Blaine. 
 
 Department op State, 
 
 Washington, November 30, 1881. 
 
 Sir : You are aware that the President has deemed it proper to send 
 a special mission to Chili, Peru, and Bolivia, and that the honorable 
 William Henry Trescot, of South Carolina, has been appointed special 
 envoy. 
 
 As it is probable that the contemplated negotiations will have to be 
 conducted at the same time at different points, you will, by direction 
 of the President of the United States, be attached to this mission, on 
 special service, with your official rank as Third Assistant Secretary of 
 State. Mr. Trescot is authorized to empower you to represent the gov- 
 ernment in any of the countries named, should the necessity occur, under 
 such instructions as he shall give you, and he is directed, in case of his 
 own absence, to place the mission under your charge during such ab- 
 sence. > 
 
 While with Mr. Trescot, you will render such assistance in the dis- 
 charge of his duties as he may require. 
 
 As you are already a salaried officer of the United States, no compen- 
 sation can be given you beyond the repayment of your proper and 
 necessary expenses, for which you will render an account, with such 
 vouchers as may be obtainable, such account to be audited by the Sec- 
 retary of State. 
 
 You will, iu the course of your special service, communicate freely 
 with the Department, by telegraph and in cipher, when practicable and 
 requisite ; and you will from time to time receive such instructions as 
 may be necessary. 
 
 The Secretary of the Navy has directed the commanders of our national 
 vessels on the South American Pacific coast to assist Mr. Trescot's move- 
 ments and yours in all possible ways. To this end, a vessel of war will 
 await your arrival at Panama. 
 
 Trusting that the success of this mission will meet the confident ex- 
 pectations of the President and of this Department, 
 I am, sir, &c, 
 
 JAMES G. BLAINE. 
 
174 AFFAIRS EST CHILI, PEKU, AND BOLIVIA. 
 
 No. 132. 
 Mr. Blaine to Mr. Trescot. 
 
 INo. 2.] Department of State, 
 
 Washington, December 1, 1881. 
 
 Sir : While the circumstances under which the President has deemed 
 it proper to charge you with a special mission to the republics of Chili, 
 Peru, and Bolivia, render it necessary that very much must be confided 
 to your own discretion, it is desirable that you should be placed in full 
 possession of his views as to the general line of conduct which you will 
 be expected to pursue. 
 
 For this purpose it is not necessary at present to go further back in 
 the history of the unfortunate relations between Chili on the one hand 
 and Peru and Bolivia on the other, than the time when the defeat of 
 General Pierola, his abandonment of the capital and the coast and 
 their occupation by the Chilian army seemed to have put an end to all 
 responsible native government in Peru. Lima having been surrendered 
 on the 19th January, 1881, Pierola driven across the mountains, the 
 Chilian military occupation consolidated, and the Chilian Government 
 refusing to recognize Pierola as representing the Government of Peru, 
 it became absolutely necessary that some government should be estab- 
 lished, if Peru was not to remain simply a military district of Chili. 
 
 On February 25, 1881, Mr. Christiancy, the United States minister at 
 Lima, wrote this Department as follows : 
 
 A movement has, therefore, been initiated among some of the leading citizens of 
 Lima and Callao, and encouraged by the Chilian authorities, to establish a new govern- 
 ment in opposition to that of Pierola [who is still at Tacna or Yareja]. 
 
 From this date to April 13, 1881, Mr. Christiancy kept the Depart- 
 ment informed of the probabilities of the establishment of the Calderon 
 government, so called from the name of the eminent Peruvian states- 
 man who had been chosen as President. On that date he wrote: 
 
 In my own private opinion, however, if the provisional government had come up 
 without any appearance of support from the Chilian authorities, it would have had 
 many elements of popularity and would probably have succeeded in obtaining the 
 acquiescence of the people. This new government realizes the importance of an early 
 peace with Chili, the necessity of which must be recognized by every thoughtful man ; 
 while that of Pie'rola professes to intend to carry on the war; but it has no means for 
 the purpose at present, and my own opinion is that any effort to do so will end in still 
 greater calamities to Peru. 
 
 On May 23, the same minister, in a postscript to his dispatch of the 
 17th, says: 
 
 Since writing the above it has become still more probable that the threat of " indefi- 
 nite occupation" was intended only to drive the Peruvians into the support of the 
 provisional government, as two days ago they allowed the government to send seventy- 
 five soldiers to Tacna, Oroyo, &c, to control that part of the country, so as to allow 
 the members of Congress to come to Lima ; and it now begins to look as if Calderon 
 might secure a quorum ( two-thirds) of the Congress. If he does succeed, it will be some 
 evidence that Peru acquiesces in that government. And if he gets the two-thirds of 
 the members, I think I shall recognize the provisional government, or that of the 
 Congress and the President they may elect, unless in the mean time I shall receive 
 other instructions. 
 
 On the 9th of May, 1881, instructions had been sent to him from the 
 Department, which crossed this dispatch, in which he was told: 
 
 If the Calderon government is supported by the character and intelligence of Peru, 
 and is really endeavoring to restore constitutional government with a view both to 
 order "within and negotiation with Chili for peace, you may recognize it as the exist- 
 ing provisional government, and render what aid you can by advice and good offices 
 to that end. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 175 
 
 Acting under these instructions, although with some expressed doubt 
 as to the probable permanence of its existence, Mr. Christiancy, on the 
 26th of June, 1881, formally recognized the Calderon government. It 
 is clear that this recognition was not an unfriendly intervention as far 
 as the wishes and interests of Chili were concerned, for under date of 
 May 7, 1881, two days before these instructions of the 9th were sent to 
 Mr. Christiancy, Mr. Osborn, the United States minister to Chili, wrote 
 from Santiago as follows : 
 
 In my "201, of date April 5, regarding the war in this section, I mentioned the fact 
 that the minister of war, Mr. Vergara, who had been with the army at Lima, had 
 been sent for, and was then on his way to Chili. Since his arrival the government 
 has labored to reach a conclusion touching the course to be pursued with Peru, and 
 to that end numerous and extended discussions among the ministers and prominent 
 citizens of the republic, who had been invited to participate, have taken place. 
 Three plans or propositions were discussed : First, that spoken of by me in my No. 201, 
 involving the withdrawal of the army to Arica; second, the occupation of the entire 
 Peruvian coast by the Chilian forces, and its government by Chilian authorities ; and 
 third, the strengthening of the government of Calderon, and the negotiation of a 
 peace therewith. The propriety of entering into negotiations with Pilrola was not 
 even dignified with a consideration. After much labor the government reached the 
 ■conclusion that the last proposition afforded the easiest way out of their complica- 
 tions, and it has been determined to send to Peru, in charge of the negotiations, Mr. 
 •Godoy. * * * The ministry has freely counseled with me regarding the difficul- 
 ties of the situation, and in view of their previous determination to have nothing to 
 •do with Pierola, I cannot but applaud the result of their deliberations. To vacate 
 the country now would be to turn it over to anarchy, and tp attempt to occupy the 
 entire coast would, in time, involve both countries in ruin. The most feasible way 
 to peace is, in my opinion, the one resolved upon. In fact it is the only one which 
 •offers any reasonable hope of a solution of the difficulties during the present genera- 
 tion. 
 
 In giving the support of recognition to the Calderon government, 
 therefore, so far was this government from doing what could be consid- 
 ered an unfriendly act to Chili, that it was, in fact, giving its aid to the 
 very policy which Chili avowed, and which, in the opinion of competent 
 judges, was the only method of reasonable solution. 
 
 And this conclusion of the government was strengthened and con- 
 firmed by the information which was transmitted to the Department by 
 General Kilpatrick, the United States Minister to Chili. General Kil- 
 patrick was appointed after the recognition of the Calderon government, 
 and was furnished with instructions to which I have already referred. 
 
 In his dispatch No. 3, under date August 15, 1881, he says : 
 
 I have the honor to report that, so far as the assurance of public men can be relied 
 upon, your instructions have been complied with ; your ideas of final peace accepted, 
 not only by the present administration at Santiago, but still better of Seiior Santa 
 Maria, the President elect, whose administration will have begun when you receive- 
 this note. 
 
 General Kilpatrick then proceeds to give a detailed account of a 
 lengthy interview with the leading and most influential members of the 
 Chilian Government, in which he quotes the following as the final as- 
 surances given to him by the Chilian secretary of state : 
 
 You may therefore say to your government that every effort would be given by Chili 
 to strengthen the government of President Calderon, giving to it the most perfect 
 freedom of action, considering the Chilian occupation. That no question of Chilian 
 annexation would be touched until a constitutional governmeut could be established 
 in Peru, acknowledged and respected by the people, with full powers to enter into 
 diplomatic negotiation for peace. That no territory would be exacted unless Chili 
 failed to secure ample and just indemnification in other and satisfactory ways, as also 
 ample security for the future ; and that in no case would Chili exact territory save 
 where Chilian enterprise and Chilian capital had developed the desert and where to- 
 <day nine-tenths of the people were Chilian. 
 
176 AFFAIKS IN CHILI, PEKU, AND BOLIVIA. 
 
 But after this recognition, made in entire good faith to both parties,, 
 three things followed : 
 
 1. The presence of a United States minister at Lima accredited to the 
 Calderon government, and the reception in Washington of a minister 
 from that government, gave it, unquestionably, increased strength and 
 confidence. 
 
 2. The adherents of Pierola, realizing the necessity of peace and the 
 existence of a stable government to negotiate it, gradually abandoned 
 the forlorn hope of continued resistance, and gave their adhesion to the 
 Oalderon government. 
 
 3. The Congress which assembled within the neutral zone set apart 
 for that purpose by the Chilian authorities, and which was further al- 
 lowed by the Chilian government to provide for the military impositions 
 by the use of the national credit, and thas recognized as the represen- 
 tative of the Peruvian people, authorized President Calderon to nego- 
 tiate a peace, but upon the condition that no territory should be ceded. 
 
 As soon as these facts indicated the possibility of a real and inde- 
 pendent vitality in the constitution of the Calderon government the 
 Chilian military authorities issued an order forbidding any exercise of 
 its functions within the territory occupied by the Chilian army — that 
 is, within the entire territory west of the mountains, including the capi- 
 tal and ports of Peru. 
 
 Unable to understand this sudden and, giving due regard to the pro- 
 fessions of Chili, this unaccountable change of policy, this government 
 instructed its minister at Lima to continue to recognize the Calderon 
 government until more complete information would enable it to send 
 further instructions. If our present information is correct, immediately 
 upon the receipt of this communication they arrested President Calde- 
 ron, and thus, as far as was in their power, extinguished his govern- 
 ment. The President does not now insist upon the inference which 
 this action would warrant. He hopes that there is some explanation 
 which will relieve him from the painful impression that it was taken in 
 resentful reply to the continued recognition of the Calderon govern- 
 ment by the United States. If, unfortunately, he should be mistaken, 
 and such a motive be avowed, your duty will be a brief one. Tou will 
 say to the Chilian Government that the President considers such a pro- 
 ceeding as an intentional and unwarranted offense, and that you will 
 communicate such an avowal to the Government of the United States, 
 with the assurance that it will be regarded by the government as an 
 act of such unfriendly import as to require the immediate suspension of 
 all diplomatic intercourse. Tou will inform me immediately of the hap- 
 pening of such a contingency and instructions will be sent you. 
 
 But I do not anticipate such an occurrence. From the information 
 before the Department, of which you are possessed, it is more probable 
 that this course will be explained by an allegation that the conduct and 
 language of the United States minister in Peru had encouraged the Cal- 
 deron government to such resistance of the wishes of Chili as to render 
 the negotiation of a satisfactory treaty of peace with the Calderon gov- 
 ernment impossible. Any explanation which relieves this action of the 
 Chilian Government of the character of an intentional offense will be re- 
 ceived by you to that extent, provided it does not require as a condition 
 precedent the disavowal of Mr. Hurlbut. Whatever may be my opinion 
 as to the discretion of all that may have been said or done by Mr. Hurl- 
 but, it is impossible for me to recognize the right of the Chilian Govern- 
 ment to take such action without submitting to the consideration of 
 this government any cause of complaint which it was prepared to allege 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 177 
 
 against the proceedings of the representative of the United States. The 
 Chilian Government was in possession of the instructions sent to that 
 minister, as well as those to his colleague at Santiago. There was no pre- 
 tense that the conduct of General Kilpatrick was anything but friendly. 
 Chili was represented here by a minister who enjoyed the confidence of 
 his government, and nothing can justify the assumption that the United 
 States was acting a double part in its relations to the two countries. If 
 the conduct of the United States minister seemed inconsistent with what 
 Chili had every reason to know was the friendly intention of the United 
 States, a courteous representation through the Chilian minister here 
 would have enabled this government promptly to correct or confirm him. 
 You are not therefore authorized to make to the Chilian Government 
 any explanation of the conduct of General Hurlbut, if that government, 
 not having afforded us the opportunity of accepting or disavowing his 
 conduct, insists upon making its interpretation of his proceedings the 
 justification of its recent action. 
 
 It is hoped, however, that you will be able, by communication, at once 
 firm and temperate, to avoid these embarrassments. If you should for- 
 tunately reach the ground where frank, mutual, explanation can be made 
 without the sacrifice of that respect which every government owes to 
 itself, you will then be at liberty, conforming your explanation to the 
 recent instruction to Mr. Hurlbut, with a copy of which you are furnished, 
 to show to the Government of Chili how much both his words and acts 
 have been misconceived. 
 
 It is difficult for me to say now how far an explanation would be sat- 
 isfactory to the President which was not accompanied by the restoration 
 or recognition of the Calderon government. The objects which he has at 
 heart are, first, to prevent the misery, confusion, and bloodshed which 
 the present relations between Chili and Peru seem only too certain to 
 renew ; and, second, to take care that in any friendly attempt to reach this 
 desirable end the Government of the United States is treated with the 
 respectful consideration to which its disinterested purpose, its legitimate 
 influence, and its established position entitle it. The President feels in 
 this matter neither irritation nor resentment. He regrets that Chili 
 seems to have misconceived both the spirit and intention of the Govern- 
 ment of the; United States, and thinks her conduct has been inconsider- 
 ate. He will gladly learn that a calmer and wiser judgment directs her 
 counsels, and asks in no exacting spirit the correction of what were per- 
 haps natural misunderstandings. So he would be satisfied with the mani- 
 festation of a sincere purpose on the part of Chili to aid Peru, either in 
 restoring the present provisional government or establishing in its place 
 one which will be allowed the proper freedom of action necessary to re- 
 store internal order and to conduct a real negotiation to some substan- 
 tial result. 
 
 Should the Chilian Government, while disclaiming any intention of 
 offense, maintain its right to settle its difficulties with Peru without the 
 friendly intervention of other powers, and refuse to allow the formation 
 of any government in Peru which does not pledge its consent to the 
 cession of Peruvian territory, it will be your duty, in language as strong 
 as is consistent with the respect due an independent power, to express 
 the disappointment and dissatisfaction felt by the United States at such 
 a deplorable policy. 
 
 You will say that this government recognizes without reserve the right 
 
 of Chili to adequate indemnity for the cost of the war, and a sufficient 
 
 guarantee that it will not again be subjected to hostile demonstration 
 
 from Peru ; and further, that if Peru is unable or unwilling to furnish 
 
 S. Ex. 79 12 
 
178 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 such indemnity, the right of conquest has put it in the power of Chili 
 to supply them, and the reasouable exercise of that right, however much 
 its necessity may be regretted, is not ground of legitimate complaint on 
 the part of other powers. But this government feels that the exercise 
 of the right of absolute conquest is dangerous to the best interests of 
 all the republics of this continent; that from it are certain to spring 
 other wars and pobtical disturbances ; and that it imposes, even upon the 
 conqueror, burdens which are scarcely compensated by the apparent in- 
 crease of strength which it gives. This government also holds that be- 
 tween two independent nations, hostilities do not, from the mere exist- 
 ence of war, confer the right of conquest until the failure to furnish the 
 indemnity and guarantee which can be rightfully demanded. 
 
 The United States maintains, therefore, that Peru has the right to de- 
 mand that an opportunity should be allowed her to find such indemnity 
 arid guarantee. Kor can this government admit that a cession of terri- 
 tory can be properly exacted far exceeding in value the amplest estimate 
 of a reasonable indemnity. 
 
 Already, by force of its occupation, the Chilian Government has col- 
 lected great sums from Peru ; and it has been openly and officially 
 asserted in the Chilian Congress that these military impositions have 
 furnished a surplus beyond the cost of maintaining its armies in that 
 occupation. The annexation of Tarapa-ca, which, under proper adminis- 
 tration, would produce annually a sum sufficient to pay a large in- 
 demnity, seems to us to be not consistent with the execution of justice. 
 
 The practical prohibition of the formation of a stable government iu 
 Peru, and the absolute appropriation of its most valuable territory, is 
 simply the extinction of a State which has formed part of the system 
 of republics on this continent, houorable in the traditions and illustra- 
 tions of its past history, and rich in the resources for future progress. 
 The United States, with which Peru has for many years maintained the 
 most cordial relations, has the right to feel and express a deep interest 
 iu its distressed condition; and while with equal friendliness to Chili, 
 we will not interpose to deprive her of the fair advantages of military 
 success, nor put any obstacle to the attainment of future security, we 
 cannot regard with unconcern the destruction of Peruvian nationality. 
 If our good offices are rejected, and this policy of the absorption of an 
 independent state be persisted in, this government will consider itself 
 discharged from any further obligation to be influenced in its action by 
 the position which Chili has assumed, and will hold itself free to appeal 
 to the other republics of this continent to join it iu an effort to avert 
 consequences which cannot be confined to Chili and Peru, but which 
 threaten with extiemest danger the political institutions, the peaceful 
 progress, and the liberal civilization of all America. 
 
 If, however, none of these embarrassing obstacles supervene, and 
 Chili receives in a friendly spirit the representations of the United 
 States, it will be your purpose — 
 
 First. To concerD such measures as will enable Peru to establish a 
 regular government, and initiate negotiation. 
 
 Second. To induce Chili to consent to such negotiation without cession ■ 
 of territory as a condition precedent. 
 
 Third. To impress upon Chili that in such negotiation she ought to 
 allow Peru a fair opportunity to provide for a reasonable indemnity; 
 and, in this connection, to let it be understood that the United States 
 would consider the imposition of an extravagant indemnity, so as to 
 make the cession of territory necessary in satisfaction, as more than is 
 justified by the actual cost of the war, and as a solution threatening 
 renewed difficulty between the two countries. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 179 
 
 As it is probable that some time will elapse before the completion of 
 all the arrangements necessary for a final negotiation, this government 
 would suggest a temporary convention, which, recognizing the spirit of 
 our present friendly representation, would bring Peru and Chili into 
 amicable conference and provide for a meeting of plenipotentiaries to 
 negotiate a permanent treaty of peace. 
 
 If negotiation be assured, the ability of Peru to furnish the indemnity 
 will be a matter of direct interest. Upon this subject we have no in- 
 formation upon which definite instructions can now be based. While 
 you will carefully abstain from any interposition in this connection, you 
 will examine and report to this Department promptly any plans which 
 may be suggested. 
 
 You will not indicate any wish that the Government of the United 
 States should act as umpire in the adjudications between the contend- 
 ing powers. Should an invitation to that effect be extended, you will 
 communicate by telegraph for instructions. The single and simple desire 
 of this government is to see a just and honorable peace at the earliest 
 day practicable, and if any other American government can more effect- 
 ively aid in producing this auspicious result, the United States will cor- 
 dially sustain it and lend such co-operation as the circumstances may 
 demand. 
 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
 No. 133. 
 
 Mr. KilpatricTc to Mr. Blaine. 
 
 No. 9.] Legation of the United States, 
 
 Santiago, Chili, December 2, 1881. (Eeceived January 4, 1882.) 
 
 Sir : Had I been able, I would, at the time the Government of Chili 
 determined to arrest and suspend the functions of the government of 
 Calderon, have given you the reasons as they are placed in my posses- 
 sion by the Secretary of State, and everything done to preserve good 
 faith as to promises made me here on the part of the government. But 
 for four months I have been very ill; for the last two months at the point 
 of death, unable even to write my own name. I am now just able to sit 
 up, and for your information and on behalf of the honor and good faith 
 of Chili I make this brief statement. 
 
 Chili guaranteed through me to demand no annexation of territory 
 from Peru as an absolute condition of peace. This was done at your 
 request. She agreed to demand no territory if security for future peace 
 and safe and satisfactory indemnification could be secured otherwise, 
 and in no case to annex territory save where a large majority of the 
 actual residents were citizens of Chili and foreigners. She agreed to 
 build up and strengthen the government of Calderon if possible, and if 
 possible to make it respectable, constitutional, stable, a government 
 with which she could treat for peace. These pledges were made in 
 good faith and would have been fulfilled; but our new minister at Lima 
 arrived. Whether true or false, he has the reputation of having im- 
 pressed the Government of Calderon and the people of Peru with the 
 idea that the Government of the United States would not permit annex- 
 ation of Peruvian territory to Chili under any circumstances. This was 
 published and talked of. He, himself, emphasized this in his letter to the 
 
180 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 government of Pierola. He sent messages to the Argentine Eepublic 
 urging them to send a minister at once to check the power of Chili. 
 The whole conduct of Calderon, befriended and sustained by Chili, 
 changed ; and he is openly accused now by the Government of Chili of 
 having without authority flooded the country with his own paper cur- 
 rency, of having gathered and collected arms, and of having organized 
 secret forces, and finally of having placed himself in communication with 
 the belligerent forces of Pierola, Montero, and Sola, and the Government 
 of Bolivia, still in open arms against Chili, now threatening her outposts, 
 and cutting, from time to time, her lines of communication. And so far 
 had he succeeded that the department of Areqnipa had proclaimed for 
 him, and a promise made on the part of our own minister at Lima, to 
 said belligerents, that the Government of the United States would 
 forcibly resist the disintegration of Peru and had determined to main- 
 tain and sustain the government of President Calderon. 
 
 These are the facts as given to me by the administration here to 
 justify them in the course they have pursued. The arrival of your mes- 
 senger with special and unknown instructions is beginning to create 
 an excitement here and a resentment against the United States that 
 will not be easily calmed. Chili has looked upon our country as its 
 greatest friend; has been willing to make many sacrifices to comply 
 with your requests; but now, in view of the course pursued at Lima, 
 the threatening claims of some great Peruvian company professing to 
 be backed by the Department at Washington, of which I send you a 
 copy marked A, is creating an alarm and excitement here such as has 
 never existed in Chili. I should like to give you details, but I am 
 unable from extreme weakness to dictate another sentence. 
 Tours truly, 
 
 J. KILPATEICK. 
 
 rinclosure marked A in Ko. 9.1 
 
 Mr. Shipherd to Mr. Kilpatrick. 
 
 The Peruvian Company, 
 10 Spruce Street, Nexo York, October 19, 1881. 
 
 Sir: I have the honor to inclose herewith official printed copies of communications 
 on behalf of this company to the minister of Peru and Chili at Washington. 
 
 Duplicates of these inclosures were filed in the Department of State on the llth in- 
 stant, and the originals were personally delivered by * * * our counsel at Wash- 
 ington, on the 13th. 
 
 I place the copies in your hands, of course, without comment, and only for your 
 early information. I have reason to suppose that you will receive instructions con- 
 cerning the interests involved at an early day. 
 
 It may be proper to add that this company is now fully organized, with a capital of 
 $250,000,000; that it includes the best legal, diplomatic, and money Tesources of the 
 United States ; that the title upon which it relies is approved unanimously by a large 
 staff of eminent counsel, and that it has unqualified assurance of ample governmental 
 hacking. It has called for the property, and you may safely rely that it has at com- 
 mand every means of enforcing that call. I send you a recent copy of the Times, 
 which does but reflect the average public sentiment here. All the papers (preliminary) 
 in the case I sent to your address in this city before you sailed. 
 
 We are prepared to treat Chili fairly, even liberally, bnt only on condition that she 
 recognizes, our superior rights. If she raises an issue she will simply get nothing. 
 Right must rule. 
 
 Tour obedient servant, 
 
 JACOB R. SHIPHERD. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. ' 181 
 
 No. 134. 
 
 Mr. Blaine to Mr. Trescot. 
 
 No. 3.J Department op State, 
 
 Washington, December 2, 1881. 
 
 Sir : It is not impossible that before the close of the special mission, 
 instructions for which have been already furnished you, it may be 
 deemed advisable that at its close you should return to the United States 
 by way of the Argentine Confederation and Brazil. 
 
 Positive instructions may be sent you to this effect before your mis- 
 sion closes, but atpresent my purpose is to advise you of such possible 
 contingency, and to add that if at the close of the special mission you 
 should decide that a return home by the way of Buenos Ayres and Rio 
 de Janeiro was advisable, you are hereby authorized without waiting 
 for such instructions to return home by that way. 
 
 Should you do so, you will in your communications with the repre- 
 sentatives of the Governments of Brazil and the Argentine Confedera- 
 tion impress upon them the advantages which would result from a full 
 and frank conference between all the republics of North and South 
 America. By the time you can reach these points the opinions of this 
 government on this subject will have been formally submitted to them, 
 and you will have the opportunity to enforce these views and to direct 
 their attention to the importance of the proposed congress. 
 
 If you will telegraph the probable time of your arrival at Buenos 
 Ayres, a vessel of the United States will meet you at that place. 
 I am, sir, &c, 
 
 JAMES G. BLAINE. 
 
 No. 135. 
 
 Mr. Martinez to Mr. Blaine. 
 
 Legation of Chili, 
 Washington, December 5, 1881. (Received Dec. 5.) 
 
 Sir : I intend to go on with the agreeable task of letting yon know 
 which are the last authentic news from the Pacific coast, as they are 
 generally made public in a way calculated to mislead. 
 
 Your excellency has already been made acquainted with the decree 
 issued by the Chilian general, Patricio Lynch, prohibiting Dr. Garcia 
 Calderon from exercising any act of jurisdiction within the territory oc- 
 cupied by the Chilian forces, but by no means out of that territory. 
 
 Indeed there was a political and military misdeed in the fact of the 
 commander of an invading army allowing the so-called provisional 
 President, whose incapacity and unwillingness to make the peace were 
 well known, to continue as a government in face of his foe. Yon will 
 please to allow me to state again to your excellency that Chili never rec- 
 ognized Garcia Calderon as the provisional President, and that had she 
 made such a recognition it would have been outlawed when that gen- 
 tleman made up his mind to reject the terms of peace my government 
 proposed to him. 
 
 In spite of the above-named decree, Garcia Calderon went on assum- 
 ing to himself the functions of President of the government, but being 
 his attitude apparently obnoxious, the Chilian general did not deem it 
 
182 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 proper to take any measure against him, and I warn your excellency 
 that the ground for the General Lynch to act as I have just stated was 
 the recognition of Garcia Calderon as provisional President, made by 
 the United States purposely to lead way to an arrangement of peace. 
 
 But it happened Mr. Galvez to address in those days a circular to the 
 diplomatic and consular corps in paper bearing the official seal, dated 
 in Lima, and issued in such a condition as every public document is in- 
 tended to have, and stating that it was expected to make peace with no 
 dissatisfaction for the national dignity; that is to say, with no territorial 
 compensation. Mr. Galvez was Mr. Garcia Calderon's secretary of state. 
 
 Being this an open and daring violation of the Chilian commander's 
 decree, he was compelled to take such a measure as to put in prison the 
 so-called provisional President and his secretary of state. 
 
 The measure was executed most quietly. Mr. Garcia Galderon inti- 
 mates he wanted to hold a private interview with General Lynch, so he 
 walked along about fourteen blocks and not the slightest sign of resist- 
 ance was noticeable in the crowd. 
 
 The prisoners were taken, surrounded with the best treatment, to the 
 iron clad Almiranti Cockrane, and in Pisco they were transferred to the 
 frigate Chili. 
 
 Meanwhile the Peruvian general, Montero, being out of the reach of 
 the Chilian forces, has accepted the vice-presidency of the republic, and 
 notwithstanding being the offering of the vice-presidency and its ac- 
 ceptation irregular acts, the Chilians, keeping faith to their resolution 
 of not interfering with the internal politics in Peru, had opposed no re- 
 sistance whatever to Montero. 
 
 A Peruvian committee started from Lima to meet Montero, and con- 
 trive he should go as far as Chimbote, so that he may try to capitulate 
 some terms of peace which my government might agree to. 
 
 This incident shows the possibility of the conflict to be arranged as 
 far as the Peruvians will not content themselves with the deceitful ex- 
 pectations of a foreign interference. 
 
 The ex-dictator, Pierola remains in Ayacucho with an army 1,700 
 strong. His general secretary, Garcia i Garcia, issued under the date 
 of the 23d October a circular addressed to the chiefs and governors in 
 the republic, bitterly criticising Mr. Hurlbut's letter, which your ex- 
 cellency has already been acquainted with. 
 
 The Chieftaiu Caceres is, with an army stronger than that of Pierola, 
 not very far from Lima, and keeps a reserved attitude, he does not de- 
 clare himself in anybody's favor, but apparently he is obeying his former 
 chief, Pierola. 
 
 Such is without any comment the condition of affairs in Peru. 
 
 It would be not unsuitable for your excellency to become acquainted 
 with a somewhat painful incident. Garcia Caideron intended to send 
 to Arequipa one of his brothers, as a commissioner, and asked permis- 
 sion for him to be allowed to land at Mollendo which is now a blockaded 
 port. He was not permitted to do it. Then the said commissioner got 
 by stealth a passport from the Chilian colonel, Valdivieso, telling him 
 he purposed to go from Lima to a near place. Having the passport been 
 given by Valdivieso, Garcia Calderon's brother, wrote down on it that 
 it was good to go to Mollendo. This was not enough for his purposes, 
 being it necessary to get permission from the general headquarters to 
 reach a blockaded port, he did not ask for it ; but the United States 
 man-of-war Alaska was about to sail off to Mollendo, and everybody 
 asserts on her board went the commissioner of Garcia Calderon, taking 
 with him correspondence and money to the rebels in Arequipa.' Though 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 183 
 
 I cannot state the fact officially, it appears to me to bear the character- 
 istics of the truth. 
 
 As for Bolivia is concerned, all that is now known is that General 
 Campero has driven as far as four or five days' march from Tarapaca, 
 having under his command an army about 4,500 strong. 
 
 The Chilian authorities are now under notice not to allow themselves 
 to be surprised, 
 
 It is to be derived from the precedents informations that the enemies 
 of Chili are again armed and unwilling to make peace, repeatedly pro- 
 posed to long ago. They consider a term as indecorous, notwithstand- 
 ing it has been agreed with by many nations superior to them, and Chili 
 is not to be responsible for such a denying, nor she can be ascribed to 
 the delaying of a status quo, the lasting of which is not her fault. 
 Accept, sir, &c., 
 
 M. MABTINEZ. 
 
 No. 136. 
 Mr. Foote to Mr. Blaine. 
 
 No. 83.] Consulate of the United States, 
 
 Valparaiso, December 9, 1881. (Eeceived Jan. 12, 1882.) 
 
 Sir: I learn that some arrangement has just been entered into by the 
 Chilian Government, but not yet made public, securing to the holders of 
 Peruvian bonds one-half the proceeds of the guano now in the posses- 
 sion of Chili. This, as I am informed, has been formally approved by 
 the representatives of England, France, and Germany; but I do not 
 understand that any guarantee is attached to it. 
 
 If I had the power I should at once see the minister of foreign rela- 
 tions and demand information. 
 
 On Saturday last I telegraphed to you the information of the death 
 of General Kilpatrick, but have had no reply. 
 
 Montero's letter openly thanking General Hurlbut for the promised 
 intervention of the United States has created an intense excitement. 
 
 It seems to me that with less haste more progress might have been 
 made. This country need not have been agitated and alarmed by this 
 imprudent zeal, and our influence, which has for years been paramount 
 here, need not have been destroyed. 
 
 The senate and house of deputies have been in secret session for days 
 in the discussion of these questions. The leading senator of the party 
 opposed to the government said to me: 
 
 We are a unit. The United States may crush a sister republic if she can afford to 
 do so; but she shall not intimidate and dictate to us; we will die hard, and we will 
 make use of every resource which God and nature have given us. 
 
 And, knowing as I do the temper of the people, I believe this to be 
 the universal seutiment. 
 
 I may say, incidentally, that confidence in the good faith of the United 
 States has been shaken by the reports and " official communications" of 
 the so-called Peruvian company which have been, imprudently, it seems 
 to me, shown to the minister of foreign relations. 
 
 I have written what I have from a sense of duty, and I believe that 
 yon will appreciate the motive, informal though it may be. 
 I am, sir, &c, 
 
 LUCIUS H. FOOTE, 
 
 United States Consul. 
 
184 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 No. 137. 
 Mr. Blaine to Mr. Wallcer Blaine. 
 
 Department of State, 
 
 Washington, December 9, 1881. 
 Sir : On your arrival at Santiago you will take possession of the pa- 
 pers and property of the legation of the United States, and in addition 
 to the duties already confided to you, you will act as charge" d'affaires 
 until the arrival of a newly-appointed minister, or until you shall be 
 relieved by orders from this Department. 
 I am, sir, &c, 
 
 JAMES G. BLAINE. 
 
 s No. 138. 
 Mr. Blaine to Mr. Trescot. 
 
 No. 4.] Department of State, 
 
 Washington, December 16, 1881. 
 
 Sir : Some erroneous statements, now being circulated in a portion of 
 the American press, may reach Santiago and create an injurious im- 
 pression in the minds of the Chilian Government ; and I write you this 
 instruction from excess of caution, in order that no enduring harm may 
 result. 
 
 The erroneous statements in the press to which I especially refer are 
 those which represent this government as in some way giving encour- 
 agement to the Cochet claim against Peru, which, being acknowledged, 
 should enable the United States to pay an indemnity to Chili and then 
 practically own Peru, either directly or through an association of Ameri- 
 can citizens. 
 
 This is the extreme statement, and it has many shadings and varia- 
 tions. 
 
 Tou will take prompt and special care to anticipate any evil that might 
 result from these rumors being circulated by a disavowal and denial of 
 them in whole and in any part. 
 
 The only claim for which this Department has instructed our minister 
 at Lima to use his good ofiices is that known as the Landreau claim, and 
 this to the extent only of insisting that Mr. Landreau should be per- 
 mitted to have an authoritative investigation of his claim by the Peruvian 
 Government, and that if found to be good and valid it should be pro- 
 vided for in any treaty with Chili which might affect the property to 
 which it attaches. 
 
 The law officer of the Department of State, as long ago as 1874, made 
 an exhaustive report on this claim, and recommended that this govern- 
 ment should interpose its good ofiices in behalf thereof. 
 
 On the 20th of July, 1874, my predecessor, Mr. Secretary Fish, in- 
 structed our minister at Lima to use his good ofiices with the Peruvian 
 authorities in behalf of Mr. John C. Landreau, " with a view of securing 
 from that government a speedy investigation and adjustment of his 
 claim." 
 
 On the 20th day of February, 1880, the House of Eepresentatives of 
 the last Congress unanimously passed the following resolution : 
 
 That the petition of John C. Landreau, the report made thereon by the Committee 
 on Foreign Affairs, and the accompanying papers he transmitted to the Executive De- 
 partment, with the request that the President take such steps as, in his opinion, may 
 
\ 
 
 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 185 
 
 be propel-, and in accordance with international law to secure to the said John C. Lan- 
 dreau a final settlement and adjustment of his claim against the Government of Peru ; 
 and that, if in his opinion it is proper to do so, the President invite the Government of 
 France to co-operate with the United States in this behalf. 
 
 I inclose herewith, for your further information, copies of my instruc- 
 tions to Mr. Hurlbut on this subject. It gives me pleasure to say in this 
 connection, that Mr. Hurlbut's action in regard to, both the Landreau 
 and Gochet claims has been marked by entire prudence and discretion. 
 
 While disabusing the mind of the Chilian Government of any impres- 
 sion that the United States meditates intervention on behalf of private 
 claims, beyond the use of its good offices, you will say that justice seems 
 to demand that Landreau should have an opportunity to be heard in sup- 
 port of his claim before a tribunal in Peru competent to decide it, and 
 that, if decided in his favor, a treaty of peace which might cede terri- 
 tory to Chili should not be made in disregard of any rights which Mr. 
 Landreau may be found, after an impartial judicial investigation, to 
 possess. 
 
 Further than this the Department of State has not felt authorized to 
 go, and I must express the hope that the governments of Peru and Chili, 
 to both of which you are accredited, will recognize the moderation and 
 iustice of the request made by this government. 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
 No. 139. 
 Mr. Martinez to Mr. Frelinghuysen. 
 
 Legation of Chili, 
 Washington, December 28, 1881. (Received Dec. 31.) 
 
 Sir : The last steamer from Aspinwall brought the following authen- 
 tic news: 
 
 Sefior Ligardo Montero issued a proclamation at Cajamarca, on the 
 15th of November, stating that he assumes the Presidency of Peru and 
 enforcing the continuance of the state of active war against Chili. Ac- 
 cording to that proclamation, the capital of the republic was to be the 
 inland town of Cajamarca. 
 
 Meanwhile Senor Andres A. Caseres, the chieftain of the guerilla bands 
 stationed at Chosica, was proclaimed President by his troops. He also 
 issued a proclamation, under the date of the 24th of November, in which 
 he acknowledges the country to be in a state of anarchy; resigns, for 
 the present, the Presidency, till the people may freely elect a President; 
 and retains, meanwhile, the political and military government of the 
 central provinces. 
 
 Senor Caseres says also that the state of war is vigorously maintained, 
 and that he hopes the Peruvians will at last vanquish their foe. Senor 
 Caseres does not declare whom he judges to be chief of the nation, but 
 he confines himself to disowning the authority of Pi6rola. 
 
 As to the rest, the old personal political parties of the country are 
 entirely disorganized, disrupted, and in a state of anarchy. I think it 
 to be highly important for your excellency to be acquainted with these 
 facts that may lead you to fully appreciate the condition of affairs in 
 South America. 
 
 Please accept, sir, &c, 
 
 M. MARTINEZ. 
 
186 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 140. 
 
 Mr. Frelinghuysen to Mr. Trescot. 
 
 Washington, January 3, 1882. 
 On this date Secretary Frelinghuysen instructed Mr. Trescot by tele- 
 graph to exert his influence pacifically, and to avoid all issues which 
 might lead to his withdrawing from his post in Chili. 
 
 No. 141. 
 
 Mr. Frelinghuysen to Mr. Trescot. 
 
 Washington, January 4, 1882. 
 Secretary Frelinghuysen informed Mr. Trescot by telegraph on this 
 date that it was the wish of the President that our friendly offices should 
 beextended impartially to both republics ; that a pacific influence should 
 be exerted, and every issue which might lead to offense, avoided; that 
 questions growing out of the suppression of the Calderon government 
 could be attended to at Washington ; and that it was preferable that he 
 should not visit Buenos Ayres on his way home. 
 
 No. 142. 
 
 Mr. Frelinghuysen to Mr. Martinez. 
 
 Department of State, 
 
 Washington, January 7, 1882. 
 
 Sir : I have the honor to acknowledge the receipt of your note of the 
 28th ultimo, giving me your views as to the present condition of Peru, 
 derived from your latest intelligence. I need not inform you that it has 
 been read with the most lively interest. 
 
 I was much gratified yesterday with the assurances which you gave 
 me, in our personal interview, that your government, in the arrest and 
 imprisonment of Oalderon, was in no way instigated by an unfriendly 
 feeling towards the United States. If you feel yourself at liberty to re- 
 new that assurance in writing I shall be still further and greatly grati- 
 fied by your doing so. Such a communication, written in the friendly 
 spirit which marked your verbal communications, will tend to promote 
 that friendly feeling which is so desirable among American republics. 
 
 Accept, sir, &c, 
 
 FEED'K T. FRELINGHUYSEN. 
 
 No. 143. 
 
 Mr. Frelinghuysen to Mr. Trescot. 
 
 No. 6.] Department of State, 
 
 Washington, January 9, 1882. 
 Sir : Since you received your instructions on your departure as special 
 envoy to Chili, Peru, and Bolivia, I have sent you by cable two instruc- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 187 
 
 tions. As I have not heard of your having received them, and to make 
 their purport more intelligible than the brevity of a telegram would 
 permit, L send this, stating the proper construction of your original in- 
 structions, somewhat modifying them, and indicating how they are to be 
 executed. 
 
 The President wishes in no manner to dictate or make any authora- 
 tive utterance to either Peru or Chili as to the merits of the controversy 
 existing between those republics, as to what indemnity should be asked 
 or given, as to achange of boundaries, or as to the personnel of the Gov- 
 ernment of Peru. The President recognizes Peru and Chili to be inde- 
 pendent republics, to which he has no right or inclination to dictate. 
 
 Were the United States to assume an attitude of dictation towards 
 the South American republics, even for the purpose of preventing war, 
 the greatest of evils, or to preserve the autonomy of nations, it must be 
 prepared by army and navy to enforce its mandate, and to this end 
 tax our people for the exclusive benefit of foreign nations. 
 
 The President's policy with the South American republics and other 
 foreign nations is that expressed in the immortal address of Washing- 
 ton, with which you are entirely familiar. What the President does 
 seek to do, is to extend the kindly offices of the United States impar- 
 tially to both Peru and Chili, whose hostile attitude to each other he 
 seriously laments ; and he considers himself fortunate in having one so 
 competent as yourself to bring the powers of reason and persuasion to 
 bear in seeking the termination of the unhappy controversy ; and you 
 will consider as revoked that portion of your original instruction which 
 directs you on the contingency therein stated as follows : 
 
 You will say to the Chilian Government that the President considers such a pro- 
 ceeding as an intentional and unwarranted offense, and that yon will communicate 
 such an avowal to the Government of the United States with the assurance that it 
 will be regarded by the government as an act of such unfriendly import as to require 
 the immediate suspension of all diplomatic intercourse. You will inform me immedi- 
 ately of the happening of such a contingency, and instructions will be sent to you. 
 
 Believing that a prolific cause of contention between nations is an ir- 
 ritability which is too readily offended, the President prefers that he 
 shall himself determine after report has been made to him whether there 
 is or is not cause for offense. 
 
 It is also the President's wish that you do not visit (although indi- 
 cated in your original instruction you should do so), as the envoy of this 
 government, the Atlantic republics after leaving Chili. 
 
 The United States is at peace with all the nations of the earth, and 
 the President wishes hereafter to determine whether it will conduce to 
 that general peace, which he would cherish and promote, for this gov- 
 ernment to enter into negotiations and consultation for the promotion 
 of peace with selected friendly nationalities without extending a like 
 confidence to other peoples with whom the United States is on equally 
 friendly terms. 
 
 If such partial confidence would create jealousy and ill-will, peace, the 
 object sought by such consultation, would, not be promoted. 
 
 The principles controlling the relations of the republics of this hemi- 
 sphere with each other and with other nationalities may, on investiga- 
 tion, be found to be so well established that little would be gained at 
 this time by reopening a subject which is not novel. The President at 
 all events prefers time for deliberation. 
 I am, &c, 
 
 FEED'K T. FEELINGHUYSEN. 
 
188 AFFAIRS IN CHILI, PEETJ, AND BOLIVIA. 
 
 No. 144. 
 Mr. Martinez to Mr. Frelinghuysen. 
 
 Legation of Chili, 
 Washington, January 10, 1882. (Keceived January 11.) 
 
 Sik : I have the honor to inform your excellency of the latest news 
 received by this legation through the Pacific mail. 
 
 The fact that Rear- Admiral Montero has deserted from the ranks of 
 his former chief, the dictator Pierola, is fully confirmed. Montero has 
 accepted the vice presidency of Peru, which was offered to him by sev- 
 eral gentlemen of Lima, called notables. He needed no other invest- 
 ment to call himself the "constitutional president." 
 
 As this expression has been lately used in a very extraordinary sense, 
 so that many of the journals of the United States have unconsciously 
 made use of it, I deem it necessary to acquaint your excellency with its 
 meaning. 
 
 The last constitutional president of Peru, that is to say, elected by 
 the people according to the constitution, was General Mariano Ygnacio 
 Prado, whose term came to an end long ago. Those who have suc- 
 ceeded him in exercising the supreme power have been as constitutional 
 as the emperors of the lower empire who had themselves proclaimed 
 by their troops. They are called constitutional Presidents, because, 
 after having irregularly assumed the supreme power, they enforce one 
 of the many constitutions which Peru has given to herself since its in- 
 dependence. 
 
 As your excellency can easily perceive, that is an abuse of the term 
 which tends to pervert every idea of regular government. 
 
 Notwithstanding this, Mr. Hurlbut gave to the provisional govern- 
 ment of Garcia Calderon the name of constitutional, and revolutionary 
 to that of Pierola. 
 
 These pernicious errors ought to give way to a correct and suitable 
 knowledge of persons and things. 
 
 Montero issued at Gajamarca, a town situated in the northern moun- 
 tains of Peru, a circular under the date of 28th of October, 1881, ad- 
 dressed to the governors, stating that he was armed against the inva- 
 ders, and that he hoped to effect a happy solution of the pending ques- 
 tions by virtue of the effective mediation of the United States Govern- 
 ment. 
 
 The same chief circulated extensively the strangest document to 
 which it is possible to refer in the history of diplomacy, This was a 
 letter or manifest addressed by General Hurlbut to the so-called nota- 
 bles of Lima, which your excellency is acquainted with, but a copy of 
 which is herewith inclosed. 
 
 The same Mr. Montero wrote to his former chief under date of Novem- 
 ber 22, 1881, a letter explaining to him the grounds of his desertion, 
 
 Meanwhile, Mr. Nicholas Pierola gave up his nominal 'position, by 
 issuing a decree and a proclamation under the date of November 28, 
 1881. 
 
 According to the latest news, the troops under Montero do not amount 
 to more than 1,500 or 1,600 men, poorly armed and equipped. 
 
 As your excellency can see, that is but a sad comedy. 
 
 The so-called provisional president, Senor Francisco Garcia Calde- 
 ron, is at present in the town of Quillota, in the province of Valparaiso, 
 Chili. 
 
 Caceres, the chief of the Monteneros, is in Ohosica, a short distance 
 
AFFAIRS IN CHILI, PERU, A'JN'D BOLIVIA. 189 
 
 from Lima. He has not declared himself in any way, and we have every 
 reason to believe that he will act on his own account and at his own 
 risk, and will presently recognize the proclamation made to him by his 
 own army, which does not exceed three thousand or three thousand 
 five hundred men. The existence of this leader is virtually dependent 
 on the will of the Chilian general-in-chief, who can annihilate him when 
 ever he chooses to attack him. 
 
 As regards Mr. Pi6rola, he is at present in Lima, the report of his 
 having sailed for Europe having proved incorrect. He is living tran- 
 quilly, as a private citizen, under the security afforded by the protec- 
 tion of the Chilian army of occupation. 
 
 It is clearly evident that whenever the Chilian army shall abandon 
 the Peruvian capital anarchy will begin its disastrous work, and for this 
 this the Peruvians alone are responsible. 
 
 My government had an army in readiness to proceed to Arequipa, in 
 order to clear the situation, and thus facilitate the securing of peace; 
 but it has lately desisted from this purpose because it felt that the 
 purely local results to be secured would not correspond to the sacrifi- 
 ces which a new campaign involved. 
 
 An expedition, however, is ready to march to Janja, and will put an 
 end to its occupation by Caceres. This will only leave Rear Admiral 
 Montero in the north of Peru. He is without prestige, without arms, 
 without resources, and with no other territory over which to exercise 
 his authority than that on which he treads. 
 
 If the sensible people still remaining in Peru do not see that the time 
 has arrived to accept the conditions which Chili, with perfect justice, 
 demands, they will bring upon their country all the consequences of 
 that obstinate and incomprehensible resistance. I do not believe that 
 there is in the history of the world, an instance of a country which, being 
 so impotent to defend itself, showed itself so blindly stubborn in enduring 
 the laws of war. Everything which in any way tends to strengthen 
 that resistance is, and will be, contrary to the principles which govern 
 human affairs. 
 
 General Lynch, seeing that all the branches of municipal revenues 
 were in complete disorder and that their management was irregular, 
 ordered the appointment of a supervisor, a measure which degraded the 
 municipals, who, in consequence, threatened to resign their posts. The 
 journals have indeed published the fact that the alcalde Canevaro, and 
 other municipals, had resigned, but we are not aware that such is the 
 case. 
 
 The Bolivian general, Campero, is at the head of a small army, and 
 threatens to invade Tarapaca, but I assure your excellency, with an assur- 
 ance based upon many and incontestable reasons, that that threat can- 
 not possibly be realized. There is not the remotest fear that a drop of 
 blood will be shed on that side. 
 
 With sentiments of the highest consideration. 
 
 M. MARTINEZ. 
 
 [Translation of inclosure with Mr. Martinez's note of January 10, 1882.1 
 
 The following communication has been addressed by the North American minister 
 to the notables of Lima : 
 Gentlemen : At your request I make the following declarations : 
 
 1. The United States of America are strongly in favor of the cessation of hostilities 
 between Chili and Peru, and the speedy restoration of peace. 
 
 2. They are decidedly opposed to any dismemberment of the territory of Peru, ex- 
 cept with the free and full consent of this nation. 
 
190 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 3. They are of the opinion that Chili, as the result of the war, has acquired the 
 right of indemnification for the expenses of the war, and that Peru cannot refuse its 
 payment. 
 
 The Government of Chili knows that these are the views of the United States, but 
 the divisions which exist in Peru paralyze the fjood effects (offices?) of the United 
 States and afford a pretext to Chili for eluding action by the latter in conformity with 
 our desires, and for prolonging the state of war and the military occupation of Peru. 
 Chili say s : " We also desire peace, but there is here no one competent to treat to 
 that end." This statement is unfortunately true. For such a condition of affairs, the 
 only remedy is to be found in Peru itself. Union under whomsoever may be chosen 
 will dispel the pretext of Chili, and will give to the United States an advantage 
 which they need, and of which they will be able to take advantage. Nothing else, 
 in my judgment, will save Peru from indefinite military occupation by Chili. Peru 
 must herself effect her own salvation through the sacrifice of personal conditions 
 (ambitions?) on the altar of the country's redemption. 
 I am, &c., 
 
 S. A. HURLBUT. 
 
 A copy. 
 
 The secretary of legation. 
 
 F. PINTO. 
 
 No. 145. 
 
 Mr. Martinez to Mr. Frelinghuysen. 
 
 [Translation.] 
 
 Legation of Chili in the United States, 
 Washington, January 10, 1882. (Received January 10.) 
 
 Sir: I have bad the honor to receive your excellency's note of the 
 7th instant, whereby you were pleased to request me to furnish to you, 
 in writing, the explanations which I bad the honor to give you on the 
 occasion of our conference which was held on the 5th instant, in refer- 
 ence to the circumstances which preceded or accompanied the arrest of 
 Don Francisco Garcia Calderon, at Lima, and the bearing which that 
 act might have upon the very friendly and cordial relations which hap- 
 pily exist between your excellency's government and mine. 
 
 I thank your excellency for the opportunity which you have thus af- 
 forded me to contribute, by means of a plain and unvarnished statement, 
 towards drawing still closer the bonds of sincere friendship which unite 
 our respective countries. 
 
 I have already taken occasion, verbally, to furnish the explanations 
 which I now have the pleasure to put in writing, three times to Mr. 
 Blaine, your excellency's honorable predecessor, and once to your excel- 
 lency. Both Mr. Blaine and your excellency were fully satisfied, and I. 
 did not think it necessary to reduce said explanations to writing, because 
 it did not appear to me that the Secretaries of State had attached serious 
 importance to a hypothesis which, in my humble opinion, had no founda- 
 tion worthy of consideration. Nevertheless, in the memorandum which 
 I had the honor to address to the Department of State on the 21st of 
 November last, I explained all the circumstances relative to the ephe- 
 meral government of Garcia Calderon, and stated the incontestable rea- 
 sons that had existed for its abolition, which reasons are altogether un- 
 connected with the fact of the recognition of that government by that 
 of your excellency. 
 
 I must, moreover, remind your excellency that during our interview 
 I called your attention to a very significant incident, which was that a 
 fortnight before the arrest of Garcia Calderon at Lima, I read to the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 191 
 
 Hon. Mr. Blaine, in the presence of Mr. Hitt, his First Assistant Secre- 
 tary, a letter addressed to me by Bear- Admiral Lynch, in which the 
 latter stated that if Mr. Garcia Calderon did not yield obedience to the 
 order issued by him (Lynch), forbidding him to perform jurisdictional 
 acts within the lines of the Chilian occupation, lie should be obliged to 
 put him under arrest. Admiral Lynch could not know when or how Mr. 
 Garcia Oalderon would disobey that order, and when I communicated 
 the contents of the aforesaid note to Mr. Blaine (which I did as an evi- 
 dence of the most perfect frankness and of the fullest confidence in the 
 sincerity of the friendship of the United States for Chili), I considered 
 the event in question as being a future and contingent one which would 
 probably never come to pass. 
 
 After the repeated and terrible disasters which Peru had suffered, it 
 seemed that none but a man of very high intellectual and moral quali- 
 ties could unite the scattered elements of order existing in the country, 
 in order to treat for peace. Peru has always had military governments, 
 which are better respected in countries in which public order stands on 
 no solid foundation; and when the attempt was made to establish a civil 
 government there, it was found impossible to advance beyond the initia- 
 tory steps. 
 
 Chili has never desired to interfere in the domestic politics of her 
 enemy ; she has, nevertheless, not failed to study with the deepest inter- 
 est the character and qualities of the men who have taken, or who might 
 be called to take, a prominent part in public affairs, and who seemed 
 capable of rising to the height which the situation demanded, of holding 
 the reins of government with a firm hand, and of inducing their fellow 
 citizens to take the only course reserved for them by the laws of war. 
 It was natural, too, that sensible men in Peru should think of seeking 
 and finding the man whom the situation demanded, in order that they 
 might place the destinies of their country in his hands. 
 
 Mr. Garcia Calderon was mentioned, although it was said for him that 
 his character lacked most of the qualities which the circumstances re- 
 quired ; that he was not fit to govern, that he was deficient in courage, 
 and that he had no following upon which he could really rely. It was, 
 however, added that he was unstained by peculation or extortion ; that 
 he had the reputation of being an excellent lawyer, and that his eleva- 
 tion to power would meet with no serious opposition. 
 
 My government had no reason to express an opinion with regard to 
 the choice of the person who was to be placed at the head of affairs in 
 Peru. It appeared to it sufficient that Mr. Garcia Calderon enjoyed a 
 good reputation for honesty, and it decided to lend him a certain amount 
 of co-operation and support, in order to furnish him the means and the 
 opportunity to establish his authority. 
 
 The Chilian plenipotentiaries at Lima informed the future President 
 of l'eru what were the conditions of peace, and he accepted them as rel- 
 atively good, and promised to labor with a view to making them the 
 basis of a treaty. 
 
 Chili did not recognize, nor was she willing solemnly to recognize, 
 Garcia Calderon's government for many reasons. When he asked that 
 his government might be formally recognized, so that he might be en- 
 abled to gain some ascendancy in public opinion, this was refused, on the 
 ground that his government did not yet possess any condition of solidity, 
 respectability, or independence. 
 
 In fact, the manner in which that provisional President rose to power 
 could not have been more irregular and anomalous than it was, and the 
 
192 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 position in which he was placed, as regarded his own country and the 
 army of occupation, was still more extraordinary and exceptional. He 
 exercised no jurisdiction save within the limits of the territory which 
 was under the control of the Cbilian authorities, and he was under the 
 wing and the moral and material protection of the army of occupation. 
 He might at any time hare been arrested by any police officer. 
 
 Tour excellency knows that a government of that kind could not be 
 recognized by that of Chili, which needed, in order to be able to treat, 
 to have a respectable and respected government to treat with, and one 
 that was able really to pledge the faith of its nation. 
 
 Your excellency's government, undoubtedly, had more liberty of action 
 than did mine, because it did not need to enter into any ulterior negoti- 
 ations with the Peruvian Government, and was consequently able to act 
 with greater freedom in contributing to give Garcia Calderon the moral 
 prestige and authority of which he stood in need. 
 
 Under such auspices, Garcia Calderon began to act in violation of all 
 his previous promises, and was guilty of a series of acts subversive of 
 the legitimate rights and interests of Chili, so that he rendered himself 
 absolutely unworthy of any toleration or indulgence on the part of my 
 government. 
 
 In the memorandum of Xovember '21, to which I refer, I mentioned 
 four or live of the principal acts which, with evident reason, caused that 
 gentleman to lose the favor of the Chilian Government. In order to 
 avoid repetitions, which would make this communication too long, I 
 will simply refer to what I said in that paper, which I had the honor to 
 transmit to your excellency immediately after your elevation to the high 
 position which you now occupy. 
 
 Mr. Garcia Calderon having been guilty of these offenses, and having 
 openly declared that he would not treat on the basis proposed by Chili, 
 the doom of his government was irrevocably sealed. 
 
 In the steps subsequently taken by the Government of Chili, that gov- 
 ernment paid no attention to the proceedings of General Hurlbut, upon 
 which the provisional president of Peru said that he based his reaction- 
 ary conduct, but acted exclusively in accordance with its own rights. 
 
 The fact is that my government never believed that General Hurlbut 
 was faithfully interpreting the lofty, considerate, and friendly policy of 
 the United States Government. 
 
 The first step taken by General Lynch (who had been duly authorized 
 to do so) was to deprive Garcia Calderon of the arms which, trusting to 
 his honor, he had lent him. Subsequently, when that gentleman's 
 attitude became more dangerous, he was dispossessed of the bureaus 
 which he had organized and was peremptorily ordered to perform no 
 governmental or jurisdictional act within the lines of the Chilian occupa- 
 tion. Still later, when he intentionally violated this order, he was ar- 
 rested and sent to Chili, but was treated with every courtesy and at- 
 tention. 
 
 The American General Scott acted, under similar circumstances, in the 
 same manner in Mexico. 
 
 Even if the provisional government had been recognized by all friendly 
 powers, Chili would have had to act as she did, not only for the main- 
 tenance of her rights, but from a sense other own dignity and self-respect. 
 And even if Chili had recognized that government, that circumstance 
 would not have rendered it inviolable, and she would still have been 
 obliged to act precisely as she did. 
 
 Consequently I can and do assure your excellency, in the most formal 
 and solemn manner, (hat my government had not the most remote in- 
 
PERU, AND BOLIVIA. 193 
 
 tention or the slightest purpose to impair, in any -way, the state of friend- 
 ship and cordiality which previously to those events, during the same 
 and subsequently, has existed, and which it has always desired should 
 exist, between it and the Government of the United States. 
 
 I likewise had the honor to remark to your excellency, in our interview 
 of the 5th instant, that certain financial schemes had thrown difficulties 
 in the way of the conclusion of peace with Peru, and that while those 
 schemes remained on the carpet it would be difficult to reach the de- 
 sired solution. I may now add that the parties interested in those op- 
 erations are endeavoring, both through the public press and such other 
 means as they find available, to predispose the United States against 
 Chili, and that they spare no pains to present the most natural and logical 
 events of my government in a wrong' light. 
 
 I avail myself, &c, 
 
 M. MARTINEZ. 
 
 No. 146. 
 
 Mr. Frelinghuysen to Mr. Martinez. 
 
 Department of State, 
 Washington, January 16, 1882. 
 
 Sir : In acknowledging the receipt of your excellency's note of the 
 10th instant, permit me to convey to you my gratification in receiving 
 your assurance that the Government of Chili, in its attitude toward 
 the Calderon Government in Peru and in its treatment of President 
 Calderon, had no intention or purpose to impair in any way the state 
 of friendship and cordiality which has always existed between it and 
 the Government of the United States, and which it is the sincere wish 
 of this government may be perpetual. 
 
 Accept, sir, &c, 
 
 FRED'K T. FRELINGHUYSEN. 
 
 No. 146£. 
 
 Mr. Martinez to Mr. Frelinghuysen. 
 
 Legation of Chili, 
 Washington, January 18, 1882. (Eeceived January 21.) 
 
 Sir : I continue the agreeable task of communicating to you the news 
 brought by the last mail. 
 
 The rumor current after the arrival of the last mail, to the effect that 
 the municipal authorities had been discharged from their duties in 
 Lima, had proved correct. The general-in-chief of the Chilian army 
 felt himself obliged to take this measure because the municipality 
 wished to act with absolute independence of the executive authority, 
 which was in every way impossible, and also because the management 
 of the municipal funds was in every way improper. On the other hand, 
 the municipality failed to make the necessary expenses for the police, 
 and security, and cleanliness of the city, notwithstanding the fact that 
 they had more than sufficient resources for it. 
 S. Ex. 79 13 
 
194 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 These circumstances induced the general-in-chief of the army of oc- 
 cupation to name a superintendent of the municipality ; and since the 
 mayor (alcalde) refused to recognize the measure, the rear-admiral was 
 forced to issue a decree with the date of 7th of December, declaring 
 that the functions of the municipality had ceased, and that Seiior 
 Adolfo Guerrero was nominated as political chief of the department of 
 Lima. 
 
 This measure was indispensable, and for considerations which had no 
 right to exist, had not been taken beforehand because it was impossi- 
 ble to maintain a system whose political and local administration obeyed 
 principles, interests, and regulations completely independent and op- 
 posite. 
 
 ^.t present there are in Peru four supreme chiefs : General Montero 
 in the north; General Caceres in the center; Colonel Latorre in Are- 
 quipa, Puno, and Cuzco; and another, Colonel Pacheco Cespedes, in 
 Moquegua, none of whom recognizes the other as superior. 
 
 A manuscript of a letter said to have been sent by General Hurlbut 
 to the guerrilla chief Caceres has been very widely circulated in Lima. 
 In Lima the authenticity of this document was not doubted, and Mr. 
 Hurlbut took no steps to deny it. Tour excellency will permit me to 
 inclose a copy of this strange document, which has been published in 
 the press of Panama. I received a manuscript copy, with the assurance 
 that it was authentic. 
 
 I take pleasure, &c, 
 
 M, MAETIXEZ. 
 
 [Inclosnre in note from Mr. Martinez, of January IS, 1852. — Translation.] 
 ilr. Hurlbut to General Caceres. 
 
 Dear Sir: I did not, for weighty reasons, answer your letter by the same person 
 -who brought it to me. 
 
 The United States have already recognized the constitutional government, first in 
 the person of Dr. Don Francisco Garcia L'akleron, and afterwards in that of the Vice- 
 President, Rear Admiral Montero. 
 
 It is, consequently, evident that it is impossible for it to recognize any other gov- 
 ernment. 
 
 The plan of a junta appears to me to be altogether impracticable in fact and in- 
 admissable in theory. A government under this form would, in my judgment, only 
 lead to disagreement and discord, and instead of assuring unity of action, would in- 
 volve uncertainties and hesitations. 
 
 I am anxious to see the speediest disappearance of all parties, and that all Peruvi- 
 ans may be united for the maintenance of a constitutional regime. This would demand 
 sacrifices on the part of some, but all good causes are strengthened precisely in this 
 way — by sacrifices. 
 
 Within ten days or two weeks there will reach this city special commissioners sent 
 out by the United States. It is of the highest importance to say to them that all 
 Peru is at last united in the sole aim of saving the country. 
 
 I see no other way by which you can add additional lustre to your high reputation, 
 nor by which you can render such good service to the cause of the independence of 
 Peru. 
 
 I am, &c, 
 
 S. A. HURLBUT. 
 
 Lima, December 11, 1SS1. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 195 
 
 3.-PERU. 
 No. 147. 
 
 Mr. Gibbs to Mr. Evarts. 
 [Confidential.] 
 
 No. 311.] Legation of the United States of America, 
 
 Lima, Peru, February 19, 1879. (Received March 17.) 
 
 Sir : As we have no minister at Bolivia, and a serious, that is now 
 an open, rupture having risen between that country and Chili (partly re- 
 ferred to in my dispatch No. 304, of 10th instant), and which is very prob- 
 able will involve this republic, I have thought it necessary to inform 
 the department of the events that have taken place and the causes to 
 date. 
 
 The district or province of Atacame is a desert, or at least a greater 
 part that borders on the Pacific Ocean in Bolivia, bounded on the south 
 by the parallel line of the twenty-fourth degree of latitude, a line that 
 was agreed upon with Chili in a treaty of limits celebrated between 
 the two countries August 6, 1874, the Bolivians agreeing to pay the 
 Chilians half of the export duties collected on- all minerals exported 
 from Atacame. By a protocol to the above treaty , made in July , 1 875, the 
 agreement in relation to duties collected on metals was rescinded, but 
 remained on guano. Previous to this treaty many rights and franchises 
 were ceded by Malgarejo, one of the Presidents of Bolivia, but the Boliv- 
 ians claim that those cessions were never confirmed by any legislative 
 sanction. 
 
 The province of Atacame is very productive of nitrate and, in many 
 parts, of borax. The desert extends from the coast about 70 miles east- 
 ward to the Andean range of mountains, which are rich in metals — copper, 
 silver, and gold. Antofagasta, about latitude 23° 40' south, is the port 
 from whence are exported the products of the nitrate fields. The nitrate 
 works, the railroad from the port to manufactories, the moles at the 
 port, all are owned and built by Chilian and some English capitalists. 
 
 According to the treaty of 1874 with Chili, every facility was given 
 to induce the Chilians to invest their capital in these works, and by 
 Article IV it was stipulated. 
 
 The duties of exportation imposed on minerals from the zone referred to in the pre- 
 vious articles shall not be increased to more than actually paid at present ; nor the 
 persons, industries, or capital of Chilians shall be subject to contributions or taxes of 
 any kind other than those existing. The clause in this article shall remain in force 
 for the term of twenty-five years. 
 
 By a law passed in the Bolivian Congress February 14, and decreed 
 the 23d, 1878, it was ordered that all nitrate exported from Antofagasta 
 should pay ten cents per quintal as contribution. It was not put into 
 force at the time, remaining in abeyance. The nitrate company and the 
 Chilian minister at La Paz interposed to prevent, if possible, the 
 carrying out of the law; the company, on the ground that their rights, 
 legally acquired, were attacked; the minister, in defense of an existing 
 international treaty. Matters remained in this state, when, on the 8th 
 of November last, the Chilian government, through its minister at La 
 
196 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Paz, informed the Government of Bolivia that if the law of contribu- 
 tion was put into force Chili would declare the treaty of limits of 1874 
 annulled, and would throw the respousibility on Bolivia. 
 
 The Government of Bolivia answered that there was no room for 
 such a measure, as the tax was imposed on an association or company. 
 The result was that an order was given to the authorities of Antofagasta 
 for the immediate collection from the nitrate company of the sum of 
 $90,848.15, being the amount calculated on export of nitrate from the 
 date of the decree of the 14th of February; this order was given on the 
 17th of December; on the 18th the Chilian minister, in a note to the 
 Bolivian Government, that on receiving the note ordering the tax to be 
 collected, he, in the name of his government, declared the treaty of 1874 
 abrogated. 
 
 On the 26th of December the Bolivian Government answered the 
 Chilian minister saying that the course taken by the Chilian Govern- 
 ment was to be regretted ; that it was justified in its procedure, and 
 reminding the minister that according to article 2 of the treaty there 
 was always a chance in such cases for arbitration. 
 
 It appears that Bolivia held off, and would have left the question to be 
 regulated by Congress on its meeting, or by arbitration; but the action 
 of Chili, in its note of the 8th of November, aroused the feelings of the 
 Bolivians, and caused the order for the carrying out of the decree. 
 
 Various rumors reached Peru that a rupture would take place but 
 were not generally credited, all doubts were removed a short time since 
 when it was known that Chili had ordered some vessels of war to carry 
 troops to Antofagasta, to land, seize the port, railroad, and the nitrate 
 works. From information received by telegraph, it appears that a fleet 
 of Chilian vessels arrived at the port on the 14th instant, disembarked 
 fifteen hundred troops and have taken possession of the place; the fleet 
 consisted of the iron-clad Admiral Cochrane, the Blanco Encalada, and 
 the O. Hoggins. It is said that these vessels carried arms and ammuni- 
 tion for two thousand more men that could be armed in Bolivian terri- 
 tory as a great majority of inhabitants of the nitrate district are Chilians. 
 
 On the 16th instant Senor Eeyes Ortiz, minister of foreign affairs of 
 Bolivia, now acting as a special envoy, arrived at this capital, it is said 
 by the press, to ask permission for the privilege to pass Bolivian troops 
 through Peruvian territory, from Lake Titicaca to Mollendo, a port some 
 400 miles north of Antofagasta. 
 
 It is certain that the arrival of this envoy has caused quite a sensation; 
 it is thought that the object of his mission is to induce Peru to take 
 part with Bolivia. 
 
 I have heard on various occasions that there existed a secret treaty 
 for an alliance, offensive, and defensive, between the Argentine Repub- 
 lic, Bolivia, and Peru, against Chili; by making inquiries I have learned 
 from trustworthy sources that a treaty as above was made and signed 
 July 3, 1873, and is still in force. 
 
 Foreigners residing iu Peru will notice that there exists great antago- 
 nism against Chili ; while apparently friendly as two sisters and neigh- 
 boring republics of the same origin, there is a deep feeling of antipathy 
 between them. It is difficult to give a cause for these sentiments ; the 
 Peruvians say that Chili is overbearing and rejoices at any ill fortune 
 that may overtake her neighbors. I believe this feeling of ill will goes 
 back for generations, the Peruvians looking upon the Chilians with con- 
 tempt during colonial times. 
 
 Most of the persons with whom I have conversed in relation to this 
 rupture express regret at the state of affairs, but it can be easily per- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 197 
 
 ceived that their sympathies are with Bolivia, not for any liking for that 
 republic, but through ill will to Chili ; and I judge Peru will eventually 
 be induced by some overt act to take part with Bolivia against Chili. 
 
 The President of this republic, General Prado, when an exile from 
 this country, resided in Chili; and it is said is personally very friendly 
 to that State, where, reports say, he has also pecuniary interests. I 
 think General Prado will do all that is possible to prevent an outbreak 
 between the countries, but I fear that public opinion will counteract 
 his peaceful efforts and overwhelm him. 
 
 What may complicate Peru is a treaty made in secret session Febru- 
 ary 5, 1877, wherein the right of transit was guaranteed to Bolivian 
 troops through Peruvian territory at any time; this treaty is not spoken 
 of, but to a few is known to exist. 
 
 A few days ago a committee of some of the principal Peruvian naval 
 officers were ordered to examine the war vessels of this republic, now 
 at Callao; the result of the examination was an order that the vessels 
 should go into dock to be overhauled and cleaned. 
 
 It is to be greatly regretted that these South American States should 
 be so easily led into war, and for such trifling causes ; none of them can 
 afford it ; this country, as will be seen by my despatch No. 304 of the 
 10th instant, is in a very impecunious state, Chili not so much, and 
 financially is better off ; Bolivia has not much to lose ; the Antofagasta 
 nitrate fields are separated from the agricultural and inhabited parts of 
 the republic some hundred of miles by the western range of the Andes, 
 crossed by narrow and difficult passes at certain points. 
 
 Chili could easily hold the coast, and perhaps annex it, if Peru does 
 not interfere. Some of the principal mines of Bolivia, silver and copper, 
 are worked by Chilians and with Chilian capital; these would be seized 
 and confiscated by the Bolivians. 
 
 By some thinking persons it is feared that if Peru takes part in the con- 
 flict, and troops are taken from Lima for the southern provinces, PieYola 
 will make his appearance in a short time near the capital; if he did, I 
 think it would upset the present administration and create great politi- 
 cal changes in the country. 
 I am, &c, 
 
 EICHAED GIBBS. 
 
 No 148. 
 
 Mr. Gibbs to Mr. Hvarts. 
 
 No. 314.] Legation op the United States of America, 
 
 Lima, Peru, February 26, 1879. (Beceived March 17.) 
 
 Sir: I have the honor to refer to my dispatch, No. 311, of the 19th 
 instant, in relation to the conflict between Chili and Bolivia. On the 
 15th the Chilian minister at La Paz declared that peace had been bro- 
 ken, and demanded his passports, which were given. 
 
 On the 23d instant telegrams were received that the Chilian Govern- 
 ment had prohibited the exportation of mules from the Argentine Re- 
 public to Peru. On the 23d the mails from the south brought full de- 
 tails of the taking of the ports of the Bolivian coast, which reads like a 
 formal possession by the Chilian forces, and intentions of remaiuing, the 
 Bolivian authorities having left and Chilian taking their places. 
 
198 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 It is not known what position this country will take, the last three 
 days being carnival, no papers have been published, and all official 
 business suspended. 
 I am, &c, 
 
 EICHAED GIBBS. 
 
 liTo. 149. 
 
 Mr. Gibbs to Mr. Evarts. 
 
 No. 316.] Legation of the United States of America, 
 
 Lima, Peru, March 5, 1879. (Received March 26.) 
 
 Sir : I beg to refer to my dispatcb, No. 314 of 26th ultimo, in reference 
 to the occupation of Bolivian coast territory by Chilian forces, the details 
 that arrived by the coasting steamers confirm the news, and all informa- 
 tion points to the fact of an apparent determination of the Chilians to 
 remain, as they have established civil and military government in due 
 form on all the points occupied. 
 
 Great excitement exists in this country in relation to the matter, the 
 press, with rare exceptions, calling on the government to take an active 
 part with Bolivia against Chili. A remarkable article appeared in "El 
 National," calling on the President to declare war against Chili or re- 
 sign; the papers of last evening call for an extraordinary Congress, and, 
 from all that I can learn, I think that this country will be led into the 
 question, taking part with Bolivia, for there is no doubt that there is a 
 strong anti-Chilian feeling through all Peru. 
 
 Senator D. Jose" Antonio Lavalle, a distinguished Peruvian, has been 
 sent to Chili on a special mission in relation to this affair, and I judge 
 much will depend upon his reception by the Chilian Government, which 
 will decide the course to be taken by the republic. He has filled the posi- 
 tion of minister to Eussia and Germany. From private telegrams re- 
 ceived, it is thought that his mission will be ineffectual. 
 I am, &c, 
 
 EICHAED GIBBS. 
 
 No. 150. 
 
 Mr. Gibbs to Mr. Evarts. 
 
 No. 317.] Legation of the United States of America, 
 
 Lima, Peru, March 12, 1879. (Eeceived April 3.) 
 
 Sik: I have the honor to refer to my preceding dispatch, No. 316, of 
 5th instant, relative to the Chili-Bolivian question. In writing upon this 
 subject it is to place the Department in knowledge of events that may 
 affect this republic. I presume lam also warranted in mentioning affairs 
 of Bolivia, as at present the United States has no representative at that 
 republic to explain affairs. I have to refer to acts of the Chilians, wh ch 
 belong properly to my colleague, Mr. Osborn, at Santiago. I make this 
 explanation that it may not be inferred I am writing on matters outside 
 of my mission. 
 
 Up to the present, I have no information of a formal declaration of 
 war having been made either by Chili or Bolivia. 
 
 Chili has, by force of arms and through her vessels of war, taken pos- 
 
AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 199 
 
 session of the coast of Bolivia from its limits, latitude 24° south, down 
 to Tocopilla, north of the twenty-second degree, within 30 miles of the 
 river Loa, which is the boundary line between Peru and Bolivia, and 
 holds the whole coast, establishing marine, military, and civil govern- 
 ment. From articles here published, taken from the Chilian press, it is 
 said to be only a reoccupation of territory that belonged to Chili, ceded 
 by treaty for certain rights granted, which, not being carried out, Chili 
 has merely repossessed themselves of their own, or, in Spanish, " revindi- 
 cation," which may be translated "reinstation." 
 
 The only official action taken by Bolivia is a proclamation by Presi- 
 dent Daza, which is not a declaration of war. I inclose a copy of it in 
 Spanish', taken from a Lima paper, and a translation from the South 
 Pacific Times, of Callao. 
 
 This government continues its preparations, I suppose following the 
 old adage, " If you wish peace, prepare for war." 
 
 On the 7th instant a regiment of infantry was sent to Callao to be 
 embarked for Iquique, the great nitrate port, the most southerly in this 
 republic, and within about 80 miles of the boundary line between Peru 
 and Bolivia. Great enthusiasm was manifested, and the scene at the rail- 
 road station was one of great excitement, a multitude being there to see 
 them off. Yesterday the monitors Atahualpa and Manco Capac got up 
 steam, left their anchorage, and practiced with their heavy guns. 
 
 The Peruvians have a large quantity of heavy Blakely, Rodman, and 
 other guns in their deposits, and are changing the smooth-bores on their 
 ironclads for rifle-bores. Their fighting fleet consists of four iron-clads ; 
 Independencia, 2,004 tons, 550 horse-power, 22 guns ; Huascar, turret, 
 1,130 tons, 300 horse-power, 5 guns ; Manco Capac, monitor, 1,034 tons, 
 330 horse-power, 2 guns of 500 ; Atahualpa, 1,034 tons, 330 horse-power, 
 2 guns of 500. 
 
 The authorities are doing all possible to avoid any public demonstra- 
 tion that may complicate affairs. The students of the oldest and most 
 important university of the country, San Carlos, called a meeting of its 
 members, or alumni, to take place at the fair grounds on the 9th instant. 
 The chief of the police was on the ground and did not allow it to take 
 effect. The young men on arrival there were quietly informed that it 
 would not be permitted, and they returned without making any demon- 
 stration. 
 
 On the 10th instant telegrams were received from Senator Lavalle, the 
 special minister sent to Chili, stating that his reception at the capital, 
 Santiago, was satisfactory. 
 
 These people are of a very excitable nature, and as such the first im- 
 pressions quickly pass. I think if no extraordinary event takes place, 
 and the actual state of affairs is not changed by some overt act on either 
 part, peace may be preserved between this country and Chili ; although 
 there is a feeling of obligation by events that are to be feared in the 
 future. Many Peruvians fear that if the Bolivians are left to themselves 
 they will try and seize the southern province of Tarapaca, the great 
 nitrate deposit, and a more immediate outlet for them to the coast. 
 
 One of the results of this uncertainty is the effect on financial affairs. 
 Exchange on England has fallen from 23d.. to 19$d. per sol ; American 
 gold 120 premium, now 150, and the necessaries of life increasing in 
 price. 
 
 Want of funds may check the war fever of the Peruvians, but one of 
 the leading papers, in last evening's edition, says there are three ways 
 of raising money : an appeal to the country for voluntary contributions 
 
200 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 to the war ; a direct war-tax on the whole population ; or, in an extreme 
 case, emission of paper money. 
 
 I have just this moment, at a late hour, received a note from the Bo- 
 livian minister, Mr. Zoch Mores, declaring that his country accepts the 
 war forced on them by Chili. I inclose copy with translation. He wishes 
 me to telegraph the idea to the State Department, but, on reflection, I 
 advised him to do it personally over his own signature. He informs me 
 that by the mail received this day there is an immense enthusiasm in all 
 Bolivia for the war, and there will be no lack of funds or men. 
 I am, &c, 
 
 EICHAED GIBBS. 
 
 [Inclosure 1 in No. 317.] 
 
 [From the South Pacific Times, Tuesday, March 11, 1879.] 
 
 The important documents of -which the following are translations have been pub- 
 lished in the Bolivian papers : 
 
 Hilarion Daza, President of the Republic of Bolivia — 
 Considering : 
 
 That the military occupation of the department of Cobija by the invading forces of 
 the Chilian squadron is an unjustifiable attack on the sovereignty of the republic and 
 its territorial integrity ; 
 
 That the country being invaded it is a national duty to sustain its independence and 
 defend its dignity -with tie unanimous efforts of all Bolivians, who, in the hour of con- 
 flict, have always known how to unite with integrity and patriotism; 
 I decree : 
 
 Sole Article. An amnesty, ample and without restriction, is conceded to all Boliv- 
 ian citizens who, for political motives, should be under trial or abroad, certain that 
 they will place themselves on the side of the government, which at present has no 
 other thought than that of raising very high the national banner under whose shadow 
 all the sons of the soil will fraternize. 
 
 Giveu in the city of La Paz, on the 20th day of the month of February, one thousand 
 eight hundred and seventy-nine. 
 
 H. DAZA. 
 
 MANUEL OTHOU JOFRE. 
 JULIO MENDEZ. 
 Countersigned : 
 
 EULOGIO D. MEDINA. 
 A true copy. 
 The chief officer of government, 
 
 LUCIANO VALLE. 
 
 Hilarion Daza, President of the Republic of Bolivia — 
 
 Considering : 
 
 That the parts of Antofagasta, Mejillones, and the mineral district of Caracoles have 
 been occupied by expeditionary forces of the Republic of Chili ; that this act of unjust 
 and perfidious aggression compels the nation to take up arms to defend the integrity of 
 its territory, its sovereignty, and independence, assailed by an unloyal and ambi- 
 tious neighbor; that the state of war to which the republic has been impelled 
 makes it necessay to confer on the government the efficacious and extraordinary power 
 which the political constitution of the state concedes to it in cases of great danger in 
 consequence of interior commotion or foreign war, the counsel of ministers having 
 been heard ; 
 
 I decree: 
 
 Sole Article. The country is declared in danger and in a state of siege, in confor- 
 mity with the prescription of the 26th article of the constitution of the state ; in conse- 
 quence the government is invested with the faculties contained in the 27th article, 
 while during the present circumstances of war, brought on by Chili, endure. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 201 
 
 The ministers of state, each in Ms respective branch, remain charged with the exe- 
 cution of the present decree. 
 
 Given in the city of La Paz, on the 24th day of the month of February, one thou- 
 sand eight hundred and seventy- nine. 
 
 H. DAZA. 
 
 MANUEL OTHOU JOFRE, 
 JULIO MENDEZ. 
 Countersigned: 
 
 EULOGIO D. MEDINA. 
 A true copy. * 
 
 The chief officer of government, 
 
 LUCIANO VALLE. 
 
 [General Order.] 
 
 Ministry of War, 
 Headquarters, La Paz, February 27, 1879. 
 
 The President of the Republic has considered it desirable to make known to the 
 army the occurrences on the frontier, and has issued the following proclamation : 
 
 Soldiers: Under the shadow of peace, which should be unalterable and cordially 
 sustained by the Republics of Chili and Bolivia, because the interests of both countries 
 so require it, and because my government has taken care to cultivate with diligence 
 its fraternal relations, that of that nation has just consummated an outrage on civili- 
 zation for which there is no name. On the 14th of this month two Chilian steamers 
 of war, with eight hundred men for disembarkation, aud supported by a considerable 
 number of persons depraved by misery and vice, assassins of the curved blade, have 
 taken possession of our defenseless ports of Antoiagasta and Mejillones by surprise, 
 without previous declaration of war, without taking into account that civilization 
 condemns vandalic acts more than it does those of hordes of savages, if they are com- 
 mitted by nations and governments which pretend to culture. The result of an inter- 
 national iniquity, it is natural that it should have been the perpetration of crime as 
 a praisworthy action. A Bolivian policeman, his wife and child, in Antofagasta, and 
 four laborers in Carmen Alto, have been assasinated with the special weapon of the 
 Chilian bandit, the curved dagger. 
 
 Companions : So cynical a conculcation of the rights of humanity imposes on all the 
 StateB of the American continent a sacred duty of eminent justification and of fore- 
 sight, which sooner or later they will have to fulfill. 
 
 In the mean time the Bolivian army will let the world know that the honor of 
 Bolivia and the integrity of its territory are under the safeguard of its bayonets, and 
 that on this occasion, as on others, it will know how to chastise its cowardly 
 aggressors. 
 
 Comrades : I expect everything from your patriotism, your serenity, and discipline. 
 If the government which has believed it would humiliate us by the occupation of our 
 desert shores does not honorably retract its vandalic acts, there will remain inaugu- 
 rated for us a glorious epoch, because we will all fulfill with emulation the holy duty 
 of fighting without truce or hesitation the enemies of the national autonomy, the 
 usurpers of our territory, the conquerors of civilized towns. Let our motto be to " live 
 or die for Bolivia." 
 
 Be ready for the precious moment in which the campaign opens, and we will march 
 to recover the beautiful soil of Atacama, which was left us by the founders of the 
 republic. 
 
 H. DAZA. 
 
 Headquarters in La Paz, 
 
 February 27, 1879. 
 This is made known in the order of the day to the end that the chiefs, officers, and 
 troops redouble their efforts and perseverance to arrive at the highest degree of morale 
 and discipline, indispensable elements for the fulfillment of the sublime duties which 
 in these moments Bolivia imposes on its sons armed in its defense, and to obtain 
 splendid victories. 
 The general and minister. 
 
 JOFRE, 
 The 2d Adjutant Major. 
 
 A true copy. 
 
 The colonel adjutant-general. 
 
 IGNACIO CEVALLOS. 
 
202 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No 151. 
 
 Mr. Gibos to Mr. Evarts. 
 
 No. 322.] Legation of the United States of America, 
 
 Lima, Peru, March 19, 1879. (Received April 14.) 
 Sir: Referring to dispatch No. 316, of the 5th instant, relating to the 
 Chili-Boliviau rupture, I have notmuch to add. Preparations going on 
 and all appearances of Peru and Chili gravitating to war, which means 
 ruin. I inclose translation of a decree given by President Daza, of Bo- 
 livia; expulsion of Chilians and embargo of their property. 
 
 I am, sir, &c, 
 
 RICHARD GIBBS. 
 
 [Inclosure 1 in No. 322.] 
 
 [From the South Pacific Times, Tuesday, March 18, 1879.] 
 
 EXPULSION OP CHILIANS FROM BOLIVIA. 
 
 Tlie Government of Bolivia have issued the following decree : 
 
 [Translation.] 
 
 Hilaeion Daza, President of the Republic of Bolivia — 
 
 Considering : 
 
 That the Government of Chili has invaded de facto the national territory without 
 observing the rules of international law or the practice of civilized nations, violently 
 expelling the authorities and Bolivian citizens resident in the department of Cobija ; 
 
 That the Government of Bolivia finds itself in duty bound to dictate the energetic 
 measures which the seriousness of the situation demands, without departing, how- 
 ever, from the principles recognized by the rights of nations ; 
 
 I decree : 
 
 Art. 1. All trade and communication with the Republic of Chili is prohibited dur- 
 ing the continuance of the war undertaken by that republic against Bolivia. 
 
 Art. 2. The Chilians resident in Bolivian territory must disoccupy it within the 
 term often days from the date of the notification, which should be made them by the 
 local political authority ; they being at liberty to take with them their private papers, 
 their baggage, and articles of personal use. 
 
 Art. 3. The expulsion ordered in the previous article can only be suspended for the 
 term, which should be strictly indispensable, on account of sickness or other serious 
 impediment in the judgment of the authorities. 
 
 Art. 4. The respective authorities will proceed, as a war measure, to embargo the 
 fixed and moveable property belonging to Chilian subjects within the territory of the 
 republic, with the exception of the objects designated in article 2. The mining prop- 
 erty belonging to Chilians, or in which there should be shareholders of that nation- 
 ality, may continue to be worked under the charge of an administrator appointed by 
 the authorities or with the intervention of a representative of the government, as they 
 may think most desirable. 
 
 Art. 5. The net proceeds of the mining property belonging to Chilians, or of shares 
 belonging to the same, shall be deposited in the national treasury. 
 
 Art. 6. The embargo ordered by this decree will be converted into definite confisca- 
 tion, should the kind of hostilities engaged in by the Chilian forces require an ener- 
 getic retaliation on the part of Bolivia. 
 
 Art. 7. All transferences of Chilian interests made at a later date than the 8th of 
 November last, on which date the Chilian Government declared the treaty of 1874 
 annulled, will be ignored ; and any contract which should have been agreed upon in 
 this respect will be considered void. 
 
 The minister of government and foreign affairs will take charge of the publication 
 and execution of this decree. 
 
 Given in the city of La Paz the 1st day of March, 1879. 
 
 H. DAZA. 
 
203 
 
 No. 152. 
 
 Mr. Gibbs to Mr. Uvarts. 
 
 No. 323.] Legation op the United States of America, 
 
 Lima, Peru, March 26, 1879. (Received April 15.) 
 
 Sir : Referring to my preceding dispatch, No. 322, of 19th instant, I 
 have not much to add. 
 
 The Peruvians preparing their iron-clads and monitors ; also many men 
 working at the shore defenses and batteries at Callao. 
 
 On the 24th instant a proclamation was published in due form con- 
 voking an extraordinary session of Congress to meet on the 24th of 
 April next. The proclamation simply states the reason, as follows : 
 
 1st. To make known to the Congress the conflict existing between Chili and Bolivia, 
 so that the position of the republic in relation to the belligerents be defined, and to re- 
 solve what might be necessary. 
 
 2d. To treat on matters of the highest importance and general interest that the gov- 
 ernment may deem necessary to place before it. 
 
 I should not be surprised if Chili takes the first step and not await for 
 a declaration of war from Peru, but strike the first blow. If they do, it 
 will be unfortunate for this republic, as it appears to me they are not 
 ready to enter into a conflict on the sea, for which I believe the Chilians 
 are better prepared. 
 I am, &c, 
 
 RICHARD GIBBS. 
 
 No. 153. 
 
 Mr. Gibbs to Mr. JEvarts. 
 
 No. 326.J Legation of the United States of America, 
 
 Lima, Peru, April 2, 1879. (Received April 28.) 
 
 Sir: Referring to dispatch No. 323, of 26th ultimo, as I expected, 
 Chili has declared war. This forenoon several commercial houses and 
 various persons received telegrams from Valparaiso stating that war 
 had been declared. This news I suppose has been forwarded already from 
 Valparaiso by telegraph to the Department. 
 
 The news has been received with little excitement, as it was expected 
 by many. It has disturbed financial affairs, exchange being nominal. 
 American gold is held at 200 per cent, premium and Peruvian silver 130. 
 
 I think this war will affect our commerce, as we have quite a number 
 of vessels loading at the guano and nitrate ports, and I would suggest 
 a larger number of vessels of war on this coast for the protection of our 
 flag. 
 
 Up to the present, news has been received of one skirmish betweeu 
 Bolivians and Chilians, at Calama, on the river Loa, in the interior, near 
 the Peruvian boundary, the Bolivians abandoning the town and retiring 
 to the interior. 
 
 Chilians now occupy the whole Bolivian coast. 
 I am, &c, 
 
 RICHARD GIBBS. 
 
204 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 No. 154. 
 Mr. GiVbs to Mr. Evarts. 
 
 No. 329.] Legation of the United States of America, 
 
 Lima, Peru, April 8, 1879. (Received May 5.) 
 . Sir : On the 5th instant 1 received a circular note from the Peruvian 
 Government, of which the inclosed is a copy; also the number of the 
 official journal referred to, El Peruano, annexed, containing the corre- 
 spondence between the Chilian minister and the bureau of foreign affairs 
 of Peru, relating to the suspension of friendly relations between the two 
 countries and the retirement of the Chilian minister. 
 
 I have not had sufficient time to translate all of the documents, but 
 have a part — the first note of the Chilian minister, of 17th ultimo, ask- 
 ing explanations and demanding declaration of neutrality ; the answer 
 of the Peruvian Government, referring to the mission of Mr. Levalle to 
 Chili ; and I have taken from the South Pacific Times, of Callao, of this 
 date, translation of the final note of the Peruvian Government to Mr. 
 Godoy's, in which he asks for his passport. 
 
 I have answered the circular note of the bureau of foreign affairs, 
 as per inclosed copy. 
 
 In connection with the foregoing, I inclose a copy of the translation, 
 from the South Pacific Times, of the secret treaty between Peru and 
 Bolivia, referred to. 
 I am, &c, 
 
 RICHARD GIBBS. 
 
 [Inclosure 1 in No. 329. — Translation.] 
 
 Mr. Irigoyen to Mr. Gibis. 
 
 Circular.] Bureau op Foreign Affairs, 
 
 Lima, April 5, 1879. 
 
 Sir : By the documents to be found in the inclosed number of the official journal, 
 your excellency will be informed that the Government of Chili, through the diplomatic 
 agent who represented it in Lima, has declared war against Peru. 
 
 My government will in due time, in a document, inform your excellency the manner 
 in which it has proceeded since the initiation of the Chilian-Bolivian question and 
 the motives which have guided it. 
 
 In the mean time the contents of the said documents are submitted to the judgment 
 of your excellency and of the Government of the United States. 
 
 I improve, &c, 
 
 M. IRIGOYEN. 
 
 [Jnclosure 2 in No. 329. — Translation.] 
 
 Mr. Godoy to Mr. Irigoyen. 
 
 Legation of Chili in Peru, 
 
 Lima, March 17, 1879. 
 
 Sir: The bellicose preparations which your excellency's government has com- 
 menced since the outbreak of the Chilian-Bolivian conflict are notorious. 
 
 The army has been considerably increased, and increasing to a number much more 
 than is necessary for ordinary service in time of peace; a large division of it, well 
 armed and abundantly supplied with munition, have been sent near to the territory 
 which will be the ground probably of battle which the Bolivian army dispose to use 
 against that of Chili. 
 
 The vessels of which the Peruvian Navy is composed are preparing and getting 
 ready, as if entering in active service ; speedily increasing their orews, strengthening 
 
AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 205 
 
 their armament, embarking munition stores and combustibles, making frequent and 
 unusual exercises ; new iron-clads have been urgently ordered from Europe to increase 
 the navy, which, during many years of international peace, was considered suffi- 
 ciently powerful ; the ports that defended the port of Callao and shelter the national 
 fleet are mounting guns, recruiting men for service, gathering material, and are ex- 
 ercising diligently their guns, getting ready, in a word, to sustain battle. 
 
 Along with these indications of a bellicose attitude, unexplained by the excitement 
 of any known danger that menaces the honor, the integrity, or interest of the repub- 
 lic, it is to be also noticed, in at least a portion of the people, the sound, spontaneous 
 or suppressed, of sentiments of hostility towards Chili— sentiments bitterly expressed 
 daily, exciting the feelings, aggravating passions, and even clamoring openly for war ; 
 the Peruvian press nearly unanimously so ; and what shows, too, feeling, was a popu- 
 lar meeting yesterday, that unmolested passed through the streets of the city to the 
 Bolivian legation, exchanging sentiments of deep sympathy for Bolivia and hate and 
 war against Chili. 
 
 And to such violent motives of inquietude and danger for those whom in Chili, as 
 others in Peru, who have dedicated their sineerest efforts to the conservation of peace 
 and the unaltered friendship between both states, it is necessary to add another of 
 extreme gravity — the conviction not denied authoritatively by any person up to the 
 present, which, in either country exists, that Peru is formally compromised to make 
 common cause with Bolivia against Chili in virtue of a secret alliance offensive and 
 defensive. 
 
 In view of this state of affairs, Chili, that has not in its international relations ceased 
 to give for as many years as it ha9 autonomous existence undoubted proof of its 
 love, peace, that no effort within reach of its will and compatible with its honor has 
 ever been omitted to preserve perfect harmony with other nations, and to create the 
 sympathies of those who specially have the same origin and nearly common destiny, 
 who, if to-day, has broken its relations of friendship with one of these, and disposed to 
 avail the decision of the controversy by battle, it is because to such extreme it has 
 been dragged by the Government of Bolivia, daringly breaking a solemn treaty, op- 
 posing obstinate resistance to all means of a friendly compromise, ordering arbitrary 
 proceedings as the ultimate answer to the pacific and benevolent invitations that up 
 to the last moment were made. Chili, whose armies twice passed the limits of its 
 frontiers, because it came under allied banners to shed its blood for the redemption 
 of Peru; Chili, who desires to increase and strengthen the bands of friendship, of 
 esteem, and of common interest that binds it to this republic as sincere, as well proved, 
 has cause in the defense of its rights to be preoccupied in the attitude that reveals 
 the existence of which there is no doubt of the secret alliance with Bolivia, the hostile 
 demonstrations without guise of a portion of the people, and the warlike preparations 
 on the part of tbe government. 
 
 I believe it proper to make it clearly understood the action in respect to the Gov- 
 ernment of Bolivia to ask seriously if the government of your excellency has the in- 
 tentions which duty imposes of remaining neutral in the face of the acts which are and 
 may take place in Chili, defending with arms the reoccupation of the territory of the 
 coast south of the 28th degree of latitude. 
 
 I await with confidence that your excellency's government giving proofs that to 
 Peru it is not indifferent, the traditional friendship with Chili; that for mutual con- 
 venience and the dictates of justice it will not refuse a formal declaration of neutrality, 
 thus clearing away all want of confidence between two nations that should live in per- 
 fect harmony. 
 
 To obtain this declaration my government has given me special orders, to which I 
 will faithfully adhere, praying that your excellency will be pleased to give this subject 
 preference, which in itself is very necessary to calm immediately the injurious effects 
 of the alarm that dominates in all minds. 
 
 I improve this occasion to reiterate, &c, 
 
 JOAQUIN GODOY. 
 
 Mr. Irigoyen to Mr. Godoy. 
 
 Lima, March 21, 1879. 
 
 Sir : I had the honor of receiving the note of the 11th instant, in which your excel- 
 lency, after making various reflections relative to the conflict existing between Chili 
 and Bolivia, terminates, asking through specific orders from your excellency's govern- 
 ment that that of Peru will make a formal declaration of its neutrality in face of the 
 acts that have and may take place between said republics. 
 
 His excellency the chief of the nation, to whom I have given account of said notes, 
 orders me to inform your excellency that Peru, having accredited a special mission to 
 Chili precisely destined to understand with the government of your excellency on all 
 incidents that have happened, or may take place in the future on the coast of Bolivia, 
 
206 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 of which the cabinet at Santiago has not as yet made known, orders have been given 
 to the plenipotentiary who fills the mission, the necessary instructions on the points 
 referred to by your excellency iu said note. 
 I improve this opportunity, &c, 
 
 MANUEL IKIGOTEN. 
 
 [Inclosnre 3 in ~No. 329.] 
 
 fFrom the The South Pacific Times, April 8, 1879.] 
 
 THE RETIREMENT OF THE CHILIAN MINISTER. 
 
 The following is the communication of the Peruvian minister of foreign affairs to 
 Senor Godoy, the late Chilian minister in Lima, in reply to the latter gentleman's 
 letter asking for his passport : 
 
 [Translation.] 
 
 Ministry of Foreign Affairs, 
 
 Lima, April 4, 1879. 
 
 Theundersigned, ministerof foreign affairs forthe Republic of Peru, hadthe honor of 
 receiving yesterday, at 1.30 p. m., the note of the same date which his excellency the 
 envoy extraordinary and minister plenipotentiary of Chili was pleased to address to 
 him, announcing in the name of his government the rupture of the good relations be- 
 tween Chili and Peru, and the termination of his diplomatic mission, and requesting, 
 in consequence, that his passport be handed him. 
 
 The very grave importance of the said document makes it the duty of the under- 
 signed to examine the reasons therein set forth, in support of such a transcendental 
 determination of the Chilian Government, and accordingly he here commences to do 
 so, beginning by assuring your excellency that the charges brought against this gov- 
 ernment on account of the manifestations that the Peruvian people have thought fit 
 to make concerning the Chilian-Bolivian war, through the medium of the press and 
 by means of popular meetings, totally disappear before the consideration that they 
 have been made in the exercise of a right sanctioned by the law, and also that they 
 have originated in the attitude of the Chilian press and people, which, since the com- 
 mencement of the war, forgetting that the question was with that government, have 
 busied themselves with marked satisfaction in calumniating Peru and its government, 
 and in rousing up against them the worst and lowest sentiments of the masses, one of 
 the numerous results of such a line of conduct having been the outrages committed in 
 Valparaiso and Antofagasta on the consulates of this republic. The press of this 
 country, on the other hand, has never assumed the tone and tendencies of that of 
 Chili ; neither have the popular meetings in Lima and in other places ceased for a 
 single moment to be other that calm and irreproachable gatherings, nor have the au- 
 thorities once relaxed their diligence in taking measures, although they knew that 
 such were unnecessary, to prevent the least possible chance of any offense being given 
 to the representatives of Chili, as your excellency is aware. 
 
 And having made these indispensable observations on what your excellency says 
 in the note on these subjects, the undersigned now proceeds to take into serious con- 
 sideration the points of real importance in the same document. 
 
 Your excellency states that the treaty of alliance existing between Peru and Bolivia, 
 and which all the precautions taken have failed to keep secret, formally bound the 
 first named country, in the event of such a war arising as that between Bolivia and 
 Chili to-day, to become the enemy of Chili and to cause the damage of that country 
 by the aid of its navy, army, and treasure. 
 
 The undersigned is ignorant how your excellency can make such an asseveration, 
 knowing, as you do, since the middle of March last, the general and defensive .charac- 
 ter of the treaty in question, as also the obligation it imposes upon both the contract- 
 ing parties to employ with preference every conciliatory measure possible to avoid a 
 ruptuTe, and the right that each had reserved, of deciding whether theoffense offered 
 to the other was such as to warrant the bringing into effect of the treaty. Your 
 excellency was first assured of this by his excellency the President of the republic, 
 and subsequently by the undersigned, and almost at the same time the government of 
 Santiago must have received the same assurance direct from the plenipotentiary, Senor 
 Lavalle, an assurance sufficiently powerful to cause Chili to rightly estimate the spirit 
 of conciliation and peculiar deference shown by Peru, since, although authorized to 
 present itself as the ally of Bolivia from the first day on which the government of 
 your excellency occupied with its troops the Bolivian coast, it deferred putting into 
 execution of the treaty of alliance, endeavoring without ceasing and without omit- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 207 
 
 ting any proper means to bring about an arrangement which, without the necessity of 
 appealing to the said treaty, should do away with the possibility of a war between 
 three republics so obviously intended to live perpetually in perfect harmony with one 
 another. 
 
 The government of your excellency appears, nevertheless, not to have given credit 
 to such explicit and frank assurances, and shows itself to be deeply offended by the 
 existence of an alliance not celebrated to its damage nor harm, and which it has been 
 in its power to leave without effect, and of the precise wording of which, if your excel- 
 lency has not been informed, as you request to be, it has merely been because inasmuch 
 as one of the clauses stipulates for reserve until both the contracting parties should 
 deem it necessary and agree to it in due form, the government of the undersigned was 
 nnable to act on its own decision. 
 
 Treaties of the character and tendency of the one in question are perfectly allowable 
 as a means of cementing closer the relations of two states with one another, particu- 
 larly when these are situated as are Peru and Bolivia, and no nation has the right of 
 taking offense at their existence. 
 
 Under no pretence, therefore, is it just that the Chilian Government should accuse 
 Peru of having taken a measure of preconceived hostility in celebrating a treaty 
 which can only affect that government, should it attack, as it has done, the clearest 
 aud most vital rights of one of the contracting parties. 
 
 Neither can Chili be surprised nor complain because Peru has made a defensive 
 alliance with Bolivia, since Chili herself more than once has striven to effect the same 
 thing, and not in the inoffensive and abstract manner in which Peru has done it, but, 
 with the express object, to which I abstain from applying the true name, of acquir- 
 ing that portion of the Bolivian coast of which it has now forcibly possessed itself, 
 under the pretext of recovering what was formerly its own, pronjising in return to 
 aid Bolivia with its ships, armies, and treasures in the rash attempt to dispossess Peru 
 of Iquique and Arica as far as the morro of Sama. Chili also, in the year 1864, with 
 hostile intentions towards Peru, solicited the alliance of Ecuador, and at various 
 periods and with repeated instances that of a nation as powerful as she is wise and 
 prudent. 
 
 Nevertheless the most perfect harmony existed between Peru and Chili, whilst these 
 secret negotiations, which time has disclosed and proved, were going on. 
 
 The assertion made by your excellency, to the effect that the government of the 
 undersigned has commenced to give effect to the said treaty of defensive alliance, by 
 directly, though secretely, providing the Government of Bolivia with arms and muni- 
 tions of war, is completely void of foundation , and is offensive to the proved loyalty 
 of Peru, and accordingly it is the obligation of the undersigned to state so. 
 
 Another portion of the note of the Chilian miuister which the undersigned considers 
 it his duty to elucidate is that which refers to the treatment to which your govern- 
 ment thought proper to subject the communication of your excellency of the 17th of 
 March last, wherein, after making identical accusations to those contained in the pres- 
 ent note, Peru was requested to declare its neutrality. 
 
 Your excellency was duly advised by the communication which the undersigned ad- 
 dressed to you on the 21st of the same month, and that the Government of Peru having 
 appointed a special mission to treat directly with the cabinet of Santiago, about every- 
 thing relating to the Chilian-Bolivian war, its members would be duly instructed as 
 to all the matters referred to in the said communication of your excellency. 
 
 The Government of Peru, therefore, did not refuse to furnish the required explana- 
 tions, but confined itself, in accordance with the usual observance of diplomacy, to 
 doing same through the medium of its plenipotentiary ad hoc, to which end it re- 
 mitted him on the 22d of the said month, that is to say, on the following day to that 
 on which the reply mentioned was addressed to your excellency, the necessary instruc- 
 tions, one of which ordered him to forward to His Excellency Senor Fierro a copy of 
 the note containing them. 
 
 The undersigned is convinced that the explanations which Senor Lavalle was in- 
 structed to give were capable of inducing the Chilian Government to take a more tran- 
 quil view of the true motives that have guided the conduct of Peru. 
 
 Unfortunately, and when the latest communications from Senor Lavalle, which came 
 to hand the day before yesterday, encouraged the hope that the means of arriving at 
 a satisfactory solution of the matter were not yet all exhausted, other counsels have 
 evidently been received aud acted upon by the government of your excellency, which 
 has not even seen fit to wait the short period necessary to receive the said explanations. 
 
 The note of His Excellency Senor Godoy concludes in saying that Peru has as- 
 sumed the character of a belligerent, and that, it being incompatible with the dig- 
 nity of Chili to maintain longer the legation accredited here, he announces as at an 
 end his mission of peace, and throwing all the responsibility of this determination on 
 the Government of Peru, which has made it inevitable, he asks for his passports in 
 order to leave the country at as early a date as possible. 
 
208 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 The Government of Pern, -which has loyally done its best to avoid this extremity; 
 -which, if it celebrated a treaty of alliance with Bolivia in 1873, could not foresee that 
 the Chilian Government would give cause to make that treaty effective against itself; 
 ■which, if it has made certain warlike preparations, has given them no other shape 
 than the most insignificant form of precaution that the fears for its own safety called 
 for, fears too well founded, unfortunately, as proved to-day ; the Peruvian Government, 
 in fine, which up to the last moment has done everything to avoid war, acknowledges 
 the notification of the termination of the mission of peace of his excellency Sefior 
 Godoy. 
 
 The public conscience of every nation which has already published its irrevocable 
 judgment, condemning the violations of the law of nations committed by Chili in 
 causing the dismemberment of the territory of an American nation, will, it is to be 
 hoped, show itself propitious to Peru in the war declared against her. Above all, the 
 entire nation will duly support its government. 
 
 The undersigned concludes this communication by remitting to his excellency Sefior 
 Godoy the passport asked for, repeating once more, as he has the honor to here do, 
 the sentiments with which the subscribes himself, your excellency's most obedient 
 servant, 
 
 MANUEL IRIGOYEN. 
 
 [Inclosure 4 in No. 329.1 
 
 Mr. Gibi8 to Mr. Irigoyen. 
 
 No. 108.] Legation of the United States of America, 
 
 Lima, April 7, 1879. 
 
 I have the honor to acknowledge the receipt of your excellency's circular note of 
 5th instant, with an inclosed copy of the official journal containing the correspondence 
 with the late minister of Chili, at this capita], in which that country declares war 
 against Peru. 
 
 Your excellency has been pleased to state that in due time the Government of Pern 
 will make an exposition of the conduct observed by it since the initiation of the 
 Chilian-Bolivian question, and the motive that has guided it; in the meantime, the 
 said diplomatic correspondence is submitted to me to be forwarded to my govern- 
 ment, so that it may receive due appreciation. 
 
 I have to inform your excellency that I greatly regret the occasion that gave cause 
 for the communication, and I am assured that my government will receive the in- 
 formation of this conflict between sister republics with unfeigned sorrow and deep 
 feeling. 
 
 I improve, &c, 
 
 RICHARD GIBBS. 
 
 [Inclosure 5 in Ho. 329.1 
 
 [From the South Pacific Times, Tuesday, April 8, 1879.] 
 
 THE SECRET TREATY BETWEEN PERU AND BOLIVIA. 
 
 The Peruvian minister of foreign affairs, Sefior Manuel Irigoyen, and the envoy ex- 
 traordinary and minister plenipotentiary of Bolivia, Sefior Serapio Reyes Ortiz, having 
 agreed to publish the secret treaty of defensive alliance celebrated between their 
 respective governments on the 6th of February, 1673, in accordance with the terms of 
 the additional article appended to the said treaty, the same has now appeared in print 
 and the following is a translation : 
 
 [Translation.] 
 
 Adolfo Ballivian, Constitutional President of the Republic of Bolivia : 
 
 Inasmuch as, between the Republics of Bolivia and Peru, represented by their respect- 
 ive plenipotentiaries, there has been celebrated in the city of Lima on the 6th day of 
 the month of February of the present year, the following : 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 200 
 
 TREATY OF DEFENSIVE ALLIANCE. 
 
 The Republics of Bolivia and Peru, desirous to cement in a solemn manner the bonds 
 that unite them, to increase thus their strength and mutually guarantee one another 
 certain rights, have drawn up the present treaty of defensive alliance ; to which end, 
 the President of Bolivia has invested with ample powers to conduct the said negotia- 
 tion, Juan de la Cruz Benevente, envoy extraordinary and minister plenipotentiary in 
 Pern, and the President of Peru has conferred the same upon Jos6 de la RivaAguero, 
 minister of foreign aft'airs, who have agreed upon the following stipulations : 
 
 Article I. The contracting parties will unite and join to mutually guarantee their 
 independence, sovereignty, and the integrity of their respective territory, binding 
 themselves by the terms of the present treaty to defend themselves against all foreign 
 aggressions, whether proceeding from another or other independent state, or from a 
 force without a flag, owing obedience to no recognized power. 
 
 Art. II. The alliance will become effective to protect the rights expressed in the 
 preceding article aud particularly in cases of offense consisting : 
 
 1st. In acts tending to deprive either of the contracting parties of a portion of their 
 territory, in order to assume dominion over it; or to yield, it to another power. 
 
 2d. In acts tending to oblige either of the contracting parties to submit to a pro- 
 tectorate, sale or cession of territory, or to establish over it any superiority, right, or 
 pre-eminence whatsoever, which may injure or offend the full and ample exercise of its 
 sovereignty and independence. 
 
 3d. In acts tending to do away with or change the form of government, the politi- 
 cal constitution or the laws that the contracting parties have made; or may in future 
 make, in the exercise of the sovereignty. 
 
 Art. III. As both the contracting parties admit that every legitimate act of alliance 
 is based upon justice, for each of them respectively, the right is established of deciding 
 whether the offense inferred to the other is comprised amongst those mentioned in 
 the preceding article. 
 
 Art. IV. The casus fwderis once declared, the contracting parties bind themselves 
 to cease immediately their relations with the offending state; to hand their passports 
 to its diplomatic ministers ; to cancel the appointments of the consular agents ; to for- 
 bid the importation of its natural and industrial products, and to close their ports 
 against its ships. 
 
 Art. V. The same parties shall also appoint plenipotentiaries to adjust by protocol 
 the arrangements necessary to determine upon the subsidies, the contingents of either 
 sea or land forces, or the aid of whatever kind that must be lent to the republic which 
 has received the offense; the manner in which the forces are to act and the assistance 
 to be lent, and whatever else may be convenient for the defense. The meeting of the 
 plenipotentiaries will take place in the place assigned by the offended party for that 
 purpose. 
 
 Art. VI. The contracting parties bind themselves to provide the one offended with 
 the means of defense of which each may consider it can dispose, though the arrange- 
 ments pointed out in the preceding article may not have taken place, provided that 
 they consider the case urgent. 
 
 Art. VII. The casus fwderis once declared, the offended party will not be able to 
 make arrangements for peace, truce, or armistice without the concurrence of the ally 
 who may have taken part in the war. 
 
 Art. VIII. The contracting parties bind themselves in addition: 
 
 1st. To employ with preference, whenever it is possible, every conciliatory measure 
 in order to avoid a rupture or to put an end to the war, holding as the most effective 
 the arbitration of a third power. 
 
 2d. Not to admit nor accept from any nation or government protectorate or superi- 
 ority that may injure and lessen their independence or sovereignty, and not to yield 
 up nor transfer in favor of any nation or government any part whatsoever of their ter- 
 ritories, excepting in the cases of better demarkation of limits. 
 
 3d. Not to celebrate treaties of limits, or of other territorial arrangements, without 
 the other contracting party first knowing of the same. 
 
 Art. IX. The stipulations of the present treaty do not extend to acts performed by 
 political parties or the result of internal disturbance independent of the intervention 
 of foreign governments; inasmuch as the principal object of the present treaty of 
 alliance being the mutual guarantee of the sovereign rights of both nations, none of 
 its clauses must be interpreted in opposition to its primary end. 
 
 Art. X. The contracting parties will, separately or collectively, when by subse- 
 quent agreement they may consider it convenient, solicit the adhesion of another or 
 other American states to the present treaty of defensive alliance. 
 
 Art. XL The present treaty will be exchanged in Lima or in La Paz, as soon as it 
 is legally perfected, and will remain in full force on the twentieth day after said ex- 
 change takes place. Its duration shall be for an indefinite period, each party reserving 
 
 S. Ex. 79 li 
 
210 AFFAIRS IN CHILI, PERU, AND BOUVIA. 
 
 to itself the right of considering it as no longer existing when such shall he thought 
 convenient. 
 
 In such a case the party desiring to annul the treaty must notify the other party of 
 same, and the treaty will no longer have effect on the elapse of forty months from such 
 notification. 
 
 In testimony whereof the respective plenipotentiaries signed it in duplicate and 
 sealed it with their private seals. 
 
 Done in Lima on the sixth day of the month of February, one thousand eight hun- 
 dred and seventy- three. 
 
 JUAN DE LA CRU BENAVENTE. 
 J. DE LA R1VA AGUERO. 
 
 Here follows an additional article which provides that the treaty shall be kept secret 
 as long as both parties by common accord shall not deem its publication necessary. 
 
 The treaty having received the approbation of the extraordinary assembly of Bolivia 
 and been confirmed and ratified by the then President of that country, Sefior Adolfo 
 Ballivian, was formally exchanged between the two parties, represented by their 
 respective ministers, in the city of La Paz, on the 16th day of June, 1873. 
 
 The Peruvian Congress gave its approbation to the treaty on the 22d of April of the 
 same year, and notified Serior Pardo, at the time President of Peru, of same on the 
 30th of the same month and year, who thereupon ratified it. 
 
 No. 155. 
 
 Mr. Gibbs to Mr. Starts. 
 
 3sTo. 330.] Legation of the United States of Amekica, 
 
 Lima, Peru, April 9, 1879. (Eeceived May 5.) 
 
 Sir : Eeferriug to dispatch No. 326, of 2d instant, informing the De- 
 partment of the declarations of war by Chili against this country, I will 
 now relate what has taken place since that date. 
 
 On the 5th instant telegrams were received of the arrival of the 
 Chilian fleet off the port of Iquique, the great nitrate deposit of Peru. 
 Great excitement took place, as it was known that a division of the 
 Peruvian army had lately landed there, but the place is defenseless 
 against iron-clads. The Chilian admiral gave 24 hours' notice, but up 
 to the present no bombardment has taken place. 
 
 Private commercial dispatches have been received stating that the 
 Chilian commander gave ten days' notice for all neutral vessels to leave 
 and suspending all loading and discharging. I have information of 
 four American vessels being there in port. 
 
 More Peruvian troops have been sent, which landed at Pisagua, a 
 few miles north of Iquique; also other forces, with batteries, have ar- 
 rived at Arica still further north. 
 
 Great enthusiasm has been shown by all classes and nationalities in 
 Lima. 
 
 Subscriptions in large amounts coming from every part, and large 
 amounts subscribed by wealthy men and associations to be made 
 monthly during the war. 
 
 On the reception of the news of the blockade of Iquique, the Chilian 
 minister, Mr. Godoy, who had closed his legation and deposited the 
 archives with the British minister, with whom he was staying, for 
 reasons unexplained left on the night of the 5th instant, and took 
 refuge aboard of the United States steamer Lackawanna, where he still 
 remains, but I understand will go to Panama to-morrow. 
 
 I received a cablegram from Consul Merriam at Iquique to-day at 3 
 p. m., stating that the Pensacola, Admiral Eodgers, had arrived there, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 211 
 
 of which I informed Captain Chandler, of the Lackawanna, by telegraph 
 to Callao. 
 
 The iron-plated vessels and monitors of the Peruvian navy are still at 
 Callao, but will be ready in a few days. Two of their wooden ships, 
 Union and Pilcomayo, have left with extra crews on a secret mission, 
 I am, &c, 
 
 RICHARD GIBBS. 
 
 No. 15G. 
 
 Mr. JEvarts to Mr. Christiancy. 
 
 No. 4.J Department op State, 
 
 Washington, April 9, 1879. 
 
 Sir : Mr. Gibbs's dispatch No. 317, in relation to the approaching con- 
 flict between Chili and Bolivia and the attitude of Peru with respect 
 thereto, has been read with interest. No explanation was necessary 
 on Mr. Gibbs's part for advising the Department of whatever might come 
 to his knowledge respecting the warlike situation of the neighboring 
 republics, even though that to which he was accredited was not an ac- 
 tual party to the dispute. 
 
 The position of Peru in relation to the struggle now reported as hav- 
 ing been inaugurated is one of considerable interest. The latest news 
 represents that the Peruvian Government has decided to maintain an 
 attitude of strict neutrality. It is sincerely hoped that this decision will 
 be successfully observed, for, besides restricting the arena of the deplor- 
 able strife between peoples of one blood, the pacific course of Peru makes 
 her a notable example, and it may be a directly potential agent in the 
 interest of the speedy restoration of peace, so earnestly to be hoped for. 
 I am, &c, 
 
 WM. M. EVARTS. 
 
 No. 157. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 6.] Legation of the United States, 
 
 Lima, Peru, April 29, 1879. (Received May 27.) 
 
 Sir : For your information as to the causes and objects of the exist- 
 ing war between Chili and Peru, I transmit herewith certain papers 
 bearing upon the question. 
 
 No important intelligence iu reference to the military operations has 
 been received since my former dispatches. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inelosure 1 in No. 6. — Translation.] 
 
 THE ALLIANCE WITH BOLIVIA. 
 [South Pacific Times, Saturday, April 26, 1879.] 
 The following decree has been issued : 
 Mariano I. Prado, President of the Republic, considering : 
 
 First. That by the treaty of the 6th of February, 1873, the Republics of Peru and 
 Bolivia are solemnly bound to mutually guarantee one another their independence and 
 sovereignty, and also the integrity of their respective territories. 
 Secondly, hat the insult offered by Chili to Bolivia by the occupation of the 23d 
 
212 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 and 24th degrees of that country's sea-coast, under the pretense of revindicating their 
 own, is equivalent to an attack on the said rights of Bolivia, and is expressly pointed 
 out in the first portion of the second article of the treaty referred to as the chief and 
 principal cause why the alliance should come into force. 
 
 Thirdly. That the envoy extraordinary and minister plenipotentiary of Bolivia, on 
 a, special mission, has requested, by order of his government, the declaration of the 
 casus foederis, and the consequent bringing into effect of the said treaty ; an d that Peru 
 has endeavored by every conciliatory measure possible to keep the peace between the 
 republics in question, first interposing her good offices and afterwards offering her 
 mediation in due form, whose only result has been the declaration of war made by 
 the Government of Chili against Peru : 
 
 I decree — 
 
 The Republic of Peru decrees the casus foederis mentioned in the treaty of the 6th of 
 February, 1873, with Bolivia has arrived ; and consequently the time has come when 
 the alliance must come into effect and all its stipulations. 
 
 The respective ministers of state are encharged with the issuing of the necessary 
 orders for the faithful and exact fulfillment of this decree, and of makingjit known and 
 published. 
 
 Given in the Government House of Lima this 6th dav of April, 1879. 
 
 MARIANO I. PRADO. 
 
 Manuel Iuigoyex. 
 
 [Inclosure 2 in No. 6.] 
 
 Kotefrom the Chilian Government to the Peruvian minister, granting him his passport. 
 
 Ministry of Foreign Affairs, 
 
 Santiago, April 2, 1879. 
 
 Sir: The reply given to the Chilian envoy in Lima a few days ago by your govern- 
 ment, that it could not observe neutrality in our present conflict with Bolivia because 
 there existed a treaty of defensive alliance between them — which is the same that 
 you read to me in the conference held on the 31st ultimo — has forced this government 
 to the conclusion that it is impossible to maintain friendly relations with Peru. 
 
 Considering the assurance you gave me in the first conference we held on the 17th 
 ultimo, in reply to my interrogation whether such treaty existed or no, that you had 
 no knowledge of it; that yon believed it had no existence, and that it could not have 
 been approved by the Peruvian Congress of 1873 (when it was said to have been ap- 
 proved), and much less in the succeeding years, when you formed part of the diplo- 
 matic commission; considering this assurance, I repeat, my government sees that 
 yours, as well as yourself, in denying this treaty, have placed yourselves in an ex- 
 ceedingly irregular position. 
 
 My government is surprised to learn that that of Peru projected and signed that 
 treaty at the time that it professed sentiments of cordial friendship towards Chili. 
 
 To this secret transaction, in which the strictest reserve was stipulated, the Govern- 
 ment of Chili replies with the fullest frankness, declaring that its relations with that 
 of Peru are broken, and that it considers it belligerent, in virtue of the authority to 
 that effect received to-day from the high authorities of the state. 
 
 In forwarding you your passports, I have to assure you that the proper orders have 
 been issued, in order that you and the personnel of the permanent legation of Peru may 
 receive all due consideration and facility in returning to your country. 
 
 With sentiments of distinguished consideration, &c, 
 
 ALEJANDRO FIERRO. 
 
 [Inclosure 3 in No. 6.] 
 OPENING OF CONGRESS. 
 
 Message of the President of tlie republic. 
 
 Shortly after two o'clock on the afternoon of the 24th, Congress was formally opened. 
 The following is a translation of the message of his excellency the President of the 
 republic to the special Congress of 1879. 
 
 Honorable Representatives : 
 
 At a time when the sentiment of confraternity seemed to be most deeply rooted in 
 the -heart of America, the fruit not only of the identity of origin of its nations, and of 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 213 
 
 the glorious traditions which form their modem history, but also the offspring of mu- 
 tual convenience, very grave and important events, brought about most abruptly 
 by the Chilian Government, have startled our repose. 
 
 After the unanimous cry of indignation uttered throughout the entire continent, 
 when the agents of the Spanish Government attempted to revive the deeds of the time 
 of its famous conquests, after the outburst of brotherly feeling which united all the 
 South American republics to one another to protest solemnly against acts odious to 
 all laws which civilized nations have laid down as rules of government, it appeared 
 impossible that those very nations should have recourse to arms without previously 
 employing all rational methods of conciliation, without observing the forms which 
 give to war the character of legality, of which the violent aggressions and the hostil- 
 ities commenced before the enemy, is either notified or prepared to repulse them, are 
 destitute. Such a course of conduct which outrages the precepts of morality by which 
 governments should be guided, and ruins nations by exciting in their midst, under a 
 cloak of patriotism, passionate feelings of hate and vengeance not certainly in accord- 
 ance with modern civilization nor with the respect ever due to any people, whatever 
 their class and status, nor is it such as should be adopted by generous nations who con- 
 fine their destinies to the manifest justice of their cause rather than to the employment 
 of brute force. 
 
 Peru and her government were rejoicing the more to see the nations of this conti- 
 nent cementing closer, day by day, the bonds by which they are united by nature, 
 since she observed the willingness with which they all received and realized the idea 
 of assimilating their laws, with the object of giving unity and conformity to their 
 interests, moral as well as material; and doing away with unimportant matters the 
 odious distinction born of the word " foreign," a word which should be banished from 
 amongst the citizens of South America. To these useful and important labors would 
 doubtless have succeeded others, tending to produce in as great a degree as the pecu- 
 liar conditions of each State would permit of, the same benfits that were looked for 
 from the unity of the principles of internal law. 
 
 Peru has so far entertained these laudable desires that, whenever she has had cause 
 to fear the least interruption taking place in the peaceful relations of the other re- 
 publics, she has hastened to interpose her good offices towards advocating the main- 
 tenance of peace and the adoption of whatever measures that were conducive to that 
 end. 
 
 The Peruvian Government has always possessed the profound conviction that the 
 disasters which a state of war brings on in all the nations of the universe, and es- 
 pecially in those newly formed, which need to employ all their vigor, means, and 
 activity in consolidating their institutions and in acquiring that moral force which 
 places nations in the first rank of their fellows, giving them prestige and glory, can 
 alone be acceptable when the independence of States is menaced or their dearest in- 
 terests involved. 
 
 If unfortunately the heroic deeds of the days of independence, and after them the 
 different principles which have been the cause of political events more or less turbu- 
 lent, have delayed the prosecution of those ideas, there exists without doubt an in- 
 explicable virility which, when exercised iu the cause of peace, opens the door to the 
 development of all the elements of rational prosperity. 
 
 The actual contest between Bolivia, Peru, and Chili, the preconceived work of the 
 cabinet of Santiago, has not failed, therefore, to affect most deeply the minds of the 
 nations of this continent ; and all the more so, since all nations, with that providential 
 intuition with which they are gifted, see, or rather feel, that the occupation of Bo- 
 livian territory by Chilian forces is a positive usurpation, taking into consideration 
 the attendant circumstances, and is an act of a nature opposed and repugnant to the 
 commonest dogmas of law and justice, an I also that the war declared against Peru, 
 on account of suppositions more or less whimsical, has not in its favor a single argu- 
 ment to support it. 
 
 In truth, neither the ostensible reason of the measures taken, nor the questions at 
 issue, authorized an attack which is as unjustifiable as it is odious. 
 
 To revindicate one's right to territory which has always been in possession of an- 
 other country, and recognized as such by solemn treaties, has no other meaning than 
 the setting about a conquest, taking advantage of the debility of the offended country. 
 The abrupt and motiveless declaration of war against Peru is nothing less than a pre- 
 conceived plan, whose aim is to take possession of a long-coveted piece of territory. 
 
 The conflict arisen so suddenly between the Republics of Bolivia and Chili gave rise 
 to the necessity of convoking you to special sessions, in order that, duly appreciating 
 the importance of the causes which induce the same and the tendencies they display, 
 you may determine upon the line of conduct which the government should pursue un- 
 der such difficult circumstances ; and, taking in the true situation in which we are 
 placed, that you may adopt such measures as you may deem convenient. 
 
 Meanwhile, without the remotest imagination that a declaration of war would be 
 the reply to our generous mediation for the maintenance of peace between the eon- 
 
214 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 tending parties, the government, interpreting the sentiments of the country as ex- 
 pressed in all classes of society, and ardently desirous of preventing a bloody strife 
 between two sister republics, hastened to put'its good offices at the disposition of the 
 cabinet of Santiago ; our charge^ d'affaires having attained a promise from the Presi- 
 dent of the republic that no definite steps would be taken without his knowledge. 
 
 Notwithstanding this, the Chilian Government caused its military forces to occupy 
 the port of Antofagasta, dislodging the Bolivian authorities and hoisting their own 
 flag over its buildings, with the intent to "revindicate" that territory. 
 
 The Chilian press, revealing the hidden views of the government, allowed it to be 
 understood from the very first that the occupation of Antofagasta was the prelim- 
 inary step to making war against Peru. The violence of their warlike proceedings ; 
 the secrecy observed with our charge d'affaires, notwithstanding the promise to hide 
 none of their proceedings from him; the frequent and offensive manifestations of the 
 popular assemblies, tolerated in spite of the good relations then existing between the 
 two countries ; the numerous forces sent to Antofagasta; the concentration of the 
 Chilian squadron in that port, and the works of fortification commenced there, allowed 
 it to be clearly seen that the operations were in reality directed against Peru, since 
 the hostilities with Bolivia, a country not possessing a navy, did not call for the ne- 
 cessity of maintaining a fleet and army in Antofagasta, nor for the erection of harbor 
 fortifications there. 
 
 Notwithstanding the significance of all these proceedings, the Peruvian Government, 
 with a lively interest in the maintenance of peace between the South American Repub- 
 lics, and faithful to its traditions, again offered its mediation and appointed a minister 
 plenipotentiary near the cabinet of Santiago, in order that the two republics, yielding 
 their mutual pretensions, might submit the settlement of their differences to arbitra- 
 tion, in accordance with the terms of the treaty entered into between them in 1874. 
 The negotiations, undertaken in tbe best faith by our plenipotentiary, Don Jos6 Anto- 
 nio Lavalle, far from persuading the Chilian Government to desist from its views, 
 caused it to abruptly break off its relations with us, uuder various frivolous pretexts, 
 to declare against us a war completely unjustifiable from all points of view, and to set. 
 about immediately instituting every species of hostilities, blockading, bombarding, and 
 burning our defenseless ports in the south. 
 
 Our military preparations, the dispatching of Peruvian troops to the department of 
 Tarapacil, and the existence of a secret treaty of defensive alliance, are the motives 
 which have contributed to apparently make Chili doubt our desires for peace, and to 
 cause her to look upon us as belligerents in her quarrel with Bolivia. 
 
 The falseness and inefficiency of such motives are apparent to all. Immediately upon 
 difficulties arising between Chili and the Argentine provinces, my government, faith- 
 ful to the duties which the love of peace and the desire for the progress and prosperity 
 of the South American nations impose upon it, proffered its good services, in order that 
 both countries should settle their dispute in an amicable manner, and avoid the mis- 
 fortunes attendant upon a war, and having acted in the same way as soon as it knew 
 of the question with Bolivia, Chili could not doubt our good faith, and still less so, 
 since I myself, then a friend of Chili — I, who, in my pnblic or private capacity, have 
 never practiced duplicity either with men or nations — had the honor of being at the 
 head of the Government of Peru, directing the diplomatic negotiations. 
 
 The illegal act of Chili in invading Bolivia, and taking possession of territory which 
 did not belong to her, and the accumulation of war materials on a large scale in Anto- 
 fagasta, suggested the entertainment of hostile views against Peru, and prudence 
 counseled us to put ourselves in a position to defend, if necessary, the honor of the 
 nation and the integrity of its territory. This circumstance satisfactorily explains our 
 military preparations and the forwarding of troops to the southern frontier. An armed 
 neutrality has never been a cause of offense to other nations at war with one another. 
 The treaty of defensive alliance entered into with the Republic of Bolivia could have 
 been no motive for supposing that the Government of Peru was acting with bad faith 
 towards Chili ; since that treaty, which might well have been subscribed to by Chili 
 herself, and whose sole object is to assure the independence, sovereignty, and integrity 
 of the territories of the contracting parties, impose upon Peru the obligation of em- 
 ploying with preference, when feasible, every conciliatory measure possible in order 
 to avoid a rupture or prevent a war, should the rupture have taken place, holding as 
 the most effective of those measures the arbitration of a third power. In fact, the 
 treaty itself, which does not call upon the ally to declare war, justified the good offices 
 of Peru, and was a guarantee for the good faith of her irreproachable conduct. 
 
 Notwithstanding the instances of the plenipotentiaries of Bolivia, my government, 
 faithfully fulfilling the duties which the character of mediator imposed upon it, flatly 
 refused, not only to bring the treaty into effect, but also to supply the arms and other 
 aid which Bolivia asked of it. 
 
 Neither the military preparations which prudence dictated, nor the movements of 
 troops called for amongst other reasons, by the peculiar conditions of the department 
 of Tarapaca; nor the treaty of defensive alliance, whose existence, if it remained offi- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 215 
 
 eially secret in accordance with one of its stipulations, was not unknown to the 
 plenipotentiary Senor Godoy , nor to the members of the Chilian Government ; not one 
 of these circumstances, or all of them combined, are sufficient to excuse the conduct 
 of that nation, nor justify the violent and illegal aggression which has broken off at 
 one blow the relations existing between nations who nave fraternally shared together 
 the benefits of peace, the calamities of war, and the luster of glory. 
 
 The Republic of Chili has declared war against us because the Government of Peru 
 endeavored to prevent that which had arisen between that country and Bolivia ; and 
 Peru has accepted it with the high and generous enthusiasm which characterizes her 
 on great occasions; with the enthusiasm inspired by justice, the precursor of victory. 
 
 The doing away with the old territorial boundaries, in obedience to interested and 
 avaricious motives, is a pretension bordering upon impossibility, because neither Peru 
 nor the other South America States could consent to it without compromising the 
 integrity of their respective territories ; and the force of this consideration manifests 
 clearly that the war declared against us is devoid of political or social motives which 
 can be adduced in its support. 
 
 Since the efforts for the preservation of peace have proved fruitless ; since Chili, 
 who has taken up arms with the sole intent to attack us, going so far as to offer her 
 material and moral aid to the Bolivian commanders in case they should attempt to 
 take possession of the old department of Moqnegua ; since Chili, I repeat, is satisfied 
 with nothing but war with Peru ; since, giving the lie to her boasted good sense, she 
 has madly thrown herself into the fields of battle, Peru will also march to them, as 
 suits her offended dignity and the valor of her army and navy. 
 
 It was sufficient that Chili should proclaim the war, in order that Peru should rise 
 as one man to place at the disposal of the government the lives and fortunes of her 
 sons. Peru is presenting to all civilized nations the most beautiful and touching 
 spectacle of patriotism. If the treasury was empty, her citizens have striven for the 
 honor of refilling it ; if the army and navy were reduced to the limits which the law 
 assigns for a state of peace, to-day all are soldiers, ready to sacrifice themselves on the 
 altar of their country. Peru, face to face with her gratuitous enemy, will avenge the 
 insult so treacherously offered her. 
 
 Legislators : I convoke you to special sessions in order that you may decide upon 
 the conduct which it would have been the duty of the government to observe in view 
 of the war between Bolivia and Chili, but unlooked for events have happened, which 
 simplify your mission. We are at war with Chili, and it is your duty to dictate the 
 measures which you may deem best in order to assure the triumph of our arms, jointly 
 with the honor and glory of the country. 
 
 May Divine Providence assist you in your deliberations. 
 
 The sessions of the special Congress of 1879 are now declared opened. 
 
 A1ARIANO I. PRAEO. 
 
 Lima, April 24, 1879. 
 
 [Inclosure 4 in Ho. 6.J 
 Reply of his excellency Ike President of the Congress, Dr. Jose Antonio Garcia y Garcia. 
 
 Citizen President : It is, perhaps, the first time that the representatives of the 
 nation listen to the authorized voice of the head of the State, under the influence of 
 feelings so opposed and so painful as those which in this solemn moment dominate 
 their spirits. 
 
 The certain knowledge that, along with the entire country, the delegates in parlia- 
 ment possess of the premeditated conduct of Chili in her relations with Peru ; the 
 suspicion and astonishment which the accumulation of hasty and intemperate acts 
 signalizing the policy of that country, in the continuous changes of great American 
 interest, has not failed to awaken in their minds ; and the indignation naturally be- 
 got in upright and high-principled minds by the deliberate transgressions of the rules 
 which serve as law to States, and guarantee, consequently, the maintenance of justice 
 as the common and necessary principle to guide their mutual relations — in a word, 
 every one of the acts practiced, which, in the order of principles and deeds, has 
 wounded the sentiment of national dignity and profaned the rigid dictates of law and 
 reason, and whose authenticity and details you have proved with the clearest testi- 
 mony in your important message, could not but call forth in the bosom of the legis- 
 lative chambers the grievous and opposite sentiments of which I have made mention. 
 Once that cruel strife lighted in our spirits, which the sacred Are of patriotism fans, 
 it is doubtless, Citizen President, that it would lead us to the greatest extremes in re- 
 pressing and punishing such unheard-of crimes were another moral influence to pre- 
 dominate in the national Congress other than that which, until now, has served as a 
 sure and certain guide to the government, and which inspires in the entire nation the 
 
216 AFFAIKS IN CHILI, PERU, AND BOLIVIA 
 
 highest sentiments. But it is not so, most excellent sir; in the legislative body, as in 
 the government and the people, the sentiment of justice and their own dignity, the 
 knowledge of their duty, the sacred respect for the rights of others, and an absolute 
 confidence in their power to chastise all rash aggression, as well as the outrageous 
 offenses to the beloved flag of our country, happily rise superior to the bursts of anger 
 and the impatient feeling which, far from denoting strength and reason, betrays de- 
 bility or pitiful irregularities. 
 
 The calm, correct, and dignified exposition which you have given of the historical 
 antecedents of the unjustifiable, and, therefore, ignominious war which Chili has de- 
 clared against Peru, will allow the national assembly to duly appreciate by the light 
 of same, and with the aid of the papers which the minister of foreign affairs will in 
 due time lay before it, the prevision, the correct judgment, and the patriotic zeal dis- 
 played by the executive, as well in the praiseworthy end to avoid the disasters of a 
 war between sister nations and allies of Peru, as to maintain with proper splendor 
 the -principle of good confraternity as the indissoluble link of happy union between 
 the republican States of the New World. 
 
 The same notable document will, I am convinced, convey to the mind of the entire 
 nation, and to the governments not affected by these events, the intimate persuasion 
 that if the efforts of Peru to maintain the peace between Bolivia and Chili have not 
 alone been of no avail, but, what is truly surprising, have been replied to by the most 
 offensive and senseless threats, the work of evil is the exclusive work of Chili and the 
 result of the long-cherished and iniquitous plan to disturb the repose and sully the 
 splendor, not of Bolivia, but of Peru alone, the country which the hand of Providence 
 has seen fit to shower its favors upon, and the growing development of whose riches, 
 knowledge, power, and legitimate influence in the continent of South America Chili 
 has ever desired and to-day strives to arrest. 
 
 Profoundly true are your words, Citizen President, when you state that Peru is offer- 
 ing a most beautiful and touching spectacle to all civilized nations ; for, in reality, 
 most excellent sir, there is nothing greater, more beautiful, orsublime than the resolu- 
 tion and energy with which the Peruvian nation, without excepting the last of her 
 sons, has risen as one man, full of ardor and vigor, to assist the public authorities with 
 their lives and fortunes in the glorious task of saving the honor and dignity of the 
 republic in the fratricidal war to which Chili has provoked her. 
 
 In this redeeming work, in this most noble and patriotic labor, the legislative body, 
 I can declare in their name, most excellent sir, will know how to rise to the height of 
 their mission. Tour suggestions, your proposals, the initiative of the government in 
 one word, as also that of the representatives in all relating to the defense of the coun- 
 try and the triumph of her arms, will find in these chambers a ready acceptance and 
 the solution most favorable to the well-defined interests of our cause. 
 
 Peru, who has fulfilled a noble and disinterested duty towards the people of Bolivia 
 without being wanting in the considerations due to Chili, will also comply with, to 
 her own honor and glory, the obligation which she has imposed upon herself of triumph- 
 ing. Divine Providence, whose aid we invoke with you, Citizen President, ever con- 
 cedes the victory to the cause of justice, which is manifestly our own cause ; we shall 
 conquer, therefore, because our triumph as a necessary law of moral order is plainly 
 the will of that Providence. 
 
 2fO. 158. 
 
 Mr. Christiancy to Mr. Evartn. 
 
 No. 7.] Legation of the United States, 
 
 Lima, Peru, April 29, 1879. (Received May U7.) 
 
 Sir: Ou the 26th instant I signed with the British, French, and Ital- 
 ian ministers, and the German charge' d'affaires, a document addressed 
 to the omcer in command of the Chilian fleet on the Peruvian coast, of 
 which I inclose you a copy. 
 
 The document as at first drawn up and presented to me assumed the 
 truth of the reports contained in the newspapers, in reference to the 
 action of the fleet, and the British minister assured me that the official 
 information he had from the British consuls at the various places along 
 the coast fully justified the statements referred to in the document. But 
 as T had no official information, except from our consul at Iquique, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 217 
 
 which exhibited the transactions there in a somewhat less flagrant light, 
 I declined to join in the document, unless so altered as not to assume or 
 assert the truth of the statements referred to, believing it to be in the 
 interest of humanity, as well as for the interest of our own citizens along 
 the coast who are the great sufferers by the war. And it seemed to me 
 to be wise as a precautionary measure to put our citizens in as favorable 
 a position as possible to claim damages for any violation of neutral 
 rights. 
 
 The truth is, that most of the damages done and likely to be done 
 along the coast in this war will fall upon neutrals, much the larger share 
 of the heavy business in the coast towns being carried on by foreigners. 
 And no nation, as it seems to me, is more interested than our own in 
 maintaining a high standard of neutral rights. 
 
 I am responsible for the assertion in this document of the principle of 
 declaring the duty of belligerents towards neutrals, it having been sug- 
 gested by me and readily approved by all the other ministers signing 
 the document. 
 
 I have. &c, 
 
 I. T. CHEISTIAlSrCY. 
 
 [Iucloaurc in Xo. 7.] 
 
 The ministers of France, United States, England, Italy, and Germany 1o Hear- Admiral 
 ll'illiams Mobolledo, commander-in-chief of the Chilian squadron. 
 
 Admiral : The undersigned, though desirous of preserving the strictest neutrali ty 
 in the war now being carried on between Chili and Peru, consider it also their bounden 
 duty to protect, as far as possible, the interests of the subjects and citizens of their 
 respective countries. 
 
 The undersigned are perfectly aware that neutrals residing in a belligerent country 
 must, to a certain extent, submit to many risks similar to those sustained by the na- 
 tives; but they cannot admit that a belligerent has any right wantonly to destroy the 
 property of neutrals, or to put them in peril of their lives. 
 
 The undersigned would remind your excellency that it is a principle of modern war- 
 fare not to destroy unfortified commercial towns, nor to fire into any peaceful com- 
 munity, without affording neutrals and non-combatants the time necessary to with- 
 draw not only themselves but their personal property out of reach of the fire of the 
 attacking belligerent. 
 
 Should this principle be or have been neglected, the undersigned may add that their 
 respective governments will be entitled to hold the Government of Chili responsi ble for 
 all losses to which their subjects or citizens may have been subjected. 
 
 According to the information we have received, but without wishing to decide as to 
 the exact facts, it would appear that the commander of the Chilian iron-clad, the Admiral 
 Cochrane, in reply to some rifle-shots discharged upon his boats, which were engaged in 
 destroying the property of the inhabitants, suddenly opened fire with shot and shell 
 on the large commercial town of Mollendo, inhabited by thousands of unoffending 
 people, both foreign and Peruvian. 
 
 In Pisagua the course pursued is stated to have been even more regrettable, as, after 
 a skirmish between the Chilian boats engaged in destroying trading launches, and the 
 soldiers on the beach, the Chilian squadron opened fire upon this purely commercial 
 town without any previous notice, and did not cease firing until nine-tenths of the 
 houses were laid in ashes, with immense loss to neutrals, as at least two-thirds of this 
 loss will fall on foreigners. 
 
 It will be the painful duty of the undersigned to draw the attention of their respect- 
 ive governments to these bombardments of unfortified commercial towns, and to the 
 heavy losses thus unnecessarily inflicted on neutrals. 
 
 They consider also that they are but fulfilling a distinct duty in thus drawing your 
 excellency's attention to the opinion they have formed of the proceedings of t he Chilian 
 squadron in Mollendo and Pisagua, and in a lesser degree at Iquique. 
 
 Accept, admiral, the assurance of our high consideration. 
 
 (Signed by the ministers of France, United States, England, Ita'y, and Germany.) 
 
218 AFFAIRS IN CniLT, PERU, AND BOLIVIA. 
 
 No. 159. 
 
 Mr. Christiancy to Mr. JEvarts. 
 
 No. 13. J Legation of the United States, 
 
 Lima, Peru, May 12, 1879. (Received June 9.) 
 
 Sir: I have the honor to acknowledge the receipt of yonr dispatch 
 to me (No. 145, series of dispatches to my predecessor) in reply to that of 
 Mr. Gibbs, No. 317. 
 
 You will have seen by the dispatch of Mr. Gibbs of April 2, Xo. 326, 
 as well as mine since that time, that prior to the date of your dispatch 
 Peru had become a party to the war, Chili having declared war against 
 Peru. 
 
 On looking over the dispatches of my predecessor I find that he had 
 given you a very correct and clear statement of the causes which led to 
 the war. But aside from and back of all avowed causes of hostility be- 
 tween Chili and Peru, it is not difficult to discover a bitter prejudice and 
 traditional animosity, originating with the conquest of Peru and Chili 
 between the Pizzaros and the Almagros, a feud which resulted in the 
 mutual extermination of bpth these families of butcher "conquista- 
 dores," the retributive justice of which result will be equally accepted by 
 the verdict of history, whether attributed to the working out of natural 
 laws or to the dispensation of Providence, but the beneficence of which, 
 to the present limited scope of human vision, would have been more 
 apparent had it been accomplished before these monsters had been per- 
 mitted to land on the shores of the new world to extinguish a civilization 
 more humane than their own, and to destroy (at least in Peru) useful 
 improvements which the conquering race have never been able to equal 
 or replace. (Pardon this long digression, which perhaps may be im- 
 proper here, and strike it out.) 
 
 But little progress has been made in the prosecution of the war since 
 my former dispatches, except in the raising of troops, which goes vigor- 
 ously on. Chili thus far appears to have command of the sea, and it is 
 the opinion of Bear- Admiral Bodgers, and seems to be the general 
 opinion, that the Peruvian fleet is not able to meet it with a fair chance 
 of success. 
 
 The Chilian fleet has completely put an end to the shipping of guano 
 and nitrates, both held as government monopolies until now, and worked 
 by neutrals on government account, the proceeds of which constituted 
 the principal source of public revenue. 
 
 The same fleet has bombarded some of the small towns along the 
 southern coast, and established a blockade, which, however, is not kept 
 up by the presence of an adequate force. They have also cut the cable, 
 first at Iquique, and a few days past at Arica ; and now, as the papers 
 report, prohibited the sending of messages in cipher by the cable over 
 which they have control by any parties but the officers of their govern- 
 ment. 
 
 Many of the ox)erations of the Chilian fleet have probably been carried 
 on, in part at least, for the purpose of provoking the Peruvian fleet to 
 come out from the harbor of Callao and meet them on the open sea, 
 away from the protection of the powerful forts and batteries by which 
 this port is protected. 
 
 The Peruvians have been constantly repairing, strengthening, and 
 fitting out their fleet, and there are now some indications of their under- 
 taking some enterprise at sea. 
 
 While matters remain in their present condition upon the water there 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 219 
 
 is very great difficulty in bringing the opposing land armies near enough 
 to each other to inflict any injury upon either. The desert of Atacama 
 separates them, and it is very difficult, if not impossible, to transport 
 an army or its supplies across it. This difficulty, while the Chilians 
 dominate the sea, operates most injuriously upon Peru and Bolivia ; as 
 from the nature of the country between the Andes and the sea, and that 
 in the interior among or between the two ranges of Andes the march of 
 armies and the transportation of supplies are necessarily tedious. 
 
 The great need of Peru, especially, seems to be fast-sailing steam trans- 
 ports to carry her land forces, now concentrated here and at Callao, to 
 the seat of war without being liable to be captured by the Chilian fleet. 
 To supply this need Peru has recently purchased from the Pacific Steam 
 Navigation Company the steamers Cosmo and Oroya, and there are in- 
 dications that one (if not both) of them is preparing for leaving port. 
 
 In the meantime the delay in taking the offensive and making their 
 army actively efficient seems to have produced a feeling of impatience and 
 charges of incapacity against the Peruvian Government much like those 
 which prevailed in our own war just previous to the battle of Bull Kun; 
 and the government will be compelled soon to make a forward move- 
 ment of some kind or lose the confidence of .the people, the great masses 
 of whom are ignorant and impulsive, and easily lead by demagogues or 
 ambitious aspirants into any revolutionary movement, and Pierola, the 
 champion and favorite of the Church party, is probably ready to avail 
 himself of the first favorable occasion to seize the government. If the 
 present government should meet with any great reverse, or even if it 
 should remain much longer without striking some effectual blow, I 
 should not be disappointed to see a violent and sudden change in the 
 government, and Pierola at its head — a change which I fear would be 
 unfortunate for Peru — but they must be allowed to test the experiment 
 for themselves, if they see fit. 
 
 In the mean time the effect of the war upon the finances has been 
 most disastrous. Government paper, which is practically the only cur- 
 rency known here, and had sunk to less than 50 per cent, of its nominal 
 value before the war, has been sinking very rapidly since. The greatest 
 reliance for its redemption was upon the guano and nitrates, and these 
 being cut off at the same time that immense expenditures are called for 
 for the support of the war, it is difficult to find methods of keeping up 
 the public credit or supporting the operations of war. 
 
 The citizens have in great numbers enthusiastically tendered a large 
 proportion of their wealth to support the war. But help from this source 
 will be but temporary or not in sufficient amount, though the war is pop- 
 ular with all classes. 
 
 The plan which seems just now most likely to be adopted by the govern- 
 ment is that of issuing 8,000,000 of paper soles, in addition to the 17,000,000 
 already out. 
 
 Under the influence of all these causes the paper sole (whose nomi- 
 nal value was equal to five francs in silver) had, when I arrived here a 
 month since, so far depreciated that it was worth slightly less than 20 
 pence in exchange on London, which consisted of drafts at 90 days 
 sight, equal to 120 days date, and to-day the paper sole is worth in that 
 kind of exchange only 16 pence, and even a little less. The American 
 double eagle will, for limited amounts of a few thousand dollars, to-day 
 purchase from 58 to 00 soles paper. 
 
 The effect upon neutral shipping, especially that engaged in the ship- 
 ment of the guano and nitrates, has been still more disastrous, nothing 
 short of ruinous. The whole business is utterly destroyed. The loss 
 
220 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 falls heaviest, it is true, upon British ship-owners, most of these prod- 
 ucts being shipped to that country ; but a large number of American 
 ship-owners were engaged in the same trade, under charter-parties taken 
 from an English company, describing themselves as agents of the Peru- 
 vian G-overnment, by which the owners were made to assume all the risks 
 of war. Some of these had part of a eargo on board, some waiting to 
 begin loading ; but all compelled to leave, and the works destroyed. 
 
 The government seems to wish to act in entire good faith, and gives 
 notice that all these vessels may abandon the contract with the govern- 
 ment or wait till the government can open other deposits, which they 
 are attempting to do ; that any vessel partly loaded may proceed to de- 
 liver at the port of destination in England what it has on board, or put it 
 on any other vessel for that purpose, &c. ; or it may abandon the contract. 
 
 Neutral commerce in every form along this coast is suffering severely, 
 and most of the business employing much capital is carried on by neu- 
 trals. In short, neutrals are losing more heavily by this war than citi- 
 zens of any of the belligerents, because they had much to lose and the 
 belligerents very little. 
 
 The G-overnment of Peru is doing all it can to encourage neutral com- 
 merce. Some days since a prominent member of Congress introduced 
 a measure to prohibit all vessels touching at Chilian ports from landing 
 in Peruvian ports and all touching at Peruvian ports from proceeding to 
 Chili. But the British and French and the Italian ministers and myself 
 contrived, in an informal manner, to suggest that such a measure would 
 conflict with the 18th article of our treaty, and like provisions of the 
 French and Italian treaties, and even with the British, which under a 
 peculiar " favored -nation" clause, gave the same rights as ours. The 
 measure contemplated (by the member) has not been pushed. The 
 government never favored it, and now an act has just been passed by 
 Congress and approved and promulgated by the executive, May 9, which 
 throws open the coasting trade of Peru to foreign vessels on the same 
 terms as allowed to the vessels of Peru, until otherwise ordered by Con- 
 gress. There is one ground of apprehension felt here, both by Peruvi- 
 ans and neutrals, which probably would not exist anywhere outside of 
 these South American republics, which do not place so much confidence 
 in the public faith of each other as is common in other countries. Peru 
 was drawn into this war in consequence of her treaty with Bolivia, and 
 because the latter when attacked by Chili claimed of Peru the fulfillment 
 of her treaty stipulations. But now a strong and very plausible appeal 
 is made by Chili to induce Bolivia to abandon Peru and join Chili against 
 her, on the ground that it will be more advantageous to Bolivia to de- 
 spoil Peru of her southern ports, and obtain them, with the rich deposits 
 of guano and nitrate, than to remain as she is. And it cannot be con- 
 cealed that the more intelligent portion of the people of Peru, and I am 
 inclined to think the government itself, have serious apprehensions least 
 these considerations should prevail with Bolivia. 
 
 I send several dispatches by this mail which were ready las week, 
 but which, owing to connections at the Isthmus between the weekly 
 mail on the Pacific with the tri-monthly mails on the Atlantic side, would 
 not have reached New York earlier than by the mail of the 15th in- 
 stant. 
 
 May 13, 1879. Since writing the above the lower house of Congress 
 has, by a decisive vote, rejected the proposition to issue more govern- 
 ment paper, and seems now disposed to resort to a loan for $15,000,000, 
 $8,000,000 of which to be applied to the redemption of government 
 currency now outstanding and the balance to meet war expenses. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 221 
 
 The two houses have also just resolved, by a vote of 77 to 44, to put 
 on only 2 per cent, ad valorem export duty on sugar, and by an abso- 
 lute majority reject the plan recommended by the Executive for increas- 
 ing all custom-house duties 25 per cent. 
 Accept, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. ICO. 
 
 Mr. Tracy to Mr. Evarts. 
 [Translation. ] 
 
 Legation of Peru, 
 Washington, May 15, 1879. (Eeceived May 16.) 
 
 Sir : It affords me pleasure to inclose a copy of the treaty* of defensive 
 alliance between Peru and Bolivia, in accordance with the promise made 
 to your excellency at our interview this morning. 
 
 I also beg leave to hand you a part of the "Peruano" (the official 
 journal of Peru) of 4th April last, which Contains the principal com- 
 munications that passed between the ex-minister of Chib: at Lima, 
 Senor Godoy, and our minister of foreign affairs, Senor Irigoyen, and 
 a note from the latter to Senor Lavalle, Peruvian minister to Chili, all 
 written on the eve of the declaration of war, made in behalf of his gov- 
 ernment by Senor Godoy, on the 3d of April last. I likewise inclose 
 ■ slips from a newspaper published in English, containing translations of 
 the Peru-Bolivian treaty, and of Sefior Irigoyen's reply to Senor Godoy's 
 note declaring the interruption of friendly relations between Chili and 
 Peru and demanding his passports. These translations, although they 
 might be improved, are substantially correct, 
 
 The accompanying documents prove that notwithstanding Peru has 
 in good faith done all in her power to avoid this unhappy conflict, the 
 government has finally been forced to accept the challenge of Chili ; and 
 whilst most truly deploring the non-success of her loyal efforts to pre- 
 serve friendly relations with the people of Chili, and to prevent a war 
 between three republics, called for many reasons to live in perfect har- 
 mony, she feels .convinced that the civilized nations of the world will 
 properly appreciate her position and agree that Peru finds herself en- 
 gaged in tnis quarrel solely because her policy has consisted in keeping 
 guard over the maintenance of those fundamental principles of Ameri- 
 can law that have been openly disregarded by the Government of Chili. 
 I avail myself, &c, 
 
 JOSE CARLOS TRACY. 
 
 No. 101. 
 Mr. Christiancy to Mr. Evarts. 
 
 ~&o. 16.] Legation of the United States, 
 
 Lima, Peru, May 21, 1879. (Received June 16.) 
 Sir : I have the honor to inform you that since my last dispatch in 
 reference to the progress of the war, the constitutional President, Gen. 
 
 * For treaty of defensive alliance between Peru and Bolivia of February 6, 1873, see 
 inclosure to Mr. Osborn's dispatch No. 98, dated May 10, 1879, Document 59. 
 
222 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 Mariano Ignacio Prado, in pursuance of the consent of congress thereto 
 given, has taken the chief command of the Peruvian army and navy, 
 and on the 16th instant left Callao with the first (of the three) division 
 of the Peruvian fleet, composed of the Huascar, Independencia (iron- 
 clads), and the steam transports Oroya, Chalaco, and Limena, the three 
 latter carrying a portion of the Peruvian army, the numbers not stated 
 to the public. They sailed south with the intention, as is generally sup- 
 posed, of landing at Arica and forming a junction with the Bolivian 
 army. They were heard from yesterday at Mollendo by dispatch from 
 that place, and by this time, unless prevented by the Chilian fleet (which 
 by last accounts was part at Antofagasta and part at Iquique), must 
 have arrived at Arica. 
 
 In consequence of the President having taken the command in person 
 of the army and navy, General Luis de la Puerta, the first vice-presi- 
 dent, has, in pursuance of the constitution, become the President ad in- 
 terim of the republic, and has entered upon the duties of his office, 
 upon which, as is usual in such cases, the members of the old cabinet put 
 their commissions at his disposal, and he has in part completed his cabi- 
 net as follows : 
 
 General Manuel de Meudiburn, minister of war and navy, and presi- 
 dent of the cabinet. 
 
 Dr. Don Eafael Velarde, minister of the interior, police, and public 
 works. 
 
 Don Eafael de Yzcue, minister of commerce and finance. 
 
 Don M. Felipe Paz-Soldan, minister of justice, religion, public instruc- 
 tion, and charity. 
 
 To this latter office are also for the present, and until an appointment 
 shall be made, committed the duties of minister for foreign relations. 
 All these appointments seem to be well sustained by public opinion, 
 and the several gentlemen are generally believed to be honest as well 
 as capable men. 
 
 With the highest esteem, &c, 
 
 I. P. CHEISTIAXCY. 
 
 [Inclosure 1 in Nu. 16. — Translation.] 
 
 Mr. Yrigoyen to Mr. Chrisliancy. 
 
 Lima, May 17, 1879. 
 Sir: I have the honor to communicate to your excellency that by a supreme decree 
 of this date his excellency the President of the republic, and using the authorization 
 given him by congress, has assumed the command of the army and navy as its gen- 
 eral-in-chief, and that the first vice-president, Gl. Don Luis la Pnerta, has taken charge 
 of the Presidency in accordance with the constitution. I take- advantage of this 
 occasion, &c, 
 
 M. YRIGOYEN. 
 
 [Inclosure 2 in No. 16. — Translation.] 
 
 Mr. Paz-Soldan to Mr. Ckristiancy. 
 
 Lima, May 20, 1879. 
 Sin: I have the honor to communicate to your excellency that his excellency, first 
 vice-president of the republic in charge of the executive power, has accepted the 
 resignation tendered by the members of the cabinet, and that with yesterday's date 
 he has organized a new cabinet, as follows : 
 
 Minister of war and marine and president of the council, Gl. Manuel de Meudiburn. 
 Minister of government police and public works, D. D. Rafael Velarde. 
 Of finances and commerce, D. Rafael de Yzcue. 
 
AFFAIRS IN CHILI, I>EKU, AND BOLIVIA. 223 
 
 Of justice, religion, public instruction, and beneficence, the undersigned, being like- 
 wise in charge of the department of foreign affairs, whilst his excellency names the ons 
 who is to take the office. 
 
 In communicating to your excellency the organization of the new cabinet, it is satis- 
 factory to say that m the short time I shall remain at the head of this department 
 it will he highly satisfactory to me to contribute to the maintenance of the good rela- 
 tions that happily exist between the government of Peru and that of the United Sates, 
 at the same time facilitating your excellency in the discharge of your important miss- 
 sion. 
 
 I take advantage, &c, 
 
 M. FELIPE PAZ-SOLDAN. 
 
 flnclosure 3 in No. 16.1 
 
 Mr. Christiancy to Mr. Paz-Soldan. 
 
 Legation of the United States, 
 
 Lima, Peru, May 22, 1879. 
 Monsieur le Ministre: I have the honor to acknowledge the receipt of your note 
 of the 20th instant, announcing the formation of the new cabinet under the Presi- 
 dency of his excellency General Don Luis la Puerta, so far as the same had then been 
 completed, of which I have duly made a record in this legation. 
 
 I tender to you, and through you to the other members of the council, my most hearty 
 wishes for the success of each and all in the administration of the respective and re- 
 sponsible duties to which you and they havo been called. 
 Please accept, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure 4 ill No. 16. — Translation.] 
 
 Mr. Yrigoyen to Mr. Christiancy. 
 
 Lima, May 23, 1879. 
 
 Sir : I have the honor to communicate to your excellency that having received the 
 high confidence of being newly called to the dispatch of the department of foreign 
 affairs by his excellency the first vice-president of the republic in charge of the ex- 
 ecutive power, I have taken charge of the department since yesterday, when I took 
 the oath required by law. 
 
 I have the pleasant assurance of having contributed in all within my power, dur- 
 ing the time I have been in charge of this same portfolio, to keep very close and 
 cordial the relations that happily exist between Peru and the United States. 
 
 To-day I can assure yonr excellency that I will work constantly to make those ties 
 more intimate, not doubting that with that object your excellency will deign to offer 
 me the efficient co-operation that you have always afforded me. 
 
 It is satisfactory to nic to take advantage of this new occasion, &c, 
 
 M. YRIGOYEN. 
 
 No. 162. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 18.] Legation of the United States, 
 
 Lima, Peru, May 27, 1879. (Keceived June 16.) 
 Sir : Siuce my last dispatch of May 21 (No. 16), viz, on the morning 
 of the 22d, the Chilian fleet (with the exception of the Esmeralda and 
 Covadonga) appeared off the harbor of Callao and remained for several 
 hours, when, without attempting anything, it sailed for the south, hav- 
 ing, as is supposed, learned from some fishermen the previous depart- 
 ure of the first division of the Peruvian fleet (mentioned in my last). 
 Their expedition to Callao had given the Peruvian fleet time to trans- 
 port in safety a considerable part of their army here, with munitions and 
 
224 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 supplies, to the towns along the southern coast of Peru — Mollendo, Pis- 
 agua, Arica, and Iquique — and also to transport a part of the Bolivian 
 army from Arica as far as Pisagua, and to form a junction of the Peru- 
 vian with the Bolivian army. 
 
 Since that time, and while, the Peruvian and Chilian fleet were mu- 
 tually ignorant of the whereabouts of the other, it is reported here, and 
 I think correctly, that the Huascar (Peruvian) attacked and sank the 
 Chilian steam-corvette Esmeralda at or near Iquique ; and the steam 
 frigate Independencia, chasing the Chilian Covadonga, and when on the 
 point of reaching her (on her flight for the shore), ran aground or upon 
 a reef, from which it was found impossible to get her off, and she was 
 abandoned and burnt or blown up by the Peruvians themselves. 
 
 This is a serious loss to Peru, but does not, in my estimation, over- 
 balance the advantages gained by Peru in this expedition to the south. 
 But this may yet depend much upon what the Huascar may have been 
 able to accomplish before the arrival there of the Chilian fleet, and upon 
 her success in avoiding the Chilian fleet. But, unless she waits too long, 
 she will probably easily evade that fleet, as it is composed of very slow 
 vessels ; and some of the Peruvian transports which went south have 
 returned without seeing the fleet. 
 
 The effect of the war upon the finances becomes every day more dis- 
 astrous. Exchange on England is now quoted at 16 pence per sole, and 
 an American double eagle is worth to-day 62 soles. 
 
 I inclose a copy of the act of the Peruvian congress passed for the 
 purpose of providing ways and means by loan and taxes. This is taken 
 from the South Pacific Times, but is translated with substantial accuracy. 
 I have, &c, 
 
 I. P. CHRISTIAXCT. 
 
 [Inclosure 1, Xo. 18. — South Pacific Times. — Translation.] 
 Luis La Puerta, first vice-president of the republic, in charge of the executive power. 
 Whereas the Congress of the Republic of Peru has given the following law : 
 
 Article 1. Let a national loan be effected for the sum of ten million soles in current 
 money of the republic, at the figure of eighty per cent., and eight per cent, interest 
 per annum, with ten per cent, accumulative amortization. 
 
 Art. 2. The service of this loan will be effected at the termination of every quarter, 
 beginning with the quarter expiring on the 1st of October, 187H, and the amortization 
 will be made by lot and at par. 
 
 Art. 3. The amortization and interest funds will be guaranteed by the product of 
 the capitation and income taxes, and the tax on the exportation of sugar, sanctioned 
 by the present special Congress, and will also, as a subsidiary guarantee, be assured by 
 the product of such national property as may be of easy appropriation. 
 
 Art. 4. The sale of the national property snbject to the service of this loan will be 
 effected at public auction, and the payment must solely be made in bonds of the loan 
 authorized by this law. 
 
 Art. 5. The loan must be effected within the peremptory term of forty-five days 
 from the date of the publication of this law. 
 
 Art. 6. If, at the expiration of the said term of forty-five days, the subscriptions 
 should not cover the full amount of the loan, the actual issue of notes shall be increased 
 in the proportion of the sum wanting to complete the eight millions which the loan will 
 produce. 
 
 Art. 7. Let the committee appointed by the law of the 27th January last be em- 
 powered to deliver to the executive, in notes of the new issue, the complement of the 
 eight millions to which the preceding article refers, and also to effect the issue and the 
 service of the loan in the proportion subscribed ; to which end the funds appointed 
 by this law for said service shall be handed over to them. 
 
 Art. 8. The sum of one million eight hundred thousand soles out of the funds for 
 the service of the loan shall be set aside for the payment of amortization and interest 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 225 
 
 of the same loan, should it be entirely covered. • If not, of this amount the necessary 
 sum shall be applied to the service of the loan as far as covered, adding the remainder 
 to the fund of amortization of the fiscal issue. 
 
 Art. 9. If the funds set aside by this law for the service of the loan should exceed 
 one million eight hundred thousand soles, the administrating committee shall deliver 
 the excess to the executive. 
 
 Art. 10. The two millions of soles in restampod notes, which the associated bauks 
 had in deposit for the exchange 'of the unstamped notes, and which the executive has 
 been authorized to issue by the legislative resolution of the 13th instant, shall be 
 considered as an integral part of the subsidiary issue authorized by this law, which in 
 no ease can exceed eight millions. Should the loan be effected in its entirety, the two 
 last millions received will be used for the amortization of the two million of soles in 
 notes referred to in the article. 
 
 Notify the executive, &c. 
 
 Given in the hall of sessions in Lima on the 17th dav of May, 1379. 
 
 JOSE ANTONIO GARCIA Y GARCIA, 
 
 President of the Senate, $c. 
 
 Therefore, I order the same to be printed, published, and received as law. 
 Given in the house of government in Lima this 20th day of the month of May, 
 1879. 
 
 LUIS LA-PUERTA. 
 
 J. R. DE IZCUE. 
 
 No. 163. 
 
 Mr. Christiancy to Mr, Evarts. 
 
 No. 20."! • Legation of the United States, 
 
 Lima, Peru, June 2, 1879. (Eeceived June 25.) 
 
 Sir: Though the matter does not strictly pertain to the business of 
 this legation, I will take the liberty of calling your attention to the 
 decree of President Daza of Bolivia, dated March 26th last, in reference 
 to neutral vessels and privateers. 
 
 It strikes me that this decree, if carried into effect, might seriously 
 conflict with our treaty with Bolivia, — articles 15, 16, and 17. 
 
 This decree' was not published here until the 16th May, and did not 
 come to my notice until several days after, nor until Mr. Pettis had left 
 here for Bolivia. I presume it has already attracted his attention, but 
 lest it might not, I have called his attention to it by letter. 
 
 I inclose a printed copy of the decree in Spanish, and a translation of 
 the same into English. 
 
 Accept the assurance, &c, 
 
 I. P. CHRISTIANCY. 
 
 * [Inclosure 1 in No. 20 — Translation.] 
 
 [From the Lima La Patria, May, 16, 1879. ] 
 
 Decree of President Daza. 
 
 Hilarion Daza, President of the Republic of Bolivia, &c. : 
 
 Chili having inaugurated a war against Bolivia, and provoked this by means of a 
 filibustering aggression, and by a violent occupation of our coast by an armed force, 
 breaking two treaties of boundary of a permanent character, the time has arrived to 
 organize maritime hostilities by all legitimate means of defense ; to that end having 
 the right and believing it necessary, the issuing of commissions to privateers against 
 the ships sailing under the enemy's flag, against the goods belonging to Chilians, 
 whether contraband of war or not, found under a neutral flag, and for the seizure and 
 
 S. Ex. 79 15 
 
226 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 confiscation of nitrate , guano, and products of Bolivian coast which are worked and 
 exported, committing theft and piracy upon the national property, and this protected 
 by the Chilian army. 
 
 DECREES. 
 
 The following regulations, to which must he subject the captains of privateer ships, 
 with the commissions from the republic in actual war with Chili. 
 
 1. The Bolivian privateers are authorized to pursue and capture all Chilian vessels, 
 whether men-of-war, merchantmen, or privateers, found on the high sea or in the 
 waters or ports of the republic, or in the waters or ports of the enemy. 
 
 2. The privateers of the republic are prohibited from attacking or exercising any act 
 of hostility in the ports or territorial waters of neutral nations, it being understood by 
 territorial waters, those comprised within the reach of cannon at the lowest tide. 
 
 3. The privateers of the republic can seize the cargo of the Chilian merchant ves- 
 sels, when these do not belong to a neutral, except in case that the goods that com- 
 pose it are contraband of war destined to the enemy, these are always seizable. If a 
 part of the cargo is contraband of war and the other is not, the first alone is seizable. 
 
 4. The privateers are by this authorized to detain and seize any neutral vessel which 
 may carry to the enemy oflicial despatches, or land forces, or sea forces, or seamen for 
 the enemy's ships. 
 
 5. The privateers of the republic can capture all cargoes appertaining to Chilians, 
 and found on board a neutral vessel, be it or not contraband of war. 
 
 6. Contraband of war is composed of the following articles: cannon, muskets, mor- 
 tars, and arms of every description : also, every sort of ammunition, gun-carriages, 
 powder, saltpeter, sulphur, military clothing, leather in stripes, saddles and bridles, 
 tents, coal destined to the enemy's war-vessels or privateers, and in general all instru- 
 ments or things destiued for war purposes; amongst these, provisions, gold and silver 
 coin, and correspondence addressed to the enemy, are likewise contraband of war, 
 military contingents, and the individuals who belong to the enemy's service. 
 
 7. Also, all ships are seizable that cannot prove their neutrality. Likewise those 
 that do not possess their principal papers, such as their sailing certificate, bills of 
 lading of their cargo, or others showing the neutral property of this and of the vessel, 
 and it will be declared a good prize, unless it is shown that these have been lost 
 through an inevitable accident. All papers shown must be properly signed to be ad- 
 mitted. 
 
 8. The ships that may hoist a different flag from that of their real nationality, those 
 who throw their papers into the sea, and those that oppose resistance, or endeavor to 
 escape the privateers, will be considered as enemies. 
 
 9. The privateers of the republic are authorized to seize all vessels, without distinc- 
 tion of nationality, that carry on board the products exported from Mejillones, Antofa- 
 gasta, aud minerals from Caracoles, such as saltpetre, gnano, silver or copper metals, 
 when these cannot prove that they have been dispatched with the concurrence of 
 the Bolivian authorities. 
 
 10. The declaration of good prize will be given by the tribunals established by the 
 laws of the republic, If the prize cannot be brought before them, owing to the dis- 
 tance or other cause, the trial shall take place before the diplomatic or consular 
 agents o£ the republic, in the ports of the friendly nations which may allow the sale 
 of the prize. If the privateer should find it difficult, by reason of any extraordinary 
 circumstances, to send the captured vessel to trial, he will use his discretion according 
 to the circumstances, consulting his security, and preserving the justifying documents 
 which he will opportunely deliver to the competent authority. 
 
 11. The privateers of the republic have, as such, the right of visitation which be- 
 longs to belligerents, and to exercise it they must comply with the following direc- 
 tions : They will display the national flag, firing a blank shot to stop the vessel 
 which is to be visited, and to compel it to display its flag. If sne should not do so, 
 the privateer will proceed, as he thinks fit, to compel her. 
 
 12. If the merchant vessel should stop and fly its colors, the privateer captain will 
 proceed to send the visit of recognizance, with the necessary precautions in order to 
 be satisfied by the papers existing on board, of the nationality, nature of the ship, 
 and its cargo, and whether it carries on a lawful commerce. 
 
 13. In all cases which result in showing that the vessel is seizable, the privateer 
 will take an inventory of the cargo and all the effects which may be found on board ; 
 he will keep the documents which prove the legitimacy of the prize, in order to pre- 
 sent them to the respective tribunals. 
 
 14. If the visit results in showing that the vessel is not seizable, nor subject to be de- 
 tained, and that the cargo is entirely neutral property, and that there is no contraband 
 of war, he will give to the captain of the visited ship a certificate in which these 
 circumstances are to be stated, the captain retaining a duplicate of this document. 
 
 15. The vessels seized by the privateers of Bolivia, as well as the captured cargo on 
 board of them, are free from all fiscal tariff iuthe ports of the republic. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 227 
 
 16. The commander, officers, aud crew of each privateer are under the protection 
 and laws of the republic, and will be considered as citizens of Bolivia, having all the 
 guarantees aud rights annexed to the citizenship of Bolivia, though they he foreign- 
 ers, through the mere act of fitting out and arming a vessel as privateer, or enlisting 
 on board of it. 
 Given in the city of La Paz, on the 20th dav of March, 1879. 
 
 11ILARION DAZA. 
 EULOGIO D. MEDINA. 
 Countersigned : 
 The first officer, 
 
 DAMASO GUTIERBEZ. 
 
 No. 164. 
 
 Mr. Evarts to Mr. Christiancy. 
 
 No. 20.] Department of State, 
 
 Washington, June 18, 1879. 
 
 Sir: Your dispatch (No. 7) of the 29th of April last has been re- 
 ceived. It relates to neutral rights and the rights of peaceable and 
 unarmed citizens in bombarded towns. The general views upon these 
 subjects which you express are approved, and you were judiciously cau- 
 tious, before you joined your diplomatic colleagues in signing the protest 
 which was addressed to the commander of the Chilian fleet, to require 
 that paper to be so changed as to make the protest dependent upon the 
 truth of the facts which originally was assumed. The prudence of this 
 step is understood to have since been illustrated by the disclosure that 
 the bombardment of at least one of the points named was by no means 
 unprovoked, but was in retaliation for the firing upon boats of the Chil- 
 ian squadron, which approached the port under a flag of truce, for the 
 purpose of announcing the blockade. The firing upon a flag of truce 
 is notoriously one of the gravest breaches of the laws of war which a 
 belligerent can commit, and is held to justify severe measnres of retal- 
 iation, such as were adopted in the instance adverted to. 
 
 Although the policy of this government has heretofore shown a lean- 
 ing towards neutral rights, this has never been or intended to be such 
 as to extinguish the just rights of belligerents, especially of compara- 
 tively weak powers. It is apprehended that the capitalists of great 
 European states, who have heavy investments in the funds and in the 
 trade of the South American countries, are so alarmed about their inter- 
 ests that they may not be indisposed to deny any belligerent rights to 
 those countries in the war now unhappily on foot. Undoubtedly they 
 endeavor to impress their views and their anxieties upon their govern- 
 ments at home. This department is not aware how these may have 
 been received. It is hoped, however, that in deciding upon the subject, 
 that no neutral will omit to bear in mind that an acknowledgment of 
 the independence of the belligerents implies a concession to them of all 
 the rights in that character which they may claim under the public law, 
 however the exercise of those rights may infringe upon the interests of 
 iieutrals. 
 
 The war adverted to is much to be deplored, and, for the sake of hu- 
 manity, at least, it is hoped that it may soon be brought to an honorable 
 close. Although our own citizens have a much smaller interest iu this 
 than those of European countries, complaints upon the subject, especially 
 from owners of vessels in the carrying trade, have reached this depart- 
 ment. Hostilities in this case, however, are not likely to be soonest 
 
228 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 ended, or peace to be permaneut, if neutrals show such impatience as 
 they would, not be likely to acquiesce in if the situation were to be re- 
 versed. 
 
 In regard to the law applicable to the bombardment of unfortified 
 places, permit me to refer you to the opinion of Attorney- General Henry 
 Stanbery, of the 31st of August, 186G, relative to the bombardment of 
 Valparaiso by the Spaniards. A manuscript copy of the paper is here- 
 with transmitted to provide for the contingency of your not having a 
 printed one. 
 
 I am, &c. 
 
 WJI. M. EVARTS. 
 
 [Inclosure in Instruction No. 20.] 
 
 Mr. Stanbery to Mr. Seward. 
 
 Attorney-General's Office, 
 
 August 31, 1866. 
 
 Sir : It appears from your letter of the 27 th instant that the American commercial 
 houses of Wheelwright & Co. and Loring & Co., domiciled for commercial purposes 
 at Valparaiso, sustained losses of their merchandise in the conflagration caused by the 
 bombardment of that city by the Spanish fleet on the 31st of liarch last. 
 
 The question presented for ray opinion is, whether a case is made for the interven- 
 tion of the United States on behalf of these citizens for indemnity against Spain or 
 Chili? 
 
 I do not see any ground upon which such intervention is allowable in respect to 
 either of those governments. 
 
 The bombardment was in the prosecution of an existing war between Spain and 
 Chili. Although, under the circumstances, it was a measure of extreme severity, yet 
 it cannot be said to have been contrary to the laws of war, nor was it unattended with 
 the preliminary warning to non-combatants usual in such cases. 
 
 It does not appear that in carrying on the bombardment any discrimination was 
 made against resident foreigners or their property. On the contrary, there was at 
 least an attempt to confine the damage to public property. 
 
 Then, as to the Chilian authorities, it does not appear that they did or omitted any 
 act for which our citizens there domiciled have a right to complain, or that the meas- 
 ure of protection they were bound by public law to extend to those citizens and their 
 property was withheld. 
 
 No defense was made against the bombardment, for that would have been fruitless 
 and would have aggravated the damage, as Valparaiso was not then fortified, and no 
 discrimination was made by those authorities between their own citizens and for- 
 eigners there domiciled. All shared alike in the common disaster. 
 
 The rule of international law is well established that a foreigner who resides in the 
 country of a belligerent can claim no indemnity for losses of property occasioned by 
 acts of war like the one in question. 
 
 The bombardment of Copenhagen by the British in 1807 is a notable illustration of 
 this rule. Immense losses were sustained by foreigners domiciled in that city. There 
 was no previous declaration of war against Denmark, and no reasonable ground upon 
 which the bombardment could be justified, and yet no reclamation upon the footing 
 of these losses was ever admitted by Great Britain. The bombardment of Greytown, 
 in May, 1854, by the United States sloop of war Cyane, is another instance of this rule. 
 Losses were sustained by French citizens there domiciled, from the fire of the Cyane. 
 A petition to the United States from those parties for indemnity was presented through 
 the French minister, then resident at Washington, but without the express sanction 
 of his goverment. Upon full consideration, this petition was refused. Mr. Marcy, 
 then Secretary of State, in answer to the claim holds the following language : " The 
 undersigned is not aware that the principle that foreigners domiciled in a belligerent 
 country must share with the citizens of that country in the fortunes of war, has ever 
 been seriously controverted or departed from in practice." 
 
 I have therefore to repeat that I am of opinion no ground is laid for the interven- 
 tion of the United States in favor of these parties. 
 I am, &c, 
 
 HENRY STANBERY. 
 
 Hon. W>r. H. Seward, 
 
 Secretary of State. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 229 
 
 No. 165. 
 
 ■ 
 
 Mr. Tracy to Mr. Evarts. 
 [Translation.] 
 
 Legation op Peru, 
 New York, June 24, 1879. (Received Jane 26.) 
 
 Sir : The minister of foreign affairs of Peru lias instructed me to trans- 
 mit to you tbe inclosed pamphlet, which is the counter-manifest addressed 
 by the Peruvian Government to the United States in relation to the war 
 declared by Chili. 
 
 The G-overnment of Peru, which is now more desirous than ever to 
 merit the good opinion and the friendship of the enlightened Govern- 
 ment of the United States, hopes that your excellency, by perusing the 
 statement made in its name by Mr. Irigoyen, will be enabled to appreci- 
 ate Chili's true motives in declaring war against us, and to see on which 
 side justice is. 
 
 I avail myself of this occasion to reiterate to your excellency the as- 
 surances of my very high esteem and distinguished consideration. 
 
 JOS12 CAELOS TRACT. 
 
 COUNTER-MANIFEST. 
 
 Pern's reply to Chili. 
 
 (Addressed by the Government of Peru to all friendly powers with reference to the 
 war which has been declared against it by Chili.) 
 
 [Translation.] 
 
 Lima, May 1, 1879. 
 
 Sir : The exposition which was addressed on the 12th of April last to all friendly 
 governments, by the minister of foreign affairs of Chili, reveals the fallacy of the mo- 
 tives which have led that government to declare war against Peru. 
 
 I feel confident that your excellency has vainly sought in that document for a sin- 
 gle plausible pretext which may even apparently justify the very serious grounds 
 taken therein, for it is not possible for good sense and justice to exhibit themselves 
 on a foundation which has been prepared for some time past by overweening ambi- 
 tion and other ignoble sentiments, which at once present themselves to the apprecia- 
 tion of an impartial criticism. 
 
 The Government of Chili having lost prestige it its own country, through the pol- 
 icy which it had followed in the question of the Argentine Republic, by maintaining 
 for a long series of years, and in a most irritating manner, exaggerated pretensions 
 over the straits of Magellan and the Patagonian coast, and by afterwards abandoning 
 them before the energetic attitude of that nation ; embarrass by the increasing depres- 
 sion of its industries, and by an overwhelming commercial crisis which was daily de- 
 stroying the principal sources of its prosperity, it suddenly turned its attention to the 
 Bolivian coast, the object of its ancient and oft deferred aspirations, in order to real- 
 ize an easy conquest which should re-establish it in thegood opinion of its citizens, 
 and replenish its exhausted treasury with the abundant wealth which Providence had 
 bestowed upon that privileged territory. For that purpose it needed some pretext 
 which should enable it to initiate its shameful programme, which was found in the 
 question which had sprung up between the Nitrate and Railroad Company of Antofa- 
 gasta and the Bolivian Government, on account of the moderate tax of ten cents 
 which the latter had established upon the exportation of each quintal of nitrate, as a 
 means of forcing the settlement of differences then existing. 
 
 Although in this question, which was an entirely private one, and as such subject 
 solely to the laws and tribunals of Bolivia, there was no excuse for the interference 
 of any government, that of Chili arrogated to itself the defense of those interests be- 
 longing not only to Chilians, but also to citizens of other nations; taking as a basis 
 Article IV of a treaty celebrated with Bolivia in 1874, it demanded the suspension of 
 the tax under threat of annnling the treaty. 
 
230 AFFAIRS IN CHILI, PERU, AND BOLIVIA 
 
 The Bolivian Government repelled such a pretension, and reminded the Government 
 of Chili that arbitration was stipulated for the settlement of differences which might 
 arise between them. 
 
 The latter government, which up to that moment seemed to have forgotten so sacred 
 a pledge, as was evident by the terms of its demand, was forced to acknowledge it by 
 requiring Bolivia to suspend the execution of the law imposing a tax on the Nitrate 
 and Railroad Company of Antofagasta, in order to submit the matter to the arbitration 
 prescribed by the treaty.. 
 
 And your excellency must bear in mind that while Chili thus appeared ready to 
 enter into an amicable arrangement with Bolivia, it had sent one of its ironclads to 
 Antofagasta with forces ready to land, and another portion of its fleet to Caldera with 
 all descriptions of war material, assuring the governments of La Paz and Lima, through 
 its respective legations, that the ships and forces dispatched to that port had no 
 other aim than to insure, in case of necessity, order and tranquillity on shore, in har- 
 mony with the Bolivian authorities. 
 
 During this interval the Bolivian Government, animated by a desire to avoid a con- 
 flict with Chili, and deferring at the same time to the good offices interpored by 
 Peru, yielded to the pretensions of the former republic by suspending the execution 
 of the law imposing a tax on nitrates, and by accepting arbitration. 
 
 This fact should have effectually put an end to all difficulties, and my government 
 believed it would ; but the Government of Chili, which was determined by all means to 
 destroy the treaty of 1874 and to seize a portion of the Bolivian coast, found a new pre- 
 text in the decree issued by the Government of La Paz rescinding the private contract 
 which it had celebrated with the Nitrate and Railroad Company of Antofagasta. Such 
 a resolution, even on the hypothesis of its being unjust and illegal, is not a sufficient 
 cause to justify a government violently to break a treaty, and still less for taking 
 possession of the coast of its opponent under the pretext of reiriiidieacion, as has been 
 done by Chili, since before impartial minds it would not be justifiable even to exert 
 the mere pressure of force. 
 
 Questions such as that existing between the Government of Bolivia and the Nitrate 
 Company, in itself a private question, are subject to the decisions of competent tribu- 
 nals in accordance with the legislation of each country, aud with the principles of 
 international law. It is only in cases of notorious injustice that a foreign government 
 may interfere for the protection of its citizens, and under this aspect of the question 
 Chili should have waited for an opportunity to interpose its claim, following the 
 conduct usually adopted in such cases by nations which do not, deviate from the prin- 
 ciples maintained by science and accepted by civilized communities, aud without over- 
 looking the fact that all difference with Bolivia should be settled by arbitration. 
 
 Notwithstanding this, it pursued a different course, for no sooner did it receive the 
 news of the recision of the contract adjusted with the company, and without protest- 
 ing against the act by peaceable means, which at least might conform to the practice 
 usual in such cases, than it hastened to occupy the defenseless Bolivian coast, with 
 forces prepared beforehand, and which, according to its previous declarations, were 
 only to be used to preserve order on land, should it become necessary, in harmony with. 
 Bolivian authorities. 
 
 Chili endeavors to justify its conduct by alleging that the territory comprised be- 
 tween parallels 23° and 24° of south latitude belonged to it by right of dominion and 
 possession before the treaty of 1866 ; that it was ceded to Bolivia on condition that the 
 latter would not impose additional taxes on Chilian industries and capital for 25 years ; 
 and that this republic, having set aside that stipulation, it became necessary to bring 
 things back to their previous status. 
 
 In order that your excellency may appreciate the inaccuracy of those statements, it 
 will be sufficient for me to bringbefore your enlightened consideration the declarations 
 made by the Chilian foreign office itself, and contained in the memorial of the min- 
 ister of foreign affairs addressed to the National Congress of that republic in the years 
 previous to the treaty of 1866. 
 
 In the memorial of 1$61 is found the following: "The Treaty of Boundaries which 
 was being negotiated with the republic of Bolivia has met with unexpected interrup- 
 tions. The government had cherished the idea that amicable and prudent arrange- 
 ments would effectually dispose of questions as to the uncertainty of 1 imits which here- 
 tofore had been the source ot difficulties between the two countries, and regrets that 
 the steps taken in this direction have been fruitless." 
 
 In a similar document, in the year 1862, the Government of Chili also acknowledges 
 the uncertainty of limits in the following words: "The negotiations relative to the 
 adjustment of the Treaty of Boundaries, which in this respect would put an end to the 
 old questions, have estranged this republic and Bolivia, and have not produced the 
 results which were expected." In the same memorial the minister of foreign affairs 
 tells the Congress of this country: "Bolivia, through its special envoy, ad hoc, had 
 proposed to subject the matter to the arbitration of a third friendly power." This cir- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 231 
 
 cumstance demonstrates the confidence which Bolivia always had in her rights, and 
 her desire to effect an amicable arrangement. 
 
 , And lastly, in the same strain, the minister of foreign affairs, in his report for the year 
 1863, declared that a treaty determining boundaries was pending, which should finally 
 settle all questions as to limits which had arisen between the two countries. 
 
 It is then a demonstrated fact that before the treaty between Chili and Bolivia of 
 August 10, 1866, there was an uncertainty as to the limits between the two countries, and 
 also negotiations for the celebration of a treaty which should settle all their differ- 
 ences, whereby it is apparent that tlieassertionsmadeby Seiior Fierro, in his memorial 
 to the friendly powers, are wholly inexact when he assures them that Chili, before the 
 treaty referred to, " enjoyed dominion and possession over the territory comprised be- 
 tween the parallels of latitude 23 and 24." 
 
 Had Chili been in that sitviation, she certainly would not have sustained through 
 long years the negotiations to which she refers in her own documents, and still less 
 would she have carried her disinterestedness to the extent of abandoning a rich terri- 
 tory merely to ingratiate herself with the Government of Bolivia. Thoroughly con- 
 vinced that the territory in dispute had at no time belonged to her, she would not ac- 
 cept the arbitration proposed by Bolivia, and feeling confident that, under any cir- 
 cumstances, the verdict would be adverse to her pretentions, she celebrated the treaty 
 of 1866, the first article of which is as follows : 
 
 " The line of demarcation between Chili and Bolivia, in the. desert of Atacama, shall 
 henceforth be the 24th parallel of south latitude, from the Pacific coast to the eastern 
 limits of Chili ; so that Chili on the south, and Bolivia on the north, shall enjoy pos- 
 session and dominion over the territory extending to the said parallel of latitude, and 
 shall exercise therein all the acts of jurisdiction and sovereignty inherent to the lord 
 of the soil." 
 
 This article coincides in sentiment with the preamble to the treaty, wherein it is as- 
 serted that both republics " desired to put an end amicably, and mutually satisfac- 
 tory, to the long pen diny question between them as to the determination of their re- 
 spective territorial boundaries of the desert of Atacama," and also with the terms of 
 the memorial which immediately after the celebration of that treaty was presented to 
 the Congress of Chili by the minister of foreign affairs, wherein the following language 
 is employed: "Animated, as well as is Bolivia, by an earnest desire to establish 
 more intimate relations between the two republics, and to remove forever any cai se of 
 difference between them, we avail ourselves of these conditions, mutually liberal, for 
 the definitive settlement of the former question of boundaries in the desert of Atacama." 
 
 The treaty of 1«74, which is the last which has been celebrated between Chili and 
 Bolivia for the purpose of introducing some modifications in the division of the profits 
 of the development of the frontier territory, which had been reciprocally recognized 
 in the treaty of 1865, strengthened the rights of Bolivia over the territory comprised 
 between the 23d and 24th parallels of latitude. Its first article is, in fact, the most 
 precise which could have been agreed upon, since it says : " The 24th parallel of lati- 
 tude, from the coast to the Andes at the divortia aquarnm, is the line between the re- 
 publics of Chili and Bolivia." 
 
 These stipulations, in their spirit as well as their form, are absolute and uncondi- 
 tional, and in nowise resemble the terms employed by nations in treaties in which a 
 cession of territory is agreed upon. Article 1st of the treaty celebrated between 
 France and Sardinia in 1859, in reference to the cession of Lombardy, is conceived in 
 these words: " His Majesty, the Emperor of Austria, renounces, in his name, and that 
 of his successors, his rights and titles over Lombardy." Almost the same terms are 
 employed in the cession of Monaco to France, of the cantons of Menton and Koeme- 
 brume, and of the more modern of Nice, in 1860. 
 
 It was necessary to set forth the antecedents to which I have referred, and which 
 extend over a period of twenty years, in order to present in a proper light the origin 
 of a dispute which culminated in the occupation of the Bolivian coast, and which has 
 led Chili to declare war against Peru. These antecedents, moreover, are indispensable 
 in order to arrive at a conclusion that the conflict between Chili and Bolivia, so long 
 sustained, was amicably settled in the treaty of 1866, and ratified iu 1874, wherein the 
 two high contracting parties reciprocally renounced the right which each claimed 
 over territory in Atacama. 
 
 It cannot, therefore, be justly held that Chili had ceded to Bolivia a portion of ter- 
 ritory which was indisputably the property of the former ; and still less that the trea- 
 ties already cited were conditional, as it is claimed by Chili. 
 
 Your excellency is well aware that treaties establishing boundaries, similar to those 
 recognizing the independence of a state, are not of a transient character, having the 
 special feature of being definite and unchangeable after they are once carried into 
 effect. Such treaties continue to exist even independently of a change of sovereignty 
 and of the form of government of a country, and that war itself cannot abrogate them, 
 as it does ipso facto all other treaties between the belligerents. 
 
 It is not true the treaty of 1874 is conditional, or that Chili has ceded her rights 
 
232 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 over the territory comprised between the parallels 23° and 24° of south latitude, on 
 condition of the non-imposition of additional taxes on Chilian industry and capital, 
 as is affirmed by Sefior Fierro. Chili could not cede that which had never belonged 
 to her, and still less stipulate conditions for similar concession. In the treaty of 1866 
 she recognized the dominion of Bolivia over the territory which extended to the 24th 
 parallel of latitude, declaring that that republic might exercise over that territory all 
 acts of jurisdiction belonging to the " lord of the soil." 
 
 This acknowledgment having been made in an absolute manner, it was not allowed 
 to subsequently revoke it by any stipulation of ulterior conditions. Chili had sol- 
 emnly declared Bolivia as the owner of the soil, and having considered her as such 
 during eight years, until treaty of 1874, in which very far from throwing any doubt 
 upon the rights which she had recognized to Bolivia in 1866, she saw fit to ratify them, 
 and could not fall back upon the old questions invoking the right of reoccupation, 
 ■which is completely rejected and abolished among all civilized communities. 
 
 Reoccupation implies unquestionable dominion.over the property to which it refers ; 
 and if Chili has never exercised dominion over the territories which she has just vio- 
 lently occupied ; if, far from this, abandoning her ancient claims she acknowledged 
 that that territory belonged to Bolivia, it is evideut that the right of reoccupation 
 which she has asserted is a contradiction in ideas, and an abuse in fact, and the integ- 
 rity of the treaty of 1874 cannot be brought forward as a counter-argument, for even 
 supposing that it had been abrogated by the alleged violations on the part of the Bo- 
 livian Government, things should have been restored to the condition in which they 
 were fouDd prior to the celebration of that treaty, and as a consequence Bolivia's 
 right of dominion over that territory should have remained unimpaired since it had 
 been recognized in an irrevocable manner in the treaty of 1866. 
 
 The Government of Chili has, however, ignored these obvious principles in the au- 
 tonomy of sovereign states ; and in the midst of peace has broken the treaty of bound- 
 aries by taking forcible possession of territory which she herself declared belonged 
 to Bolivia, and over which she had recognized the sovereignty of that nation from the 
 year 1866 to the 14th February last ; and she has proceeded to carry out her programme 
 invoking the absurd and untenable principle of reivindicacimi which she has herself 
 condemned in 1864, after the occupation of the Chincha Islands by the Spanish fleet, 
 thereby shaking the foundations underlying American nationalities, and creating 
 deep hatred and an unextingnishable desire for revenge, the tremendous consequences 
 of which it is impossible to foresee or calculate. 
 
 The origin being determined of the motive which primarily actuated Chili to take 
 possession of the Bolivian coast, as before stated, and afterwards to declare war 
 against Peru, I will now have the honor to explain to your excellency the policy 
 which has been pursued by my government in the conflict between those two republics, 
 and the true reason of the policy followed by the cabinet of Santiago. 
 
 From the 2d of January of the present year, when this ministry was apprised of the 
 first indications of a misunderstanding between Chili and Bolivia, it charged the rep- 
 resentatives of Peru at La Paz and Santiago to proffer, at any opportune moroent, 
 to the governments of both the good offices of this republic in order to avoid a rupture, 
 or in an amicable manner to avert all acts or measures which should render difficult 
 or impossible a peaceful solution of the questions then pending. 
 
 My government further recommended to Bolivia, in a most friendly way, either at 
 prolonged conferences; in this ministry between the undersigned and the envoy ex- 
 traordinary, Dr. Zoilo Flores, or through its representative at La Paz, the expediency 
 of suspending the execution of the law establishing a tax on nitrates at Antofagasta, 
 and the submitting of all difficulties to arbitration, which fact proves the earnest- 
 ness with which Peru endeavored to prevent a conflict, and the inaccuracy of the con- 
 trary asseveration which the minister of foreign affairs of Chili has been pleased to 
 make in his exposition. 
 
 On the 24th of January, that is to say 20 days before the occupation of the Bolivian 
 coast by Chilian forces, our representative stated to his Excellency the President of 
 Chili, in a special conference which he held with him during the absence of the min- 
 ister of foreign affairs, that he was authorized to interpo.-e the good offices of Pern in 
 order amicably to prevent any violent act which might embarrass or interrupt a set- 
 tlement with Bolivia. His Excellency accepted the offer enthusiastically, and responded 
 to it with a formal promise that no extreme measures would be adopted without no- 
 tifying the representative of Peru of the same. 
 
 Notwithstanding this our charge d'affaires expressed to Minister Fierro himself the 
 wishes of Peru, and when he had a right to expect compliance with the plighted 
 word of the President of the republic, he only received a courteous rejection of his 
 good offices and a notification that orders were given to occupy by force Antofagasta 
 and Mejillones, as was actually accomplished a few days later. Meanwhile Bolivia 
 had accepted the good offices of Peru, and yielded, as has been stated, to the demands 
 of Chili, which consisted in the suspension of the tax imposed on the exportation of 
 nitrate. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 233 
 
 Peru was not, therefore, indifferent to the difficulties which were accumulating 
 between Chili and Bolivia; its conduct, on the contrary, was that of a solicitous and 
 far-seeing friend; and if its good offices, which had been proffered before the outbreak 
 of hostilities, did not accomplish the desired end, it was due exclusively to the fact 
 that in the councils gf the Chilian cabinet it had been resolved beforehand, in an ir- 
 revocable manner, to seek the aggrandizement of its territory at the expense of its 
 neighbor and ancieut ally, and of the disturbance of the balance of power in this 
 section of the continent. 
 
 And a very clear and eloquent proof of Peru's lively interest in favor of peace is 
 found in the fact that, although its good offices have not been accepted, whereby it 
 considered its dignity to have been wounded, it was not disheartened or discouraged 
 in its efforts, but hastened to accredit to the cabinet at Santiago a minister plenipo- 
 tentiary, with the special mission of proposing a settlement with Bolivia on the ra- 
 tional and just basis of the evacuation of the invaded territory, and of the submitting 
 to arbitration of all difficulties existing with the latter republic. 
 
 Such repeated offers, the good faith of which Sefior Fierro has permitted himself to 
 doubt, by offensively insinuating that his Excellency the President of Peru had 
 stated "that an impulsive public opinion was exercising an undue pressure, and em- 
 barrassing his power," were afterwards confirmed by our special envoy in Santiago,, 
 who, during the month of his stay in that city, did not cease to devise and propose 
 various methods for a decorous agreement, without any result but the sad conviction 
 that the Government of Chili was firmly bent upon sustaining, by all means, the usur- 
 pation of Bolivian territory, and the declaration of war with which she had responded 
 to the efforts made by my government in behalf of peace. 
 
 At various conferences which our envoy held in Santiago with his Excellency the 
 President, as well as with his minister of foreign affairs, it was always sought to hide 
 from him their secret designs by speaking in such terms as to make him expect the 
 possibility of the evacuation of the Bolivian coast, for the purpose of wringing from 
 him a declaration of absolute and unconditional neutrality, and if not officially, at least 
 through respectable sources, certain ignominious arrangements were proposed to him, 
 which our representative rejected with dignity, as had been previously done by our 
 charge' d'affaires, notwithstanding the fact that those propositions favored Peruvian 
 interests. Among them was that of dividing Bolivia between Chili, Peru, the Argen- 
 tine Republic, and Brazil, aud making of it, in the words which were employed, an 
 American Poland ; and another proposal was that Chili should retain the Bolivian 
 coast, that Peru should cede Iquique and Arica to Bolivia, and that Peru should 
 receive in exchange the Ecuadorian province of Guayaquil. 
 
 At the time that this occurred in Santiago, the representative of Chili in Lima 
 addressed to this minister a note which was immoderate and studiously provoking, 
 demanding an explanation of the attitude of the Peruvian press and people, which 
 were but feebly replying to unstinted provocations of the Chilian press and people, 
 falsely and slanderously charging my government with having furnished to Bolivia 
 arms and munitions of war ; demanding an explanation as to the existence of a treaty 
 of alliance which united Peru and Bolivia, and which at that date was kept secret ; 
 and, lastly, requiring a categorical declaration of Peru's neutrality in the presence of 
 the events which had occurred, and those which were probable, so long as Chili 
 continued to defend by force of arms the Bolivian territory which she had occupied. 
 
 The negotiations having been established in Santiago, and this ministry believing 
 that the Chilian cabinet was imbued with a more peaceful and conciliatory spirit 
 than that which was manifested, in all his acts, by their plenipotentiary in Lima, it 
 hastened to address Sefior Lavalle, empowered ad hoc, a note in which are satisfac- 
 torily disposed of all the charges which were brought against my government, and 
 recommending him to read the same to Sefior Fierro and leave with him a copy of the 
 document if he desired it. 
 
 This note, which was dated the 22d of March last, will be found among the docu- 
 ments annexed to the memorial which this office has just submitted to the extraor- 
 dinary Congress, which opened its sessions on April 24th, and which I inclose, in order 
 that your excellency may, if you deem it necessary, verify this and other facts to 
 which reference is being made, and form an accurate opinion as to the proceedings of 
 both republics. 
 
 In said document my government declared that asitdidnot then have official knowl- 
 edge of the occupation of the Bolivian coast, and as it was not aware of the significance 
 and true aim of that act, the opportunity had not yet arrived to express its opinion 
 and define the attitude which it should assume, and that its policy depended upon 
 two conditions which could not be disregarded, to wit, the existence of the treaty of 
 defensive alliance binding Peru to Bolivia, and the decision of the national Congress, 
 which had been convened for the exclusive purpose of marking out the liue of conduct 
 which the government should follow. 
 
 The minister of foreign affairs of Chili, however, presumes to affirm that the cabinet 
 of Lima promised the Chilian plenipotentiary the neutrality of Peru. The inaccuracy 
 
234 AFFAIRS IN , CHILI, PERU, AND BOLIVIA. 
 
 of this assertion is demonstrated not only by -what I have already set forth, but also 
 by the positive declarations which were directly and repeatedly made to the Chilian 
 Government by our plenipotentiary, SeDor Lavalle, that Peru could not and should 
 not remain neutral in Chili's contest with Bolivia 
 
 Another assertion equally inexact, among the many which are contained in the 
 exposition, is that which supposes that the promise had been made to Senor Godpy 
 to suspend the warlike preparations commenced from the moment that the manifestly 
 hostile designs of the Government of Chili became known. Far from this, on several 
 occasions upon which that gentleman visited this ministry I stated, with the frank- 
 ness which characterizes the Peruvian people, that we were arming ourselves in anti- 
 cipation of whatever eventualities might arise, but that our preparations should not 
 be looked upon by Chili as threatening, because they should not be regarded as of an 
 aggressive character; and being satisfied with my representations, he repeatedly stated 
 that he could understand that Peru's interest and political position could not allow 
 her to remain neutral in the contest between Chili and Bolivia, and that he had com- 
 municated this impression to his government. 
 
 Nor is it true that Peru, while exercising its mediation at Santiago, had supplied 
 Bolivia with arms and ammunition; and my government hastened to repel this charge 
 with becoming dignity, at the very moment when it was advanced by the Chilian envoy. 
 Not only did Peru carry its good faith and peaceful inclination so far as to refuse war- 
 like supplies to Bolivia, but it endeavored to prevent the departure from La Paz of the 
 army, which was burning with ardor to rush to the recovery of their country's usurped 
 territory, as well as the sailing of a privateer which the Government of Bolivia, which 
 is not a signatory to the declaration of Paris of 1*56, had prepared to prey upon a rich 
 and defenseless commerce. She omitted nothing in her unconquerable purpose of 
 amicably settling the differences between the two countries. 
 
 The Government of Peru could not think or act otherwise ; because, aside from the 
 interest which it has ever felt and evinced in the preservation of peace among the 
 South American States, and confiding in the good relations which bound it to its 
 neighbors, it lived without troubling itself with preparations for war, and exclusively 
 devoted itself to the improvement of the critical commercial condition in which it 
 found itself, and which for some time back has impeded the development of its re- 
 sources; the army, moreover, was distributed over points of its vast territory and was 
 strictly reduced to the peace footing prescribed by law during peaceful times, and the 
 fleet, as is well known to the public and foreign representatives resident in this capi- 
 tal, was almost disarmed, which circumstance, up to the present day, has prevented 
 its leaving the harbor of Callao and repairing to the dislodegment of the Chilian fleet 
 from the southern ports of the republic, that it may not continue its work of burning 
 commercial and defenseless towns, and throwing shells on trains filled with women 
 and children. 
 
 A nation completely disarmed as was Peru, and fearful that its interests should be 
 compromised in the struggle if the contending republics did not arrive at some under- 
 standing, could not but labor sincerely and enthusiastically in favor of peace, and my 
 government did so, suppressing the deep indignation produced in its own conviction 
 and that of the whole country by the scaudalous outrages against our consulates in 
 Valparaiso and Antofagasta, committed in the presence of the Chilian authorities and 
 forces, and which no doubt were expressly prepared with a view to provoke a rupture 
 in the good relations which had been maintained up to that time. 
 
 "While my government in this manner sought to avoid a sanguinary war, the Gov- 
 ernment of Chili dallied with the Peruvian plenipotentiary by offering hopes of an 
 arrangement which was not regarded as impossible ; and as soon as preparations for war 
 which had been carried on had been completed, it suddenly and brusquely severed 
 relations with the Peruvian en voy, while at the sanle time the Chilian minister at this 
 capital demanded his passports ; and immediately, and without a formal declaration 
 of war, began the blockade of Iquique, and committed those acts of vandalism to 
 which reference has been made. 
 
 In order to justify these proceedings it simply alleges the preparations which were 
 making in our fleet, the dispatching of a division of 1,500 men to the port of Iquique, 
 and the existence of a secret treaty which Peru had celebrated with Bolivia in 1878. 
 The enunciation of these fundamental facts is sufficient to reveal their insignificancy 
 and the evidence that the conduct of our adversaries was influenced by other and hid- 
 den motives which they dare not express because they would produce profound indig- 
 nation among the nations of the earth. 
 
 The preparation of our fleet and the transfer of 1,500 men to Iquique on the break- 
 ing out of the war between two republics, who were our immediate neighbors, could 
 not have been a cause of surprise to Chili, for it is quite natural that the nation should 
 prepare itself for the possible emergencies which a war would be likely to produce, 
 especially when it is carried on at its very borders, as has happened in this case. The 
 Chilian Government had received, moreover, positive and repeated official declarations 
 as to the character of the preparations going on in our fleet, which were merely mate- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 235 
 
 vx&\ as well as of the movements of the small force mentioned ; and it should hava 
 Sioch "convinced that they were not aggressive, as was subsequently borne out by the 
 facts. 
 
 The treaty of alliance with Bolivia could not likewise be construed as a cause for 
 war, inasmuch as in its celebration the contracting parties merely proposed to guaran- 
 tee to -each other their independence, their sovereignty, and the integrity of their re- 
 spective territories through their mutual defense against any aggression by other na- 
 tions, which fact does not imply an offense against any state whatever. Similar alli- 
 ances abound in the department of fmvign affairs of other nations, and have never 
 •give.il rise to doubt as to the good faith of the government celebrating them. 
 
 The impersonal character of the treaty, its abstract stipulations, and the conditions 
 .tixed for declaration of the casus ftrderis demonstrate that it could have referred to 
 'Chili only after that country should have of her own accord made the fulfillment of 
 the ta-eaty necessary. This treaty, moreover, did not render a war inevitable, but on 
 *he contrary required a resort to conciliatory methods which were opportunely offered 
 iby Perw without the necessity of concealing under the guise of mediation the charac- 
 ter of a beligerent. 
 
 On the other haud, the existence of this treaty, notwithstanding the secrecy of its 
 •character by virtue of one of its stipulations, was not unknown to Chili. Her public 
 mien, and even her ministers of state, at different periods, have mentioned it aud fre- 
 quently referred to its contents. 
 
 Moreover, the Chilian Government had official knowledge of its existence from the 
 -commencement of the troubles with Bolivia, as the President of this republic and the 
 ^undersigned communicated to Seiior Godoy its principal stipulations, which, far from 
 "embarrassing, supported and justified the mediatory and friendly attitude which Peru 
 liad assumed in its efforts to avert war between two friendly republics, and to avoid 
 the occurrence of the emergencies which would necessitate bringing into effect the 
 secret alliance. 
 
 Nor did the stipulations of the treaty render impossible the neutrality of Peru. If 
 Ohili had not occupied the Bolivian coast, invoking the absurd principle of revindica- 
 tion which violates the uti possidetis of 1810 and threatens the territorial integrity of 
 South American States ; if Chili had not harbored the purpose of taking forcible pos- 
 session of that which had never belonged to her; if, deriving her inspiration from a 
 sound judgment, (Jhili had confined her efforts to obtain through coercive measures the 
 interpretation which she places upon Article IV of the treaty of 1874, arrogating to 
 lerself the settlement of a question which properly belongH to Bolivian jurisdiction, 
 Pern would undoubtedly have had no cause for interference in the contest ; for so long 
 as the integrity of Bolivian territory was not menaced the casus fwdei-is would not have 
 3ueen invoked, and Peru would have remained neutral and endeavored to prevent the 
 war and the severance of the good relations between the two countries which the hos- 
 tilities already commenced presaged. 
 
 In 187:5 Bolivia was threatened with territorial dismemberment, as was also the 
 Argentine Republic. These threateuings gave rise to the alliance, the aims and ten- 
 dencies of which are eminently American, since they are calculated to avert war among 
 nations to which peace is necessary for their development and prosperity. Chili had 
 irrevocably settled its boundary question with Bolivia since 1866 ; and the later treaty, 
 «elebrated in 1874, proves that it was not the cause nor the object of the alliance, unless 
 Chili should venture, as it has done, upon the forbidden ground of scandalous usur- 
 pation. 
 
 The idea that the alliance was inspired by the necessity of forestalling the clamor of 
 the nitrate proprietors in Tarapaca, despoiled of their industry, lacks foundation, and 
 is evidently irrelevant. The expropriation of the nitrate works has cost Peru more 
 than 20,000,000 ; and the price paid to those who voluntarily disposed of them, and in 
 the price so paid, will be found by those who do not close their eyes to the light of evi- 
 dence an indemnity which was in some cases far above what justice itself would have 
 demanded. There can be no spoliation when the price of a property is paid and in- 
 demnity guaranteed. Peru did both, ami does therefore not deserve the insults which 
 liave been launched at her in the exposition of the Chilian minister of foreign affairs. 
 
 To construe into a cause of alliance between tw o nations the necessity in which the 
 government of one is placed to avoid claims which may be preferred by the nitrate 
 manufacturers in opposition to the fiscal measures which that nation may have adopted, 
 is a singular proposition which none can accept. Such allegations simply demonstrate 
 that Chili was preparing to constitute herself the champion and defender of the nitrate 
 manufacturers who had been abundantly remunerated for the value of the oficinas which 
 ■ they had voluntarily sold to the state ; since, only in this manner can we understand 
 that the minister of foreign affairs should perceive in the alliance the consummation of 
 the expropriation of the nitrate works and an offense against his country. 
 
 But while it is true that before, impartial minds it cannot be maintained that such 
 expropriation inspire the idea of alliance, we must agree that it insured for Peru aud 
 Bolivia the nitrate monopoly and the multiplied interests which are connected there- 
 
236 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 with, by laying the foundation of a prosperous business which Chili coveted and was 
 determined to wrest from us at all hazzards. Up to that time Peruvian productions 
 had equaled Chili's balances of trade abroad ; and after, by force of circumstances, 
 the latter's capitalists had withdrawn from Tarapaca, her ambition revived, and she 
 returned to her efforts for the acquirement of new territories which should offer a fresh 
 field for her decaying activities. This alone can explain the policy of Chili. She needs 
 riches in her present critical financial condition, and as they cannot be found on her 
 exhausted territory, she seeks to obtain by force of arms those which belong to hcr 
 neighbors. Such are the teachings of the justice which she so loudly proclaims, and 
 of the civilization which she boasts. 
 
 The real cause therefore of the war which Chili has declared agaiust Peru is to be 
 found in her vaulting ambition, in her vehemeut desire to grasp the Bolivian coast, 
 which abounds in guano, nitrates, and other minerals. This she has been seeking for 
 years without hesitating at the employment of any means, even those which are for- 
 bidden, and she incessantly seeks the accomplishment of her ends. Taking advantage 
 of Bolivia's internal difficulties, Chili attempted to wrest from her the territory com- 
 prehended between the '23d and 24th parallels of sonth latitude ; aud not satisfied 
 with this concession, she has endeavored to set Bolivia at war with Peru, by promising- 
 assistance, as I have already stated, in the work of seizing the department of Tarapaca 
 in exchange for the territory bordering on the Loa. 
 
 There is no act of faithlessness which Chili has not practiced against Peru under 
 cover of the good relations existing between them. Neither the sacred interests or 
 America, nor the dignity of nations, nor the respect due from one state to another, 
 nothing has sufficed to satiate her inordinate ambition. Immediately after the Spau- 
 ish forces occupied the C'hincha Islands under Admiral Pinzon, instead of taking the 
 side of South American interests Chili endeavored to establish closer relations with 
 Spain and to arrange with Ecuador an offensive alliance against Peru, to the end that 
 the latter, crushed by the calamities of war. and in the midst of the difficulties which 
 then embarrassed her means of defense, should succumb, and become the foundation 
 for the realization of Chili's unholy ambition. 
 
 While the truce with Spain had not yet been agreed upou and the state of war, there- 
 fore, still continued, the Chilian representative in London, without Pern's knowledge 
 and acquiescence, arranged with the representative of Spain to obtain from England's 
 ship-yards the vessels which both had ordered to be built, thus allowing a common 
 enemy considerable to increase her naval forces. 
 
 Not having then realized her perfidious combinations she ordered the construction 
 of powerful iron-clads which might enable her to assert supremacy in the Pacific and 
 impose her will upon the nations of the Continent. As soon as she felt her strength 
 she renewed her task against Peru by inspiring the governments and leaders of Boli- 
 via with the idea of seizing a portion of our territory ; and availing herself of the first 
 opportunity which offered she has declared war against us, which has been her aim 
 for many years, as the question with Bolivia has been a mere pretext which is proved 
 by several very important public documents in which she has proposed to that power 
 immediate peace, and the compensation of her territory with the more valuable pos- 
 sessions of Peru. 
 
 In the light of these antecedents your excellency will appreciate the true motives 
 with which Chili has declared war against us, and will perceive upon which side jus- 
 tice lies. 
 
 In themean time Peru, prematurely drawn into the conflict, places her destinies un- 
 der the protection of Providence, relying on the justice of her cause, and depending 
 upon the alliance with the noble Republic of Bolivia, trusting in the devotion of her 
 sons and the tried bravery of her army and navy, she cherishes the conviction of her 
 ability to punish her gratuitous enemy. 
 
 With sentiments of the highest consideration, I have the honor to subscribe myself 
 vour excellencv's obedient servant, 
 
 MANUEL IRIGOYEX. 
 
 No. 166. 
 J/r. Christiancy to Mr. Evarts. 
 
 ]STo. 25.] Legation of the United States, 
 
 Lima, Pent, June 25, 1879. (Received July 16.) 
 Sir : Referring to my dispatch Xo. 20, in reference to the decree of the- 
 Bolivian President authorizing privateers, 1 have to say that hav- 
 ing lately heard reports that Bolivia had been making efforts at Mon- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 237 
 
 tevideo to get vessels to take commissions as privateers, that they were 
 making like efforts in California, and expected also to fit out privateers 
 in ports of Peru, it occurred to me that as Peru and Bolivia were allies 
 in this war, I might with propriety, in the most informal and friendly 
 manner, call the attention of the minister of foreign affairs of Peru 
 to the decree of President Daza and suggest to him the poiuts of 
 conflict which might arise between that decree and the treaty of the 
 United States with Bolivia. I accordingly called upon the minister and 
 stated that it was my wish in the most informal and friendly manner to 
 call his attention to the conflicts which might arise between the princi- 
 ples announced in President Daza's decree and the treaty between the 
 United States and Bolivia, which I proceeded to do; and I took the lib- 
 erty also to state that if privateers should be fitted out in Peruvian 
 ports under the decree of the President of Bolivia and to be governed 
 by the principles aunounced in that decree, it might become my duty to 
 make a formal protest to the Peruvian Government against such action. 
 But I stated at the same time that I made these suggestions upon the 
 principle that it is better to avoid difficulties and misunderstandings of 
 this kind in advance than to undertake to remedy them afterwards; and 
 that it had occurred to me that as Peru was in alliance with Bolivia in 
 this contest a friendly suggestion made by him to the proper officer 
 of the Bolivian Government might be well received, and that the Presi- 
 dent of Bolivia might be induced so far, at least, to modify his decree 
 as to prevent conflicts arising under the treaty of Bolivia with the 
 United States. 
 
 These suggestions were received by the minister in a spirit of the ut- 
 most kindness and cordiality, and he assured me that he would take 
 occasion in a like friendly aud informal manner to bring them to the 
 attention of theBolivian Government; and that he thought I need have 
 no fear that Peru would allow anything to be done in her ports which 
 would be likely to conflict with the rights of the United States under 
 their treaties with either belligerent, 
 I have, &c, 
 
 I. P. CHKISTIAXCY. 
 
 No 167. 
 
 Mr. Uvarts to Mr. Christiancy. 
 
 y 24.] Department ov State, 
 
 Washington, June 26, 1879. 
 
 Sir: I transmit herewith, for your information, copy of an instruc- 
 tion addressed by this Department on the 23d instant to Mr. Pettis, the 
 United States minister resident and consul-general at La Paz, Bolivia, 
 in relation to the intimation lately received through British official 
 channels that the issuance of letters of marque had been decreed by the 
 Bolivian Government, and that agents thereof were already on their 
 way to the United States. A copy of the circular published by the 
 Treasury Department on the 21st instant, addressed to collectors of cus- 
 toms and others whom it may concern, touching the observance of the 
 neutrality laws of the United States, is inclosed. 
 
 In the fortunate absence of any intimation that Peru, as the ally ot 
 Bolivia, has contemplated, or contemplates, any action which might even 
 remotely infringe the international obligations or domestic laws of the 
 
238 AFFAIRS IX CHILI, PERU, AND BOLIVIA. 
 
 United States, it is unnecessary to instruct you to make official commu- 
 nication on this subject to the minister of foreign affairs, but you may, 
 should you deem it pertinent, intimate to him that this government is 
 using, and proposes to use, every effort to secure the complete observ- 
 ance of the neutrality laws of the Uuited States, both by their own citi- 
 zens and on the part of those of the belligerent. 
 I am, &c, 
 
 WM. M. EYAETS. 
 
 Xote. — For instructions to Mr. Pettis and Treasury circular, Docu- 
 ment Xo. 2. 
 
 Xo. 168. 
 
 Mr. Evarts to Mr. Tracy. 
 
 Department of State, 
 
 Washington, June 27, 1879. 
 Sir : I have the honor to acknowledge the receipt of your note of the 
 24th instant with the '' contra-manifesto" of Peru, relating to the motive 
 of +he war now being waged between her government and that of Chili. 
 Accept, sir, &c, 
 
 WM. M. EYAETS. 
 
 Xo. 169. 
 
 Mr. Christ iancy to Mr. Evarts. 
 
 No. 34.] Legation of the United States, 
 
 t Lima, Pern, July 15, 1879. (Eeceived August 7.) 
 
 Sir: I inclose a copy of my letter of June 8 to J. W. Merriam, esq,, 
 our consul at Iquique, on the subject of blockade. This ought to have 
 been sent you promptly at the time, but I was deficient in clerical force, 
 and it was laid aside for the time, and overlooked until now. 
 
 I will say that at the date of the consul's letter, May 23, the blockade 
 of Iquique had been raised by the Peruvian forces, and the consul stated 
 he had been informed, by some gentlemen who professed to know, that: 
 by the rules of international law it could not be re-established without 
 a three months' notice. 
 
 I will further say, as relating to the same subject (the blockade of 
 Iquique) that both Chili and Peru have become parties to the treaty of 
 Paris, which, among other things, defines what shall constitute a suf- 
 ficient blockade. That from the time of re-establish men t of the blockade 
 at Iquique, about the 1st of June, until the 10th instant, or about that 
 time, no question has been made of the sufficiency or efficiency of the 
 blockade. But it seems that about the time last mentioned, or a little 
 before, the Chilian blockading-squadron adopted the plan of withdrawing; 
 at night from the vicinity of the town to the distance of four, live, or six 
 miles or more — fearing, as it is believed, the effect of torpedoes which 
 the Peruvians and Bolivians (who are in possession of the town) might 
 be able to use — and on the night of the 10th instant the Huasear, a Pe- 
 ruvian iron-clad, turreted vessel, of greater speed than the Chilian iron- 
 clads, made her way without difficulty into the port, remained there 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 239 
 
 long enough to communicate with the allied forces on shore, and then, 
 toward the dawn, sailed out in search of the, Chilian fleet. She soon 
 fell in with the Chilian transport Matias Cusino, a partially armed 
 wooden vessel, and immediately attacked her, principally with small- 
 arms, and demanded her surrender, which demand was at once complied 
 Avith, and a prize-crew sent oft' in boats to take possession ; but at that 
 moment the Chilian corvette Abtao, the Magallanes, and later the iron- 
 clad Cochrane made their appearance. 
 
 The Huascar at once recalled the prize crew she was sending out, and, 
 having no time to take possession of the prize, she fired some heavy 
 shot into her hull, disabling her. Then, seeing the Chilian fleet coming 
 down upon her, she sought to make her escape, and in doing so, came 
 in contact with the Abtao, with whom she at once engaged, and the 
 combat was continued nearly an hour, when first the Magallanes and 
 next the Cochrane coming within range, the Huascar left after doing- 
 serious damage to the Abtao, and by reason of her greater speed was 
 enabled to make her escape, with very slight injury. "What may have 
 taken place since in the port of Iquique, I am not informed. 
 
 But it is now insisted here by the Peruvian press, that the blockade 
 is shown to be ineffectual, and that it should be treated as absolutely 
 ended for all purposes. A strong effort, I have no doubt, will be made 
 to induce the diplomatic representatives (of the neutral powers) here to 
 take this ground. What may be the opinion of the other ministers here 
 upon the point, I am not yet informed ; but, for myself, I am not yet pre- 
 pared to take so broad a ground upon the facts already existing, but on 
 the other hand I am inclined to think the facts only show an unsuccess- 
 ful attempt to raise the blockade by force. 
 
 If any mercantile vessel had in the night (say of the 10th instant), and 
 without actual notice of the blockade, ,got into the port, she could not 
 have been held guilty of a breach of the blockade for so doing. And it 
 may be worthy of careful consideration whether, if this practice of with- 
 drawing the blockading force so far from the port at night should be 
 generally kept up hereafter, neutral nations might not be justified in 
 treating it as ineffectual, and therefore nidi. But I do not intend to come 
 to any hasty opinion upon this point, and propose to wait till the con- 
 tingency renders its determination necessary. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure 1 in No. 34.] 
 
 Mr. Christiancy io Mr. Merriam. 
 
 Legation of the United States, 
 
 Lima, Peru, June 8, 1879. 
 
 Sir : I notice that in writing to you on the 1st instant, I overlooked one point in 
 your letter, viz, that in reference to* the fact of the blockade having been raised, and 
 the question of the length of time necessary to re-establish it. I will say in answer 
 to your question that I know of no rule of international law which would require 
 three months' notice to re-establish the blockade. But it requires the same notice (and 
 no other) that it required to establish it in the first instance; and that, as I under- 
 stand it, is reasonable notice, having reference to all circumstances existing at the 
 time and place. The notice is mainly if not entirely for the benefit of neutrals, and 
 should be sufficient to all or any neutral ships in port to leave with any cargoes they 
 may have on board at the time ; but they can take on no more cargo after notice of 
 the blockade, except with the assent of the blockading squadron, as the recognized 
 purpose of a blockade is to put an end to the foreign commerce of the port, and thus 
 to weaken the power of the nation to which the port belongs. 
 
240 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Aud as to vessels approaching the port for commercial purposes, they will not he 
 liable to capture unless, after they receive actual notice of its existence, they attempt 
 to enter, in which case they would be liable to capture and forfeiture. But this 
 blockade, not having been formally notified to the governments of neutral powers, so 
 as to give room for the doctrine of implied notice to the ships of such nations ; such 
 ships are not to be seized until they shall have received actual notice, which naturally 
 will be given them on their approach by the blockading squadron. 
 
 And as to the nature of a blockade itself, you may take it for granted that no mere 
 paper blockade will be recognized by neutral powers, but only such as are maintained 
 by an adequate force. Such an actual force as to render it impossible, or, at least, im- 
 minently dangerous, for a vessel to enter the port. But, of course, this doctrine is 
 liable to some qualification. The presence of such force is not required to be abso- 
 lutely perpetual under all circumstances ; as in the case of a storm which may tem- 
 porarily disperse the blockading force, they will be allowed a reasonable time to re- 
 sume their position. But, if they voluntarily and completely leave the port so as 
 clearly to indicate a disposition to abandon the blockade, or if they are driven off by 
 the enemy, and the enemy get complete control of the port for a few days (perhaps 
 for a single day) the blockade is ended. 
 I am, &c. 
 
 J. W. Merriam, Esq., 
 
 United States Consul, Iquique. 
 
 I. P. CHRISTIANCY. 
 
 No. 170. 
 
 Mr. Evarts to Mr. Tracy. 
 
 Department of State, 
 
 Washington, July 19, 1870. 
 Sir : I have the honor to acknowledge the receipt of your note of the 
 16th instant, and of the report of the Peruvian minister of foreign af- 
 fairs, presented to the congress convened on account of the war now in 
 progress between Pern, Chili, and Bolivia, and to express the thanks 
 ■of the government therefor. 
 
 Accept, sir, &c, 
 
 WM. M. EVARTS. 
 
 No. 171. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 36.] Legation of the United States, 
 
 Lima, Peru, July 20, 1879. (Received August 15.) 
 
 Sir: I have not recently written you anything (excepting in an inci- 
 dental and collateral way) upon the progress of the war, because it is 
 very difficult to discover that any real progress has been made, except 
 in the way of raising soldiers and transporting them with munitions of 
 war to some field of anticipated operations, and some indecisive and com- 
 paratively unimportant naval operations. 
 
 By land, the desert of Atacama as effectually separates the armies of 
 ■Chili on one side, and Peru and Bolivia on the other, as the broad Pa- 
 cific separates the armies of either from those of China. 
 
 Neither party seems to have a navy with sufficient transports to con- 
 vey an efficient army with its necessary stores and munitions into the 
 territory of the other, at any great distance from that part of Bolivia 
 
AFFAIRS IN CHILI, PEEU, AND BOLIVIA 241 
 
 which approaches the coast, and no decisive action has taken or is likely 
 soon to take place between the fleets. That of Chili would be much 
 the most efficient if a general engagement could be brought about. The 
 Peruvians know this and avoid it, but, with their lighter and swifter 
 vessels, play around the ponderous Chilian iron-clads with impunity, per- 
 forming the most efficient service, rendering the iron-clads compara- 
 tively useless. These last would do the most effectual work if the work 
 were brought to them to be done ; but unless they can greatly increase 
 their speed they are not likely to find such work at the right time and 
 place to render it of much consequence. 
 
 Chili thus far has. by her own mode of carrying on the war, conferred 
 a great favor upon Peru and Bolivia, by transferring the field of opera- 
 tions to the very locality which they would naturally have chosen, the 
 point where their forces can readily form a junction and operate in con- 
 cert. And they seem to be now acting in entire harmony, having an 
 efficient combined land force in that region of between 28,000 and 32,000 
 . men, which can be readily concentrated. And the Chilian fleet is too 
 small, compared with the size of the Pacific Ocean, to enable that fleet 
 seriously to endanger the free water communication between the field 
 of operations and the Peruvian base at Callao. 
 
 Such is substantially the condition of military affairs to-day. It is 
 liable to be changed at any time, but no one can foresee just what that 
 change is likely to be. In the mean time all the parties are rapidly 
 exhausting their finances, if in fact either can be said now to have any 
 financial resources, for both are on the verge of bankruptcy. The peo- 
 ple of all these belligerent countries are poor, and need all their re- 
 sources. 
 
 If the war continues long, further complications are to be feared. The 
 attitude which the Argentine Eepublic seems to have assumed (accord- 
 ing to the intelligence received here, but of which you will be better 
 informed) in rejecting the recent treaty made with Chili, looks ominous 
 for the latter ; and if this intelligence should prove correct, Chili seems 
 to be threatened with dismemberment, a result which, in my opinion, 
 would be disastrous to all parties, and which would operate for centuries 
 to come as a cause of commotion and of constantly recurring revolu- 
 tion. In the meantime, while the present war lasts, it not only absorbs 
 all the means of the belligerents and retards all progress in developing 
 their resources and improving their material prosperity, but practically 
 annihilates all commerce with neutral and friendly nations. 
 
 It is, therefore, as it seems to me, clearly for the interest not only of 
 the belligerents, but of all other nations, that peace should be brought 
 about between them at the earliest practicable moment. And our own 
 government more than all others seems to me to be interested in such a 
 result ; as all these republics have sought to follow the example of the 
 United States, which must naturally feel, to some extent, responsible 
 for their success. 
 
 I cannot speak with any confidence of the disposition of Chili, but I 
 am entirely satisfied that both Peru and Bohvia would more readily 
 accept the intervention or advice of the Government of the United 
 States than of any other government in the world. Of this I have be- 
 come satisfied from various informal and familiar conferences. And if 
 either of the belligerents (Peru and Bolivia on one side or Chili on the 
 other) could be induced to make a proposition for peace on the basis 
 that Chili should first evacuate and surrender the territory, the seizure 
 of which from Peru and Bolivia was the commencement of the war, and 
 that all matters in dispute (boundaries, violation of treaties, expenses 
 S. Ex. 79 16 
 
242 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 of the war, &c), should be referred to the Government of the United 
 States or any department thereof, I am strongly inclined to believe 
 that the proposition would be accepted by all the belligerents. 
 
 Mr. Pettis, our minister to Bolivia, who feels a deep interest in bring- 
 ing about peace, and has, as he informs me, learned through the cor- 
 respondence with Mr. Osborn at Santiago, that he also is very desirous 
 of the same result, telegraphed me on the 8th of this month from Puno 
 (on the shore of Lake Titicaca), requesting me, at his expense, to meet 
 him at Mollendo (on the coast), "in the interest of peace," and to tele- 
 graph him at Arequipa, &c. I telegraphed him at Arequipa that I 
 could not come, but that I should write him at Mollendo, which I did 
 on the 9th (which was the first mail). And as that letter shows my 
 reasons for not complying with his request, I inclose a copy of it, with- 
 out (otherwise) repeating the reasons for declining to go. I will say, 
 however, that before receiving the telegram of Mr. Pettis I had ascer- 
 tained exactly the position of the Peruvian Government in reference to 
 the only basis upon which (in the present condition of affairs) they 
 would be willing to enter upon negotiations looking to a termination of 
 hostilities, but 1 was entirely ignorant of the disposition of Chili, and if 
 I could have been assured that Chili was ready to make a proposition 
 for negotiations upon the only basis which Peru would (under present 
 circumstances) entertain, I might have ventured to meet Mr. Pettis at 
 Mollendo, as proposed by him. 
 
 On the 18th, Mr. Pettis came to Lima, and I called upon him at his 
 hotel and invited him to the legation, an invitation which he accepted. 
 He seemed to feel very sanguine that by our efforts a peace might be 
 effected. But, though he had corresponded on the subject with Mr. 
 Osborn, he could give me no definite information as to the terms npoD 
 which Chili would be willing to enter upon negotiations to that end. 
 
 But I went with him to the minister of foreign affairs of Peru, who 
 fixed a meeting for 2 o'clock p. m., of the ISth, which we attended. Mr. 
 Pettis then explained his interviews with the Bolivian authorities, and 
 presented the paper showing the result, a copy of which I here inclose 
 {marked Exhibit Xo. 2, which is a translation by the interpreter for the 
 Bolivian Government), and he submitted the questions : 1st. Whether, 
 if our minister in Chili could give assurance that Chili would be willing 
 to accept a proposition for peace upon the basis indicated by that paper, 
 Peru would be willing to take the first step by offering to Chili such a 
 proposition? 2d. If not willing to make the proposition, would Peru 
 accept it, if Chili should propose itl 
 
 The minister of foreign affairs asked time to consult the other mem- 
 bers of the government, and appointed 9 o'clock in the evening of the 
 same day, at his room at the palace, to give an answer. We met as pro- 
 posed, and the minister then assured us that if Chili should make the 
 proposition the basis indicated by the Bohvian authorities (as stated 
 in the inclosure herein, ~$o. 2), Peru would accept ; but that, considering 
 the mode in which Chili had brought on the war (I give the substance, 
 not the exact words which were given through an interpreter), Peru 
 could not consent to make the proposition. This I thought sufficiently 
 specific. But Mr. Pettis then drew up two questions in writing, which 
 he asked the minister to answer ; the first of which was the same to 
 which he had already given a direct affirmative answer, and to which 
 he again answered in the affirmative. The second question was drawn 
 in words which I did not consider very clear or definite, but which, as 
 verbally explained by Mr. Pettis and myself through the interpreter 
 (who is an attache" of the Peruvian legation in Bolivia, and had accom- 
 
AFFAIRS IN CHILI, PERU. AND BOLIVIA. 243 
 
 panied Mr. Pettis), this second question was precisely to the effect of 
 question No. 2 herein inclosed (marked inclosure No. 4) ; and to this 
 question, as thus interpreted and explained to him, he gave an affirma- 
 tive answer. 
 
 I am compelled to say that in conversation with Mr. Pettis after this 
 interview, he persisted in claiming that the Peruvian minister of for- 
 eign affairs had given an affirmative answer to the questions which he 
 had proposed to him, and in the form proposed and written by him; 
 but I am also compelled to say that the minister did not answer the 
 last question at all, in the form proposed by Mr. Pettis, but only in the 
 form I have given it in question No. 2, as explained to and understood 
 by the minister. 
 
 Another meeting was fixed with the minister of foreign affairs for 1 
 p. m. of the 19th, but being compelled to go to Oallao in the morning. I 
 was not able to get to the palace until 1.20 p. m., when I met the min- 
 ister and Mr. Pettis, and I do not know what had taken place between 
 them before I arrived. But when Mr. Pettis, at the time of our leaving, 
 assumed to declare to the minister that both he (Mr. Pettis) and myself 
 were confident or had no doubt that Ghili would consent to make the 
 proposition or one of the two propositions in question, I felt con- 
 strained to say and did say to the minister, that while I hoped for such 
 a result, yet, being without any special information upon the subject, and 
 compelled to judge only from an outside view of the situation, equally 
 known to him, I did not feel the same degree of confidence that my col- 
 league had expressed, though I hoped for the same result. But that 
 while it seemed to me that cool and sound judgment might dictate this 
 course to Chili, yet, in the midst of a war of this kind, the passions as 
 well as the judgments of men must be taken into the account, and that 
 in this view, while my own judgment might satisfy me that it would 
 be well for Chili to make such a proposition, I could not feel any high 
 degree of confidence that the Government of Chili would take the same 
 view. 
 
 Mr. Pettis left by the steamer of last evening for the south, declaring 
 his intention to go to Santiago to see Mr. Osborn, and endeavor to per- 
 suade the Chilian authorities to make the proposition in question. I 
 sincerely hope he may succeed. 
 
 If I could communicate with you by telegraph 1 should inquire of 
 you whether, if Chili should make such a proposition as that contained 
 in the second question above alluded to, the ministers of the United 
 States would be allowed to meet at Mollendo and to decide upon the ques- 
 tion referred to them. But, as little time could be gained by sending 
 you a dispatch by mail to Panama, and thence by wire, and your an- 
 swer in like manner, and as I have been furnished with no cipher, and 
 the telegram might be made public, I have, for the present, concluded 
 not to attempt this mode of communication. 
 
 But relying upon the known desire of the United States to secure peace 
 between these republics, I shall, should Chili make such a proposition, 
 venture to meet the United States ministers to Bolivia and Chili at 
 Mollendo, for the purpose indicated, relying upon your approval of any 
 fair course which may promise the desired result. 
 
 But as yet I fear there will be no occasion for me to assume the risk 
 of exercising so questionable a discretion. 
 Please to accept, &c, 
 
 I. P. CHEISTIANCY. 
 
244 AFFAIRS IN CHILI, PEEU. AND BOLIVIA. 
 
 [Iiiclosure 1 in No. 36.] 
 
 Mr. Cliristiancy to Mr. Pettis. 
 
 Legation of the United States, 
 
 Lima, Peru, July 9, 1879. 
 Dear Sir : Your dispatch received. At present I could not well leave, as I have an 
 extradition case on hand, and other matters which require attention. I feel as anx- 
 ious as you can to do anything in my power to bring about peace ; but without some 
 more definite information than I now have tending to make our efforts available in 
 that direction, I could not properly venture to absent myself from the legation for so 
 long a period as would be required. Please write me fully your views and what you 
 conceive to be practicable, and by what means. 
 
 As Chili opened the war by seizing Bolivian territory and declared the war against 
 Peru and took the offensive, it does not seem to me that the allies would be willing 
 to take any steps in advance for peace, nor, without a trial of strength, to consent to- 
 any negotiations except upon the termsthat Chili should first evacuate all Bolivian and 
 Peruvian territory. But you may have more information than I have upon these mat- 
 ters, and if so, write me fully by next steamer. 
 I shall always be ready to do all I properly can in the interest of peace. 
 I am, Ac, 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure 2 in No. 36. [ 
 
 All under the special condition, not to take any decision or compromise without the 
 
 knowledge and approval of the Peruvian Government. 
 
 The authorities of Chili, civil and toilitary, withdraw from and disoccupy all terri- 
 tory that they have taken possession of upon and since the 14th day of February, 1879, 
 leaving all things in the state and condition they were in previous to the 14th of said 
 month. Then if arbitration is agreed upon, the arbitrators to hear, determine, and 
 decide all matters in dispute between Bolivia and Chili and Peru, and establish the 
 dividing line between the two countries, Bolivia claiming the boundary line fixed by 
 the Chilian constitution, taking into consideration the damages caused by the act of 
 14th February, and the subsequent aggression claimed by Bolivia, the expenses of the 
 war. 
 
 That reference may be made to the President of the United States of America as sole 
 arbitrator, or to the judges of the Supreme Court of the United States of America, or 
 the Ministers of the United States of America, in Peru, Bolivia, and Chili, a decision 
 by a majority of the arbitrators sitting to be valid and binding upon the parties, to 
 be approved in its execution and perpetuity by the President of the United States. 
 
 The above is a correct translation. 
 
 M. V. BALLIVIEN, 
 
 Interpreter. 
 questions. 
 
 1. If Chili proposes arbitration upon the terms indicated by the authorities of Bolivia 
 as presented yesterday, will Peru accept ? 
 
 The minister says, yes. 
 
 2. If Chili propeses reference to the parties or aivthorities indicated in the first ques- 
 tion and upon the basis implied in that question, excepting only that the time of evac- 
 uation shall be referred to the United States ministers for Peru, Bolivia and Chili, 
 will Peru accept this? 
 
 The minister answers, yes. 
 
 ]So. 172. 
 
 Mr. Cliristiancy to Mr. Evarts. 
 
 No. 37.] Legation of the United States, 
 
 Lima, Peru, July 22, 1879. (Beceived Aug. 15.) 
 Sib, : I inclose you an editorial from the South Pacific Times of Callao, 
 a paper which represents English opinion here with considerable fidelity ; 
 
AFFAIRS IN CHILI, PERU, AND DOLIVIA. 245 
 
 and you will pardonme for saying a few words in reference to the matter 
 which evidently gave rise to this editorial. I went down to Callao on 
 the morning of the 19th, and called at the United States consulate there, 
 where I learned through the consul and Admiral Eodgers that a Col. 
 Horace N. Fisher was in Callao and about to go up to Lima to see me; 
 that he represented himself as the bearer of important dispatches to 
 me, and either from what he had said, or from what had been inferred 
 by others from the fact of his having brought dispatches, the impression 
 had already gone abroad, and it was generally spoken of by the public, 
 that he had come here as the bearer of important dispatches in refer- 
 ence to an offer of mediation by the United States; and I am under the 
 necessity of saying that his own conversation with me, and with others 
 as reported to me, justified the public in the belief that he had some 
 special mission from our government the object of which was to put an 
 end to the war and restore peace, and that he was going to Chili with, 
 that view. And I will say that before receiving and opening the dis- 
 patches which he did bring to me, I drew the like inference from his 
 conversation with me, and, under that impression, I conversed with him 
 more freely than I should but for that impression. But when I found 
 that the only papers he had were your dispatch No. 16, and the circular 
 of your department of the 29th May, in reference to leaves of absence, 
 and that he brought no letter from you in reference to himself or his 
 supposed mission, I drew the natural (it may have been incorrect) infer- 
 ence that he "was not charged with any special mission, but that he was 
 assuming a consequence beyond what the facts warranted ; and, though 
 I treated him civilly, I did not make him a confidant. 
 
 He professed a warm solicitude for peace, whichl have no reason to 
 doubt he felt; if he did not, he is the only American, I may say the 
 only citizen of a neutral nation, I have seen here who did not strongly 
 feel that desire. 
 
 He went south on the same steamer with Mr. Pettis, and if they can 
 either or both succeed in contributing to an early peace, they will deserve 
 the warmest thanks of all who take an interest, as I do, in the prosperity 
 of these republics. 
 
 If I have drawn a false inference in reference to Colonel Fisher, you 
 will, I know, pardon me, under these circumstances, for the innocent 
 mistake. 
 
 Please accept, &c, 
 
 I. P. CHEISTIANCY. 
 
 [Inolosure 1 in No. 37.] 
 
 [Extract from the South Pacific Times, Callao, Tuesday, July 22, 1879.] 
 
 Colonel Fisher wag among the passengers who arrived here hy the Lima on Saturday. 
 This gentleman is a special messenger from Washington to this country and to Chili, 
 and hearer of dispatches to both these governments, offering the mediation of the 
 United States Government in the present unnatural quarrel in which they are en- 
 gaged. We sincerely hope the mission of Colonel Fisher will not be unattended with 
 success, for there can be no denying the sincerity of purpose which prompts the great 
 republic to action; not that the same might not be said of European governments, 
 whose intervention would not be less earnest nor less sincere, but the interference 
 of the United States will perhaps be more acceptable ; and the presumption may be 
 more generally and, perhaps, more justly entertained, that it is better interested na- 
 tions, or those nations whose subjects have millions invested in these countries, should 
 not be arbitrators. For instance, let us, for a moment, look at the proposition just 
 made in France ; it is to the effect that the bondholders unite to defray the expense 
 of the war for Chili, on the condition that they are protected by Chili in getting paid 
 
246 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 on their Peruvian bonds from the proceeds of the guano and nitrate, and that they 
 he reimbursed from the same source the war expenses so to be advanced. This propo- 
 sition would be acted upon had the English bondholders agreed to it. We allude to 
 this point simply in illustration of the fact that there is less likely to be confidence 
 where there is interest, or where disinterestedness cannot reasonably be expected to 
 prevail. Under the circumstances, therefore, we think the United States is unques- 
 tionably the best nation to intervene, and has already acted for Peru, if not for Chili 
 likewise, in reference to the political relations existing with Spain. Colonel Fisher 
 presented his dispatches here on Saturday, and the same evening left for Chili with 
 the same object. We have heard the opinion of one worthy of respect that an armis- 
 tice is very likely to follow the presentation of the dispatches, so as to allow time for 
 agreement as to the conditions of peace. We hope this may be so, for blood enough has 
 been shed, and the wounds to national honor had better be healed now than later — 
 the sooner the better. 
 
 No. 173. 
 
 Mr. Ghristiancy to Mr. Evarts. 
 
 No. 39.] Legation of the United States, 
 
 Lima, Peru, July 23, 1879. (Received August 15.) 
 Sir : I have the honor to inclose copy of my letter of this date to Mr. 
 Merriam, our consul at Iquique, together with an extract of the letter 
 of the consul to me of July 10 (his No. 38), in reference to the right of 
 the Chilian fleet to prevent the shipping of nitrates from Pisagua. 
 
 As to the circumstances going to show whether the blockade of 
 Iquique had been raised, you will find them stated with substantial ac- 
 curacy in my dispatch No. 34 (July 15), except that 1 inadvertently, in 
 that dispatch, stated the date of the transaction as the 12th when it 
 was in fact the 10th of the present month ; and I ask that the correction 
 be made in that dispatch. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Tnclosure 1 in No. 39.) 
 
 Mr. Christiancy to Mr. Merriam. 
 
 Legation of the United States, 
 
 Lima, Peru, July 23, 1879. 
 
 Sir : Your two notes of the 10th instant (Nos. 38 and 39) received. 
 
 As to the blockade, you are undoubtedly right in your conclusion (stated in your No. 
 39) that, upon the facts stated by yon, and as appears by all the accounts I have seen, 
 the blockade has not been raised. The whole proceeding must be treated rather as an 
 unsuccessful attempt to raise it. 
 
 As to the other matter mentioned in your No. 38, the question of the right of the 
 Chilian fleets to prevent the loading of nitrates at Pisagua, I will say that I do not 
 think those nitrates, considered with reference to their agricultural use and their des- 
 tination to European ports, can be treated as contraband of war, properly so called j 
 and if the nitrate-beds are owned by individuals and worked on their account only, 
 I do not think the Chilian fleet could lawfully prevent such commerce by neutral 
 vessels in any other way than by establishing an effectual blockade of the port. 
 
 But if the nitrate-beds are owned or worked or the nitrate shipped on the part of 
 the Peruvian Government, so that the proceeds or part of them go into the Peruvian 
 treasury, then I am inclined to think the Chilian fleet has, under the laws of war, a 
 right to stop that commerce if they can, and to use any means for that purpose prop- 
 erly calculated to reach the end, such as preventing the loading of vessels or destroy- 
 ing any of the works or lighters used in loading, after having notified the neutral 
 vessels to leave or cease to load. Nevertheless, should such a course be attempted by 
 h e Chilian fleet towards the American vessels, it might be well for you to protest in 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 247 
 
 due form against such proceeding, so as to save any rights which American ship- 
 owners or American citizens engaged in that commerce may in the end he found to 
 have. Such protests can do no harm, and it is better in such circumstances to err by 
 claiming too much than too little. 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 J. W. Mkrriam, Esq., 
 
 United Slates Consul, Iquique. 
 
 [Inclosnre 2 in No. 39. — Extract of letter from United Statea consul at Iquiqne of July 10, 1879.] 
 
 As the mail closes in a few minutes, I have only time to add that I have just been 
 informed that Commander Simpson, of the Lord Cochrane, verbally notified the cap- 
 tain of the American brig Mary Greenwood, on the 1st instant, at Pisagua, where she 
 is taking in a cargo of nitrate of soda for the United States, that she will not be 
 allowed to continue loading after the 15th instant, and that if he finds her in port 
 after that date he will take her to a Chilian port and confiscate her cargo. 
 
 It is said that the Chilian commander would not give any written order, and that 
 he inquired particularly as to whether the Peruvian Government was the owner of 
 the nitrate, and that the captain would only reply that he was chartered by Grace 
 Bros., of Callao, and that he was ignorant of the ownership of the cargo. 
 
 I am waiting for an official statement of the facts from the agent of the Peruvian 
 Nitrate Company, before taking action in the matter, and am also endeavoring to find 
 out whether nitrate of soda can be considered contraband of war. 
 
 I shall keep you informed on the subject. 
 
 No. 174. 
 
 Mr. Tracy to Mr. Hvarts 
 
 [Translation.] 
 
 Legation op Peru, 
 New York, July 24, 1879. (Received July 25.) 
 
 Sir : I take the liberty to call your excellency's attention to a matter 
 which is of vital importance to the interests of Peru, and which likewise 
 affects, in no small degree, those of the commerce of this country. I 
 refer to the interruption of free transit across the Isthmus of Panama of 
 materials which are recognized by the Government of the United States 
 as being articles of lawful commerce. 
 
 I do not doubt that the consular officers of this republic on the isthmus, 
 and the representatives of the Panama Railroad Company, as also per- 
 haps more than one of the commercial houses of this country whose in- 
 terests are jeopardized by the decision of the Government of the State 
 of Panama of the 26th of June last, have laid before your department 
 such protests as they have considered proper and necessary. Notwith- 
 standing that, I must not remain silent when a question is at stake whose 
 decision is now of transcendental importance to Peru. 
 
 The Government of Panama having consulted the federal govern- 
 ment of the United States of Colombia with regard to the transporta- 
 tion of arms and other elements of war ma the railway across the isthmus, 
 the executive branch of the Government of Colombia, under date of the 
 2d of June last, rendered, through the secretary of the interior and of 
 foreign affairs, the decision which I inclose to your excellency. It is 
 taken from the Panama Star, and is marked A. 
 
 This decisi ., whi ;h is worthy of the government of a nation that 
 
248 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 respects its treaty stipulations and the principles of international law, 
 appears to have been misinterpreted by the government of the States to 
 which it was addressed, that it might serve as a guide for that govern- 
 ment's actions, as your excellency will see by the decision published on 
 the 26th of June last by the said government, a copy of which I inclose, 
 which is also taken from the Panama Star, and marked B. 
 
 The decree of the federal government states that the Panama Eailway 
 has been declared to be an absolutely free highway for the commerce of 
 the world, with exoneration from the duty of inquiring into the origin, 
 nature, and destination of the goods passing over it; and it only pro- 
 hibits citizens of Colombia from carrying on a direct trade in articles of 
 war with the belligerents, whereas the decision of the State government 
 absolutely prohibits native citizens and foreigners from shipping muni- 
 tions of war to the belligerent nations, and refuses to grant them the 
 right of forwarding such articles to neutral ports without previously fur- 
 nishing security to the satisfaction of the Government of the State of 
 Panama. 
 
 A perusal of these two decisions is sufficient to show how contrary to 
 the intentions of the Federal Government of Colombia has been the action 
 of the President of the State of Panama, who being actuated, as is to be 
 hoped, by the most sincere desire to observe a strict neutrality, has never- 
 theless succeeded in dealing a blow to the allied republics whose con- 
 sequences it is difficult to foresee. To obstruct the passage across the 
 isthmus is to deprive us of the only means that we now have to procure 
 the articles which we most need, while our enemies have Cape Horn 
 and the Straits of Magellan for all that they require ; and it is an act on 
 the part of the Government of the State of Panama in favor of the repub- 
 lic of Chili, which can only be considered as a violation of all neutrality. 
 
 The minister of Peru who is accredited at Bogota will present to the 
 Government of the Colombian Union the energetic protest which is 
 deserved by a decision of the character of the one to which I refer, and 
 I do not doubt that that enlightened government will hasten to issue 
 such orders as it may deem suitable to remedy, so far as possible, the in- 
 juries that have been occasioned by the action of the Government of the 
 State of Panama. 
 
 For my own part I feel that I should be wanting in the performance 
 of my duty, and that I should render myself liable to the well-deserved 
 censure of the government that has honored me by appointing me to the 
 office which I now hold, if I failed to call your excellency's attention to 
 this matter, protesting, as I hereby do protest, in the name of the repub- 
 lic of Peru, against this interruption of free transit across the Isthmus of 
 Panama; not doubting that the Government of the United States will 
 find means to protect its numerous citizens who, dealing in goods which 
 are recognized as articles of lawful commerce, are now embarrassed and 
 threatened with grave injury on account of the causes to which I have 
 adverted ; and by the mere act of protecting the interests of your citi- 
 zens, your excellency will, at the same time, render a service to the 
 allied republics, without violating the neutrality which it is proper for 
 you to observe towards the belligerents. Peru will appreciate this as a 
 fresh evidence of the friendship and good will which have so often been 
 manifested towards her by this government. 
 
 The undersigned charge d'affaires has the honor, &c. 
 
 JOSE CARLOS TRACY. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 249 
 
 ( [Inclosare No. 1.— Translation.] 
 
 Resolution of the national government. 
 
 United States of Colombia — Sovereign State of Panama— Executive Power — 
 Office of the Secuetaky of State in the Department of Government — Sub- 
 department of National Affairs. 
 
 Panama, June 20, 1879. 
 
 Sir : In a telegram dated the 10th instant, at Bogota, the minister of foreign affairs 
 transcribes the subjoined resolutions, dictated on the 2d of the same month by the ex- 
 ecutive power of the union : 
 
 ' ' In view of the appeal made by the government of the state of Panama as to the 
 transit of arms and other war material over the Colombian Interoceanic Railway, with 
 presumed and probable destination to the republics of the Pacific, whose friendly rela- 
 tions have unfortunately been broken, it is considered — 
 
 "1st. The railway between the Atlantic and Pacific Oceans has been declared by the 
 Colombian Government to be an absolutely free highway for universal commerce, 
 which freedom implies the exoneration from duty of inquiring into the origin, class, or 
 destination of goods passing over it. 
 
 " 2d. There being no custom houses at the ports of Colon and Panama, the surveil- 
 ance of goods passing over the transit as proposedis indispensable, but would be mani- 
 festly inconvenient and defective. 
 
 " 3d. On this supposition, it would be necessary to allow the transit of war materials 
 as articles of commerce, provided they were manifestly under destination to neutral 
 ports of any of the republics on the coast of the Pacific which might originate a traffic 
 which would for the moment favor either of the belligerents. 
 
 " 4th. The republics of Chili, Peru, and Bolivia being at war, the policy of Colom- 
 bia, as a neutral power, should be made known to the agents of the government, and 
 consequently it is resolved — 
 
 "(a) The Panama Railroad shall serve for the transit of universal commerce, with- 
 out any limitation whatever as to the origin, class, or destination of the goods. 
 
 "(b) The transit of troops of any of the belligerents shall not be permitted through 
 the territory of the union, nor the storage within its ports of booty or reprisals, whose 
 capture shall not have been perfected before their arrival in its waters ; nor the land- 
 ing of prisoners, except to restore them to liberty. 
 
 "(c) It is not lawful for citizens of Colombia to trade with the belligerents in arms, 
 munitions of war, ships, or other elements immediately applicable to the uses or pur- 
 poses of war. 
 
 "(d) The shipment of salt, water, provisions, and all kinds of merchandise of law- 
 ful commerce destined to the countries at war, shall be allowed at Colombian ports, 
 provided they are not forwarded to blockaded ports or intended to supply the war 
 ships of any of the belligerents. 
 
 "(e) It is absolutely forbidden to aid the belligerents with troops, or allow their 
 ships to be stationed at Colombian gulfs, bays, or inlets, for the purpose of watching 
 the enemy's ships or of sending boats to capture them. 
 
 "(/) In cases of doubt the agents of the government shall be guided by the stipula- 
 tions of existing treaties celebrated by the republic ; and in the absence of these, by 
 the rules of international law." 
 
 I have the honor of transcribing the foregoing for your knowledge and guidance. 
 I am, sir, your obedient servant, 
 
 JOSE MARIA ALEMAN. 
 
 [iDclosure No. 2. — Translation.] 
 
 Resolution of the state government. 
 
 resolution. 
 
 Office of the Executive Power, 
 
 Panama, June 26, 1879. 
 In view of the communication addressed, June 23, by the consul of Chili in this 
 port, and in view of the resolutions dictated, on the 2nd instant, by the federal execu- 
 tive power, and communicated to the government of the state of Panama, in a note 
 from the secretary of the interior and foreign relations dated the 5th instant, No. 65, 
 section 1, and containing prescriptions relative to the neutrality which this republic 
 is bound to observe, in accordance with public treaties and international law, m the 
 
250 AFFAIRS IN CHILI, PERU, AND BOLrVIA. 
 
 ■war which has broken out between the republic of Chili and those of Peru and Bolivia, 
 and considering : 
 
 1st. The republic of the United States of Colombia, friendly to the belligerent nations, 
 must maintain strict neutrality in the struggle between them, and which American 
 hearts deprecate ; 
 
 2d. That neutrality consists in favoring neither belligerent to the prejudice of the 
 other, thus preserving cordial relations with both of them ; 
 
 3d. That the rules relative to the internal s'rife in the nations bordering upon Col- 
 ombia, and which are comprised in federal law No. 22, of 1871, relating to frontier 
 regulations, are equally applicable in cases of international war ; 
 
 4th. That the executive power of the union has decided it to be unlawfu lfor the cit- 
 izens of Colombia to trade directly with the belligerents in arms, munitions of war, 
 ships, and other elements immediately applicable to the purposes of war, which pro- 
 hibition naturally extends to foreigners domiciled in the country, and to all mercan- 
 tile operations in such elements, and with such destination within the territory of 
 the republic ; 
 
 5th. That the executive power of the union has expressly declared that it is lawful 
 only to ship salt, water, provisions, and all kinds of merchandise of lawful commerce, 
 destined to the countries at war, provided they be not forwarded to blockaded ports, 
 to supply the war vessels of either of the belligerents ; 
 
 It is resolved — 
 
 1st. It is absolutely forbidden to ship at this port, under destination to ports of 
 either belligerent on the coast of the Pacific, canons, arms, munitions, and other 
 articles considered as contraband of war. 
 
 2d. The shipment of articles mentioned in the preceding clause, with destination 
 to the ports of the non-belligerent countries, shall be allowed, provided the shippers 
 guarantee in a satisfactory form that such articles shall be landed at the port or ports 
 to which they are destined according to the respective declarations. 
 
 3d. Let the foregoing be communicated by the executive power of the Union to the 
 superintendent of the Panama Railroad Company, and to the iuspector of this port, 
 and let it be published. 
 
 JERARDO ORTEGA. 
 
 The secretary of the government. 
 
 JOSE MARIA ALEMAN. 
 
 No. 175. 
 
 Mr. Christ iancy to Mr. Evarts. 
 
 'So. 41.] Legation of the United States, 
 
 Lima, Peru, July 30, 1879. (Eeceived August 22.) 
 
 Sir : I have the honor to inclose to you, 1st, the letter of Mr. Mer- 
 riam, our consul at Iquique, of the 17th instant; 2d, extract from his 
 letter of the 21st instant ; and, 3d, a copy of my answer to those letters. 
 
 I also inclose copies of the correspondence between the consul, as 
 dean of the consular corps, and the Chilian admiral, in reference to 
 the bombardment of Iquique, first in Spanish and second by transla- 
 tion. 
 
 This correspondence, as well as that between the consul and myself, 
 will explain itself. 
 
 I am, &c, 
 
 I. P. CHEISTIANCY. 
 
 [Inclosare 1 in No. 41. J 
 Mr. Merriam to Air. Christiancy. 
 
 Consulate of the United States, 
 
 Iquique, July 17, 1879. 
 Sir : I have the honor to inform you that the Chilian fleet bombarded this town 
 last night between the hours' of half-past seven and half-past nine, having fired ia 
 all forty shots. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 251 
 
 This act of barbarism was committed without previous notice upon a town containing 
 thousands of defenseless inhabitants, including women and children, of whom some 
 of the latter fell victims to the murderous assault. The exact number of casualties 
 is not known at the hour of writing, but it is thought to be small. Two of the na- 
 tional guards were killed outright. A shot struck the custom-house, passing through 
 one of the windows of a room where a few minutes before the Chilian officers, pris- 
 oners of war, were confined. It then burst, passed up through the ceiling into the 
 room above, where a group of Peruvian officers were seated, slightly wounding three 
 of them, and finally passed through the southern side of the custom-honse. Other 
 buildings in different parts of the town were also seriously damaged, and one, at least, 
 completely destroyed. Among those damaged may be mentioned the dwelling-house 
 attached to the gas-works, and the buildings and large tank of the Arica Water 
 Company, the property of English citizens. 
 
 The mutilated remains of two small children have been found in the outskirts of 
 the town . 
 
 As dean of the consular corps, I have called the body together to meet at twelve 
 o'clock to-day, to take action in the premises, to protest against the act of barbarism, 
 and if possible secure immunity against its repetition. 
 
 As the mail is about to close, I have not time to send a dispatch to the Department, 
 and would be greatly obliged to you if you would embody in one of your dispatches, 
 the fact of the bombardment. If we had had a foreign man-of-war in port, I do not 
 think that the scandalous event would have happened. 
 
 J. W. MERRIAM. 
 
 [Inolosnre 2 in No. 41. — Extract of letter from J. W. Merriam, United States consul at Iqtiique, July 
 
 21,1879.] 
 
 To the last note of the consular corps of the 19th instant, no answer has as yet been 
 received. The absence of the signature of the French vice-consul on the protest and 
 on the subsequent note is explained by the temporary absence from town of that gen- 
 tleman. 
 
 With reference to the assertion of Admiral Williams that torpedoes were employed 
 against one of the vessels of his command on the night of the 8th instant, and alsO' 
 against the Blanco Encalada, on the night of the 16th instant, I will state that Gen- 
 eral Buendia has most solemnly assured me that on neither of these occasions, nor on 
 any other, have torpedoes been employed against the Chilian vessels in Iquique. We, 
 as members of the consular corps, did not feel it incumbent upon us to deny the truth 
 of the statement of the Chilian admiral on this point, for no assertion of ours would 
 be taken as evidence in a matter in which we cannot be considered competent wit- 
 nesses ; you will also observe that, in the only allusion which we have made to the 
 charge referred to, we have made use of a saving clause, which shows that we do not 
 concede the fact of the employment of this weapon. 
 
 On the points of law which we have tried to make, I should be very glad of your 
 opinion, and particularly as to whether the Chilian commander is not bound, by prin- 
 ciples of international law and by the usage of civilized nations, to give sufficient 
 notice of his intention to bombard, to allow neutrals and other non-combatants to 
 leave the town, no matter what provocation he may think he has for resorting to this 
 extreme measure. 
 
 With reference to Admiral Williams's statement that, from humane motives, he di- 
 rected that the shots should be fired at a great elevation, it is difficult to understand 
 why, if he was actuated by such humane sentiments, he should have fired at all, or, 
 at least why he should have expended more than forty shots, a large number of 250 
 and 300 pounds, upon a defenseless town, and at night, and still at such a low eleva- 
 tion as to cause destruction of property and loss of life in various parts of the town. 
 
 Moreover, the most convincing proof of all that his intention was to destroy the 
 town is to be found in the fact that many of the missiles were rilled with explosive 
 substances, which only failed to set fire to the town from the fact that the wooden 
 walls of the houses, from their thinness, did not afford sufficient resistance to cause 
 their. explosion. Several of these shells were picked up in a perfect state and carried 
 to General Buendia, who caused them to be carefully emptied, and found them to 
 contain, among other things, resin and sul phnr. 
 
 I cannot doubt that this act of vandalism will be condemned by the ci vilized world, 
 and although I fear that an offer of mediation would not be accepted by Chili, still 
 I cannot help expressing an earnest wish that the friendly intervention of the United 
 States might be accepted and thus put an end to this war of aggression and conquest, 
 for which Chili alone should be held responsible. 
 
252 AFFAIES IN CHILI, PEEU, AND BOLIVIA. 
 
 [Inclosure 3 in No. 41.] 
 
 Mr. Christianey to Mr. Merriam. 
 
 Legation of the United States, 
 
 Lima, Peru, July 30, 1879. 
 
 SiR : Your two letters of July 17 and 21 (N'os. 40 and 41) received. I shall write to 
 the Department to-day giving the information contained in those letters, with ex- 
 tracts from them. 
 
 I will only say here that you did well iu placing your protest upon the distinct 
 .grouud of the assurances given by the admiral to the consular corps on the 6th of 
 April, which, being public and known to the people of the town, they (as well as the 
 consular corps) had a right to rely upon those assurances. If no such assurances had 
 been given, the case would have been very different. This town being occupied by, 
 if not the headquarters of, the military forces of Peru and Bolivia, the Chilian fleet 
 undoubtedly had the right to attack and even to destroy the town itself, according 
 to the laws of war. Aud such occupancy by the military forces of the allies might 
 itself be looked upon as notice to the inhabitants that if they continued to reside in it, 
 they must do so subject to all the risks of war ; and that among these risks is that of a 
 bombardment, and though, even without the assurances of the 6th of April, humanity 
 might dictate that a notice should be given before opening fire, so that the peaceable 
 inhabitants might fly from the danger, yet this would not have been imperative 
 according to the laws of war. But the attacking party must be allowed a liberal dis- 
 cretion in judging of the exigencies which justify the omission of such notice. 
 
 The case is quite different from what it would have been it the town had not been 
 held or controlled by the military forces of the allies, and had been occupied by peace- 
 able inhabitants only. 
 
 And in the present case what I have said of the inhabitants applies equally to the 
 people of other (and neutral) nations there residing and to their property. By con- 
 tinning their residence in such a place under such circumstances, they all equally as- 
 sume all the risks incident to the situation, and the attacking party are not bound 
 to make (and practically could very seldom make) any discrimination. 
 
 It is, therefore, the violation by the admiral of the assurances he had given on the 
 6th of April, which alone can be held to have constituted the bombardment without 
 notice an act of vandalism, and a violation of the laws of honorable warfare. And the 
 merits of the question must depend upon the validity or sufficiency of the excuse which 
 he alleges, the attempt to use torpedoes against his vessels. Opinions might differ as 
 to the validity of this excuse, if true. For myself I should not consider it a valid ex- 
 cuse for the neglect to give any notice ; but if the excuse which he alleges had no 
 existence in fact, then I think all would agree that the admiral had violated the rules 
 of honorable warfare, unless he was himself deceived as to the facts; and in this view 
 I regret that you did not in your note to him of July 19 either deny, upon information 
 and belief, the use of torpedoes as alleged by him, or protest that you were ignorant 
 of the facts so that you could not be held to have admitted it, as I fear will now be 
 held to be the effect of the correspondence when taken together. But this effect will 
 be removed if hereafter it should be made clearly to appear that the excuse alleged 
 did not exist in fact. 
 
 I. P. CHRISTIANCY. 
 
 J. W. Merriam, Esq., 
 
 United States Consul, Iquique. 
 
 [Inclosure 4 in Xo. 41. — Translation.] 
 The Consular Officers at Iquique to Commander Eebolledo. 
 [From the South Pacific Times, Callao, Tuesday, July 29, 1879.] 
 
 Iquique, July 17, 1879. 
 
 Sib: We have not forgotten the distinct declarations that your honor was pleased 
 to make on the 6th of April to the delegates of the consular corps, and, in view of 
 the confidence which those declarations merited from us, we could never have 
 imagined that events would happen in direct contradiction to the guarantees spon- 
 taneously offered by your honor. 
 
 Contrary to all our expectations, last night, for the space of two hours, for motives 
 that we fail to understand, and without prior warning as required by international 
 law, the vessels under your honor's command threw a considerable number of cannon- 
 shots into this town with disastrous •effects, various defenseless people, old men, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 253 
 
 women, and children, and several neutral persons having been killed, and some pri- 
 vate property belonging to foreigners, of whom, as your honor must be aware, the 
 majority of the inhabitants of this town is composed, destroyed. 
 
 The protection of the lives and interests of our respective countrymen being en- 
 charged to us, in fulfillment of the duties of our trust, at a special meeting we have 
 unanimously resolved to protest, as in due form we hereby do protest, against the bom- 
 bardment of last night as unjustifiable and contrary to the most sacred and current 
 practices of international law, and throw the responsibility of the consequences to 
 which this act may lead upon your honor. 
 We remain, &c, 
 
 J. W. MERRIAM, 
 Consul of the United States of America, and senior member of the Consular Corps. 
 
 MARCOS F. AGUIRRE, 
 
 Ecuadorian Consul. 
 JUDALECIO GOMEZ, 
 Consul of the Argentine Republic. 
 HERMAN J. SCHMIDT, 
 Consul of the Austrian-Hungarian Monarchy and 
 Acting Consul of the German Empire. 
 M. JEWELL, 
 Acting Vice-Consul of Her Britannic Majesty. 
 HUGO ROSSI, 
 
 Consular Agent for Italy. 
 To the Commander-in-Chief of the Chilian fleet in this harbor. 
 
 Commander Bebolledo to the Consular Officers at Iquique. 
 
 On board of the iron-clad Blanco Encalada, 
 
 Iquique, July 17, 1B79. 
 
 Mr. Consdl: I have had the honor of receiving the protest-note of the consular 
 corps resident in this port, and shall lay same before my government by the first 
 opportunity. 
 
 In the mean time I consider it right to assure your honor that I do not deny the fact 
 of my having offered the consular corps that, in the event of the circumstances of 
 war obliging me to bombard this place, I would, with due anticipation, notify the 
 consular corps of same, for the personal safety and interests of their countrymen. 
 And I possess the satisfaction, Mr. Consul, of having acted strictly in accordance with 
 my promise, in spite of the hostile acts of the military forces on shore, practiced 
 against the corvette Esmeralda, during the first naval engagement, and the attempted 
 destruction of one of the ships of the fleet under my command, by means of a torpedo 
 on the night of the 8th instant. 
 
 The repetition, however, last night of the latter act against my flag-ship, authorized 
 me, in fact, to destroy the town ; but, even theu, and solely in obedience to sentiments 
 of humanity, I gave orders that the shots should be fired high, as your honor must 
 have observed. 
 
 I deplore the loss of lives of defenseless persons which your honor assures me has 
 occurred ; but your honor cannot be ignorant of the fact that the successful exit of 
 the torpedo scheme would have destroyed the lives of numberless persons also defense- 
 less against this treacherous arm of warfare. 
 
 Up to the present, the war in which we are engaged has been, for our part, carried 
 on with entire good faith ; your honor can assure your countrymen of this, and add 
 that it will be continued iu the same way, so long as the enemy do not employ arms 
 of the above kind. 
 
 Finally, I must beg to remind your honor that this town, to-day the headquarters 
 of the army, with its fortifications and defenses, has become a military stronghold, 
 and its inhabitants are therefore subject to all the fortunes of war, for which reason 
 I am sincerely sorry that neutral citizens, and very particularly your honor and the 
 other members of the consular corps, over which you so worthily preside, still remain 
 in the town. 
 
 With sentiments, &c, 
 
 J. WILLIAMS REBOLLEDO. 
 
 To the Consul of the United States of North America, 
 
 and senior member of the Foreign Consular Corps in Iquique. 
 
254 AFFAIKS IN CHILI, PERU, AND BOLIVIA. 
 
 The Consular Officers at Iquique to Commander Bebolledo. 
 
 Iquique, July 19, 1879. 
 Sir : We have read with careful attention the note that your honor has been pleased 
 to address to the senior member of the consular corps in this port, and after meditating 
 upon all the reasons adduced in justification of the bombardment of the night of the 
 16th instant, and in support of the right to repeat same in future, whenever the hos- 
 tilities be rene wed which your honor asserts have been put into practice against the 
 fleet under your command, we beg to state that on this subject we are of another 
 opinion. 
 
 We do not believe that internation'al law authorizes and makes legitimate the de- 
 struction of private and neutral property, as a mere measure of reprisal, but only in 
 the distinct and extreme case where the necessity of bringing the war to a speedy 
 termination or of executing some highly important operation make its destruction 
 inevitable. Neither do we think that this open town can be properly termed a forti- 
 fied place ; but however this may be, and leaving the responsibility of future events 
 to whoever incurs same, we beg to inform you that at the same time that your honor 
 makes use of the power in your hands, after the manner and way in which you may 
 think fit, your honor will be pleased to remember that the same civilized nations 
 which classify a bombardment, when legitimate, as a measure of extreme rigor, stig- 
 matize it as a crime if it is effected without previous warning, however legitimate it 
 may otherwise be. 
 
 Trusting in the promise which your honor made us on the 6th of April, indirectly 
 confirmed by the note to which we have the pleasure of replying, we request your 
 honor to be good enough to inform us whether we can assure our respective country- 
 men that, in the unfortunate event of their lives and properties running the risk of 
 bombardment, this may not happen unawares, but be advised beforehand, according 
 to the practice of civilized nations. 
 
 In conclusion, and thanking your honor exceedingly for the interest shown for our 
 personal safety, we hasten to remove the feeling of surprise that our actual presence 
 in this port causes your honor, assuring you that it is explained by the guarantees 
 which your honor gave us ; and that the duties of our trusts oblige us to remain 
 where the interests of our countrymen are threatened. 
 We are, &c, 
 
 J. W. J1ERRIAM, 
 Consul of the United States of America, and senior member of the Consular Corps. 
 
 MARCOS F. AGUIRRE, 
 
 Ecuadorian Consul. 
 JUDALECIO GOMEZ, 
 Consul of the Argentine Sepublic. 
 HERMAN J. SCHMIDT, 
 Consul of the Austrian-Hungarian, Monarchy and Acting Consul of the German Empire. 
 
 M. JEWELL, 
 Acting Vice-Consul of her Britannic Majesty. 
 HUGO ROSSI, 
 
 Consular Agent for Italy. 
 .To the Commander-in-Chief of the Chilian fleet in this harbor. 
 
 ISTo. 176. 
 
 Mr. Christian.cy to Mr. Evarts. 
 
 !No. 42.] Legation of the United States, 
 
 Lima, Peru, July 30, 1879. (Received August 22.) 
 
 Sir : The only item of news since my last in reference to the "prog- 
 ress of the war," is this : 
 
 The Huascar (the Peruvian turreted iron-clad), after the affair at 
 Iquique, mentioned in my dispatch of the 15th, No. 34, was with the 
 Union, a wooden corvette, dispatched from Arica to the south. They 
 passed around the Chilian fleet blockading Iquique, and went south 
 along the coast of Chili destroying the Chilian launches at Caldera, 
 Carrizal, Huasco, and Pan de Azucar, and on the 25th instant returned 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 255 
 
 to Arica, bringing in as prizes three sailing vessels laden with coal and 
 copper, and also the large steamer Rimac (formerly running from Val- 
 paraiso to Callao, but now used as a Chilian transport), with a whole 
 regiment of Chilian cavalry, fully armed and equipped, and five hundred 
 horses. The privates of this regiment remain prisoners at Arica. The 
 Ameers were brought here as prisoners last evening. In the mean time 
 the Chilian iron-clads Cochrane and Blanco Encalada seem to be of no 
 use except in the blockade of Iquiqne. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 177. 
 Mr. Christiancy to Mr. Uvarts. 
 
 No. 46.] Legation of the United States, 
 
 Lima, Peru, August 5, 1879. (Received September 4.) 
 Sir : I have the honor to inform you that President Prado telegraphs 
 from Iquique that the Chilian fleet has voluntarily raised the blockade 
 of that port, and by a subsequent dispatch he says they are at present 
 in Antofagasta. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 178. 
 Mr. Uvarts to Mr. Christiancy. 
 
 No. 29.J Department op State, 
 
 Washington, August 8, 1879. 
 
 Sir : I have to acknowledge the receipt of your dispatch No. 34, in 
 regard to the blockade of the port of Iquique, Peru. 
 
 Your comments upon the subject have been attentively read and con- 
 sidered, and the view formed by you, as communicated in the dispatch 
 concerning the maintenance of the blockade, is concurred. in. Your 
 proceedings thus far respecting it seem to be tempered with wisdom 
 and discretion, and meet with approval. If at any time the blockade 
 proves to be ineffectual, and any combined action be taken by the diplo- 
 matic corps at Lima judiciously declaring it inoperative, you will 
 promptly unite in the same. The Department in this matter feels that 
 it can place full confidence in your able judgment and long and ripened 
 experience. 
 
 I am, &c, 
 
 WM. M. BVARTS. 
 
 No. 179. 
 Mr. Evarts to Mr. Christiancy. 
 
 No. 30.] Department of State, 
 
 Washington, August 8, 1879. 
 Sir : I transmit herewith for your information copy of a dispatch* from 
 Mr. Ernest Dichman, United States minister resident at Bogota, recit- 
 
 * Foi inolosure see inclosure to document No. 5. ante. 
 
256 
 
 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 ing the causes which have prompted Colombia to proffer mediation for 
 the settlement of the war between Cbili, Peru, and Bolivia, announcing 
 the appointment of Dr. Arosemena, the former secretary of foreign rela- 
 tions of Colombia, to visit Lima, La Paz, and Santiago on a special mis- 
 sion for the purpose of tendering such mediation. 
 
 Although abstaining from any direct indorsement of, or co-operation 
 in, this apparently laudable effort of Colombia in the interest of peace 
 and reconcilation, this government, which feels lively solicitude for the 
 prosperity and tranquillity of the South American States, cannot but 
 watch Dr. Arosemena's mission with especial attention. In personal 
 intercourse with the doctor, when he visits Lima, you will probably find 
 a fitting occasion to express to him the warm interest taken by the 
 United States in this tentative step, and the friendly solicitude of this 
 government as to the result. 
 I am, &c, 
 
 WM. M. EVAKTS. 
 
 No. 180. 
 
 Mr. Christiancy to Mr. Hearts. 
 
 (Private and confidential.) 
 
 Legation of the United States, 
 Lima, Peru, August 1'2, 1879. (Eeceived September 4.) 
 
 Sir : I inclose a translation of an article which appears in the Comer- 
 cio (a leading paper published in Lima) of the 7th instant. I have little 
 comment to make upou it, except to say that, after making due allow- 
 ance for the habitual tendency of the newspaper press to draw false 
 inferences and even to misrepresent facts, I am not without some appre- 
 hension from what I saw of Mr. Pettis here and what I' heard from his 
 conversation with others, and his anxious inquiries of my clerk (who 
 speaks Spanish) what the newspapers said of him, that his conversation 
 and conduct in Arica and Pisagua may have justified the honest belief 
 on the part of newspaper men and the public in general that he was, in 
 fact, charged with a special and very important mission to the Govern- 
 ments of Peru, Bolivia, and Chili, and authorized to represent the Gov- 
 ernment of the United States in all these countries. I do not mean to 
 say that I believe he so expressly stated, but that, from his general con- 
 versation, hints, professions, and manner, he may have left many of his 
 hearers under an honest impression of this kind. Perhaps all this may 
 do no harm, though it may tend less to sustain the dignity of our coun- 
 try abroad than to gratify personal vanity. 
 
 But though I have not made and do not propose to make any intima- 
 tion to the government here upon this matter, they are not likely to be 
 misled, as Mr. Pettis made no pretensions to them of any such author- 
 ity, nor do I suppose he has done so to the cabinet of Bolivia or that of 
 Chili. 
 
 Of course I do not interfere with the newspaper press here, nor make 
 to them any suggestions upon this or any other subject. But on being 
 inquired of the other day by a representative of the Lima paper known 
 as the Patria, whether Mr. Pettis had any such mission from our gov- 
 ernment, as stated by the Pisagua paper, I felt bound to say that I was 
 entirely ignorant of his having such a mission; that I knew he was de- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 257 
 
 sirous of bringing about a peace between the three republics, and sup- 
 posed he had gone south with a hope of contributing something to that 
 end; and that I hoped he would be successful. I left the newspaper 
 man to draw his own inferences ; and the next day there appeared in 
 his paper an article in which, after quoting the article from the Comer- 
 do, with the extract from the Pisagua paper (which I send you), the 
 writer makes the remarks of which I send you the inclosed translation. 
 (Inclosure No. 2.) 
 
 For myself, I think it important that no representative of our govern- 
 ment should do anything to raise, even in the popular mind here, hopes 
 or expectations not to be realized, nor attempt to commit our govern- 
 ment to any course of action, without instructions from the State De- 
 partment ; unless, indeed, it be upon some point upon which he has a 
 right, under the circumstances, to take for granted that our government 
 would approve the action taken, and for this the case must be very clear. 
 In this view I wish to qualify the statement made in my dispatch No. 36 
 (near the close), in which I say that " should Chili make such a proposi- 
 tion" (I should) "venture to meet the United States ministers to Boli- 
 via and Chili at Mollendo for the purpose indicated," &c. I made no 
 such promise to Mr. Pettis, nor was the matter discussed between us, 
 and it occurs to me, on reflection, that if any action of the United States 
 ministers should be in any way dependent upon the United States Gov- 
 ernment or any of its departments becoming arbitrator between any of 
 these republics, the ministers of the United States have no right to take 
 it for granted, without previous instructions, that our government would 
 accept the position of arbitrator. 
 
 If the efforts of neutral nations to restore peace between republics 
 should prove to be a mere farce, I object to making our government play 
 the part of chief harlequin in such a farce. 
 I have the honor, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure No. 1. — Translated from El Comercio, August 7, 1S79.J 
 THE UNITED STATES AND THE WAR. 
 
 Through a private letter from Arica of the 3d of August, we receive the following 
 information : 
 
 On the 23d the North American minister who comes on a special mission to the three 
 republics arrivod here, and as that same day General Daza had gone to Pisagua, the 
 minister could only have an interview with General Prado, with whom he remained 
 in conference during two hours, without it being possible for us to arrive at the result 
 of the interview. 
 
 The minister continued his voyage to Pisagua where he met General Daza, as you 
 will see from the inclosed cutting from a newspaper, and lastly he left for Chili, where 
 he will arrive on the 28th or 29th. 
 
 The Pisagua paper cutting referred to is dated the 24th of July, and reads as fol- 
 lows : 
 
 "The illustrious General Daza received a telegram informing him that the minister 
 from the United States of America to the Governments of Bolivia, Peru, and Chili, Mr. 
 Newton Pettis, had arrived at Arica just as the Pilcomayo was leaving the port, and 
 that he had business of high importance for which he had to consult with the chief of 
 Bolivian Republic, and the latter resolved to await the steamer of the next day to 
 please the minister. And, as was expected, at eight o'clock this morning he arrived 
 in this bay, where he was received by the body of aids-de-camp of General Daza. 
 
 A private interview took place and as we believe it would be an obstruction to the 
 interests of the belligerents, we cannot publish the result of it, more so as we have not 
 been able to learn it in its details, but we are led to believe that very complicated in- 
 terests are at stake, that General Daza has directed them towards the welfare of his 
 country and that of the republic to which he is united by treaties." 
 
 S. Ex. 79 17 
 
258 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 flncloaure No. 2.— Translation from La Patria, August 8, 1879.] 
 
 * Withaut pretending to assert, we believe that there is more illusion than 
 reality in all that if. asserted in reference to the said interview. 
 
 First. It is inconceivable that the Government of the United States would especially 
 commission its consul-general and minister resident in La Paz for negotiations that it 
 could intrust to its Plenipotentiaries Cbristiancy and Osborn, residing now in Lima 
 and Santiago, they being in constant communication with their government, and held 
 in the highest esteem. 
 
 Mr. Pettis, residing in Bolivia, was doubtless not the best qualified to treat with 
 Generals Prado and Daza, and we doubt that it would occur to the government at 
 Washington to seek in a consul-general what would be easily obtained of its envoys 
 extraordinary. 
 
 Besides, we have motives for believing that Mr. Pettis has no official mission, and, 
 what is more, the United States legation at Lima has no knowledge of the mission that 
 El Comercio believes that gentleman to be fulfilling in his interviews with the generals 
 of the allied annv. 
 
 No. 181. 
 
 Mr. Seward to Mr. Christiancy. 
 
 No. 32.] Department of State, 
 
 Washington, August 18, 1879. 
 
 Sir : I hare to acknowledge the receipt of your dispatch No. 37, of 
 the 22d ultimo, upon the subject of the recent visit to you of Col. H. N. 
 Fisher, who was the bearer of certain dispatches from this Department 
 to you. 
 
 S The discretion displayed by you in your conversation with Colonel 
 Fisher in regard to the existing difficulties between Peru and Chili is 
 commended. Colonel Fisher, tkongh holding an official position under 
 the Chilian Government, is an American citizen, and is deeply interested 
 in the general desire to bring about a peace. He has no official con- 
 nection with this government, but having recently visited Washington 
 was informed of the desire of the United States Government to lend its 
 good offices towards the accomplishment of that object when it should 
 be probable that such a step would be welcome to both belligerents. 
 
 It is probable that Colonel Fisher takes advices from the new Chilian 
 minister here to his government, but upon this poiut the Department 
 has no positive information. 
 I am, &c, 
 
 F. W. SEWAED, 
 
 Acting Secretary. 
 
 No. 182. 
 Mr. Seivard to Mr. Christiancy. 
 
 No. 33.] Depaetment of State, 
 
 Washington, August 18. 1879. 
 Sir : I have to acknowledge the receipt of your dispatch No. 36, of 
 the 20th ultimo, with its inclosures, in regard to hostilities now existing 
 between Peru, Bolivia, and Chili. The Department appreciates the 
 efforts of yourself and colleagues in that quarter to effect permanent peace 
 between the belligerents. Your proceedings and suggestions as to the 
 proper course to be pursued in the accomplishment of this object are 
 approved. 
 
 I am, &c, 
 
 F. W. SEWAED, 
 
 Acting Secretary. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 259 
 
 No. 183. 
 
 Mr. Seward to Mr. Ghristiancy. 
 
 No. 34.] Department of State, 
 
 Washington, August 18, 1879. 
 Sir: I have to acknowledge the receipt of your dispatch No. 39, of 
 the 23d ultimo, and its inclosures, having reference to the blockade by 
 the Chilian fleet of the port of Iquique. 
 
 In reply I have to state that the instructions ,^'iven by you to Mr. 
 Merriam in reference to the blockade of that port to American ship- 
 ping are approved. 
 I am, &c, 
 
 F. W. SEWAED, 
 
 Acting Secretary. 
 
 No. 184. 
 
 Mr. Seward to Mr Tracy. 
 
 Department of State, 
 Washington, August 19, 1879. 
 Sir : I have the honor to acknowledge the reception of your note of the 
 24th ultimo, complaining of the interruption of free transit across the 
 isthmus of Panama, by the government of that state, of arms and mu- 
 nitions of war intended for belligerents, as being a violation of neutrality 
 laws, although such shipment is permitted by Colombia and recognized 
 by the Government of the United States as being articles of lawful 
 commerce. You consequently ask that this government will urge that 
 of Columbia to permit the free transportation of such articles in the 
 future. 
 
 In reply I have to inform you that the subject of your note will re- 
 ceive careful consideration. 
 Accept, sir, &c, 
 
 F. W. SEWAED, 
 
 Acting Secretary. 
 
 No. 185. 
 
 Mr. Tracy to Mr. E carts. 
 
 [Translation.] 
 
 Legation of Peru, 
 New York, August 22, 1879. (Eeceived August 23.) 
 Sir: I take pleasure in acknowledging the receipt of the communica- 
 tion dated the 19th instant, from the Hon. ¥. W. Seward, acting Secre- 
 tary of State, whereby he was pleased to inform me, in reply to the note 
 which I had the honor to address to the Department of State under 
 date of 24th ultimo, that the subject of the interruption of free transit, 
 via the isthmus of Panama, of goods recognized by the government of 
 the United States as being articles of lawful commerce, would receive 
 the most careful consideration of that Department. 
 
260 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I thank you for this information, and, at the same time, I am glad to 
 be able to inform you, for such purposes as may be suitable, that f yes- 
 terday received a communication from the consul-general of Peru at 
 Panama, bearing date of the 12th instant, iu which he states that the 
 Government of the Colombian Union has disapproved the decision of 
 the President of Panama prohibiting the shipment of arms. 
 
 I avail myself, &c, 
 
 JOSE CAELOS TEAOT. 
 
 No. 186. 
 Mr. Seward to Mr. Christiancy. 
 
 No. 3'3.] Department of State, 
 
 Washington, August 25, 1879. 
 Sir : I have to acknowledge the receipt of your No. 41 of the 30th 
 ultimo, covering correspondence passed between your legation and the 
 consul at Iquique on the subject of the bombardment of that place by 
 the Chilian fleet. Your reply to Mr. Merriain meets with the Depart- 
 ment's approval. 
 
 The view taken by yoti in regard to the neglect of the admiral of the 
 Chilian fleet to notify the authorities of Iquique of his intention to bom- 
 bard the place, in order that non-combatants might retire from danger 
 if they so desire, appears to be fraught with sound reasoning, and is 
 believed to be in accordance with public law. 
 I am, &c. 
 
 F. TV. SEWABD, 
 
 Acting Secretary. 
 
 No. 1ST. 
 Mr. Christiancy to Mr. Evarts. 
 
 No. il.] Legation of the United States, 
 
 Lima, Peru, August 26, 1870. (Eeceived September 16.) 
 
 Sir : Eeferring to my dispatch No. 36, 1 have the honor to state that 
 I have not yet heard anything direct from Judge Pettis as to the result 
 of his mission to Santiago "in the interest of peace," but I received on 
 Saturday last (23d) a confidential letter from Mr. Osborn, our minister 
 to Chili, which satisfies me that there is no present prospect of Chili 
 being willing to make either of the propositions alluded to in my dis- 
 patch above cited, nor any proposition based upon the status quo ante 
 bellum, and, in fact, that no Chilian ministry would, at present, dare to 
 make such a proposition; not that they would object to the United 
 States as arbitrator, if a practicable basis could be found upon which 
 any arbitration could be proposed. But I presume Mr. Osborn has him- 
 self written you fully upon this subject, and I need not say more. 
 
 In my opinion neither*party will be willing to arbitrate at all until 
 one or the other shall have suffered some serious reverse. But when 
 and how either is to be able to reach the other so as to try the arbitra- 
 ment of arms it is not easy to foresee. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 261 
 
 In the mean time it is understood here that the government of Ecua- 
 dor has been tendering its good offices to bring about an iiccommodation, 
 but without result. And the United States of Colombia some time since 
 accredited Dr. Arosemena (an eminent and accomplished gentleman, 
 standing high in the estimation of all the belligerents) to the three re- 
 publics of Peru, Bolivia, and Chili, and it is publicly understood here 
 that the special object of his mission is to offer the good offices of his 
 governmentfor the same purpose. He spent so me weeks here, and leaves 
 to-morrow for Santiago and La Paz. But under present circumstances, 
 and until the belligerents have tried their strength, I am satisfied his 
 mission will be without result. 
 
 A significant circumstances, however, occurred while he was here, tend- 
 ing strongly to show that Peru and Bolivia, at least, look upon the 
 questions involved in the present war as exclusively American questions 
 concerning only American republics. 
 
 A breakfast was given to Dr. Arosemena by members of the Peruvian 
 Government and leading senators and representatives, in which the 
 minister of Bolivia also took an active part. The invitations to foreign 
 ministers were confined to the representatives of American republics. 
 I attended the banquet, and it was impossible to shut my eyes to the 
 fact that our government was on all hands accorded the pre-eminence, 
 and received the highest respect and the warmest expression of esteem 
 and admiration, many of the speakers declaring that the United States 
 of America had presented the model which they sought to follow; and 
 though, as I was compelled to exxilain,mypositionimposed upon me the 
 obligation of reserve and of strict neutrality, and I could not venture to 
 decide or even to discuss the question who was in the right or who 
 was in the wrong in the present unhappy conflict, I could assure them 
 that the people and the Government of the United States highly appre- 
 ciated and keeuly sympathized with the efforts which the South Ameri- 
 can republics had made and were making to follow our example ; that 
 we all felt in some degree responsible, and that our credit was in some 
 manner pledged before the world for the success and prosperity or all 
 these republics ; yet I would venture to express the hope that while 
 they sought in the main to follow bur example, still there was one thing 
 forced upon us by circumstances beyond our control, in which I hoped 
 they would not feel bound to follow our example, and that was the ex- 
 ample and calamity of a great civil war ; that the conflict now waging 
 here had many of the revolting features of a civil war ; it was waged 
 between people of the same national descent, the same language, the 
 same religion, and many of whom were connected by blood and by mar- 
 riage and the dearest of family ties; that I hoped the time would soon 
 come when the only contest between them should be, which should best 
 cultivate the arts of peace ; which should do most for the development 
 of its internal resources and to promote the confraternity of, all. 
 
 These sentiments were well received, and I believe there is an anxious 
 desire for peace, but each side fears to make the first advance, lest it 
 should be lowering its dignity; and there is much plausibility in this 
 position on the part of Peru and Bolivia, especially the former, as Chili 
 began the war by the seizure of Bolivian territory, and declared the 
 war against Peru while Peru was making an effort to preserve peace. 
 
 I do not go into the merits of the question at all. Bolivia may have 
 been in the wrong in the preliminary dispute which led to the war, and 
 Chili may have been right or wrong in declaring the war against Peru, 
 because of the secret treaty of alliance. These are questions only to be 
 decided by the sword or by arbitration. 
 
262 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 But on full reflection, I have thought it best to put you in possession of 
 the real feelings of these governments in respect to the question of peace 
 and the best mode of bringing it about, and to enable you to decide 
 whether it is true policy to tender the good offices of the United States 
 to that end, and whether, should a contingency arise in which the par- 
 ties should be willing to make our government an arbitrator, it would be 
 willing to assume that most unwelcome and responsible position. 
 
 I should have written you this fully two weeks since, but my health, 
 which is still feeble, did not permit. 
 I have, &c, 
 
 I. P. C HRISTIANCY. 
 
 P. S. — Since writing the above, I have received from Mr. Pettis a pri- 
 vate pencil note, dated Mollendo, August 23, detailing his attempts at 
 negotiation at Santiago, but as he says that he writes fully to the Depart- 
 ment on the same day, I need not go into the particulars. I fear his 
 intense desire to effect a peace makes him take too sanguine a view of 
 the prospect. I. P. C. 
 
 No. 188. 
 Mr. Christ fancy to Mr. EvarU. 
 
 Legation of the United States, 
 Lima, Peru, September 1, 1879. ("Received September 25.) 
 Sir : I have the honor to inclose to you the copy of a confidential let- 
 ter from me to Mr. Osborn, our minister to Chili, dated August 29; also 
 a copy of a confidential letter from me to Mr. Pettis, our minister to 
 Bolivia, of same date. 
 
 Both these letters are in answer to confidential letters of the respect- 
 ive ministers to me, which, because they are marked confidential, I do 
 not send copies of, though I presume every fact stated in them will be 
 stated in their respective dispatches to you. I have only marked the in- 
 closed letters confidential because their letters to me were so marked. 
 
 Probably this letter, with its inclosures, should be treated as con- 
 fidential, if not entirely unofficial. I therefore do not number it, as of 
 the regular series of dispatches. But it is for you to decide. 
 I have, &c. 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure in Air. Christiancy'a dispatch of September 1.1 
 
 Mr. Christiancy to Mr. Osborn. 
 » 
 Confidential.] Legation of the United States, 
 
 Lima. Peru, August '29, 1879. 
 
 Dear Sir: Your confidential letter of the 11th instant received. 
 
 I am not at all disappointed in the result of the self-constituted mission of our friend 
 Judge Pettis to Santiago. I looked upon the whole movement of his as one of very 
 doubtful propriety which I would not have taken the responsibility to make. But he 
 was so confident and enthusiastic that I felt sure no advice of mine would have been 
 taken against making the experiment; and I was myself so anxious to see a restora- 
 tion of peace between these republics that I wished, and had some vague hope, that 
 he might succeed, with your aid, in getting the Chilian Government to make some 
 proposition which might lead to peace. But I confess I could not see how it was to 
 be brought about, if it depended upon any action of our government, until it had au- 
 thorized him or you or some one else to pledge it to such action. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 263 
 
 My own deliberate opinion is, and I some time since so wrote the Department, that 
 neither party to this war will be willing to make any practicable proposition for arbi- 
 tration until one or the other shall have suffered some serious calamity, or until the 
 resources of each shall be exhausted in the effort to bring their armies in contact with 
 each other. 
 
 I expect, in the course of a week or two, an answer from the Department to some of 
 my dispatches, which answer will probably give us some definite instructions as to 
 the position our government may be willing to take in this matter. 
 
 In the mean time, as it seems to me, our whole duty will be discharged by taking 
 advantage of any opportunity which offers to encourage a disposition for an accom- 
 modation of some kind. 
 
 If anything occurs here showing any change in the government, as to a disposi- 
 tion for peace, I will let you know as promptly as I can. And I hope you will keep 
 me posted as to any change in the disposition of the Chilian Government. 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 
 P. S. — I shall send a copy of this letter to the Secretary of State, but not a copy of 
 yours to which it is a reply. 
 
 I see by some articles in the Chilian papers that the public there seem to understand 
 that Mr. Pettis rather offensively intimated intervention of the United States. I think 
 this must be untrue, because, however the zeal of Mr. Pettis might lead him to express 
 himself in an incautious or imperfect manner, I cannot doubt that your cool judgment 
 must, in such a case, have compelled you to disavow any such intention on the part 
 of our government, unless you had instructions from the State Department which 
 would authorize such an intimation, of which I am utterly ignorant.— I. P. C. 
 
 Mr. Christiancy to Mr. Pettis. 
 
 Confidential.] Legation of the United States, 
 
 Lima, Peru, August 20, 1879. 
 
 Dear Sir: Your two confidential pencil notes, of the 23d and 26th instant, received. 
 
 Though I ardently wished you success in your endeavors at Santiago to bring about 
 peace, I cannot say that I am disappointed at the result. The fact is as, I stated to 
 you when here, that the effort for peace was made at the wrong end of the line. Peru 
 was drawn into this war against her will to comply with her treaty with Bolivia ; 
 and Chili declared the war, after seizing from Bolivia the territory which by treaty 
 belonged to the latter. Now whether Chili was, upon the whole, right or wrong, it 
 could hardly be expected that Peru, at least, would make the first advance for peace, 
 as she had attempted the same thing before the war and failed. It seemed, therefore, 
 to me that the first step was to learn whether Chili would consent to make a proposi- 
 tion, and, if she would not, all efforts at peace must be useless until the parties 
 had tried their strength in actual conflict, and one or the other party had suffered 
 some serious reverse, or had so utterly exhausted her resources as not to be able to 
 keep an army in the field. But I was so very desirous to see peace restored between 
 these republics that I felt a most ardent desire that you should succeed in your un- 
 dertaking, though, as I told you, I did not share your confidence in the result. 
 
 I have, more than four weeks ago, written fully to the Secretary of State all the 
 considerations which occurred to me bearing upon the policy of our government offer- 
 ing its good offices for adjustment, and expect an answer, in the course of two weeks, 
 which will show the wishes of our government and the position she is willing to take. 
 I am glad you have also written, aud as we have not, without orders from the State 
 Department, any right to pledge the action of our government in advance, all we can 
 do in the mean time is to make the most of any circumstances which may occur to • 
 foster any disposition for an accommodation. Please write me often and keep me posted 
 as to facts. 
 
 Your friend, 
 
 I. P. CHRISTIANCY. 
 
 September 1. 
 P. S. — I must take it for granted that what I see in some of the Chilian papers about 
 your having intimated an intention of our government to intervene must be incor- 
 reot; because, as I intimated to you here (when I spoke trying to telegraph by way of 
 Panama to the State Department), and as you also must have realized, no minister of 
 the United States can have the right to bind his government to any course of action 
 in any important matter without previous instructions to that effect. And I must take 
 it for granted that in a matter of this kind, involving the interests of nations, you 
 would naturally feel the necessity of great caution, delicacy, and circumspection; and 
 that you have, therefore, done nothing to justify the representations or misrepresenta- 
 tions of the Chili press. 
 
 I. P. C. 
 
264 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 189. 
 
 Mr. Christiana/ to Mr. Evarts. 
 
 No. 49.] Legation of the United States, 
 
 Lima, Peru, September 2, 1879. (Beceived September 25.) 
 
 Sir: I take tbe liberty of inclosing to you an editorial from El Mer- 
 curio, of Valparaiso, of August 14, and another from La Patria, of the 
 same place, of August 15, 1879, together with translations of each. 
 
 You will see by these articles what has been the result of the trip (I 
 cannot say mission) of Judge Pettis, to Chili; and, making all due allow- 
 ance for the errors and misrepresentations of the newspaj>er press, you 
 may, perhaps, form some probable judgment of the effect of his visit to 
 Chili. 
 
 I take it for granted that it is not Mr. Osborn who is referred to, who 
 seems, so far as I am informed, to have commanded the respect of the 
 Chilian Government ; and, judging from the letters I have received from 
 him, I cannot think he has said anything to justify the articles which I 
 inclose. 
 
 Of the manner in whicb Mr. Pettis has discharged the delicate duties 
 he assumed by his journey to St. Iago, it is not my province to judge, 
 nor do I here express any opinion further than to say that I cannot 
 believe that he intended to threaten the Chilian Government with the 
 intervention of the United States, though it is quite possible his zeal 
 may have led him into some loose or inaccurate expressions which 
 might admit of such construction. But, though ignorant of the actual 
 facts, there is some ground to infer from the article in the Mercurio, es- 
 pecially, that there was or had been some apprehension among the people 
 or some party of the people that the government, the President and his 
 Cabinet, or some of them, were willing to place matters in statu quo ante 
 bell urn as a preliminary to peace, and to refer all questions in dispute 
 to arbitrators, and that these papers, representing the popular or parti- 
 san sentiment opposed to such a proceeding, sought to make that idea 
 as odious as possible by representing the United States as threatening 
 intervention. 
 
 T^or myself, I have not dared to venture upon any such dangerous ex- 
 periment; but whenever inquired of, by those entitled to know, what 
 position the United States Government was disposed to take, I have 
 frankly stated that, whde I knew that our government, as a neutral and 
 friendly republic, regretted the present war and would rejoice to see a 
 restoration of peace, yet that I had received no instructions tending to 
 show any disposition to interfere, in any manner, in the contest or with 
 . any question in controversy between the belligerents, nor to volunteer, 
 even by advice as to any particular measure for the restoration of 
 peace. That, judging from the past history of our country and the tra- 
 ditional policy of our government, I could discover no ground for sup- 
 posing that she would attempt to intervene in the contest : and that, 
 without instructions to that effect, 1 could not even venture to say 
 that she would be willing to tender her good offices to bring about an 
 arrangement, without some assurance that such an offer would be agree- 
 able to all the belligerents. 
 
 But I have ventured to say that while I could not speak officially or 
 give any assurance to that effect, yet, as an individual, I would express 
 the opinion that if all the belligerents should, in any proper manner, 
 express the wish that our government should use its good offices to that 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 265 
 
 end, I thought such a wish might be complied with. But I have been 
 careful, ou all occasions, to say that I have received no instructions 
 upon the subject. 
 I have, &c, 
 
 I. P. OHEISTIANOY. 
 
 Ilnclosure 1 in No. 49.— Translation of editorial of the El Mercurio, Valparaiso, August 14, 1879.] 
 INTERVENTION OF THE YANKEE GOVERNMENT. 
 
 We learned yesterday, from a trustworthy source, that the United States plenipo- 
 tentiary had passed a note to our government intimating, in terms somewhat accentu- 
 ated, the necessity of putting an end to the conflict in which we are involved. 
 
 If this be true, it would be the right time to tell the great North American Republic 
 that ehe has completely forgotten her own doctrines and practices, intervening in mat- 
 ters which merely and exclusively concern the three belligerents. 
 
 If the mentioned intervention is amicably offered, we must thank them for it, but 
 we must also refuse it as imperative. 
 
 If,. on the contrary, it signifies an incidental threat, as it is said to be, the repulse 
 should be immediate and clear. No matter in which of the two positions we may 
 place ourselves, the result can only be one and the same. And how could it be other- 
 wise when we are in a position which can only allow a solution by the victory of one 
 or the other of the two contestants? By what other road could we attain peace? 
 
 Or does the North American Government believe that we could, to please it, or out 
 of fear of its threats, return to Bolivia the territory that by the irresistible force of 
 rights and events has formed again an integral portion of the republic? Impossible! 
 
 The Chilian flag that waves there in testimony of national possession and. of pro- 
 tection to the powerful interests rooted in that soil cannot be hauled down until the 
 Peru-Bolivian Army succeed in defeating ours. In this way only could it retire ; in 
 any other way, never! never! 
 
 And with regard to Peru, how would that peace which the Yankee Government 
 offers us stand ? Should we leave without revenge the martyrdom of the heroes of the 
 Esmeralda, and without chastising the treacherous attacks in consequence of which 
 more than four hundred Chilians sigh in painful bondage ? 
 
 To step back without obtaining at least a partial reparation for so many evils and 
 insults to our country would be an indelible stain for Chili ; and Chili does not con- 
 sent, and will never consent while it has a spark of life, to a single spot on its shield. 
 
 The Government of the Great Republic knows us little. It judges, perhaps, our 
 dignity by the number of inhabitants, by the scarcity of our national income, by our 
 relative backwardness in comparison with her. But if this is so, she is greatly mis- 
 taken, for though poor and backward and lacking the great resources for defense that 
 the great powers possess, we have always shown, since the day of our emancipation, 
 a patriotism able to face all contingencies, a courage in proportion to the intense es- 
 teem of our honor. 
 
 It is hard to believe that the North American Government that has always looked 
 with the most absolute indifference on the contests of the republics of this continent 
 should to-day want to enforce itself as mediator in a contest perhaps the most justi- 
 fied (it is so understood on our part) of auy that have stained with blood the New 
 World. Since when so much humanitarian zeal, after having looked quietly upon 
 the slaughter in all the South American countries except Chili ? 
 
 Yesterday only did not Misters Yankees see Paraguay perish after a heroical combat 
 against three adversaries, of which the least strong was a thousand times superior to 
 herself? Well ! Why then, did they not use their friendly influence or their coercive 
 threat? When the Spanish squadron bombarded Valparaiso the Great Republic had 
 in the bay the formidable "Monnaduok," nevertheless, Admiral Mendez Nunez pro- 
 ceeded as if he were the absolute master of the seas. Minister Seward would not even 
 listen, in compliment to Neutrality, to the complaints of the Chilian representative, 
 who, in an unhappy moment, believed that the so-celebrated Monroe doctrine extended 
 so far as to protect a feeble country, a victim of a powerful European nation. 
 
 Now, then, if the Monroe doctrine could not cross the Isthmus of Panama whilst a 
 poor American country was being chastised by oue that had been its master in the by- 
 gone times of colonization ; why, then, shall we allow to-day, to the principle of in- 
 tervention, a principle only used against the weak, so violent an interpretation, 
 founded, it may be, on a humanitarian basis or upon financial interests? 
 
 If Chili, as the United States Government cannot deny, is a self-governing country, 
 constituted after the same manner as the other free countries are, it becomes clear 
 that any act of a foreign power, no matter which it be, tending to lessen its liberty, 
 
266 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 is an unjustifiable act, au insult not to be tolerated. Rights are eqnal to the whole of 
 the human family. The small and modest Switzerland is as much master of her free- 
 dom to punish those that depreciate her as powerful England is. Belgium and Hol- 
 land are not more or less on this point than France and Germany. If Chili were only 
 like the Republic of Andorra or San Marino, then could the United States or any other 
 European power justify such an intervention as that of which we are speaking. But, 
 fortunately, we are not so unfortunate as to owe to the pity or the contempt of the 
 world the liberty which we enjoy. 
 
 We do not, for a single moment, desire to imagine that the government looks upou 
 this matter in another light than we do. Nevertheless it is prudent to advise it that 
 the moment it should show the least weakness the entire country would hold it to a 
 strict account. National honor is not to be trifled with, and it would be precisely the 
 national honor which would be forfeited by acceding to the suggestions of any nation 
 interested in imposing upon us its will. 
 
 Chili does not require tutors; she is old enough to be able to know how to govern 
 herself. If the chief of the state does uot believe so, he must from to-day believe the 
 contrary, under the penalty of discovering that a Chilian governor must think as the 
 people he governs think. 
 
 [Inclosure 2, in No. 49. — Translation of editorial of ~Lu Patria, Valparaiso, Aug. 10, 1879.) 
 A MEDIATION AS ABSURD AS DANGEROUS. 
 
 Conjointly with our colleague of this port, we received yesterday the advice that 
 there had been presented to our government, in an imperative manner, a proposed 
 forced mediation, tendered by the great Republic of the United States. 
 
 We will ingenuously say the truth ; we gave no credit to the news, reserving to our- 
 selves to qualify it as being of the worst character, and, above all, of more evil conse- 
 quence than many of the false news which every day some people, with wicked designs 
 rather than a spirit of intervention, spread about the streets. 
 
 Even to-day, and notwithstanding the honor it has merited from "El Mercurio" by 
 finding place in its columns, we insist upon denying' not only its existence but also its 
 verasimilitude. And, in truth, foundation is not lacking in proof of our systematic 
 incredulity. 
 
 It is an established fact, as it is opportunely put forth by El Mercurio, that the bene- 
 volent intention of the Northern Confederation and the purposes of the Monroe doc- 
 trine have never passed the sphere of beautiful theories in favor of any of the Latin- 
 race countries of the South American continent. The Monroe doctrine was invented 
 solely for Saxons and in favor of Saxons. 
 
 To the real and indisputable examples set forth in aid of this thesis by El Mercurio 
 we can properly add other examples, if possible, to those already mentioned. 
 
 What has the Monroe doctrine doue for Cuba? Has Spain not prosecuted with 
 tenacity her implacable war under the nose of the United States .' Has the case of 
 the Virginius been forgotten, from on board of which Spain took out, by means of the 
 Tornado, citizens under the protection of the starry flag, shooting them afterwards, not- 
 withstanding the protest of the commander of the vessel? 
 
 What did the United States do for Mexico when the Imperial Eagle was making a 
 prey of the heroic and intrepid Puebla ? What did it do for Texas ? What has it done 
 for the Republics of Central America in their conflicts with Germany and other Euro- 
 pean Governments ? To fold her arms, and if not co-operating, allowing, at least, the 
 realization of the known maxim la force prime le droit, or, let us call it, the right of the 
 strong is the only one possible right. 
 
 And, besides, by what privileged reason should the United States be the one who 
 should constitute itself the executor of a forced mediation ? 
 
 We have not ignored the steps taken by Peru in search of a mediating power and 
 of a mediation. We have followed her step by step in her shameful travels through 
 courts and palaces in Europe, from Holland to Germany, and from Paris to London, 
 receiving everywhere as sole answer to her exigencies silence and disdain. 
 
 And what she has failed to accomplish until now by diplomacy, always ready for 
 negotiations with those great powers which has been refused to be taken in hand, 
 and that in a collective manner, by the whole of Europe, and this in an amicable and 
 conciliatory manner, should now come as a ulcase, unprecedentedjin the history of Amer- 
 ica and of the world, by the country who was the cradle of Lincoln and Washington f 
 
 It is obvious, and the more it is examined the greater becomes the surprise, and greater 
 still the absurdity of the matter which we are treating, obliged by the necessity of 
 evading its doleful propagation in the public spirit and the discouragement which 
 would be the inevitable consequence, if in reality such mediation had existed, or 
 should ever exist. 
 
 And how could it be attempted? 
 
AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 267 
 
 Upon this point we could answer nothing that would not be feeble and pale para- 
 phrase of the opinions and patriotic and eloquent judgment given yesterday in the 
 columns of El Mercurio. Fortbis reason we limit ourselves to repeat with him to-day 
 and with the entire country to-morrow: "The Chilian flag that waves in the Bolivian 
 territory cannot be hauled down until the Peru-Bolivian army succeed indef'eating ours. 
 In this way only could it retire ; in any other way, never! never ! !" 
 
 One thing only we may add to that patriotic oath, and it is, that even the army de- 
 feated, Chili, resuscitating the heroic traditions of Paraguay, would perish as a people 
 before suffering the humiliation and ignominy of an obligatory treaty to which a 
 struggle and a combat had not preceded. 
 
 Let us not ramble. 
 
 The news that occupy us, though its origin is official, is not only official, but is also 
 absurd. How could Seiior Pinto, son of the warrior of Ayacucbo and Juniu, a near 
 relative of Generals Buin and Yungay, deceive himself so much as to the disposition 
 of the country he governs, and to whom he owes glory, fortune having refused him 
 wealth and prosperity, that he should, even for a moment, admit a hearing of such a 
 mediation. How could Seflores Vara.s and Santa JIaria, that fought in one time for 
 Chili and in the name of Chili the colossal English power in the celebrated White- 
 head question, hear without rebelling sentiments, and without in that moment abdi- 
 cating their portfolios, the humiliating proposition of the Washington emissary ">. 
 
 We repeat for the thousandth and last time, there is not, there cannot be, there 
 will not exist the mediation of which we speak. If we should be mistaken, if such 
 news became a fact, we say it ingenuously, we Relieve that the country, rising like a 
 single man, would make a solemn "auto de f6" of the treaty of mediation, and God 
 grant they stop there and do not incur the temptation of feeding the flames with the 
 authors of the idea. For if it is true that people forjjive many mistakes after glory 
 has been obtained — for example, in France Henry IV, Louis XIV, and Napoleon — it 
 is equally true that they are implacable with those that lead them foolishly or care- 
 lessly to degradation and shame. 
 
 No. 190. 
 
 Mr. Tracy to Jfr. Evurts. 
 
 Legation of Peru, 
 New York, September 4, 1879. (Received September 7.) 
 
 Sir: On the 2d of April last, Seiior Alejandro Fierro, minister of 
 foreign affairs of Chili, addressed a note to Setior Jose Antonio de 
 Lavalle, envoy extraordinary and minister plenipotentiary of Peru, 
 declaring that friendly relations between the two countries were termi- 
 nated, and handing him his passports. 
 
 Five months have barely elapsed since the declaration of war, and I 
 would now respectfully call your excellencj''s attention to the jjresent 
 state of affairs on the Pacific coast of South America, after first, with 
 your permission, furnishing additional evidence that Chili had no found- 
 ation upon which to rest her alleged right to take possession of Autofa- 
 gasta and the nitrate regions of Bolivia. 
 
 In the manifest addressed by Seiior Manuel Ingoyen, minister of 
 foreign affairs of Peru, on the 1st of May last, to the Governments of 
 the United States and other friendly nations, he showed so clearly, as 
 I believe, that the Chilian Government in taking possession of the 
 Bolivian coast situate between the 23d and 24th parallels of South 
 latitude, under pretended right of revindication, had seized what never 
 had belonged to Chili, nor formed any part of her territory, that it seems 
 to me your excellency needs no further proof that Seiior Fierro, to say 
 the least, misstated the case when he alleged in the exposition addressed 
 by him in behalf of the Chilian Government to friendly nations, that 
 Chili had exercised dominion and possession of the territory situated 
 between the 23d and 24th degrees of latitude. Nevertheless, feeling 
 assured that the United States Government desires to hear everything 
 
268 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 that may fortify the position of Peru, or her ally, the Eepublic of Bolivia, 
 or make clearer the real merits of the questions that gave rise to the 
 unfortunate war, which, despite all the efforts of Peru to avert it, is now 
 being waged between Chili and Peru and Bolivia, I have the honor of 
 handing to your excellency herewith a pamphlet containing an article 
 translated into English from "La Eevista Peruana," in which the ques- 
 tion of the boundaries of Chili in Atacama is considered historically, 
 and proving by official documents and the authority of historians and 
 geographers that since the year 1540, until the present day the southern 
 end of the desert of Atacama, or at least the 25th degree of latitude, 
 has always been recognized as the Chilian boundary. 
 
 I will not consume your excellency's valuable time by repeating 
 here any portion of the accompanying pamphlet, which I trust will re- 
 ceiveyour careful attention, but will simply observe that on page 16itap- 
 pears that the distinguished and honorable gentleman, who at present 
 represents Chili at Washington, Seiior Francisco Tolano Asta-Buruaga, 
 in his "Geographical Dictionary of Chili," published in 1866, fixes the 
 latitude of the " Bay of our Lady," near the Paposo, or Salt Biver, the 
 northern boundary of Chili, as 25° 2' ; and the entire pamphlet shows the 
 said northern boundary as fixed by Chilian writers, and shown on the 
 maps of both ancient and modern geographies, is the Salt or Paposo 
 Biver, that is latitude 25°; and consequently the course of Chili in tak- 
 ing possession of the Bolivian coast, situate between the 23d and 24th 
 degrees, under the plea of "revindication," has no justification what- 
 ever. 
 
 And now I ask your excellency to consider the present condition of 
 the two republics. 
 
 The principal events of the war have undoubtedly been made known 
 to your excellency by your diplomatic agents in Peru, Bolivia, and 
 Chili, but with your leave I will recapitulate some of them as briefly as 
 may be, and at the same time beg to hand you herewith three copies of 
 the " Peruvian Mail," a paper published in Lima, which will enable you 
 to form an accurate opinion of the existing state of affairs. 
 
 In the number of 23d July last it is reported that — 
 
 Sflior Lastarria recently created consternation in the Chilian House of Deputies by 
 makingthe following remarkable statement: " I wish Antofagasta to be ours, and I 
 believe it will be so by the right of conquest, but not on account of our possessing 
 any legal right to it." 
 
 Ou pages 3 and 4 of the same paper, on page 6 of that of 30th, and oh 
 page 3 of that of 13th of August, will be found articles showing the dis- 
 satisfaction felt in Chili by public men and the press at the conduct of 
 the war. 
 
 On pages 4 and 5 of the last-named paper will be found reports of 
 the serious disturbances in Santiago, Chili, on the 30th of July, occa- 
 sioned by the indignation of the people when the news of the capture 
 of the "Bimac" was made public. The people shouted, " Down with 
 the government! " '• Down with the ministry!" An open-air indigna- 
 tion meeting was determined upon, but before it was organized the peo- 
 ple were driven away by a squad of grenadiers, sword in hand. Num- 
 bers were wounded by the troops employed in preventing the people 
 from exercising the right of meeting, granted them by the constitution. 
 The scene is described as horrible, neither women nor children being 
 spared. 
 
 On the fourth page of the Peruvian Mail of 30th July your excellency 
 will see an account of the bombardment of Iquique by the Chilians on 
 the 16th of July, and copies of the warm protest against the same ad- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 269 
 
 dressed by the consular corps to Admiral William Rebolledo, and of his 
 reply thereto. The same paper, on the first page, reports the opening of 
 the Peruvian Congress on the 28th of July, by General La Puerta, .acting 
 President of the Republic, and gives the address read by his Excellency 
 on that occasion ; also a short account of the successful cruise of the 
 Peruvian vessels Huascar and Union to the Chilian coast, during 
 which they captured the Chilian transport Rimac. The Mail of 13th 
 August, on the fourth page, states that a telegram from Arica on the 
 12th announces the return of the Huascar from another successful trip ; 
 and the paper of July 23 on page 7, says : "The government has found 
 itself compelled to issue a decree prohibiting the prefects of depart- 
 ments and other authorities leaving their offices and coming to Lima 
 with volunteers," whilst in Chili there is evidently a disinclination to 
 join the army, and much difficulty experienced in getting the men that 
 are needed. (See extract from La Patiia, of Valparaiso, on page 6 of 
 Peruvian Mail of 30th July.) 
 
 One more reference to the accompanying papers, and I will not allude 
 to them again. On pages 2 and 3 (July 23) are given copies of a let- 
 ter addressed on the 16th of June, by Mr. Jewell, esq., Her Britannic 
 Majesty's vice-consul at Iquique, to Her Britannic Majesty's charge d'af- 
 faires at Santiago, with reference to the treatment of Chilian prisoners 
 by the Peruvians, and of another written by the Chilian "minister of 
 foreign affairs, Hon. Jorge Huneens on the 27th June, in which he 
 says : "My government notes with pleasure the courtesy and delicacy 
 with which the Peruvian authorities treat the Esmeralda prisoners." 
 
 The Huascar, Union, and Pilcomayo in their several expeditions to the 
 Chilian coast, bearing in mind the various attacks of the Chilian fleet 
 on defenseless ports, such as Huanillos, Pabillon de Pica, and others, 
 might have retaliated by firing upon undefended ports in Chili, but they 
 did nothing of the kind, preferring to observe all the forms of civilized 
 warfare and attack none but armed enemies. 
 
 The results of the first five months of the war may be summed up 
 briefly. Chili has taken not one step forward. Her ships have with- 
 drawn from Pisaqua and Majillones, with their boats filled with dead 
 and wounded. She has lost the Esmeralda, and allowed herself to be 
 surprised, on the 10th of July, at Iquique by the Huascar. One of her 
 ironclads pursued a gunboat (the Pilcomayo) for twenty hours in vain. 
 She allowed the capture of a fine transport, (the Rimac), having on 
 board a regiment of cavalry, 250 horses, 800 rifles, forage, &c. She has 
 bombarded defenseless towns, and finally been obliged to raise the 
 blockade of Iquique. 
 
 Peru, on the other hand, has sailed her transports at will, despite her 
 enemy's superior navy, from port to port, carrying troops, arms, and 
 provisions. Her ships have made frequent excursions to the Chilian 
 coast, and while respecting non-combatants and undefended places, 
 they have destroyed many launcher: and other means of loading and dis- 
 charging vessels at sundry ports ; captured numbers of Chilian mer- 
 chant vessels, with valuable cargoes, destroyed the Esmeralda, taken the 
 Rimac, forced the raising of the blockade of Iquique, and compelled the 
 withdrawal of the enemy's fleet at Antofagasta. 
 
 From the foregoing your excellency will understand, I think, the 
 present position of affairs in Peru and Chili. In the former, the govern- 
 ment and the people are in full accord. In the latter, serious discon- 
 tent on the part of the people and press against the government, and 
 bitter charges by influential papers as to the conduct of the war and the 
 true reasons for taking possession of the Bolivian coast. 
 
270 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Finally, appreciating the uncertain issues of all wars, and knowing 
 that reverses may yet befall them, the Peruvian people have no desire 
 to boast over their successes; and thankfnl to Divine Providence for His 
 gracious aid thus far, and devoutly praying for the continuance of the 
 same, whilst sincerely deploring that the ambitious and selfish course 
 of the Chilian Government should have forced them into this war, they ' 
 are nevertheless firmly resolved to sustain their government to the ut- 
 most of their ability, but always in such a way that their cause and 
 mode of defending it shall win the approval and sympathy of all civil- 
 ized nations, and especially is it their hope that they may deserve and 
 secure the good- will of the people aud Government of these United 
 States, to which end I shall, with your excellency's permission, endeavor 
 to keep you advised of what is going on in Peru and the adjacent repub- 
 lics in all that relates to the war. 
 I avail myself, &c, 
 
 JOSE CARLOS TRACY. 
 
 No. 191. 
 Mr. Hunter to Mr. Tracy. 
 
 Department of State, 
 
 Washington, September 10, 1879. 
 Sir : I have the honor to acknowledge the receipt of ypur note of the 
 i'2d ultimo, advising the Department that you had received information 
 that the Government of the Colombian Union had disapproved the de- 
 cision of the president of Panama prohibiting the shipments of arms. 
 Accept, sir, &c., 
 
 W. HUNTER, 
 Acting Secretary. 
 
 No. 192. 
 Mr. Hunter to Mr. Tracy. 
 
 Department of State, 
 
 Washington, September 10, 1879. 
 Sir : I have the honor to acknowledge the receipt of your note of the 
 4th instant, with inclosures calling the attention of this Department to 
 the state of affairs on the Pacific coast of South America, and to assure 
 you in reply that the subject shall be taken into due consideration. 
 Accept, sir, &c, 
 
 W. HUNTER, 
 Acting Secretary. 
 
 No. 193. 
 Mr. Christiancy to Mr. Evarte. 
 
 No. 53.] Legation of the United States, 
 
 Lima, Peru, September 10,1879. (Received October 6.) 
 Sir: Referring to your dispatch No. 30, of August 8, 1 have the honor 
 to state that by reference to my dispatch No. 47, of August 26, you will 
 discover that I had anticipated your wishes, to a considerable extent, in 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 271 
 
 reference to the mission of Dr. Arosemena ; and 1 will now further say 
 that, judging from your general expressions of regret at the existence 
 of the present war between these republics, I felt myself authorized to 
 say, and did say to Mr. Arosemena, that I wished him entire success in 
 his mission, and could assure him that he might count upon the co-oper- 
 ation of the United States (through their representatives in the three 
 republics) in any reasonable measures to restore peace. He is an intel- 
 ligent gentleman, speaking English like a native, and in my opinion well 
 qualified for his special mission. He was very reserved as to the con- 
 siderations or means which he expected to employ to reach the desired 
 results, but did not conceal his anxiety to reach that result. 
 
 As yet I know of nothing to change the views expressed by me in my 
 dispatch No. 47, but I am morally certain that both Bolivia and Peru 
 desire to restore peace as soon as possible. Both ( I think) fear compli- 
 cations which may arise from the action of other governments in South 
 America, and not less the intervention of foreign governments, the results 
 of which cannot be foreseen, and which are contemplated with serious 
 apprehension. The attempt to secure the co-operation of Ecuador with 
 Chili against Peru and Bolivia is understood in official circles here to 
 have proved not only a failure, but a complete fiasco. 
 
 But I am satisfied this government is not without apprehension that 
 the efforts now making by Chili with the the government at Rio Janeiro 
 for an alliance against Peru and Bolivia may succeed, in which event it 
 is not difficult to foresee that a general conflagration throughout the 
 South American continent is a probable if not an inevitable result, as 
 Brazil is much the strongest of all the South American powers, has un- 
 settled questions of boundary with most of them, and is not supposed 
 to be specially interested in the preservation of the neighboring republics 
 with which she comes in contact, though it must be confessed that, as 
 yet, she has not shown herself specially aggressive as to most of them. 
 
 Such an alliance, therefore, as it seems to me, would keep up a chronic 
 state of warfare in South America for years to come, a result which 
 every friend of humanity and progress must regret. It therefore ap- 
 pears to me that the prosperity and happiness of all these governments is 
 likely to be best secured by preserving present boundaries and not allow- 
 ing any changes except by the mutual consent of the governments of the 
 adjoining countries. 
 
 As to intervention, I am satisfied that from whatever quarter it might 
 come it would be equally offensive to any of the three republics, except 
 that one (if any) in whose special interest it might be undertaken. And 
 yet, judging from the public press, there is supposed to be some ground 
 for a probable belief of a joint intervention of England, Prance, and 
 Germany. I do not myself share that belief. But should such a step 
 be in contemplation, or should any government seek to intervene, I have 
 satisfied myself that Bolivia and Peru would welcome any efforts of our 
 government to thwart its consummation ; and if we can judge from the 
 tone of the Chilian press (copies of which I sent you last week), Chili 
 would be likely to take a similar view. As to a tender of the friendly 
 offices of our government, or a friendly mediation, it could not of course 
 be considered offensive to any of the belligerents; and 1 am entirely sat- 
 isfied it would be received in the kindest spirit (at present subject to the 
 conditions mentioned in my dispatches 36 and 47) by Peru and Bolivia, 
 and know of no reason why it should not also by Chili, unless the un- 
 fortunate attempt recently made at Santiago in favor of peace may have 
 ereated some prejudice. 
 
272 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 It would be very agreeable to me to receive some general or specific 
 instructions upon these subjects from the Department for the govern- 
 ment of my action. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 194. 
 -If*-. Christiancy to Mr. Evarts. 
 
 No. 59.] Legation of the United States, 
 
 Lima, Peru, September 17, 1879. (Eeceived October 7.) 
 
 Sir : I have the honor to inclose to you a copy of an editorial in the 
 Comercio of this city, of the 13th instant, with a translation of the same, 
 in reference to the supposed mission of Col. H. X. Fisher. 
 
 I have no comments to make except to say that, from all I have been 
 able to observe, the effect of Colonel Fisher's action, his ostentatious pre- 
 tensions, and the public professions which he made of the importance of 
 his pretended mission, have had anything but a good effect along the 
 coast of Peru aud Bolivia, the tendency of his conduct along the coast 
 (whatever it may have been in Chili) having been to place the United 
 States in a ridiculous rather than a dignified attitude, and thus to lessen 
 the influence which our government deserved to have and would have 
 had but for his pretensions. I hope these are the only occurrences along 
 this coast which have had such a tendency. 
 
 I have further the honor to say that I am glad to see from your dis- 
 patch No. 32, in reference to Colonel Fisher, " the desire of the United 
 States government to lend its good offices" to ''bring about a peace." 
 And I am rejoiced to see by your dispatch No. 33 that our government is 
 ready to approve any reasonable and judicious action of her ministers 
 in these republics for the restoration of peace. 
 
 No action of mine shall be wanting to contribute to so desirable a 
 result. But I still remain of the opinion I have already several times 
 expressed to you, that no efforts of the ministers of the United States to 
 these republics will be of any avail until the belligerents have tried their 
 strength and one of them suffered serious reverses, or until one or all of 
 them have so far exhausted their resources as to be unable to prolong the 
 contest. 
 
 In the mean time I have taken the hberty, in a confidential and infor- 
 mal manner (which I deem much the best in the present stage of the 
 case), to inform the minister of foreign affairs that our government is 
 ready to tender its good offices to bring about peace whenever it shall be 
 satisfied that such a course will be agreeable to all the belligerents. 
 
 I will further say that, judging from your dispatch .No. 33, and mine, 
 No. 36, to which it is an answer, should all the belligerents signify a will- 
 ingness to accept the arbitration of the United States, or any depart- 
 ment or officers thereof, upon any or all the questions in dispute between 
 them, I shall consider myself authorized to pledge our government to 
 accept that position; unless, in the mean time, I shall receive instructions 
 to the contrary. But I would much prefer more direct instructions, and 
 the probability now is there will be ample time to receive them before 
 such action shall become necessary. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 273 
 
 [IncloBure in No. 59. — Translation of editorial from El Comeroio, of September 13, 1879.] 
 
 Doubts existed in New York as to the truth of the offer made by the Government at 
 Washington to interpose its good offices amongst the republics of the Pacific engaged 
 in the war that Chili has diligently sought and declared without vacillating. One of 
 the reasons upon which these doubts were based was the silence on this subject kept 
 by the Herald, a newspaper which has a service well known to all the world, and 
 whose means of investigation are so efficient that it can know any serious event oc- 
 curring in the most remote regions, perhaps before and with more precision than those 
 directly interested. 
 
 Another cause of these doubts as to the uncertainty of an event that came to the 
 notice of the North American public through Peruvian newspapers was that Mr. 
 Fisher's name, being so little known in the Union, he should have been commissioned 
 to carry the dispatches with which the Washington Government charged its ministers 
 residing in Lima and Santiago to offer its mediation to Peru and Chili. But the 
 doubts were soon dissolved, and the Herald announced that Mr. Horace W. Fisher, a 
 Boston merchant, had been to Washington in June last soliciting an interview with 
 the President and the Secretary of State respecting the commercial relations between 
 the United States and the South American republics; and in consideration of the pro 
 posed trip of Mr. Fisher to Chili, he was designated to carry the dispatches that the 
 government of his country had resolved to address to its consuls and ministers in Chili 
 and Peru. 
 
 According to the North American press, Mr. Fisher had no other motives to take an 
 interest in there-establishment of the good relations between Peru and Chili than the 
 desire of favoring the commercial interests between the United States and the repub- 
 lics on the Pacific — interests that affected the personal convenience of the said Mr. 
 Fisher and the possession of several very close relations with the high society of Chili 
 whose statesmen are his personal friends. As it will be seen by the preceding narra- 
 tion there is nothing to be surprised at in the lack of information of the Herald in re- 
 gard to the mission of Mr. Fisher. It was not officially prepared, and the Washing- 
 ton Government created it and confided it at the instances of the party that under- 
 took it. 
 
 The kind of relation existing between Mr. Fisher and the men who, in Chili, are 
 masters of the situation leads us to believe that these are not altogether strangers to 
 the solicitude of the good offices of the United States ; and if these offers have not 
 until now had a satisfactory result, it is probably owing to the proposals having been 
 made in a moment in which Chilian pride could not have accepted them without 
 being obliged to suffer a severe blow. 
 
 No. 195. 
 
 Mr. Christianoy to Mr. Uvarts. 
 
 No. CI.] Legation of the United States, 
 
 Lima, Peru, September 24, 1879. (Eeceived October 15.) 
 
 Sir : I have the honor to inclose to you an editorial from the Co- 
 mercio, of this city, of the 22d instant, in reference to the offer of the 
 good offices of the United States to Peru; also a translation of the 
 same. 
 
 This paper is perhaps, properly speaking, the government paper. 
 
 This editoral is not, however, written by the editor, but I recognize it 
 
 as from the pen of , a citizen of the United States, who is the official 
 
 interpreter for the government and who frequently writes a little for the 
 papers. 
 
 You will readily discover that the editoral has two objects ; first, to 
 ridicule the course taken by Mr. Pettis and Colonel Fisher; and the 
 second object is to profess an utter indifference whether the good offices 
 of our government shall be tendered or not. This is for effect, especially 
 in Chili, where it seems just now that any interference of our govern- 
 ment would be unpopular on the suspicion that it would be in the interest 
 of Bolivia. But I am satisfied beyond any reasonable doubt that both 
 S. Ex. 79 18 
 
274 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 Peru and Bolivia are very desirous that the United States should inter- 
 pose their good offices at the first moment when such action would be 
 likely to do good. Both are evidently desirous of peace, and Peru would 
 agree to any reasonable terms satisfactory to Bolivia, in whose behalf 
 she was drawn into the war. 
 
 In a long and frank conversation yesterday with the minister of foreign 
 affairs, I again gave him the assurance (mentioned in my dispatch No. 
 59) that our government was ready to tender its good offices to all the 
 belligerents in behalf of peace whenever there should be good reason 
 to believe that it would be acceptable to all the belligerents. I offered 
 to make this tender formally, and officially, if he preferred; but, like me, 
 he thought best to leave it in this informal shape for the present. 
 I have, &c, 
 
 I. P. CHBISTIAXCY. 
 
 [Inclosure in Ho. 61. — Translation of editorial from El Comercio.] 
 
 Every now and then there springs up anew in our periodical press the idea that the 
 United States are about to offer their good offices in regard to the war which Chili de- 
 clared against us and which she is carrying on in such an inglorious manner. 
 
 This idea, besides being highly acceptable in itself to all those who see in peace the 
 fount of every blessing, professes also the prestige which is imparted by the name of 
 a nation which enjoys our high estimation, not only for its sentiments towards us, but 
 also for the good judgment, or rather the care it exercises in the choice of the agents 
 it sends as its representatives. 
 
 Without giving offense to any one, it maybe said that among foreign nations one of 
 those which inspires us with most consideration is the American Union, whose com- 
 merce we endeavor to attract by all possible means, and which, in all questions of 
 honor and aspirations for the future, is the one which is naturally looked to by the 
 republics of this continent. Hence the mania of bringing up the subject at every step ; 
 hence the everlasting newspaper correspondence from the banks of the Hudson, written 
 by well-intending scribes, about "Anglo-American mediation," but which, when wrung 
 out, do not contain one grain of substance. 
 
 It chances, moreover, that one of the Washington diplomatists, who is accredited 
 to Bolivia, undertook to gain for himself the credit of making peace between the bel- 
 ligerents by his own efforts, undertaking, on his own responsibility, journeys to this 
 capital and to Santiago, where he succeeded, in recompense of his laudable Quaker- 
 ism, in unchaining the wrath of a portion of the press, which alleged, and with it the 
 ignorant people, that he was trying to impose mediation by force, while in Lima, per- 
 chance, because all were in his secret, his good will was accepted, as was deserved by 
 the nature of his project, by his intentions and the gentlemanly character of the self- 
 acting messenger of peace. 
 
 But neither in Lima nor in Santiago was he asked to show the credentials of his 
 mission, which he did not possess, and he was politely treated for his efforts, without 
 taking advantage of them. 
 
 Another peaceful dnst was kicked up about the arrival of Colonel Fisher, who was 
 said to be the bearer of dispatches from the White House, concerning mediation in 
 the conflict, by the aid of the three American legations in La Paz, Lima, and Sant- 
 iago. We did not trouble ourselves here to deny this rumor, since it was a matter 
 of indifference to us, knowing, as we did, that the colonel had no mission from 
 the American Cabinet, and that his journey, even though he was the bearer of dis- 
 patches on subjects very different from peace, or intervention had for its object the 
 attainment of private interests, or the satisfaction of renewing in Chili friendship 
 with persons who were then in the -high offices, whence they were shortly hurled 
 by the ridicule attending the naval operations of Eebolledo and the loss of vessels 
 attributed to the stupidity of the commander-in-chief of the navy, at Valparaiso. 
 
 The fact is, in brief, that neither have the envoys of the Union received, up to date, 
 any powers from their government to offer their good offices, nor have any of the 
 Americans who have tried their fortunes in a mission of peace ever been able to pre- 
 sent any credentials from the Cabinet, by which they were nevertheless employed for 
 very different purposes. We do not say that they acted wrongly, but only that they 
 proceeded on their own account, without the consent, and, perchance, without even 
 the knowledge of their government. 
 
 Only the representative of Great Britain in Lima, the honorable Mr. St. Johns, has, 
 as far as we know, made with sufficient authority a formal proposal in the name of 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 275 
 
 his government to interpose the good offices of the Queen "before the outbreak of 
 hostilities." Unfortunately, hostilities had not only commenced, but the Bolivian 
 who acted as Chilian admiral had already promenaded along onr coast with the in- 
 cendiary torch in one hand to burn all our unarmed towns, and in the other the fuse 
 of his cannon, with which he assaulted women and children, and fired upon the wag- 
 ons in which families were fleeing before the modern buccaneers of the Pacific, while 
 the Chilian iron-elads, which have shown themselves so averse to combat, were pre- 
 venting the shipment of our immense wealth of saltpetre, after destroying the plat- 
 forms and canals for the lading of guano, and after perfidiously robbing Bolivia of her 
 deposits and factories at Antofagasta. 
 
 It is' now necessary to state once for all, spite of the kind intentions of unauthor- 
 ized agents and the cackling of an uninformed press, that the mediation of the United 
 States has never been legitimately offered to Peru, and that well-wishing officious- 
 ness must not be confounded with the employment of express faculties, such as are 
 necessary for success in cases like the present. 
 
 No. 196. 
 
 Mr. Christiancy to Mr. JEvarts. 
 
 No. 62.] Legation of the United States, 
 
 Lima, Peru, September 24, 1879. (Received October 15.) 
 
 Sir : Referring to my dispatch No. 53, upon the question of inter- 
 vention of foreign powers, I have the honor to state, as having a pos- 
 sible bearing upon that question, the fact, which I have ascertained 
 from the most authentic source, that England, which has already upon 
 this coast the Turquoise, a wooden corvette, and the Triumph, a first- 
 class iron-clad, has ordered another iron-clad to this station, which 
 may soon be expected to arrive. 
 
 It is true that England has a larger commerce upon this coast than 
 any other nation, but I have not been able to discover that it has been 
 or is likely to be interfered with by either of the belligerents in viola- 
 tion of any principle of the law of nations. But there may be an ap- 
 prehension that, under the decree of President Daza in reference to 
 privateers, there may result injury to British commerce ; and though 
 England has no treaty with Bolivia, I have the best evidence that Eng- 
 land intends to claim for her commerce the same advantages in this 
 respect secured to the United States by our treaty with Bolivia. 
 
 Bolivia, at present, has no port on the Pacific to which prizes made 
 by her privateers (if any) could be brought for adjudication ; and Peru, 
 her ally, having become a party to the treaty of Paris against priva- 
 teering, it becomes a serious question whether she could lend her ports 
 to Bolivia for such purpose. 
 
 My own opinion is that the increased naval force of England on this 
 coast has reference mainly to this question of privateering. 
 
 If the Department has any instructions to give me in reference to the 
 probable questions to arise upon this aspect of affairs, I should be very 
 glad to receive them soon. 
 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 197. 
 Mr. Christiancy to Mr. Hvarts. 
 
 Legation of the United States, 
 Lima, Peru, September 24, 1879. (Received October 15.) 
 Sir : I inclose you a copy of a private letter, of this date, written 
 by me to Mr. Osborn, our minister in Chili, which will sufficiently explain 
 
276 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 itself. In my opinion, Mr. Osborn holds the only key to the present 
 position of affairs in reference to peace. Whether he will be able to 
 accomplish (or whether any one could) anything practical before the 
 parties hare tried their strength, is very problematical. But it has 
 seemed to me that the course I hare suggested is the only one that 
 offers any prospect of success at present, and that the experiment sug- 
 gested is worthy of trial in the quiet way which I have suggested. 
 
 My letter to Mr. Osborn is marked private, but you are at liberty to 
 treat that letter as well as this either private or official, as you shall think 
 best. I would like to know your determination in this respect, so that 
 I may give it a fractional number, if treated as official, for which I re- 
 serve a place in the record, and if treated as official, this letter will be 
 numbered as dispatch No. 62J. 
 I have, &c, 
 
 I. P. CHEISTIAXCY. 
 
 [Iaclosure.] 
 
 Mr. Chriatianej to Mr. Osborn. 
 
 Private, No. 27.] Legation of the United States, 
 
 Lima, Peru, September 24, 1879. 
 
 Sik : Deeply impressed, as I am, with the importance to all these republics of a resto- 
 ration of peace between all the belligerents at the earliest possible moment, and feel- 
 ing alike anxious for the prosperity and progress of all ; and believing that you, as an 
 American citizen, must necessarily share the like sentiment, I write this for the pur- 
 pose of making some practical suggestions which, it seems to me, may have a tendency 
 to bring about the desired result. 
 
 Premising first, that from dispatches received from the Secretary of State, I feel my- 
 self authorized to offer the mediation or friendly offices of our government to bring 
 about a peace, whenever it shall appear probable that such an offer will be accept- 
 able to all the belligerents — of which I have in an informal and confidential manner 
 assured the Peruvian Government — and believiDg that yon must also have received 
 dispatches which would authorize you to act in similar manner towards, and to give 
 like assurances to, the Government of Chili. Secondly, knowing that both Pern and 
 Bolivia are desirous of peace upon any terms that would not be considered humiliat- 
 ing, but that owing to the fact that Chili initiated the war by the seizure of Bolivian 
 territory, and that Peruwas drawn intothe war against her wishes incompliance with 
 her treaty with Bolivia, and that Chili declared the war ; for which reasons, both 
 Bolivia and Peru naturally feel that it would be lowering their dignity to make the 
 first advance or proposition for peace, unless, possibly, upon the condition that the ter- 
 ritory seized should be surrendered to Bolivia ; and that Chili may also feel that she 
 would be humiliating herself to make a proposition for peace upon such terms; yet 
 believing that she also must be desirous of peace upon any terms not humiliating to 
 her, as the war is exhausting her resources as well as those of the other belligerents ; 
 that she might, therefore, without humiliation or loss ' f dignity make a proposition 
 for a division of the territory seized from Bolivia, which might, after modifications by 
 counter propositions, be accepted by Bolivia and Peru. 
 
 In view of all these considerations, I would suggest, that to avoid bloodshed, and, as 
 likely to result in the restoration of peace, the Chilian Government might be induced 
 to make a proposition for peace on the basis of dividing the territory seized — that is 
 the simple degree of latitude between 23 and 24. The proposition as first made might 
 not be accepted ; but the ice once broken by a proposition, which might be modified 
 by a counter proposition, and this by others, I am strongly inclined to believe, would, 
 in the end, result in peace, either by reference to the United States alone, or (which 
 it seems to me might be preferable) to our government and the United States of Colom- 
 bia, aud the Republic of Ecuador, or some other government or governments in con- 
 junction with the United States. 
 
 The great difficulty, in iuy opinion, to be overcomeis to get either party to make the 
 first proposition. Because, if the first, step in negotiations can be initiated, I think 
 all the other necessary steps will be likely to follow, and that peace (so essential to 
 all) will be likely to result. It may be, and I fear such is the fact, that no efforts for 
 peace can be made available until the parties have tried their strength and one or the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 277 
 
 otber suffered a terrible reverse ; but the plan I have suggested is the only one which 
 occurs to me as likely to lead to such a result, without the calamities incident to such 
 a trial of strength. 
 
 And now, in conclusion, allow me to suggest that, in my opinion (which may be er- 
 roneous), the best course to pursue, until some definite result can be reached, will be 
 the most quiet, unobtrusive, and informal one, avoiding all such ostentation and 
 parade as that which our friend seemed to think essential, but which defeated, in ad- 
 \anoe, all the efforts which he could have made. It is time enough for publicity when 
 a practical result is reached ; and this can never be reached if all the proceedings, 
 from the first, are to go into the newspapers, where they must depend upon the uncer- 
 tain and fluctuating current of popular passions and prejudices. 
 
 I hope you will keep me advised of any information you may obtain upon any of 
 the points above suggested. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 198. 
 
 Mr. Hunter to Mr. Ghristiancy. 
 
 No. 39.] Department op State, 
 
 Washington, October 1, 1879. 
 
 Sir : Your No. 49 of the 2d ultimo, in relation to the visit of Mr. S. 
 Newton Pettis to Santiago, has been received. 
 
 I have, in the first place, to give approval to the views which, as you 
 state, you have expressed with regard to the existing war with Chili, 
 and the possibility of the intervention of this government, at the in- 
 stance of the combatants, and in the direction of a peaceful and honor- 
 able arbitration. Some months ago, on being approached by the Gov- 
 ernments of Great Britian and Germany on the subject, this govern- 
 ment explicitly replied that it would regard such a movement as pre- 
 mature then, and would not take part in any intervention which might 
 imply disparagement of belligerent rights, or which might not be solic- 
 ited by the parties to the struggle. 
 
 The visit of Judge Pettis to Lima and Santiago appears to have been 
 prompted by kindly motives of peace, and his object appears, from his 
 own reports, to have been limited to endeavoring to make each of the 
 three governments concerned privately acquainted with the desires of 
 the others for the termination of the contest, and. the extent to which 
 each might be disposed to make concessions should the three agree to 
 submit their deplorable differences to neutral arbitration. His expedi- 
 tion was undertaken entirely without instructions from this government, 
 and the completely unofficial character of his effort is understood to be 
 fully known to the cabinets of the three countries. His reports of his in- 
 terviews with the foreign ministers of Peru and Chili make it impossible 
 to believe that his language could have been construed as implying a 
 threat of intervention on the part of the United States toward either, 
 and least of all toward Chili. In this respect the malevolent comments 
 of a hostile press may be disregarded, except so far as they may indi- 
 cate a tendency of the popular feeling and so shape the course of the 
 local government in the emergency. 
 
 Mr. Pettis's experiment, unauthorized and even rash as it might ap- 
 pear, has, at least, led the contestants to a healthy consideration of the 
 terms on which an honorable termination might be put to the war. 
 Should the knowledge of the views of each other thus gained conduce 
 to an ultimate settlement, this government could not but rejoice at the 
 result. It is not, however, disposed to dictate a peace or even to urge 
 
278 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 the conditions on which it may be reached. Its good offices have not 
 been, and are not now, officially tendered ; but if sought, on a practica- 
 ble basis of settlement submitted by the combatants, the President will 
 not hesitate to use them in the interest of peace. 
 I am, &c, 
 
 WM. HUNTER, 
 Acting Secretary. 
 
 No. 199. 
 
 Mr. Uvarts to Mr. Christiancy. 
 
 No. 40.] Department of State, 
 
 Washington, October JL3, 1879. 
 
 Sir : I have read with much interest your No. 59 of the 17th ultimo, 
 concerning the question of tendering the good offices of the United 
 States to the South American belligerents in the interest of peace. 
 
 The recent instructions of the Department to you in relation to the 
 self-constituted mission of Judge Pettis will have gone far towards 
 supplying you with the specific instructions you have now requested. 
 
 It remains only to add my appreciation of the wise conclusions you 
 appear to have drawn from the data accessible to you, and to express 
 my approval of your confidential and informal statement to the Peru- 
 vian minister of foreign affairs that this government is ready to ten- 
 der its good offices to bring about peace whenever it shall be satisfied 
 that such a course will be agreeable to all the belligerents. Should 
 you find in official circles any adverse impression derived from the acts 
 or statements of Judge Pettis or Mr. Fisher, you may, in your discre- 
 tion, still further fortify your statement by the assurance that this gov- 
 ernment neither coutemplates proposing or joining in any movement 
 looking to friendly interposition, unless it shall be the evident desire 
 of all the parties to the struggle that such a course should be adopted 
 in behalf of peace. 
 
 Should a desire for the settlement of the dispute be limited to a co- 
 incident request for the good offices of this government alone on a prac- 
 ticable basis of reference of the causes of the dispute, in whole or in 
 part, you are authorized to pledge the immediate and earnest consid- 
 eration of this government with a view to using its best endeavors 
 toward peace. But I am reluctantly constrained to adopt your judg- 
 ment that no such conclusion is likely until the belligerents have fur- 
 ther tried their strength. 
 I am, sir, &c, 
 
 WM. M. EYAPtTS. 
 
 No. 200. 
 
 Mr. Christiancy to Mr. Uvarts. 
 
 No. 64.] Legation op the United States, 
 
 Lima, Peru, October 14, 1879. (Received November 10.) 
 Sir : I avail myself of the opportunity of sending this dispatch by 
 Mr. Porter 0. Bliss, who goes by a special steamer (chartered by the 
 government) to Panama and thence to New York in advance of the 
 mail steamer. 
 
AFFAIES IN CHILI, PERU, AND BOLIVIA. 279 
 
 The most important event of which I wish to advise you is the loss, 
 on the 8th instant, of the Peruvian turreted ironclad Huascar, com- 
 manded by Admiral Grau, who lost his life in the conflict. 
 
 This small vessel, under the skillful management of this able officer, 
 had for nearly five months not only baffled but completely paralyzed 
 the whole Chilian fleet, including two enormous iron-clads, and kept 
 open free communication by sea for Peruvian transports from the north 
 to Arica and Iquique, and all the southern coast. 
 
 I have not the time to describe the particular manner in which the 
 Huascar was lost, and it is, not necessary, as I send you, inclosed, as 
 full an account of the transaction as has yet reached here, taken from 
 the South Pacific Times. 
 
 The loss of this single vessel changes the whole aspect of the war ( if 
 war it can be called, which has consisted almost entirely of the achiev la- 
 ments of this single vessel and the efforts of the Chilians to take her), 
 and gives, for the time being, the Chilians full control of the sea, 
 though (unless the port of Callao should be blockaded) I think the Pe- 
 ruvians may still keep open their communications by water with their 
 army in the south ; but it will be at the risk of having occasionally a 
 transport taken ; and the government is, I have no doubt, making the 
 utmost efforts to compensate, at the earliest possible moment, the loss 
 of the Huascar by procuring still more efficient vessels. But it will be 
 difficult, on this coast, to find the man to fill the place of Grau ; such 
 men are not often found anywhere. 
 
 But the most lamentable effect, in my opinion, of this catastrophe is 
 that it destroys all present prospects of peace. The Chilians, from the 
 best information I can obtain, but for this, would have been likely 
 soon to favor negotiations for peace on some terms. For awhile, at 
 least, they will probably be so much elated that they would not be 
 likely to listen to any reasonable terms. But the operations by land, 
 which seem now about to commence, may or may not change the as- 
 pect of affairs. 
 
 Bolivia and Peru have all along been intensely anxious for peace, and, 
 as a means to that end, for the friendly mediation of the United States. 
 And it seems to me manifestly for the interest of all the belligerents 
 alike that peace should be restored at the earliest possible moment, and 
 that, in the final adjustment, long-recognized boundaries should be dis- 
 turbed as little as possible, and that whatever compensation should be 
 made by or to any of the belligerents should be pecuniary rather than 
 territorial, as the latter will be a continual cause of further conflicts in 
 the future. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [The inclosure referred to in Mr. Christiancy's No. 64, is a long printed 
 extract from the South Pacific Times, giving the report of Capt. Y. 
 Garcia of the capture of the Huascar, which is not deemed of sufficient 
 importance to transmit to Congress.] 
 
 No. 201. 
 Mr. Tracy to Mr. Evarts. 
 
 Legation op Peru, 
 New York, October 17, 1879. (Received October 18.) 
 
 Sir : The Republic of Chili, as your excellency knows, took forcible 
 possession of a portion of the Bolivian coast under the pretext of re- 
 
280 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 vindicating her own territory, and notwithstanding all the efforts of the 
 Peruvian Government to effect a friendly settlement between the two 
 republics, tendering at first its good offices, and afterwards its services 
 as mediator, in order to avert a scandalous conflict, Chili declared war 
 against Peru, and immediately commenced hostilities. 
 
 The Government of Peru has already shown, in various official docu- 
 ments, that the war had long been prepieditated by Chili, and recent 
 publications of prominent Chilians furnish additional proofs thereof. 
 I do not propose, however, in this communication to call your excel- 
 lency's attention to these publications. At some other time, with your 
 permission, I may do so. The object of this note is to make known to 
 the Government of the United States the course which that of Chili 
 has thought proper to pursue in its efforts to accomplish its schemes 
 against the Republic of Peru. 
 
 I need not remind your excellency that long prior to the commence- 
 ment of hostilities, Chili had in various ways sought to conclude trea- 
 ties of alliance with a number of the South American republics, for the 
 purpose of acting against Peru, and despoiling her of some of the most 
 valuable portions of her territory. Especially had she labored with 
 Bolivia to separate her from Peru, and to persuade her to enter into an 
 alliance against the latter. The base propositions made, soon after the 
 war was declared, to General Daza, President of Bolivia, in behalf of 
 Chili, by Don Justiniano Sotomayor, consul of Chili, at Corocoro (Bo- 
 livia), which were made public as soon as received by the President of 
 Bolivia, are, of course, known to your excellency, and it was naturally 
 supposed that Chili would at once desist from further efforts to induce 
 Bolivia to adopt a traitorous course against her friend and ally, Peru. 
 The press of Chili, to shield the government from the scorn and indig- 
 nation that such a step must maturally produce in all Christian na- 
 tions, affirmed that Senor Sotomayor had acted without any authority, 
 and that the government was in no way responsible for his action. 
 How much truth there was in these assertions may be gathered from 
 two documents recently published in the war bulletin (boletin de 
 guerra) of the Bolivian army, of 10th September last, of which I have 
 the honor to inclose translations cut from a Lima newspaper, which, 
 although substantially correct, differ somewhat from the original, and 
 might be considerably improved. I therefore also hand you herewith 
 copies of certified copies of the originals sent to me by the minister of 
 foreign affairs of Peru. 
 
 The President of Bolivia, it is almost needless to add, indignantly re- 
 jected these infamous propositions, which it is hard to understand how: 
 any government, styling itself civilized, could dare to offer, and at once 
 communicated them to the government of the country which he had 
 been invited to betray. 
 
 These documents reveal the false and disloyal policy that has ever 
 guided the Chilian government when seeking to enlarge its territory, 
 and prove that it will stop at no means, however base, to attain its 
 ends. What reliance is to be placed on the promises or assertions of 
 statesmen capable of making such a proposition, it is not for the un- 
 dersigned to say. He simply submits these documents to your excel- 
 lency for your information, knowing full well that the Government of 
 the United States will properly judge the conduct of Chili in this mat- 
 ter. 
 
 The undersigned avails himself, &c. 
 
 JOSE CAELOS TRACY. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 281 
 
 llnclosure No. 1.1 
 
 Dishonorable propositions of the Chilian Government. 
 
 Without commenting upon them, we publish here some official documents which will 
 prove how far the Government of Chili can stoop in matters of low political intrigue. 
 
 RepIJblica de Chile, Ministerio de Relaciones Exteriores, 
 
 Santiago, May 29, 1879. 
 The Government of Chili being interested in a speedy termination of the war main- 
 tained against Bolivia, it beholds with pleasure your inclination to aid it to attain that 
 desire. 
 
 Consequently the Government of Chili would view with satisfaction your approxi- 
 mation to His Excellency the President of Bolivia and your declaration of our senti- 
 ments respecting that end. 
 
 My government hopes that the Government of Bolivia will lend a willing ear to all 
 your exponents in this acceptation, and in conformity with what you have offered in 
 the conferences we have had together. Your personal antecedents and the present 
 letter will testify your authorization. 
 Assuring you now of my gratitude of the noble spirit that animates you, 
 I remain your obedient servant, 
 
 DOMING SANTA-MARIA. 
 
 To Sefior Don . 
 
 (Copy:) El jefe de seccion. 
 
 J. F. GUERRA. 
 
 flnclosure No. 8-1 
 Bepiiblica de Chile — Ministerio de Relaciones Exteriores. 
 
 BASES. 
 
 1st. The friendly relations that have ever existed between Chili and Bolivia, and 
 which have only been interrupted since February of the present year, shall be reunited. 
 Consequently the war between the two republics shall cease, and the armies of each 
 shall be considered in future as allied in war against Peru. 
 
 2d. In attestation that all motives of discord shall disappear between Chili and 
 Bolivia, the last-mentioned republic shall recognize as the exclusive property of Chili 
 all the territory that has been mutually disputed, and which is comprehended within 
 the parallels 23 and 24, S. L. 
 
 3d. As the Republic of Bolivia has need of a portion of Peruvian territory in order 
 to readjust its own, and give it an easy means of communication with the Pacific, 
 which it has not at present, without being subject to the trammels which the Peruvian 
 Government has ever laid upon it, Chili will not embarrass the acquisition of such 
 territory, neither will it oppose its definite occupation by Bolivia, but, on the con- 
 trary, will give it the most efficient aid. 
 
 4th. The help given to Bolivia by Chili during the actual war with Peru will con- 
 sist of grants of arms, money, and other articles necessary for the better organization 
 and service of its army. 
 
 5th. Peru beiDg conquered, and the time for peace stipulations having arrived, peace 
 cannot be effectuated by Chili unless Peru celebrate it also with Bolivia; in which case 
 Chili will respect the concessions of territory that Peru may make to Bolivia, or that 
 she may impose on Peru ; neither may Bolivia effect a peace without the concurrence 
 and interposal of Chili. 
 
 6th. Peace being proclaimed, Chili will leave Bolivia all the armament that may be 
 considered necessary for the use of its army and for maintaining in security the terri- 
 tory that may have been ceded by Peru or have been obtained from it by occupation, 
 without any claim being made for the sums of money that may have been disbursed 
 during the war, which at no time will exceed six hundred thousand dollars. 
 
 7th. It remains in consequence established that the indemnification of war that Peru 
 may have to pay Chili must of necessity be guaranteed, considering the financial con- 
 dition of Peru and its informality in the fulfillment of its promises, by the saltpetre 
 works of the department of Tacapaca and the guano and other substances that may be 
 found there. 
 
 A special convention will arrange this matter. 
 
 Similar conventions will be instituted regarding other points which it may be nec- 
 essary to demand, investigate, and arrange. 
 
 (Copy.) 
 
 J. E. DE GUERRA, 
 
 Jefe de Seccion. 
 
282 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 202. 
 
 Mr. Seward to Mr. Tracy. 
 
 Department of State, 
 
 Washington, October 21, 3879. 
 Sir : I have had the honor to receive your note of the 17th instant, 
 accompanied by documents, supposed to show early in the war between 
 Chili and Bolivia an attempt on the part of the government of the 
 former republic to detach Bolivia from its alliance with Peru. 
 
 In reply, I have the honor to acquaint you, that the papers adverted 
 to will be taken into consideration whenever this Department may have 
 occasion officially to entertain the question to which they relate. 
 Accept, sir, &c, 
 
 F. W. SEWAED, 
 ' Acting Secretary. 
 
 No. 203. 
 
 Mr. Seward to Mr. Christiancy. 
 
 No. 42. j Department of State, 
 
 Washington, October 22, 1870. 
 
 Sir : I have to acknowledge the receipt of your dispatch of the 24th 
 ultimo, in which you inclose a copy of a private communication sent 
 by you to Mr. Osborne, minister of the United States at Santiago, offer- 
 ing some suggestions on the subject of possible negotiations for peace 
 between the governments of Chili, Peru, and Bolivia. 
 
 The Department appreciates the force of your suggestions, and can 
 perceive that much good might result to all parties, should a proposi- 
 tion of the character referred to by you be made, and the natural nego- 
 tiations follow thereupon, since this course would tend in the strongest 
 manner to the desirable consummation of peace. It is trusted there- 
 fore that events may shape themselves to this end, either through the 
 scheme which you regard so promising, if adopted, or some other way. 
 Meantime it is of course desirable, as far as this government is con- 
 cerned, to adhere to the methods recommended in the previous instruc- 
 tions of the Department. 
 
 Tour dispatch will be regarded as " official," but, at the same time, 
 confidential, and will be numbered as you suggest, " 62 J." 
 
 When dispatches are of a confidential character you can prefix the 
 word u confidential," or some other of like import ; numbering the same, 
 however, in the regular order. 
 I am, &c, 
 
 T. W. SEWAED, 
 
 Acting Secretary. 
 
 No. 204. 
 Mr. Christiancy to Mr. JEvarts. 
 
 No. 70.] Legation of the United States, 
 
 Lima, Peru, October 28, 1879. (Eeceived November 24.) 
 Sir : In compliance with my duty to keep you informed of the prog- 
 ress of the war, I have the honor to state that since my dispatch, No. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 283 
 
 64 (October 14), and I may say since the capture of the Huascar on the 
 8th instant, no visible progress in actual warfare has been made by any 
 of the belligerents. Everythingseeinstohaveremained at a dead stand- 
 still. The period has been one of suspense, of vague apprehensions 
 and expectations. The only sign of activity on the part of the Chilians, 
 so far as information has reached here, is that some of the Chilian ves- 
 sels, one iron-clad and several transports, have been passing up and 
 down the' coast from Antofagasta to Arica, but actually attempting 
 nothing. The Peruvians, however, apprehend a descent upon their 
 southern or central coast. They have ceased to fear an attack upon 
 Lima, which, had it been made immediately after the capture of the 
 Huascar, might very probably have resulted in the capture of Lima, had 
 they landed at Aucan or some other port near Lima. Callao is too well 
 defended to be taken by a fleet. But the opportunity for such an attack 
 upon Lima has been lost, if my information from an official source is 
 correct as to the number of men here. Additional forces have been 
 raised and equipped here, as I am informed, and the force which could 
 now be readily made available here is about 12,000 men, and could 
 quickly be raised to 15,000. 
 
 As to operations between the armies exclusively by land, there have 
 been none, and, so far as I can see, there are not likely to be any imme- 
 diately. The desert of Allacouna still remains between the opposing 
 armies, and either army which should attempt to cross to meet its oppo- 
 nents might emerge from that desert so weakened as to become an easy 
 prey. 
 
 The Chilians at present have command of the sea ; but a strange 
 paralysis seems to check their action. In the mean time Peru has sent 
 a commission to Europe for the purchase of ironclads, which will enable 
 them to meet their opponents on equal terms, and such, I have no 
 doubt, will be the result of the Chilian fleet remaining as inactive as 
 at present. 
 
 There is one enterprise, at least, which I have been anticipating, but 
 of which there is no present indication, except the ominous apprehen- 
 sions of the people here. This would cut off all .communication between 
 the government with its base of supplies, and their principal army, 
 Avhich is in the south. I suspect, however, that the true reason why 
 this is not undertaken is the fear of torpedoes, of which there is here 
 a large supply, with men from abroad skilled in working them. It was 
 this fear, I suspect, which raised the blockade of Iquique, and has pre- 
 vented an attack upon that place and Arica. Should Callao be block- 
 aded, and the mail steamer prevented from entering or taking the mail, 
 I shall be cut off from all safe means of communicating with your De- 
 partment, and shall have to act upon my own judgment in the emer- 
 gencies which may arise. 
 I am, &c. 
 
 I. P. CHRISTIANCY. 
 
 No. 205. 
 Mr. Ghristiancy to Mr. Uvarts. 
 
 No. 75.] Legation of the United States, 
 
 Lima, Peru, November 3, 1879. (Received November 25.) 
 Sir : Referring to my dispatch No. 70, I have the honor to give you 
 the following additional facts which have since taken place, showing 
 the progress of the war: 
 
284 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Within a day or two after the above dispatch we began to receive 
 intelligence, by way of the British line of mail steamers from Valpa- 
 raiso, that preparations upon a large scale were going on for the em- 
 barkation of a strong force, and soon the conviction seemed to take 
 possession of the public mind, in which the government seemed to con- 
 cur, that the large land force was being embarked for an attack in the 
 neighborhood of Lima. This conviction grew stronger, day by day, 
 until yesterday, though for myself I did not credit it, because I did not 
 think it the best course for the interest of Chili ; for though she might 
 possibly land forces enough near here to take Lima, and even to 
 capture Callao from the land side, she could not hope permanently 
 to hold these places, nor to conquer Peru ; and in the mean time the 
 forces of Peru and Bolivia, now in the south, would have an easy task 
 to retake Antofagasta and all the Bolivian and Peruvian territory 
 now held by the Chilians, and for which, on account of its wealth, they 
 commenced the war. I had, therefore, concluded it was more probable 
 the Chilians would seek to retain this territory, and as the allies — Pe- 
 ruvians and Bolivians — had their forces scattered for more than 100 
 miles north and south in this territory, that they might land at some 
 point near the center of this 100 miles and strike first against one-half 
 of the allied forces, crush it, and then turn upon the other half and 
 crush that. This seemed to me probable. But the government here 
 was so impressed with the idea that an attack in the neighborhood of 
 Lima was intended that they put forth every effort, and even issued a 
 decree for the enrollment of all Peruvians between the ages of 18 and 
 70, and in effect proclaimed martial law in Lima and Callao, and, in 
 consequence of the terror of this invasion, the whole ministry (with the 
 exception of La Colevrez, minister of war and marine) was completely 
 changed twice within three days. But about 3 o'clock p. m. yester- 
 day came a telegram from General Prado, at Arica, that sixteen vessels 
 were in front of Pisagua (about 35 miles north of Iquique) attempting 
 to land troops ; that fighting had been going on for five hours, and 
 they had not yet succeeded. At about 5 p. m. he telegraphed that the 
 enemy had taken Pisagua, and that General Buendid (the Peruvian 
 general) had retreated upon San Bernardo (a fortified place on the road 
 to Iquique). That the enemy seemed to have divided their forces, and 
 were landing, or attempting to land, a force at Chucumata (about 1.3 
 miles south of Iquique). Thus stands the news up to this hour, Novem- 
 ber 3, at 9 p. m. 
 
 To estimate probabilities, I will say that Iquique is only fortified on 
 the water-front, and may be easily taken from the land side, if an enemy 
 succeeds in reaching that side ; that the main body of the allied forces 
 are at Arica and Tacna, there being but 5,000 or 6,000 in Iquique, and 
 a small force of the allies thence south to Quillagua. It is easy, there- 
 fore, to see that if the Chilians can march rapidly upon Iquique with 
 a sufficient force they may take it before material aid can be received 
 from the north or the south to molest them. 
 
 Such at least would be the case if the country were an open one. 
 But as the deserts and mountains do not admit of the rapid movements 
 practicable in an open country, it is impossible for one not intimately 
 acquainted with the locality to form a fair judgment of the probable 
 result. 
 
 I leave this letter unfinished to record any further news which may 
 be received prior to the 6th, when the northern mail steamer leaves, 
 only remarking here that it is evident, from the tone of the Chilian 
 press, that the Chilian Government still hope that the Bolivians will 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 285 
 
 abandon Peru, and unite with Chili in siezing from Peru the province 
 of Tarapaca (rich in nitrates), to be given to Bolivia in exchange for 
 the Bolivian territory seized by Chili, notwithstanding Peru was 
 drawn into this war in compliance with her treaty with Bolivia to pro- 
 tect the latter in her boundaries. That there is a party in Bolivia who 
 favor such a course I have no doubt ; but that President Daza and his 
 government do so I do not believe. But no reasoning which could be 
 sound as to civilized countries generally, can be a safe guide to a cor- 
 rect conclusion, when Bolivia is one of the factors of the problem. 
 
 One thing which I have all along thought probable, I still think 
 likely to take place, the blockade of Callao, which the Chilians have 
 navy enough to accomplish without interfering with the land opera- 
 tions in the south. 
 
 November 5 — 6 p. m. — Nothing further has been heard from the 
 south. 
 
 With the highest esteem, I am, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 206. 
 
 Mr. Christiancy to Mr. JEvarts. 
 
 No. 80.] Legation of the United States, 
 
 Lima, Peru, November 11, 1879. (Eeceived December 8.) 
 Sir : I have the honor to inclose to you the translation of an execu- 
 tive decree of thePeruvianGovernmentof the 8th of this month (founded 
 upon a law of the 1st instant), prohibiting commerce with Chili, &c, 
 and to say that as it has occurred to me that the second article of the 
 decree may seriously conflict with the eighteenth article of our treaty 
 with Peru (proclaimed July 27, 1874), to say nothing of last clause of 
 article 5 of the same treaty, and being informed that the British min- 
 ister also insists upon the provisions of our treaty alluded to, under the 
 clause of the British treaty, called " the most favored nation clause," 
 and that France, though h'er treaty with Peru is claimed by the latter 
 government to have expired by its own limitation, intends to claim the 
 benefit of our treaty under the " most favored nation clause." 1 this 
 day called upon the minister of foreign affairs of Peru, in an informal, 
 confidential, and friendly manner, and suggested to him the conflicts 
 which I thought might arise between the eighteenth article of our treaty 
 and the second article of this decree, as to the rights of American ves- 
 sels to enter Peruvian ports, though they might have come from or 
 touched at Chilian ports, saying at the same time that, for the present, 
 and before any actual conflict had arisen, I did not propose to enter a 
 formal protest, but that if a case should actually arise in which, for in- 
 stance, an American vessel should be prohibited entrance into a Peru- 
 vian port, for the cause mentioned in the second article of the decree, 
 and complaint should be made to me by such vessel or her officers, I 
 should feel it my duty to enter an earnest and formal protest against 
 such violation of the treaty. I did not assume to define the various 
 points of conflict which might arise, nor by putting the case of an Ameri- 
 can vessel coming from a Chilian port did I mean to limit the cases of 
 conflict to that, nor did the minister understand me as thus limiting 
 the cases ; on the contrary my conversation also intimated generally 
 that conflicts might arise in reference to the right of bringing in Ameri- 
 
286 AFFAIRS IN. CHILI, PERU, AND BOLIVIA. 
 
 can vessels, goods, or property, the products of Chili, taken in connec- 
 tion with the clause providing that free ships shall make free goods ; 
 but upon those latter points I intimated no opinion of my own, only 
 saying that I hoped the government would carefully consider the ques- 
 tions of conflict which might arise between the treaty and the decree. 
 The minister, so far as I could judge from his conversation, did not ap- 
 pear to have examined the treaty at all, nor to have formed any defi- 
 nite notion of its meaning or object; but, with an evidently strong de- 
 sire not to give just cause for offense to the United States in this re- 
 spect, said that a meeting of the cabinet would be held this evening, and 
 the whole subject laid before it. 
 
 There is but comparatively a small amount of our shipping on this 
 coast at present, while England has a large amount, and France has 
 more than we. There is also a British line of steamers (the Pacific 
 Steam Navigation Company) running along the coast of all the bellig- 
 erents, and thence to Panama. 
 
 A very large portion of the sailors and employes on these steamers 
 were Chilians, while very few (and so far as I can learn, no case) of 
 this kind exist as to the vessels of the United States. This being a case, 
 therefore, in which England was almost exclusively interested, and if 
 the eighteenth article of our treaty would permit these Chilians to come 
 into all Peruvian ports, while Chili has the complete command of the 
 sea, the enforcement of such a stipulation would be directly aiding one 
 of the belligerents against the other, by enabling Chili to keep up a most 
 effectual espionage against Peru in Peruvian ports. I therefore con- 
 cluded not to urge this provision at present, and, unless so instructed 
 by the Department, to await the development of events until a case 
 should arise in which American interests should be involved. 
 
 But this morning, November 12, I called upon the British minister 
 to learn what view he took of our treaty in this respect, and what 
 course he had determined to take in reference to this point. He had 
 seen and felt the injustice of enforcing the right to have these Chilians 
 upon English vessels enter the ports of Peru, and frankly stated that 
 he had waived all claims of the kind, and informed the British steamers 
 that they must be discharged from such vessels. 
 
 This difficulty, therefore, is practically at an end. 
 
 But questions may still arise, under the eighteenth article of our 
 treaty, whether American vessels would have the right to introduce 
 Chilian goods or products, and trade in them in Peruvian ports. At 
 present I am inclined to the opinion that the treaty secures no such 
 right when Peru has declared non-intercourse with Chili and excluded 
 the importation of all such Chilian goods and property. 
 
 It is clear, I think, that it was entirely competent for Peru to impose 
 such a high rate of duties upon such goods and property as to effect- 
 ually exclude them; and the right thus indirectly to exclude rests, as 
 it seems to me, upon the right of direct and absolute exclusion. 
 
 The fifth article of the treaty seems to me to support this view. 
 Upon this point I await your instructions. I think no case raising this 
 as a practical question is likely to arise in the mean time. 
 
 In fact, all the questions arising under the decree mentioned have 
 become of less importance, as an order appears in the papers this 
 morning, which, with its translation, I inclose, which will put off the 
 execution of the order for some time, to give fair notice to neutrals. 
 I have, &c, 
 
 I. P. CHEISTIANCT. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 287 
 
 [Inclosure 1 in No. 80.— From the South Paoiflo Times, Tuesday, November 11, 1879.] 
 Important decree. 
 
 COMMERCIAL INTERDICT WITH CHILI. 
 
 Luis La Puerta, first vice-president of the republic enoharged with the executive 
 
 power. 
 
 In use of the authorization granted by the law of the 1st instant— 
 
 I decree : 
 
 Article 1. All commerce between the republics of Peru and Chili is hereby strictly 
 interdicted as long as the present war lasts. 
 
 Art. 2. All steamers or sailing vessels coming from any Chilian port, or which have 
 touched in any Chilian port, are prohibited from entering any port in Peru. 
 
 Art. 3. Steamers and ships of any kind trading on the Peruvian coast are forbidden 
 to have any Chilian on board. Any vessel on board of which a Chilian is found will 
 not be allowed to enter in future any Peruvian port. 
 
 Art. 4. The foregoing rules apply to vessels coming from Bolivian or Peruvian ports 
 occupied by the enemy. 
 
 The minister of finance and commerce will provide for the due fulfillment of this 
 decree. 
 
 Given in the government house in Lima, this eighth day of the month of November, 
 eighteen hundred and seventy-nine. 
 
 LUIS LA PUERTA. 
 
 J. M. QULMPER. 
 
 [Inclosure 2 in No. 80.— Translation from El Comeroio.Lima, November 11, 1879.] 
 COMMERCIAL INTERDICTION. 
 
 The director of administration has issued the following circular to the custom-houses 
 of the republic : 
 
 Sir : The law of the 1st instant is being put in force by the supreme decree of the 
 8th, in relation to the commercial interdiction with the Republic of Chili. The gov- 
 ernment believed it unnecessary to indicate that for the fulfillment of the law and of 
 the decree, the necessary time, in consideration of distances, would be accorded, since, 
 from the principal of universal legislation, to give the aforesaid time is obligatory. 
 
 For the better comprehension of the aforesaid dispositions, I fulfill the duty in bring- 
 ing to your knowledge that circumstance, by order of the minister of that branch, in 
 order that you may take it in consideration when you receive in that port the ships or 
 steam vessels or sailing vessels comprised in the said decree. 
 
 God be with you. 
 
 JUAN de D. RIVERO. 
 
 No. 207. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 83.] Legation of the United States, 
 
 Lima, Peru, November 19, 1879. (Beceived December 12.) 
 
 Sir : Since my dispatch No. 75, in reference to the progress of the 
 war, little has taken place of which reliable information can be ob- 
 tained. 
 
 It seems, however, tolerably certain that at the time of the landing 
 of the Chilians at Pisagua, another landing of part of their forces took 
 place at Junin, a few miles south ; that the two bodies formed a junc- 
 tion near Pisagua and moved inland to Agua Santa, having got pos- 
 session of a short railroad from Pisagua to that point, with one or two 
 locomotives ; that on the 11th instant General Daza, with 4,000 of his 
 
288 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Bolivians, moved south to form a junction with such of the allied forces 
 as were scattered along the south of Peru and in the Bolivian territory, 
 especially with the main body of them, under General Buendia at Paz 
 Almonte, back 40 miles from Iquique, and 30 miles south of Agua 
 Santa, and if possible, after said junction, to attack the Chilian army, 
 which, from the best calculations to be made here, must have in its 
 main body from 8,000 to 10,000 men. 
 
 Since the 11th all seems to be uncertain as to the movements of the 
 armies, except that the Chilians had cut the cable between Iquique 
 and Arica ; that on the 15th instant the commander of the Chilian 
 fleet gave notice of the establishment of the blockade of Iquique, which 
 they probably have force enough to render effectual, and that yester- 
 day dispatches were received from Arica that General Daza had re- 
 turned to that point, thus showing that the attempted concentration- 
 was found impracticable ; and, unless with the aid of more allied force 
 at Arica, they shall be strong enough to meet the main Chilian army. 
 Without the aid of Buendia it would seem quite probable that the 
 aUies may be beaten in detail, as intimated in my No. 75. But if all 
 the allied forces can be concentrated, the Chilians may be driven back 
 to their ships, unless in the mean time they receive large re-enforcements. 
 In the mean time the dread of an attack upon Lima keeps a large force 
 of the Peruvian army here. 
 I am, &c, 
 
 I. P. CHEISTIANCY. 
 
 No. 208. 
 -i Mr. Hay to Mr. Christiancy. 
 
 No. 47.] Department of State, 
 
 Washington, November 26, 1879. 
 
 Sik : Your dispatch No. 70, of the 28th ultimo, in which you give the 
 current news and forecasting with respect to the progress and pros- 
 pects of the war, has been read with the usual interest attaching to 
 your dispatches on that subject. 
 
 In view of the actively aggressive operations of the Chilians, as 
 shown in your dispatches and by subsequent telegrams in the public 
 press, it may not be inopportune to notice the concluding part of your 
 dispatch, wherein you observe that should Callao be blockaded and the 
 mail steamers interrupted, you would be cut off from all safe means of 
 communicating with this Department, and would have to act upon 
 your own judgment in the emergencies which might arise. 
 
 While it would be, on every account, desirable to maintain constant 
 communication with you, if possible, in the emergency to which you 
 refer, yet the adoption of any extraordinary and expensive means to 
 accomplish that object, such as the dispatch of a special courier, would 
 not be regarded as necessary unless, indeed, some pressing necessity 
 should arise for the transmission of intelligence urgently affecting the 
 relations of the United States with the parties to the struggle. The 
 adoption of any special means of communication would, of course, be 
 subject to the approval of the Department. 
 I am, &c, 
 
 JOHN HAY, 
 Acting Secretary. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 289 
 
 No. 209. 
 
 Mr. Christiancy .to Mr. Evarts. 
 
 No. 87.] Legation op the United States, 
 
 Lima, Peru, November 26, 1879. (Received December 18.) 
 Sir : I have the honor to inform yon that I have just received a let- 
 ter from our consul at Iquique, dated the 15th inst., informing me that 
 the commander of the Chilian iron-clad, Amivante Cochrane, had just 
 given notice to the consular corps at that post that he had estab- 
 lished the blockade of Iquique " and the adjacent minor ports" (a little 
 uncertain), and that ten days were given to the neutral merchant ves- 
 sels now in port, counting from the 15th, in which to complete their 
 cargoes and leave the bay. This, it must be admitted, is sufficiently 
 liberal, especially as to completing " cargoes." Doubtless you have 
 also been advised by the consul of all this. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 P. S. — I have no doubt that before this reaches you, and probably 
 before now, Iquique is in possession of the Chilian forces, and the 
 blockade in that manner ended; but I have no positive information of 
 the fact. 
 
 I. P. C. 
 
 No. 210. 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 88.] Legation of the United States, 
 
 Lima, Peru, November 26, 1879. (Received December 18l) 
 
 Sir : Referring to my dispatch No. 83 upon the progress of the war, 
 I have to say, in continuation, that important events have since taken 
 place, the details of which it is impossible to ascertain with certainty, 
 but the result of which, it is now evident, has been a crushing defeat 
 of the allied armies, or at least of the Peruvian forces by the Chilians, 
 at San Francisco. 
 
 It seems, or at least this is the information and general belief here, 
 that a part of the Bolivian army refused to march against the Chilians, 
 and that General Daza found himself unable to compel them. But 
 that part of them did march, with a larger force of Peril vians, for Agua 
 Santa ; that they there formed a junction with General Buendia, the 
 Peruvian General at Agua Santa. The Chilians having there, and thence 
 toward San Francisco, only outposts and skirmishers, which, were 
 attacked and driven in back to the main body, strongly intrenched at 
 San Francisco. That the allies (consisting of two or three divisions 
 of Peruvians and one of Bolivians) some time between the 20th and 23d 
 inst. made a combined attack of several hours upon the Chilian army, 
 but were badly defeated, and with heavy loss ; that at last accounts 
 General Buendia, with a part of the army, had retreated to Tara, and 
 General Prado, who is still at Arica, with, as is supposed, some 5,000 
 or 6,000 men, telegraphed on Saturday, the 22d, that he did not know 
 where the rest of the army was. 
 
 This is the substance of all that is reliable; the cable at Mallendo 
 being cut, or the place taken last Saturday, we get no more telegrams. 
 S. Ex. 79 19 
 
290 AFFAIRS IX CHILI, PEKU, AND BOLIVIA. 
 
 But it is reported and generally believed here, that a great, if not the 
 greatest, part of the Bolivian army proved faithless to the Peruvian 
 alliance, and that they 'with General Campero (Bolivian -who has re- 
 turned to La Paz) were about to form an alliance with the Chilians 
 against Peru, and depose Daza ; such is the belief here, and the excite- 
 ment or rather the depression is extreme. 
 
 In confirmation, or perhaps only as a consequence of this belief, the 
 Bolivian minister here, Mr. Flores, it is said, has not been seen since 
 last Friday, the 22d inst., and the excitement is strong against him. 
 
 The consequence of all tbis has been a general conviction that a 
 revolution must take place in the government here, and that Pierola 
 must be put at the head of affairs, and though he probably has more fol- 
 lowing than any man in Peru, and I am inclined to think quite as clea$ 
 a head, and is withal very ambitious, he feels the terrible responsibility 
 of assuming the reins of government just now when everything seems 
 rushing to chaos and ruin. 
 
 A demonstration was got up by the rabble in the streets the night 
 of the 22d inst., and the tocsin sounded throughout the city, supposed 
 to have been instigated by General de la Cotera, minister of war, first, 
 in his own interest in hopes of being made dictator, and second, to get 
 the prestige of Pierola in a new ministry under his control. But Pierola 
 did not take the bait, and the whole thing ended in smoke. Bivt not- 
 withstanding the fearful responsibility, I am inclined to think that he 
 will be compelled very soon, it may be any day, by the strong popular 
 wish, to consent to take the position of dictator. And though I think 
 I understand the principles of our government, in recognizing revolu- 
 tionary governments, I will be glad to receive any instructions you may 
 see fit to give. But do not make the element of probable permanency 
 (of such government) too prominent as, in that event, there would be 
 few Spanish-American governments recognized generally. 
 
 I hear i,t rumored in various quarters, and think there may be some 
 ground for the rumor, that a kind of moral pressure is at present being 
 brought to bear upon the Peruvian Government by the representatives 
 of England, France, and perhaps Germany, to induce Peru to offer terms 
 of peace at once ; but I have purposely kept aloof from any effort of this 
 kind, because I think I see clearly enough .that in the present extreme 
 depression and discouragement of the Peruvian mind, and the equally 
 extravagant elation of the popular mind of Chili, that Peru might be 
 led or driven to offer or to accept terms of peace, which a sound and 
 cool judgment of the present or the more matured judgment of the future 
 might condemn as extravagant and unreasonable. And in such an 
 event, the nation whose representative had, by his action, contributed 
 to drive this government hastily into such terms would be sure to in- 
 cur the hatred of Peru and of Peruvians for a long time to come. 
 
 I shall not therefore volunteer or officiously offer advice to this gov- 
 ernment unasked. It will be time enough to give advice when it is 
 asked; and should it be asked, I shall only say, " Certainly I advise 
 peace, if you can procure it upon what you deem reasonable terms, but 
 you must yourselves be the judges of what terms are reasonable, unless 
 all the belligerents agree to refer it to some power, or to the representa- 
 tives of some power or powers, to determine what is reasonable." 
 
 In such an event, should it be referred to me in whole or part, I 
 should, with the consent of my government, seek to determine the 
 question in view of all the circumstances, undisturbed by the excite- 
 ment of the popular mind here or elsewhere. 
 
 I have, &c, . I. P. CHEISTIANCY. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 291 
 
 No. 211. 
 
 Mr. Christiancy to Mr. Uvarts. 
 
 No. 90.] Legation op the United States, 
 
 Lima, Peru, December 3, 1879. (Received December 26.) 
 , Sir : Referring to my dispatch No. 88, I will say, in continuation, 
 that the Chilians had, at the date of that dispatch (as we have since 
 learned), taken possession of Iquique ; and that about the 28th or 29th 
 ultimo (the exact day I cannot yet ascertain) they placed two wooden 
 naval vessels (corvettes) in front of Arica, and sent on shore and to the 
 neutral vessels in port notice of the blockade of that port. It is said 
 ,that, as in the case of Iquique, they have given 10 days' notice for ves- 
 sels to leave, but I have not been able to find any reliable evidence of 
 the latter fact. Whether the two Chilian ships are sufficient to make 
 the blockade effectual remains to be tested. 
 
 As to the operations upon land since my No. 88, the information is not 
 wholly reliable as to details, but the reports through Peruvian channels 
 are that, since the defeat at San Francisco, General Buendia has suc- 
 ceeded in collecting about 5,000 men at Ta'rapaca, besides the cavalry, 
 which had suffered very little, and which, at the last intelligence, had 
 made its way to Arica ; that there were before their arrival from 5,000 
 to 7,000 Peruvian soldiers at Arica in good condition and well supplied, 
 and that General Daza is, at the last intelligence, at Tacna, with some 
 2,800 to 3,000 Bolivians. On the 18th of November the Chilian iron- 
 clad Blanco Bncalada captured the small Peruvian gunboat Pilcomayo. 
 
 On the morning of the 9th ultimo General Prado (who was supreme 
 director of the war in the south) arrived here by one of the English 
 mail steamers. He was well received, but without much public demon- 
 stration. Pierola, his great rival, however, met him at the depot in 
 Lima in the most friendly manner. General Prado has resumed the 
 presidency here, leaving General Montero at Arica, in chief command 
 of the forces in the south. 
 
 In attempting to form a new ministry General Prado, as stated by 
 the press, tendered to Pierola the place of minister of finance and presi- 
 dent of the council, with the right to select all the other ministers. 
 
 But it is said by some well-informed persons that General Prado re- 
 served the right of selecting one or two of them, and by others equally 
 well informed that the offer to Pierola was as first stated, and that he 
 offered to accept on the condition that General Prado should declare 
 himself dictator, ignoring the constitution entirely as to the means to 
 be taken for the public defense. But whichever version may be true, 
 Pierola declined to go into the cabinet ; and this morning the formation 
 of a ministry is announced. 
 
 Don Manuel Irigoyen, minister of foreign relations and president of 
 the council. 
 
 Ramon Ribeyro, minister of justice. 
 
 Mariano Alvarez, minister of government. 
 
 Aurelio Dinegro, minister of finance, and 
 
 Colonel Eavieguo Sava, minister of war and marine. 
 
 Mr. Enriqne Irigoyen is the same who has held the same office for a 
 long time, under all changes of the cabinets, until De la Lotera became 
 president of the council. He is a man of clear head and souud judgment, 
 with a more intimate knowledge of foreign affairs than any man in Peru — 
 par negotiis on all occasions — and I think an honest and patriotic man, 
 which last qualifications, according to the general popular belief here, 
 
292 AFFAIRS IN CHILI, PERU, A>~D BOLIVIA. 
 
 make him a u rara avis" in terra Peruano. In that he commands the 
 respect and esteem of all parties. 
 
 The other members of the new cabinet are not men of distinguished 
 prominence (except perhaps, Sava, who is said to be a man of great 
 "vigor and decision.) 
 
 I think this cabinet likely to have some permanency, unless unforeseen 
 calamities should impel the populace to drive Pi^rola into the assump- , 
 tion of the dictatorship, which I do not think he desires at present. 
 I am, &c. 
 
 I. P. CHRISTIANCY. 
 
 P. S. — 6 p. m. — The evening papers just out have the following tele- 
 grams from Arica. 
 
 Montero to the President: 
 
 Arica, 3 10.45 a. in. 
 
 Battle at Tarapaca; our army victorious; 2,500 Chilians, 1-000 killed and wounded- 
 They were completely routed. * We took 7 Krupp " caiiones," 3 Gatlings, and 60 priu- 
 Ours 600 killed and wounded. 11 pieces of artillery taken ; 4 Gattling. The Samar 
 has disembarked our wounded here. 
 
 Frefect of Ariguipa to the President. 
 
 Mollendo 3, 1.28 p. in. 
 Twenty-five hundred Chilians attacked our army on the 27th ultimo, in Tarapaca. 
 oners, 1,000 Chilians killed and wounded. 
 Our victory was obtained in the night. 
 
 How reliable this may be, I do not vet know, but I give it as it comes. 
 
 I. P. C. 
 
 No. 212. 
 Mr, Christiancy to Mr. Hearts. 
 
 No. 91.] Legation of the United States, 
 
 Lima, Peru, December 7, 1879. (Received January 7, 18S0.) 
 
 Sir : Eeferring to my despatches Nos. 88 and 90, 1 will say, in con- 
 tinuation (none at least made public) to change the effect of the tele- 
 grams given in my No. 90, as to the operations of the armies on 
 land — except that the victory at Tarapaca — seems to have been of less 
 dimensions than their report, and the allied forces are retreating upon 
 Arica, nor has any naval operation taken place of which reliable news 
 has been received here. But the new ministry mentioned in my No. 90 
 as just appointed all declined to accept, and the former ministry, un- 
 der General De la Cotera, as president of the council, remains in office, 
 not, as 1 am inclined to think, because President Prado prefers them, 
 but because he has been unable to induce others to accept. 
 
 But the true reason why Pierola did not accept the offer of Presi- 
 dent Prado to form and to preside over a new ministry is no longer a 
 secret. I inclose you his own declaration or pronunciamento over his 
 own hand inserted in his paper, La Patra, three days since, together 
 with a translation, which, whatever else may be said of it, must be ad- 
 mitted to be a bold, frank, and candid statement of his position and 
 that of the party'he represents. I must ask you to judge of it, not 
 
AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 293 
 
 from our North American standpoint, but from that of Peru ; because, 
 judged by our North American standard, it might be thought to be an 
 evidence of the personal vanity, egotism, and selfish ambition of the 
 writer ; whereas we have the highest possible direct evidence — the 
 declaration of the writer himself — that it is nothing of the kind, and 
 that there is nothing in it to authorize such an opinion ; and the latter 
 is probably the view of the majority of his political followers, though, 
 if I am to judge from the Peruvian press, I should be compelled to ad- 
 mit that, ostensibly at least, his followers are not as numerous nor as 
 cordial since as before the publication of this manifesto. 
 
 The people see that the constitution, which he thinks the source of 
 all the calamities of Peru, and which he says he has labored for years, 
 inside and outside of Peru, to get rid of, biit which President Prado 
 has the folly still to cling to, is not, after all, so great an obstacle as 
 he seems to suppose; since, whenever a provision of the constitution 
 happens to be thought embarrassing, an executive decree, or that of a 
 single minister, isissued enacting the very thing which the constitution 
 seems to prohibit, and if this is subsequently approved by Congress, it 
 becomes at once constitutional, because the constitution itself (Art. 59, 
 sub. 1) provides that Congress shall have power to make laws, to in- 
 terpret, modify, and repeal existing laws ("Dar loyes, interpretar 
 ruodificar y derogar las existentes"); and the constitution is a law to 
 be construed, as well as a statute or resolution of Congress. 
 
 True, perhaps, President Prado has seemed to be reluctant to go much 
 in advance of the approval of Congress in such cases, but this is by 
 many thought to make the constitution unnecessarily embarrassing. 
 It is true, however, that during President Prado's absence in the field, 
 the Vice-President (La Puerta) and his various cabinets were very 
 prolific in decrees, which, to us, would seem to be clearly in violation 
 of their constitution. And the last cabinet (continued by President 
 Prado) has issued decrees upon the tariff,the exports, and imports, the 
 duties, and how payable, and levying taxes of various kinds, and upon 
 various other subjects without the warrant of any act of Congress, 
 and these are still continued, though I suppose they would be repealed 
 on the reaccession of President Prado. I inclose two of them not here- 
 tofore sent you, and which might furnish some valuable hints to our 
 Secretary of the Treasury. 
 
 From the above considerations it is easily seen that an inflexible 
 constitution, like ours, would be wholly unsuited to the habits of soci- 
 ety, as at present constitued here ; and like all the other Latin races, 
 they require a constitution that will bend without breaking, or at all 
 events bend. 
 
 T am, &c, 
 
 I. P. CHEISTIAXCY. 
 
 flnclosure in No. 91. — Translation.] 
 
 To the Editor of La Patrice : 
 
 Esteemed Sir and Friend : General Prado having returned to Lima, after a new, 
 udj notifiable, and inexplicable disaster, my refusal to organize a cabinet under the 
 Presidency of that gentleman has aroused the malevolence of a few and the thought- 
 lessness of many to make the most erroneous and capricious comments. 
 
 I would overlook them in silence, as I have done until now, if they were injurious 
 to myself alone, since I believe I have shown that I do not know how to remember self 
 when the country is in question ; but as all these commentaries unite in the affirmation 
 that, in my opinion, the situation is desperate, and that this is the cause of my refusal 
 
294 AFFAIES IX CHILI, PERU, AND BOLIVIA. 
 
 to face it, which would undoubtedly iDjnre Peru immensely at home and abroad, I owe 
 to the country a distinct declaration, and/ I am about to make it, cost what it may, 
 with all the resolute effrontery which the solemnity of the crisis demands of me. 
 
 If suppression of the truth is ever justifiable, there are times in which the whole 
 truth should be uttered, and when silence is a crime. 
 
 I was called upon by General Prado to organize, with fall liberty, a cabinet. I re- 
 fused at once and distinctly, but founding my explanation upon an exposition as frank 
 as it was possible to make it, in which nothing was reserved, and accompanied by 
 what, in my opinion, should be the course for him to pursue. I proceed to condense, 
 in a few points, my mode of reviewing the situation : 
 
 1st. The disasters suffered are the necessary result, not only of the men who are at 
 the head of affairs, but of the system under which we live, and against which I have 
 struggled for ten years, using every means as well within the government as outside 
 of it. 
 
 2d. If this system be maintained, it is impossible now to save the situation ; and 
 consequently to aid in sustaining it, far from laboring for Peru, would be to contrib- 
 ute to the consummation of her ruin. 
 
 3d. As to the persons who represent this system, both General Prado and General 
 La Puerta have become impossible as heads of the nation, under present circum- 
 stances ; and as for the second vice-president, it will be sufficient for me to say that 
 his keeping out of the country is clear evidence of sound judgment and patriotism. 
 
 4th. Those who become indignant, and accuse me because I do not consent to be- 
 come chief of a cabinet after the lapse of eight months, during which I have not been 
 deemed nseful for anything — incredible obstacles being presented even to the very ex- 
 ercise of the right of being killed at the head of a regiment of volunteers — are irritated, 
 and denounce me, not because I do not come forward to save the country, but because 
 I do not come forward to save the authority they wield, and which they have not 
 known how to employ for the triumph of Peru. 
 
 5th. Legality does not really exist. It is in fact reduced, not to the upholding of 
 institutions which have been denaturalized, and which are, at this moment incompati- 
 ble with the public weal, bnt to the maintaining of this or that man in office. 
 
 6th. I signified my assent two months ago to preside over a cabinet wherein the le- 
 gal freedom was denied me, which the critical position of affairs now compels to be 
 offered me. I resigned myself to this only because foreseeing the imminence of an 
 invasion, and the proximity of a decisive battle, it was, above all, indispensable to 
 avoid, during such contest, exactly what has occurred without any justifiable cause. 
 To-day no such motive exists ; more, much more is needed, and my proffered accept 
 ance«of that date would now be inexplicable and culpable. 
 
 7th. For a nation which has faith and the determination to save itself, there is never 
 a situation which can be called desperate. I believe our own far from being so ; but 
 were such the case, men of heart only go down fighting. 
 
 Sth. I have not refused, therefore, to serve the country, and to serve it equally in 
 the lowest as in the highest position. I have, yes, I have refused, and do refuse, two 
 things : 1st, to seek that position for myself without being called to it ; 2d, to accept 
 without the means of doing what I believe indispensable for the good of the country. 
 For me there are, at this moment, two things equally absurd, and which fools alone 
 could entertain : 1st, personal ambition ; 2d, that egotism which refrains. 
 
 The situation may be thus summed up : If the country is to be saved, a radical po- 
 litical transformation is inevitable. This will either take place from above down- 
 wards, General Prado taking the initiative of an appeal to the people, the only legal 
 entity which can decide, or that transformation will be made from below upwards, 
 with terrible violence, which patriotism should avoid at all risks. 
 
 In order to avoid this second extreme, I have omitted no effort whatever from the 
 outbreak of the war, even going lately, through motives of pure patriotic duty, so far 
 as to go in person to receive Mr. Prado, hoping, as I still hope, that he will at length 
 do as I have earnestly urged him, which either 1 am much mistaken or he himself 
 recognizes as indispensable and what the salvation of the country demands of him. 
 
 This is the true state of affairs. I put it upon record in this letter without other mo- 
 tive than the salvation of Peru, new and costly as the sacrifice may be which it may 
 impose upon me. 
 
 I would thank you, Mr. Editor, to be pleased to give this a place in the columns of 
 your paper before the closing of the mail for abroad. 
 
 Saluting vou affectionately. 
 
 N. de PIF.ROLA. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 295 
 
 No. 213. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 93.] Legation of the United States, 
 
 Lima, Peru, December 16, 1879. (Received January 7, 1880.) 
 
 Sir : Referring to my dispatch No. 88, in reference to the reported 
 revolution at La Paz, the apprehension here that the revolutionists 
 there were acting in hostility to the Peruvian alliance and in favor of 
 an alliance with Chili, and that the Bolivian minister here had not 
 been seen for some time, I have to say that from the best information 
 (none attainable here), the supposed revolution was a movement in favor 
 of the Peruvian alliance, and a more vigorous prosecution of the war. 
 I inclose an article from the South Pacific Times of this day, which 
 gives the result of the information, so far as the public are informed, 
 up to this date ; and I will say that for the last two weeks or more the 
 Bolivian minister appears in imblic and has consultations at the palace 
 as formerly. 
 
 Absolutely no news have been received from the seat of war since 
 my No. 91, except that the remains of the Peruvian army, which fought 
 at San Francisco, were arriving at Arica and are now, probably, safe at 
 that place with the main body who had not left that place. 
 
 Great activity has been shown in raising men in this central portion 
 of Peru, and there are supposed to be now in the vicinity of Lima and 
 Callao near 15,000 men, a large part of whom, however, are raw recruits. 
 
 Whether any of them are intended to be sent south is doubtful, but 
 there are at present indications of an intention to send off, to-night or 
 to-morrow, one transport, if not two, to the south with ammunitions 
 and supplies for the army at Arica. Those will run great hazard of 
 being taken, and probably will not think it safe to go further than 
 Mollendo. 
 
 The government show no indications of asking for peace on any 
 terms that Chili would be likely at present to grant. 
 
 In the mean time all business is nearly at a stand still. The credit 
 of the paper currency is rapidly falling. An American double-eagle 
 will purchase to-day from 80 to 84 paper soles. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 P. S. — Dec. 17. The papers this morning contain telegrams show- 
 ing that the port of Ho (or Ylo) is blockaded by three Chilian vessels. 
 
 [Incioeure in No. 93. — From the South Pacific Times, December 16, 1875] 
 THE REPORTED REVOLUTION IN BOLIVIA. 
 
 From official documents now published it would appear that the rumors lately in 
 circulation regarding a revolutionary movement in La Paz, towards the end of last 
 month, were not totally devoid of foundation, hut the affair, however, has not been so 
 serious as was at first supposod. 
 
 When the council of ministers intrusted with the reins of government during the 
 absence of the President, General Daza, at the Reat of war, received tidings of the dis- 
 aster to the allied arms on the 19th ultimo, at San Francisco, afraid of a popular out- 
 break, they withheld the news from the public for some days. In the mean time, the 
 people, alarmed at the prolonged silence on the part of the government, and at the 
 rumors, which did not fail to be spread, of serious reverses sustained by the allies, 
 began to show their discontent, and fears were entertained that unless energetic 
 
296 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 measures were to be adopted by the ministers, an outbreak on the part of the popu- 
 lace would shortly ensue. Selior Nunez del Prado, who is one of the most prominent 
 citizens of La Paz, and is at the head of the municipality of that city, then put him- 
 self into communication with the ministers, and explained to them the position of 
 matters in the city. The president of the council of ministers, Doctor Reyes Ortiz, 
 threupon intrusted Sefior Nunez del Prado with the command of a small body of na- 
 tional guards in the place, in order to insure the peace of the city and put down any 
 disturbance which might arise. That same night Sefior Jofre, the minister of war, 
 left the city, commissioned, according to Doctor Reyes Ortiz's statement, to proceed to 
 Oruro and reorganize the fugitives from the Bolivian army, who would pass through 
 that town. The populace of La Paz, however, looked upon the minister's departure 
 as a flight, and, owing to this circumstance, and the subsequent vacillating conduct 
 of the remaining ministers, affairs began to assume a more serious aspect. At last 
 news, however, thanks to the energetic attitude of Sefior del Prado, who, in accord- 
 ance with the wishes of the ministry, had placed himself at the head of the available 
 troops in the city, matters had taken a more favorable turn, and all danger of a dis- 
 turbance had passed away. Sefior del Prado issued the following proclamation to the 
 people on the 27th : 
 
 Citizen Daniel NoSez del Prado, President of the Municipality: 
 
 Hereby inform the people that after taking command of the public force yesterday, 
 at 7 p. m., according to instructions received, with the laudable desire to preserve the 
 peace of the city and maintain order, 1 am happy to be able to state that that object 
 has been attained, thanks to the good sense and peace-loving disposition of the inhab- 
 itants of this town, who have voluntarily assisted to support the authority of the gov- 
 ernment, at present represented by its ministers intrusted with the executive power. 
 Public order continues to be preserved with the disinterested co-operation of the 
 young men of the city, who have uow taken arms and been organized into a body 
 which will aid to insure the success of the sacred war the republic is engaged in. 
 
 There has happily been no symptoms of disorder ; the citizens continue their peace- 
 ful labors guaranteed by the constitution, with only one thought common to all — to 
 save the dignity and nationality of the republic. 
 
 Every citizen is consequently called upon to contribute towards the great work of 
 the countrv's defense. 
 
 La Paz, November 28, 137t». 
 
 DANIEL N. del PRADO. 
 
 Xo. 214. 
 
 Mr. Christiancy to Mr. Everts. 
 
 Xo. 94.] Legation of the United States, 
 
 Lima, Peru, December 23, 1879. (Received January 22, 1880.) 
 
 Sir : Siiice my dispatch Xo. 93, of last week, several important facts 
 have occurred with reference to the Peruvian Government. 
 
 On the afternoon of the 18th instant President Prado, without any 
 previous notice or suspicion, but with the full knowledge of the minister 
 of war and the minister of foreign affairs, and probably of the whole 
 cabinet, left Lima; went to Callao, and about 1 p. m. embarked on the 
 English mail steamer Payta for Panama, as it was given out by his 
 friends, with the intention of visiting the United States, and perhaps 
 Europe, in the interest of Peru. But the general belief here among all 
 classes seems to be that it was a desertion, a flight from the govern- 
 ment, which, under an accumulation of calamities, he felt he could no 
 longer hold with advantage to himself or to the country. I have no 
 decided opinion as to which is the true version of the affair. I am in- 
 clined to judge him leniently, because he has been more favorable to 
 constitutional government than most Peruvian politicians, and yet the 
 difficulties of his position were so overwhelming that it is possible the 
 most unfavorable explanation of the cause of his leaving may be the true 
 one. 
 
AFFAIES IN CHILI, PERU, AND BOLIVIA. 297 
 
 I inclose herewith a correct translation of his decree on leaving, taken 
 from the South Pacific Times, merely remarking here that the resolution 
 of congress of the 2d May, to which he alludes, was that which was in- 
 tended to authorize him to command the armies of the republic in the 
 south. 
 
 I inclose also a translation from the same paper of his address to the 
 nation and the army on leaving. 
 
 General La Puerta, the first vice-president, was thus left as President, 
 and though all the old ministry tendered their resignations, he refused 
 to accept them, and they all continued in office; General de La Cotera, 
 minister of war and marine, continuing as president of the council, and 
 virtually the head of the government, and though for years known to be 
 a Pi6rolist, yet, like a true and gallant man, as he seems to have been, 
 he felt bound to sustain the constitutional government. But immedi- 
 ately upon the departure of Prado a spirit of inquietude and want of 
 confidence in the government seemed to pervade the public mind, and 
 it was not difficult to discover that there was a general wish that Pie'rola 
 should assume the dictatorship, all seeming to have more confidence in 
 his intelligence and capacity than in any other man, and I must also say 
 that the large majority of American citizens here (of whom there are 
 perhaps one hundred in Lima, most of whom were connected with Henry 
 Meiggs in his railroad projects), seemed to sympathize with this Pie>ola 
 movement, though, like true Americans, they carefully abstained from 
 taking any active steps in that direction. 
 
 Martial law having been already declared in Lima and Callao, on the 
 19th appeared a decree prohibiting the assembliugin the streets of more 
 than four men at any one place. But the inquietude still continued to 
 increase. I could not avoid feeling the effects of a terrible ground swell 
 about to sweep over the land like an earthquake wave. 
 
 Yesterday (Sunday) afternoon, while writing a private letter, about 
 half past 4 p. m., I began to hear the tramp of infantry, and soon after 
 of cavalry, in front of the legation. I supposed it to be a review, and 
 kept on writing. But the tumult increased. I went to the balcony 
 (which no one can understand who has not been in a Spanish town, and 
 which is a projection in the second story over the street, some five feet 
 wide, with sash and glass front and ends, from which you can see all 
 along the street), and then I saw about one thousand infantry forming 
 in line and some cavalry at each flank. The number was soon increased 
 to about two thousand, and presently I saw mules and donkeys hurry- 
 ing up with ammunition, and I began to be interested. I soon learned 
 that two battalions of infantry, who had refused to obey the orders of 
 the minister of war and whose colonels the government had attempted 
 to remove, had mutinied and declared for Pierola, and their quarters 
 were in the palace of the inquisition, on the opposite side of the Plaza 
 de Bolivar (or Plaza de la Inquisition), and adjoining buildings exactly 
 the opposite side of the same block on which the legation is situated. 
 
 In a few minutes after I had noticed this position of forces, and 
 learned the object of La Cotera, to reduce the mutineers, the battle 
 opened, at first only with small-arms — a constant roar and sheets of 
 flame. General La Cotera (at the southwest corner of the plaza), fully 
 exposed to the fire, on horseback, giving his orders with as much cool- 
 ness as upon a dress parade. Soon there arrived upon the ground two 
 mountain howitzers (they had no heavy artillery) and a Gatling gun, 
 which kept up a constant roar. The mutineers being on the house- 
 tops, all of which have flat roofs, and many of them a kind of parapet 
 near the eaves, rising from 2 to 4 feet, were effectually protected from 
 
298 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 the shots of the assailants, while the government troops, in the open 
 streets, were fully exposed to their shots. The mutineers were but 
 about 600, who had declared for Pie"rola, but the advantage of their 
 position made them more than equal to the (about) 2,000 government 
 troops. The soldiers fought well on both sides, except that some of the 
 government troops, in the midst of the action, went over to the muti- 
 neers (as I learned afterwards ; but it was around the corner and out of 
 my view), and some of them whose officers were Pi£rolists disbanded 
 and dispersed. But I saw not the slightest evidence of cowardice. The 
 private soldiers on both sides are substantially all Cholos Indians, and 
 a few negroes and mixed bloods. These Indians are a mild, gentle, ami- 
 able, and very industrious people, who do about all the labor that is 
 done in Peru except by Chinese and negroes ; and, though kept in slav- 
 ery for more than three hundred years (and many still living who have 
 been slaves), they are as good material for the rank and file of an army 
 as can, I think, be found anywhere. They are small, wiry men, capable 
 of much greater endurance than any white race I have ever seen, and 
 only need to be well commanded to make most formidable armies. 
 There was no shrinking as they fought in the streets exposed to the ter- 
 rible fire from their almost invisible foes. I saw many wounded and 
 carried away ; saw several fall and one man killed instantly about five 
 rods from my balcony on the street of Abancay, along which the main 
 force of the government troops were placed — the lower or north end of 
 the Plaza de Bolivar, where the hottest of the fight was, being in full 
 view and about twenty rods from my balcony. 
 
 But these details are of no interest to you. I will only further re- 
 mark that the battle continued from about twenty minutes before five 
 until dusk. The mutineers were not dislodged. Continual defections 
 had been going on among the various other regiments of the govern- 
 ment troops elsewhere in the city, one after another going over to Pi£- 
 rola, and by the time that La Cotera returned to the Grand Plaza (on 
 the north side of which the government palace is situated) he found 
 Pierola in full possession of two sides — the east and south. He ordered 
 his cavalry to charge, which they did, but they melted away before the 
 terrible Bemingtons of Pierola's infantry. But the government troops 
 kept the north side plaza and the palace. This was early in the even- 
 ing. The government forces seemed everywhere to be rapidly going 
 over to Pierola, and about this time he received information that the 
 city of Callao had declared for him, as well as the officers of the princi- 
 pal forts and batteries; and though he might, in a very short time, have 
 triumphed in Lima and taken the palace by continuing the fight, he 
 wisely determined (and I hope and bebeve from motives of humanity) to 
 march with his forces for Callao, which he did, where he was hailed as 
 a deliverer, all the forces, forts, and batteries declaring for him. He 
 took possession of both railroads to Lima, ^o trains were run during 
 the day. He was simply waiting for the remaining government forces 
 at Lima to disintegrate or to declare for him; and lie judged rightly, 
 knowing the powerful influences at work. 
 
 The Catholic bishops, with whom Pierola has always been a favorite, 
 went yesterday afternoon to the acting president, La Puerta, and satis- 
 fied him that, as the great mass of the people as well as the army were 
 in favor of Pierola, to continue the contest longer would be a wanton 
 waste of life. But La Cotera was the last to yield, and he was only made 
 to yield by the officers of the regiments in the palace itself going to him 
 late yesterday afternoon and assuring him that they could no longer be 
 accountable for the fidelity of their men, and had themselves determined 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 299 
 
 to yield to Pi6rola ; -when, mounting his horse in the patio of the palace, 
 with a few faithful friends as a guard, he rode out of the palace hissed 
 and jeered by the rabble, butundismayed, and, with therigid features of a 
 bronze statue, scorning the servility of the crowd, rode off to his own house 
 in Lima, preserving his honor and fidelity to thelast, and commanding the 
 respect of the thinking class, even of his enemies, who could not fail to 
 see in him one of the last survivors of the proud and chivalric hidalgos 
 of the Spanish race in its better, or, at least, its more heroic age. And 
 yet, among the more intelligent men of all classes, the general verdict 
 is that he was a man of more courage and chivalry than mental capacity. 
 
 But, however this may be, there is no avoiding the conviction that all 
 hopes of constitutional government in Peru, for some time to come, went 
 down with him. 
 
 Pi^rola, as is now supposed, will proclaim himself dictator. He is 
 admitted on all hands to be a man of great mental capacity, of boldness, 
 and decision, and it is generally believed that his inclinations are kind 
 and humane. But he most thoroughly believes that in time of war, or 
 any great national crisis, the law of self-preservation is superior to any 
 written constitution. He is now to be tested, and so much is expected 
 of him that it will be hard to meet all those expectations ; and. it is 
 quite possible he may fail, and, in the course of a year, become as un- 
 popular as Prado is to-day. In the mean time, however, since he has 
 found that the whole responsibility rests upon him, he grows circumspect. 
 He might have come in here last evening (Monday), and taken quiet 
 possession of the palace and the government, and there was none to oppose 
 him. But he waited, was expected to-day, and his friends telegraphed him 
 to come, to which he replied, just beforenoon, in substance (I saw the dis- 
 patch in the telegraph office when it came) : "Let all the military officers 
 sign a document stating to whom they acknowledge obedience, so that 
 I may know what orders to issue"; and up to this time, 6.30 p. m., he 
 has not yet arrived in Lima. No one, however, seems to doubt that he 
 will proclaim himself dictator. 
 
 I inclose you his letter of last evening, published in his paper this 
 morning in Spanish, and if I can get the time before the mail will trans- 
 late it. 
 
 December 24 — 11 a. m. 
 
 Pierola at 7 p. m. came up with a large body of officers and took quiet 
 possession of the palace and the government, and to-day for the first 
 time in three days the doors of the various places of business and of 
 the private dwellings are open, the police are again on duty at every 
 street corner, and all seems quiet and peaceful. 
 
 The revolution in this part of Peru is an accomplished fact. 
 
 But, am 1 at once to recognize this revolutionary government or wait 
 for instructions ? I think the latter is my true course for the present, 
 and I shall therefore refrain from presenting the commission of Mr. 
 Griffith, as vice-consul at Callao (received by the last mail in your No. 
 48), for an exequatur. 
 
 You will see by my dispatch No. 88 that I had anticipated the present 
 state of things, and asked instructions, which, for the present, I shall 
 await. 
 
 I have expected to see before this hour some proclamation or pro- 
 nunciamento issued by Pierola showing his general plan of government, 
 but up to this hour, 12 m., none has appeared. 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 
300 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosure 1 in No. 94.— From the South Pacific Times] 
 
 Departure of President Prado. 
 
 His Excellency President Prado came from Lima, accompanied by several of his 
 ministers, by the train which left Desamparados Station at 3.5 p. m. on Thursday last. 
 Arriving at Callao, he at once proceeded on board the Pacific Steam Navigation Com- 
 pany's steamer Payta, which left that afternoon on her regular itinerary for Panama. 
 The following morning two documents, of which the following are translations, were 
 published : 
 
 Mariano Ignacio Prado, Constitutional President of the Republic. 
 
 Inasmuch as I am authorized to leave the country by a legislative resolution of May 
 2, 1879, and very urgent and important matters demanding my presence abroad, and it 
 being my duty and desire to do all I can in favor of the country, 
 
 I decree : 
 
 Solely. That the first vice-president take charge of the presidency of the republic in 
 
 conformity with articles 90 and 93 of the constitution. 
 
 # * # * * ~ * 
 
 Given in the government house in Lima on the 18th day of December, 1879. 
 
 MARIANO I. PRADO. 
 
 Manuel G. de La Cotera. 
 B. Elguera. 
 Adolfo Quiroga. 
 J. M. Quimper. 
 
 [loclosure 2 in No. 94.] 
 PROCLAMATION OP PRESIDENT PRADO. 
 
 The Constitutional President of the Republic to the Nation and to the Army : 
 
 Fellow Citizens : The great interests of the country demand that I shall leave 
 to-day for abroad, separating myself for a short time from you, at a time when consid- 
 erations of a different order counsel my remaining among you. The motives which 
 induce me to adopt this resolution are in reality very great and very powerful. Re- 
 spect it, for a man who like mysblf serves his country with good will and complete 
 self denial has a right to exact it. 
 
 Soldiers, if your arms suffered partial disaster in the first days of November, on the 
 27th of the same month they were crowned with glory in the province of Tarapaca. 
 I am sure that under any circumstances you will imitate the example of your comrades 
 in the south. 
 
 Peruvians, his excellency the senior vice-president of the republic remains intrusted 
 with the executive power, in accordance with the law. I recommend him to you to 
 aid him in his acts with your co-operation. 
 
 In taking leave of you, I give you the assurance that I shall in due time be with you 
 again. Have faith in your fellow-citizen and friend, 
 
 MARIANO I. PRADO. 
 
 Lima, December 16, 1679. 
 
 [Tncloanre 3 in No. 94.] 
 PROCLAMATION OF GENERAL PlEROLA. 
 
 To the People and Hie Army : 
 
 Silent and sorrowful before the exigent demands of the people and the army, I 
 resigned myself to circumstances during the days which followed the shameful flight 
 of Prado and the advent of the superannated General La Puerta, hoping that the army 
 would decide at last to overcome the scruples of a misunderstood loyalty which 
 stayed apart of it from acting according to its convictions, which are those of the 
 nation, and desirous of avoiding any collision between brothers and the loss of a part 
 of our forces. 
 
 The headlong and impatient ambition of General La Cotera, after brutally stifling 
 the unanimous voice of the people of Lima and Callao, provoked a conflict yesterday, 
 employing the forces under his command to disarm the patriots of the army whose 
 only aim was the salvation of the country and the defeat of the foreign foe. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 301 
 
 In Lima but a few moments sufficed to show how irresistible was the patriotic de- 
 sire of the people and the army, aud it would have sufficed for me to remain a few 
 hours more in the capital to end all resistance. 
 
 Yielding, nevertheless, to the motives I have already expressed, I preferred to retire 
 to this city, which has received me without any manner of resistance, to the end of 
 making impossible all chance of strife between brethren and of favoring the tranquil 
 adhesion of those remaining in Lima to the political regime proclaimed months ago by 
 the whole nation. 
 
 Thus all conflict is made utterly inexcusable, and throws in its true light the respon- 
 sibility for its evils upon its sole authors. 
 
 That portion of the army still under their orders in Lima, will not, I am confident, 
 permit this responsibility to become a fact, to the immeasurable injury of all. The 
 hour of national reparation has struck. In the series of disasters which have marked 
 the history of our foreign war, Peru has no part. In shaking off, as she now does, the 
 old rule, she raises the most eloquent protests against that deplorable history, and 
 presents herself worthy of her name and her destinies before the other peoples of the 
 earth. 
 
 For us there is, as there can only be, but one aspiration : a swift and full triumph 
 over the foreign enemy. To achieve this work, we are now all brothers, without the 
 memory even of our past divisions, and drawn one to another by the indissoluble tie 
 of love for Peru. 
 
 Whatever may retard for an instant the complete national unity is an act of treason 
 to our country. Unity is the one condition of the power and triumph of Peru. To that 
 end has ever consecrated and now consecrates his most zealous efforts, your fellow 
 citizen and comrade in arms, 
 
 N. de PlEROLA. 
 
 Callao, December 22, 1879. 
 
 No. 215. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 97.] Legation of the United States, 
 
 Lima, Peru, December 24, 1879. (Received January 22, 1880.) 
 Sir : I have the honor to inclose you a copy of my letter of the 19th 
 instant to our consul at Iquique, in reference to his mails and in refer- 
 ence to his consular duties while that place shall remain in fall posses- 
 sion of the Chilian forces. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inclceure in No. 1*7.] 
 Mr. Christiaucy to Mr. Merriman. 
 
 Dear Sir : Your two letters of the 23d ultimo were received some days since, and your 
 
 ?revious letter as to the mails being stopped at Arica. But I waited to answer until 
 could see some way of getting a letter to you. Admiral Rodgers informs me that the 
 English admiral expects to send one of his vessels as far south as Iquique, on Satur- 
 day, the 20th, and that he has politely offered to take any mail for him or me. 
 
 As to the mail having been heretofore stopped at Arica, this seemed unavoidable, as 
 this government, so far as it had the power, had closed the port of Iquique. The 
 minister of foreign affairs informs me that their post-office department will see that 
 all the mail for you from here shall, as far as in their power, be delivered to our consular 
 agent, Mr. Nugent, at Arica, to be forwarded by him in any way he may hnd practi- 
 cable. 
 
 I notice what you say of the proceedings on the surrender of Iquique to the Chilian 
 forces, and the means taken to preserve order. I think your course and that of the 
 consular corps was wise and prudent. The document signed by the consular corps, 
 with its translation, was also received, which, I think, shows tbat you acted wisely 
 and well. 
 
302 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 As to your suggestion to have it published, I did not think it right to publish it 
 without the consent of the government here, and called on the minister for for- 
 eign relations for the purpose of ascertaining his wishes in the matter, and left with 
 him for examination the Spanish copy, to be returned after he should have examined 
 it. Two or three days after, he returned it, but without saying whether he wished it 
 published or not ; and as so much time had passed I did not think it best to press the 
 publication so long after the event. But the government have not indicated to me the 
 slightest disapprobation of the course you pursued, nor of the action of the consular 
 corps, 
 
 I suppose you have forwarded a copy to Washington, and given them full informa- 
 tion, or I would have sent a copy of this document and of your letter. 
 
 The taking of Iquique by the Chilian forces very materially circumscribes the sphere 
 of your official powers ; for while that place, or any other over which your juris- 
 diction as consul previously extended, is clearly under the complete control of the 
 Chilian power, you can exercise no strictly official power except by the courtesy and 
 consent of the Chilian authorities. They have the right, while in complete possession 
 and control, to establish their own regulations, and may, if they choose, give to the 
 captain of the port, for instance, or any other official appointed by them, full author- 
 ity to grant clearances to vessels, &c, during their occupation of the place. 
 Doubtless, from comity or courtesy (as they seem lately to be very liberal neutrals)., 
 they might assent to your exercising your official functions. But as Peru has, so far 
 as she has the power, declared the port of Iquique closed, and you exercise your func- 
 tions only by virtue of an appointment to Peru and under an exequatur from that 
 power, I should recommend that you abstain from granting clearances to any vessels 
 which would ostensibly give the right to enter Peruvian ports, because this, I am quite 
 sure, would not now be respected by the Peruvian authorities. 
 
 While the complete and efficient control of the Chilian authorities continues over any 
 part of the territory within your former jurisdiction, I should not attempt to exercise 
 official functions in such territory occupied by them, except with the express or tacit 
 approval of the Chilian authorities. But from comity and courtesy those authorities 
 will doubtless recognize you as the protector of American citizens and their interests. 
 It is for the present but a mere suspension of your official functions ; and if Iquique or 
 any other place within your former jurisdiction, now in the control of Chili, should in 
 the end revert to Peru, your official functions would also revert to you as before. 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 216. 
 Mr. Ghristiancy to Mr. Evarts. 
 No. 98.] Legation of the United States, 
 
 Lima, Peru, December 31, 1879. (Received January 22, 1880.) 
 Sir : Eeferring to my dispatch No. 94, showing the events which led 
 to the breaking up of the old (nominally) constitutional government and 
 the accession of Don Nicolas de Pi6rola to the dictatorship, I have the 
 honor to inclose you several decrees and addresses of the dictator, show- 
 ing the nature of the government established by him and the nature 
 of the means employed to carry his will into effect; all of which, as you 
 will perceive, have the merit of clearness and brevity. 
 
 From these various papers you will be able to judge of the present 
 status of the government here. 
 
 I enumerate these various papers in the statement of inclosures 
 herein. 
 
 I have, &c, 
 
 I. P. OHEISTIANOY. 
 
 [Incloaure 1 in No. 98.— Translation.] 
 Nicolas de PiisROLA, Supreme Head of the Republic : 
 
 Considering : 
 
 Firstly. That the inhabitants of Lima and Callao, by their respective acts, have spon- 
 taneously invested me with the supreme authority in the State, with full and com- 
 plete powers ; 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 303 
 
 Secondly. That the army and navy of the republic have adhered to this step, which 
 has been long the general aspiration of the country, and that it is confirmed by the 
 army in the south and by all the towns in telegraphic communication with the cap- 
 ital; 
 
 I decree : 
 
 Sole Article. With the title of Supreme Head of the Republic I accept the posi- 
 tion and powers with which I have been invested. 
 
 The chief clerk of the ministry of foreign affairs is intrusted with the publication 
 and communication to the proper persons of this decree. 
 
 Given in the government house in Lima, this 23d day of the month of December, 
 1879. 
 
 NICOLAS de PlfiROLA. 
 
 By order of his excellency. 
 
 The chief clerk of foreign affairs, 
 
 • E. LARRABUEE Y TjNiNUE. 
 
 [Ihclosure 2 in No. 98.— Translation.] 
 
 Letter to His Holiness, Leon XIII. 
 
 fticoLis de Pierola, Supreme Chief of the Republic of Peru. 
 
 Most Blessed Father : A spontaneous vote of Peru, given simultaneously and 
 unanimously by the people and the military and naval forces, has just invested me 
 with the supreme command of the republic, with omnipotent powers, which, in ac- 
 cordance with national inspirations, manifested perseveringly for sometime back, and 
 with the most ardent desires of my heart, •will be employed for the regeneration of 
 the political institutions, which urgently demand it, striving before all else to pre- 
 pare the triumph of our arms in the war in which we are engaged with Chili. 
 
 In communicating to your holiness my investiture "with the supreme authority of 
 this republic, so dear to the paternal heart of your holiness, I feel the most intimate 
 complacency in solemnly ratifying the sentiments of unyielding faith and filial love 
 with which I kiss the august hands of your holiness, asking from you your apostolic 
 benediction. 
 
 Given in the palace of Lima on the 23d day of the month of December, in the year 
 of Grace 1879. 
 
 [l. s.] NICOLAS de P1EROLA. 
 
 The secretary of State for the department of foreign affairs and worship : 
 P. Jose Calderon. 
 
 [Inclosore 3 in No. 98. — Translation. 1 
 
 The supreme chief has addressed the following letter to the chiefs .of friendly 
 States : 
 
 Nicolas de Pierola, Supreme Chief of the Republic of Peru. 
 
 Great and Good Friend : The unanimous acclaim of the people, the army, and the 
 navy of the country has just invested me with the supreme magistracy of Peru, with 
 omnipotent authority, which I shall exercise, keeping in view the regeneration which 
 our institutions demand, but above all and before all the triumph of the arms of the 
 republic in the war in which it is engaged with Chili. 
 
 In announcing to my investiture with the supreme power, I have the 
 
 very especial satisfaction of expressing the sentiments of loyal friendship in which I 
 abound towards the and the person of , for whose prosperity and 
 
 glory I offer the most sincere and fervent prayers. 
 
 Given in the palace of Lima on the twenty-third day of the month of December, in 
 the year of our Lord 1879. 
 
 [l. s.] NICOLAS de PIEROLA. 
 
 The secretary of state for the department of foreign affairs and worship : 
 Pedro Jose Calderon. 
 
304 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosure 4 in Xo. 98. — Translation.] 
 Nicolas de Pierola, Supreme Head of the Sepublic^ 
 
 Considering the inconvenience of the decree of interdiction of the 8th of November 
 last, it is hereby annulled. 
 
 The secretary of finance is intrusted with the fulfillment, publication, and circula- 
 tion of this decree. 
 
 Given in the government house in Lima this 35th dav of December, 1879. 
 
 N. de PIEROLA. 
 
 Manuel A. Barinaga. 
 
 [Inclosure 5 in No. 89.— Translation.] 
 
 Provisional statute. 
 
 Nicolas de Pierola, Supreme Head of the State. 
 
 Inasmuch as it is my intention to conciliate the respect due to natural justice and 
 the traditional policy of the republic, -with the ample and speedy action which the 
 regeneration of our institutions and the definite and glorious triumph of the national 
 arms require — 
 
 I do hereby sanction the following provisional statute : 
 
 Article 1. The sovereignty and independence of Peru are the bases of its political 
 and social existence. 
 
 Art. 3. The unity of the Peruvian family and the integrity of the territory, histor- 
 ically and juridically belonging to it, cannot be interrupted nor lessened without com- 
 mitting an act of treason against the country. 
 
 Art. 3. Article 4 of the old constitution relating to the religion of the State will re- 
 main unaltered. 
 
 Art. 4. The government guarantees primary instruction to all citizens, and encour- 
 ages superior and scientific instruction. 
 
 Art. 5. The independence of the judicial power is sanctioned; but the government 
 reserves to itself the right of watching effectively over the prompt and correct admin- 
 istration of justice. 
 
 Art. 6. The civil and penal codes remain in full vigor and force, whilst the neces- 
 sary reforms are being initiated with regard to them. 
 
 Art. 7. Personal security, liberty, and property are guaranteed by the government. 
 
 The right to honor ; equality in the eyes of the law ; the liberty of the press, anony- 
 mous writings being prohibited ; any such will be punished as pasquinades. Offenses 
 committed through the medium of the press will not change their nature thereby, and 
 will therefore be jndgrd by the respective courts. 
 
 The liberty of industry, provided that same be no way harmful. 
 
 The liberty of association. 
 
 The right of petitioning for justice or pardon, individually or collectively, but in due 
 form and manner. 
 
 Art. 8. Treason against the country, military cowardice and insubordination, de- 
 sertion in the field, peculation, breach of public trust, bribery, embezzlement of pub- 
 lic property, premeditated and treacherous homicide, robbing in gangs, whatever be 
 the condition of the guilty party or the character with which he be invested, will he 
 judged according to military law during the present war, and capital punishment in- 
 flicted. The property of anonymous societies, industrial, mercantile, or banking estab- 
 lishments, will be considered as public property for the application of the sentence. 
 
 Art. 9. Civic virtues and brave and heroic deeds will be rewarded by the munifi- 
 cence of the nation through the medium of its head. 
 
 Art. 10. A council of state is hereby created, composed as follows : 
 
 Of the archbishop of Lima. 
 
 The president of the congress of jurists. 
 
 The president of the supreme court of justice. 
 
 The president of the comptroller's office. 
 
 The prior of the consulate court (of commerce). 
 
 The rector of the University of Lima, and six councillors more, who will be ap- 
 pointed by the Supreme Head of the Republic, and one of whom must be a general of 
 the army. 
 
 Art., 11. The government will consult the council of state with regard to such mat- 
 ters as, in its opinion, may require it. It will also act as a court of appeal and final 
 decision in all litigious questions connected with the administration. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 305 
 
 Art. 12. This statute will remain in force until the republic be endowed with defi- 
 nite institutions. 
 
 Given in the government house in Lima this twenty -seventh day of the month of 
 December, 1879. 
 
 NICOLAS de PlEROLA. 
 
 The secretary of state for foreign affairs and worship, and temporarily for govern- 
 ment and police : 
 
 Pedro Jose Calderon. 
 
 The secretary of state for justice and instruction : 
 Federico Panizo. 
 
 The secretary of state for public works, commerce, &c. ; 
 Mariano Echegaray. 
 
 The secretary of state for war : 
 Miguel Iglesias. 
 
 The secretary of state for maritime affairs : 
 Manuel Villar. 
 
 The secretary of state for financial matters : 
 Manuel A. Barinaga. 
 
 [Inclosure 6 in No. 98.] 
 Military organization of the Republic. 
 
 Nicolas de Pierola, Supreme Head of the Bepubhc. 
 
 Considering: 
 
 That it is absolutely necessary to furnish the country with a proper military or- 
 ganization in order to insure the defense of its sovereignty and integrity of its terri- 
 tory, 
 
 1 decree : 
 
 Article 1. The military forces of the nation will be formed of four armies in active 
 service, as follows : Two armies of the south, styled first and second, respectively ; 
 one army of the center ; one army of the north. 
 
 Art. 2. The reserve forces of these armies will be divided into movable and stationary 
 reserves. 
 
 Art. 3. The following rule will be observed in raising the contingents for the for- 
 mation of the different armies : Every Peruvian from 18 to 30 years of age must enter 
 the army ou active service, and those from 31 to 50 years old the reserve. 
 
 Art. 4. The respective contingents will be formed by the sub-prefects of the prov- 
 inces, and placed at the orders of the departmental authorities. 
 
 Art. 5. The following are exempted from obligation of belonging to the army on. 
 active service and the movable reserves : 
 
 1st. All public employes in general. 
 
 2d. Professors of ins'ruetion exercising their profession. 
 
 3d. Members of colleges and universities. 
 
 4th. ThoBe citizens who contribute 50 soles or more monthly for the war. 
 
 5th. Proprietors and employes of printing offices and printers. 
 
 6th. Lawyers and medical men exercising their professions, as proved by the respect- 
 ive license. 
 
 7th. Hospital and ambulance employe's. 
 
 8th. 'Ihe only sons of widowed mothers. 
 
 9th. The only brother of any citizen killed in the battles of the present war. 
 
 10th. All citizens physically disqualified for the profession of arms. 
 
 Art. 6. The stationary reserve will be formed of the citizens exempted by the fore- 
 going article, and the superfluous forces of the movable reserve. 
 
 Art. 7. The contingents of the army on active service which result to be superflu- 
 ous will join the reserves. 
 
 Art. 8. The organization of the armies will be decreed separately. 
 
 Art. 9. The secretary of state for war is intrusted with the fulfillment of this de- 
 cree. 
 
 Given in the government house in Lima this 26th day of December, 1879. 
 
 N. de PlEROLA. 
 
 Miguel Iglesias. 
 
 S. ix. 79 20 
 
306 AFFAIKS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 217. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 99.] Legation of the United States, 
 
 Lima, Peru, December 31, 1879. (Received January 22, 1880.) 
 
 Sir : I have the honor to inform you tbat on the 26th instant I le- 
 eeived a notice from the dean of the diplomatic corps, the legate of 
 the Pope, that a meeting of the diplomatic corps in Lima would be 
 held at his legation on the 28th at 3 p. m., and inviting me to attend, 
 which I did. 
 
 I found, on meeting with the corps, as I expected, that it had refer- 
 ence to a recognition of the newly-installed government of Pi6rola, 
 who had, through the dean, invited all the corps to call upon him at 
 the palace on the 1st proximo, as had been customary here. 
 
 I listened for some time to what they hud to say, and found that, so 
 far as any expression was given, it was in favor of accepting the invi- 
 tation. I then inquired if it was to be understood that the acceptance 
 of the invitation would be considered as equivalent to a full recognition 
 by our respective governments of the newly-established government, to 
 which most, if not all of them, replied in the affirmative. I then ex- 
 plained fully to the corps the principles upon which I understood our 
 government to act substantially as you will flud stated in the inclosed 
 letter to Mr. Calderon, the secretary of foreign relations, and said to 
 the corps that I could not accept the invitation and make the call, ex- 
 cept subject to that explanation, and reserving to my government the 
 right to decide that question for itself; and that if I did attend it would 
 be under an express explanation to this effect, but I also informed them 
 that about the beginning of the month, anticipating the contingency 
 which has happened, I had written for instructions, &c. 
 
 At the conclusion of the meeting I had in fact come to the conclusion 
 that I would not join the corps in making the call, but subsequent re- 
 flection satisfied me that an unconditional refusal on my part (when all 
 the other representatives of foreign powers had resolved to accept) 
 might be interpreted as unfriendly to the government, which is, after 
 all, the only government here, and so far as we have yet been able to 
 hear from the people of Peru, much more acceptable to, and popular 
 with, the" people than the government it has displaced. I therefore 
 concluded, in order to avoid misconstruction, to take the middle course 
 indicated by the letter, a copy of which I inclose. 
 
 Hoping before this reaches you to have instructions which will au- 
 thorize me to act, 
 
 I remain, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure in No. 99.1 
 
 Mr. Christiancy to Senor Calderon. 
 
 Legation of the United States, 
 
 Lima, Peru, December 30, 1879. 
 Monsieur ilk Sbcketaire: I have the honor to acknowledge the receipt of your 
 letter of the 26th instant (No. 30), informing me of the change in the Government of 
 Peru, which has resulted in constituting His Excellency Don Nicolas de Pi£rola su- 
 preme head or governor of Peru, with full powers, &c , and that your excellency has 
 beeu appointed secretary of foreign relations and worship. I cordially reciprocate 
 
307 
 
 the wish expressed by yonr excellency that the ties of friendship now so happily exist- 
 ing between the Republics of Peru and the United States of America may become 
 every day more intimate under whatever form of government the people of Peru may 
 choose to adopt. . 
 
 But your excellency will appreciate the frankness and candor which compel me, as 
 the representative of the United States of America, to explain the principles upon 
 which, according to my understanding, my government acts upon the question of 
 recognizing governments originating in revolution, and not according to the constitu- 
 tion or accustomed forms of law. 
 
 The Government of the United States recognize the people in all governments as the 
 only legitimate source of political or governmental power, and though itself a con- 
 stituent government it recognizes equally the legitimacy of any form of government 
 the people of any nation may choose to adopt, either by formal vote or by tacit consent 
 evinced by general acquiescence. 
 
 But being itself, and for itself, thoroughly devoted to constitutional government, it 
 has not, as I understand its policy, committed to its ministers abroad, without instruc- 
 tions, the discretion and the riglit to bind it unconditionally upon the question of 
 recognizing a new form of government, as in the present case, or. in other words, of 
 finally deciding npon the natnre and amount of the evidence showing the approval or 
 acquiescence of the people in the change. And the case must be a very clear one indeed 
 which would authorize its minister to take definitive action without instructions. In 
 this view, and anticipating the change which has taken place here about the 1st of 
 the present month, I asked instructions from my government with reference to the 
 contingency vibich hasoccurred, aud shall expect to receive them in the course of two 
 or at most three weeks from this date. 
 
 In the mean time, while, from personal respect for the chief of the State and for your- 
 self personally, as well as from a desire to throw no obstacle in the way of the success- 
 ful action of the government, I may take part in acts from which recognition by my 
 government mignt otherwise be implied. I, therefore, ask to reserve to my govern- 
 ment the right of final decision of the question of recognition. 
 I avail nivself, &c, 
 
 I. P. CHRISTIANCY. 
 
 Ko. 218. 
 
 Mr. Cliristiancy to Mr. Uvarts. 
 
 No. 102.] Legation op the United States, 
 
 Lima, Peru, January 6, 1880. (Received February 3.) 
 
 Sir : Referring to my dispatches Nos. 90 and 91, 1 will say that there 
 is little news of any importance of the operations of the armies on 
 land ; though the Chilians having now full possession of Tarapaca (and 
 apparently will soon have of Tacna and all that vicinity) if not by this 
 time of Moquequa (or Moquehua) have, as we learn to-day, landed a 
 small force at Ylo and blockaded Mollendo, and it seems probable 
 they intend to take those places, and with the force they now have and 
 reinforcements about to be sent, to effectually cut off the communica- 
 tion of the albes at Arica with the interior by land, as they have al- 
 ready cut them off by sea, and thus, in time, to compel their surren- 
 der. 
 
 Peru has literally now no fleet afloat, except what is in the harbor 
 of Callao, and one monitor at Arica. Chili has not yet attempted to 
 blockade Callao, but is carrying on a desultory warfare upon Peruvian 
 launches along the coast, and has destroyed all the guano works and 
 launches at Lobos de Afuera, putting a full stop to all the guano trade 
 of Peru for the present. 
 
 General (or President) Daza was deposed from the command of the 
 Bolivian army on the 27th ultimo, but whether by the Bolivian Gov- 
 ernment or by the army officers, or both, I cannot yet ascertain, nor 
 whether it is intended to deprive him of his position as President. But 
 
308 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Col. D. E. Cainacho commands the Bolivian army; and the movement 
 which brought about this change seems to have been one strongly in 
 favor of the Peruvian alliance. 
 
 The government here is rapidly raising troops in the interior and 
 bringing them to Lima and Callao ; but they are of little use here, un- 
 less the Chilians should make a land attack here, which they will not 
 do while the albes have their present strong force in the south, and the 
 troops here cannot be sent to the aid of the army in the south by water, 
 even as far as Mollendo, without an even chance of being captured ; 
 and to send them by land with the necessary munitions and supplies 
 would require several months. 
 
 The present government keeps its own council better than the old, 
 and we therefore can form no definite opinion as to the uses intended 
 to be made of the large and constantly-increasing force here, whether 
 it be intended for the southern army or only to meet an attack here 
 should the southern army be defeated or compelled to capitulate. In 
 the mean time the finances are not improving. Paper soles have stood 
 now for about a week at 85 for an American double eagle, or say 83 for 
 a draft on New York, and the sol is worth in exchange on London a 
 fraction over 11 pence. What is to improve its value I do not see, 
 though I see many causes which may reduce it still more. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 P. S. — January 7. — It now appears from news just received that Daza 
 was deposed by the unanimous voice of the officers of the Bolivian 
 army. We have also a rumor of a revolution in Bolivia, putting Dr. 
 Oblitas in power, but nothing definite. 
 
 No. 219. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 103.] Legation of the United States, 
 
 Lima, Peru, January 7, 1880. (Received February 3.) 
 Sir : Referring to my dispatch No. 98, 1 have the honor to say that I 
 intended to have inclosed you in that dispatch the letter of G-eneral de 
 la Cotera of the 27th ultimo, justifying his action in the late (nominally) 
 constitutional government, which had not been translated by the press 
 into English at the date of my dispatch, and which I had no time to 
 translate. I inclose you now a translation taken from the South Pacific 
 Times of the 1st instant. This explanation or appeal to the public 
 would have had much more moral effect here if the author himself had 
 not been known as a chronic revolutionist in the past, and if it were 
 not quite generally believed here, as intimated in my dispatch No. 88, 
 that he was the secret instigator of the abortive uprising of the 22d 
 November to make him, instead of Pi£rola, dictator. But whatever may 
 be the final verdict of history, the verdict of Peru, if taken to-day, woidd 
 be that circumstances alone, and not principle, had made him ; for the 
 moment, the representative of constitutional government, that his sen- 
 timents of chivalry and personal honor were too strong to permit him 
 to abandon the position in which he had been placed, unless by such 
 abandonment he could himself be made dictator ; that he has always 
 
AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 309 
 
 appeared to better advantage in defeat than in victory, and that he 
 never exhibited so much elevation of character as in his final, crushing 
 defeat and deposition from power — if it should prove to be final. As 
 to the government of the dictatorship, it must be acknowledged that 
 it has shown much more activity, vigor, and consistency of purpose 
 than the old. 
 
 It has been very prolific in decrees, which are too numerous for me to 
 undertake to translate. They will soon constitute a code of themselves. 
 At present they mostly relate to perfecting the organization of the gov- 
 ernment, and are generally well calculated to effect their object. In 
 style they are admirable for their brevity — a brevity, however, which 
 when the decree relates to individual rights (like most other dictatorial 
 decrees) is ominous of liberty; and which assumes that all human 
 affairs can be regulated upon a few straight lines or mathematical 
 curves, and wholly ignores the infinite variety of forms which they as- 
 sume, and subjects all those rights to what one man may determine that 
 the public exigencies require. 
 
 I call your attention here to that portion of the decree in the nature 
 of a provisional statute (sent you in my dispatch ~No. 98), which relates 
 to the press, and the official construction which has been given it. 
 Though by its terms only intended to take effect in thirty days, it has 
 been officially construed to take effect at once in Lima and Callao. It 
 has also been construed and enforced, as prohibiting a mere compila- 
 tion of news from other papers, without the signature of the compiler ; 
 from which it will be seen that the same arbitrary discretion has been 
 assumed in the construction as in the enactment of the decree. 
 
 But a decree suppressing the liberty of the press seems everywhere 
 •to be and to have been the logical and necessary consequence of a dic- 
 tatorship. 
 
 I call attention, also, to that provision of the provisional statute in 
 reference to religion, which, though in exact accord with the constitu- 
 tion, indicates by the promptness with which it was announced by de- 
 cree, the influences which brought about the dictatorship and which 
 are to be at once conciliated. The provision of the constitution referred 
 to (Article 4) is in these words: "La nation profesa la religion Oatolica, 
 Apostolica Eomana, el estado la proteje, y no perniite el ejercicio de 
 otra alguna." Anglice : The nation professes the Catholic Apostolic 
 Roman religion ; the State protects it and does not permit the public 
 exercise of any other. 
 
 But whatever may be the merits or demerits of the present dicta- 
 torial government, one thing is thus far clear, so far as yet heard from 
 all parts of Peru, it seems not only to be acquiesced in, but to have 
 met the approval of the people, the army and the navy, and, therefore, 
 as I understand the principles adopted by our government, must be 
 recognized as the choice of the people of Peru, and, therefore, in the 
 international sense legitimate. There is no pretense of any other gov- 
 ernment. 
 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 [Inclosure in No. 103.— Translation.] 
 
 Manifest of General la Colera to the nation. 
 
 Although I calmly await the verdict of history with the clear conscience and proper 
 pride which the fulfilment of duty inspires, I consider it right to protest before the 
 
310 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 country against the unfounded and rash accusation which the leader who has victori- 
 ously raised himself to power upon the ruins of the constitution, has launched at me. 
 
 Don Nicolas de Pierola looking about him for a victim, has chosen the writer as the 
 object upon whose reputation as a soldier of the law, to cast the dark shadow of blame, 
 a shadow which the conduct of the army itself has tended to dissipate, which in the 
 moment of trial, seconding the example of its principal commanders, made the road 
 easy for him to raise himself to power. 
 
 My stupid and impatient ambition is, in the opinion of the supreme head, the solecause 
 of the disgraceful and lamentable events of Sunday last; an ambition that was 
 endeavoring to realize by various means, the political regeneration which the outlaw 
 of yesterday and the patriot ahvays has undertaken in face of the foreign invader, tear- 
 ing into pieces the banner of the law. 
 
 Therefore it is easily to be understood that supposing me to have entertained those 
 freedom-stifling intentions, it has not been that ambition which we both possessed in 
 Senor Pie>ola's opinion that induced him to upset legality, but the fear lest it should 
 not be he but myself, who should put, it into practice. 
 
 The country can consequently judge which of the two has been most animated with 
 a stupid and impatient ambition. With regard to myself, there has only been the 
 groundless suspicion of such a thing, whereas in the case of Sefior Pierola that ambi- 
 tion has been practically evidenced, the writer's only crime in the eyes of his party, 
 consisting in having endeavored, as a minister of the law, to defend constitutional 
 order. If this is a crime, I am proud of being guilty of it. 
 
 To a calm and dispassionate observer of the late events, it is an undeniable truth 
 that the triumph of Sefior Pierola is due to the attitude assumed by the army, an army 
 formed principally by myself, with all the abnegation and impartiality which the 
 country's defense demanded of me. In forming it I had solely in view the luster of 
 the noble profession which I have from an early age aud the triumph of our arms over 
 the treacherous enemy that has invaded our soil. 
 
 I never stopped to consider the political bearing of the officers to whose care I eD- 
 entrusted the brave bodies of men that swarmed in from the departments at the sacred 
 call of an endangered country, and although I was aware that many of the generals 
 and colonels I gave cominauc.s to, were addicted to Sefior Pierola's cause, I never once 
 harbored the slightest suspicion that in the critical moments we are passing through 
 they would disregard the mandates of the law. 
 
 Colonel Arguedas is an example of the truth of my assertion. His sympathies for the . 
 political cause which has now triumphed were well known to me; notwithstanding 
 I willingly gave him of the " Yea" battalion, in the belief that when the moment ar- 
 rived for him to do battle with the foreign foe, he would fully sustain the reputation 
 of our army. 
 
 Where, then, is that stupid ambition ? 
 
 As minister and as an old soldier, I should have sought the aid of my companions 
 in arms for the attainment of my revolutionary plans, and notwithstanding events 
 have proved the falsity of the imputation with which they have endeavored to tarnish 
 my honor, and shown that that army, my own creation, was a powerful auxiliary of a 
 strauge and impatient ambition. 
 
 History will judge the high representatives of that army, who, disobeying the legal 
 government in the hour of danger, urged their subordinates to revolt and desertion ; 
 a fatal precedent which will prove a source of bitter and tremendous woe to the country. 
 
 The result of the late events, however, is perfectly logical. A target for the venge- 
 ful arrows of two parties, which for a long time have been striving fur power, aud one 
 of them counting with the sympathies of the men who were called upon to defend the 
 constitution, it was natural that I shou'd succumb, alone and abandoned. 
 
 To the " Civil" party, to wnose cause I have never lent my humble aid, I have been 
 a living threat; to the Pie"rolists an obstacle. 
 
 Previous to last Sunday Civilisrs and Pie>olists together respected the authority of 
 the government of which I formed a part ; but on that day of the fiDal result the joy 
 of the latter has been as the sadness of the former. A providential punishment ! the 
 voluntary suicide of a party devoured in the last days of its existence by rage aud 
 hatred. 
 
 There, therefore, remains to me the satisfaction of returning to private life without 
 anything to stain my reputation as an old soldier, haviug fulfilled my sacred duty in 
 the high position of president of the council of ministers aud minister of war, con- 
 quered, it is true, but not in fair fight, as I have been accustomed to conquer and be 
 conquered during my long public career. 
 
 With regard to my proceedings as a minister, I appeal to the impartial testimony of 
 those of my fellow-citizens who are not blinded by political passions. 
 
 As long as I was a minister, my sole efforts were for the defense of the country ; and 
 in the firm persuasion that any revolution under present circumstances was a crime, I 
 have fallen in defense of legality. 
 
 I trust, also, to the gentlemanly feelings of my successor that he will find valuable 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 311 
 
 elements ready to hand, due to my persevering activity, and about which I do not con- 
 sider it necessary to enter into particulars. 
 
 In a calm and resigned state of mind, therefore, I have no fear of the wrath of the 
 powerful, and in the privacy of my home, far from the fierce arena of politics, I shall 
 only gird on my sword again to fight the common foe. 
 
 MANUEL GONZALEZ DE LA COTERA. 
 
 Lima, December 27, 1879. 
 
 No. 220. 
 Mr Ghristianey to Mr. Hvarts. 
 
 Kb. 104.] Legation of the United States, 
 
 Lima, Peru, January 14, 1880. (Received February 7.) 
 
 Sir : I have the honor to inclose to you translations (taken from the 
 South Pacific Times of yesterday) of several decrees of the Supreme 
 Head of the Republic, and of other papers, showing the action of the 
 government, as enumerated in the list of enclosures hereto appended. 
 
 These various decrees explain themselves about as well as I can ex- 
 plain them in a single dispatch, except that releasing the German 
 steamer Luxor. That steamer was seized at Callao in May or early in 
 June last for having brought contraband of war (guns and ammuni- 
 tion) from Montevideo to Valparaiso, for the Chilian Government. She 
 was condemned by the prize court of Peru, and that decision affirmed 
 by the supreme court of Peru. Still as she was not seized flagrante de- 
 licto, nor until her outward voyage had been completed and she had dis- 
 charged her cargo at Callao, and was taking on return cargo, many 
 doubts were expressed on the legality of the sentence. Some of the 
 foreign ministers here had emphatically denied its legality. I was asked 
 to give my opinion, but declined, as I could see no reason to justify me 
 in meddling with it. 
 
 There was one thing, however, which weakened the force of the judg- 
 ment materially. The court had based their judgment mainly on the 
 ground of Peruvian statute law ; and Peru alone could not create inter- 
 national law. 
 
 I have, &c. 
 
 I. P. CHRISTIANCY. 
 
 [Incloaure 1 in No. 104.] 
 THE FOREIGN DEBT. 
 
 Nicolas de Pierola, Supreme Head of the Republic. 
 
 Considering — 
 
 First. That it is absolutely necessary to provide for the payment of the foreign debt 
 of Peru, and to better the unfavorable conditions in which our creditors are placed, to 
 their own prejudice and that of the credit of the nation. 
 
 Second. That the fiscal state to which the country is reduced, renders it impossible 
 for it to fulfill to the letter the obligations it has contracted with respect to the hold- 
 ers of bonds of the foreign debt, and it is therefore compelled to discharge said obli- 
 gations as far as its present resources will allow. 
 
 Third. That the greater portion of that debt originated in the construction of the 
 national railways, to which purpose the loan was applied, and that, not only are the 
 said railways specially mortgaged for the payment of the debt in question, but, the 
 latter not being able to be duly attended to, they belong by right to our creditors. 
 
 ■ Fourth. That the portion of the national territory where the guano deposits lie, also 
 reserved for the payment of our foreign debt, having been occupied by the enemy, until 
 said territory be recovered it is impossible to at tend with the product of those resources 
 
312 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 to the payment of the debt, and it is indispensable, for the sake of our creditors them- 
 selves, to look with preference to the guano stocks in Europe for the necessary funds 
 wherewith to attend to the prompt recovery of said territory. 
 
 Fifth. That as a modification of the conditions of payment of our debt is inevita- 
 ble, the changing of the scrip likewise becomes inevitable. 
 
 I decree : 
 
 First. That the debts contracted in Europe in 1870, that which bears the name of 
 the 1872 loan, and the bonds issued for the Pisco and lea railroad, be consolidated into 
 one single debt. 
 
 Second. That the following national railways, as they now stand, be made over to 
 the hiplders of the bonds of the foreign debt of Peru, viz : the Mollendo and Cuzco, Ho 
 and Moquegua, Pisco, lea, Lima, Chancay and Huacho, Callao and Oroya, Salaverry 
 and Trujillo, Chimbote and Huaraz, Pascamayo and Cajamarca, and Payta, and Pinra, 
 for the amount of their cost in coin, the shares being exchanged for the bonds at par. 
 
 Third. Every bondholder will receive in railway shares and in new scrip, the total 
 value of his present bonds, in the proportion of the amount for which the railways are 
 handed over" to the remnant of bonds to be exchanged. 
 
 Fourth. The transfer to be unconditional and effectual; so that the state will not 
 exercise other rights over the said railways than those which it possesses over rail- 
 ways constructed and worked by private industry. 
 
 Fifth. The companies which may be constituted proprietors of these lines are 
 authorized to extend them to their termination, aud work them, enjoying an exclusive 
 privilege during twenty-five years, to be counted from the date of transfer, and with 
 the liberty of importing free of duty the materials required for the termination of 
 such lines as are not entirely finished. 
 
 Sixth. In order to effect the operations to which the present decrees refer, let a com- 
 mittee be appointed in London, to be presided over by the minister plenipotentiary of 
 Peru in Great Britain, aud to be composed of himself, of the representative of the firm 
 which last served as financial agent for Peru in Europe, and a citizen to be appointed by 
 government. The bondholders, should they think fit, can depute two representatives 
 of their own to take part in the labors of said committee. 
 
 Seventh. The transfer of property referred to the preceding articles having been 
 effected, the remaining bonds of the foreign debt will be converted into new scrip at 
 par, bearing the same name as that exchanged, which scrip will be served with an 
 accumulative four per cent, per annum, applicable to the interest of two and a half 
 per cent, each year, payable half yearly, and one and a half per cent, sinking-fund. 
 
 Eighth. The amortization will take place every six months, by means of sealed ten- 
 ders under par, presented to the financial agency, and by lot, at par, for such portion 
 as said sinking-fund fails to cover. 
 
 Ninth. Peru devotes to this service, as soon as the exportation of gnano is resumed, 
 the sum of two pounds on every ton which it sells in the markets of Europe and 
 colouies (excepting the markets of France aud Belgium), said two pounds to be de- 
 posited inthe Bank of England by the seller of the Peruvian guano in the aforesaid 
 markets, the half yearly service of the bonds being attended to with these funds, and 
 whatever is over to be reserved for the next half year for the same purpose. 
 
 Tenth. In order fully to guarantee said service, the obligation of the contractor 
 with Peru to make the deposit in question will be inserted in the guano-sale contracts 
 which Peru may make; the holders of Peruvian bonds being henceforth and for 
 the future authorized to embargo the guano exported, should said deposit not be 
 made. 
 
 Eleventh. The stock of guano at present existing in Europe and its colonies, after 
 the obligation it is pledged to, aud the sum which Peru takes for the releasing of the 
 guano deposits now occupied by the enemy, are discharged, will be applied to the ex- 
 traordinary amortization of the Peruvian bonds, the service of interests and ordinary 
 amortization to commence from the date of resumption of exportation of the article. 
 
 Twelfth. The representative of Peru in Europe will inform the holders of Peruvian 
 bonds of the present decree. 
 
 The secretary of state of finance is intrusted with the fulfillment of this decree. 
 
 Given in the government house in Lima, this 7th day of the month of January, 1880. 
 
 NICOLAS DE PIEROLA.. 
 
 Manuel A. Barinaga. 
 
 flnclosure 2 in No. 104.] 
 THE GUANO LOAN. 
 
 Inasmuch as the questions peuding between the Supreme Government of Peru and 
 the firm of Dreyfus Bros. & Co., of Paris, have this day been arranged, as shown in the 
 respective contract; and as it has become absolutely necessary to put an immediate 
 
AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 313 
 
 stop to the depreciation of guano in Europe, and the ruinous competition for Pern be- 
 tween the sellers of the article, no less than to provide the treasury with funds where- 
 with to attend to the expenses of the present war, and the Peruvian Guano Company 
 having hitherto opposed difficulties in the way of selling the guano at the price which 
 the treasury can obtain for it : 
 
 His honor, the secretary of finance, representing the Supreme Government of Peru, 
 and Mr. Frederick Ford, representing the firm of Dreyfus Bros. & Co., of Paris, have 
 agreed to the following : 
 
 1. Dreyfus Bros. & Co. bind themselves to purchase all the guano not sold to the 
 public by the Peruvian Guano Company, Limited, and which the latter company pos- 
 sesses in stock or may add to their stock by exportation. 
 
 2. This guano will be paid for by the purchasers without an analysis being made 
 of same previously, and according as they go on receiving it, at a uniform price of 
 eleven pounds fifteen shillings per ton. 
 
 3. The Peruvian Guano Company will keep possession of the guano as a guarantee 
 for its value, and will hand it over to Dreyfus Bros. & Co., according as the latter pay 
 for it; the quantity delivered must not be less than one hundred thousand tons per 
 half year. For this quantity they will pay the Peruvian Guano Company the propor- 
 tion which corresponds to them by virtue of the following article, and the difference 
 between that portion and the price fixed per ton they will carry in account with the 
 Peruvian Government. 
 
 4. In order to fix the amount due to the Peruvian Guano Company on every ton of 
 guano, tbe government accepts provisionally the debt balance against Peru, shown by 
 their accouuts presented up to t tie date of the coming into force of the present contract, 
 and the amount of same, divided by the total number of tons in stock and afloat, will 
 be the proportion corresponding to the company for every ton of guano delivered by 
 it, Peru reserving to herself the right to question, when necessary, the correctness of 
 the accounts of the company, any errors in which will be deducted from the last tons 
 of guano to be delivered. 
 
 5. The actual stock of guano in Europe, and that afloat, being composed of guano 
 of different qualities, and it being, therefore, necessary that the purchasers should first 
 proceed to mix same, in order to obtain a uniform quality, Dreyfus Bros. & Co. will 
 choose the one hundred thousand tons, the minimum half-yearly quantity, from the 
 guano of different qualities in stock and afloat. 
 
 6. The Peruvian Guano Company will deliver the guano, free of all expenses, as they 
 at present do with their customers, to Dreyfus Bros. & Co. or to their order. k 
 
 7. Dreyfus Bros. & Co. will advance the treasury the sum of (l)on account of the 
 
 proportional amount corresponding to the Supreme Government of Peru on every ton 
 of guano, after the proportion due the Peruvian Guano Company be deducted. 
 
 8. The government will draw bills at ninety days sight for this amount. This ad- 
 vance will gain a half-yearly interest of two and a half per cent., calculated on the 
 balance remaining at the end of every six months, and it will be paid off with the 
 proportion corresponding to the Peruvian Government on every ton of guano Bold. 
 
 9. The Supreme Government of Peru binds itself not to export nor permit that others 
 export any guano whatsoever to Europe and its colonies uutil the present stock be 
 exhausted, with the exception of a reserve stock sufficient for six months' sale. The 
 purchasers will take upon themselves the responsibility of advising when any market 
 finds itself in such a conditiou The government pledges the word of the nation not 
 to export, nor to permit others to export any guano whatsoever to the before-men- 
 tioned markets, so long as the contract remains in force. Any cargo of guano intro- 
 duced iuto them in spite of this stipulation will be forfeited, the introducers likewise 
 suffering the penalties established by the penal laws of the respective countries. For 
 this purpose the government invests the purchaser with the requisite powers in order 
 that they may institute the necessary proceedings before the respective courts. The 
 guano forfeited will be sold by the purchasing firm, and a commission of fifteen per 
 cent, upon the net product of same paid into the Peruvian treasury. 
 
 10. The Supreme Government of Peru pledges itself not to receive from the Peruvian 
 Guano Company, or from any other party, any sum whatsoever upon the guano to 
 which this contract refers, for which purpose it will inform tbe Peruvian Guano Com- 
 pany and its agents of same having been made, Dreyfus Bros. & Co. being authorized 
 to notify them also for their own part. 
 
 11. The Supreme Government of Peru binds itself to guarantee the interests of the 
 holders of bonds of the external debt, so that the advance stipulated in the present 
 contract may not signify any responsibility whatsoever for the purchasers, Dreyfus 
 Bros. & Co. 
 
 12. The alienation and transfer of the gumo, purchased and paid for by the latter, 
 is unconditional and absolute, and they can in consequence dispose of same as they 
 think best. 
 
314 AFFAIRS IN CHILI, PEETJ, AND BOLIVIA. 
 
 13. The purchase and advance accounts presented by Dreyfus Bros. & Co. will be 
 examined and decided upon within the half year succeeding their presentation, at the 
 expiration of which they 'will be considered as approved. 
 
 14. The profits which Dreyfus Bros. & Co. may derive from this contract are not 
 liable to taxation in Peru. 
 
 15. This contract will only come into force should the Peruvian Guano Company not 
 wish to enter into it for its own account. The Supreme Government of Peru, in event 
 of said company not desiring to take it itself, pledging itself to remove all opposition 
 which the said company might offer and bring the contract into force. 
 
 16. ***** * 
 Signed in duplicate in Lima this seventh day of the month of January, eighteen 
 
 hundred and eighty. 
 
 MANUEL A. BAEINAGA. 
 FEED. FOED, 
 
 Representing Dreyfus Bros. 4' Co. 
 
 Lima, January 7, 1880. 
 The present proposed contract having been examined and found suitable to the fis- 
 cal interests, it is hereby approved in all its parts, and, consequently, let it be transcribed 
 to the financial agent of Peru in Europe. 
 
 Eegister in the book of private documents in the council of secretaries, &c. 
 Eubric of H. E. 
 
 BAEINAGA. 
 
 rincIoBure 3 in No. 104. J 
 
 ARRANGEMENT OP THE QtJESTIONS PENDING BETWEEN THE GOVERNMENT AND THE 
 FIRM OF DREYFCS BROS. & CO. 
 
 Inasmuch as it is indispensable that the questions which have arisen between the 
 Supreme Government of Peru and the firm of Dreyfus Brothers & Co., of Paris, be 
 at once settled, and that the guano market in Europe and the colonies be unburdened, 
 so that Peru may be able to effect the sale of that article, without the injurious com- 
 petition which would exist if Dreyfus Bros. & Co. were to continue likewise, and at 
 the same time disposiug of the guano they hold in stock and that which they export, 
 his honor the secretary of finance, as representing the Supreme Government of Peru 
 and Mr. Frederick Ford, representing the firm of Dreyfus Brothers & Co., of Paris, 
 have agreed to the following : 
 
 1. The contract of the 14th of April, 1874, is to be declared canceled, and null and 
 void of all effect in the future. Its value in the past is proved by deeds, which will be 
 duly appreciated by the stipulations it contains. 
 
 2. Without prejudice to what is stipulated in clause 10, the government takes as 
 basis for this arrangement the balance shown by the accounts presented by Dreyfus 
 Brothers & Co., on the 30th of June, 1879, amouuting to 21,083,095 soles, 85 cents, or 
 say, £4,008,000 7s. Id. at the exchange of 45<2. and five-eighths of a penny persol, agreed 
 upon in the contract of August, 18H9 ; and since it is impossible to pay same at the 
 present moment, according to the tenor of article 26 of the same contract, Dreyfus 
 Brothers & Co. will export the sufficient number of tons of guano of 1,000 kilograms 
 each, to cover said balance, and they will credit same in account at the price paid by 
 the new guano contractor, and in the absence of a contract, at the rate of five pounds 
 sterling per ton. This guano will, from that moment pass to be for account, cost, and 
 risk of Dreyfus Bros. & Co., together with all the rights annexed to its unconditional 
 and effectual alienation, and without other restrictions than that stipulated in clause 
 9 of this contract. 
 
 3. The guano will be delivered in bulk in the ships' launches, by cargoes, with forty 
 per cent, increase on the registered tonnage ; but if the Supreme Government should 
 succeed in stipulating with the new contractor for the article to be exported in sacks 
 and weighed, its exportation by Dreyfus Bros. & Co. will be effected in a like manner. 
 
 4. Dreyfus Bros. & Co. will select in the guano deposits the guano which it may 
 suit them to export. 
 
 5. Vessels will take out their loading-liceuses in the deposits themselves, and from 
 there they will be dispatched direct to their port of destination. 
 
 6. Dreyfus Bros. & Co. will pay for account of the Supreme Government the ex- 
 penses of loading the guano they export, deducting same from the amount to be placed 
 to the credit of the government for each cargo. 
 
 7. The Supreme Government will be directly responsible to the captains of vessels 
 for the non-shipment of the cargo, and the delays occasioned by the authorities or the 
 agents of the government in the deposits themselves or in any other part. Dreyfus 
 Bros. & Co. are authorized to insert this clause in the charter parties. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 315 
 
 8. Clauses 2, 3, 4,5, 6, and 7 of this contract, will remain canceled, should the Su- 
 preme Government pay Dreyfus Brothers & Co. in cash ; but in such au event the 
 charters given by them will be respected by the government. 
 
 9. In order to destroy all competition in the guano markets, the guano that Dreyfus 
 Bros. & Co. hold in stock, aud that which they export in payment of the sum of money 
 owing them by the Government of Peru, will be sold by them only in the markets of 
 France (excluding its colonies) and Belgium, from the date upon which the new guano 
 contract which the Supreme Government proposes to make, or that which it may cele- 
 brate on the basis of the actual stock in the hands of the Peruvian Guano Company, 
 comes into force. In order to bring this stipulation into effect, the necessary ex- 
 change of guano will be made, when required, between Dreyfus Bros. & Co., and the 
 new contractor. 
 
 10. As the settlement of Dreyfus Bros. & Co.'s accounts, and the decision of the ques- 
 tions arisen between them and former administrations in Peru, corresponds to the tri- 
 bunals of the republic in virtue of the nature of those institutions and the special 
 compact of August, 1869, already referred to (article 33) the decrees and resolutions 
 issued by former administrations, whatever be their character, will only be regarded as 
 the point of departure in the matter of such questions. The said tribunals alone will 
 decide these questions, within the term of six months, solely in view of the contracts 
 which have been in force, the laws of the republic, and according to the principles of 
 justice and equity where said contracts and laws do not apply. Both the Supreme 
 Government and the firm of Dreyfus Brothers & Co. will accept said decisions. 
 
 11. Any sum of money which the courts may adjudge Dreyfus Bros. & Co. to pay 
 into the treasury will be deducted from the provisional balance set down in clause 2. 
 
 12. Dreyfus Bros. & Co. are at liberty to make over to other persons the rights con- 
 ceded to them by the present contract. 
 
 MANUEL A. BARINAGA. 
 FRED. FORD, 
 Representing Dreyfus Bros, fy Co., of Paris. 
 Lima, January 7, 1880. 
 
 Lima, January 7, 18S0. 
 The present contract, entered into between the secretary of finance and Mr. Frederick 
 Ford, representing the firm of Dreyfus Brothers & Co., of Paris, after due examination 
 is hereby ratified in all its parts ; and in consequence let it be duly drawn up as a public 
 instrument. 
 Rubric of H. E. 
 
 BARINAGA. 
 
 [Inclosure 4 in No. 104.] 
 STATE OBLIGATIONS. 
 
 Considering: 
 
 First. That the public finances require regulating, and the obligations of the State 
 need to be promptly discharged. 
 
 Secondly. That there is a large debt in existence, proceeding from the two previous 
 administrations, the source, nature, and amount of which are equally unknown. 
 
 Thirdly. That so long as the debt in question be not made perfectly clear and liqui- 
 dated, it is impossible to pay it or strike a proper fiscal balance. 
 
 It is resolved : 
 
 First. The public revenue will be solely applied for the payment of services lent and 
 obligations contracted subsequent to the 24th of December last. 
 
 Secondly. Claims of prior date to the above, duly examined and proved to be genuine, 
 ■will be disposed of when these operations are terminated. 
 
 Thirdly. In order to expedite these operations, aiid not to increase the ordinary labors 
 of the respective functionaries, a commission is hereby appointed, composed of the fol- 
 lowing three employe's, viz : Don Jose' Manuel Osores, Don Pedro Carrion, and Don 
 Genaro Balarezo, which commission will immediately proceed to convoke creditors of 
 every description, divide them into their various classes, and liquidate the sum of their 
 various accounts, reporting the result of their labors as soon as possible. 
 
 Fourthly. Said commissioners will receive, apart from their respective pensions, a 
 gratification of one hundred and fifty soles per month, chargeable to the special expense 
 account. 
 
 Let it be registered, &c. 
 
 Rubric of H. E. 
 
 BARINAGA. 
 
316 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 [Inclosure 5 in Mo.104.] 
 RELEASE OF THE LUXOR. 
 
 Nicolas db Pierola, Supreme Head of the Republic. 
 
 Considering: 
 
 First. That the German colony, resident in Pern, merits special consideration on ac- 
 count of the probity and industry of its members, who have manifested cordial sym- 
 pathy for the republic during the present war, and a lively enthusiasm for our cause. 
 
 Secondly. That the development of the new navigation companies on our coast is in 
 the interest of Peru, and it is, therefore, useful to encourage them and promote their 
 welfare. 
 
 In virtue of the faculties with which I am invested — 
 
 I decree : 
 
 That the steamer Luxor be handed over to the navigation company between Callao 
 and Hamburg, styled Kosmos ; and the said steamer is in consequence free to leave 
 Callao, in whose waters she is at present anchored. 
 
 The secretary of state of finance and commerce is intrusted with the execution of 
 this decree and with its publication and circulation. 
 
 Given in the government house, in Lima, this 10th day of January, 1880. 
 
 NICOLAS DE PIEROLA. 
 
 Manuel A. Barinaga.. 
 
 [Inclosure 6 in No. 104.] 
 INCOME TAX. 
 
 Nicolas de Pierola, Supreme Head of the Republic. 
 
 Considering : 
 
 First. That it is obligatory that every inhabitant of a country should contribute in 
 proportion to his resources to the public expenses. 
 
 Secondly. That it is necessary to regulate the actual public taxes, making them weigh 
 equally upon all and facilitating their collection. 
 
 Thirdly. That the augmented expenses during the war make it likewise necessary 
 and strictly requisite that taxatiou should be increased. 
 
 I decree : 
 
 First. The patent, property, industrial, and ecclesiastical taxes, and all others which, 
 under different names, are chargeable on the produce of capital and labor, are amal- 
 gamated into one single tax, to be styled tax upon income. 
 
 Secondly. This tax will be chargeable at the rateof three per cent, upon all incomes, 
 and must be paid by every inhabitant whose income is not under six hundred soles 
 per annum, or who has not resided in the country less than one year. 
 
 Thirdly. Public employes are exempted from the payment of this tax, if they do not 
 possess other means than their salary ; but should they be in receipt of other means 
 they must pay the tax on the latter, even although same may not reach the minimum 
 fixed in the preceding article. 
 
 Fourthly. All males over 21 years of age whose income does not amount to six hun- 
 dred soles per aunum, will pay, those on the coast, 3 soles per annum, and those in the 
 interior two soles, excepting those over 70 years of age and those who are incapable of 
 work. 
 
 Fifthly. This tax will be collected every half year, in advance, by collectors ap- 
 pointed by the prefects, and who will be under the immediate vigilance of the sub- 
 prefects and governors. 
 
 Sixthly. The collectors of the tax will receive four per cent, of the amount they col- 
 lect, and they must give guarantees for the amount which they are to collect in the 
 half year. 
 
 Seventhly. All other direct taxes in the republic are suppressed. 
 
 Eighthly. During the present war the amount of the tax, as fixed in the preceding 
 articles, is doubled. 
 
 The secretary of state for finance is intrusted with the fulfillment of the present 
 decree and with its publication and circulation. 
 
 Given in the government house, in Lima, this 8th day of the month of January, 
 1880. 
 
 NICOLAS DE PlEROLA. 
 
 Manuel A. Barinaga. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 317 
 
 No. 221. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 105.] Legation op the United States, 
 
 Lima, Peru, January 14, 1880. (Eeceived February 7.) 
 Sir : I have the honor to inclose to you a copy of a letter from S. C. 
 Montjoy, our consul at Lambayeque, of the 3d instant, with a copy of 
 my reply, ~$o. 36, and a copy of my letter of this date to Mr. Osborn, 
 our minister in Chili, No. 37. 
 I am, &c, 
 
 I. P. OHEISTIANCY. 
 
 [IncloBure 1 in N/o. 105.] 
 
 Mr. Montjoy to Mr. Christiancy. 
 
 United States Consulate, 
 
 Lambayeque, January 3, 1880. 
 Hon. I. P. Chuistiancy, 
 
 United States Envoy Extraordinary and Minister Plenipotentiary, Lima : 
 Sir: I have the honor to inform you that Mr. Ratter, consular agent at Payta, re- 
 ports to uie the destruction, at the port of Talara, of the pontoon, with its contents, 
 belonging to the American Oil Company, exclusively American property, and I am in- 
 formed also by the governor of the Lobos Islands that a large quantity of American prop- 
 erty was destroyed by the Chilian fleet, although the owner represented to the Chilian 
 commander the fact, and that he was a r<eutra], and the property not available for 
 purposes of war. The governor also reports that a launch belonging to an American 
 steam tug-boat was captured and taken away by the Chilian vessels, although made 
 fast to the steamer and flying an Amerioan ensign. The flag was thrown into the sea 
 and the launch taken away, all of which I havo the honor to communicate, and am, 
 sir, very respectfully, your obedient servant, 
 
 S. C. MONTJOY, 
 United States Consul. 
 
 [Inclosure 2 in N/o. 105.) 
 
 Mr. Christiancy to Mr. Montjoy. 
 
 No. 36.] Legation of the United States, 
 
 Lima, Peru, January 14, 1880. 
 S. C. Montjoy, Esq., 
 
 United States Consul, Lambayeque : 
 
 Sir: Your letter of the 3d instant received. I had already been informed, by the 
 owners, of the destruction, by the Chilian fleet, of the pontoon of the American Oil 
 Company (known here as Meloy & Co.), and advised that a protest should be made 
 through our consul at Callao (as Meloy &, Co. reside here), and also that it would be 
 well to protest through you or the consular agent at Payta. 
 
 As to the destruction of American property at the Lobos Islands, and especially the de- 
 struction of the American tug-boat, I recommend also that a protest be made by the 
 captain or owner, through you. Not being accredited to, nor in correspondence with, 
 the Chilian Government, I cannot myself assume to enter an official protest. But I 
 advise you to give full information of the whole matter to Mr. Osborn, our minister at 
 Santiago, that he may call the attention of the Chilian Government to the facts. And 
 I will also seud him a copy of your letter. 
 I am, very truly, your friend, 
 
 I. P. CHRISTIANCY. 
 
318 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 llnclosure 3 in Ko. 105.] 
 
 Mr. Christiancy to Mr. Osborn. 
 
 No. 37.] Legation of the United States, 
 
 Lima, Fern, January 14, 1880. 
 Sir : I have the honor to inclose to you a copy of a letter from S. C. Mont joy, onr 
 consul at Lambayequo, in reference to depredations committed by the Chilian fleet 
 upon the property of American citizens at Talara and at Lobos de Afuera, that yon. 
 may bring the matter to the atteutiou of the Chilian Government. 
 I have the honor to subscribe myself, as ever, your friend, 
 
 I. P. CHRISTIANCY. 
 Hon. Thos. A. Osborn, 
 
 Envoy Extraordinary and Minister Plenipotentiary of the United Stales for Chili. 
 
 Xo 222. 
 
 D/r. Calderon to 3L\ LJvarts. 
 
 [Translation.] 
 
 Depaktjient op Foreigx Eelations and Worship, 
 
 Lima, January 14, 1880. (Eeceived February 9.) 
 
 One of the first acts of the new Government of Peru, which I have 
 the honor to represent in the department of foreign relations, was the 
 abolition of the decree, which, under the old regime, interdicted com- 
 merce with Chili. 
 
 This act furnishes evidence of the lofty spirit, and of the sentiments 
 of justice and propriety which influence its decisions, as well as of its 
 Arm purpose to diminish, to the utmost extent possible, the inconven- 
 iences and evils which a state of war necessarily involves. 
 
 The other belligerent does not appear to be actuated by the same mo- 
 tives, for, not content with the flagrant infractions of international law 
 committed by it in making war against Peru, which have met with 
 universal reprobation, it now claims that a mere notification of blockade 
 shall be considered equivalent to the establishment of a blockade in 
 those ports and inlets in which it doubtless thinks that it can thereby 
 do us greater injury. 
 
 Being quite unable to close the entrances to the principal points on 
 our extensive coast by a bona fide occupation with sufficient force, it 
 now openly attempts to establish a paper blockade in the Pacific, which 
 no nation has ever been able to maintain as legal, and which no first 
 class European power would now even dare to mention. 
 
 The right of neutrals to disregard such a blockade is evident, and to 
 tolerate it or to pay the slightest attention to it would be encouraging 
 a claim which is radically unsustainable, but which would now cause 
 a great public scandal if it were thought to be in anywise supported 
 by those nations whose interests it seriously prejudices. 
 
 As we owe to our friends an undisguised expression of the truth in 
 matters of such importance, I do not doubt that your excellency and 
 your government will regard this communication as an evidence of the 
 cordial feelings with which Peru maintains her relations with the United 
 States of North America. 
 
 It affords me the greatest pleasure, &c, 
 
 PEDEO JOSE CALDEEON. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 319 
 
 No. 223. 
 Mr. Calderon to Mr. Evarts. 
 [Translation.] 
 
 Department op Foreign Relations and Worship, 
 
 Lima, January 14, 1880. (Eeceived February 9.) 
 
 Your excellency is aware that the boundary question, which had been 
 twice settled, resulted in war between Bolivia and Chili, which latter 
 nation finally declared hostilities against Peru, because she had form- 
 ally expressed her determination to remain true to the treaty of alliance 
 which she had concluded with the former of the two republics above 
 named, although, at the same time, and in virtue of that treaty, she 
 endeavored to restore friendly relations between the two sisters, and 
 to preserve the equilibrium and peace of the continent. 
 
 Chili, proclaiming a revindication in which she constituted herself 
 a party and a judge at the same time, had already seized, by surprise 
 and by violence, the region of Autafagasta, which had been awarded 
 to Bolivia by two successive treaties. She next occupied the entire 
 Bolivian coast, and commenced acts of aggression against Peru, with- 
 out being restrained by any consideration of humanity or by the de- 
 fenseless condition of the towns on the coast, the law of nations, or re- 
 spect for the interests of neutrals. 
 
 Peru, being totally unprepared for a war which she had never ex- 
 pected, was forced to sustain an unequal and disastrous naval struggle, 
 in which her heroism will ever be a guarantee of the inevitable issue of 
 her glorious though unfortunate arms. 
 
 They were no less so in the contest on land, although a single battle, 
 the only one in which it can with propriety be said that real fighting 
 took place, although against very great odds, was sufficient to give 
 certain assurance of the final settlement, which will not be very long 
 delayed, of the terrible conflict into which this noble republic has been 
 provoked, notwithstanding its generous efforts and its honorable and 
 upright purposes. 
 
 Finally the department of Tarapaca, at the southern extremity of 
 the territory of Peru, has been occupied by the military forces of Chili, 
 and Peru will make a reply to that occupation in the only way that is 
 imperiously prescribed by her pride and by her honor. 
 
 In the mean time, however, Chili.being able to derive nothing from 
 this transitory fact outside of the sphere of the hostilities permitted by 
 the law of nations, doubly violates that law, by violating the sovereignty 
 of the republic, and by appropriating to herself what rightfully belongs 
 to Peru. She violates Peruvian sovereignty by imposing taxes upon 
 the saltpeter produced in that department, the excellent quality of which 
 is well known throughout the world ; and she unlawfully appropriates 
 Peruvian property, inasmuch as she takes what belongs to the treasury 
 of Peru, exporting and selling it in foreign markets. 
 
 Against such violations of her national majesty and such plundering 
 of her treasury, Peru is armed by the moral force of right, which force 
 she will use as she thinks proper, and by such material force as she 
 may be able to command, in order to wrest her property from the hands 
 of her enemy, or of those who assist that enemy in the work of spolia- 
 tion. And we are not now speaking of a contingent future, for it is 
 an actual fact that the saltpetre of Tarapaca, like that of the coast 
 
320 
 
 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 of Bolivia, is exported in neutral vessels, without whose aid Chili would 
 be unable to consummate her unlawful design. 
 
 The flag of a friendly nation cannot cover property taken by violence 
 from Peru, over which Peru will exercise her right of ownership with- 
 out any limit save that of the force of which she may be able to dis- 
 pose for this purpose. 
 
 The good faith of Peru, and her regard for her friends, lead her to 
 make this frank declaration, which I hasten to communicate to your 
 excellency in the name of the new government chosen by the republic, 
 and I take pleasure in offering your excellency the assurance, &c. 
 
 PEDRO JOSE CALDEEON. 
 
 No. 224. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 106. J Legation of the United States, 
 
 Lima, Peru, January 21, 1880. (Eeceived February 17.) 
 Sie : I have the honor to inclose translations of nine several decrees 
 
 of the dictatorial government of Peru. 
 
 # # # # * * * 
 
 I also call special attention to the circulars issued by the secretary of 
 foreign relations (Nos. and 7) to the representatives of friendly and 
 neutral nations in reference to the war, and the question of the right 
 of neutral vessels to ship, under the authority of Chili, nitrates from 
 the nitrate beds in those parts of Bolivia and Peru now in possession 
 of the Chilian forces. This is a peculiar question, and one upon which 
 I would like to receive and follow the views of the Department. 
 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 [Inclosnre 6 in No. 106 — Translation.] 
 
 Tbe following two circulars referring to the war have been addressed to the repre- 
 sentatives of friendly nations : 
 
 Circular.] Lima, January 14, 1880. 
 
 Your excellency is aware that a question of limits, though twice decided, finally 
 brought on war between Bolivia and Chili, which latter country finished by declaring 
 war against Pern, also, on account of her having formally expressed her iutention of 
 remaining faithful to the treaty of alliance adjusted with tbe former of the two coun- 
 tries, although at the same time, and in virtue ot that very treaty, she was straining 
 every effort to re-establish fraternal relations between the belligerents and preserve 
 the equilibrium and peace of the continent. 
 
 Chili, pretending to enforce au act of revindication in which she was herself both 
 judge and plaintiff, had already, in a treacherous and violent manner, seized hold of 
 the Anfofaga^ta region, which had been adjudged to belong to Bolivia by two succes- 
 sive treaties, and subsequently occupied the entire Bolivian coast and opened hostili- 
 ties on Peru without allowing herself to be detained in hnr course by any considera- 
 tion of humanity for defenseless towns, or out of respect for the rights conceded by 
 the laws of Dations, or even out of consideration for the interests ot neutral nations. 
 
 Peru, reposing in fatal confidence and totally unprepared for a war which she never 
 expected to be engaged in, was forced to sustain an unequal and disastrous naval cam- 
 paign, in which the heroism she displayed is a sufficient recompense for the final glo- 
 rious, but disastrous, result. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 321 
 
 Peru has likewise been similarly unfortunate on land, although one single day, the 
 only one on which strictly speaking it can be said that a battle was properly fought, 
 in spite of the superiority of the forces and elements opposed to her, was sufficient to 
 enable the final result, which will not be long' delayed, of the terrible duel to which 
 this noble republic has been provoked, in spice of her generous desires and frank and 
 honorable intentions, to be prophesied with the most complete certainty. 
 
 Finally, the department of Tarapaca, which forms the southern boundary of the 
 Peruvian territory, has been occupied by the Chilian army, and Peru will reply to this 
 act' in the only way which her honor and pride dictate. 
 
 Chili, however, in the mean time, whose actions with respect to the territory tem 1 
 porarily occupied by her, should be limited to the exercise of the hostilities permitted 
 by the law of nations, doubly violates it, attacking both the sovereignty aud property 
 Ot' tile republic. She arrogates the former to herself, imposing taxes on the nitrate 
 industry of the department in question, the importance of which is notorious thr ngh- 
 out the world, and she assails the latter, appropriating to her own uses the portion of 
 the nitrate riches belonging to the Peruvian tisc, exporting aud belling same in for- 
 eign markets. , 
 
 To these attacks on the dignity and property of the nation, Peru opposes the moral 
 force of justice, and will employ it, as may be thought most convenient, aided by the 
 material force at her disposition, to rescue her property from the hands of her enemy 
 or from those whoever may assist, her in her work of plunder. Aud this is not a mat- 
 ter of a possible contingency in i lie future ; for it is an actual fact that the saltpetre 
 of Tarapaca, as well as that of tlm Bolivian coast, is being exported in neutral ves- 
 sels, without the aid of which Cb.li would be powerless to carry out her criminal in- 
 tent. 
 
 The flag of friendly nations cam ot protect property of which Peru has been vio- 
 lently defiauded and over which sho will exercise her due rights as tar as her strength 
 enables her. 
 
 The good faith and considerations which Peru shows for her friends induce her to 
 make the foregoing frank declaration, which I have the honor of communicating to 
 your excellency on behalf of the new government which the republic now possesses. 
 
 Begging your excellency to accept, A. u., 
 
 PEDRO JOSE CALDERON. 
 
 [Inclosure 7 in No. 106. — Translation.! 
 
 Circular.] Lima, January 14, 1880. 
 
 One of the first acts of the new government of Peru, which I have the honor to 
 represent in the department of foreign affairs, was to anuul the decree issued by the 
 former government establishing a commercial interdiction with Chili. 
 
 This act proves the elevated spirit and the sentiments of justice and propriety 
 which preside over its every resolution, and testify to its firm intention of lessening, 
 as far as possible of reducing to the narrowest limits, the inconveniences and evils at- 
 tendant upon a state of war. 
 
 The enemy however does not appear to be animated with a like spirit, since not 
 content with the flagrant violations of international law it has been guilty of whilst 
 engaged in hostilities with Peru, and which have merited universal reprobation, 
 Chili now pretends that the mere notification of the blockade of such ports, the clos- 
 ing of which she donli'less thinks will cause us the greatest damage, is sufficient for 
 the efficaciousness of the blockade. 
 
 Being powerless to close the entrance to the principal ports on our extensive coast 
 by occupying said entrance with a sufficient force for that purpose, she is manifestly 
 striving to introduce into the Pacific a system of paper blockades, which can never 
 possibly be maintained as legitimate, and which none of the principal European pow- 
 ers would even think of at the present day. 
 
 The right of neutrals to consider such a blockade as null and void of effect is mani- 
 festly plain, and to tolerate it or show the slightest respect for it, would be to encour- 
 age a pietension radically unsustainable, and which would become a scandal to the 
 times we live in, were it to be supported in the slightest degree by those whom it most 
 prejudices. 
 
 As it is right that the true state of the case should be laid before our friends in a 
 matter of such weighty importance, I feel certain that your excellency and your gov- 
 ernment will look upon this communication as another proof of the cordial sentiments 
 with which Peru maintains her relations with . 
 
 I take this opportunity of assuring your excellency, &c, 
 
 PEDRO JOSE CALDERON. 
 
 S. Ex. 79 21 
 
322 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 225. 
 
 Mr. Ghristianey to Mr. Evarts. 
 
 No. 108.J Legation of the United States, 
 
 Lima, Peru, January 21, 1880. (Received February 17.) 
 
 Sir : Referring to my dispatch. No. 102, I have the honor to state 
 that absolutely no news of the progress of the war has since been re- 
 ceived (or at least made public) here since that dispatch, except that 
 the Chilian force landed at Ylo, as there mentioned, a few days after 
 that time returned to the coast and re-embarked. It was only a recon- 
 naissance in force. 
 
 We hear nothing definite of the revolution of Bolivia, except that 
 Daza is a fugitive, and the revolutionary government of Bolivia is 
 more enthusiastic in, support of the war than that of Daza. 
 
 As to the destruction of the guano works at Lobos de Afuera, the 
 Chilians did not establish a blockade there, :uid neutral vessels are again 
 landing there, as I am informed. 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 22C. 
 
 Mr. Evarts to Mr. Ghristianey. 
 
 [Telegram.] 
 
 Washington, January 24, 1880. 
 Christianct, Minister, Lima. 
 
 Time and manner of recognition left to your discretion. 
 
 EVARTS. 
 
 No. 227. 
 
 Mr. Evarts to Mr. Ghristianey. 
 
 No. 55.] Department op State, 
 
 Washington, January 26, 1880. 
 
 Sir : Tour dispatch No. 99, of the 31st ultimo, has been received. 
 It gives an account of a meeting of the diplomatic body at Lima, for 
 the purpose of considering the expediency of recognizing the govern- 
 ment of Pi6rola, the new governor of Peru. 
 
 Tour course on the occasion was dignified and judicious, and, with 
 your note to Mr. Calderon, the minister for foreign affairs, of the 30th 
 of December, is fully approved. Although that note correctly states 
 the principles which guide this government in the recognition of revo- 
 lutionary rulers in other countries, I am not aware of any circum- 
 stances attending the recent change of government in Peru, which call 
 for special reserve in recognizing Pi^rola. Inasmuch, however, as you 
 are on the spot, and therefore are best capable of judging of the probability 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 323 
 
 of the duration of Pierola's power and of his accountability to foreign 
 governments, the question of his official recognition is left to your dis- 
 cretion. The telegram of the 24th instant, transcribed below, was 
 forwarded to you accordingly. 
 I am, sir, &c, 
 
 WM. M. EVARTS. 
 
 No. 228. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 111.] Legation of the United States, 
 
 Lima, Peru, January 28, 1880. (Received February 25.) 
 Sir : I have the honor to inclose to you a copy of my letter of the 
 25th instant to 0. A. Nugent, esq., our consular agent at Arica; also a 
 copy and translation of the letter of Admiral Montero, in command of 
 the Peruvian forces at Arica, on the subject of the blockade of the port 
 of Mollendo by Chili, dated the 9th instant. 
 
 The whole substance of the reply of the consuls to the note of the 
 admiral appears in my letter, of which copy is inclosed. 
 
 I call special attention to the advice I have, in this letter, given to 
 our consular agent on the question of blockade, that I may be corrected 
 if in error at the earliest practicable moment. 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure 1 in No. 111.] 
 
 Mr. Christiancy to Mr. Nugent. 
 
 Legation of the United States, 
 
 Lima, Peru, January 26, 1880. 
 
 Sir : Your letter (No. 2) of the 14th instant received, inclosing a copy of the letter 
 of Admiral Montero, commander of the Peruvian forces at Arica, dated January 9, on 
 the subject of the blockade, and the reply of the consular corps thereto, informing the 
 admiral that the contents of his letter would be referred to the ministers of their re- 
 spective countries. 
 
 At this distance, with the uncertainty and irregularity of the mails, I can give you 
 no specific advice applicable to the precise state of facts which may exist at any mo- 
 ment, as that state of facts may be changing from day to day. In fact I am informed 
 here, through the British minister, that since the letter of Admiral Montero, another 
 vessel has been added to the Chilian blockade squadron in front of Arica, and another 
 to that blockading Mollendo. I can only lay down for your guidance some general 
 principles recognized and insisted upon by the Government of the United States, as 
 applicable to blockades, and leave you* to apply them to cases of American vessels en- 
 tering or seeking to enter the port claimed by Chilian authorities to be blockaded. 
 No nation has taken stronger ground or more persistently maintained it against mere 
 paper blockades. The American doctrine is that, to entitle a blockade to the recogni- 
 tion of neutrals, or in any manner to affect the rights of neutral vessels to enter or 
 depart from the port claimed to be blockaded, the blockade must be maintained by 
 the presence of such a force as to render the entrance or departnre of the neutral ves- 
 sel manifestly dangerous. The principal adopted by the treaty of Paris (of April 16, 
 1856), to which both Chili and Peru have become parties (upon this point), does not 
 differ very materially from the American doctrine, though it may seem to go even fur- 
 ther, aB it requires "that blockades, to be binding, must be effectual; that is to say, 
 maintained by a force sufficient in reality to prevent access to the coast of the enemy." 
 But whether this really goes further than the American rule we need not discuss as 
 
324 AFFAIRS IX CHILI, PESU, AND BOLIVIA. 
 
 you and I are to be governed in our official action by the latter, and nnder this, the 
 mere fact that a neutral vessel might slip in or ont unobserved, at night, or during a 
 fog, could not of itself be held to invalidate the blockade. And if the blockading 
 squadron be driven off the port by a storm, this will not invalidate it, if they return 
 to their post as soon as the weather will permit. But if they sire driven from the port 
 by the enemy or voluntarily leave it, for even a few days (possibly for a single day), 
 this terminates the blockade, and it cannot be re-established without giving, de novo, 
 a fair notice to neutrals. 
 
 A practical question of some importance may arise upon the coursi which I under- 
 stand has been quite nsnal with the Chilian blockading squadron, of withdrawing so 
 far from the port at night, and sometimes by day, that first, ves-els might innocently 
 enter without the kuuwledge that a blockade had existed there, and second, vessels 
 "which had been informed that the blockade had existed some time before, might, on 
 approaching the port to see whether it srill existed, and seeing no blockading vessels 
 and receiving no warning from them, might enter in good faith, believing that the 
 blockade had been abandoned. 
 
 In neither of these cases could such vessel be properly seized as a prize for a breach 
 of the blockade ; but should receive reasonable notice to depart, or not to land or re- 
 ceive cargo. And if this habit of leaving the port thus unguarded should continue 
 for any great length of time, I doubt whether all neutral nations would not be justified 
 in treating it as inefficient for any purpose, and absolutely null. Such intermittent 
 blockade must, in time, it seems to me, become intolerable to neutrals. 
 
 Should the blockadiug squadron attempt to seize or interfere with any American 
 vessel, in violation of any of the principles above laid down, my advice is that you 
 make a proper protest, and allow officers and owners of such vessels, through you, to 
 protest against such action. 
 I am, &c, 
 
 1. P. CHRISTIAXCY. 
 
 [Inclosure '2 in Xo. 111.— Translation.] 
 The Peruvian admiral to the consular body at Arica. 
 
 Arica, January 9, 1850. 
 
 Sib: I think it opportune to place under the knowledge of the honorable consular 
 corps residing in this department that some merchant vessels of neutrals have entered 
 and departeil freely the port of Mollendo, notwithstanding the men-of-war of the Re- 
 public of Chili, which announced the blockade, were cruising off the port mentioned. 
 Such has been the case with the steamer Bolivia of the English company on the 17th of 
 the same month ; nevertheless, two Chilian vessels, perhaps, were at sight, which is pub- 
 licly known. And as these cases are frequently and inevitably repeated, and especially 
 on the south coast of the republic, where the naval forces of Chili are simulating that 
 hostility which the law of nations recognizes as blockade and for the efficiency of which 
 invariable rules have been established, I think it my duty to call the attention of the 
 foreign consular body here to the subject, they having under their care the custody of 
 the interests of the citizens of their respective nations, in order to guard the rights 
 which they so worthily represent, and in obedience to the principles universally ac- 
 knowleged. Be pleased to consider seriously the tenor of this note, and appreciate 
 properly the question of the legality of the proceedings to the Chilian squadron ; as it is 
 seen that they cannot substantially sustaiu the effectual blockade in conformity to the 
 sound and incontrovertible doctrine of international law. S-neli blockade, although 
 claimed to have existed, is de facto relinquished for want of effectual and immediate 
 force to maintain it, and in virtue of the facts to which I have r,-f»rred. 
 
 With distinction aari consideration of esteem, it is grateful to :ue to subscribe my- 
 self, &c, 
 
 L. MONTERO. 
 
 To the Dean of the honorable consular corps residing in Tacna. 
 
 Xo. 229. 
 
 2Ir. Christiancy to Mr. Evarts. 
 
 No. 112.] Legation of the United States, 
 
 Lima, Peru, January 2S, 1880. (Eeceived February 2.5.) 
 Sir : I have the honor to inclose to you a copy of my letter of the 
 24th instant to Mr. Merriam, our consul at Iquique. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 325 
 
 I call attention to this letter, especially as regards granting clearances 
 to American vessels shipping nitrates from Iquique on account and 
 under authority of Chili. The circular of the secretary of foreign rela- 
 tions of Peru on this subject will be found in my dispatch No. 106, in- 
 cisures 6, 106, and 7, 106. 
 
 It does not seem to me that the right of our consul at Iquique, hold- 
 ing his exequatur from Peru, necessarily depends upon the merits of 
 the question of belligerent right to ship nitrates as between Peru and 
 Chili, nor that the question is necessarily the same as would arise upon 
 a clearance granted by an American consul in a Chilian port to a vessel 
 loaded with such nitrates. But if I am in error in the advice I have 
 giveu, I wish to be promptly corrected. 
 
 The question is to me a somewhat novel one, and I have to depend 
 upon the general principles which seem to me applicable to the circum- 
 stances. Fortunately, however, there is very little American shipping 
 on this coast. 
 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 [Iuclosure in No. 112. | 
 
 Mr. Chirialiancy to Mr. Merriam. 
 
 Legation of the United States, 
 
 Lima, Peru, January '24, 1880. 
 
 Sir : Your letter No. 49, of the 17th instant, is received. I- think your course in ex- 
 ercising your official functions with the full consent and approbation of the Chilian 
 authorities now in possession of Iquique and the surrounding country is strictly right 
 so long as your official acts shall in no measure he made to operate to the injury of or 
 in hostility to the rights of Peru, or to such as she claims and which are still in con- 
 test between her and Chili. But any official act which might aid either of the parties 
 to the ontest might be complained of by the other as a departure from the duties of 
 strict neutrality. 
 
 You are appointed only as a consul to Peru, and hold your exequatur from its gov- 
 ernment^ only, and, therefore, as it seems to me, you cannot, even with the assent of 
 the Chilian authorities, do any official act to which the assent of the Peruvian Gov- 
 ernment might not fairly be presumed. That assent may be presumed to the extent 
 of allowing you to protect American citizens and to exercise your ordinary functions 
 in reference to American seamen, and upon conflicts arising between the officers and 
 seamen of American merchant vessels, ami no objection would now be made to grant- 
 ing clearances to American vessels engaged in any other trade than that of shipping 
 salitres (excepting also contraband, of course). 
 
 But the question of granting clearances to American vessels which may load with 
 salitres at Iquique stands upon peculiar grounds. These saliters come from Peruvian 
 soil, which, tbough now in possession of Chili, is yet in dispute and subject to the 
 arbitrament of arms. Peru, in the circulars of her secretary of foreign relations, has 
 taken the ground that the rights of war, as the contest now stands, do not give Chili 
 the right to deprive the territory of this property and to transport and sell it on 
 Chilian account, and Pern claims that no title can thus be acquired. 
 
 Under these circumstances, for yju to grant clearances to vessels shipping this ni- 
 trate iu hostility to Peru and for the direct benefit of Chili, may, I am inclined to 
 think, be properly looked upon by Peru as an unfriendly act tending to aid her enemy 
 in the Drosecuton o f the war. I know that such is the view taken by the govern- 
 ment here, and as tbe shipping of this nitrate at Iquique must now be under the ex- 
 clusive authority of Chili, and you are not accredited to that country, I think the Peru- 
 vian Government would withdraw your exequatur should you grant clearances in such 
 ■cases. It is true that your refusal to grant snch clearances may not stop the injury 
 to Peru, because the Chilian authorities may authorize their own captain of the port 
 ■or other officer to give clearances, which would avail for what they were worth as the 
 acts of a government or authority de facto. 
 
 I shall lay the matter before our government and be guided by its instructions, but 
 in the mean time, until different instructions are received from our government, I think 
 the safest course for you is to act upon the advice above given. 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 
326 AFFAIRS IN CHILI, PEEU, AND BOLIVIA 
 
 No. 230. 
 
 Mr. Hvarts to Mr. Tracy. 
 
 Department of State, 
 
 Washington, January 31, 1880. 
 
 Sir : On the 28th instant I had the honor to hold a personal inter- 
 view with you, when you placed in my hands an office copy and trans- 
 lation of a letter from the new President of the Republic of Peru, 
 Don Nicholas de Pierola, to the President of the United States, notifying 
 his accession to the supreme magistracy of Peru. You then observed 
 that you desired to present the original of that letter, but before for- 
 warding it you expressed a wish to know Whether it would be received, 
 adding that you had been instructed by the government of President 
 Pierola to continue in the capacity of charg6 d'affaires, but without 
 new letters of credence. I then had the honor of replying that I 
 would lay the matter before the President, and at a subsequent inter- 
 view inform you of his conclusions upon the subject. 
 
 Upon consideration the President has decided to recognize the gov- 
 ernment established in Peru by His Excellency Don Nicolas de Pierola 
 and to receive the ceremonial letter of the latter, it being understood 
 by this government that the people of Peru were driven to the accept- 
 ance of a new government on a provisional basis, by the external 
 pressure of their affairs, and that the accession of General Pierola to 
 power was not accomplished by civil strife or factious insurrection. 
 
 I had the honor to communicate this decision to you, orally, in an 
 interview held yesterday, having previously received from your hands 
 the original letter of President Pierola for transmission to the Presi- 
 dent of the United States. LV now affords me pleasure to communi- 
 cate this decision to you in a more formal manner, and to express my 
 personal gratification at the continuance of the friendly relations which 
 have marked your intercourse with this department since you assumed 
 the responsible charge confided to you. 
 
 Observing that the President will doubtless reply at an early day to 
 the letter of President Pierola, and that his answer will be transmitted 
 through the usual channel of the United States diplomatic representa- 
 tive at Lima, I tender you, sir, the renewed assurance of my highest 
 consideration. 
 
 WM. M. EVAETS. 
 
 No. 231. 
 
 Mr. Evarts to Mr. Ghristiancy. 
 
 No. 57.] Department of State, 
 
 Washington, February 4, 1880. 
 Sir : I inclose herein a copy of my note to the charge" d'affaires of 
 Peru in the United States, of the 31st ultimo,* communicating to him 
 the information that the President had decided to recognize the gov- 
 ernment in Peru of His Excellency Don Nicolas de Pierola, &c. It is 
 presumed that you have already availed yourself of the discretion as 
 
 * For inclosure see document No. 230, ante. 
 
AFFAIRS IN CHILL, PERU, AND BOLIVIA. 327 
 
 to the recognition of that government given yon by No. 55; if not, you 
 will at once enter upon full relations with the established power. 
 Observing that no new credentials will be necessary, I am, &c, 
 
 WM. M. EVARTS. 
 
 No. 232. 
 Mr. Christiancy to Mr. Uvarts. 
 
 No. 115.] Legation op the United States, 
 
 Lima, Peru, February 10, 1880. (Eeceived March 9.) 
 
 Sir : I have the honor to acknowledge the receipt, on the 5th instant, 
 of your telegram of January 24 (by mail from Valparaiso), in reference 
 to the recognition of the present Government of Peru. 
 
 And I have the honor to state that in view of the facts that this 
 government had met with the universal concurrence and acquiescence 
 of the people of Peru, and that there was no pretense or claim in Peru 
 to any other government than that of Pi^rola as dictator, I could find 
 no principle of international law which would authorize me longer to 
 withhold a full recognition. I sent to the secretary of state for for- 
 eign affairs my letter of the 5th February, No. 25, of which I inclose a 
 copy. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure in Ko. 115.] 
 
 Mr. Christiancy to Senor Calderon, 
 
 No. 25.] Legation op the United States, 
 
 Lima, Peru, February 5, 1880. 
 Monsieur le Ministre : I have the honor to inform your excellency that I have this 
 day received a telegram from the Secretary of State of the United States of America, 
 dated the 24th ultimo, in answer to a dispatch of mine detailing the change of govern- 
 ment which rtsnlted in making His Execllencj Don Nicolas de Pierola Supreme Head 
 of the Government. By that telegram the time aud manner of recognition are left to 
 my discretion, and beiDg entirely satisfied that this change has met the cordial con- 
 currence of the people of Peru, and that within the principles defined in my note to 
 your excellency of the 30th December last, No. 22, this government is now entitled 
 to recognition by friendly nations, I take this early opportunity to communicate to 
 you and through you to the government its formal recognition by the United States 
 of America. 
 
 P.ease accept, &c., 
 
 I. P. CHRISTIANCY. 
 Eximo Sefior Don Pedro Jose Calderon, 
 
 Secretario de Belaciones Exterior es del Peru. 
 
 No. 233. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 117.] Legation op the United States, 
 
 Lima, Peru, February 11, 1880. (Received March 9.) 
 Sir : I have the honor to inclose to you a copy of my letter of Feb- 
 ruary 7 (No. 42) to J. W. Merriam, explaining to him the meaning of 
 my letters 34 and 39. 
 
328 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I should Lave sent this before the 1st February, but he had written 
 me that he expected to be here by the 1st instant. He called on the 
 7th, and I made the explanation verbally, but to avoid any mistake I 
 concluded to write this, that he might have it in writing, and put it on 
 file. 
 
 I am, &c. 
 
 I. P. CHRISTIANCY. 
 
 [In closure in Xo. 117.] 
 
 Mr. Christiana/ to Mr. Merriam. 
 
 No. 42.] Legation of tele United States, 
 
 Lima, Peru, February 7, 1880. 
 J. W. Merriam, Esq., 
 
 United States Consul at Iquique : 
 
 Sir : You will remember that I, this afternoon, called yonr attention to the fact that 
 on looking over my letters to yon, Nos. 34 and 39, I discovered that I had in those let- 
 ters used the term "clearance" in an enlarged and untechnical sense, as including all 
 the official acts of the consul necessary to the departure of an American vessel from 
 the port at which you were stationed, such as putting your name upon the clearance 
 given by the authorities of the port, and your certificate to the invoices, when I ought 
 more properly to have avoided the term "clearance" which has a technical meaning 
 and etriotly speaking is not granted by the cousul. 
 
 The whole context and my whole cause of reasoning shows that this was my mean- 
 ing, and I am glad to learn that yon have been led into no error by my careless use 
 of the word " clearance." As I told you I had intended to write you at the next mail 
 making this explanation. 
 
 I write this that you may put it on file as a written explanation of my two letters 
 referred to. 
 
 I am, very truly, your friend, 
 
 I. P. CHRISTIANCY. 
 
 No. 234. 
 
 Mr. Everts to Mr. Christiancy. 
 
 No. 58.] Department of State, 
 
 Washington, February 18, 1880. 
 Sir : I have to acknowledge the receipt of your Xo. 105, with the 
 copies of correspondence inclosed therein, relative to the destruction of 
 property of the American Oil Company at Talara, and of other Ameri- 
 can property at the Lobos Islands, by the fleet of Chili. 
 
 Tour action in the premises in transmitting the information to the 
 minister of the United States at Santiago, and the advice given in 
 your letter to Consul Montjoy, at Lambayeque, are approved. The 
 Department will at once comniunieate with Mr. Osborn, on the subject 
 of your dispatch. 
 I am, &c, 
 
 W3I. 31. EYABTS. 
 
 No. 235. 
 
 Mr. Evarts to Mr. Christiancy. 
 
 No. 63.] Department of State, 
 
 ^Yash^ngton, March 1, 1880. 
 Sir : Your dispatch, No. 106, of the 21st January last, has been re- 
 ceived. It is accompanied by translations of certain recent decrees of 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 329 
 
 the Peruvian Government and copies of circulars addressed by the min- 
 ister of foreign affairs of Peru to the representatives of friendly nations. 
 All these inclosures, with the exception of those which you number 6 
 and 7, relate to internal affairs of that country, and do not appear to 
 call for any special instructions. One of the papers referred to, how- 
 ever, assumes that Chili has seized those nitrates on the Peruvian 
 coast which Peru claims as her own, and is exporting their products in 
 neutral vessels, and that, therefore, Peruvian cruisers will not respect 
 a neutral flag detected in that business. 
 
 Although in the present subdued condition of the Peruvian navy 
 there may not be much risk of capture of neutral vessels by the Peru- 
 vian men of war, it is proper that you should remind that government 
 of the eighteenth article of its treaty of 1870 with the United States, 
 which expressly stipulates that free ships shall give freedom to goods, 
 and that everything shall be deemed free which shall be found on board 
 the vessels belonging to citizens of either of the contracting parties, 
 although the whole lading or a part thereof should belong to the ene- 
 mies of either, articles contraband of war always excepted. It seems 
 clear, therefore, that if a Peruvian cruiser should capture an American 
 vessel whose cargo, in whole or in part, should consist of the nitrate,re- 
 ferred to, the treaty would be violated in a case for which it was spe- 
 cially intended to provide. For such an act that government would 
 certainly he held accountable. It is hoped, therefore, that that gov- 
 ernment, as a proof of its friendly disposition toward that of the United 
 States, and of its desire to observe in good faith its formal treaty stipu- 
 lations, will either so modify the circular referred to or will give such 
 orders as may prevent an act of which we should have such just cause 
 to complain. 
 
 I have received copies of the two circulars through the charge 
 d'affaires of Peru in Washington, and have prepared replies thereto, 
 which I inclose. You will please retain copies of the same on your 
 files, and deliver the originals. 
 I am, sir, &c, 
 
 WM. M. EVAETS. 
 
 No. 236. 
 
 Mr. Hvarts to Senor Galderon. 
 
 Department op State, 
 Washington, March 1, 1880. 
 Sir : I have received, through Mr. Jos6 Carlos Tracy, the charge" 
 d'affaires accredited to this government, your excellency's note of Jan- 
 uary 14 last, complaining that nitrate from that part of Peru which is 
 occupied by the military forces of Chili is shipped thence in neutral 
 vessels, and claiming the right to detain or capture such vessels on the 
 high seas. 
 
 In reply, I have the honor to acquaint your excellency that I have 
 received a copy of the same paper from Mr. Christiancy, the minister of 
 the United States at Lima, and I have instructed him upon the subject. 
 He will, doubtless, in due time, make known to your excellency the 
 views therein expressed, which, therefore, I will not now repeat. 
 I avail, &c, 
 
 WM. M. EVAETS. 
 
330 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 237. 
 
 Mr. JEvarts to Senor Calderon. 
 
 Departiient of State, 
 Washington, March 1, 1880. 
 
 Sir: I have received, through Mr. Tracy, the note of your excellency 
 of the 14th of January last, which represents that the prohibition 
 against intercourse with Chili, which had been decreed by the late ad- 
 ministration of Peru, had been repealed. Your excellency also repre- 
 sents that the blockade declared by Chili of certain ports and inlets of 
 the territories of her adversaries, is inefficient. 
 
 In reply, I have the honor to state that hitherto this Department has 
 not received from any other quarter similar information or any com- 
 plaint upon that subject. If, however, the fact should be as your ex- 
 cellency represents, it will probably enable those interested in a resump- 
 tion of the intercourse between Peru and Chili to avail themselves of 
 the opening made for them by the repeal of the prohibitory decree to 
 which your excellency adverts. 
 
 The views of this government on the subject of blockade are, it is pre- 
 sumed, well known to the Government of Chili. If, therefore, the 
 cruisers of that government shall capture or detain a vessel of the 
 United States for having, in the absence of a force competent to pre- 
 vent it, entered a port or inlet of her enemies, whieh had been de- 
 clared in a state of blockade, reparation for that act will be required. 
 I avail, &c, 
 
 M. M. EVAETS. 
 
 No. 2.°.S. 
 
 Mr. Erarts to Mr. Christiancy. 
 
 No. 64.] Department op State, 
 
 Washington, March 1, 1880. 
 Sir : I have received your No. Ill, in which you transmit a copy of 
 your letter of January 26 last, to Mr. Nugent, consular agent of the 
 United States at Arica, in reference to the blockade of Mollendo, and 
 a copy and translation of a letter of Admiral Montero to the dean of the 
 consular corps, residing in his department, and in reply desire to ap- 
 prove the tenor of your communication to Mr. Nugent. You will, of 
 course, pay no attention to any manifesto in regard to the subject of 
 your dispatch, unless addressed directly to yourself as the diplomatic 
 representative of the United States. 
 I am, sir, &c, 
 
 WM. M. EVAETS. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 331 
 
 No. 239. 
 
 Mr. Evarts to Mr. Christiancy. 
 
 No. 65.] Department of State, 
 
 Washington, March 2, 1880. 
 Sir : Your dispatch No. 112, of the 28th January last, has been re- 
 ceived. It relates to the authority of the consul of the United States 
 at Iquique to grant clearances to American vessels. Your letter to him 
 upon the subject is in general approved. No consul, pursuant to our 
 law or regulations, has the right to grant a clearance to any American 
 vessel, even if his post is at a port conquered and possessed by the en- 
 emy of the country from whose government he may have received his 
 exequatur. It is the exclusive province of the belligerent authority for 
 the time being — civil, military, or naval — to grant such clearances, and 
 the consul, as is required in time of peace, should not deliver the ves- 
 sel's papers until the clearance shallhave been presented to him by the 
 master. The consul's course is not to be governed or influenced by the 
 components of the cargo of the vessel. If these, according to the ex- 
 isting authority, may lawfully be exported, the consul cannot properly 
 gainsay that opinion. It is natural that Peru should be incensed at the 
 exportation of nitrate for the benefit and account of her adversary. It 
 is to be regretted, however, that she should allow her resentment to 
 lead her to claim a belligerent right not acknowledged by any authority r 
 that of capturing on the high seas vessels of a neutral for having on 
 board a cargo from a place which she owned before the war. In this 
 case, however, her title to it was annulled, or at least suspended, by the 
 armed occupation by Chili of the region whence the article was taken. 
 The attempt of Peru, therefore, to avenge upon neutrals her want of 
 good fortune in the contest will not, it is to be feared, add to her repu- 
 tation for magnanimity or regard to public law, and certainly will not 
 be acquiesced in by the governments of neutrals, whose interests may 
 thereby be affected. 
 I am, &c, 
 
 WM. M. EVAETS. 
 
 No. 240. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 123.] , Legation of the United States, 
 
 Lima, Peru, March 3, 1880. (Received March 27.) 
 
 Sir : In the absence of any important news, and for the purpose of 
 enabling you to judge something of the nature of the dictatorial gov- 
 ernment here, I inclose you the following translations of decrees : 
 
 1st. Of a decree of the 23d February, annulling the contract purport- 
 ing to have been made by Eosas and Goyeneche (commissioners sent 
 to Europe by the Prado government), and sequestering the property of 
 said commissioners. 
 
 2d. A decree in reference to the letting or leasing of church property, 
 and that of charitable institutions. 
 
 3d. A decree requiring the publishers of newspapers, when such 
 papers have published articles attacking or reflecting upon individuals,. 
 
332 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 to allow to such indi viduals double the space in the same paper for a reply, 
 without charge, &c. 
 
 4th. In relation to the prosecution and imprisonment of Don Jose" 
 Maria Quimper, minister of finance, under the late government, for 
 improperly issuing and certifying a decree not signed by the late Presi- 
 dent. 
 
 I call especial attention to the above decree (3-123), which seems to be 
 founded upon a strong appreciation of fairness and justice, and calcu- 
 lated to put some restraint upon the license of the press in attacking 
 individuals or private character. It is quite possible that a similar 
 principle might be generally adopted with advantage in other countries 
 besides Peru. 
 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 [Incloaure 1 in So. 123.] 
 Official decrees. 
 
 THE GOYEXECHE-ROSAS CONTRACT. 
 
 We supply below a translation of the decree or resolution of the government annull- 
 ing the guano and nitrate contract concluded in Paris on the 7th ultimo, by Messrs. 
 Rosas and Goyeneche, with the Credit Industriel Company: 
 
 Lima, February 23, 1880. 
 
 In view of the official communications dated the 16th of January last, addressed by 
 the ex- fiscal commissioners, Don Juan Marciauo de Goyeneche y Gamio and Don Fran- 
 cisco Rosas, to the secretary of state for finance. 
 
 In view of the two contracts therein referred to, bearing date the 7th of the same 
 month, with the documents accompanying them. 
 
 In view of the document containing the decision of commissioners, Goyeneche and 
 Rosas, annulling the guano consignment contract celebrated in 1876, with the cession- 
 aries of the Peruvian Guano Company (Limited). 
 
 And considering — 
 
 Firstly. That the mere fact of the political change which took place in Peru on the 
 23d of December last, once known in Europe, as it was since the 29th of the same 
 month, was equivalent to the suspension of the plenary powers with which said com- 
 missioners were invested. 
 
 Secondly. That for greater precaution the government transmitted express orders to 
 them not to celebrate any contract not ad referendum. 
 
 Thirdly. That, although the commissioners allege that they were unable to decipher 
 the telegraphic dispatch which contained that order, the latter was not only known by 
 many in Paris and by the commissioners themselves, but, even were this not so, the 
 fact of their having been unable to decipher the telegram should, of itself, have been 
 sufficient to induce them to refrain from entering into any contract, at least one of 
 definite character. 
 
 Fourthly. That the contract celebrated by them is in direct opposition to the law of 
 authorization of the 13th of October, 1879, inserted in the respective plenary powers, 
 and that, besides, said coutract pledges the nitrate of Tarapaca in virtue of a mere 
 government authorization which the executive power of that period had no authority 
 to issue nor bind the state by. 
 
 Fifthly. That on entirely their own responsibility they have declared the existing 
 contract with the Peruvian Guano Company, Limited, rescinded, which only the Peru- 
 vian tribunals are authorzied to do, certainly not the executive power, and still less 
 its commissioners. 
 
 Sixthly. That it is highly necessary to strip the contracts in question of the ap- 
 pearance of validity with which their authors have striven to invest them, going so far 
 ■even as to make au international notification of au unusual and unauthorized nature, 
 the right being reserved to examine them carefully in order to estimate their conveni- 
 ence or inconvenience with regard to the state. 
 
AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 333 
 
 Seventhly. That the parties who have made this contract with Goyeneche ami Rosas 
 cannot profess an ignorance which might redeem the contract for their own part, in- 
 asmuch as the stipulations of said contract are in opposition to the express tenor of 
 the plenary powers of the Peruvian commissioners, without exhibiting which the con- 
 tract could not have been drawn up. 
 
 Eighthly. That the latter have consequently been guilty ot abusing the high confi- 
 dence placed in them and of disobeying the orders of the government in a matter of 
 the greatest and most transcendental importance, the enormity of which is aggravated 
 in consideration of the present state of affairs in the Repnb.ic. 
 
 Ninthly. That it' is necessary to take precautions that the fiscal interests may not 
 be prejudiced or in any way affected by such abuse and disobedience. 
 
 It is resolved — 
 
 1; irst. That the commissioners in question be submitted for trial before the respective 
 courts. 
 
 Secondly. That from this date and without further notification, the property rights 
 and actions of said commissioners be declared subject to fiscal responsibility and em- 
 bargoed. 
 
 Thirdly. That the Banco Garantizador de Valores be appointed depositary for said 
 property in Lima, and the Banco de Arequipa, in the city of the same name, which de- 
 positaries will pay the same interest on the sums they receive as they do on sight 
 deposits. 
 
 Fourthly. That those who make the contracts with the parties whose property has 
 been thns laid under embargo, or who deliver moneys to them in place of contracting 
 or handing such moneys to the depositaries, will be directly responsible for the valne 
 of such contracts or delivery of such moneys, and will also suffer the penalty which 
 they incur for infringing this decree. 
 
 Fifthly. That the two contracts in question be declared null and void of all effect 
 and be looked upon as mere proposals. 
 
 Sixthly. That said contracts, with all the documents referred to in them, be pub- 
 lished and submitted to the council of state in order that the latter may give its con- 
 sultative opinion on the same, so that the necessary resolution be issued. 
 
 Let it be published, &c. 
 
 Rubric of his excellency. 
 
 BARlNAGO. 
 
 [Inctosure 2 in No. 123.1 
 CHURCH PROPERTY. 
 
 NicolXs de Pierola, Supreme Head of the Republic : 
 
 Considering — 
 
 First. That it is necessary to put a stop to the undue speculation of which the prop- 
 erty belonging to the church and to the public-benefit institutions has been the object, 
 by means of contracts prejudicial to their revenues, and which divert them from the 
 purposes to which they are destined, to the undue advantage of the administrators and 
 contractors. 
 
 Secondly. That the government proposes to adopt measures later on with regard to 
 the property in question, which, while they will help the treasury, may better serve 
 its object. 
 
 I decree : 
 
 It is absolutely prohibited to make any emphyteutic contract in connection with 
 ecclesiastical property or that of any institution whatsoever of worship or public 
 benefit, and alt other deeds of lease of such property will remain null unless approved 
 by the government. 
 
 The secretary of state for foreign affairs and worship is charged with the punctual 
 observance of this decree, and with its publication and circulation. 
 
 Given in the palace in Lima, this 19th day of February, 1880. 
 
 N. de PlfiROLA. 
 Pedro Jose Calderon. 
 
 Responsible for translation. 
 
 J. LAWTON. 
 
334 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosnre 3 in No. 123.— Translation.] 
 THE GOVERNMENT AND THF. PRESS. 
 
 The following decree has been issued : 
 
 Nicolas de Pierola, Supreme Head of the Republic : 
 
 Considering — 
 
 First. That the practice of occupying the press with purely personal matters neither 
 serves any purpose nor is an efficacious guarantee for the rights attacked outside of 
 the papers, but is rather calculated to damage the reputation and good name of the 
 person so occupying it. 
 
 Secondly. That consequently every person attacked through the medium of the press 
 should be supplied with the means of defending himself in proportion to the severity 
 of the attack made npon him. 
 
 Thirdly. That this is the more j ust, considering that not every person who is attacked 
 through the medium of the press is able to pay for defending himself, and even were 
 this not so, it is not right to abuse the liberty of the press and provoke a person to 
 spend, money in defending himself. 
 
 Fourthly. That the owner of the printing establishment, by reason of which such at- 
 tack is made, also lends his co-operation to the practicing of the kind of abuses which 
 this decree is intended to remedy. 
 
 I decree : 
 
 Article 1. Every victim of defamation, invective, or ridicule, and in general every 
 citizen whose reputation is in any way damaged through the medium of the press has 
 the right, in order to vindicate himself, to occupy gratis in the paper in which he is 
 attacked double the space which the article occupied that attacked his reputation. 
 
 Article 2. Should the attack not have been made through the medium of a paper, 
 but in a book, pamphlet, or fly-sheet, &c, the obligation of publishing gratis the vin- 
 dication will fall npon the owner of the printing establishment where the attack was 
 printed ; whenever the party attacked may wish to make use of his right, double the 
 amount of matter in the book, pamphlet, or fly-sheet being printed, or the owner of 
 such printing establishment shall pay the cost of the offended person's defense in any 
 paper and place which the latter may select should he prefer to use such means of de- 
 fense. 
 
 Art. 3. If the attack be made in a paper, the editor of such paper will be under the 
 obligation of inserting the vindication in preference to any other matter, with the ex- 
 ception of the official publications under penalty of paying, if he delay in doing so, a fine 
 of from ten to fifty pounds sterling to the offended party, which will be collected by 
 the political authorities, and he shall also publish the article in which the latter de- 
 fends himself. The same applies to the case pointed out in article 2. 
 
 What is ordered in this decree does not impede the offended party taking criminal 
 action before the respective court for the punishment of the delinquent, if he be proved 
 guilty in accordance with the law. 
 
 The secretary of state for justice and instruction is intrusted with the publication 
 and circulation of this decree. 
 
 Given in the palace of government in Lima, this 21st day of February, 1880. 
 
 N. de PIEROLA. 
 
 Frederico Panizo. 
 
 [Inclosnre 4 in No. 123. — Translation.] 
 IMPRISONMENT OP DOCTOR QUIMPER, LATE MINISTER OF FINANCE. 
 
 Lima, February 23, 1880. 
 
 In view of the documents annexed to the official communication addressed to the 
 secretary of finance by ex-Fiscal Commissioners Don Juan M. de Goyeneche and Don 
 Francisco Rosas, dated the 16th ultimo, amongst which is an official note forwarded 
 to them on the 26th of November last by the ex-minister of finance and commerce, 
 Don Jos6 Maria Quimper. * 
 
 In view of the original of said note, the autograph copy of which exists in the copy- 
 book of that ministry. 
 
 In view, finally, of the supposed supreme decree of the same date, authorizing said 
 fiscal commissioners to pledge the nitrate of Tarapaca in the arrangements which 
 they might enter into with the holders of Peruvian bonds and in the contracts which 
 they might celebrate, the original of which document exists in the same office. 
 And inasmuch as it appears — 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 335 
 
 First. That the said decree bears no other signature than that of ex-Minister Quim- 
 per and consequently the then head of the state had no part in that most important 
 resolution. 
 
 Secondly. That notwithstanding this in the official communication forwarded by the 
 ex-minister he falsely affirms that it bore the rubric of his excellency, which consti- 
 tutes the crime of forgery, for which the penal code provides. 
 
 Thirdly. That even had the decree in qaestion been issued and signed by the head 
 of the state the responsibility of the latter would not cover the minister's responsi- 
 bility who thus disposed of national property without any authorization whatsoever, 
 an offense aggravated by the serious state of affairs prevailing in the republic. 
 
 Fourthly. That in view of such deeds it is indispensable not only to hold the author 
 of them criminally responsible but to take the necessary precautions in order that the 
 fiscal interests at stake may not be prejudiced. 
 
 It is resolved : 
 
 First. That Don Jose' Maria Quimper, ex-minister of finance and commerce, be sub- 
 mitted for trial and apprehended in order that he may be placed at the disposal of the 
 proper court. 
 
 Secondly. That the property rights and actions belonging to the said Don Jos6 Maria 
 Quimper be declared subject to fiscal responsibility and be embargoed. 
 
 Thirdly. That the Banco Garantizador de Valores be appointed depository for said 
 property and its products, which bank will pay the same interest on the sums of money 
 it receives as it does on sight deposits. 
 
 Fourthly. That those who make contracts with the person whose property is embar- 
 goed, or deliver moneys to him, in place of contracting or delivering such moneys to 
 the depository, will be held directly responsible for the value of any such contracts or 
 delivery of moneys, and will also suffer the penalty which they incur for violating this 
 decree. 
 
 Let it be published, &c. 
 
 Rubric of his excellency. 
 
 BARINAGA. 
 
 No. 241. 
 
 Mr. Tracy to Mr. JEvarts. 
 
 Legation of Peru in the United States, 
 New York, March 9, 1880. (Received March 11.) 
 
 Sm : Not long since the newspapers of this city published a cable re- 
 port purporting to have been received, via England, from Buenos Ayres, 
 announcing the rupture of the alliance between the Republics of Bolivia 
 and Peru. Emanating, as it evidently did, from unfriendly sources, 1 
 did not deem the report entitled to any credit, but I did not feel au- 
 thorized to deny it simply because I could not believe it. 
 
 In the inclosed copy of the bulletin, of 11th February last, of El 
 Peruano, the official organ of the Government of Peru, your excellency 
 will note that General Sarciso Campero, having been proclaimed Pro- 
 visional President of Bolivia, by the most important departments of the 
 republic, entered Oruro on the 19th of January last, and assumed con- 
 trol of the affairs of the nation ; that his authority had been recognized 
 by the commission (junta) in charge of the government at La Paz ; 
 and that all fears of any civil strife in that country had disappeared, 
 your excellency will likewise observe that at the public meetings held 
 in various places on account of the recent political changes, not only 
 was the alliance between Bolivia and Peru ratified, but many of them 
 declared in favor of a Peru-Bolivian confederation. 
 
 I venture to call your excellency's attention to this, in order that if the 
 before men tioned newspaper report should have been seen by you, you may 
 understand there was no other foundation for it than the hope of our 
 enemies that they had finally succeeded in the efforts they have un- 
 
336 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 doubtedly been making for many months to induce Bolivia to prove 
 false to Peru, but which efforts have happily not been successful. 
 
 The undersigned avails himself of this occasion to renew to his excel- 
 lency the Secretary of State, the assurance of his high esteem and most 
 distinguished consideration. 
 
 JOSE CAELOS TRACT. 
 
 [Extract from bulletin of El Peruano of February 11, 1880.— Translation] 
 
 General D. Narciso Campero, baviug been proclaimed Provisional President of Bo- 
 livia by the most important departments of the said republic, entered Oruro on the 
 19th of January, with a portion of the division under his command, and issued a de- 
 cree assuming the chief command of the nation. 
 
 The governmental junta of La Paz has recognized the authority of General Cam- 
 pero, and all fear of civil discord in our sister and allied' republic of Bolivia has dis- 
 appeared. 
 
 Colonel Elodora Camacho will continue as commanding general of the Bolivian 
 army stationed at Tacna. 
 
 It is said that General Daza has desisted from all claim to the chief magistracy, and 
 that he has determined to remain at Arequipa with his family. 
 
 The instruments signed by the towns, in conHection with the political events to 
 which we have referred, not only ratify the alliance which unites Bolivia with Peru 
 but a Peruvian-Bolivian confederacy is therein advocated. 
 
 The hopes, therefore, that were entertained by the Chilian press that a rupture 
 would soon occur in the alliance of the two nations which are now marching unitedly 
 against that republic iu defense of their dearest and most fundamental rights, have 
 I>een frustrated. 
 
 No. 242. 
 Mr. Evarts to Mr. Christiancy. 
 
 No. 69.] Washington, March 10. 
 
 Sir : I have to acknowledge the receipt of your No. 115, and to ap- 
 prove the action taken by yon as detailed therein, relative to the rec- 
 ognition of the new Government of Peru. 
 
 Referring to instruction No. 57, communicating copy of correspond- 
 ence with Mr. Tracy on this subject, 
 I am, &c, 
 
 W1I. M. EVARTS. 
 
 No. 243. 
 
 Mr. Christiancy to Mr. Erarts. 
 
 No. 133.] Legation of the United States, 
 
 Lima, Peru, March 17, 1880. (Received April 10.) 
 
 Sir : I have the honor to inclose to you a slip from the South Pa- 
 cific Times of yesterday, stating all the reliable information we yet 
 have of the operations of two Chilian vessels in the north, though we 
 have rumors of somewhat similar operations at other ports, and the 
 probability of their attacking Payta in a similar manner. 
 
AFFAIRS IN CHILI, PERU, ^AND BOLIVIA. 337 
 
 I will further say that last week an armed steam transport, the Tal- 
 isman, was sent by the Peruvian Government from Callao south, with 
 some two hundred military officers to re-enforce the army of the south 
 at Arica, with several thousand stands of arms, with ammunition, pro- 
 visions, and clothing. They landed the men and cargo at Quilca, some 
 forty miles by the road from Yslay, whence they will have to move by 
 land to Arica, unless they find the interior, like the coast from Yslay 
 south, in possession of the Chilians, in which case they will probably 
 join the Peruvian forces or some of the Bolivians further in the inte- 
 rior and in rear of the Chilians, say, at Arequipa or Moquegua. 
 
 The Talisman returned safely to Callao this morning. 
 I have, &c, 
 
 I. P. CHKISTIANCY. 
 
 Ko. 244. 
 
 Mr. Oalderon to Mr. Tracy. 
 
 [Translation.] 
 
 Department of Foreign Affairs and Worship, 
 
 Lima, March 17, 1880. 
 
 Sefior Don Jose Carlos Tracy, 
 
 Charge (V Affaires of Peru in the United States of Worth America : 
 
 Chili advances more and more in the road of illegal hostilities and 
 her own dishonor. 
 
 In my circular of January 14, to friendly powers, I have already 
 denounced and condemned the excesses against the sovereignty and 
 property of Peru, committed until then with manifest abuse of the 
 military occupation of Tarapaca, and all with the sole idea of carrying 
 into effect her purpose of despoiling Peru of the rich products of that 
 portion of the republic. 
 
 Now, as you will see in the inclosed bulletin, by the two proclama- 
 tions published in Iqnique on the 133d and 25th of February last, Chili 
 has resolved to grasp from the hands of the nitrate manufacturers all 
 that which, according to their respective contracts, should" be exported 
 and sold as belonging to the Peruvian exchequer, in order to export 
 and sell it on account of the Chilian exchequer, as if it were her own 
 property ; and on the pretext of an imaginary permission solicited by 
 foreign holders of Peruvian bonds, has authorized the shipment of 
 guano from our deposits which she declares occupied by her troops, 
 notwithstanding these are insufficient for a real and permanent occu- 
 pation of said deposits, or even a part of them, and which are not even 
 designated in the decree. 
 
 Although this assumes the perfect right of said bondholders to pay 
 themselves- their dues by these means, the license granted them is 
 worth froai twenty to thirty shillings per ton, a manifest defraudation 
 and the sole purpose of the concession, and everything leads to the 
 belief that the presentation of this petition was procured by secret 
 dealings and actual collusion to obtain the wealth of Peru and divide 
 it among those who imagine that by this fraudulent arrangement they 
 have found an easy though disgraceful way of obtaining an object 
 which they will find it difficult to reconcile to their own consciences. 
 S. Ex. 79 21! 
 
338 A.FFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Against these acts, incited by a devouring thirst for the property of 
 others, and by her great need of resources wherewith to continue this 
 unjust war, the savage nature of which is daily becoming more and 
 more marked, the Peruvian Government has been forced to make the 
 declarations contained in the decrees of the loth instant, which are 
 to be found in the aforesaid bulletin. 
 
 You will also find therein the loyal and frank declaration of the Sec- 
 retary of finance, dated the 27th of January, in which he fully testi- 
 fies all that 'has been done by the new government with regard to its 
 finances abroad, consulting the well-known interests of its creditors, 
 even in spite of the inevitable demands of the war. 
 
 The dignity of Peru, her self-respect, the care of her interests, and 
 the intelligent good faith with which she must carry out her sacred 
 engagements of her credit, have prescribed tbe line of conduct revealed 
 by the documents to which I have referred. 
 
 Provoked into a war which we never could have looked upon, on our 
 part, save as a great continental necessity, and as a duel of honor, we 
 now find ourselves before an enemy who does not wage the battle on 
 this ground, and who, insensible to the noble calls of justice and honor, 
 disregarding the most obvious principles of the law of nations, of hu- 
 manity and of civilization, converts an international struggle into treach- 
 erous assaults on defenseless persons, pillage, war without quarter, and 
 unlimited destruction. 
 
 Against this frenzy, which makes Chili forget even what she owes to 
 herself as a Christian republic, Peru offers the manly perseverance 
 necessary for the vindication of her rights, and the reparation of the 
 damages received in consequence of this scandalous abuse of power. 
 
 Meanwhile, she cannot but consider as accomplices of her enemy all 
 those who, without any possible excuse, under the protection of a neutral 
 flag, co-operate in the depredation of her wealth, and help to increase 
 the resources with which Chili is outraging and destroying all that 
 which the community of civilized nations holds as respectable and 
 sacred. 
 
 She will, therefore, treat as enemies all such co-operators, who having 
 of their own free will violated the neutrality which, for their own pro- 
 tection, they should have respected, lose, ipso facto, all right to any pro- 
 tection, by taking part in an act of usurpation and embezzlement which 
 nothing can justify, inasmuch as during the present war Chili has not 
 made any special claim or demand against Peru, either before or since 
 the declaration of war. Chili declared and makes war against Peru 
 simply because she is the ally of Bolivia. This is the sole cause of her 
 hostilities. All that does not tend to weaken the forces of the republic, 
 or to destroy, when absolutely necessary, any materials by which injury 
 might be occasioned to our foe, is iniquitous and contrary to universal 
 morality and the law of nations, and warrants reprisals not exceeding 
 that measure which should be observed by a nation that respects itself 
 and is conscious of its imprescriptible duties. 
 
 You will please read this dispatch and the inclosed bulletin to the 
 chief of the foreign office of that government, and furnish him with 
 copies of both, should he so desire. 
 
 God keep you many vears. 
 
 PEDRO JOSE CALDEEO^. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 339 
 
 Treasury Department, 
 
 Lima, January tilt, 1880. 
 To the Financial Agent of Peru in Europe: 
 
 Sir : In a former letter I spoke to you of an exposition I would make about the mo- 
 tives that have influenced the government in its first steps with reference to the 
 finances, and particularly to the foreign credit of Peru ; and by especial request of his 
 •excellency, the supreme chief of the republic, I now comply with this duty. 
 
 Peru is at present undergoing a very difficult trial, from which she will undoubtedly 
 reap two great benefits, her regeneration at home and proving to the world her ele- 
 ments of power and strength ; although her difficulties and complications are now very 
 great, she mnst nevertheless conquer them to attain this object. 
 
 However painful it may be, yet we must inevitably look back on the last ten years 
 in order to understand better the difficulties and complications in which we are now 
 placed. 
 
 Exaggerations of prosperity, against which proved useless all the eiforts of the pres- 
 ent President of the republic, then minister of finance in 1872, brought about the in- 
 itiation of the new foreign loan of the following year, which occasioned his separation 
 from the government, and was the starting point of the indefensible financial situation 
 through which the republic has ever since had to struggle. 
 
 That loan, most imprudent in itself, since it was to absorb in its own service the 
 greater part of the income of the nation, had scarcely commenced at the inauguration 
 ■of the new government of that year. That government not only did not annul it, as 
 it could and ought to have done, but the most unfortunate manner in which it was 
 ■carried out in Europe, emitting its obligations at truly ruinous rates, decided the dis- 
 aster. And this fact, together with the series of economical and political errors of those 
 four years, brought on the suspension of payments abroad, and misery and ruin at 
 home. 
 
 The succeeding government did not remedy the evil. Following the same path 
 which had been condemned by the whole country, protesting against it even under 
 arms on several occasions, it only succeeded in widening the breach that had already 
 been opened. 
 
 A terrible blow was dealt to the flourishing saltpeter industry, under pretext of form- 
 ing a new financial resource, thereby ruining the manufactures and the public treas- 
 ury, depriving the former of their nitrate, and creating for the latter an enormous 
 debt of nearly 20,000,000 of soles. 
 
 Our principal" income, the guano, became, by virtue of the contracts celebrated since 
 1874, reduced to an incredibly small amount. Coin disappeared entirely from our 
 market, being replaced by the greatest of economical calamities, the paper money of 
 forced currency. The internal consolidated debt increased immensely ; the floating 
 ■debt appeared ; and even the servants of the state were frequently without pay. 
 
 Such a sad situation, together with other grave symptoms of administrative aud po- 
 litical disorder, encouraged Chili, covetous of her neighbor's riches, to appropriate the 
 Bolivian coast, convinced that the powerlessness to which Peru had been reduced 
 would prevent her interfering in such a culpable enterprise. 
 
 The Chilians could not have chosen a better opportunity, knowing that the treas- 
 ury of Peru was empty, and that she was completely unprepared on land as well as at 
 sea ; thus our republic found itself engaged in a war, that in other circumstances Chili 
 would never have dared to provoke. 
 
 Notwithstanding this, the natural advantages of Pern, the patriotism and extreme 
 generosity of her people, would hare sufficed to balk Chili, had it not been for the 
 conduct of her government, which brought about the loss of her fleet, and the inexpli- 
 cable disaster of San Francisco, followed by the disappearance of the head of the gov- 
 ernment. 
 
 The Peruvian people who, with their generous efforts, had endeavored to retard this 
 crisis, and upon whom the war had imposed complete forgetfulness of the past and a 
 firm adhesion to even the very originators of their sufferings, at length saw the end of 
 the same. With a unanimity, which has few examples in history, they overturned, on 
 the 22d of December last, the then existing political power. 
 
 That event, which to an ordinary observer would merely appear as one of so many 
 disturbances of Spanish America, is, to all who know the country and will meditate for a 
 moment on the circumstances under which it took place, and the causes which pro- 
 duced it, but the eloquent protest of the entire nation against the political period 
 which terminated on 23d of December last. That national protest does not alone com- 
 prehend the military events during the actual campaign, but also the entire policy 
 which has brought them about, and the administrative path followed by the over- 
 thrown regime. 
 
 And this is the reason that, notwithstanding the fervent respect of the Peruvian 
 people and their actual chief for the sovereignty of law and liberty, they have with 
 common consent established a provisional dictatorship, accepted by both, only as an 
 imperious and temporary necessity which the present circumstances demand 
 
340 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I must now confine myself to the administrative department, and more especially to 
 the line of conduct observed by the two preceding governments toward oar foreign 
 creditors. 
 
 Hence arises the evil, and not altogethor from the want of material compliance with 
 stipulated liabilities. 
 
 A nation, as an individual, may find itself trammeled much to its regret by circum- 
 stances such as to deprive it of the means of paying the whole of its debts. 
 
 But a nation, with even more reason than an individual, can never deviate from the 
 open path which its duty, its integrity, and clearly its own profit indicate, should be 
 maintained ; it should, with sincerity and loyalty, make known its situation and omit 
 no sacrifice or effort that will reveal its earnest desire to satisfy its creditors within 
 the limits of possibility. 
 
 And now it is very hard but necessary to confess, the two preceding governments 
 have erred in this respect, thereby drawing upon the nation the most lamentable con- 
 sequences ; whereas, the first acts of the'new regime aDd the purpose of this note is to 
 prove our intention of fulfilling relig'iously this duty. 
 
 On the accession to the command of the government by the present head of the re- 
 public, the following was the situation as regards our foreign creditors and our means 
 of fulfilling our engagements with them : 
 
 The external debt, owing to its enormous amount, even given the rehabilitation of 
 our revenues, the termination of the war, and the reduction of public expenses could 
 not be attended to according to the compact as to interest and sinking fund. In this 
 case the only honorable course was to declare it. And as it is evident that that debt 
 was in the greater part contracted in order to employ the money in the construction 
 of railroads, it was but honest to deprive ourselves of these and deliver them without 
 hesitation into the hands of onr creditors. This took place according to the supreme 
 decree of the 7th of January of the present year, the railroads being given over to the 
 creditors, not for their corresponding value in bonds, but for the amount in hard cash 
 that we had spent on their construction. 
 
 It was afterwards needful to seek, by reducing our public expenses and augment- 
 ing taxes, the highest " superavit " possible to give to our creditors. 
 
 This has been done by the decree already cited, establishing a payment of 4 per 
 cent, annually, by means of £2 sterling on each ton of guano exported, to be depos- 
 ited in the Bank of England, reserving to our creditors the right of obtaining for 
 themselves that deposit from the exporter contracting with Peru, and to lay an em- 
 bargo on the article exported. . 
 
 In order to attain this object we have been forced to reduce by one-half our esti- 
 mate of exptnses, and to obtain more funds by taxing the people. 
 
 I do not know that it would have been possible to have done more. 
 
 It is true the payment of the external debt does not commence at once, but the rea- 
 son is evident ; through the events of the war our guano deposits are in possession 
 of the enemy, and, therefore, in order to place their produce at the disposal of our 
 creditors it will be necessary to re-obtain possession of them. Before that there is no 
 possibility of our thus utilizing them. 
 
 We were in possession of guano, already exported into Europe, twhich we might 
 at once have put into the hands of our creditors, and this would have been done had 
 not their own interests been against it. 
 
 For, as I have already said, in consequence of the war, our guano deposits are in 
 power of the enemy. 
 
 Consequently, and, even laying aside the great national interest in the maintenance 
 of our dignity and right, it was necessary to decide between two steps : either to ob- 
 tain from the guano stored in Europe the requisite funds to complete our armament, 
 in order to recover by force the guano deposits, which will permanently furnish the 
 payment of the external debt, or to yield to our creditors the comparatively small 
 amount of the value of the stored guano, but thereby placing ourselves in the impos- 
 sibility of speedily recovering the property which we destine to the payment of mrr 
 debt. 
 
 Between these two extremes it was not difficult to decide. On the 7th of January 
 last we signed a contract by which we deduct from the value of the guano stored in 
 Europe merely the necessary amount to make up our armament, leaving the rest for 
 an extraordinary amortization of the debt (Art. II of the supreme decree of the 7th 
 of January, 1880). 
 
 The official acts to which I reier have been so planned that not even the exceptional 
 situation of the war can damage the existing agreements with our creditors, but 
 rather improve them. 
 
 By the terms of the compact, which took place in London, on the 7th of June, 1876, 
 the fulfillment of which has, with reason, been demanded by the holders of our bonds, 
 Peru was to appropriate from the value of the exported guano sold in Europe, the 
 sum of £700,000 annually, leaving to the demands of the debt only' the remainder of 
 the yearly profits, which, however, in consequence of the mode of conducting the sale, 
 
AFFAIRS IN" CHILI, PERU, AND BOLIVIA. 341 
 
 have, up till now, been delusive. For this reason Peru will only take, and that for 
 once alone, a portion of the value of the stock, renouncing the annual payments agreed 
 upon, which would amount to a far higher sum. 
 
 With the object of obtaining from the guano sold in Europe sure funds for the war, 
 a,nd certain profit for the bondholders, it was needful to overturn the system employed 
 till now in the exportation of guano ; removing the causes which have rendered its 
 value so profitless in the last few years,. 
 
 Of these causes there were two : 1st. The ruinous competition between the house in 
 possession of the guano formerly bought, " Dreyfus Brothers & Co.," and the present 
 consignee, " Peruvian Guano Company Limited ;" 2d, the insecure and variable profits 
 according to the consignment and quality of the guano, instead, of the sale of the 
 ■entire stock at a fixed and uniform price. 
 
 Allowing the existence of the two mentioned houses in possession simultaneously of 
 the market, and both of them with stock for sale, it is not difficult to see that the only 
 means of doing away with the competition which reduced the products of the guano 
 so low as to render it of no value to us, or to our creditors, was to divide the market 
 between the two. The second cause of the evil could only be remedied by finding a 
 purchaser of all the stock at a fixed and uniform price. 
 
 Now, no sensible person will deny that to obtain this result on a practical basis and 
 with the speed which the situation demands, would give rise to disputes between the 
 said houses. There was no other road then open, but to make an arrangement grant- 
 ing them all they claimed, in order to obtaiu : 
 
 1st. The much desired separation of the markets and consequent suppression of the 
 competition. 
 
 2d. The attainment of the largest fixed and certain price possible for the European 
 stock; allowing full liberty to discuss quietly and through the respective tribunals the 
 rights claimed by the two houses. This has been obtained in the arrangement made 
 with Dreyfus Bros. & Co., on the 7th of January, and in the additional contract of the 
 same date which was first proposed to the " Peruvian Guano Company Limited." 
 
 By any other means the Government would only have given rise to misunderstand- 
 ings which would have been prejudicial to itself and to its creditors, with no better 
 result than that of rendering the situation worse than it was before. 
 
 As the Government cannot now dispose of any guano but that which is stored in 
 Europe, it would be delusive and prejudicial to make any contract relative to the ex- 
 portation of any. Delusive, because having to employ its means to recover the use of 
 its deposits and to re-establish the export, and it certainly not being possible to con- 
 sent that this should be effected, under the protection of a foreign power, overlooking 
 the national rights of the country, there was nothing on which to base a contract. 
 Prejudicial also, because every contract would cause needless disadvantages to the 
 Peruvian treasury on account of the delay in the delivery of the article and the uncer- 
 tainties of the struggles to recover it. 
 
 We had then to limit ourselves to the guano in possession of our agents, reserving 
 till after the campaign that which is now in the hands of our enemy. 
 
 Everything that we could do has therefore been done with regard to the guano (con- 
 sidering our situation), in favor of the interests of our creditors, which are identical 
 with those of the national treasury. The delusive income of its sales in Europe have 
 been enormously increased and converted into a certain and fixed sum. The service of 
 the debt agreed upon in the London contract of 1870, at 3 per cent, per annum, we have 
 carried to 4 per cent., and with guarantees and securities of unfailing compliance. We 
 have given in part payment properties of real value, such as all our railroads. And, 
 finally, even in spite of the war, we have renounced the annual income latterly agreed 
 upon with our creditors, leaving them the value of even the guano stored in Europe, 
 receiving, once for all, only a portion of it ; and that with the object of helping us to 
 recover the deposits of guano which are now in the hands of the enemy. 
 
 The nitrate was, doubtless, another article in the hands of the government ; and 
 although it has not been considered in the arrangement for the payment of our foreign 
 •debt, we should not have hesitated for one moment in throwing it in, to serve our cred- 
 itors better. 
 
 There were, however, two insurmountable obstacles to this : First, that the govern- 
 ment had taken possession of the saltpeter mines from the proprietors, giving them in 
 exchange documents which have never been canceled, nor can they ever be paid for 
 with the other revenues of the country ; in reality these mines do not belong to us, 
 and it would have been equivalent to disposing of property which belongs only to the 
 nitrate manufacturers. 
 
 The second impediment is obvious. The department of Tarapaca" being occupied by 
 the Chilians, any transaction relative to saltpeter would be purely chimerical, before 
 turning them out. Even if we had a right to dispose of the nitrate, which is not ours, 
 the opportunity has not yet arrived to place it at the disposal of our creditors. Among 
 these there have been some who consider that Peru should yield to them the export of 
 guano, and even of nitrate, in order that they may pay themselves, allowing so much 
 
342 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 per ton to Peru. The convenience of this step has been encouraged by the idea that 
 as neutrals the bondholders would be allowed to export these articles, in spite of the 
 actual possession of the enemy, and shielded by their respective flags. This would 
 amount to the establishment of a sort of foreign protectorate over our territory, when 
 we ourselves aTe fully able and determined to drive the enemy out, without need of 
 foreign aid. No foreign government would lend their aid to such foolish pretensions ; 
 nor woold Peru and its present government ever consent to snch a thing 
 
 Laying that aside, and supposing that we had again obtained possession of our terri- 
 tory, no sensible government could possibly accept a proposition to allow the creditors 
 to come and pay themselves. 
 
 Without a complete abdication of national rights and functions, it is not possible to 
 transfer the administration of national resources, before first? proving that the govern- 
 ment is incapable of acting for itself. It wonld be like the affairs of a bankrupt being 
 arranged by his creditors, and Peru, fortunately, does not yet find herself in that posi- 
 tion. 
 
 Besides which, such a proceeding would not be a security even to the bondholders. 
 So numerous as they are, belonging to all social conditions, and not even able to- 
 agree or act in unison, what would be the practical signification of giving up to 
 them the management of the guano and nitrate ? Would their interests be better 
 guaranteed by the person or persons who would be appointed to represent them, than 
 by a people of a government, who, although they may suffer disturbances, will always- 
 exist, and are not liable to the mistakes and errors of private individuals? 
 
 Supposing that Peru were to consent to transfer the management of the nitrate and 
 guano to an imaginary body entitled " bondholders," the consequence would be that 
 a speculator chosen by them (if this were possible) would undertake the extraction 
 and sale of guano and nitrate, and the distribution of its profits in a manner which 
 would not offer nearly such security as if this election were made by the government 
 of the country ; their responsibility would cease, but not their right of intervention, 
 since a portion of the profits of this export have been given up to them. 
 
 It is not the interest of the large number of bondholders that produces the excite- 
 ment of a few, and their attempts to take upon themselves the management of the 
 guano and nitrate at all hazards. It is a gross speculation, fomented by the intrigues 
 of Chili to their own advantage, but to the great detriment of Peru and her creditors , 
 this fact they cannot ignore. All this is so anomalonsand rotten that it isnot worth the 
 trouble of investigation ; and if I touch upon it at all, it is merely because, last year 
 this pretension made its appearance in a proposition presented by a very small num- 
 ber of Peruvian bondholders, and in one or two foreign newspapers. 
 
 The confusion in this affair has reached to such an extent, that there are even some 
 who conceive the possibility of an understanding between the Peruvian bondholders- 
 and the enemy with whom we are at war. 
 
 We will do the greater portion of our bondholders the honor of believing that it has- 
 been far from their intention to share with the enemy the riches of Peru ; for it is cer- 
 tain that that would be the only interest 'that would lead the latter to this interna- 
 tional scandal. The respective governments of these could not help looking upon 
 this as an offense against justice and the common interests of States. Finally, for us 
 as for any other nation in a similar case, there is but one conclusion : The immediate 
 canceling of all debts to such as should commence by disavowing the fact which ex- 
 isted between us in order to consummate one with our enemy to our detriment. 
 
 If such a thing should happen, however, it will ouly prove a gross injustice, of 
 which the perpetrators would reap but little benefit, because Pern has the firm deter- 
 mination, and has tbe means wherewith to drive the Chilians out of the territory, 
 which it is only occupying temporarily. 
 
 Not even during this occupation would such an attempt be profitable, because as 
 the government has already declared in an international dispatch, the very ships used 
 to export the nitrate and the guano abstracted from Peru would be only taking un- 
 due advantage of their flags, if neutral, which, for this very reason, would not pro- 
 tect them, from being seized by us or in our name. 
 
 In conclusion, the official acts to which this dispatch refers, as will be very easily 
 seen By the slightest examination, have consulted as much as possible our foreign 
 credit, and with it, the interests of our foreign creditors. Any other steps will only be 
 prejudicial to them as well as to the republic. 
 
 The new government which Peru has chosen, interpreting the national will, even in 
 the midst of the preoccupations of the war, has, nevertheless, devoted its first atten- 
 tion to the service of our creditors. Seconded by them, as Peru has a right to expect, 
 our government will have put an end to the damages they have had to suffer, much to 
 the regret of the whole nation, which will thus be vindicated by practical and unde- 
 niable facts from the charges against her, owing to the blunders of hay former rulers. 
 
 I trust that you will make such use of this communication as to make known its- 
 contents to our bondholders, as it is the particular desire of his excellency the chief of 
 state, as well as mine, that they should be thoroughly convinced that Peru and her 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 343 
 
 government are proceeding with loyalty, and feel the greatest interest in their rights, 
 ■which will no doubt be proved by the terms of tLis exposition, and the painful frank- 
 ness with which I have stated the declarations it contains relative to the former polit- 
 ical period. 
 May God preserve you. 
 
 MANUEL A. BARINAGA. 
 
 Department op Finance. 
 NicolXs de Pierola, Supreme Head of the Republic. 
 
 In view of the proclamation published in Iquique, on the 25th of February, by the 
 general-in-chief of the forces of the Chilian army occupying Tarapaca^ and, 
 
 Considering, 
 
 1st. That the de facto dominion exercised by the Chilian forces, and that only tem- 
 porarily, over the Peruvian guano deposits, has not and cannot annul the seigniory 
 and exclusive proprietorship by Peru of said deposits. 
 
 2d. That the right has not been accorded to the bondholders by their bonds of pay- 
 ing themselves by working themselves the guano; and that, even if such were the 
 c#se, it would be indispensable that an agreement be previously made as to the mode 
 of carrying out the same. 
 
 3d. That neither the whole nor much less any portion of the bondholders, in whose 
 favor the guano contained in said deposits is hypothecated, could ever have it in their 
 power to make such agreement with any other authority than with the Peruvian Re- 
 public, with which they contracted as the sole and absolute owner of that substance, 
 and much less could they cede a part of the value thereof, thus constituting them- 
 selves auxiliaries of the enemies of Peru. 
 
 4th. That Peru finds herself by duty compelled to oppose the attempted defrauda- 
 tion, not only in the name of her own rights, but in that of the great number of her 
 creditors, whose interests it is her duty to study. 
 
 5th. That, therefore, on <the supposition that some portion of the said bondholders, as 
 is insinuated by the proclamation referred to, have solicited from Chili a permission, 
 which she has no right to grant, and which appears to all intents and purposes to be a 
 collusion for the purpose of defrauding Peruvian interests, such bondholders have, by 
 their own deliberate will, broken the compact on which their credit was based, at the 
 same time inflicting serious injurytothenational sovereignty, which they have ignored 
 and set at naught. 
 
 I decree, 
 
 1st. That the proclamation dated and published in Iquique, on the 25th February, by 
 the general-in-chief of the Chilian forces occupying the department of Tarapac^, be 
 declared a felonious assault against the sovereignty of Peru and depredatory of the 
 guano in her deposits. 
 
 2d. The bondholders, who may in reality have solicited the permission to which said 
 proclamation refers, to extract guano in payment of their credits, have thus lost, ipso 
 facto, their rights to establish their claims against Peru any time or in any form what- 
 soever. 
 
 3d. The Peruvian Government will pursue, without further limit than that of the 
 force of which she may be able to dispose for tho purpose, the vessels in which the ex- 
 portation of the guano may be effected, and will confiscate them whatever flag may 
 cover them. 
 
 4th. The diplomatic and consular agents of Peru abroad will demand from the com- 
 petent authorities the embargo of any cargo of guano exported in virtue of the procla- 
 mation referred to. 
 
 The secretaries of marine and hacienda are intrusted with the execution, publica- 
 tion, and circulation of this decree. 
 
 Given at the government house in Lima on the 15th day of March, 1880. 
 
 N. de PIEROLA. 
 MANUEL A. BARINAGA. 
 
 Nicoi-ls de Pierola, Supreme Chief of the Nation. 
 
 In view of the proclamation published in Iquique on the 23d of February last, by 
 the general-in-chief of the reserved army of Chili, on the export and sale of Peruvian 
 nitrate, manufactured in the department of Tarapaca, the rest of the orders given on 
 the subject by the Chilian agents in that territory ; and 
 
 Considering: 
 
 1st. That the military occupation of said department by the Chilian foroes, is a tran- 
 
344 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 sitory fact, which can hy no means authorize the appropriation of the riches of that 
 territory, whether they belong to private people or to the exchequer of Peru, against 
 whom Chili neither has, nor ever has had, before or after the war, any demand what- 
 ever, the fulfillment of which she might have to enforce by this means. 
 
 2d. Consequently that the decrees contained in the said proclamation respecting the 
 Peruvian nitrate, amount to an embezzlement, without any motive or protest what- 
 ever in its justification, but a scandalous abuse of power. 
 
 3d. That for this reason the manufacturers and exporters of nitrate are bound to re- 
 sist the consummation of this felony by every means possible with the object of com- 
 plying faithfully with their engagements, which cannot be modified or altered by a 
 foreign authority, which has usurped the national sovereignty, on pain of the strictest 
 responsibility. 
 
 4th. That if a neutral flag protect the enemy's merchandise, this principle cannot be 
 applicable to extracted or embezzled merchandise, and therefore the neutral ships that 
 otfer themselves to carry the guano or nitrate of Peru on Chili's account, commit an 
 abuse against their flag and cannot shelter themselves under the terms of the Paris 
 Congress. 
 
 I decree : 
 
 1st. That the said proclamation of the general-in-chief of the Chilian reserve army, 
 dated and published in Iquique on the 23d of February of the present year, and the 
 rest of the orders relative to the same affair be declared a felonious assault against the 
 sovereignty of Peru, and depredatory of her property. 
 
 2d. The Government of Peru will persecute, without further limit than that of tl»e 
 force of which she may be able to dispose for the purpose, all vessels in which the 
 exportation of the nitrate may be effected, and will confiscate them, whatever the flag 
 that covers them. 
 
 3d. The nitrate company being authorized by their contract to persecute all expor- 
 tation and fraudulent sale of the nitrate, will do so especially in the case, employing 
 every possible means to that effect. 
 
 4th. The manufacturers and exporters of the nitrate of Tarapaci, who are not able 
 to prove that they have only yielded to superior force in defense of the interests of the 
 Peruvian exchequer, will be responsible for the losses caused thereby. 
 
 The secretaries of marine and finance are intrusted with the execution, publication, 
 and circulation of this decree. 
 
 Given at the government honse, in Lima, on the 15th day of the month of March, 
 1880. 
 
 N. de PlfiROLA. 
 MANUAL A. BARINAGA. 
 
 No. 215. 
 
 Mr. Uvarts to Mr. Tracy. 
 
 Department of State, 
 
 Washington, March 22, 1880. 
 Sir : I have the honor to acknowledge the receipt of your note of the 
 9th instant, relative to reports which you have received, evincing the 
 friendly relations which exist between the Governments of Peru and 
 Bolivia, and also of its inclosure. 
 
 Accept, sir, &c, 
 Senor Don Josb Carlos Trac?. 
 
 TTM. M. EVARTS. 
 
 No. 246. 
 Mr. Ghristiancy to Mr. Uvarts. 
 
 No. 137.] Legation of the United States, 
 
 Lima, Peru, March 23, 1880. (Received April 13.) 
 Sir : Referring to my dispatch, No. 133, 1 have to say in continuation 
 of the progress and incidents of the war, that since that dispatch we 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 345 
 
 have no further reliable information of the depredations of the Chilian 
 vessels along the northern coasts. 
 
 But on the 19th instant, as will appear by a slip from the South Pa- 
 cific Times of this day, herein inclosed, which is believed to be entirely 
 authentic, the Chilian vessels completely destroyed all the works for 
 loading guano, &c, at the Chiucha Islands. 
 
 It seems also, from various reports, that last week (the exact day I 
 cannot ascertain) a Chilian force of from 2,000 to 3,000 men marched 
 from Ilo to Mollendo, and that with some marines, who were near or 
 arrived there about that time, they completely burned, sacked, and 
 destroyed the town, railway, and railway station, wantonly destroying 
 the lives of peaceable inhabitants, and in some instances ravishing 
 women. I have seen no official account of this, but the British minister 
 informs me that he has from the British consul, and that the facts are 
 a disgrace to civilized warfare, though he says he thinks the cases of 
 actual ravishing were but two. Some accounts state, and these in 
 charity, I am inclined to believe, that some marines, with some insub- 
 ordinate soldiers, who had broken open and sacked the custom-house, 
 got intoxicated upon the liquors found there, and in this way were led 
 into these excesses, and that the Chilian authorities intend to try the 
 offenders by a court-martial. I hope, for the sake of humanity, that 
 this may be the true version of the affair. 
 
 The orders, however, given by the Chilian Government to their fleet 
 to destroy all the Peruvian ports, can hardly be carried out without 
 great inhumanity and even barbarity, and that towards neutrals, 
 English, Americans, French, Italians, and Germans, in whose hands, 
 collectively, is most of the business and property in all tbese ports, 
 many thousands of whom, if they are to be attacked without notice or 
 opportunity of removing themselves or their property out of danger, 
 are likely to lose their lives, or if they escape with these to be left pen- 
 niless as many have already been. 
 
 But Peru, under her new regime, is beginning to show some signs 
 of life, and is putting forth more vigorous efforts for national defense. 
 And from what I have thus far "observed, I do not hesitate to say, that 
 if the present supreme chief had been in power from the beginning of 
 the war, with the means which the former administration possessed, 
 he would have accomplished much more than they did ; and that his 
 rule is about the best and most efficient form of government which it 
 would be practicable' to select for such a crisis and in such a country. 
 I say this without intending any reflection upon the- former govern- 
 ment, and without surrendering any of my life-long antipathies to mere 
 personal government. There are times and countries in which no other 
 form of government can be rendered efficient. 
 
 But to proceed with the war. The Union, the only naval vessel left 
 to Peru, exceptjthe monitor Manco Capac, at Arica, and the Atahualpa, 
 at Callao, a wooden steam corvette, with 10 guns, entered the port of 
 Arica before daylight on the 17th instant, taking arms, ammunition, 
 &c, to reinforce the army in Arica ; she was not seen by any of the 
 enemies' vessels until she had been engaged some three hours in un- 
 loading cargo. Then the Cochrane and the Huascar opened the attack, 
 which was continued for nine hours, aimed principally against the 
 Union, which continued to fire from one side, while the unloading went 
 on upon the other, she being, also protected by the batteries on shore, 
 and by the monitor Manco Capac. Finally, at 5 o'clock p. in., having 
 discharged her cargo, she left at the south (instead of the north as the 
 Chilians seem to have expected) and came safely away, arriving in 
 
346 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Callao on the 20th, her loss having been one killed and eight wounded, 
 theTsmoke-stack and some steam-pipes having been injured, and some 
 slight injury to the vessel. I inclose a more" detailed account, taken 
 from the South Pacific Times of to-day. 
 
 This is looked upon by the naval officers (of the various nations) now 
 here as a very gallant act, and one that would have been pronounced, 
 beforehand, as desperate or impossible. 
 
 There have been for several days rumors, brought here by some of 
 the passenger steamers from the south, of a conflict at Moquegua, be- 
 tween the Peruvians and Chilians, in which the latter are reported to 
 have suffered a severe defeat, but I can find no reliable confirmation of 
 the rumor. 
 
 I have, &c, 
 
 I. P. CHKISTIAXCY. 
 
 P. S. — March 24. Since writing the above I have been furnished 
 with the following informatiou in reference to the affair at Mollendo, 
 by Captain Brown, of the Alaska, and which he derives from Captain 
 D'Arcy, of Her Majesty's steamship Shannon, just arrived from Arica, 
 by which it seems that a force (Chilian) of about 2,000 went by trans- 
 port to Yslay : that the object of the expedition was to march from that 
 point and take Mollendo, in the hopes of being able to obtain railroad 
 material for use at Ilo. The sea was so rough at Islay that only about 300 
 men could be landed. This small force marched on Mollendo to find it 
 evacuated by the Peruvian troops, and abandoned by its citizens. The 
 transport then entered Mollendo Bay' and landed the troops. They had 
 orders to bring away everything that would be useful, and to destroy 
 all government property. The Chilians got drunk and set fire to every 
 building, in spite of the endeavor of the officers to prevent such van- 
 dalism. Thev remained at Mollendo only one dav. 
 
 I. P. C. 
 
 Xo. 247. 
 
 Mr. Cltristiancy to Mr. Evarts. 
 
 Xo. 138.] Legation of the United States, 
 
 Lima, Peru, March 24. 1SS0. (deceived April 13.) 
 
 Sir : I have the honor to inclose to you the circular issued on the 17 th 
 instant by the secretary of foreign relations of Peru to her diplomatic 
 agents abroad, in relation to the sale of nitrates by Chilian authority in 
 the province of Tarapaca, and to the. inhuman manner in which Chili is 
 carrying on the war. " 
 
 Probably you will receive the same circular from Mr. Tracy, the 
 charge d'affaires of Pern, if not already received. On the subject of 
 the nitrates, you are probably sufficiently informed already, or soon will 
 be, through the representative of Peru. (See my dispatches Xos. 112 
 and 117.) 
 
 But I will say here that in view of what the Chilian fleet has already 
 done, and what seems to be now threatened, there would seem to be 
 some foundation for the complaint that Chili is violating the humane 
 rules of modern warfare. 
 
 I have it from an eye-witness (not official) who was at Eten the other 
 day when that town was fired into, that no notice had been given to the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 347 
 
 inhabitants of such intent, that there was no military force in the town, 
 and no provocation given by the inhabitants by firing upon the assail- 
 ants, or otherwise ; and from the nature of the order of the Chilian 
 Government to destroy all the Peruvian ports, the like course is to be 
 expected in other ports of Peru. 
 
 In fact, I have the information (through Captain Brown, of the 
 Alaska), obtained from the captain of a neutral naval vessel just ar- 
 rived from Arica, that one of the highest authorities in Chili had just 
 declared to him (the captain of the neutral naval vessel), that in the 
 course of two weeks they not only intended to blockade Callao (which 
 is all legitimate enough), but to appear before Chorillos (a mere watering 
 place, nine miles from Lima, inhabited mainly by foreigners for health, 
 and not even a commercial town, not having any military defense). 
 That they intended to exact of that town a heavy contribution, and if 
 not promptly paid, to destroy the town. 
 
 This mode of carrying on the war by Chili has produced a strong 
 feeling here among all the representatives of foreign (neutral) powers — 
 English, German, Italian, and French. A protest of the diplomatic 
 corps has been suggested, and the representatives of one of those for- 
 mer, from whom I least expected it, who has a strong naval force here 
 (but whose name I am not at liberty to mention), has suggested that 
 the corps ought not only to protest against attacks made without no- 
 tice upon the peaceable citizens of unarmed towns, but to insist that, 
 before any of the towns upon the coast, even Calico, should be bom- 
 barded, a reasonable time should be given for the inhabitants, and espe- 
 cially neutrals, to remove themselves and property from danger, and 
 for all foreign shipping to leave, and all foreign consuls to remove their 
 archives and effects to someplace of safety; and that, if these reasona- 
 ble demands should not be complied with, then to place the vessels of 
 war of the neutral nations between the Chilian fleet and the shore, with 
 orders to return any fire the assailing fleet might make upon the town. 
 
 There will, doubtless, be a meeting of the corps in a few days, and, 
 if so, I shall endeavor to act coolly and with circumspection; and while 
 I shall avoid protesting against any of the regular and legitimate means 
 which one belligerent may, according to the more humane practices of 
 modern warfare, properly use to weaken its opponent, I shall nevertheless 
 readily join in protesting against all such means as are supported only 
 by savage or semi-barbarous practices of past ages, but condemned by 
 the more humane codes of modern warfare. Humanity has some rights., 
 even higher than those of belligerents. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 No. 248. 
 
 Mr, Christianey to Mr. Evarts. 
 
 [Confidential.] 
 
 No. 139.] Legation oe the United States, 
 
 Lima, Peru, March, 24, 1880. (Eeceived April 13.) 
 Sir : I have the honor to state to you some things which, in the 
 present state of affairs, ought to be treated as strictly confidential. In 
 
 * For incloaure, see document No. 244. 
 
348 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 the first place -there is a very general and very intense hostile feeling 
 here against the English, and in the second place a very kindly feeling 
 towards the United States. 
 
 To some extent the feeling of hostility to England is well founded. 
 England has more influence in Chili than any other power. Many of 
 the business men in that country are English by birth or descent. The 
 most efficient men in her navy, officers, engineers, and gunners are En- 
 glish, and there are many of them in her armies. The recent action of 
 many of the English holders of Peruvian bonds, payable from proceeds 
 of guano, in accepting the proffer of Chili to take guano under Chilian 
 authority from Peruvian guano-beds, has intensified this hostile feeling. 
 
 The whole transportation business from Panama south to Valparaiso 
 is in the hands of an English steamboat company, the Pacific Steam 
 Navigation Company, running steamers from Panama to Callao, whence 
 other steamers of the same line go on to Valparaiso, and vice versa, 
 changing steamers at Callao. 
 
 Most of the officers of these steamers running from Callao south, es- 
 pecially, are believed, and perhaps with some reason, to be very strong 
 in their feelings in favor of Chili in this contest, and are believed to furnish 
 to Chili much more intelligence of what is going on in Peru than they 
 furnish to Peru of what is going on in Chili. To some extent, I have 
 no doubt this is true, though I do not think it true to the extent which 
 the present existing feelings of the Peruvians lead them to believe. These 
 southern steamers hare doubtless often carried contraband for the bene- 
 fit of the Chilians, and sometimes for the benefit of Peru. 
 
 On the other hand the steamers of the same line running north to 
 Panama have often carried contraband for the benefit of Peru, and, 
 possibly sometimes, for the benefit of Chili. In short, it was impossible 
 for a line of steamers running along the coasts of both belligerents to 
 do business at all, without occasionally violating the strict rules of neu- 
 trality; and, as I once told the English minister, and the agent of this 
 steamship line, the only way in which they could preserve the duties of 
 strict neutrality was to balance its infractions between the belligerents. 
 
 I would scorn to stir up or even encourage a feeling against the En- 
 glish or any other people here, or to take advantage of any prejudice 
 wrongfully existingfor the benefit of the United States. But it cannot be 
 concealed that there is a strong feeling here against the English though 
 they have now more of the foreign commerce of Peru than any other 
 nation, and it is also evident to me that there is, to some extent, good 
 ground for this feeling. The feeling, is so deeply fixed that it will re- 
 quire years to overcome it. Aud in the meanwhile, while we have done 
 nothing to create this hostile feeling, and have not the power to allay 
 it, the question occurs whether we should not be entirely justified in 
 availing ourselves of the existing fact, and of the kind feeling of Peru- 
 vians towards the United States, in extending, as far as possible, our 
 commerce with Peru. We can do little to extend direct trade between 
 the two countries, unless we change somewhat our tariff on wool and 
 on sugar, the two leading products of Peru. 
 
 But it would be in the power of enterprising Americans to establish 
 a line of steamers on this coast from Panama to Callao, at least (and 
 •even to the southern boundary of Peru), which woidd effectually put 
 an end to the business of the English line along the Peruvian coast, at 
 least, and this of itself would tend rapidly to in troduceAmerican prod- 
 ucts into Peru. 
 
 I had an interview with Don Nicolas de Pierola, the supreme chief 
 of Peru, a few days since, in which he expressed the most ardent de- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 349 
 
 sire for the establishment of such a line, assuring me that it would not 
 only take the Peruvian business, but that the Government of Peru, if 
 necessary, would give it direct aid. He promised me, in answer to my 
 suggestion, tha*t his government would furnish me the statistics, bear- 
 ing upon the feasibility of such an enterprise. It occurred to me (that 
 while I am not at liberty to correspond with individuals in the United 
 States upon the subject) 1 might properly communicate the subject to 
 you, and that you might have conference or correspondence with that 
 class of enterprising Americans, who might find it for their advantage 
 to inquire into the matter, and perhaps to establish such a line. Per- 
 haps the Pacific Mail Company might think well of it. 
 
 The English line pays well, not only the main line to Panama, but 
 the branch line north along the Peruvian coast. I submit these sug- 
 gestions to your consideration, expecting before long to have the 
 necessary statistics to enable business men to judge of the feasibility 
 of the enterprise. 
 1 have, &c, 
 
 I. P. CHBISTIANCY. 
 
 No. 249. 
 
 Mr. Christiancy to Mr. Uvarts. 
 
 No. 140.] Legation of the United States, 
 
 Lima, Peru, March 24, 1880. (Eeceived April 13.) 
 
 Sir : I have the honor to inclose to you the copy of a letter and pro- 
 test from Mr. Montjoy, our consul at Lambayeque, which I have just 
 received, in reference to the depredations of the Chilian fleet at Lobos 
 Islands, and at Eten. The injury, as you will readily perceive, is much 
 clearer than the remedy. 
 
 I shall, however, forward a copy of his letter and protest to our min- 
 ister in Santiago. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure in No. 140.J 
 
 Mr. Montjoy to Mr. Christiancy. 
 
 Consulate of the United States op America, 
 
 Lambayeque, March 17, 1880. 
 Sir : I have the honor to transcribe to your excellency the following report from 
 Mr. Stalpe, of Lobos de Afuera Islands, of the proceedings of the Chilian cruisers at 
 those islands, and also the attack made by the same vessels upon the port and town 
 of Eten : 
 
 " Lobos be Afuera, March 16. 
 " On the 10th instant there arrived here the Chilian corvette Chacabuco and trans- 
 port Loa, which, after notifying the governor of their intent, proceeded to burn and 
 destroy moles, platforms, cars, launches, &c, and to embark everything movable found 
 on the islands, including mules, horses, live-stock, and provisions, as well from the com- 
 pany's stores as from the purveyor's store, over which the English consular flag was 
 flying. In fine, they have completely stripped us of everything, and, as I telegraphed 
 you on the 13th instant, I am sending the people away as fast as possible, leaving the 
 contracted Chinamen until the last. In the interest of humanity and at my urgent 
 solicitations, the commander, Don Oscar Viel, left me rice and charqui for eight days, 
 
350 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 and spared the steamer Ballestas, which he said was forfeited by her voyages being 
 illegal, on ray representation that she was absolutely necessary to transport the people 
 to the mainland, as we could not depart upon the ships, which do not feel inclined to 
 move at present. 
 
 " The commander assured me that his orders 16 take away everything were most 
 positive. The mole is this time completely destroyed, and the loading may be consid- 
 ered as definitely suspended." 
 
 "Although the Chilians arrived within ten hours of being sighted, I was able to sink 
 the launches at their buoys, whence I will presently raise them, and the ships saved 
 three by sinking them on their bow chains; the launches which they could not dispose 
 of in that way were seized and destroyed, and the steamer Aurora was burned." 
 
 The Chilians, as you will doubtless have heard, had fired seven shots from a Metrail- 
 leuse at the locomotive engine which was on the mole at Eten, and eleven shells at the 
 town, which fortunately did no damage, owing to the elevation of the guns necessary 
 to raise them over the bluff (50 feet high) which forms the coast, the Bhells passing 
 over the town and exploding on the prairie (pampa) beyond. This, however, without 
 notice or any provocation on the part of the inhabitants, who have no means of de- 
 fense or preservation, except that of flying from their homes. 
 
 The commander of the Chilian naval forces notified us that his orders are to await 
 a re-enforcement of ships and to destroy all the ports from Payta to Callao. A third 
 Chilian ship joined the squadron at Eten, after which they proceeded to sea, and we 
 have seen them no more. 
 
 The resolution of the Chilian Government, as expressed by the commander of the 
 bombarding forces, Capt. Oscar Viel, to destroy the ports of the coast, will, no doubt, 
 arouse your attention as also that of the other foreign diplomatic officers in Peru, from* 
 the fact that at least 90 per cent, of all the immovable property in those ports belongs 
 to foreign residents, such as dwellings, storehouses, &c. What favorable effect the 
 destruction of such property can have upon the result of the war is not very clear to 
 me, and therefore I request your serious consideration of the disastrous effects of such 
 acts upon the Americans engaged in commerce and trade on the coast — effects which 
 destroy the strenuous efforts of our government and citizens for the last few years to 
 promote and encourage trade and commerce with Peru, and to procure in this country 
 an outlet for our manufactures and products. The solution of this difficult situation I 
 leave to your excellency, as eminently qualified by your capacity and position. Still, 
 I consider it to be my duty, as an officer of the United States, to protest, in the name 
 of our government and of her citizens resident in this district, and I therefore, do now 
 most publicly and solemnly protest against all such barbarous and inhuman acts as 
 directed chiefly and solely against American and other foreign citizens and their lives 
 and property, and declaring that such acts do not and cannot contribute in any man- 
 ner towards debilitating or harassing the people or Government of Peru, with whom 
 Chili is at war, but are evidently and solely acts directed with premeditation against 
 neutral residents of foreign nations who are peaceably prosecuting their legitimate 
 trade and commerce under the protection of the general law of nations. 
 
 The fact that a very considerable part of the property of neutral residents in those 
 ports consist in immovable property — store-houses, dwellings, &c, which cannot be 
 removed to a place of safety, makes evident the determination of the Government of 
 Chili (to whom this fact is well known) to wage deliberate war upon friendly nations, 
 their subjects or citizens. It being a notorious fact that the property of Chilians who 
 were established in Peru has been not only not confiscated but respected and pro- 
 tected by the Peruvian authorities, makes the more anomalous and exceptional the 
 case of other foreign residents in this republic ; it appearing that they only being 
 neutrals are to suffer the brunt of the rancor of Chili, and calls for immediate remedy. 
 The property in several of these ports being cnierly American, imposes* upon me the 
 obligation to protect them in so far as my duty and desires will permit, to insure for 
 them, their families and property, that security for which the recent accounts of the 
 outrageous sacking and burning of the towns of Pisagua and Mollendo, where de- 
 fenseless women were violated and murdered, and innocent children thrown into the 
 flames to perish, justly cause them to fear. And the fact that almost the total popu- 
 lation of those places were foreign residents, who continued to reside there in the fan- 
 cied security of peaceful neutrality from such barbarous attacks on the part of the 
 Chilian forces. In view, therefore, of these precedents and others which show the de- 
 termination of Chili to carry indiscriminate disaster and calamity among the peaceful 
 neutral residents, and which has called forth the unanimous and indignant protest of 
 the diplomatic corps in Santiago, Chili, I again make solemn and public protest 
 against the Government of Chili, in the name of the Government of the United States, 
 and her citizens, and of those citizens of other nations not here represented who have 
 requested me in this matter, and to declare that the United States Government will 
 hold the said Government of Chili responsible, and will demand payment for her citi- 
 zens for all losses and damages in their persons and property that they have suffered 
 or may hereafter suffer by act of wanton hostility towards them not authorized by le- 
 
AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 351 
 
 gitimate warfare, reserving the right to amplify and extend this declaration of protest 
 as need or occasion may require. 
 
 And iu order that the Government of Chili may not be ignorant of this solemn act, 
 I request your excellency .to forward copy to the minister of the United States in 
 that republic to present to that government, and, also, if your excellency considers 
 necessary or politic, to present this to the notice of the members of the honorable dip- 
 lomatic corps iu Lima, that they may act as each may consider best in the interest of 
 his own citizens. 
 I have, &c, 
 
 T. C. MONTJOY, 
 United States Consul. 
 
 No. 250.. 
 
 Mr. Ghristiancy to Mr. Evarts. 
 
 No. 145. J Legation op the United States, 
 
 Lima, Peru, March 31, 1880. (Eeceived April 24.) 
 
 Sir : As an evidence of the delicate and dangerous position of many 
 American citizens in Peru, their intense feeling against the manner in 
 which Chili is carrying on the war, and their strong and earnest hope 
 that the minister of the United States here should take some speedy 
 and energetic action for their protection, I have the honor to inclose 
 a copy of a communication, this day addressed to me by some sixty- 
 nine American citizens and firms, resident in Lima, Callao, Chorillos, 
 and Sliraflores, and there are many more, I am informed, who are yet 
 to sign. 
 
 I deeply sympathize with these citizens of the United States, and 
 am disposed to accede to their request for protection, just so far as the 
 principles of international law will permit me to go, hut I cannot con- 
 sent to violate any of the clearly recognized principles of that law, 
 even to protect our own citizens domiciled in Peru. I can see no way 
 in which I can aid those resident or doing business in Callao, except 
 to insist that, if a blockade of that port shall take place, a reasonable 
 time shall be given to neutrals to remove from the port, and, if a bom- 
 bardment is to be had, that a reasonable time shall be given for all 
 peaceable and unarmed inhabitants to remove with their personal 
 effects beyond the reach of hostile shot. Callao is a fortified town, 
 and an important military post of Peru, defended by forts, batteries, 
 and an armed force. It is, therefore, a legitimate point of attack, and 
 the town is so situated, with reference to its forts and batteries, that 
 these latter cannot be attacked without endangering the town itself. 
 As to a town thus situated and defended, I must admit that less length 
 of notice may be required of the establishment of a blockade, or of the 
 opening of a bombardment, than would be required in the case of an 
 open, unfortified, merely commercial town, undefended by a military 
 force. If bombardment of towns of the latter description is permis- 
 sible at all, when no resistance is shown, no military force opposes 
 (which I fear the lingering barbarism of past ages still recognizes as a 
 part of international law, but which I think would be "more honored 
 in the breach than the observance"), common sense and common 
 humanity would seem, at least, to require a notice sufficient for all non- 
 combatants to remove with their household goods out of the reach of 
 the guns. 
 
 But, there is still another class of towns along or near the coast, such 
 as Chorillos and Miraflores, which are not in any sense even coininer- 
 
352 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 rial towns, nor defended by any military force or works, where vessels 
 never land, but which are merely watering places of resort for peace- 
 able people, and women and children for their health, but which are 
 within reach of long range guns from the Chilian fleet. As to such 
 towns a bombardment would be directly and exclusively against peace- 
 able and unarmed inhabitants, and in my opinion no more permissible 
 upon any sound principle, than the indiscriminate slaughter of thq 
 same unarmed, peaceable, and defenseless citizens anywhere in the 
 interior. It would not be legitimate war in either case, except so far 
 as might be necessary to reach an armed enemy near or beyond them r 
 but simply wholesale murder, and ought to be condemned by all nations 
 making any pretension to civilization. 
 
 But, I shall decide upon nothing hastily, nor until a decision becomes 
 necessary. I met to-day the French, English, and German ministers, 
 and the Italian charge^ d'affaires at a breakfast at the French minister's. 
 We had some consultation upon these matters. Some of them felt dis- 
 posed to go a little further than I could go. But we are to meet again, 
 ten days hence, or sooner, should the Chilian fleet make it necessary. 
 
 While I do not wish to take any such advanced ground as would 
 interfere with the freedom of either belligerent to carry on the war in 
 any legitimate manner, nor insist upon any restrictions to which we 
 would not ourselves be willing readily to submit; yet, on the other 
 hand, I do not wish American citizens to feel that, their government 
 will not go as far to protect them as other civilized and commercial 
 nations are ready to go in protecting theirs. 
 
 I may have to act, to some extent, upon my own responsibility, as I 
 shall probably have to act before 1 can receive instructions from the 
 Department. 
 
 I have, &c, 
 
 I. P. CHBISTIAXCY. 
 
 flnclosure 1 in Xo. 145.] 
 
 American citizens to Mr Ckristianey. 
 
 To His Excellency the Hon. I. P. CHRiSTrAxev, 
 
 Envoy Extraordinary and Minister Plenipotentiary of the 
 
 United States of America to Peru: 
 Sik : We, the undersigned, citizens of the United States, engaged in commerce, trade, 
 and other occupations, now temporarily residing in Peru, most respectfully call the 
 attention of your excellency to the ordeis given by the Government of Chili to its fleet, 
 to burn and destroy every port on the coast of Peru, and to the fact that the last news 
 from the south brings the notice that their fleet is preparing to come, if not already on 
 its way, to destroy the towns and ports of this vicinity. We have the terrible example 
 of the barbarous mode of warfare of the Chilians in the sacking and burning of Pisa- 
 gua, and more recently Mollendo, Islas de Lobos, and Eten, where the most unparal- 
 leled crimes and indignities have been committed, together with a wanton and cruel 
 destruction of foreign property. Our countrymen resilient in those places have suf- 
 fered to an immense amount. At Tumbes, Talara, Islas de Lobos, Eten, &c, the whole 
 property plundered or destroyed has been that of our citizens or of those of other neu- 
 tral nations. We are all well aware, sir, that under the present recognized international 
 code the neutral resident in a belligerent country suffers equally with the native, but 
 we cannot consent that the right of a belligerent be so far exercised that he be per- 
 mitted to wage exclusive war against the neutral residents in his enemy's country. 
 Thus far the greater part of the losses and disasters have fallen upon neutral residents, 
 and should the designs of the Chilians be permitted to be carried out, almost every 
 such resident will be reduced to destitution. The watering places of Chorillos, Bar- 
 ranco, Miraflores, and Ancon are only the resorts of invalids and convalescents. They 
 are neither centers of trade, commercial ports, or military posts ; and of the elegant 
 and costly residences, a great portion pertain to neutrals, aud are the abodes of their 
 wives and children, who are now perturbed with fear and alarm at the impending 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 353 
 
 danger, fears unfortunately too well founded, as we have seen, so far that the war as 
 carried on by the Chilian fleet has been but the marauding attacks of pirates and buc- 
 caneers, with the exception in favor of those of the seventeenth century, that their 
 valor led thein to attack fortsand fortified places to conquer and pillage; whereas we have 
 seen during the last year that the bravery of the Chilian naval forces has been displayed 
 mostly in attacks on the defenceless, where tbe groans of the sick, the supplications 
 of women, and the wails of children have been the only resisting force, and where 
 against snch fearful foes plunder, conflagration, murder, violation, utter ruin, and dis- 
 aster have accompanied their footsteps, and to such an unwarranted and barbarous 
 extent has this proceeded as to call forth the unanimous and indignant protest of dip- 
 lomatic representatives of all civilized nations at Santiago, Chili. 
 
 Callao, the great center of foreign trade with Peru, is a city of 35,000 to 40,000 in- 
 habitants, of which more than two-thirds are neutrals. Around the ancient fortresses 
 of the Spanish rule, has grown up an important commercial town of almost exclusive 
 foreign enterprise ; and, although international law provides that the fortified places 
 of the enemy are legitimate points of attack, still, to day, the enormous range of the 
 instruments of modern warfare permit an insignificant, force to destroy, almost with 
 impunity, large and populous cities ; and, as we have seen at Arica and other points 
 on the coast, the Chilian ships of war have preferred to make the peaceful and neutral 
 dwellings of those places the objective point of their artillery rather than risk a possi- 
 ble disaster from a duel with the batteries, and that hitherto, women and children 
 have been the victims of those valorous encounters. 
 
 Considering, therefore, that we have well grounded precedents to fear the destruc- 
 tion of our homes and property, and the sacrifice of the lives of ourselves, our 
 wives, and children ; and further, that the greater number of the ports of Peru are 
 mere business and commercial centers or health resorts of invalids, surrounded, for 
 leagues, by inhospitable and impracticable belts of desert where the meaDS of flight or 
 removal are scanty and altogether inadequate. 
 
 And, further, that we have left our country to establish its trade and extend its com- 
 merce and influence in Peru and to contribute to its greatness under the solemn pledge 
 of protection and such interpretation of the code of international warfare as may miti- 
 gate and avert unnecessary attacks upon our lives and the destruction of our property 
 when such operations, as in the present case, do not conduce either to the termination 
 of the war or to the harassing or weakening of the enemy. 
 
 And, further, that we cannot see or suffer that the strenuous efforts of our government, 
 our citizens, arid ourselves, exerted for a number of years to the end of asserting and 
 securing our proper amount and proportion of trade, commerce, and influence, in this 
 South American republic, be destroyed in a manner not justified by legitimate war- 
 fare nor with due regard to the rights of neutral citizens of friendly nations. 
 
 And, further, that Chili, founded upon the bombardment of Valparaiso in 1866, by 
 the Spanish naval forces, in which foreign residents were the chief sufferers, seeks to- 
 day to spread dismay and terror among their enemies by the devastation and destruc- 
 tion of neutrals and non-combatants upon whom has fallen, so far, almost the entire 
 consequences of the war. 
 
 Therefore, we here most earnestly petition your excellency to take such steps as you 
 may, in your superior wisdom, consider best adapted for the protection of ourselves, 
 families, and property, and to make on our behalf a most earnest and effective remon- 
 strance against the proposed attacks upon our defenseless residences in Chorillos, 
 Barranco, Miraflores, Ancon, Chimbote, etc., and to exert the whole weight, influence, 
 and discretionary power of your position, to mitigate and avert the evils of a bombard- 
 ment of the town of Callao, limiting so far as diplomacy may avail, the danger and 
 destruction to the combating forces of the forts and ships of war, and to the end and 
 purpose of using all precautionary means of redress and protection in our power. We 
 here make this public and solemn collective protest against the manner in which Chili 
 has, and proposes to carry on the war, as inhuman, barbarous, and unworthy of a civil- 
 ized nation, and against the destruction of ourselves and property by her armed forces, 
 who have thus far directed their attacks against us, peaceful and non-combating neu- 
 trals, and we do demand and claim, through our government, just indemnity and pay- 
 ment from the Republic of Chili for all losses, damages, whatsoever, which we have 
 suffered or may hereafter suffer, through the acts of Chilian forces not justified by the 
 rules of modern civilized warfare. 
 
 We are, sir, your excellency's most obedient servants. 
 
 Lima, March 30, 1880. 
 
 JOHN C. MEI6GS, 
 A. A. BLIVEN, 
 (and sixty-six others.) 
 
 S. Ex. 79 23 
 
354 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 251. 
 
 Mr. Ghrixtiancy to Mr. JEvarts. 
 
 No. 148.] Legation of the United States, 
 
 Lima, Peru, April 6, 1880. (Received April 27.) 
 Sir : I have the honor to inform you that I have written to J. W. 
 Merriam, our consul at Iquique, under date of 5th instant, giving him 
 an exact copy of so much of your dispatch No. 65 as relates to his 
 official duties, which he will, of course, follow. 
 
 have, &c. 
 
 I. P. CHRISTIANCY. 
 
 No. 252. 
 
 Mr. Christlancy to Mr. JEvarts. 
 
 No. 151.] Legation of the United States, 
 
 Lima, Pern, April 6, 1880. (Received April 27.) 
 
 Sir : Referring to your dispatch No. 63, I have the honor to inclose 
 herein a copy of my official note to the secretary of foreign relations 
 of Peru, of April 3 (No. 39), calling his attention to the eighteenth 
 article of the treaty between the United States and Peru, and express- 
 ing to him the views entertained by our government of the effect of 
 that treaty as to American vessels transporting nitrates from that part 
 of Peru now in the military occupation of Chili. 
 
 I desire further to say, that from the first appearance of the circular 
 of the secretary of foreign relations I had taken the same views of the 
 clause to which you allude that you have expressed in your dispatch. 
 But as I knew that Peru had no cruisers which could safely get south 
 of Iquique for the present, I looked upon that clause in the decree as 
 brutum fulmen, an abstraction so far at least as the United States were 
 concerned ; and thought it good policy to allow the other foreign repre- 
 sentatives here to deal with that abstraction, until it should become a 
 practical question. 
 
 I have, &c. 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure 1 in No. 151.] 
 
 Mr. Ckristiancy to Senor Calderon. 
 
 No. 39. J Legation of the United States, 
 
 Lima, Peru, April 3, 1880. 
 
 Monsieur le Secretaire : By reference to the letter of Hou. Wm, M. Evarts, Sec- 
 retary of State of the United States, to your excellency, dated the ] st of March last, 
 which I had the honor to send to your excellency to-day, it will be seen that I am ex- 
 pected to explain to your excellency the views which my goyernment entertains of 
 that part of your excellency's circular of the 14th January last, which in effect, de- 
 clares that the flag of a neutral and friendly nation shall not protect from capture, by 
 Peruvian cruisers, nitrates shipped under the authority of Chili from that part of Peru 
 in military possession of Chili, upon such vessels of neutral and friendly nations. 
 
 In the performance of the duty thus imposed upon me, I have the honor to call yonr 
 excellency's attention to the eighteenth article of the treaty of 1870, between the United 
 S-Utea-and Peru,.and to inform you that in the opinion of the Government of the United 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 355 
 
 States the shipment of such nitrates upon vessels owned by citizens of the United 
 States is directly and expressly covered and protected by said article, which in sub- 
 stance (among other things) provides, that free ships shall give freedom to goods, and 
 that everything shall be deemed free which shall be found on board the vessels belong- 
 ing to the citizens of either of the contracting parties, although the whole lading, or 
 A part thereof should belong to the enemies of either, articles contraband of war al- 
 ways excepted; and that, in the opinion of the Government of the United States, if a 
 Peruvian cruiser should capture an American vessel, or seize its cargo, or any part of 
 it, because that cargo, in whole or in part, should consist of the nitrates referred to in 
 the circular of your excellency, such capture or seizure would constitute a clear viola- 
 tion of said eighteenth article of the treaty. 
 
 The Government of the United States, therefore, confidently trusts that the Gov- 
 ernment of Peru, upon having its attention thus called to the treaty, will, from its 
 friendly disposition to the United States, and its desire to preserve inviolate the faith 
 of its treaty,. either so modify the circular referred to, or will give such orders as may 
 prevent an act which would give to the United States such just cause of complaint. 
 
 The undersigned will not permit himself to doubt that, upon a careful examination 
 of the treaty, this reasonable request will be readily complied with. 
 
 I improve this new opportunity to renew to your excellency the assurance of my 
 high regard and esteem. 
 
 I. P. CHEISTIANCY. 
 
 Exc'mo Senor Don Pedro Jose Calderon, 
 
 Secretario de Belaciones JExteriores, $ : c, #c, del Peru. 
 
 No. 253. 
 
 Mr. Christiancy to Mr. JEvarts. 
 
 INb. 156.] Legation of the .United States, 
 
 Lima, Peru, April 14, 1880. (Keceived May 5.) 
 
 Sib : I have been ill for the last ten days, a portion of the time con- 
 fined to my bed, which I hope will be sufficient excuse for any deficiency 
 in my correspondence. I dictate this to my clerk, being unable myself 
 to write. The military situation is stibstantially as follows : 
 
 The Chilian land forces have taken Moquegua and Tarata, and are 
 reported now to have reached Locumba, while the Peruvian forces, 
 under the command of Montero, have left Arica and are now supposed 
 to be at Tacna, except perhaps a thousand men left manning the bat- 
 teries and defending Arica. There are also understood to be several 
 thousand of the Peruvian forces at Arequipa and its vicinity. It is 
 also reported that there are some of the Bolivian forces at or near 
 Tacna co-operating with Montero. We hear various rumors that a 
 battle has been fought in that vicinity, resulting in favor of the Peru- 
 vians. I think all such report as yet wholly unreliable. 
 
 By water the Chilians have full command of the sea, and on Satur- 
 day last, the 10th instant, a portion of the Chilian fleet, consisting of 
 Blanco Encalada, Huascar, Angamos, Pilcomayo, and Matias Cousino, 
 and two other vessels (whose names are not yet ascertained), with some 
 torpedo launches, appeared at the northern entrance of the port of 
 Callao, just before daylight, and an attempt was made by a torpedo 
 launch to blow up the Peruvian corvette Union, which failed on account 
 of the launches and timber collected around the Union for the purpose 
 of making repairs. On the same day a notice was given by the Chilian 
 admiral to the dean of the consular corps of Callao of his intention to 
 blockade that port, and giving eight days for the neutral vessels then 
 in port to load, unload, and depart ; at the same time intimating his 
 intention to attack the military defenses of that port, and that it might 
 become necessary for him, in attacking such military defenses, to fire 
 
 ...-, i j.v , 
 
356 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 ■ 
 
 The fair inference from his language was that the same period of 
 eight clays would be given for the peaceable inhabitants to remove 
 themselves and their movable property out of the range of the guns. 
 The consular corps subsequently requested of him to extend the period 
 of eight to fifteen days,, to which he, on the 13th, by letter addressed 
 to the corps, assented to add to the former notification two days, mak- 
 ing the period ten instead of eight days, and at the same time signify- 
 ing that the same length of time would be given for neutrals and non- 
 combatants to remove from the town before he should open fire upon 
 its defenses, unless, in the mean time, he should be provoked to an 
 earlier attack by being fired upon by the Peruvian forces, or an earlier 
 attack should become necessary by some demonstration made by such 
 Peruvian forces. 
 
 Considering that Callao is a fortified town, defended by forts, batte- 
 ries, and military forces, which, by the laws of war, the Chilian fleet 
 have a right to attack, I deem this notice entirely reasonable. 
 
 In the mean time it is understood that the regular line of mail steam- 
 ers from Panama to Callao and back will be allowed to enter and depart 
 with the mail and passengers, but we have no assurance, as yet, that a 
 similar privilege will be accorded after the ten days expire, the 20th of 
 this month. 
 
 It is therefore quite probable that it may be several weeks before I 
 shall again be able to communicate with you. 
 
 The inhabitants of Callao are fleeing with their property to Lima, and 
 American citizens both of Callao and Lima are appealing to this lega- 
 tion for protection, and though I am out of health, and have no means 
 of protecting them, except such as the United States flag and the posi- 
 tion of a minister of the United States may give, I propose to remain at 
 my post and afford them all such protection as may be in my power ; 
 though my own private affairs make it imperative that I should leave 
 for the United States at the first moment I can receive leave for that 
 purpose, twice already requested, but not yet answered. I should not 
 now leave until the present crisis is over, if I had the express permis- 
 sion of the President; but I may be allowed again to call the attention 
 of the Department to my two letters requesting a temporary leave of 
 absence, of which I may avail myself at the first moment that the 
 public interest will permit. 
 
 I inclose, herein, a copy of the South Pacific Times of the 13th instant, 
 sli owing substantially the present position of affairs here. 
 
 I will further say that the paper currency of Peru has, since the noti- 
 fication of the blockade, fallen to eight paper soles for one American 
 dollar. 
 
 I have, &c, 
 
 I. P. CHRISTIAXCY. 
 
 Xo. 251. 
 
 Mr, Christiancy to Mr. Evarts. 
 
 So. 157.] Legation of the United States, 
 
 Lima, Pent, April 18, 1880. (Eeceived May 17.) 
 
 Sir : Though scarcely able to be out of my bed, yet, as events are 
 becoming interesting here, I make this effort to keep' you informed. 
 
 Referring to my last dispatch in reference to the progress of the war 
 (So. 156) I will say that since that dispatch the diplomatic corps have 
 
AFFAIRS IN CHILI, .PERU, AND BOLIVIA. 357 
 
 had two meetings, and at the meeting yesterday all unanimously ap- 
 proved and signed the communication to the Chilian admiral, a copy of 
 which I here inclose with translation. 
 
 The third point is understood to apply at present to the city of Lima, 
 six miles from the Bay of Callao (but it might be reached by shot from 
 very long-range guns from the Bay of Chorillos, say five miles, the in- 
 tention to do which has been declared), and of course generally to all 
 other towns due notice of the bombardment of which shall not have 
 been given. 
 
 I will further say that immediately after my last dispatch, No. 156, 
 at a meeting of the ministers of England, France, and Germany, and 
 'the charge' d'affaires of Italy, it was unanimously resolved that the no- 
 tice of the blockade given by the Chilian admiral applied only to Callao. 
 
 Knowledge of this resolution was, I suppose, conveyed to the Chilian 
 admiral, when he declared that the notice was intended to apply also 
 to the towns of Chorillos, Miraflores, and Magdelena ; but I am satisfied 
 from information received through the British minister, who, as well as 
 the commander of the English naval vessels here, seems to be on very 
 friendly if not intimate terms with the Chilian admiral, that the Chilian 
 fleet do not intend to fire upon the three latter towns unless provoked 
 by hostile demonstrations therefrom, though the blockade will apply to 
 them. 
 
 The regular line of English mail steamers (upon which we all have to 
 rely for our mails north and south) is no longer permitted to enter Cal- 
 lao. But the port of Ancon (20 miles north) is as yet open, and a 
 ■steamer from there to Panama is expected to leave on the 22d, by which 
 I expect this to go. 
 
 On the 20th, at 12 m., we expect the bombardment upon Callao to 
 ■commence. The Chilians have eight vessels here, among which are 
 Blanco Encalado, the Huascar, and the Angamos, and it is believed 
 they will have more before the attack is commenced. Our consul, Mr. 
 Clayton, has, with my advice, removed the archives of the consulate on 
 board the Onward to await the result. 
 
 On land, the only news of importance since my last is that Campero, 
 after having put down the revolution against him at La Paz, has joined 
 Montero, the Peruvian commander at Tacna, with from 2,500 to 3,000 
 men (and that more are coming from Bolivia), making at present, of the 
 allies at Tacna, some 13,000 or 13,500 men. The Peruvians are also 
 ■said to have some 7,C00 at Arequipa. 
 
 Such, in brief, is the present situation, but a few days may change 
 it all. 
 
 In the mean time the Peruvian paper soles are quoted for exchange 
 at from 6| pence to 7 pence, or, in American gold, at, say from 13 to 14 
 •cents per sol. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 P. S. — I inclose copy of the answer of the Chilian admiral to the com- 
 munication of the diplomatic corps above referred to. 
 
 P. S. 2d, April 21. — No bombardment yet commenced on Callao. 
 
358 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 flnclOBure 1 in No. 157— Translation.1 
 
 Diplomatic corps to Admiral Biveros. 
 
 Lima, April 17, 1880. 
 The undersigned, after reading the note of Admiral Riveros, to the consular corps 
 of Callao, are convinced that, in conformity to his declarations, the chief of the block- 
 ading squadron, on making use of the rights of war, coinciding with his own interest, 
 is aware of the rights dne to neutral individuals and their properties. Nevertheless, 
 the correspondence between Admiral Riveros and the consular corps leaving some 
 points uncertain, they deem it their duty, in order to protect the interests of those un- 
 der their charge, as well as to cover their responsibility towaids their respective gov- 
 ernments, to make the following declaration : 
 
 1st. That they reserve all questions in regard to the damages which may be caused, 
 without military necessity, to the persons and property of neutrals. 
 
 2d. That they especially make these reservations in case of the bombardment of open 
 and undefended localities. 
 
 3d. They do so likewise in the case of a bombardment of a town not expressly desig- 
 nated in a previous notification. 
 
 The undersigned hope that the Chilian admiral will be pleased to acknowledge the 
 receipt nf these reservations, and avail themselves of this occasion to offer him the. 
 assurance of their high consideration. 
 The minister of Ecuador : 
 
 J. DE T. PINTO. 
 The minister of the Argentine Republic : 
 
 JOSE DE UR1BURU. 
 The minister of France : 
 
 E. DE VORGES. 
 The minister of the United States : 
 
 LP. CHRISTIANCY. 
 The minister of Great Britian : 
 
 SPENCER ST. JOHN. 
 The minister of Germany : 
 
 V. GRAMATZKI. 
 Charge d'Affaires of Italy : 
 
 J. B. VIVIANI. 
 Charge d'Affaires of Brazil : 
 
 MELLO Y. ALVIM. 
 
 flnclosure 2 in No. 157. — Translation.! 
 Admial Eiceros to the diplomatic corps. 
 
 April 18, 1880. 
 
 The undersigned has the honor to acknowledge the receipt of the e%teemed collective 
 note, dated yesterday, which the honorable diplomatic corps of Lima, has been pleased 
 to address to him. 
 
 That valuable communication has for object to establish declarations and reserva- 
 tions on the following points : 
 
 1st. In the case that the persons and property of neutrals will be damaged without 
 military necessity. 
 
 2d. In case of the bombardment of open and undefended localities. 
 
 3d. In case of the bombardment of a town not expressly designated in a previous 
 notification. 
 
 The undersigned, while sustaining the declarations and communications which, in 
 the proper opportunity, addressed to the honorable consular corps of Callao, and to 
 the commanders of the naval forces of neutrals in this harbor, has the honor to ac- 
 knowledge the receipt of that respectful note, placing to the knowledge of the hon- 
 orable gentlemen who signed it that, by the first opportunity, he will make it his duty 
 to transmit the original to the Supreme Government of Chili. 
 
 The undersigned commander thinks proper to repeat here his declaration that, as- 
 far as the necessities of war and his instructions will permit, he will never forget th& 
 duties which the principles of humanity impose upon him, and the respect due to- 
 those who have not the character of belligerents. 
 
 The undersigned has the honor to offer, &c, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 359 
 
 No. 255. 
 
 Mr. Evarts to Mr. Christianey. 
 
 No. 76.] Department of State, 
 
 Washington, April 19, 1880. 
 
 Sir : I have to acknowledge the receipt of your No. 140, in which you 
 inclose a report of Consul Montjoy, relative to the destruction of neutral 
 property at the Lobos Islands by Chilian vessels. 
 
 The Department had received information from our minister at San- 
 tiago of the issuance of the order, which appears to have been in part 
 carried out at these islands, on the occasion referred to, and also of a 
 representation made by the minister to the Chilian Government, to the 
 end of procuring a modification of the order in the interest of neutral 
 citizens of the United States. This government will not fail to protest 
 to the minister of Chili in Washington against the conduct of the war, 
 to the injury of citizens of the United States ; and should Peru pursue 
 a like course to that of Chili, it will be expected that you will make due, 
 representations to the minister of foreign affairs, to prevent damage to 
 the citizens of this country an d to restrict the collisions of a military 
 character, the cruelties and devastations of the war. ■ 
 I am, &c, 
 
 , WM. M. EVAETS. 
 
 No. 250. 
 
 Mr. Evarts to Mr. Christianey. 
 
 No. 77.] Department of State, 
 
 Washington, April 23, 1880. 
 Sir : I transmit herein for your information a copy of a late* instruc- 
 tion sent to Mr. Adams, the newly-appointed minister of the United 
 States to Bolivia, respecting a proposition of Chili touching an ex- 
 change between those countries of prisoners of war. 
 I am, sir, &c, 
 
 WM. M. EVAETS. 
 
 No. 257. 
 
 Mr. Tracy to Mr. Evarts. 
 
 [Translation.] 
 
 Peruvian Legation, 
 New YorJc, April 20, 1880. (Received April 27.) 
 Sir: Yesterday, Sunday, the 25th instant, this legation received, 
 through the Peruvian consul-general at Pauama, a telegram from the 
 Supreme Government of Peru, which reads as follows : 
 
 Callao blockaded. Peruvian Government has declared the inlets to be major ports, 
 and the ports between Casma and Pisco to be minor ports. 
 
 * For inclosure see correspondence with United States minister to Bolivia, document 
 
 No. 22. 
 
360 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I have the honor to communicate this to your excellency for such 
 action as you may deem proper, and I take advantage of this oppor- 
 tunity to renew, &c, 
 
 JOSE CAELOS TRACY. 
 
 No. 258. 
 
 Mr. Evarts to Mr. Tracy. 
 
 Department of State, 
 
 Washington, April 28, 1880. 
 
 Sir : I have the honor to acknowledge the receipt of your note of 
 the 26th of April instant, communicating information of the blockade 
 of Oallao, &c, and to say in reply that I have acquainted the Treasury 
 Department with the intelligence received. 
 Accept, sir, &c, 
 
 WM. M. EVARTS. 
 
 No. 259. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 159.] Legation of the United States, 
 
 Lima, Peru, April 28, 1880. (Received May 24.) 
 
 Sir : Referring to my dispatch No. 157, I have the honor to state 
 that no authentic news has since been received as to the operations of 
 the armies in the south ; that on the 22d instant, at 2 o'clock p. m., the 
 Chilian fleet, blockading Callao, or rather that part of it consisting of 
 the Angamos, the Huascar, and the Pilcomayo, opened fire upon the 
 defenses of Callao, and upon the monitor Atahualpa, the corvette 
 Union, and the transport Oroya, which latter were inside the mole, and 
 in great part protected by it. 
 
 The fleet fired about 120 shots, killing one man on the Union and 
 wounding one or two others ; wounding 4 on the Atahualpa, and on the 
 Rimac 1, killing one man in the arsenal and three horses, and wound- 
 ing two men, also wounding one man at the south battery. 
 
 This seems to have been the extent of the injuries inflicted by the 
 bombardment. 
 
 The batteries fired somewhat more shots than the fleet, though most 
 of them fell short of reaching the fleet, which was some 5,000 to 5,500 
 meters from the shore, and had the advantage of longer range guns. 
 We have no information of the casualties which may have happened 
 to the Chilian fleet. 
 
 The fleet drew off before 5 o'clock p. m., and the attack has not been 
 renewed, though the blockade is strictly kept up. 
 
 "We hear rumors to-day that the port of Ancon will be blockaded on 
 the 1st May, but no notice yet given. Should it be so our mails can 
 only be sent from Chiinbote, unless some arrangement shall be made 
 between the neutral naval vessels and the Chilian admiral to send and 
 receive the mails. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 361 
 
 P. S. — Whether the Peruvian batteries threw shot to tbe full extent 
 of their range may be doubtful. I can only say that if I had been in 
 command of those batteries they should not, on that occasion, have 
 thrown their shot more than half or two-thirds their range, for reasons 
 which must be obvious to every one who knows that the guns of the 
 fleet had really the longest range. 
 
 I. P. C. 
 
 No. 260. 
 
 Mr. Gliristiancy to Mr.- Uvarts. 
 
 No. 162.] Legation of the United States, 
 
 Lima, Peru, May 5, 1880. (Received May 31.) 
 
 Sir : I have the honor to inform you that since my dispatch, No. 
 159, absolutely nothing of any moment has taken place on land or sea 
 in this Chili, Peru, and Bolivian war, so far as intelligence has been re- 
 ceived here. 
 
 The attempt to bombard Callao has not been repeated, and it seems 
 to be the opinion of the neutral naval officers here that it will not be 
 until the result between the land armies in the south shall be known. 
 
 The Peruvians, since my last, have erected another -water battery of 
 heavy guns. 
 
 The blockade of Callao is strictly enforced, but the port of Ancon, 
 20 miles north (communicating with Lima by railroad), is still open, and 
 no notice yet given of intention to blockade, though we are expecting 
 it daily. 
 
 I am, &c, 
 
 I. P. CHRISTIANOY. 
 
 No. 261. 
 Mr. Gliristiancy to Mr. Evarts. 
 
 No. 165.] Legation of the United States, 
 
 Lima, Peru, May 12, 1880. (Received June 5.) 
 
 Sir: I have the honor to inform you that on the 10th instant, at 2 
 o'clock p. m., the Chilian fleet renewed the bombardment of Callao and 
 its defenses, and continued it until after 5 p. m., all the vessels of the 
 fleet participating, and firing together about 364 shots, and the batteries 
 and Peruvian shipping replying with less than half that number. 
 
 The range of the 500-pound Rodman guns and of the 1,000-pound 
 guns of the batteries was found to be greater than expected, and many 
 of the 500-pound guns fired clear over the enemy's vessels. But very 
 little damage was done by the guns of the Chilian fleet, none to any of 
 the batteries. The Peruvian corvette Union and the transport Oroya, 
 as well as the transport Chalaco, were slightly injured, and a few men 
 wounded upon them. The only report of killed and wounded given by 
 the government is 3 killed, of whom 2 were women, and 12 wounded, 
 mostly non-combatants. But our naval officers think there must have 
 been more, and that the Peruvian authorities purposely conceal the 
 facts. 
 
362 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 The Huascar was hit once or twice by guns from the batteries, and the 
 Peruvians claim that they also hit the Blanco and the O'Higgins; but 
 if this is so, it is clear that no serious damage was done. 
 
 Yesterday notice was given by the Chilian admiral of the blockade 
 of Ancon, giving eight days, of which this is the first, for neutrals to- 
 quit the port. How we are to get our mails away after that is not yet 
 determined. 
 
 We have rumors here of some successes of the allied army in the south. 
 It is said tbey surprised and took Moquegua with all the sick and 
 wounded of the Chilians, amounting to some 1,600 men, and some 800 
 soldiers on duty. But this needs further confirmation before it can be 
 taken for granted. 
 
 No one here yet talks of peace. 
 I am, &c, 
 
 I. P. CHRISTIAXCY. 
 
 Xo. 262. 
 Mr. Christ iancy to Mr. LJvarts. 
 
 No. 172.] Legation op the United States, 
 
 Lima, Peru, May 28, 1880. (Received June 26.) 
 
 Sir: I have the honor to inform you that I have this moment received 
 the letter of Mr. Osborn of 13th instant, from Santiago. 
 
 I have now only time to refer you to a copy of my letter to Mr. Osborn 
 of May 7, which I inclose, and. to say that, so far as yet known here, 
 the situation is exactly the same as when that letter was written. 
 
 It is generally believed here that the land armies in the south must, 
 ere this, have come to a decisive engagement, and all efforts for and pros- 
 pect of bringing about a peace, hinge npon that result. I will say here 
 that the supreme chief of Peru fully understands the position of the 
 United States in reference to peace, and cordially approves it, and that 
 Bolivia will undoubtedly concur with Peru. But I must say also, that 
 I have no assurance from him that he would be ready to treat for peace 
 on any such terms as indicated in Mr. Osborn's letter, even in case of 
 a crushing defeat of the allied forces in the south. And my own impres- 
 sion is "that he would not listen to such terms under any calamities the 
 Chilians may be able to inflict. 
 
 On the other hand, should the allies be successful in the land con- 
 test, I think there might be a fair opening for efforts to secure peace, 
 as the terms in that event would not be likely to be so humiliating to 
 Peru. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 flnclosnre in No. 17-3.] 
 
 Air. Christialtcy to Air. Osborn. 
 
 No. 60. (Misc.)] Legation op the United States, 
 
 Lima, Peru, Alay 7, 1880. 
 Sir: Referring to the instructions of the State Department in the Secretary's dis- 
 patch of March 9, in reference to influences likely to be brought to bear npou Chili 
 on the one side and Peru especially on the other, to constrain them to make peace, and 
 the policy of onr government in such a contingency, as well as the policy of friendly 
 mediation, and referring you also to the instructions of identical effect which I am 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 36& 
 
 assured have been sent to yon, I will say that I am ready and anxious to contribute-by 
 any legitimate means in my power to bring about a peace, and to carry out the policy 
 indicated by our government, at the earliest practicable moment, and in doing so I 
 wish to co-operate cordially with you. 
 
 But while the present dead-lock continues, and especially until the land armies now 
 in the south of Peru shall have had a decisive battle, so as to show that one or the 
 othir is clearly victorious on land, I see nothing which can be done here in the desired 
 direction. I hope you will watch matters in Chili as relates to these questions and 
 keep me posted. 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 263. 
 
 Mr. Christiancy to Mr. JEvarts. 
 
 No. 173.] Legation of the United States, 
 
 Lima, Peru, June 7, 1880. (Eeceived July 2.) 
 
 Sir : Eeferring to my dispatch No. 165, in relation to the progress 
 of the war, I have to say : 1st, in relation to the blockade of Callao and. 
 Ancon, that it has been effectual as a blockade, but that several bom- 
 bardments of Callao have since been made by the Chilian fleet with 
 little effect and no decisive results ; the damage done to the town and 
 Peruvian shipping not amounting to one-tenth the cost of the ammuni- 
 tion expended by the Chilian fleet. 
 
 Many attempts have been made by both sides with torpedoes, but. 
 all have been utter failures so far as relates to the blowing up of ves- 
 sels. Yet the fear of them had evidently operated to keep the block- 
 ading squadrons at this and other ports at a respectful distance, es- 
 pecially at night. There have been several encounters of the torpedo 
 launches in the bay of Callao at night, none of which was of much im- 
 portance, except that of the night of the 24th May, in which the Chil- 
 ians suffered most, losing their steel torpedo launch, the best in their 
 service, which cost from $125,000 to $150,000, and was of greater capa- 
 city than any of the Peruvian or any other of the Chilian launches. 
 
 I send you the official report of this transaction from Lieutenant 
 Galvez, the hero of the occasion, as published in the South Pacific 
 Times. If it is not entirely intelligible, it is probably owing to the fact 
 that the transaction itself was somewhat confused, even to the actors 
 themselves. (See South Pacific Times, of June 4, inclosed, article 
 marked T y T .) 
 
 So much for the naval operations. 
 
 On land. For many weeks we were without any reliable news of im- 
 portance. For some two months the hostile armies appeared to be play- 
 ing what the French call cache-cache, hiding from each other, till finally 
 the allied forces, with the exception of 3,000 to 4,000 men at Areqtfipa, 
 under Colonel Leiva, took up their position at Tacna ; and the Chilians, 
 after several times changing their base on the coast and their position 
 in the interior, owing, it is supposed, to the difficulty of transporting 
 their artillery and stores, concentrated their forces at or near Sama, 
 and moved upon Tacna in force. 
 
 As far as the facts can be ascertained, almost all of which came from 
 Chilian sources, and mostly unofficial, an affair of outposts took place 
 near Tacna, on the 25th May, in which the Chilians had the advantage. 
 On the 26th the battle became general, and was continued into the 27th,, 
 when the allied forces were driven from their positions and from the 
 town of Tacna, and the Chilian forces took possession of the town, the ; 
 
364 AFFAIRS IN CHILI, PERU, AXD BOLIVIA. 
 
 allies retreating and taking up a strong position at Palca. (See the 
 map inclosed, made by my clerk, who is familiar with that region, and 
 has given the names and positions of several of the places not found on 
 any general map.*) 
 
 The first intelligence we received here of the above transaction was 
 June 1, when the small Chilian steamer Tolten arrived and cominuni- 
 «ated with the Chilian fleet, and the only dispatch the steamer brought 
 was " Tacna taken ; Campero prisoner." 
 
 On the 5th instant the English man-of-war G-anet arrived here, hav- 
 ing left Arica on the 2d instant, and the only entirely reliable news 
 she brings is the following sent me by Captain George Brown, of the 
 United States steam frigate Alaska. 
 
 At Arica all that was known on the 2d, when she left, was that the Chilians occu- 
 pied Tacna on the 27th ultimo, after two days' righting, and drove the Peruvians into 
 the hills and beyond the point where the water supply cnuld possibly be cut off. 
 
 There are only 1,500 Peruvian troops in Arica : off the port are three Chilian trans- 
 ports loaded with troops and supplies; also two men-of-war. 
 
 By various reports since heard from Peruvian, and some from Chil- 
 ian sources, it is left in great doubt whether Campero was wounded or 
 taken prisoner; it is reported that Montero was the general wounded, 
 and not taken prisoner. It is also reported, and generally believed here, 
 that Colonel Leiva, with 3,000 or 4,000 men from Arequipa, was at Ua- 
 baya or Sama on his way to join the main body of the allies at Pachia, 
 but how much of this is reliable it is at present impossible to say. 
 
 What is reliable among all the contradictory reports is : 1st. That 
 the allies suffered a defeat at Tacna ; that they have fallen back towards 
 the Bolivian frontier, having lost 8 pieces of cannon and several Cat- 
 lings, a loss which cannot be supplied. 2d. That both parties fought 
 well, and the contest was sanguinary, but that the Chilians, by superi- 
 ority of number and superior artillery and cavalry, triumphei. 3d. 
 That a part of the Chilian army his been sent to attack Arica from the 
 land side, while the Peruvians have not over 1,500 men and some 14 
 heavy guns, formerly directed to the seaport, now turned to the interior 
 to defend the town ; and the probability is that the next steamer from 
 the south will bring the news of the capture of Arica. 
 
 It has been currently reported, and the foreign ministers here gener- 
 ally believe the report, that as soon as the Chilians should be clearly 
 victorious on land in the south they would propose terms of peace, but 
 this has not yet been done, and the government here do not yet con- 
 sider the disasters in the south at all decisive ; and the spirit of the 
 people here, and of the supreme chief who represents them, is such that 
 it is felt to be useless to propose to them negotiations for peace until 
 they recognize the utter hopelessness of continuing the contest. All 
 the representatives of foreign powers here are, so far as I can judge, as 
 anxious for peace as I am. 
 
 My relations are entirely cordial with the supreme chief; and should 
 Arica be taken, as seems now probable, and should the Chilians then 
 offer terms of peace, I shall venture to make to him such suggestions to 
 this end as 1 think just and advisable under all the circumstances of 
 the case; but I do not intend to go further than to suggest. I will not 
 take upon myself the responsibility of advising, as this might be looked 
 upon as officious. Chili, I am satisfied, wants peace as well as Peru; 
 but the great obstacle, in my opinion, is likely to be the exorbitant de- 
 mands of Chili, flushed with victory by land and by sea. But I think 
 
 * The map referred to is omitted from the present publication. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 365 
 
 there will be quite a general concurrence of all the foreign representa- 
 tives here to aid in moderating such demands ; and if the effort of ne- 
 gotiation shall once take the shape of a proposition from either party 
 there would be good ground for believing that a proper result might be 
 reached. 
 
 The first step would naturally be an armistice. The Chilians would 
 probably demand, in the first instance^ the whole province of Tarapaca,, 
 but this might, in the progress of negotiation, come down to a proposi- 
 tion for a pecuniary indemnity for the expenses of the war, with a claim 
 by Chili to hold the province as a security for the indemnity until it 
 should be paid, &c. But if the principle of indemnity can be once 
 agreed upon, and perhaps the original question of boundary, the foun- 
 dation is laid for arbitration ; and from what I know of the disposition 
 of this government, and believe of that of Bolivia, as well as what Mr. 
 Osborn writes of the disposition of Chili, I think the United States- 
 would be selected as the arbitrator. Complications may arise as to 
 Bolivia, and for this reason it is particularly unfortunate that Mr. Adams- 
 has not yet arrived. But I hope for his arrival by the next steamer. 
 
 No effort of mine shall be wanting to bring about a peace. But I 
 have great fears that this government, embittered as it is by defeat, 
 may refuse any terms. Chili cannot conquer Peru, though she may 
 financially ruin her, and this is not in the interest of any nation repre- 
 sented here. 
 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 [Inclosure ~So. 1 in No. 173.— From the South Pacific Times, June 4, 1880. J 
 THE ENGAGEMENT BETWEEN THE PERUVIAN AND CHILIAN LAUNCHES. 
 
 (Official report.) 
 
 The following is a translation of the official report of Lieutenant Galvez of the en- 
 gagement between the Peruvian launch Independencia and two Chilian launches on 
 the night of 24th ultimo, already alluded to : 
 
 Lima, May 29, 1880. 
 To the Captain of the Navy, Chief of the Staff of the Department : 
 
 In compliance with my duty I have to advise you of the occurrences during the night 
 of the 24th ultimo, when I was fulfilling the commission confided to me by your de- 
 partment, which had placed under my orders the steam-launch Independencia. 
 
 At 11 p. m. I took command of the launch, having under my orders the midshipman 
 San Martin and thirteen men, consisting of engineers, firemen, the coxswain and sea- 
 men ; the doctor, Don Manuel Ugarte, also embarked, having obtained permission to 
 accompany me on the expedition. 
 
 From 11 p. m. until 2 a. m. nothing extraordinary occurred, and having carried out 
 the orders I had received I was about to return, when I observed that a Chilian launch 
 was advancing from the point of the island to the anchorage of the neutral vessels. 
 
 As was my duty I went to meet ber and fired at her four shots from our cannon. 
 Unfortunately the ring-bolts gave way and the gun was rendered useless. 
 
 The Chilian launch, of far better speed than ours, placed herself out of our reach, and 
 I then gave orders to retire. A few moments afterwards I saw the launch I had chased, 
 accompanied by a larger one with two funnels, was coming towards me to cut off my 
 retreat. 
 
 The greater speed of these launches enabled them to effect their object, and in a few 
 moments they were within musket shot. I gave orders immediately to fire from our 
 Gatling gun and the muskets we had, but another accident happened : the Gatling 
 gun got out of order, and I found myself without the means of attack against the 
 enemy, who was much stronger, and who was now rapidly advancing. 
 
 I had with me in the launch a torpedo loaded with 100 pounds of common powder, and 
 
•'366 AFFAIES IX CHILI, PERU, AND BOLIVIA. 
 
 without loss of time, and assisted by Sefior Ugarte, I fired the fuse, using for this pur- 
 pose the flame of the lamp, and so held the torpedo until the bow of the Chilian 
 launches touched our stern. Senor Ugarte and myself threw the torpedo on the deck of 
 -the enemy's launch, but as it .occurred tome that the five-minute fuse might allow 
 them time to cut it or throw the torpedo overboard, and thus frustrate my project 
 of blowing them up, I fired at the torpedo with the arm I had, causing it to ex- 
 plode at the second shot. Senor Ugarte and myself were thrown by the explosion to 
 the bottom of our launch, and, although I remained stunned with the blow, I felt that 
 the enemy was firing upon us with his Gatling guns. In a few moments the water 
 inundated the Independencia, and as I felt she was going down I tried to get rid of my 
 .great-coat and mnffler ; in this I was assisted by the seaman, Pablo Villanueva, who had 
 suffered a slight contusion ; alone it would have been impossible for me to do so. The 
 Independencia was going down, taking us with her, but fortunately for me as soon as 
 she touched the bottom I made an effort to save myself and reached the surface, when 
 a few moments afterwards I was taken prisoner by a Chilian boat. 
 
 With my face and hands burnt by the explosion of the torpedo, blind, and almost 
 deaf in the first moments, and much bruisftd by my fall, I scarcely know what hap- 
 pened to me. 
 
 I was taken to the Blanco Encalada, and removed from her the same morning to the 
 -Keelder Castle, having received in both vessels the assistance which my condition re- 
 quired. 
 
 Among the Chilians who spoke with me I found Lieutenant Seiioret, who informed 
 me that the launch which he commanded had sunk, together with ours, but more for- 
 tunate than myself, he had only received a slight wound on the arm. 
 
 I cannot give you any exact account of the damages caused to the enemy, but on 
 our part I feel certain that we have to deplore the loss of the intrepid Senor Ugarte, 
 the midshipman, San Martin, and some others, because at the bottom of the Indepen- 
 dencia I felt three bodies close to me when she went down. 
 
 It is my duty to recommend to the supreme government the good behavior of the 
 crew of the Independencia ; they all did their duty, especially Dr. Ugarte, who distin- 
 guished himself and did not hesitate to sacrifice his life in assisting me to throw the 
 torpedo which destroyed the Chilian launch and our own, rather than allow the latter 
 to be taken or destroyed by the enemy. I have also to recommend the seaman, Pablo 
 Villanueva, who, at the moment when the Independencia was sinking and when we 
 were completely under the fire of the enemy, their launches being mnch higher out of 
 tha water than ours, offered to sacrifice himself with me, and assisted to save my life. 
 
 Your honor will please to bring to the knowledge of the supreme government this 
 report. There remains to me the satisfaction of having done on my part all that I could 
 in obedience to my duty as an officer and a citizen. 
 
 May God have you in his keeping. 
 
 Not being able to sign, in consequence of my wounds, my brother, Don Justiniano A. 
 -Galvez, does so at my request. 
 
 For Jos6 Galvez, second lieutenant of the monitor Atahualpa. 
 
 JUSTINIANO A. GALVEZ. 
 
 So. 26JL. 
 
 Mr. Ghristiancy to Mr. Evarts. 
 
 [Confidential.] 
 
 ~No. 175.] Legation of the United States, 
 
 Lima, Peru, June 10, 1880. (Eeceived July- 29.) 
 SrR : I have the honor to inclose to yon the copy of a confidential 
 letter of Mr. Osborn, our minister to Chili, dated May 21, in reference 
 to our consul at Iquique. Also copy of my letter of to-day to Mr. Mer- 
 riam, the consul. 
 
 Also copy of my letter to Mr. Osborn in reference to same, of this 
 -date. 
 
 I have, &c, 
 
 I. P. CHEISTIANCT. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. #67 
 
 [Inclosure No. 1 in No. 175.1 
 
 Mr. Osbcn-n to Mr. Christiancy. 
 
 [Confidential.] 
 
 Legation of the United States, 
 
 Santiago, Chili, May 21, 1880. 
 
 Sir: The mail which leaves Valparaiso to-morrow will close here in a few minutes 
 and I must therefore make my communication quite brief. 
 
 I have just returned from a conference with the minister of foreign relations, wherein, 
 among other subjects, was discussed some proceedings of our consul at Iquique, Dr. 
 Merriam. 
 
 While I was at Iquique in April, Dr. Merriam informed me of the talk which he had 
 had with Captain Lyncb,;the Chilian military officer in charge, in which Captain L. had 
 intimated that he (Merriam) was not properly observing his obligations as a neutral 
 official, and had suggested lhat it might become necessary, in a certain contingency, to 
 send him out of the district. At Dr. Merriam's suggestion I conversed with Captain 
 Lynch in regard to the matter, and in the course of our talk I requested him, if he had 
 auy complaints to make of the doctor, to correspond with his government at Santiago 
 on the subject. Knowing well of the strong sympathies of Merriam for Peru, a fact 
 which was not at all singular in view of all the circumstances, I took occasion to cau- 
 tion him regarding his course and especially against the transmission of correspondence, 
 by virtue of his privilege, to or for the enemy. He answered me that nothing of the 
 kind had been done by him, and promised me faithfully that it should not. Captain 
 Lynch, however, was quite confident that the consulate had been used for the purpose 
 of carrying on a correspondence in the interest of the Peruvian Government. In view 
 of the promises and assurances made me by Merriam — voluntary of course, for I asked 
 him for none — you can judge of my astonishment to-day at being told by the minister 
 that the government had positive evidence that our consulate in Iquique was being 
 used as had been charged. 
 
 I intimated that I had doubt in regard to ib, when he produced an envelope (which 
 had been inclosed in another addressed to Merriam, as consul) directed to the minister 
 of war at Lima, and containing official communications from General Montero. I saw 
 the direction on the envelope and the message which it contained, and know that there 
 can be no mistake about it. They assure me that it was forwarded from Arica under 
 cover to Merriam as consul, but how they got possession of it I did not learn. 
 
 There are some troops at Iquique, and I fear that if this should become known, Mer- 
 riam's life there would not be safe. I think he ought to leave there, and that some 
 other person should be named to take temporary charge of the consulate. If you should 
 see fit to make an appointment there for temporary purposes, I do not doubt that the 
 Chilian officials would recognize it. There are two Americans in Iquique by the names 
 of Holcomb and one whose name I have forgotten, living with Dr. Watrous or Walters. 
 Either of them is perfectly competent and either would, I judge, take charge of the 
 consulate if asked by you. 
 Very truly, yours, 
 
 THOMAS A. OSBORN. 
 
 [Inclosure No. 2 in No. 115.] 
 
 Mr. Christiancy to Mr. Merriam. 
 
 [Confidential.] 
 
 Legation of the United States, 
 
 Lima, Peru, June 10, 1860. 
 Dear Sir: I have just received a letter from Mr. Osborn, our minister at Santiago, 
 in which he says the Chilian minister of foreign relations, complains that your consu- 
 late is being used for the transmission of correspondence to the Peruvian Government, 
 'and that the minister produced to him (Osborn) an envelope which had been inclosed 
 in another addressed to you as consul, directed to the minister of war at Lima, and con- 
 taining official communication from General Montero. Mr. Osborn thinks that your 
 life will not be safe in Iquique, w.hen this is known there. Unless, therefore, you can 
 explain this to the authorities there in such manner as to show that you had been 
 imposed upon, and unconsciously sent this correspondence, I think it would be wise 
 for you to avail yourself of the first safe opportunity to come up to Lima or some other 
 t place jn the north until the preseut war is closed. 
 
368 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Our consols, and even our ministers may sometimes be imposed upon in such mat- 
 ters, but we most not knowingly transmit letters or communications for either belliger- 
 ent. We must preserve strict neutrality. 
 I am, i.e., 
 
 I. P. CHRISTIANCT. 
 
 [Inclosore No. 3 in No. 175.] 
 
 Mr. Christianey to Mr. Oeborn. 
 
 [Private and confidential.] 
 
 Legation op the United States, 
 
 Lima, Peru, June 10, 1880. 
 Sir : I received your confidential letter of May 21, in reference to our consul at Iq cli- 
 que, and his forwarding letters from Peruvian officers to the Government of Lima. 
 
 I inclose you the copy of a letter I have written this day to Mr. Merriam, our consul 
 at Iquique. 
 
 I do not think the case one in which I ought to make any appointment to fill his 
 place, even if he should resign. He is accredited only to Peru and holds only the ex- 
 equatur of that government. And Iquique being in the full possession of Chili for the 
 present, it is only matter of grace and favor from both governments that he could 
 exercise the duties of a consul there, and so it would be with any successor while 
 things remain as they are. I will write the Secretary of State and let him act his 
 pleasure in the matter. » 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 Xo. 265. 
 
 Mr. Christianey to Mr. Evarts. 
 
 Xo. 177.] Legation of the United States, 
 
 Lima, Peru, June 13, 1880. (Received July 29.) 
 
 Srn : Eeferring to my dispatch Xo. 173 of June 7th, on the progress 
 of the war and the question of peace, I have now to say that nothing of 
 importance has since occurred at Callao or Ancon — no further attempt 
 at bombardment. 
 
 But in the south the news since received here shows that the defeat 
 of the allies at Tacna was more crushing and decisive than appeared 
 from the first reports. At the time of my dispatch Xo. 173 of June 7, 
 it was reported and believed here that Montero had fallen back to 
 Pachia or Palca with some 4,000 men, but it now appears he fell back 
 to Tarata, and that he can muster there only some 1,500 and that the 
 Bolivian force (amount not known) are on their way back to Bolivia, 
 Their commander reporting that they go to raise more Bolivian forces to 
 renew the contest. 
 
 It also now appears that the Bolivian general, Campero, provisional 
 president of Bolivia (who was commander-in-chief of the allied forces), 
 on the eve of the contest, May 25, resigned, both as provisional presi- 
 dent of Bolivia and as commander-in-chief of the allied forces, placing' 
 himself and Bolivian forces under the orders of the Peruvian general, 
 Montero. But it seems from a report received here from General Mon- 
 tero that he did not accept the resignation, and that Campero continued 
 as commander-in-chief during the battle, at least. 
 
 We have no intelligence yet of Colonel Leiva, with the Peruvian force 
 from Arequipa, having formed a junction with Montero, so that the 
 Chilians may now be said to be practically in full possession of all Tara- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 369 
 
 paea and so much of the Department of Moquegua, as lies south of about 
 17 £ degrees south latitude. 
 
 It would also seem that a large part, if not the main body of the 
 Chilian army (we have no account of their numbers) were turned back 
 from Tacna, after the victory there, and attacked and took Arica from 
 the land side by assault, on tne 7th June, taking all the Peruvian forces 
 there prisoners, except those killed in the assault ; and that the Peru- ' 
 vian monitor, Manco Capac, finding herself without support and being 
 attacked from the land side, as well as by the Chilian fleet, was sunk by 
 her officers with several launches, and that the officers and crew are 
 prisoners on the Chilian fleet. 
 
 I inclose you translation : 1st, of ^he Chilian account of the capture 
 of Arica ; and, 2d, an account of the same from a neutral source. These 
 being matter of detail, I do not send same in Spanish, as I have stated 
 above the general result. 
 
 I also send you a translation of the report of General Montero just 
 received here. 
 
 Prom such results it would certainly seem to disinterested observers 
 that "the end coineth,'' or ought to come soon. And I know it is the 
 common opinion of all the representatives of neutral nations now at 
 Lima, and of the neutral naval officers here, that Peru, if guided by 
 wise counsels, must accept any reasonable terms of peace which may be 
 offered by Chili, for, though Peru has now he re at Lima and Callao an 
 army of from 20,000 to 22,000 men, well armed and equipped, and might, 
 and probably would, succeed in repelling any land force which Chili 
 could bring here, yet Chili, having full command of the sea, may trans- ■ 
 port her army to any part of the Peruvian coast, and her fleet may 
 make a permanent conquest of all the insular possessions of Peru, ana 
 even capture much more of the mainland, it being impossible for Peru 
 to transport troops and munitions of war by land in time to meet such 
 force, owing to the nature of the country. 
 
 In view of the present situation, I ventured, yesterday, to call upon 
 the supreme chief, and in a confidential conference I explained to him 
 that, from what I had heard from various sources (unofficial), I thought 
 it quite probable that the Chilian Government, having now gained a 
 decisive advantage by land in the south, would offer terms of peace, 
 which would probably be sent through some member of the diplomatic 
 corps here, and that, should such an event take place, while I would 
 not venture to advise him, he would, I knew, permit me to suggest for 
 his consideration, whether the present condition of affairs did not ren- 
 der it for the interest of Peru to receive and consider such proposition, 
 and whether, if the war was continued, he could expect as favorable 
 terms as at present ; that the propositions which might in the first place 
 be made by Chili, now flushed with victory, might be exorbitant, yet, 
 if negotiations were once entered upon, counter-propositions might be 
 made and answered, and perhaps reasonable terms (under all the cir- 
 cumstances) might in the end be reached ; that to this end a great point 
 would be gained if an armistice could be agreed upon, and negotia- 
 tions fairly opened, &c. 
 
 He was' already aware of the position of our government, and I inti- 
 mated to him again that if at any time the combatants should indicate 
 a desire for its good offices in bringing about a peace, they would be 
 readily given ; that I did not ask him for an immediate answer to these 
 suggestions, but only threw them out for his consideration, &c, and if 
 S. Ex. 79 24 
 
370 AFFAIKS IN CHILI, PFKU, AND BOLIVIA. 
 
 at any time he thought I could, in any legitimate way, contribute to a 
 peaceable solution, he had only to let me know. 
 
 He received my suggestions in the kindest manner, and, though he 
 did not say so in so many words, I thought I could perceive by his 
 manner that he would be glad to secure peace on any reasonable terms, 
 and would feel grateful to our government for any effort which might 
 lead to such a result. 
 
 I am, in common with the rest of the diplomatic corps here, daily 
 expecting some proposition from Chili for peace, as she is now in a con- 
 dition to make such proposal; and should it be made, however extrav- 
 agant it might be, I have hopes that it would, through the influence of 
 the representatives of friendly nations, both here and at Santiago, be 
 in the end modified down to such reasonable limits that Peru could 
 accept without too much humiliation. 
 
 But Peru is not in a condition now to offer terms, only to receive them ; 
 and, if Chili should not make any proffer of peace, I think the contest 
 will continue for some time. 
 
 All the neutral nations (except possibly Ecuador, the Argentine Ee- 
 public, and Brazil) have a common interest in putting an end to this 
 war. None of them want to make any conquests or to gain territory 
 here, but all seek commercial advantages only. And even England, 
 whose people have been somewhat partial to Chili in this war, and to 
 whom Chili may also feel a partiality, would, on commercial grounds, 
 be quite as much interested in the commerce of Peru as in that of Chili, 
 unless indeed Chili should conquer so large a part of Peru as to make 
 her commerce of more importance than that of Peru, which, however, 
 is not so at present. 
 
 I hold myself ready to take any step, and to go anywhere, in the 
 interest of peace. 
 
 A few days, or, at most, a few weeks will probably determine whether 
 any effectual steps can be taken in that direction. 
 
 June 14. 
 
 I have just time to add that, at the instance of Mr. de Vorges, the 
 French minister, a meeting of the diplomatic corps was held to-day, for 
 consultation upon the present state of things, the result of which was 
 that the dean of the corps (Mr. Pinto, envoy extraordinary and minister 
 plenipotentiary of Salvador) was requested to see the supreme chief, 
 and assure him that if Chili should make a proposition for peace, all 
 were ready to afford him their good offices to that end. 
 
 But it is now rumored (as coming from the Chilian admiral in the 
 Bay of Callao) that the popular feeling in Chili is so strong against 
 Peru that the Chilian Government dare not propose terms of peace as 
 they intended. I give this as a rumor only. 
 
 General Adams, minister to Bolivia, has just arrived here, and at- 
 tended the conference with me. 
 I have, &c, 
 
 I. P. CHEISTTANCY. 
 
 [Inclosme ~Ko. 1 in No. B7.— Translation.— JTroni the newspaper "el 21 de Mayo," Chilian source.] 
 THE CAPTUHE OF AKICA. 
 
 Iqdique, June 8. 
 
 Arica was attacked yesterday at daylight. 
 
 The third of the liDe opened fire upon the citadel, where the Peruvian forces were 
 concentrated. The citadel was taken at the point of the bayonet ; there were found 
 ■150 of the enemy killed and a the remainder taken prisoners. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 371 
 
 « 
 
 The fourth of the line commanded by its second chief, the gallant St. Martin, at- 
 tacked the fortress called the Morro, which was likewise taken at the point of the 
 bayonet, where were found killed Commanders Moore and Bolognese, Peruvian com- 
 manders of the place. At 7.30 a. m. the officers of the Manco-Capac, seeing that 
 the forts were lost to them, sunk their vessel in 12 fathoms of water; they did the 
 same with the steam-launches. It is believed all this can be saved. 
 
 The Peruvians blew up two of their forts wich dynamite. 
 
 The enemy's loss is 700 killed, 100 wounded, and 600 prisoners. The rest of their 
 forces could not escape, the retreat being closed by our cavalry. 
 
 The national flag waved over all the ports at 8.30 a. m. 
 
 [Inclosure No. 2 in 2(o. 177.] 
 
 Neutral letter. 
 
 Aeica, June 7. 
 
 On the morning of the 5th the Chilians sent a flag of truce, intimating the surrea- 
 dcr of the place, to which the commander-general answered that it was his intention, 
 and that of his officers, to resist with all his might, and to fulfill their duty. 
 
 Much courtesy was displayed ou both sides. 
 
 Then the artillery opened fire and continued doing so during the 5th and 6th. This 
 last day the vessels of war took part in the combat, keeping at apparent and safe dis- 
 tance from the forts. 
 
 The neutral vessels, having refugees on board, retired some five miles. 
 
 This morning (7th) at break of day the Chilians attacked the forts on laud, as well 
 as those defending the port. 
 
 After a serious resistance the two eastern forts were taken, and a struggle took 
 place to capture the Morro, which was finally accomplished at 7.30 a. m. 
 
 The Peruvians blew up the three forts of the port and sunk the Manco Capac. 
 
 The vessels did not enter into combat to-day ; the captain and crew of the monitor 
 took to their boats. They were all taken prisoners by the Itata, where Commander 
 Logomarcino is also to be found. 
 
 The Cochrane received a shot on the 6th, which killed 26 men. The Covadonga re- 
 ceived three shots. 
 
 [Inclosure No. 3 in No. 177. — Translation.] 
 GENERAL-IN-CHIEF OF THE FIRST ARMY OF THE SOUTH. 
 
 Tarata, May 29, 1880. 
 To the Secretary of War : 
 
 In fulfillment of a painful duty which cannot be avoided, I communicate to your 
 excellency the result of our combat on the 25th instant with the Chilian army, hav- 
 ing no intelligence up to this moment from the commandant generals of our first 
 army of the south. 
 
 By order of the commander-in-chief I took command of the right flank of the allied 
 army ; the left flank was assigned to Colonel Eleodoro Camacho. 
 
 The artillery opened fire at 7.30 a. m. until 11 a. m., when that of the musketry be- 
 gan. The enemy's fire was directed mostly towards the left flank, for which reason 
 the commander-in-chief sent to me for reinforcement, which order I immediately com- 
 plied with, sending the Bolivian battalions, Alianza and Aroma, under my command. 
 Soon after sending these the fire became general. The commander-in-chief asked for 
 more force to guard the left flank, and without hesitating I sent battalion Second Pro- 
 visional of Lima. The commander-in-chief will, I hope, justly appreciate the gallaut 
 behavior of this distinguished corps. 
 
 The reinforcement sent to the left flank deprived me completely of the reserve 
 force. 
 
 And without any other force than that of the front line, we resisted the double at- 
 tack of the enemy by the flank and rear, until our brave soldiers were obliged to re- 
 treat towards Tacna, in order to renew the combat there, owing to the immense num- 
 ber of the enemy. 
 
 Being persuaded that my j>lan had failed, I left Tacna after 5 p. m., retreating as 
 slowly as was necessary to give vigor to our soldiers and be ready to fight again, in case 
 of being pursued. 
 
372 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 In'the alfied army there were troops of both republics, those of Bolivia following 
 the road by San Francisco, while ours followed the road towards the place from 
 where I write and am now engaged iu.i i s reorganization. 
 
 The unfortunate result of the combat of the 25th is owed merely to the excessive 
 number of the enemy, and not to the bad quality of our men. It is so curtain that our 
 troops fought gallantly, that out of 12 battalions under my command, 6 commanding 
 officers and one commander -general have been killed, whose names will be retained 
 with pride in the history of our country. 
 
 Besides this serious loss, we have to lament that of mauy subordinate officers, not 
 taking in account the large number of wounded, which list will be forwarded co your 
 excellency as soon as the commanding generals send in their report to Colonel Velarde, 
 chief of the staff. 
 
 The necessity of leaving forces in Arica, in order to defend it, disabled me from pre- 
 senting more than 8,000 men against 20,000 of the enemy, and before that immense su- 
 periority of number the gallantry of our troops' was as useless for success as the manly 
 enthusiasm shown in those supreme moments by the heroic citizens of Tacna. 
 
 If the result of this combat has not met our hopes, it has again proved that our army is 
 not deficient in enthusiasm and courage; my mind influenced by the sorrowful impres- 
 sion of the unexpected disaster, my confidence revives, considering how common 
 amongst us magnanimous and grand deeds are done. 
 
 If this war be continued, as I hope it will be, it will assure us the final triumph, if 
 we avail ourselves as we ought to of the merit and spirit of our troops, and of the 
 teaching of bitter experience. Republics like Peru are neither annihilated nor sub- 
 dued by a partial defeat, which should and ought to bring forth the ultimate victory 
 over the enemy. 
 
 Be your excellency pleased to bring to the knowledge of his excellency the supreme 
 chief, this brief report, assuring him at the same time the pain and grief caused to the 
 Peruvian army by the death of General G. II. Perez, chief of staff of the allied army, 
 and the mortal wound of Colonel Eleodoro Camacho, commander-in-chief of the 
 Bolivian army. 
 
 God guard your excellency. 
 
 L. MONTERO. 
 
 No. 266. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 Ko. 178.1 Legation of the United States, 
 
 Lima, Peru, June 19, 1880. (Received July 29.) 
 
 Sir : Referring to my dispatch Nfo. 117, on the progress of the war 
 and the prospects of peace, I have to say that no conflict of arms has 
 since taken place, either by sea or land, so far as known here. But on 
 the 17th instant notice was given by the Chilian admiral of the block- 
 ade of Chancay, some 18 miles north of Ancon, and that 18 hours only 
 were given for neutral vessels to quit the port. 
 
 There was, however, an American vessel, the Spartan, Captain Cross- 
 ley, in that port, who represented to me that he could not get on board 
 the necessary ballast in that short time ; and there was also an English 
 vessel in a like situation. I therefore suggested to Captain Brown, of 
 the Alaska, that it might be well for him to see the Chilian admiral on 
 the subject, which he did yesterday and obtained three additional days' 
 time for the purpose, for the benefit of all the neutral vessels in that 
 port. 
 
 I may, I hope, properly add here that Captain Brown is very highly 
 appreciated by the officers of all the neutral naval vessels here. 
 
 From all the information which has yet reached here though un- 
 official (a part of it comes, however, from * * , verbally reported 
 by him to the officers of the last English mail steamer from the south), 
 but generally believed here by the foreign legations, as well as by the 
 public at large, the Chilian soldiery committed the most cruel excesses 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 373 
 
 at Arica, upon the capture of that town, killing and robbing indiscrimi- 
 nately all the people they met in the streets and houses of the place, 
 and behaving more like a band of 'roving savages than like a regularly 
 organized soldiery of a civilized nation, and though they, in a modified 
 sense, respected our flag, so far as our consular agent was concerned, not 
 taking the liberty to kill him, yet that they completely stripped him of 
 his personal property, taking even his clothing. 
 
 Such are the reports, the truth of which, however, I cannot vouch 
 for. The consular agent has not yet written me, or rather I have re- 
 ceived nothing from him. Some allowance, doubtless, must be made for 
 the license of the soldiery in a place taken by storm. But their conduct 
 seems, so far as property was concerned, to have been the same as at 
 the taking of Mollendo, when there was no resistance and no opposing 
 military force. 
 
 For the question of peace, I refer you to my next dispatch No. 179. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 267. 
 
 Mr. Uhristiancy to Mr. Hvarts. 
 
 No. 179.] Legation op the United States, 
 
 Lima, Peru, June 20, 1880. (Eeceived July 29.) 
 
 Sir : Referring to my dispatch No. 177, upon the progress of the war 
 and the question of peace, I have now to inform you that on the 14th 
 instant (the day after the dean of the diplomatic corps and the French 
 minister had called upon the supreme chief in the name of the corps, as 
 stated at the close of my dispatch No. 177), there appeared iu the Patria 
 and in El Peruano the address or proclamation of the supreme chief 
 to the nation, a copy of which I here inclose, marked, with a translation 
 from the South Pacific Times. 
 
 On the 16th instant appeared in the Patria (official paper) the " Pro- 
 tocol of the preliminary bases of the federal union of Peru and Bolivia," 
 a copy of which, with the translation, I here inclose. Also the " Supple- 
 mentary protocol of the preliminary bases of the union of Peru and 
 Bolivia," of which I inclose copy, with a translation. 
 
 The proclamation is substantially in accord with the answer given by 
 the supreme chief in person to the dean of the diplomatic corps and 
 the French minister the day before. .And those best acquainted with 
 the supreme chief, and his personal characteristics, seem generally to 
 believe that he spoke his real sentiments in that proclamation, and 
 that he relies much for his future success upon the arrangement for a 
 federal union with Bolivia, which, though not to take effect until De- 
 cember, 1880, it is quite generally believed will prevent further danger 
 from the intrigues of Chili, to detach Bolivia from the Peruvian alliauce, 
 and to aid in partitioning the southern portion of Peru ; and it is the 
 general opinion among the best informed Peruvians and foreigners 
 here that such federal union, if carried into effect, will be highly and 
 permanently beneficial to both Peru and Bolivia, though, in the mean 
 time, revolutions may take place in Peru, and especially in Bolivia, 
 which may prevent the union, but it is believed the general public opin- 
 ion in Bolivia and Peru is and will remain in favor of the union, and 
 such is my impression from the best information I can obtain. 
 
374 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 The effect of the publication of these protocols has been to raise the 
 market value of the paper currency here", which had fallen to 5 pence 
 per sol, in exchange on London, and which is now freely granted by 
 English houses here at the rate of 6£ pence per sol. 
 
 On the other hand it is easy to see that the bold and defiant tone of 
 the proclamation may be susceptible of an interpretation consistent 
 with and even favorable to peace. The supreme chief may have 
 realized the fact that he would not be likely to obtain reasonable terms 
 of peace by showing any evidence of despondency or want of confidence 
 in the ability of Peru to retrieve the calamities of the war, and to snatch 
 victory from defeat. He may have deliberately concluded that the best 
 mode of procuring fair terms of peace from Chili was to show a bold 
 and defiant front. 
 
 If the first interpretation of the intent of his proclamation be correct, 
 I see no prospect of peace for the next year at least ; if the second be 
 the correct interpretation, then much, if not all, will depend upon the 
 question whether Chili will now offer terms of peace. She is now in a 
 position to do so without national humiliation, while Peru is not ; and 
 I think the war will continue indefinitely, or until Peru should be effect- 
 ually conquered, before she will beg for a peace under defeat. 
 
 But if Chili should now make -an offer of peace, though her terms 
 might, at first, be extravagant, if negotiations could once be opened, I 
 have still strong hopes that by counter-propositions and further nego- 
 tiations with the influence of the diplomatic corps here and at Santiago, 
 the terms could be so modified that Peru might accept them ; but this 
 is matter of opinion only, in which I may be mistaken. 
 
 In the mean time, I, in common with the diplomatic corps here, am 
 still expecting some proposition of peace from Chili. If Chili makes no 
 such offer, I have no definite opinion when or how the war is likely to 
 end. I shall carefully bear in mind your instructions in reference to 
 the means and the manner of bringing about a peace. 
 
 I have, &c. 
 
 I. P. CHEISTIANCT. 
 
 [Incloaare 1 in No. 179.] 
 [From The South Paoiflc Times, June 15, 1880.] 
 
 The Supreme Chief to the Nation : 
 
 Fellow Citizens : Our patriotism has jnst received a rode shock. The unexpected 
 check sustained by our first array of the south, brought about by a series of errors, 
 and which can only be explained by the impatience of our army to meet the enemy, 
 has given to the latter, at great cost, the useless occupation of Tacna and Arica, after 
 a most heroic and memorable resistance. 
 
 A people bold and firm, who feel that they deserve to triumph, receive with pride, as 
 does Pern, those checks, which only dishearten the weak. 
 
 It is well ! By the pain with which we count our victims will be forged the sword 
 of justice with which we shall repel our invaders. The blood shed claims vengeance, 
 and shall have it, ample and complete. The example of our martyrs makes soldiers 
 spring up by thousands, and there is not in Peru one who does not feel proud of them. 
 Chili, conqueror, will find its conquests very dear. Peru to-day is to be feared a hun- 
 dred times more by Chili than at the commencement of the campaign, and^ recovers in 
 misfortune the strength forgotten in the days of confidence and tranquillity. 
 
 Chili does not understand, cannot understand, what to a generous and high-spirited 
 people means hearths trampled under foot, the blood of its sons shed, and the majesty 
 of the nation outraged by those who should tremble at its anger; and judgiug us by 
 themselves, they have dreamt that they could obtaiu the peace they covet, in order 
 not to succumb to our inevitable and legitimate triumph. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 375 
 
 Yesterday Chili dreamt also in onr intestine struggles, but Peru and Bolivia have 
 today only one voice, one thought. Chili sought to destroy the alliance, and all that 
 she has reaped is the making of two peoples one only. She attempts to hem us in by a 
 blockade, but will only hasten the solution of our internal questions, and by so doing 
 enable us to recover that strength which to-morrow she will look upon affrighted. 
 
 Chili is building up day by day with her ephemeral successes her own ruin, and by 
 each of her costly blows wastes the strength which might be able to resist us at a 
 future time. Our resources are untouched, but theirs are coming to an end. They 
 are living on what they borrow, to their own ruin and to the undeceiving of the de- 
 luded persons who discount their barren triumphs. They have played in 'Tacna a 
 stroke of fortune which is utterly useless to them, which prostrates them and makes us' 
 arise more vigorous and determined than before. 
 
 Let them burn ; let them efface our undefended towns on the coast ; let them lay 
 waste our fields, if they can. We aire determined to all, save the renouncing the vin- 
 dication of our right, the ceding one inch of our soil, the asking from us, to save them- 
 selves a peace, which they will never be able to force upon us. 
 
 Fellow countrymen, you have confided to me the recovery of our national rights 
 trampled under foot without even a pretext. My task, therefore, is to seek the recovery 
 of our rights without rest, seek it at any cost, seek it until it be obtained. Behind 
 me stand six million men. And when I fall, fortune, which may deny to me the 
 being present at the triumph of my country, will not deny me, I trust, the right to die 
 in its defense, secure of victory. 
 
 Justice is with us. Victory has never been denied to those who, fighting for their 
 home and country, become worthy of them by their determination and self-sacrifice. 
 
 Lima, June 13, 1880. 
 
 N. de PIEROLA. 
 
 [Inclosure 2 in No. 179. — Translation.] 
 
 Protocol of the preliminary oases of the federal union of Peru and Bolivia. 
 
 In Lima, capital of the Republic of Peru, on the 11th day of June, in the year 1880, 
 the undersigned plenipotentiaries of Peru and Bolivia, having met in the hall of public 
 audience of the secretary of foreign relations and worship, and after having exhib- 
 ited to one another their respective powers and found the same to be sufficient and in 
 due form to proceed tostipnlate and agree upon that which may the better tend toward 
 the object of drawing closer the bonds of fraternity which nature and historical events 
 have created between the two republics; of consolidating their domestic peace and 
 providing for their security abroad ; of assuring the general welfare of their inhabit- 
 ants, and extending the blessings of independence and liberty to the present and fu- 
 ture generations ; of promoting, likewise, that prosperty and greatness to which, by a 
 common destiny, the rich and beautiful regions embraced in their vast territories are 
 called, in conformity to the aspirations generally manifested by public opinion in the 
 two countries, respecting the necessities of adopting a new political organization 
 which, modifying their present internal constitution and uniting at the same time 
 their power and resources in one sole nationality, may fully and efficiently bring about 
 these ends ; agreed in the name of their governments, and in order that they may pre- 
 viously be submitted to the approval of the people of Peru and of Bolivia, upon the 
 following bases of union of the two countries : 
 
 I. Peru and Bolivia shall become a single nation called the Peru-Bolivian United 
 States. This union is based upon American public law, and is formed to confirm the 
 independence, the inviolability, the internal tranquillity, and external security of the 
 states embraced therein, and to promote their development and prosperity. 
 
 II. The present departments of each of the two republics, saving such modifications 
 as may be sanctioned by the constitutional assembly, shall be formed into independent 
 states, having their own institutions and laws, not to conflict, however, with the con- 
 stitution or laws of the union. Nevertheless, the departments of Tacna and of Oruro, 
 of Potosi and Tarapaca shall form the states denominated Tacna of Oruro and Potosi 
 of Tarapaca. The regions of the "Chaco" and of the " Beni " in Bolivia, and that 
 called the " Montania " in Peru, as well as other territories which may exist in analor 
 gous conditions, shall form federal districts, subject to special legislation, and to the 
 direct control of the government of the union. 
 
 III. The states shall constitute their sovereignty according to the principles of the 
 republican representative system, to the declarations and guarantees of the national 
 constitution, and to those laws of the union which assume to them the administration 
 of justice, the municipal organization, primary education, and material progress, all to 
 be supported out of their own resources. 
 
376 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 IV. The union of the States is indissoluble, consequently no state can separate itself 
 therefrom. 
 
 V. The states are equal in rights. That of citizenship is common to them all. 
 
 VI. No new state can be formed witbin the territory of another or others, nor can 
 one be formed of two or more, without the vote of the legislatures of each of the states 
 interested, and the sanction of the national Congress, given in two sessions, with en- 
 tirely renewed personality of voters. 
 
 VII. The states cannot make treaties, one with another, save for the furthering of 
 the administration of justice, of ecomonic interests or works of common utility, with 
 the consent of the national Congress. They do not enjoy the right of asylum with re- 
 spect to one another. 
 
 VIII. The states do not exercise the power delegated to the nation. Consequently 
 they cannot represent it before other powers. Nor can they make laws concerning 
 foreign commerce or navigation, nor establish custom-houses ; nor coin money ; nor 
 charter banks of issue without the permission of the general government ; nor alter 
 the codes which Congress may sanction for the union ; nor make laws regarding cit- 
 izenship or naturalization, nor fit out ships of war or raise armies, save in case of in- 
 vasion or imminent danger from abroad, giving in such case immediate notice to the 
 national government. 
 
 IX. No state can declare or make war on another. Their complaints shall be sub- 
 mitted to the judgment and decision of the supreme federal court. Any act of hostil- 
 ity shall be deemed an act of civil war, which it is the duty of the national govern- 
 ment to quell and suppress in the exercise of its attributes. 
 
 X. The governors of the states are the natural agents of the national government, 
 to exact compliance with the constitution and laws of the union. 
 
 XI. It is obligatory upon the states to furnish the quota of troops corresponding to 
 them, to form the national army in time of peace or war. 
 
 XII. The national government shall be vested in the legislative, executive, and 
 judicial powers of the union. 
 
 XIII. A Congress, composed of two chambers, one of National Deputies, and the other 
 of state senators, shall exercise the national legislative authority. 
 
 XTV. The Chamber of Deputies sb all be composed of representatives elected directly 
 by the citizens of the states, which shall be considered, for this purpose, as electorial 
 districts, the number of such representatives being determined in proportion to the 
 population. Their term of office shall be four years. 
 
 XV. The senate shall be composed of two senators from each state, elected by their 
 several legislatures. Each senator shall have a vote, and their term of office shall be 
 six years. The functions of the senate shall be permanent. 
 
 XVI. The national Congress shall meet, ordinarily, each year. Nevertheless, it may 
 be convoked, extraordinarily, by the executive, and for determined objects. 
 
 XVII. The national executive authority shall be vested in a citizen, with the title 
 of President of the Peru-Bolivian United States, assisted by ministers of state, and in 
 case of the absence or impediment of the former, by a Vice-President who shall be the 
 president of the Senate, and who shall have no vote save in case of a tie. The term 
 of office for the President shall be for five years, and he shall not be eligible for re- 
 election until after the lapse of a like period. • The ministry shall be formed of citizens 
 of the two united republics, at least during two presidential terms, consulting, as far 
 as may be possible, equality of representation. 
 
 XVIII. The President of the union shall be elected by direct voting by the citizens 
 of the States, according to their several laws; but each one shall vote for two citizens, 
 one of whom shall be of the state and the other not. Should do citizen obtain an ab- 
 solute majority of votes, the federal Congress shall choose from among the three who 
 may have obtained the relative majority. 
 
 XIX. The judicial authority of the union shall be exercised by a supreme court of 
 justice and by such special tribunals as Congress may establish for the nation. 
 
 XX. The duties and their limitations of the high powers of the union shall be fixed 
 by the national constitution, according to the principles of this system of government, 
 consecrated by the practice of those nations who have already adopted it. 
 
 XXI. The constitutional assembly shall designate the place within the territory 
 which is to be the capital of the union, and which shall be under the immediate au- 
 thority of the President of the United States.^ 
 
 XXII. The national government shall provide for the expenses of the union from 
 the funds in the treasury, which shall be formed by the product of import and export 
 duties, of the sale or rental of government lands, of the natural products of the soil, 
 of the post-office department, of general indirect tax, and of such other resources as 
 may be voted by the federal Congress. The tax upon incomes and local contributions 
 beloDg to the treasuries of the States or municipalities. 
 
 XXIII. The national government shall not intervene in the territory of the States, 
 except to cause the constitution and federal laws to be respected, and at the request 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 377 
 
 of their constituted authorities, to sustain or re-establish them, should they be threat- 
 ened by invasion from another State, or deposed by sedition. 
 
 XXIV. Within the republic the circulation of merchandise produced or manufact- 
 ured in the country, as well as that of the goods or merchandise which may have been 
 dispatched through the custom-houses of the union, shall be free of duty. In this ex- 
 emption are not included municipal taxes, the creation of which, however, must be 
 submitted to the legislature of the State. 
 
 XXV. The vehicles, vessels, or animals carrying the articles mentioned in the preced- 
 . ing section, tools and materials for the construction of roads, river or telegraphic com- 
 munication between the States, as well as the herds passing from the territory of one 
 state to another, enjoy the exemption. 
 
 XXVI. The representation abroad of the union belongs exclusively to the federal 
 executive, who will invite friendly nations to a revision of such treaties as they re- 
 spectively may have celebrated with Peru and with Bolivia, in order to renew and 
 unify the same. 
 
 XXVII. Peru and Bolivia owe nothing whatever to one another for account of the 
 expenses which the war of both countries against Chili may have caused them up to 
 the date of the union. 
 
 In witness whereof the undersigned plenipotentiaries, authorized ad hoc by their 
 respective governments, signed and sealed the present protocol the day and date above 
 written. 
 
 (In duplicate.) 
 
 PEDRO JOSfi CALDERON, 
 Secretary of Foreign Affairs and Worship. 
 Authorized ad hoc. [l. s.] 
 
 MELCHOR TERRAZAS, 
 Minister Plenipotentiary of Bolivia. 
 [L. s.j 
 Authorized ad hoc. 
 A true copy. 
 
 CALDERON. 
 
 flnclosure 3 in No. 179.] 
 
 Protocol complementary of the preliminary bases of the federal union of Peru and Bolivia. 
 
 In Lima, capital of the Republic of Peru, the 11th day of June, in the year 1880' 
 the undersigned plenipotentiaries having met in the hall of public audience of the de- 
 partment of foreign affairs and worship, with the object of completing the bases of 
 the federal union of Peru and Bolivia, which they have stipulated and agreed upon 
 under this same date, with other points of accessory or transient character, in order 
 thus to obviate the obstacles which might arise to the more prompt and effectual reali- 
 zation of an act so important to both republics, agree upon the following : 
 
 I. The preliminary bases of union shall be submitted to the acceptance of the peo- 
 ple of Peru and Bolivia, without which they shall be of no effect. 
 
 II. This acceptance, expressed in such form as circumstances may permit, shall 
 moreover contain the declaration whether the establishing of the federal system shall 
 be at once proceeded with or not. 
 
 III. In the affirmative event, and until the constitution and federal institutions by 
 the constitutional assembly, which shall meet in the city of Arequipa on the 9th of 
 December, 1881 (unless events arising from the war shall compel an anticipation or 
 further delay, which shall be determined by a vote of the provisional Senate), there 
 shall be a provisional federal system established upon the following bases : 
 
 First. The federal government shall be formed of the supreme chief of the two na- 
 tions, one being the president and the other the vice-president of the union. 
 
 A popular election of the said magistrates being impossible in the initial condition 
 of the union, and in view of the motives of availability, the first named office is as- 
 signed to the supreme chief of Peru, and the second to that of Bolivia. 
 
 Second. A provisional senate, composed of ten representatives designated by Peru 
 and an equal number by Bolivia, shall undertake the drawing up of the constitution 
 and organic laws of the union, especially the electoral law for deputies to the consti- 
 tutional assembly, and shall act, likewise, as a consulting body for the central govern- 
 ment. 
 
 Third. From this moment the custom-houses between Peru and Bolivia are abolished, 
 and the political and economic union of both republics fully established. 
 
 Fourth. The provisional senate shall prepare drafts of federal laws upon post-offices 
 and telegraphs, upon custom-houses, upon money and banking institutions, upon the 
 
378 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 railroads of the union, upon the appropriations for the same, upon literary and artistic 
 •copyright, obligatory military service, and other matters of general interest. 
 
 Fifth. The federal constitution shall be in force provisionally during five years from 
 its promulgation, within which time such amendments and reforms as experience may 
 suegest shall be made. The last legislature of this period of five years shall put it 
 definitely in force, and no alterations can thereafter be made in it, save by virtue of 
 the provisions established therein for the purpose. 
 
 Sixth. The States shall be governed and administered provisionally until the federal 
 and their own individual constitution be sanctioned by governors appointed by the 
 supreme chiefs of Peru and Bolivia, respectively, for those departments which are to 
 become States in either country, and by common consent for those of Tacna de Oruro 
 and Potosi de Tarapaca. 
 
 These governors shall be subject to the laws at pressnt in force in their respective 
 departments, and to the instructions issued by the provisional government of the 
 union. 
 
 In the States of Tacna de Ornro and Potosi de Tarapaca the government of the 
 union, with the vote of the senate, will decide as may be necessary such conflicting 
 cases as may arise from the different legislations of the two countries to which the 
 departments forming the said States originally belooged. 
 
 The removal and substitution of governors once appointed shall be made by the pro- 
 visional senate. 
 
 Seventh. A mixed commission shall undertake the fixing of the public debt of Peru 
 and Bolivia in its different forms. 
 
 Eighth. Another commission, likewise mixed, shall study and suggest the most 
 proper territorial demarkation of the States, that the same may be submitted for the 
 approbation of Congress within the period of provincial constitutionality. 
 
 Ninth. The coat of arms of the Peru-Bolivian United States shall be of Germanic 
 form ; it shall have in the center a sun of the color of gold, surrounded by stars of the 
 same color, upon a purple ground, and in the upper part a condor resting upon and 
 seizing it with his talons. 
 
 The war flag of the said States shall be of rectangular form, the contiguous sides of 
 which shall be in the proportion of one to two-thirds, and it shall bear in the center 
 the same sun and the same stars as the shield upon a similar ground. 
 
 Tenth. In case of vacancy of the office of the provisional president or vice-president, 
 it shall be filled by election by the senate, to be made — each member thereof voting 
 for two citizens — one Peruvian and one Bolivian. 
 
 The models of the coat of arms and flags are annexed to this protocol. 
 
 In witness whereof the undersigned plenipotentiaries signed and sealed the same on 
 the day and date above set forth. 
 ' (In duplicate.) 
 
 PEDRO JOSE CALDERON. 
 MELCHOR TERRAZAS. 
 
 !N"o. 268. 
 Mr. Hay to Mr. Christiancy. 
 
 ISTo. 90.] Department of State, 
 
 Washington, June 30, 1880. 
 Sir : A dispatch (So. 149) has been received from Mr. Osborn, 
 minister at Santiago, by which it appears that serious charges have 
 been brought by the Chilian Government against Mr. Merriam, consul 
 of the United States, at Iquique. The purport of the charges is that 
 Mr. Merriam has assisted the Peruvian Government in keeping up 
 communication with its southern army, contrary to the obligations of 
 a neutral and what must be expected from the representative of a 
 neutral government. You will investigate these statements, which, as I 
 understand, have been made to you in detail by Mr. Osborn already, 
 and in case you are convinced of their truth you will remove Mr. Mer- 
 riam, placing the consulate in the hands of the vice-consul, if a proper 
 person ; otherwise in the charge of some United States citizen residing 
 at Iquique. 
 
 I am, .&c, 
 
 JOHN HAT, 
 Acting Secretary. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 379 
 
 No. 269. 
 
 Mr. Ghristiancy to Mr. Evarts. 
 
 No. 183.] Legation of the United States, 
 
 Lima, Peru, July 5, 1880. (Beceived August 14.) 
 
 Sir : Beferring to my No. 179, on the progress of the war and the 
 question of peace, I have the honor to inform you that no further oper- 
 ations have taken place on land. But we have some more reliable in- 
 formation of the battle of Tacna, and some which I think reliable of the 
 taking of Arica and of the conduct of the Chilian soldiery at Tacna and 
 ■ Arica after all the fighting had ceased. Most of this information upon 
 
 which I rely was given me by Mr. , who was at Tacna at the 
 
 time of the battle and the next day, and went to Arica a few days after, 
 and who came up on our frigate, Alaska, from Pisco here on my return 
 from Mollendo. He says that the night before the battle of Tacna, 
 Montero, the Peruvian commander, insisted upon making, and did, with 
 part of his forces, undertake to make, a night attack upon the Chilian 
 army ; but that, in the darkness and confusion, they mistook their way, 
 wandered about all night, and seen (but not attacked) by the Chilians, 
 were only able to get back to their own lines at daylight, a few minutes 
 before the battle of the 26th opened, and were compelled to go into battle 
 hungry and thirsty and overcome with fatigue ; that they nevertheless 
 fought well, as did the whole of the allied force, until the Chilians brought 
 in their reserves of three regiments, when the allies (who had no reserve) 
 came in, when they finally fled ; that the allied force did not exceed 7,000 
 or 7,500 men in the battle, and the Chilian force did not exceed 8,000, but 
 the latter were much better supplied with artillery and G-atlings and that 
 the loss on each side in killed and wounded was very nearly equal, but 
 that the Chilian soldiery killed most of the wounded found on the field, 
 which is the true reason why, according to all the accounts even from 
 Chilian sources, the number reported killed of the allied forces was much 
 or more than the number reported wounded ; that after. the battle all the 
 allied officers found dead upon the field were stripped, robbed, and 
 left naked, and all the privates stripped of every vestige of clothing of 
 any value ; that the allied army is completely broken up, Montero re- 
 treating with less than 1,000 men in the ranks, and Campero with still 
 less. 
 
 He also says (contrary to the first reports received here) that there 
 was but one" day's fighting, the 26th, which was about 6 or 7 miles 
 above Tacna. 
 
 It is right that I should say here that though Mr. Nugent, our con- 
 sular agent at Arica, has not written me, Mr. Merriam, our consul at 
 Iquique, sends me an extract from a letter written by Mr. Nugent to 
 him, dated June 17, in which Mr. Nugent says : 
 
 I was on the field immediately after the fight. * * * The number of killed on 
 both sides is about 3,000, rather more of the Chilian thau of the allied forces. The 
 wounded from the two armies between 3,500 and 4,000. 
 
 He was not at Arica when it was taken, but went back there some 
 days after, and he says : 
 
 I must say that the benavior of the Chilians, both in Tacna and Arica, is moat dis- 
 graceful. In Tacna the greater part of the houses have been robbed and many of 
 them destroyed. All the " chacras" (small farms, gardens, &c.) have been destroyed. 
 Murders are committed every day. In fact, nobody is safe here now. In Arica they 
 murdered the helpless and wounded, and gave very little quarter. In our house, 
 the English consulate, they found a great many refugees, and took them out into the 
 
380 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 plaza and had them shot, and then sacked the house. The greater part of the town 
 has been burned and sacked. The house in which I had my consulate was sacked, 
 and I have been told that the flag was torn down and trampled upon, and during the 
 night they set fire to it and burned it to the ground. I wish you (oar consul at Iqui- 
 que) to advise me as to this matter, and to let me know how to jet. As I was not at 
 Arica during the fight, I cannot tell whether it is true as regards the flag, but the per- 
 son in charge of the house represents it to be true. As the house belongs to my fam- 
 ily I should like to know whether I have any right to claim or not. If so, please let 
 me know how to make it. 
 
 Now, in reference to this letter of Nugent, I have to say that I learn 
 from Captain Brown, of the Alaska, that when he was at Arica some 
 months ago Nugent kept his consular agency in the same house now 
 spoken of by Nugent as the British consulate, and not in the house • 
 which was burned, which was the house belonging to his grandmother, 
 Mrs. McLean, the best house on the west coast, over which he seems to 
 have placed the American flag, but he may, prior to this affair, have 
 removed his consular agency to this house, with the archives, and, in 
 that event, I think the Chilians committed an outrage upon our gov- 
 ernment, but I must inquire iuto the facts before I can give him any 
 advice. I do not know whether the American flag was also flying over 
 the house where he formerly kept his office as consular agent, and from 
 which the refugees were taken out and shot upon the plaza. If it turns 
 outthat the placing of the American flag upon the McLean house was but 
 a ruse to preserve that house, and he really had not there established 
 his consular agency, I shall advise him that, as a British subject, he 
 must look for protection and advice to the representatives of his own 
 government. 
 
 Now, as to the conduct of the Chilians at Tacna, I must say that the 
 French consular agent represent* it in a somewhat less flagrant form. 
 He says that after the taking of Tacna there was but little of abuse or 
 outrage in the city proper ; some few houses plundered ; two Italians 
 and eight Chinamen killed, and in the suburbs and neighboring chacras 
 general robbery and plunder. 
 
 As to Arica, after the town and forts had been taken and all resist- 
 ance had ceased, the statements of the French consular agent to the 
 outrages committed by the Chilian soldiery are more distinct and posi- 
 tive than those of Mr. Nugent. He says that after Arica had been 
 taken and all resistance had ceased many inhabitants of Arica had 
 taken refuge in the building where our consular agent had kept his 
 office (as stated by Captain Brown, of the Alaska), and among them 
 some Peruvian soldiers, who had changed their uniform for citizens' 
 dress, had sought refuge in that house (whether the American flag was 
 flying then I do not know), and that the Chilian soldiery, apparently 
 under the command of their officers, came to the house and took indis- 
 criminately .31) men who were there — took them on to the public plaza 
 and there deliberately shot them all. 
 
 This, if true, is not war, but deliberate wholesale murder, unprovoked 
 by anything yet done by the allied forces, and in the cause of civilization 
 and humanity, calls for an indignant protest from all civilized nations. 
 
 The blockade of Callao and Ancon. As to these, nothing of impor- 
 tance has taken place since my last, until about 4 o'clock p. m. of the 
 3d July, when the Loa, an armed transport of the Chilian blockading 
 fleet (an iron steamer formerly belonging to the English Pacific Steam 
 Navigation Company, but sold to Chili about the beginning of the war), 
 was blown up and sunk by a Peruvian torpedo by a very clever rusede 
 guerre of the Peruvians. ■ 
 
 It seems (for the special details I have heard are unreliable) that 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 381 
 
 the Peruvians had prepared a small launch on the night of the 2d in- 
 stant with 300 pounds of dynamite in the bottom, and covered this 
 over with a full loading of poultry, ducks, potatoes, and other vegeta- 
 bles, some of which were, by concealed cords, attached to wires con- 
 nected with the dynamite ; that the Loa had been north, probably to 
 Ancon, and was returning to join the fleet ; that the Peruvians had, by 
 a row-boat, towed this launch far out towards the Chilian fleet, and as 
 the Loa approached from the north and made towards the launch to 
 capture it, the Peruvian row-boat abandoned the launch and made for 
 the shore, which they reached, a boat sent out by the Loa capturingthe 
 launch and taking it up alongside of the Loa as a prize; but while 
 close to the stern of the Loa and being unloaded the explosion took 
 place, completely blowing off the stern of the Loa, which sunk in four 
 minutes with 140 men, some 60 alone of the crew escaping. 
 
 ISTo proposition for peace has yet been received from Chili, and the ' 
 preparations by the Peruvian Government and the tone of its decrees 
 (which I will endeavor to send you by the next mail) show clearly that 
 Peru is not disposed to offer terms, and that the war may be indefi- 
 nitely continued. 
 
 The tone of the Chilian press and what is said by Chilian officers 
 tend to show that the popular voice in Chili is for an expedition to 
 Lima, to dictate terms of peace in the Peruvian capital. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 270. 
 
 Mr. Ghristiancy to Mr. Evarts. 
 
 No. 184.] Legation op the United States, 
 
 Lima, Peru, July 8, 1880. (Received August 13, 1880.) 
 Sir : As relating to the question of the continuance of the war or the 
 probability of peace, I send you the following extract from a private 
 unofficial letter of Mr. Osborn, our minister to Chili, dated Santiago, 
 June 18, viz : 
 
 I may add that there is no prospect now of a proposition being made by Chili to termi- 
 nate the war, as suggested by me heretofore. Public opinion clearly demands a pros- 
 ecution of the war until Peru shall ask for peace, or until Lima shall fall. The cabi- 
 net has been reorganized in conformity with this view. 
 
 Of the wisdom of this resolution on the part of Chili I have nothing 
 to say, though it seems to me to be the result of popular passion rather 
 than the cool judgment of her best statesmen, as she could easily hold 
 all she has taken from Peru, and all she expects to hold, without further 
 bloodshed or the hazard of further conflict. 
 
 But I am strongly of the opinion that Peru will, under these circum- 
 stances, offer no terms of peace until or unless her army near Lima shall 
 be overwhelmed and Lima shall be captured. 
 
 Peru has now in the vicinity of Lima and Callao an army, as near as I 
 can ascertain, of from 22,000 to 24,000 men, most of whom are well 
 drilled, and all the infantry well armed with Remington rifles. 
 
 In addition to these every able-bodied man in the province of Lima 
 over 16 and under 60 is called out and being organized. Most of these 
 will not be armed with Remingtons, but such arms as may be accessi- 
 ble, each regiment having a particular kind of gun's and ammunition. 
 
382 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 They have also between 40 and 50 pieces of artillery, but mostly small, 
 from three to five pounders, breech-loaders and rifled (a few smooth- 
 bore, and some ten Krupp guns). What they lack most, in my judg- 
 ment, is a larger class of smoth-bore field guns (such as the old Napo- 
 leon guns) for grape and canister. 
 
 Very few of tbe Peruvians, either officers or men, have any experience 
 of actual warfare, while Chili will probably bring 6,000 to 7,000 from 
 the south of Peru who have had the experience of one campaign. • 
 
 I do not think Chili can well bring here an army exceeding 18,000 to 
 20,000 men; and to meet these I think Peru will, by the time they can- 
 reach here, have from 25,000 to 30,000. 
 
 I do not think the Chilian fleet can reduce the defenses of Callao, and 
 therefore the Chilians will have to land at or near Ancon, 20 miles 
 north of Callao, or at Chorillos, which is a bad place for landing, or at 
 Chira, 3 or 4 miles south, or at Chilca, or the valley of Lurin, to the 
 south. 
 
 Making, therefore, due allowance for the facts that the Chilians are 
 probably better supplied with artillery and Catlings ; that some of them 
 have had experience of actual warfare, and that coming from a tem- 
 perate climate they are somewhat more vigorous race than the Peru- 
 vians, the chances" of the conflict here may be said to be pretty nearly 
 equally balanced. 
 I have, &C, 
 
 I. P. CHBISTIANCY. 
 
 p. s. — On reflection, I am strongly inclined to the opinion that the 
 Chilians, instead of coming in the first instance to Lima, will first direct 
 their efforts to the taking of Mollendo, Arequipa, and Puno, and the 
 railroad connecting these places, press on to La Paz, Bolivia, and con- 
 trive to sever the alliance between Bolivia and Peru, and after this, if 
 necessary, organize their expedition to Lima. My only reason for this 
 opinion is that it seems to me manifestly better for the interest of Chili 
 to take this course than to come directly to Lima. 
 As ever, &c, 
 
 I. P. CHBISTIANCY. 
 
 Kb. 271. 
 
 Mr. Ghristiancy to Mr. Evarts. 
 
 No. 185.] Legation of the United States, 
 
 Lima, Peru, July 9, 1880. (Received August 13.) 
 
 Sir : I have the honor to inclose to you the following : 
 
 1st. The proclamation and decree of the Supreme Chief of Peru, dated 
 June 27. 
 
 2d. The official note of the secretary of foreign relations and worship 
 to the archbishop of Lima in reference to church property, &c. 
 
 3d. The reply of the archbishop thereto. 
 
 4th. The decree of the archbishop in reference to contributions to be 
 made by the church to the government. 
 
 5th. The note of the secretary of government to the Secretary of War 
 in reference to military passports, together with translations of each of 
 above. 
 
AFFAIRS IK CHILI, PERU, AND BOLIVIA. 383 
 
 In reference to the sixth article of the decree of June 27, I have to 
 say that I have advised American citizens here that they cannot organize 
 and act as an urban guard upon the principle expressed in that article 
 without a breach of neutrality, as they seem there to be invited to take 
 the place of the police of Lima, for the purpose of enabling that police 
 to go into the active army of Peru. 
 
 I, last night, had a conference with the supreme chief upon this point,, 
 having previously consulted with some of the foreign ministers, and I 
 explained to him the difficulty growing out of the wording of article 6 
 alluded to, and suggested the repeal of the same, and its replacement 
 by an article embodying the following ideas : 
 
 Citizens of neutral nations residentiu Lima, for the purpose of protecting themselves, 
 their families and property, and to that end, for preserving the peace and good order of 
 the city against domestic violence and disorder during the exigencies of the present war, 
 are invited to organize themselves into bodies of urban guards, they being hereby au- 
 thorized to elect their chief and subordinate officers, so as to act as far as possible in 
 concert, reporting such elections to the mayor of the city. And such officers so chosen 
 may, forthe purposes aforesaid, arrest any person committing violence or theft, or in 
 any manner disturbing the peace or good order of the city, delivering the persons so 
 arrested to the proper civil municipal officers of the city, with a written statement of 
 the canse of the arrest; and the proper civil officers of said city shall have power to 
 try the offences charged against the persons so arrested. 
 
 The supreme chief accorded fully to the ideas above expressed, and 
 disclaimed any other meaning or intention of the sixth article of his de- 
 cree, and gave me to understand that either that article would be so 
 modified or the municipal authorities would be authorized and requested 
 to extend the invitation on the principles explained by me. 
 
 There is a strong desire among neutrals here to organize for self-pro- 
 tection on the principles I have above expressed, and I think all the 
 foreign ministers will agree in it. 
 
 Referring now to the seventh article of the same decree, I will say 
 that a serious question may arise whether that article does not violate 
 the spirit of the second article of our treaty with Peru. But on con- 
 sultation with the supreme chief he assures me that if I will give him 
 a list of the names of American citizens wishing to leave the country 
 he will at once cause the proper military passports to be issued ; and so 
 long as he does this I do not think it necessary to stand upon any mere 
 punctilios. 
 
 I will now only further, remark that if the decree of the archbishop 
 be faithfully carried into effect (which I doubt) it will place in the hands 
 of the government many millions of dollars — I should say not less than 
 $10,000,000, as the wealth of Peru is now mainly found in its churches. 
 But I doubt if the government will realize from this source one-fifth of 
 this amount. 
 
 On consultation with the foreign ministers here, I think we shall each 
 grant to our respective citizens here a certificate of citizenship, to be 
 placecl'upon the doors of their houses, certifying also that they are au- 
 thorized to use the flag, and that the commanders of the Chilian forces, 
 if they appear before Lima, will be informed of this and requested to 
 respect the flag and the houses over which it is raised. 
 
 I shall also open the legation to all who may choose to come to it for 
 refuge in case of danger. 
 
 With these precautions, I have no fear, so long as the Chilian soldiery 
 shall remain under the control of their officers ; but if in the midst of 
 conflict in the streets or the sacking of the city the soldiery should es- 
 cape the control of their officers nothing would be sacred, and I may 
 be doomed to destruction as well as others. But I trust to the moral 
 
384 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 force of our flag and do not permit myself to doubt the efficiency of its 
 protection. 
 
 I am, &c, 
 
 I. P. CHRISTIANCT. 
 
 [Enclosure 1 in Ho. 185.] 
 
 [South Pacific Times, July 5, 1880-] 
 
 The Government. 
 
 proclamation. 
 
 His excellency the Supreme Chief promulgated yesterday the following important 
 proclamation : 
 
 [Translation.! 
 Nicolas de Pierola, Supreme Chief of the Republic and Protector of the Native Race. 
 
 Considering : 
 
 That Lima having more than sufficient means of defense against any attempt of at- 
 tack on the part of the enemyj and it being necessary to place the city in a state to 
 effect this object in order to allow the government to employ the army in the more 
 active pursuit of the war, 
 
 I decree : 
 
 Article 1. The city and province of Lima are declared to be on a defensive military 
 footing. 
 
 2. The Mobile and Sedentary Reserve force of the province of Lima are called out 
 for active service ; consequently all Peruvians residing in the province of not more than 
 60 years of age and not less than 16, without distinction as to class or employment, 
 will present themselves to the proper authority withinl5 days from this date. 
 
 3. Those who belong to the Mobile and Sedentary Reserve will cease daily their occu- 
 pations from 10 a. m. until 2 p. m., and it will be their duty to present themselves in 
 uniform, at the places which their respective chiefs may appoint, in order to dedicate 
 2 hours to military exercises. In consequence the workshops and offices and commer- 
 cial traffic will be closed from 10 a. m. until 2 p. m. 
 
 4. The only persons exempt from military exercises are the ecclesiastics, doctors of 
 medicine, apothecaries, medical assistants, and others employed in the service of the 
 hospitals, civil and military ; also all employes in the public service belonging to the 
 departments of war and government, the prefecture of the department, and the sub- 
 prefecture of the province. Those who are physically incapable of taking up arms will 
 be exempted afterwards, according to the decision of the tribunal of qualification which 
 will be established for that purpose. 
 
 5. Those who do not present themselves within the time prescribed, or refuse to com- 
 ply with the duties to which they are called, will be sent immediately to the army for 
 active service. 
 
 6. Foreigners, residents in the province of Lima, are invited to organize and consti- 
 tute themselves as an urban guard, in order to take charge of property and preserve 
 order whilst the citizens are employed in the military seryice. The urban guard will 
 choose and propose the persons who are to command them. 
 
 7. No inhabitant of the capital will be allowed to leave it without a proper passport 
 from the military authority, with the exception of the purveyors and carriers of pro- 
 visions, registered as such and provided with a ticket to that effect. 
 
 8. All persons in possession of arms must present them to the prefecture within 15 
 days, and in exchange for them will receive a document accrediting their delivery, 
 in order that they may recover them or their value aB soon as the present state of things 
 may cease. Those who contravene this order or do not denounce those who have arms 
 in their possession will be considered as traitors to the Republic and liable to due pun- 
 ishment. 
 
 9. The defensive forces of Lima which do not belong to the active army or to the 
 Mobile Reserve will wear as uniform a blue tunic, girded with a leather shoulder-belt, 
 and cartridge-box ; cap to be of blue cloth, with a straight peak, with the number of the 
 battalion in yellow metal. The uniform of the officers will be the same, with the dif- 
 ference that they are to have on their tunics and caps white stripes and the number 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 385 
 
 of their battalion in white metal. The badges of the classes will be of red cloth, on 
 the shoulders and cuffs; the sword with a leather waist-band. The officers and men 
 belonging to the artillery will wear red stripes. The distinctive marks for officers are 
 to be white. All to be according to the patterns which will be supplied by the general 
 staff of this force. 
 
 The secretaries of war and government are charged with the carrying out of this 
 decree and the publishing of it by proclamation, and its circulation. 
 Given in the government house of Lima, on the 27th day of June, 1880. 
 
 NICOLAS DE PIEROLA. 
 Miguel Iglksias, 
 
 Secretary of War. 
 Nbmesio Orbegoso, 
 
 Secretary of Government. 
 
 [IncloBure 2 in No. 185.] 
 PASSPORTS. 
 
 We translate from LaPatria the following note, addressed by the secretary of gov- 
 ernment to the secretary of war, dated 30th ultimo, relating to passports : 
 
 Mr. Secretary op State por the War Department : 
 
 Under thiB date I have addressed the following note to the prefect of the depart- 
 ment : 
 
 For the due carrying out of the order comprised in the proclamation published on 
 the 28th instant, prohibiting any inhabitant of this province to leave it without the 
 requisite passport, duly issued by the military authorities, you will proceed to give 
 the necessary orders to the managers of the Transandine and Chancay Railways so 
 that they may not allow any passenger to leave the province of Lima unless he pre- 
 sent a passport issued by the secretary of war, with the signature or rubric of the Su- 
 preme Chief. You will also direct the governors and commissaries of police of this 
 province to see that the before-mentioned proclamation be strictly complied with ; 
 and you have further to command the snbprefects, governors, and police commissa- 
 ries of the other provinces of the department that they observe the same regulations 
 with passengers who may arrive from this department or province at the places of 
 their jurisdiction without this requisite, with exception of the purveyors or carriers of 
 provisions who can produce their tickets, making known at the same time to the last- 
 mentioned functionaries and to the managers of the railways that those persons who 
 shonld not present such authorization are to be compelled to return to this capital 
 under proper custody, and to be delivered up to the prefecture. 
 
 For the due observance of these regulations the province of Callao is considered as 
 one with that of Lima. 
 
 All which I have the pleasure to transcribe to your honor for your guidance as to 
 the regulations which you may consider necessary to communicate to" the military 
 commanders in this department. 
 
 May God keep your honor. 
 
 NEMESIO ORBEGOSO. 
 
 Mr. JEvarts to Mi; Christiancy. 
 
 No. 93.] Department of State, 
 
 Washington, July 30, 1880. 
 Sir : Having regard to the contents of a dispatch (No. 148) from Mr. 
 Osborn, minister of the United States at Santiago, wherein he inclosed 
 a copy of a letter of May 13, last, addressed to you, I telegraphed you 
 yesterday — 
 
 Press upon Peruvian Government our desire to aid in restoring peace on honorable 
 terms, between nations to which we are sincerely and equally friendly. A like in- 
 struction is sent to-day to Santiago. 
 S. Ex. 79 — -25 
 
386 AFFAIRS IN CHILI, Pi.RU, AND BOLIVIA. 
 
 In answer to Mr. Osborn's Xo. 148, above referred to, I have ap- 
 proved the tenor of that minister's letter to you, suggesting a method 
 by which the Government of the United States might make its good 
 offices available in mediation between the powers now at war on the 
 Pacific coast. 
 
 I am, &c, 
 
 W)I. M. EVAETS. 
 
 Xo. 273. 
 
 Mr. Christ iancy to Mr. Erarts. 
 
 [Confidential.] 
 
 Xo. 190.] Legation of the United States, 
 
 Lima, Peru, August 11, 1880. (Received September 17.) 
 
 Sir : Owing to the stringent police regulations adopted by the Peru- 
 vian Government (and I am disposed to think properly adopted) I have 
 been constantly employed in the protection of American citizens, when- 
 ever J have been able to work at all. I have been for some days so 
 out of health as to be unable to write. I dictate this to my clerk. 
 
 The pressure of business in the protection of American citizens is 
 now nearly passed. 
 
 And bearing in mind your instructions to avail myself of every op- 
 portunity to bring about a peace between Chili, Peru, and Bolivia, and 
 having received intelligence upon which, I think, I have good reasons 
 to rely, that all three of the belligerent nations are anxious for peace, 
 notwithstanding their public professions to the contrary, I have de- 
 termined to leave Lima for Santiago, Chili, with a view of opening the 
 way to negotiations to that end ; and I expect to leave to-morrow on 
 the United States steamer TVachusett for Valparaiso, and expect 
 to be absent between three and four weeks. It will be a special effort 
 of mine to avoid all publicity in this movement, until such measures 
 can be taken as to open negotiations, which, if once open, will, in my 
 opinion, by counter propositions and further negotiations finally result 
 in peace, probably through the friendly mediation of a neutral power, 
 and, as I hope, the United States. I am the more anxious for this result 
 because I have good reasons to believe that strong efforts are being 
 made for the intervention of European powers to put an end to the 
 present war. 
 
 I have, &c, 
 
 I. P. CHRISTIAXCY. 
 
 P. S. — I have no information from Mr. Osborn that the Chilian Gov- 
 ernment is desirous of peace ; but I have seen evidence which I deem 
 authentic and more direct that Chili is willing to make a proposition 
 through some third power. I am under a pledge not to state that evi- 
 dence at present even to you. 
 
 I. P. CHRISTIAXCY. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 387 
 
 No. 274. 
 
 Mr. Hay to Mr. Christiancy. 
 
 No. 97.] Department op State, 
 
 Washington, August 16, 1880. 
 
 Sir : On the 13th instant the following telegram was received from 
 the minister of the United States at Santiago : " Ohili will accept media- 
 tion in form suggested in my dispatch, May 20th." You were apprised 
 of that form by a letter of Mr. Osborn, addressed to you May 13, last, 
 and were informed by instruction No. 93, of July 30, that the Secretary 
 approved the same. 
 
 In reference to the above, you were telegraphed on the 13th instant 
 as follows : 
 
 Have reason to think Chili not indisposed to our mediations and that negotiations 
 might be opened under our auspices. Report to me your view as to disposition of 
 Peru. 
 
 I am, &c, 
 
 JOHN HAY, 
 
 Acting Secretary. 
 
 No. 275. 
 Mr. Hay to Mr. Christiancy. 
 
 No. 99.] Department of State, 
 
 Washington, August 16, 1880. 
 Sir: I have to acknowledge the receipt of your No. 175 in relation 
 to the charges brought by the Chilian authorities to the effect that Mr. 
 Merriam, consul of the United States at Iquique, has lent his position 
 there to the furtherance of Peruvian interests as opposed to those of 
 Chili. 
 
 ApproviDg your course in the premises, asking for a fuller report when 
 the course of events shall make it practicable, 
 I am, &c, 
 
 JOHN HAY, 
 
 Acting Secretary. 
 
 No. 276. 
 Mr. Hay to Mr. Christiancy. 
 
 No. 102.] Department of State, 
 
 Washington, August 25, 1880. 
 Sir: Eeferring to your Nos. 178 and 1S3 it would appear that the 
 information you had obtained up to the date of the latter in relation to 
 the treatment experienced by Mr. Nugent, consular agent of the United 
 States at Arica, and by the consulate there at the hands of the Chilian 
 forces on the capture of that place, is not sufficiently definite to enable 
 the department to make proper representations in the matter through 
 the minister of the United States at Santiago ; 
 
388 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 When you shall have learned the absolute state of facts yon will 
 please embody the same in a dispatch referring to this instruction by 
 number and date. On the receipt thereof the department will deter- 
 mine with relation to instructing Mr. Osborn in the premises. 
 I am, &c, 
 
 JOHN HAY, 
 
 Acting Secretary. 
 
 Xo. 277. 
 
 Mr. Christlancy to Mr. Evarts. 
 
 [Confidential and personal.] 
 
 Legation of the United States, 
 Lima, Peru, September 12, 1880. (Received October 22.) 
 
 Sir : Referring to the postscript to my dispatch Xo. 190, and having 
 this day returned from Santiago, I write this confidential note to ex- 
 plain the nature of the evidence I had received which induced me to 
 go to Santiago. 
 
 I had been shown an intercepted letter written by the President of 
 Chili to the Chilian admiral at Callao, in which he says in substance 
 that the government is desirous of peace and wishes to make some 
 proposition to Peru, and thinks it would be best to make it through 
 some third power. This letter was dated July 25. 
 
 I waited about eight days after seeing this letter, expecting to hear 
 from Mr. Osborn, but received nothing, and fearing that some other 
 power might be selected and that the United States might lose its 
 proper prestige, I suggested to Captain Gillis, the senior officer of our 
 squadron, that, as he had three vessels here whose business it was to 
 cruise along the coasts of the belligerents, it might conduce to the pub- 
 lic interest if he could send one south as far as Valparaiso, taking me 
 along and bringing me back. He sent the Wachusett, and I went along 
 and have just returned. Five days after I had left Mr. Osborn's letter 
 of July 31 was received here by my clerk, and on September 9 his letter^ 
 of August 12 and August 20, informing me of the provisional accept- 
 ance by Chili of our mediation, were received here in my absence, which 
 I have just opened. 
 
 As Mr. Osborn has kept you informed of his action and that of the 
 Chilian Government in reference to our mediation, so far as it appears 
 from the letters above referred to, I need not here go over the same 
 ground. 
 
 But I will say that if I could have known the contents of those letters 
 here before I went I should not probably have gone at all, and yet I 
 am now satisfied that it was well I did go, as it enabled Mr. Osborn and 
 myself to concert the proper mode of corresponding with Mr. Adams 
 at La Paz and with the several governments and of hastening an open- 
 ing of negotiations under the mediation of the United States. 
 
 For further particulars I refer you to my despatch Xo. 191. I ask 
 that the present letter may not go on the regular files of the depart- 
 ment, but that it may be treated as entirely confidential. 
 I have, &c, 
 
 I. P. CHRISTIAXCY. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 389 
 
 No. 278. 
 
 Mr. Ghristiancy to Mr. Evarts. 
 
 Ho. 191.] Legation of the United States, 
 
 Lima, Peru, September 13, 1880. (Received October 22.) 
 
 Sir: Referring to my personal and confidential letter to you of yester- 
 day, showing the reasons for my going to Santiago, I have the honor 
 to state that on the evening of the 27th August. 1 arrived at Santiago, 
 Chili, where I at once learned from Mr. Csborn what had taken 
 place between him and the Chilian Government, in reference to the en- 
 tering upon negotiations with Peru and Bolivia under the mediation of 
 the United States, of which I take it for granted Mr. Osborn has fully 
 informed you. 
 
 Mr. Osborn showed me your telegram Ho. 1 to him, without date, and 
 that of August 17, 1880 (a copy of which last I received, directed to 
 me, from our consul at Valparaiso, and which had been sent forward 
 to me to Lima, having to go by mail from Arica, and which I And here 
 upon my return). Mr. Osborn also showed me his note of the verbal 
 interview of the 6th August with the President and secretary of foreign 
 relations of Chili, dated August 10, which I suppose he sent to you. 
 
 But I learned from Mr. Osborn that, before his conference of the 6th 
 August with the Chilian Government, the minister of Italy, with the 
 concurrence of the French minister and the quasi approval of the En- 
 glish minister, had proposed to Chili a negotiation with Peru on the 
 basis of giving up to Chili the province or department of Tarapaca, in 
 full of everything, and had informed the Chilian Government that they 
 expected, through their colleagues of Peru, to get the assent of the Pe- 
 ruvian Government to these terms, which they had not yet obtained. 
 
 On the 28th August, by appointment arranged through Mr. Osborn, 
 we had a conference with Mr. Pinto, the President of Chili, and his 
 secretary of foreign relations, in which they confirmed the substance of 
 all Mr. Osborn had told me. I said to them that if the proposition 
 originating with the Italian minister should be accepted by Peru, there 
 was no occasion and no room for mediation of the United States or any 
 other power, as all the rest would be mere matter of form, and that the 
 respective governments could accomplish this themselves; the services 
 of mere couriers, instead of ambassadors, being all that would be neces- 
 sary. 
 
 I could r,eadily perceive that (though they did not in any way indi- 
 cate that any better terms would be granted) they had not full faith 
 that these terms would be promptly accepted by Peru, and they declared 
 that they had accepted the friendly mediation of the United States, and 
 should not retract it, though it might be rendered useless if the terms 
 proposed by the Italian minister should be accepted. 
 
 I learn since I have returned here that the ministers of Italy, France, 
 and England did not venture to propose to the Peruvian Government 
 the terms of peace proposed by the Italian minister in Chili, but had 
 simply inquired of the Peruvian Government if it was willing to appoint 
 ambassadors to confer with those of Chili upon terms of peace, and that 
 the Peruvian Government had to this given an affirmative answer. 
 
 I will further say that while at Santiago, in view of the failure of 
 the acceptance by Peru of the Italian proposition, and for the purpose 
 of having Bolivia also represented in any conference for peace imder 
 the mediation of the United States, it was arranged with the Chilian 
 
390 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Government that letters should be given me to the commanding general 
 (Baguedano) at Arica and to the Chilian admiral at Callao, which the 
 general would forward to Mr. Adams, at La Paz, by express, and that 
 the admirals should forward at the first opportunity any letter I should 
 write to Mr. Osborn. These letters were written and given to me, and I 
 have handed them to the general and the admiral. I also agreed with 
 Mr. Osborn upon a key to be used between him and me from Arica 
 south (as there is no telegraph north of that point). 
 
 Immediately on my return from the south, on the 11th instant, I had a 
 full conference with the Supreme Chief of Peru ; informed him of the 
 acceptance by Chili of the mediation of the United States and the pro- 
 posed negotiations, and asked him for a definite answer to be given 
 by the 14th. He asked me to give him in writing the substance of our 
 interview, which I did yesterday, a copy of which I inclose, and to 
 which I call your special attention, as it explains many details which 
 will save me the trouble of repeating here. He is to give me an answer 
 to-morrow, but I may not have it in time to go by this mail, which I 
 expect to send by the Lackawanna to-morrow morning. 
 
 I have no reason to doubt that the mediation of our government will 
 be accepted, and that ambassadors will meet at Arica (or. perhaps, at 
 Callao) from all the belligerent powers about the 5th October, and that 
 peace will be the result. 
 
 The only unfortunate circumstance is that a Chilian expedition is 
 now operating at Chimbote and along the north coast of Peru, which 
 creates much irritation, as they are levying contributions not only upon 
 towns but upon private property, even of neutrals. But this is no 
 fault of mine, since, if the Peruvian Government had authorized me 
 to say to the Chilian Government that she was ready to negotiate 
 (which I was morally certain she was, but did not wish to appear as 
 asking peace), I could, I am confident, have prevented the operations 
 of this expedition. But I was not authorized to state this to the 
 Chilian Government. Peru must take the consequences. 
 I have, &'■., 
 
 I. P. CHBISTIAXCT. 
 
 P. S. — September 11. I am verbally informed by the supreme chief 
 of Peru this morning that Peru, accepts, and that he will seud me an 
 official note to that effect this evening, but I may not receive it in time 
 to go by the Lackawanna for Chimbote with this letter tomorrow 
 morning. 
 
 I. P. CHEISTIAXCY. 
 
 [loclosure in N/o. 191.] 
 
 Mr. I'hrisliaticy to Mr. Barinaga. 
 
 Legation of the United States, 
 
 Lima, Peru, Se2>tember 11, 1SS0. 
 
 Monsieur le Secretaire : I have the honor to inform you that I have just returned 
 from Santiago, Chili, where I went for the purpose of consulting my colleague, Mr. 
 Osborn, United States ruiuister to Chili, and to ascertain so far as I could, the disposi- 
 tion of the Chilian (Government in reference to putting an euri to the war now uuhap- 
 pily existing between that country on one side and Peru aud Bolivia on the other. 
 
 I am happy to be able to inform you that, my colleague (Mr. Osborn) had already^ 
 as early as the fith of August last, had a conference with the Chilian Government in 
 reference to entering upon negotiations for peace, under the auspices of tbe friendly- 
 mediation of the United States of America, and that he found the Chilau Government 
 ■well disposed to that end and to that mode of reaching it. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 391 
 
 And that your government may be fully possessed of the facts bearing upon this 
 question and of the mode proposed for effecting the object, I give you below the note 
 made by Mr. Osborn of his verbal conference with the (Jhilian Government, and I will 
 further say that this proposed mode of proceeding has been submitted to and expressly 
 approved by the Government of the United States. 
 
 " Memorandum of conference. 
 
 " On the 6th of August, 1880, Mr. Osborn visited President Pinto and Minister Val- 
 derrama, touching the subject of mediation by the United States in the present war, 
 and after some general conversation, in which the President expressed himself desir- 
 ous of arriving at an early peace, Mr. Osborn read from a telegraphic message he had 
 received from Mr. Evarts, Secretary of State of the United States, instructing him to 
 press upon the Chilian Government the desire of the United States to aid in restoring 
 peace. 
 
 " The President expressed his gratitude to the President of the United States for his 
 kindness, but thought that the great distance intervening and the difficulties in the 
 way of mail communications presented obstacles to prompt action, if meditation should 
 mean reference of all matters to Washington. Mr. Osborn replied that he understood 
 that the United States Government was desirous of serving the belligerents in what- 
 ever way might seem best calculated to procure the desired result, and as to them 
 might seem advisable ; but, that, anticipating the force of the suggestion of President. 
 Pinto, in May last, he had written to the government at Washington, and to his col- 
 league at Lima, suggesting that if the United States should be called upon to mediate, 
 in his judgment, the best mode of proceeding would be to request the belligerent gov- 
 ernments to appoint duly empowered ambassadors to meet at some point on their 
 coast on board an American man-of-war, and there to confer regarding the settlement 
 of their difficulties in the presence of and with the advice and assistance of such ambassa- 
 dor or ambassadors as the United States Government might designate for that pur- 
 pose. 
 
 " To his dispatch to the foregoing effect, Mr. Osborn stated that he had not yet re- 
 ceived an answer, but that he believed that his suggestion would prove acceptable to 
 his government. President Pinto and Minister Valderrama expressed themselves as 
 satisfied with the form suggested for mediation, and the President, after a confer- 
 ence with his advisers, cans d Mr. Osborn to be informed, at another conference with 
 Minister Valderrama, on the 10th of August, that the Chilian Government would be 
 pleased to accept the services of the United States Government in the capacity of a 
 mediator in the form by Mr. Osborn suggested, August 10, 1880." 
 
 I will further say that I personally had an interview with the President and Secre- 
 tary of State of Chili, who confirmed to me the substance of Mr. Osbom's note, and 
 wished to know of me if the Government of Peru was willing to accept the mediation 
 of the United States, and to enter upon negotiations in that way. I was compelled to 
 say that I had no authority from the Peruvian Government to answer that question ; 
 but that I could only give them my impression ; that as Chili had accepted the media- 
 tion of the United States, neither Peru nor Bolivia would refuse it. 
 
 Mr. Osborn wrote to Mr. Adams, our colleage at La Paz, some three weeks ago, ex- 
 plaining the whole matter, and requesting him to ascertain the disposition of the 
 Bolivian Government and to let him and me know ; but mails to La Paz are uncertaiu, 
 and both Mr. Osborn and myself wrote him while I was there, and the secretary of 
 foreign relations wrote to General Baguedano (the Chilian general), who promised to 
 forward tbem at once, and if Bolivia assents we requesed Mr. Adams to be at Arica 
 with the ambassadors of Bolivia by the 5th October. 
 
 The Chilian Admiral Riveros has been instructed to hasten forward any letters I 
 may wish to send to Mr. Osborn. 
 
 The Chilian Government assents that Peru may send an unarmed vessel to Aricafor 
 the convenience of her ambassadors and their conveyance there, if desired, and Admi- 
 ral Riveros has orders accordingly. 
 
 It now only remains for yonr government to decide whetbei it will accept the friendly 
 mediation of the United States to open negotiations in the manner proposed. 
 
 I improve this opportunity to express to your excellency the high regard and esteem 
 with which I subscribe myself, &.c, 
 
 I. P. CHRISTIANCY. 
 
 His Excellency Senor Don Manuel M. Barinaga, 
 
 Secretary of the Treasury, and Acting Secretary of Foreign Relations, $-c, of Peru. 
 
392 AFFAIRS IX CHILI, PERU, AND BOLIVIA. 
 
 So. 279. 
 
 Mr. Christiancy to Mr. Etctrts. 
 
 ~So. 194.] Legation of the United States, 
 
 Lima, Peru, September 17, 1880. (Eeceived October 18.) 
 
 Sir : Beferring to my dispatch Xo. 191, I have the honor to inclose 
 to you the reply of the supreme chief of Peru, sent me in wiiting, to- 
 gether with a translation. The document, as you will see, is peculiar : 
 though it does clearly accept the mediation of the United States, and by 
 implication, when construed with reference to the circumstances and the 
 verbal explanation of the plan of negotiations, must be understood as 
 consenting to the negotiations in the manner proposed, with an indig- 
 nant protest against the acts of Chili along the north coast of Peru, the 
 main and direct object of which seems to be the levying of contributions 
 upon private property, and destroying the property in case of non-pay- 
 ment — a mode of warfare the legitimacy of which is at least questionable, — 
 and which the general opinion of the diplomatic corps here pronounces 
 inadmissible under the humane principles of modern warfare, though 
 all admit the right of a belligerent under the present recognized laws of 
 war to impose contributions upon towns, cities, and other political or- 
 ganizations of an enemy's country, as well as the right to destroy indi- 
 vidual property whenever it may become incidentally necessary in car- 
 rying out any proper military enterprise, but not the right to demand 
 forced contributions from the owners of mere private property, or to- 
 destroy such property, and to make this the special end and object of 
 an expedition where there is no armed enemy to be opposed, and the 
 owners are non-combatants. 
 
 I send copy of telegram from Colonel Lynch, Chilian commander, to 
 Mr. Derteano, owner of a sugar estate worth $3,000,000, which has 
 been destroyed for non-payment. 
 
 I deeply regret this expedition as very inopportune, so far as it affects 
 the question of peace, but I was in no condition to ask Chili to refrain 
 from it so long as I could not assure them of the acceptance by Peru 
 and Bolivia of our mediation, nor was there any express understanding 
 with Chili that they should refrain from any military operations prior 
 to the opening of negotiations. 
 
 I wrote a letter to Mr. Osborn from Arica September 7. and a similar 
 one to Mr. Adams. I send you here a copy of that to Mr. Osborn, as 
 ollows : 
 
 Arica, September 7, 1*80. 
 Hod. Thomas A. Osborn, 
 
 Santiago, Chili : 
 
 Sir : I have to advise yon of my arrival at this port at d a. m. to-day, on board the 
 Wachusett. I found that General Baguedano was absent in Tacua, but Colonel Val- 
 divieso, commander of the»posr, called upon me at once and offered his services. 1 de- 
 livered to him the letter of the minister of foreign relations and my dispatches, to be 
 forwarded to La Paz, calling up'>n him lor that purpose at headquarters. 
 
 Allow me to say that, in my opinion, as soon as ambassadors shall have met for nego • 
 tiating peace, with the mediation of the United Stat-s, an armistice of two or three 
 weeks at least should be established, as I thiuk it would iucrease the probability of 
 success, to avoid during the negotiations all further causes of irritatiou during the con- 
 ference. In fact, without such armistice it would be naturally inferred that the party 
 or parties refusing the armistice had little faith in the result. Besides, it seems to me 
 it would not be entirely respectful to the United States, as mediator, to refuse such ar- 
 mistice. 
 
 Your dispatch received just as I am closing th>s. I can find no dispatches or letters 
 to or for you here, nor for Mr. Adams. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 393 
 
 Immediately on receiving verbal notice from the supreme chief of the 
 acceptance of our mediation, on the 13th instant, I wrote to the com- 
 mander of the Chilian expedition a letter, of which I send you copy (a 
 copy of which was also sent to the Chilian admiral on same day). 
 
 Jn the 14th I wrote him another letter for the protection of property 
 of Edward C. DuBois, of which I inclose copy. 
 
 On the 15th instant I went on board the Chilian admiral's ship to see 
 if he could forward a letter or dispatch (from me to Mr. Osborn) to Arica, 
 to be telegraphed thence, but he had no vessel which he could send, and 
 knew of no mode earlier than the mail steamer for the south, which 
 would not go before the 19th or 20th. I left with and showed to him a 
 telegraphic dispatch for Mr. Osborn, informing him of acceptance of 
 mediation bv Peru and Bolivia, inclosed in a letter to our consular agent 
 at Arica, to be sent by telegraph from Arica. These the admiral was 
 to send by his first opportunity. 
 
 On my return to the Lackawanna I suggested to Captain Gillis to send 
 the Wachusett to Arica to deliver a letter and dispatch to our consular 
 agent there, a copy of which letter and dispatch I here inclose. Captain 
 Gillis assented, and the Wachusett left on the morning of the 16th, which_ 
 will get the dispatch to Mr. Osborn from four to six days sooner than it 
 could have gone by the mail steamer. 
 
 While on board the Blanco Bncalada, the admiral informed me that 
 both he and Colonel Lynch (commander of the laud expedition) had orders 
 to spare the property belonging to neutrals as far as possible. 
 
 I thereupon wrote to Colonel Lynch, on the 16th instant, the letter (of 
 which I here inclose copy) in behalf of John W. Grace, an American 
 citizen, which may serve as a sample of many others which I have since 
 written, and upon which I have been kept nearly all my time busy. 
 Copies are preserved and can be sent if you wish ; but I have not cleri- 
 cal force to send them all now. 
 
 On the 16th instant I met the diplomatic corps here at the call of the 
 dean, to consider some matters of little importance, about which I will 
 not trouble you now, and after these things were disposed of I volun- 
 teered to make a candid statement to them of all that had occurred in 
 Chili in reference to the mediation of the United States, assuring them, 
 as I believe the truth to be, that the American ministers had not, in any 
 way, sought to defeat any of the efforts of the ministers of other nations 
 to bring about a peace ; that the information received from the Govern- 
 ment of Chili and from Mr. Osborn only gave me to understand that the 
 attempt at negotiation initiated by the Italian and French ministers was 
 based upon the idea that Peru, as a preliminary condition to negotia- 
 tion, was to assent to the cession of Tarapaca to Chili, which Peru had 
 not yet assented to, and the Chilian Government did not seem to trust 
 that she would in the first instance, and as an indispensable condition 
 to negotiations, and had therefore accepted the mediation of the United 
 States; that 1 had said to the Chilian Government that if the supposed 
 proposition, based upon the cession of Tarapaca, should be accepted by 
 Peru there was no occasion for any mediation, &c, and that, therefore, 
 I had not supposed that the proffered mediation could, in any way, 
 antagonize the negotiations set on foot by the Italian and French min- 
 isters and approved by the English minister here; that the common 
 interest of all neutral nations was for peace between the belligerents, 
 and that I did not suppose that any government sought — and I knew 
 that my government did not seek — any peculiar advantage from a 
 treaty of peace, nor any advantage which would not be common to all 
 other neutral nations ; that I had never made any secret of the fact, 
 
394 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 but had uniformly told them, for more than a year past, that the United 
 States was ready to offer her friendly mediation, whenever all the bellig- 
 erents should indicate their willingness to accept it, notice of which had 
 been communicated to all the belligerents. 
 
 In answer to these explanations I, for the first time, learned from the 
 Italian, French, and English ministers here that Chili had ever in- 
 timated to them or their colleagues at Santiago a willingness to enter 
 upon negotiations at large, and without the indispensable condition, as 
 a basis, of the cession of Tarapaca ; but I was now (September 16), for 
 the first time, informed of this, and that Peru had assented to it. But 
 the Government of Peru had never given me any such intimation, and 
 has not now. 
 
 The supreme chief has been absent since the 16th at the north, and 
 has not yet returned. I have explained to all the diplomatic corps 
 everything in relation to the mediation of the United States (except 
 the telegrams to me and Mr. Osboru). 
 
 There is evidently some chagrin on the part of the ministers of Italy r 
 France, and England, that their good offices (tendered, I am bound to- 
 suppose, in equal good faith) have been rejected and our mediation 
 accepted, but so far as I am able to discover they can only complain of 
 the government of Chili, as the ministers of the United States have 
 acted in perfect good faith, so far as I know and believe. 
 
 As I have some slight reason to suspect (and most of the foreign 
 ministers here believe), from information from the South, that Chili 
 maybe contemplating an expedition against Lima, which I think wholly 
 inconsistent with mediation in the mode proposed, I prepared and sent 
 away yesterday, by the British mail line, the dispatch to Mr. Osborn, 
 of which I send you a copy (which is to be telegraphed from Arica). 
 
 Should this expedition take place before and in the face of the pro- 
 posed negotiations, I shall be compelled to look upon it as a violation 
 of good faith, as I must be, and the Chilian Government must neces- 
 sarily have known that I must be, here to protect my legation and the 
 citizens of the United States in such contingency. 
 
 I have, &c, 
 
 I. P. CHEISTIAXCY. 
 
 [Inclosure 1 in No. 194. — Translation.] 
 
 Mr. Barinaga to Mr. Chrisiiaiiey. 
 
 Office of the Secretary for Foreign Affairs, 
 
 Lima, September 14, 1880. 
 
 Mr. Minister: Havingbeen informed by your excellency of your voyage to Santiago- 
 tie Chili, with the object of offering to the government of that republic the mediation 
 of the United States m order to ''ring about a peace with Pern and Bolivia, a mediation 
 which, having been accepted by Chili, you have therefore proposed to my government, 
 I have to make known to your excellency that, after conferring with the minister pleni- 
 potentiary of Bolivia, my government has decided to accept your offer, purely from 
 deference to the Government of the United States, and notwithstanding that the motives 
 which induced Chili to declare war against Pern and the manner iu which she has car- 
 ried it on up to the present day prove to ns how far she is from the path of moderation 
 and justice, without which uo peace is possible, as I had the honor to make kuown to 
 your excellency in our verbal conference upou this matter. 
 
 The acts which the Chilian forces have just committed more than a hundred leagues 
 distant from our army, and without any warlike object, sacking, burning, and destroy- 
 ing tbe property of both natives and foreigners, immediately after accepting tie 
 mediation of your goverhment, are not only not compatible with the regard due to a 
 friendly mediator, but create a feeling of indignation which it is very difficult to re- 
 
PERU, AND BOLIVIA. 395 
 
 press. My government limits itself to the expression of this feeling, leaving to that 
 of your excellency, and to your excellency also, the manner of appreciating our con- 
 duct. 
 
 My government believes that, if its desire for peace and the regard it has for the gov- 
 ernment and people of the United States have determined it (notwithstanding the evi- 
 dent justice of its cause and the confidence it has respecting the exit of the war, and 
 leaving on one side all that we have suffered), to entertain negotiations for peace, still 
 all such motives "will fall before the painful evidence we have that we are fighting witb 
 those who infringe the laws of civilization and the respect which every nation should 
 show one to another. 
 
 I have the pleasure on this occasion to offer to your excellency my esteem. 
 
 MANUEL A. BAEINAGA. 
 
 His Excellency Mr. I. P. Ciiristiancy, 
 
 Envoy Extraordinary and Minister Plenipotentiary of the United States of America* 
 
 [Incloaure 2 in No. 194 — Telegram.] 
 
 § 
 Colonel Lynch to Mr. Derteano. 
 
 T. Derteano : 
 
 In accordance with the instructions which I have received from my government, I 
 impose on your sugar factory (Ingeuis) of Palo Seco a war contribution of 100,000 pesos, 
 in silver, or the equivalent of this f>um. If you do not reply immediately, giving the> 
 corresponding orders to your employ^ to pay the said contribution, I shall have, to my 
 regret, to destroy completely the factory of Palo Seco. You may state the manner o£ 
 paying the mentioned war contribution . 
 
 (Signed :) The chief of the division of the Chilian army at Chimbote. 
 
 [Inclosure 3 in No. 194.] 
 Mr. Christianey to Mr. Oshorn. 
 (In the body of Mr. Christiancy's dispatch.) 
 
 [Inclosure 4 in No. 194.] 
 
 Mr. Christianey to the Chilian Commander. 
 
 No. 72.] Legation of the United States, 
 
 Lima, Peru, September 13, 1880.. 
 To the Commander of the Chilian forces at Chimbote and in the north of Peru : 
 
 Sir: I have just returned from Santiago, where, with the American minister, Mr. 
 Osborn, I had a full and free conference with the Chilian Government, which has ac- 
 cepted the mediation of the United States for the negotiations of peace with Peru and 
 Bolivia. I am now authorized to say that Peru accepts tbat mediation, and that ne- 
 gotiations for peace will be at once entered upon. When I consulted with the Chilian 
 Government I was not authorized to say that Peru would accept the mediation of the 
 United States, but now I am authorized to say that Peru accepts and that the ambas- 
 sadors of all the belligerents are likely to meet as early as the fore part of October next 
 for that purpose, 
 
 I do not and cannot assume to interfere with any instructions you may have from 
 your government as to the course you have been directed to take ; but you will, I hope,, 
 appreciate my motives and those of the government I represent (which is equally 
 friendly to all the belligerents) when I suggest to you that, so far as your orders will 
 permit, it would be judicious and tend to the attainment of an early peace, to avoid all 
 depredations and causes of irritation not rendered obligatory by your orders. And you- 
 will permit me to say that I know there is a very strong feeling among the ministers, 
 of foreign governments here and at Santiago against depredations upon mere private 
 property not demanded by some actual military necessity in attacking the armed forces- 
 
396 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 of your enemy, or the levying contributions upon it, and especially as such depreda- 
 tions may be committed or forced contributions levied upon private property known 
 to belong to citizens of friendly and neutral nations, from which, as you can readily 
 see, many complications and reclamations may arise. 
 
 The Government of Chili will be at once informed of the acceptance byPeru of the 
 friendly mediation of the United States and her readiness to enter upon negotiations 
 under such auspices. 
 
 Had I been able while at Santiago to assure the Chilian Government of the willingness 
 of Peru thus to enter upon negotiations, as Chili consented to do, I am strongly in- 
 clined to the opinion that, if your expedition had been dispatched at all, it would have 
 been under orders somewhat modified and less stringent than they now probably are ; 
 but I cannot ask you to adopt my opinion. I fnlly recognize the fact that you must 
 act upon yonr own views of what the circumstances and the orders of your government 
 may demand. 
 
 Allow me in conclusion to express to your excellency the high regard and esteem 
 with which I subscribe myself, &c, 
 
 I. P. CHRISTIANCY, 
 Untied States Minister to Pent. 
 
 [Inclosare 5 in Ko. 194- ] 
 
 Mr. Christiancy to the Chilian Commander. 
 
 No. 73.] Legation of the United States, 
 
 Lima, Peru, September 14, 1880. 
 
 To the Commander of the Chilian j 'orces at Chimbote and in the north of Peru : 
 
 Sir : I am well aware that the property of neutrals in an enemy's country must, to 
 a considerable extent, abide the like risks of war as that of individual citizens of the 
 enemy's country. 
 
 But one of the principal causes of this rule is the difficulty which the attacking 
 belligerent must encounter in ascertaining whether the property belongs to citizens of 
 a friendly nation or to those of the belligerent nation. For the purpose of enabling 
 you to decide this question in the case I am about to present, I have the honor to inform 
 you that the Hacienda Suchiman, thirty miles from the port of Chimbote, and upon 
 the line of the Chimbote and Huaraz Railway, is the exclusive property of Edward C. 
 DuBois, a citizen of the United States of America, and that he is also the owner of all 
 the buildings, crops, stock, and property on said Hacienda, due proof of which own- 
 ership has been filed in this legation. 
 
 I should, therefore, esteem it as a friendly act towards the Government of the 
 United States if said Hacienda and property can be exempted from all depredations 
 not rendered actually necessary by the exigencies of war. 
 
 Please accept the assurance of the high regard and esteem with which I have the 
 honor to subscribe myself, &c, 
 
 I. P. CHRISTIANCY, 
 United States Minister to Peru. 
 
 [Inclosare 6 in ~Ko. 194.] 
 
 Mr. Christiancy to Mr. Xugent. 
 
 Legation op the United States, 
 
 Lima, Peru, September 15, 1880. 
 Dear Sir : Please send by government telegraph the inclosed dispatch to Mr. Os- 
 born, American minister to Santiago, without a moment's delay. 
 
 Please also forward to him by first mail the letter I send you for Mr. 03born, by 
 steamer. 
 
 Yours truly, 
 
 I. P. CHRISTIANCY, 
 C. M. Nugent, Esq., 
 
 United States Consular Agent, Arica, Peru. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 397 
 
 [Inelosure 7 in No. 194.— Telegram.] 
 
 Mr. Christiancy to Mr. Osborn. 
 
 Legation of the United States, 
 
 Lima, Peru, September 15, 1880. 
 Hon. Thomas A. Osborn, 
 
 United States Minister, Santiago : 
 Peru accepts; Bolivia, through her minister here accepts. But the depredations 
 now being committed upon private property of non-combatants along the coast of 
 Peru are calculated to exasperate the people and defeat the prospect of peace. 
 
 I. P. CHRISTIANCY. 
 
 [Inclosnre 8 in 194.] 
 
 Mr. Christiancy to Chilian Commander. 
 
 Legation op the United States, 
 
 Lima, Peru, September 16, 1880. 
 To the Commander of the Chilian forces along the coast of Peru, North of Callao : 
 
 Sir : Being informed by Admiral Tuneros that the orders of your government to him 
 and to yourself are to spare as far as possible the property of citizens of neutral and 
 friendly nations, which I am sure will be properly appreciated by all such nations, in 
 order to enable you to carry into full effect the good intentions of your government. 
 I take the liberty of informing you that John W. Grace, esq., recently of California, 
 now temporarily resident of Lima, is a citizen of the United States of America, and 
 entitled to protection as such, and I further certify that he has filed in this legation 
 satisfactory and clear evidence that he is the true and lawful owner of the sugar estate 
 known as Checlin and Hacienda Arrelea, situated in the province of Trujillo, and yon 
 will allow me to express the hope that these properties may be exempted from injury 
 by your forces. 
 
 Please accept the assurance of the high regard and esteem with which I have the 
 honor to subscribe myself, &c, 
 
 I. P. CHRISTIANCY, 
 Envoy Extraordinary and Minister Plenipotentiary of the United States to Peru. 
 
 [Inclosnre 9 in 194. — Telegram.] 
 
 Mr. Christiancy to Mr. Osborn. 
 
 Legation of the United States, 
 
 Lima, Peru, September 16, 1880'. 
 
 Hon. Thomas A. Osborn, 
 
 United States Minister, Santiago, Chili : 
 Should the reputed expedition of the Chilian army to Lima take place before and in 
 the face of the proposed negotiations there will be no mediation. It would place the 
 United States in an ignominious position. The acceptance of Peru might be with- 
 drawn, and I should not be able to loave Lima, though it were not withdrawn ; as in 
 that event I should be compelled to be at my post here and all our naval vessels would 
 have to be here. If Chili does not wish to prevent peace she will not send this expe- 
 dition now. If expedition does not come, expect to be at Arica with ambassadors about 
 5th October. 
 
 I. P. CHRISTIANCY, 
 
 United States Minister. 
 
 No. 280. 
 Mr. Christiancy to Mr. JEvarts. 
 
 No. 195.] Legation of the United States, 
 
 Lima, Peru, September 18, 1880. (Received October 22.) 
 Sir : Referring to your dispatch No 90, in reference to complaint of 
 Chilian Government against Mr. Merriam, our consul at Iquique, I have 
 
398 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 the honor to inform you that I had no means or opportunity to investi- 
 gate the charge until I went south to Santiago, as stated in my recent dis- 
 patches. I was informed by Mr. Osborn, at Santiago, as well as by the 
 office of foreign relations there, that Mr. Merriain was suspected of 
 being the medium of communication between Peruvian officers and 
 their government, and of being generally friendly to Peru, but the only 
 specific charge against him was that sent you by Mr. Osborn, to which 
 you refer in your dispatch Xo. 90. 
 
 On my return from Valparaiso, on September 6, 1880, I got the Wa- 
 chusett to stop at Iquique (finding we should lose no time, as we should 
 otherwise arrive at Arica in the night and have to wait till morning.) 
 1 there called upon Mr. Merriain, who most explicitly denied the only 
 specific charge made against him, that of forwarding a letter or at- 
 tempting to forward a letter from the Peruvian general, Montero, to 
 his government, and all notice or knowledge that any such letter as 
 that referred to had ever been addressed to him, or that he had ever 
 received it. 
 
 I inclose here a copy of his statement made in writing, September 
 ■6, 1880, also a copy of his supplemental letter of September 6, received 
 by me three days since by mail. 
 
 It will be readdy seen that, in the face of these letters, I cannot re- 
 move Mr. Merriain without some evidence tending to impeach his state- 
 ments. I saw the captain of the port of Iquique September 6, and 
 said to him that I had no evidence of any wrong in this matter on the 
 part of Mr. Merriam, and that if he had any, I would thank him to 
 forward it to me, as our government would not uphold our consul in 
 aiding to keep up such correspondence of Peruvian officers to the prej- 
 udice of Clnli. 
 
 Certainly the mere attempt of General Montero to get Merriam to 
 forward the letter in question, without any knowledge of this on the 
 part of Merriam and without such letter ever reaching his hands, can- 
 not be treated as evidence against him. He married a Peruvian wife, 
 and his sympathies may be with Peru, and probably are so, but this is 
 too indefinite a cause for me to act upon in removing him. The dej>art- 
 ment has a larger discretion. 
 I am, &c, 
 
 I. P. CHKISTIANCY. 
 
 [Ie closure 1 in Xo.195.] 
 
 Mr. Merriam to Mr. Christiancy. 
 
 September 6, 1880. 
 * * * With reference to the subject of your dispatch, marked " confidential," 
 ■dated Jane 10 last, I will state to you that your dispatch gave me the first intima- 
 tion which I ever had that Geueral Montero had ever proposed to send official corre- 
 spondence through this consulate. Had he or any other of the belligerent parties pro- 
 posed to me to forward such communications"! should certainly have refused to do so. 
 The correspondence referred to never came into my possession, nor did I know until I 
 received your letter that such correspondence had been sent to my care ; nor have I 
 ever to my knowledge been the medium of communication, directly or indirectly, since 
 the beginning of the war up. to the present time, between the belligerents. 
 
 J. W. MERRIAM, 
 United States Consul. 
 
AFFAIRS IN CHILI, PERU, AND BOLiyiA. 399 
 
 [Inclosure 2 in No. 195.] 
 
 Mr. Merriam to Mr. Christiancy. 
 
 Consulate of the United States, 
 i Iquiqne, September 6, 1880. 
 
 Sir: As supplementary to the conversation which we had in the consulate this morn- 
 ing I wish to put in writing, in an official form, one or two statements with reference 
 to the subject of your dispatch marked " confidential," dated June 10 last. I will 
 state that that dispatch gave me the first intimation which I ever had that General 
 Montero had ever proposed to send official correspondence through this consulate. 
 
 Had he or any other of the belligerent parties proposed to me to forward such com- 
 munications I should certainly have refused to do so. 
 
 The correspondence referred to never came into my possession, nor did I know until 
 I received your letter that such correspondence had been sent to my care ; nor have I 
 ever, to my knowledge, been the medium of communication, directly or indirectly, 
 since the beginning of the war up to the present time, between the belligerents. 
 I have, &c, 
 
 J. W. MERRIAM. 
 
 No. 281. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 ~So. 197.] Legation of the United States, 
 
 Lima, Peru, September 30, 1880. (Beceived November 16.) 
 
 Sir : I leave to-morrow morning on the Lackawanna for Arica, to at- 
 tend the proposed negotiations there, the Peruvian negotiators going 
 on an unarmed ship of their own, the Limena. Owing to the Chilian 
 operations along the north coast of Peru, and the destruction of public 
 and private property there (where there is no Peruvian armed force), 
 and the exasperation thus caused, the whole scheme of mediation has, 
 after it had been agreed to by Peru, and I had notified Mr. Osborn of 
 this, been upon the point of being abandoned and rejected by Peru, 
 and it has been only after my most earnest and repeated efforts that 
 she has finally agreed to go on with the attempt to negotiate under our 
 mediation ; and, I confess, 1 have not now so strong a hope of a success- 
 ful issue of the negotiations as I had three weeks ago. 
 
 Chili has evidently for the present determined to insist upon the 
 •cession of Tarapaca, and the Peruvian Government profess to have de- 
 termined not to cede an inch of territory. 
 
 Both Peru and Bolivia now prefer the arbitration of the United States 
 to her mediation, because they think that the demands of Chili will be 
 so exorbitant that no agreement can be reached, and they wished to 
 change the whole programme to that of arbitration. I have said to 
 them that this would be departing from all the preliminary arrange- 
 ments which had been agreed upon by all the parties ; that it would 
 lead to delay, as our government would first have to be consulted as 
 well as that of Chili, and that it would place the Governments of Peru 
 and Bolivia in an awkward position, after both had accepted, now to 
 retract; besides, it would be in no way complimentary to the United 
 States, to say the least; that it was best to make the attempt to nego- 
 tiate as at first proposed ; and if that should disclose an impossibility 
 to agree upon terms, then arbitration might be attempted and even pro- 
 posed by the negotiators ; but that it was in every way desirable that 
 all the belligerents should, if possible, first agree upon some general 
 basis, and then to submit minor questions only to the arbitration of a 
 
400 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 third power ; as no such third power would desire to decide upon the 
 whole question (upon an open field) upon what terms the belligerents 
 should settle a peace, &c. They have finally yielded to this reasoning, 
 and the attempt to negotiate under our mediation will proceed. 
 
 I have been so constantly engaged in these matters and in providing 
 for the protection of American citizens, especially during my absence 
 and in making preparations to leave, that I have not been able to write 
 you tipon several subjects of interest, nor even to prepare my quarterly 
 account for the quarter ending to-day, but I have instructed my clerk, 
 Mr. Renant, to send you several newspapers showing the operations of 
 the war and the financial expedients resorted to here ; and if any great 
 event likely to be interesting to you should occur here during my ab- 
 sence to inform you, signing his name only as my clerk. 
 I have, &c, 
 
 I. P. CHRISTIAXCY. 
 
 No. 2S2. 
 
 Mr. Christiancy to Mr. Hearts. 
 
 No. 198.] Legation of the United States, 
 
 On board U. iS'. Steamer Lackaicanna, 
 Bay of Ariea, Fern, October 21, 18S0. (Received November 16.) 
 
 Sir : Referring to my last dispatch from the legation at Lima, No. 197, 
 I will say that I left Lima on the morning of October 1 and went on 
 board the Lackawanna, which was ready to sail at 12 in., and we had 
 expected the Chilian vessel Chalaco, with the Peruvian plenipotentiaries 
 to be ready to leave then ; but she did not get out of port until even- 
 ing. We, therefore, did not leave until 6 a. m. of the 2d instant. The 
 Peruvian Government was averse to Arica as the place of negotiations, 
 and ordered their vessel to stop at Mollendo, hoping that I would be 
 able to get Chili to consent that the negotiations should take place 
 there or at some other place north of Pacocha and not in possession of 
 Chilian troops. We, therefore, left the Chalaco with the Peruvian 
 plenipotentiaries at Mollendo, where I had expected to meet Mr. Adams ; 
 but, he not having arrived, I telegraphed him to come on, and I then 
 went on to Arica with the Lackawanna, where I arrived at daylight on 
 the (>th instant, expecting to find Mr. Osborn and the Chilian plenipo- 
 tentiaries, but found they had not arrived, and from telegrams from him 
 and a letter I received here, found it a little doubtful whether they were 
 coming at all. By the 9th, however, it was settled that they would 
 come. In the mean time I had been making an effort to induce the 
 Chilian Government to consent to a change of place, but finding they 
 would not consent to a change iintil preliminaries should be agreed 
 upon, and that if we waited for the mail-steamer to communicate with 
 the Peruvian negotiators some days might be lost, I induced Captain 
 Gillis to return with me to Mollendo, where I met them and explained 
 the situation, but got no express consent from them to come to Arica. 
 
 Mr. Adams and the Bolivian negotiators arrived at Mollendo while 
 we were there on the 12th instant, and Mr. Adams came with us here, 
 leaving Mollendo on the 11th in the morning, and arriving here in the 
 evening, yet uncertain whether the Peruvian plenipotentiaries woidd 
 come here, but informing them that we 1 should wait here for them a 
 short time, and if they did not come, should start for Callao. 
 
- AFFAIRS IN CHILI, PERU, AJN'D BOLIVIA. 401 
 
 Mr. Baptista (one of the Bolivian negotiators who had come down 
 with us) wrote to his colleague and the Peruvian negotiators at Mol- 
 lendo, urging them to come, and 1 also wrote, and on the evening of 
 the 20th instant, the Ohalaco arrived here with the negotiators of Peru 
 .and the remaining one from Bolivia, Mr. Osborn and some of the Chilian 
 negotiators having in the mean time arrived here on the 17th, and the 
 others since. On the 22d, at 12 m., the necessary notices and prelimi- 
 nary measures having been given and taken, the plenipotentiaries held 
 their first preliminary meeting in the cabin of the Lackawanna; Mr. Os- 
 born, the senior United States minister on the part of the United States 
 acting as chairman ; and their respective powers being found in due form, 
 the plenipotentiaries of Chili (in accordance with our suggestion previ- 
 ously made) handed to the plenipotentiaries of Peru and Bolivia (now 
 ■on board the Chalaco) their first proposition or basis of peace, and the 
 meeting closed. The Peruvian and Bolivian plenipotentiaries have 
 these propositions now under consideration, and have given notice that 
 they will be ready for another meeting on board the Lackawanna to- 
 morrow at 1 p. m. 
 
 I inclose a translation of the terms or essential bases demanded by 
 Chili, as furnished to the plenipotentiaries of the allies. I have not 
 time to give copy in Spanish, as the mail-steamer which will take this 
 is now in port. I will simply say of these propositions that to me they 
 do not appear to have been made with any expectation that they would 
 be accepted by the allies; since they are such that they could hardly be 
 accepted without such a degree of national humiliation as would be 
 inconsistent with that self-respect essential to the independent national 
 existence of the allies ; and if made with the serious intention of being 
 insisted upon, I should be satisfied there will be no peace, and that Chili 
 is not desirous of peace. 
 
 But 1 think the more reasonable conclusion is that they were pur- 
 posely made much more exacting than the negotiators intend ultimately 
 to insist upon, for the purpose of drawing out propositions of a more 
 moderate and reasonable character from the allies, and I am strongly 
 inclined to the belief that Chili will be satisfied with a cession by Bo- 
 livia of all -her possessions between the Andes and the coast, and by 
 Peru of the province of Tarapaca, bounded north by the river Cama- 
 rones, in full of all her demands. Such, I was semi-officially informed 
 by the President and Secretary of State of Chili, and by Mr. Hunaens 
 (selected by them to communicate with me) when I was in Santiago, 
 about the close of August last, and when they informed me they had 
 accepted the mediation of the United States. But the probabilities of 
 the result will now soon begin to develop. 
 
 For thepresent and until the negotiations among the plenipotentiaries 
 elicit the real points of disagreement, we, as mediators, do not j>ropose 
 to interfere. 
 
 I am, &c, 
 
 I. P. CHEISTIAl^CT. 
 
 [Inclosure in ~No. 198.— Translation.] 
 
 Memorandum of the essential conditions which Chili exacts in order to arrive ai a peace, pre- 
 sented by the Chilian plenipotentiaries to the Peruvian and Bolivian plenipotentiaries in the 
 conference held on board the United States ship Lackawanna, the 21d of October, 18S0. 
 
 First. Cession to Chili of such territory of Peru and Bolivia as extends to the south 
 ■of the valley of Camarones and to the west of the line of the Andean Cordillera, which 
 
 S. Ex. 79 26 
 
402 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 separates Peru and Bolivia, as far as the valley of the Chacarilla, and to the west also- 
 of a line which, from this point being prolonged, would strike the frontier of the 
 Argentine Republic, passing through the center of Lake Ascotan. 
 
 Second. Payment to Chili by Peru and Bolivia jointly of the sum of twenty millions 
 of dollars, four millions whereof are to be paid in cash. • 
 
 Third. Return of the properties of which Chilian citizens in Peru and Bolivia have 
 been despoiled. 
 
 Fourth. Return of the transport Rimac. 
 
 Fifth. Abrogation of the secret treaty made between Peru and Bolivia in the year 
 1873, leaving at the same time void, and of no effect whatever, the steps taken to bring 
 about a confederation between the two nations. 
 
 Sixth. Retention on the part of Chili of the territory of Moquegua, Tacna, and 
 Arica occupied by Chilian forces, until the obligations to which the preceding condi- 
 tions refer have been complied with. 
 
 Seventh. The obligation on the part of Peru not to fortify the port of Arica when it 
 shall be given up to her, Dor at any time, and an understanding that in future it shall 
 be an exclusively commercial port. 
 
 A true copy. 
 
 On board the Lackawana, Arica, October 22, 1850. 
 
 DOMINGO GASA. 
 Secretary of the Plenipotentiary of Chili. 
 
 Mr. Garcia to Mr. E carts. 
 So. 283. 
 
 [Translation.] 
 
 Legation of Peku in the United States of America. 
 
 Xetc Tori-. October 25, 1SS0. (Received October 27.) 
 
 Most Excellent Sib: I hasten to inform your excellency that I 
 have received a telegram from Panama, by which I am officially in- 
 formed of the acceptance by my government of the good offices prof- 
 fered by that of your excellency through your representatives in Peru, 
 Bolivia, and Chili, with a view to securing the restoration of peace 
 among those republics. I am also informed that my country has ap- 
 pointed Dr. Antonio Arenas and Captain Aurelio Garcia y Garcia, a 
 naval officer, to represent it in the negotiations which are to be com- 
 menced. 
 
 Peru, having been forced into a struggle which she did not provoke 
 and for which she was not prepared, has suffered, as your excellency is 
 aware, every kind of injury, both material and moral, hoping to be able, 
 sooner or later, to make a suitable return for the same ; and it is just at 
 the moment when she is in possession of the elements necessary to check 
 the advance of Chili that your excellency's government interposes and 
 offers to put an end to the disastrous war in which we are involved. 
 
 The contest is not one of my country's seeking. Having been attacked 
 by surprise, she has done no more than defend herself against the most 
 unjust of all aggressions. Although constantly fighting at an immense 
 disadvantage, she has shed her blood and sacrificed her treasure in or- 
 der to furnish evidence to the world that she is worthy of the place 
 which she occupies among free nations. The material results, however, 
 have been unfavorable to her, and she has been forced to undergo the 
 sore trial of suffering the outrages of the victor, which have indeed 
 been greatly at variance with what is sanctioned by justice and by mod- 
 ern civilization. 
 
 Recently, after Chili had accepted your excellency's mediation, a por- 
 tion of her army landed in the most defenseless part of my country, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA, 403 
 
 where, in violation of every principle and of every consideration, it was 
 guilty of excesses which I do not here characterize as I might, out of 
 respect both to your excellency and to myself. Nevertheless, Peru will 
 enter the path of peace, through the mediation of the great American 
 Bepublic, thus obeying her generous instincts and suppressing the feel- 
 ings of just indignation which the acts of vandalism that have been 
 committed by her implacable enemy have necessarily aroused in her 
 breast. Unfortunately this will not stifflce for the success of the nego- 
 tiations, which have doubtless by this time begun. But little is to be 
 expected from a country that carries on war as Chili has thus far done, 
 exciting the abhorrence of all civilized nations, and I do not expect that 
 your excellency will attain the object which you so nobly have in view. 
 The advantage which the fortune of arms has given to that country ren- 
 ders it highly improbable that she will comply with reasonable require- 
 ments, and it is almost certain that the war will have to be continued, 
 while it is impossible for any one to foretell what will be the end of its 
 horrors. Be this as it may, Peru will ever gratefully remember that 
 your excellency's government has taken the most lively interest in bring- 
 ing about the termination of a conflict which ought never to have been 
 commenced, but in which she has given splendid evidences of her pro- 
 found respect for the principles of right and of social ethics. 
 
 I avail myself of this occasion to offer your excellency the assurance 
 of my highest respect and consideration, and to subscribe myself your 
 excellency's faithful and obedient servant. 
 
 IGNO. GARCIA. 
 
 No. 284. 
 Mr. Christiancy to Mr. JUvarts, 
 [Telegram.] , 
 
 Santiago de Chili, October 27, ^880. 
 Secretary of State, 
 
 Washington, United States. 
 Peru refuses Tarapaca ; Chili refuses arbitration of United States. 
 
 CHRISTIANCY. 
 
 No. 285. 
 
 Mr. Christiancy to Mr. Uvarts. 
 
 No. 200.] Legation of the United States, 
 
 Lima, Peru, November 2, 1880. (Received December 6.) 
 Sir : I have the honor to inclose to you the protocols of the confer- 
 ences of the plenipotentiaries of Peru, Bolivia, and Chili, held at Arica 
 from the 22d to the 27th October last under the mediation of the United 
 States ; also translation of the same. These protocols show the whole 
 substance of the conferences, but in explanation of the time and man- 
 ner of the presentation of the terms proposed by Chili as the basis on 
 which she was willing to negotiate, and which were handed to Mr. 
 
404 AFFAIRS IN CHILI, PERU, AND BOLIVIA 
 
 Arenas, as stated on pages lo and 16 first protocol, it is proper to say 
 that they were handed to the latter just as he was about to address the 
 conference, and he did not read them before he spoke, nor were they 
 read till after the first meeting was broken up. This may explain some 
 of the remarks of the Peruvian and Bolivian plenipotentiaries made at 
 the first meeting. 
 
 I wish further to say that while I think the Chilian Government itself 
 was honestly desirous of peace when they accepted the mediation of 
 the United States, and may still have wished for peace at the time of 
 the conferences, yet from many circumstances I am satisfied or at least 
 strongly inclined to believe that before the conferences actually took 
 place the government had been driven by the popular clamor of its citi- 
 zens, instigated and encouraged by several parties in opposition, to give 
 up the hope, and even the purpose of making a fair and reasonable effort 
 to secure peace, and that the government was, in effect, compelled to 
 demand such terms as even, in their own opinion, could afford no proba- 
 bility of acceptance by the allies, and thus, in effect, as they must have 
 known, to render the mediation of the United States utterly nugatory. 
 
 I am led to this conclusion, 
 
 1st. By information given me by Mr. Osborn, as to the increased vio- 
 lence of the popular clamor to go to Lima, and its effect upon the 
 Chilian Government. 
 
 2d. By the tact that when I was in Chili about the last of August, 
 and had an informal conference with the President and his Secretary 
 of State, as well as Mr. Hnnaeus, who had been authorized to confer 
 with me, no such exorbitant terms of peace were demanded, but only 
 the cession of Tarapaca by Peru and, as I understood, the Bolivian 
 littoral south of it, though the latter (as to Bolivia, was left mainly to be 
 inferred rather than expressed). 
 
 3d. From the fact that the Peruvian officers at Tacna and Arica, 
 where I met them on the 6th, 7th, and 8th October, spoke apparently 
 with strong hopes of peace, but after about the ISth or 20th of October, 
 and more especially after some of the plenipotentiaries of Chili arrived 
 at Arica, the general tone of remarks of Chilian officers seemed to 
 have entirely changed, and they declared generally to those with whom 
 they conversed (as reported to me) that there would be no peace, and 
 that they expected to go to Lima. 
 
 4th. The rapid preparations making before our eyes for that expedi- 
 tion. 
 
 5th. The fact that when the Peruvian plenipotentiaries arrived on 
 the Chalaco in the Bay of Arica, and during the seven or eight days 
 they were there, none of the Chilian authorities, nor their plenipoten- 
 tiaries, called upon them at all, nor offered them any civilities. 
 
 6th. That while the Peruvian vessel remained in the Bay of Arica, 
 the Chilians took occasion to fix a target a little further out from the 
 Morro than this vessel, and but a short distance ahead of it. and spent 
 the whole afternoon in firing from the Morro at this target with their 
 artillery; and the Huascar which came in while we were there and 
 remained some two or three days, when she left, took occasion to 
 run almost around the Chalaco, as if purposely to insult the Peruvian 
 plenipotentiaries ; and, 
 
 7th. The general tone of most of the Chilian press which I have seen, 
 which demands not only the capture, but the sacking and pillage of 
 Lima, which the common soldiery, as I am informed, declare has been 
 held out to them as an inducement to volunteer, but for which I will 
 not vouch, as I am slow to believe that any respectable officers of Chili 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 405 
 
 could be guilty of such extravagance, though subordinate enlisting of- 
 ficers may be. 
 
 From all present appearances I shall expect the Chilian army around 
 Lima within about a month from this time, perhaps sooner, and possi- 
 bly later, though, as it seems to me, it would be their true policy, be- 
 fore coming here, to take the railroad from Mollendo through Arequipa 
 to Puno, and to hold all south of that line, which I have some suspi- 
 cion they may do before coming here. 
 
 Peru has here some thirty -five thousand men to defend Lima ; they 
 are well armed, and if well drilled and commanded ought to be able to 
 protect Lima ; but they lack experience, and nothing but the actual trial 
 cau decide whether Lima can be taken. If taken I shall expect the worst, 
 as the Chilian soldiery, though personally brave, are slightly superior 
 in civilization to our IJtes and Sioux Indians in their mode of carrying 
 on practical warfare. Their officers may endeavor to keep them within 
 the rules of civilized warfare, but they have hitherto failed, and I think 
 will again fail, should they be victorious. 
 
 Put, whatever may happen, I propose to remain at my post, to rely 
 upon the protection of our flag, and afford all the protection in my 
 power to American citizens. 
 
 I have not the time to-day to give you a full account of the various 
 steps which have been taken by letters and by telegraph to bring about 
 the meeting of the plenipotentiaries at Arica, and to give you copies 
 of the various letters and telegrams which became necessary. This I 
 must defer to a future occasion, as I think it more important now to 
 give you the results and their causes. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 [Inclosure 1 in No. 200. J 
 
 Report of Messrs. Oslorn, Christiancy, and Adams to Mr. Evarts. 
 
 On board U. S. S. Lackawanna, 
 
 Bay of Arica, October 27, 1880. 
 
 Sir: The undersigned, ministers of the United States, accredited to the Govern- 
 ments of Chili, Peru, and Bolivia, respectfully report that, in pursuance of arrange- 
 ments concluded by us with the governments to which we are accredited, on the 22d 
 of October instant, the following-named plenipotentiaries met in conference in our 
 presence on board the United States ship Lackawanna, then anchored in the Bay of 
 Arica, for the purpose of discussing the existing complications between the three bel- 
 ligerents, and concluding, if possible, a peace: 
 
 Don Mariano Baptista and Don Juan Crisdstomo Carrillo, plenipotentiaries of Bo- 
 livia; 
 
 Don Eulogio Altamirano, Don JosiS Francisco Vergara, and Don Eusebio Lillo, pleni- 
 potentiaries of Chili; and 
 
 Don Antonio Arenas and Don Aurelio Garcia y Garcia, plenipotentiaries of Peru. 
 
 Charles S. Eaud, of Lima, was duly named secretary and interpreter for the under- 
 signed pending the conference. 
 
 The powers of the various ministers were duly exchanged, and after a brief session, 
 the conference adjourned. 
 
 It again convened on the 25th of October, when the discussion of the subject which 
 brought them together was entered upon and continued at length. An adjournment 
 was finally had with the understanding that there should be another reunion on the 
 27th. On this latter day the conference again assembled and, after again exchanging 
 views, the conclusion was unanimously reached that, in view of the instructions which 
 they had received from their respective governments, it would be useless for them 
 longer to continue their efforts for the purpose of bringing about a peace. 
 
 Having exhausted upon our part all efforts to produce a desirable result, we were 
 reluctantly compelled to the conclusion that a dissolution of the conference was 
 unavoidable. Thereupon the conference was declared closed. 
 
406 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 We have the honor to inclose herein protocols of the conference in Spanish, with 
 English translations thereof, and to remain, 
 Very respectfully, &c, 
 
 THOMAS A. OSBOEN, 
 United States Minister to Chili. 
 
 I. P. CHEISTIANCY, 
 United Mates Minister to Peru. 
 CHARLES ADAMS, 
 Minister Eesident to Bolivia. 
 
 [Inolosure 2 in Xo. 200.— Translation. 1 
 
 Protocols of the Conference held between the plenipotentiaries of Bolicia, Chili, and Peru 
 upon the mediation offered by the United States of America. 
 
 Peotocol No. 1. 
 
 On board of the North American corvette Lackawanna, in the Bay of Arica, on the 
 twenty-second day of October, of the year one thousand eight hundred and eighty, 
 the plenipotentiaries having met together, as follows : 
 
 For the Eepublie of Bolivia, his excellency Senor Martaxo Bapttsta. 
 
 For the Republic of Chili, their excellencies Sefiores Eueogio Altaihra^'O, Eusebio 
 Lillo, and Colonel Don Jose Fraxcisco Vergaea, secretary of state in the depart- 
 ments of war and the navy. 
 
 For the Republic of Peru, their excellencies Seflores Antoxio Arexajs and Aurelio 
 Garcia y Garci a. 
 
 In presence of their excellencies the representatives of the Eepublie of the United 
 States of North America, Mr. Thomas A. Osborn, accredited near the Government of 
 Chili ; Mr. Isaac P. Christiancy, accredited near the Government of Peru, and Gen- 
 eral Charles Adaiis, accredited near the Government of Bolivia. 
 
 His excellency Mr. Osbors, dean of the American ministers, stated that the three 
 representatives of the United States had seen fit to appoint Mr. Charles S. Eand as 
 their secretary and interpreter, and that he presumed that each legation had appointed 
 one ad hoc ; he begged, therefore, that if in the translations made by Mr. Eand, as inter- 
 preter, there should be observed the least inexactness, they would call attention 
 thereto at once. 
 
 His excellency Mr. ObBORN* then said that the representatives of the United States 
 desired that the sessions of this conference should be opened with as little ceremony 
 as may be compatible with the gravity of the occasion, and regard it as useless at this 
 moment to enter into a consideration of the question as to the origin of the mediation 
 proposed by the United States, or the priority of its suggestion ; that it is very grati- 
 fying to record that the conference is an accomplished fact, as is attested to-day by 
 the assembling here of the honorable members thereof; and it is hoped that it will 
 enter upon its deliberations with an earnest purpose to bring about the high object for 
 which it has been convened ; that it is unnecessary to give assurances that the gov- 
 ernment and people of the United States feel a profound interest in the welfare of the 
 three nations engaged in the present war; nor could it be otherwise, since the United 
 States inaugurated republican government in America, and are, therefore, in a 
 measure responsible for its existence here; that, having been the first to recognize the 
 independence of these republics, they have watched with a careful eye, from that day 
 till now. their efforts to keep pace with an advancing civilization, and hare rejoiced 
 in their progress and prosperity ; that they feel that republican institutions are To- 
 day on trial before the world, and that in bringing about a happy exit thereof all our 
 nations here represented are equally interested ; that it is but natural, therefore, that 
 they should deeply deplore the existence of the present state of war, and should 
 anxiously desire its termination ; that it is this feeling which has inspired the present 
 attitude of the United States, and it is the sincere hope of its government that ere 
 this conference shall adjourn, an honorable and a lasting peace may be brought about ; 
 that the plenipotentiaries of the three republics are doubtless aware of the exact posi- 
 tion occupied by the American representatives, yet it may not be superfluous to state 
 that they do not propose to take any part whatever in the discussion of the questions 
 which may come before the conference; that the bases upon which peace is to be 
 reached are questions for the exclusive consideration of the plenipotentiaries ; but 
 that nevertheless they are ready and willing to assist the negotiators with their 
 friendly co-operation whenever the same may seem desirable. He closed, saying: 
 "We beg you, gentlemen, we implore you, to labor earnestly to bring about a peace, 
 and, in the name of our government, we hope that your efforts may be crowned with 
 success." 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 407 
 
 Mr. Osborn then declared that the presentation and exchange of credentials was 
 in order, which having been proceeded with, they were found to be in good and due 
 form. 
 
 His excellency Mr. Baptista oaused to be noted, in presenting the credentials of 
 his colleague, his excellency Hon. SeOor Juan Cris6stomo Cakeillo, plenipotentiary 
 of Bolivia, that the latter was prevented from being present at this first session by 
 serious illness caused by his being upon the sea. 
 
 Mr. Osborn then declared the sessions of the conforenoe open. 
 
 His excellency Mr. Altamirano said that, in his own name and that of his col- 
 leagues, he hastened to comply with the charge intrusted to him by his government, 
 manifesting that the noble and disinterested efforts made by the most worthy repre- 
 sentatives of the American Union to put an end to the sacrifices of war had awakened 
 the gratitude of the government and people of Chili; and that, whatever might be the 
 Tesult of the conferences, and even although they should not result in the bringing 
 about of peace, Chili could never ignore the magnitude of the service rendered ; that 
 he took pleasure in recognizing the exactness of the observation of Mr. Osborn, when 
 in justifying the interest manifested by the great nation of the north in her develop- 
 ment and prosperity, he recalled the fact that she had been the first to recognize the 
 independence of Chili, adding that the proceedings of to-day evidenced that the same 
 noble policy continued exercising its beneficent influence upon these republics. Touch- 
 ing the grave question of the moment, he stated that circumstances rendered it an im- 
 perative duty to endeavor to bring about an immediate solution ; that, seeking for 
 the mode of procedure best calculated to secure this end, he had thought necessary to 
 group together in a memorandum the propositions which, according to his instruc- 
 tions, should form the groundwork of the treaty, in order that their excellencies the 
 representatives of Peru and Bolivia, after duly considering them, might indicate 
 Whether the discussion could be opened upon those bases ; since, proceeding other- 
 wise, the risk would be incurred of wasting time unnecessarily, since, even were the 
 earlier difficulties overcome, there would be no security that the last might not prove 
 insuperable ; that if this form of procedure were adopted, one copy of the memoran- 
 dum referred to would be placed in the hands of his excellency Mr. Arenas, a second 
 in the hands of his excellency Mr. Baptista, and a third copy delivered to the worthy 
 president of the conference. 
 
 Mr. Altamirano concluded, stating that the memorandum contained only the prin- 
 cipal demands of his government: that, later, they might be presented in another 
 form more adequate to figure as articles of a treaty, and that, opportunely, he would 
 pres=nt for discussion other propositions wbich, while of importance, had not been 
 included in the memorandum, since, in view of their character, they were not con- 
 sidered as offering insuperable difficulties. 
 
 His excellency Mr. Arenas said that his lirst expression in the name of the Govern- 
 ment of Peru was one of cordial gratitude to that of the Great American Republic 
 for the friendly attitude it had assumed during the present war in the Pacific, and 
 for the earnest endeavors made by it for the termination of the dissensions to-day 
 separating three republics, at one time sisters; that the government and people of 
 Peru will never forget the elevated policy and fraternal sentiments which, from the 
 time of her independence till to-day, have prompted the international course of the 
 United States; that in so far as relates to the representatives of Peru in these con- 
 ferences, it is his duty to declare with frank sincerity that they have come here with 
 the idea of obtaining peace, it being always understood that it be equally honorable 
 for Peru, for Bolivia, and for Chili; that upon this ground they will treat .with entire 
 good faith, under the guidance of the principles of honor and of justice; that he en- 
 tertained the hope of reaching a settlement; but should this not be attained, there 
 would remain to the plenipotentiaries of Peru the satisfaction of having endeavored 
 to re-establish harmony upon this continent ; that he agrees with Seuor Altamirano 
 in believing that the points to be discussed should be clearly defined so as not to lose 
 time in the examination of indeterminate questions, aud in that sense accepts the 
 form proposed for the proceedings to be followed, adding, however, that the prop- 
 ositions contained in the memorandum just presented by Mr. Altamirano, of the 
 contents of which the representatives of Peru are unaware, should be the subject of 
 careful and serious study, for which reason he does not think it would be proper to 
 name at once the day for the next conference, and requests, in conclusion, that the 
 necessary time be allowed him to study the matter, offering on his part to advise his 
 excellency Mr. Osborn, so soon as the plenipotentiaries are ready, that he may be 
 pleased to call a further session. 
 
 His excellency Mr. Baptista said that he, in turn, felt the necessity of expressing 
 the sentiments of his government and people; that the United States had, as it were, 
 created and modeled the democratic institutions of South America, which from their 
 birth had developed by their example ; that the United States exerted a legitimate 
 influence upon the signification and progress of their political life ; it was not strange, 
 therefore, that its government should intervene amicably, upon the first occasion 
 
408 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 when, according to the accurate judgment of its representatives, these very institu- 
 tions are put upon trial. In order to maintain them, the Government of Bolivia will 
 join in negotiations for peace with sincerity, with no other limits in obtaining it than 
 right and justice, interpreted not with the help of declamation but according to the 
 reality of events as they present themselves. He believed that the belligerent gov- 
 ernments would seriously seek this solution, and that the elevation of ideas and of 
 character of their excellencies the plenipotentiaries was a guarantee of effective de- 
 liberations, which would seek inspiration, not in the ephemeral excitement of the 
 political passions of the three nationalities, but in the real, permanent, and well con- 
 sidered interests of the countries they represented ; that as regarded the proposition 
 of his excellency Senor Altamirano, he understood that it was not a simple mem- 
 orandum of questions, but a series of propositions ; that only thus would the labors 
 of the conference be facilitated ; that in this sense he accepted the proposition. 
 
 His excellency Mr. Christiancy said that he had but few words to add to what 
 had already been said by his colleague, Mr. Osborn, the senior representative of the 
 United States, and in which he fully concurred : that the United States having taken 
 the lead in the establishment of republican institutions on this continent, that gov- 
 ernment and its people felt a deep interest in the peace and prosperity of all the South 
 American republics and of their institutions, born under the influence of their initia- 
 tive; that for these reasons they desired to do all in their power, through their good 
 offices, to promote the peace and harmony of these States ; that there were many 
 other considerations which should exert a powerful influence upon the representatives- 
 of the three belligerent nations here assembled ; that the people of all were descended 
 from one common nationality, spoke the same language, possessed the same institu- 
 tions, customs, and modes of thought, and professed the same religion, and that many 
 of them were bound together by the dearest of family ties, aud that, finally, from the 
 high and distinguished character of the illustrious representatives chosen to take part 
 in the present conference, he looked confidently for a favorable solution. 
 
 At the suggestion of his excellency Mr. Osborn, announcing that everything rela- 
 tive to the mediators, or whatsoever might interest their government, should be un- 
 der the charge of their secretary, it was agreed that the protocol of the conference 
 should be drawn up by the secretaries of the several legations. His excellency Mr. 
 Arenas stated that the secretary for Peru was Dr. Mariano Nicolas Valeracel. His 
 excellency Mr. Altamirano presented Mr. Domingo Gana as secretary for Chili, and 
 his excellency Mr. Baptista, Mr. Felix Arelino Aramayo for Bolivia. 
 
 -Before adjourning it was agreed that his excellency Mr. Arenas should indicate 
 through his excellency Mr. Osborn a day for the second conference, so soon as he had 
 studied the memorandum presented by his excellency Mr. Altamirano, and which it 
 was agreed should be inserted in the present minutes, its tenor being as follows : 
 
 " Memorandum of the essential conditions u-hieh Chili demands in order to arrive at a peace, 
 presented l>y the Chilian plenipotentiaries in the conference held on hoard the United States 
 ship Lackaioanna, the 22<7 of October, 1880. 
 
 " First. Cession to Chili of such territory of Peru and Bolivia as extends to the south 
 of the valley of Camarones and to the west of the line of the Andean Cordillera which 
 separates Peru and Bolivia, as far as the valley of the Chacarilla, and to the west also 
 of a line which, being prolonged from this point, would strike the Argentine frontier, 
 passing through the center of Lake Ascotan. 
 
 " Secoud. Payment to Chili by Peru and Bolivia jointly of the sum of twenty mill- 
 ions of dollars, four millions whereof are to be paid in cash 
 
 " Third. Return of the properties of which Chilian citizens in Peru and Bolivia have 
 been despoiled. 
 
 "Fourth. Return of the transport Rimac. 
 
 " Fifth. Abrogation of the secret treaty made between Peru and Bolivia in the year 
 1873, leaving at the same time the steps taken to bring about a confederation between 
 the two nations void and of no effect whatever. 
 
 "Sixth. Retention on the part of Chili of the territory of Moquegua, Tacna, and 
 Arica, occupied by Chilian forces, until the obligations to which the preceding condi- 
 tions refer have been complied with. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 409 
 
 "Seventh. An obligation on the part of Peru not to fortify the port of Ariea when 
 it shall be given up to her, nor at any time, and an undertaking that in future it shall 
 be an exclusively commercial port." 
 Whereupon the session adjourned at 1 o'clock p. m. 
 In witness whereof they signed. 
 
 M. BAPTISTA. 
 
 JUAN C. CARRILLO. 
 
 J. F. VERGARA. 
 
 E. ALTAMIRANO. 
 
 EUS. LILLO. 
 
 ANTO. ARENAS AURELIO GA. y GARCIA. 
 
 THOMAS A. OSBORN. 
 
 I. P. CHRISTIANCY. 
 
 CHARLES ADAMS. 
 
 F. Avelino Aramayo, 
 
 Secretary of the Bolivian Legation. 
 Domingo Gana, 
 
 Secretary of the Plenipotentiaries of Chili. 
 M. N. Valcarcel, 
 
 Secretary of the Plenipotentiaries of Peru. 
 Charles S. Rand, 
 
 Secretary and Interpreter of the Mediators. 
 
 Protocol No. 2. 
 [Translation.] 
 
 On board the North American corvette Lackawanna, in the Bay of Arica, the 
 twenty-fifth day of October, one thousand eight hundred and eighty, all the plenipo- 
 tentiaries -having met together, viz : 
 
 On the part of Bolivia, their excellencies Sefior Mariano Baptista and Sefior Juan 
 Cris6stomo Carrillo ; 
 
 On the part of Chili, their excellencies Senores Jose Francisco Vergara, secretary 
 of state in the departments of war and the navy, Eulogio Altamirano, and Eusebio 
 Lillo; 
 
 On the part of Peru, their excellencies Senores Antonio Arenas and Aurelio Gar- 
 cia y Garci a ; 
 
 In the presence of the representatives of the United States of North America, his 
 excellency Mr. Thomas A. Osborn, accredited near the Government of Chili, his excel- 
 lency Mr. Isaac P. Christiancy, accredited near the Government of Peru, and his ex- 
 cellency General Charles Adams, accredited near the Government of Bolivia. 
 
 The session was declared open at 1 o'clock, p. m. 
 
 The minutes of the preceding session were read and approved. 
 
 His excellency Mr. Osborn inquired in what form the minutes should be signed, 
 and it was agreed that they should be signed by all the plenipotentiaries and by the 
 three representatives of the United States. They consequently proceeded to sign four 
 copies, one of which remained in the office of the secretary of their excellencies the 
 mediating ministers, another was destined for Bolivia, the third for Chili, and the re- 
 maining one for Peru. 
 
 His excellency Sefior Arenas then stated that the representatives of Peru had care- 
 fully studied the document presented by his excellency Mr. Altamirano, in which he 
 sets forth, in the name of his government, the conditions under which peace may be 
 obtained ; that he waived the consideration of the words forming the title of that 
 document, because, although some of them appeared unacceptable, he believed they 
 had been employed without preconceived design ; nor would he allude to the causes 
 which had brought about the war, nor to the reasons which have been adduced to 
 justify it, since a discussion of these points would be barren under present circum- 
 stances, and would only tend to remove the discussion from that calmness with which 
 it is desirable to treat the grave question which has given rise to this conference. 
 
 Mr. Arenas said in regard to the conditions proposed by his excellency the pleni- 
 potentiary of Chili that they had produced upon him a painful impression, since they 
 close the door upon any reasonable or tranquil discussion; that the first one, espe- 
 cially, is so insurmountable an obstacle in the way of pacific negotiation that it is 
 equivalent to an intimation to proceed no farther ; that Chili has obtained advantages 
 in the present war, holding in military occupation in consequence thereof certain 
 districts of Peruvian and Bolivian territory over which she had never claimed any 
 
410 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 urisdiction, but having occupied them after various combat-*, she to-day believes her- 
 self transformed into the owner thereof, and that her military occupation is a title 
 of dominion; that like doctrines certainly were sustained in other times and distant 
 regions, but in Spanish America have not been invoked from the time of the independ- 
 ence down to the present time, having been considered incompatible with the tutelary 
 bases of republican institutions ; they lapsed beneath the powerful influence of the 
 existing political system, and because they were highly dangerous for all South 
 American republics. 
 
 Leaving these general considerations, which refer to the interests and tranquillity 
 of the nations of this section of America, his excellency proceeded to examine the 
 first of the conditions of peace presented by Chili, in its relation to Peru. The Re- 
 public of Peru, he said, by reason of its predominant ideas, toe principles it professes, 
 and the feelings animating all classes of society, is incapable of consenting to the 
 seizure of any portion of her territory, and still less of that which to-day constitutes 
 the principal source of her wealth. He was not unaware that nations, in the absence 
 of a supreme judge who might settle their controversies, generally decide them upon 
 the battle-field, the conqueror who has obtained the decisive victory (which is not the 
 ■case in the present war) exacting that the party conquered, and without the means of 
 continuing the struggle, shall yield to the demands which were the cause of hostili- 
 ties ; that in Pern these ideas are rooted in the public mind, being those professed and 
 respected in republican America, and that he therefore believes, taking into considera- 
 tion the present situation of the belligerents, a peace which was founded upon a ces- 
 sion of territory and a revival of the obsolete right of conquest would be an impossi- 
 ble peace ; that even were the plenipotentiaries of Peru to accept and their govern- 
 ment to ratify it — a supposition impossible to entertain — national sentiment would 
 reject it and the continuation of the war be inevitable ; that if the first condition be 
 insisted upon, presenting it as indispensable in order to arrive at a settlement, all 
 hope of peace must be relinquished, the efforts now being made become fruitless, 
 with the prospect of new and disastrous hostilities before the belligerents ; that, 
 finally, the representatives of Peru deplore this result, not merely as patriots, but as 
 Americans and as sincere friends of humanity. The fault cannot be imputed to them 
 or to their government, since, if these negotiations fail, it will be through the influ- 
 ence of certain passions which have become inflamed so as to present as necessary the 
 carrying on of a war of extermination, the consequences of which, if they be not 
 measured to-day, will be suffered to-morrow. 
 
 His excellency Mr. Altamirano inquired if either of the representatives of Bolivia 
 <lesired to add anything to the remarks of his excellency Mr. Arenas, in order that 
 his reply might embrace the joint expression of opinion of the allies. 
 
 His excellency Mr. Baptista stated that he would prefer to hear the reply of one of 
 the representatives of Chili to the plenipotentiary of Peru who had just spoken, after 
 -which be would manifest his views in regard to the rights of Bolivia. 
 
 His excellency Mr. Altamirano said that he found it difficult to describe the im- 
 pression made upoD him by the remarkable discourse of his excellency Mr. Arenas. 
 It is partly a painful one, since, after these utterances, all hope of a proximate peace 
 seems vain, and yet it is to a certain extent grateful, since, as he hastens to acknowl- 
 edge, he finds there all that clearness, all that firmness, all that honorable frankness 
 ■which the statesman should employ when the honor and future of his country are in 
 question. 
 
 For his own part, added his excellency Mr. Altamirano, he would proceed likewise 
 to manifest the opinion of his government, which is in perfect harmony with that of 
 his country, and would endeavor, in imitation of his excellency Mr. Arenas, to ex- 
 press that opinion with perfect clearness and frankness. 
 
 In the first place, he declared that, in drawing up the memorandum, neither he nor 
 his colleagues had the intention of employing any word which might appear unac- 
 ceptable to their excellencies the representatives of Peru and Bolivia, and asked that 
 a note be made of this manifestation. That paper was a simple memorandum, which, 
 according to the intention of the first impulse, was not intended to figure among the 
 documents of the conference. 
 
 Having made this declaration, which he trusted would be accepted, he would enter 
 upon the principal question, as desired by his excellency Mr. Baptista, and in so do- 
 ing he would not swerve, for any consideration, from his firm jntention not to con- 
 tribute to leading the debate from proper limits. Keeping this end in view, he would 
 not recall the origin and causes of this war, since it might bring up painful memories 
 and recriminations; but would here place upon record that his government had sus- 
 tained its lack of responsibility for events which have arrayed in arms three sister na- 
 tions, and which cause the shedding to-day of the most precious blood of their chil- 
 dren. 
 
 Chili, accepting the war as a painful necessity, threw herself into it without think- 
 ing of the sacrifices it imposed upon her, and in defending her rights and the honor 
 of her flag, has sacrificed her dearest sons and spent her treasure without stint. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 411 
 
 » 
 
 Such being the situation, her government has accepted with sincerity the idea of 
 bringing the war to a close, always with the understanding that it be possible to at- 
 tain a lasting peace, which shall compensate the sacrifices made, and permit Chili to 
 return to labor, which is her existence. His government, believes that to give these 
 conditions to a peace, it is indispensable to advance her line of frontier. She would 
 thus endeavor partly to compensate the great sacrifices made by the country, and in- 
 sure the peace of the future. This demand is, for the Government of Chili, for the 
 country, and for the plenipotentiaries who speak in her name, at this moment, inde- 
 clinable, because it is just. 
 
 The regions extending to the south of Camarones owe their present development 
 and their progress entirely to Chilian labor and Chilian capital. The desert had been 
 fertilized by the sweat of her laboring men before it was watered by the blood of her 
 heroes. 
 
 To withdraw the authority and the flag of Chili from Camarones would be a cow- 
 ardly abandonment of thousands of her citizens, and a return, with aggravation, to 
 the old and untenable situation. 
 
 His excellency Senor Altamirano continued, saying that he could not conceive how 
 his excellency Senor Arenas could affirm that this pretension of Chili was in conflict 
 with accepted principles and with established practice. The history of all modern 
 wars contradicts his excellency and the examples of ratification of frontiers in Amer- 
 ica are numerous and belong to contemporaneous history. In the so-called conquest 
 by Chili there is but one new phase, the fact that the territory in question, as he had 
 stated a moment since, owes its present status to Chilian labor and enterprise. 
 
 I again repeat, Chili cannot withdraw her flag from that territory. The plenipo- 
 tentiaries of Chili cannot sign any treaty so providing, or, should they sign it, their 
 government and country would refuse their sanction. 
 
 His excellency Dr. Arenas stated that he would not refute, point by point, the 
 arguments of his excellency Senor Altamirano, since such refutation would be barren 
 of results. Judging from the remarks he had just heard, Chili would not recede from 
 her demands. There might be, nevertheless, in the opinion of his excellency, some 
 means which, without compromising the future, might conduce to an honorable and 
 permanent peace. He believed that the people of this continent have political and 
 social affinities ; that the animosities born of the momentary struggle are not to be 
 eternal, and hence deduces the necessity for resolving this question with elevated 
 judgment and abnegation of sentiment. 
 
 His excellency Mr. Christiancy suggested that, as the Chilian plenipotentiaries had 
 submitted certain propositions to those of Peru and Bolivia, which had been com- 
 bated in this conference , so, perhaps, the latter might in turn present a proposal or a 
 series of proposals tending to reach a solution. It might thus appear, perhaps, that 
 the differences are not so irreconcilable as at first they may seem, and a practical as 
 well as favorable result be attained. 
 
 His excellency Senor Baptista said : " The categorical declarations of his excellency 
 Senor Altamirano appear to close the door to discussion. I appreciate, on the other 
 hand, the frankness and courtesy with which he has proceeded. I will endeavor to 
 keep pace with him in rtiguity of expression and clearness of reasoning. Let my 
 words, therefore, if of no higher worth, be taken as the expression of our opinions. 
 Their object is twofold ; the one will be the collective statement of our views, the 
 other, and individual utterance of my own. 
 
 "We, the plenipotentiaries of Bolivia, find ourselves in perfect accord with the ex- 
 plicit declarations of his excellency Seiior Arenas upou the fundamental point of the 
 acquisition of territory, be it called advance, cession, compensation, or conquest, and 
 we so think, inspired by the origin and development of the political life of our Amer- 
 ica. We obey that first impulse which fifty years ago launched her upou her well- 
 marked and hitherto unchecked career. There was error, perhaps, in not strictly 
 obeying, from the beginning, the direction which a true appreciation of the future of 
 the continent imposed upon our statesmen. Children of a common parent, mingling 
 in one common mode of life, nourished by the same blood, bound by the same religiou, 
 animated by that bulwark handed down from the mother country, and the only one 
 she saved in her decadence, the municipality; divided at most in local sections, it 
 seems that the expansion of public life among us ought to have been more in common, 
 more reciprocal, and more united. This was demonstrated by the undivided achieve- 
 ment of our independence, in which we labored as one family, without distinction of 
 flag, pressing onward from La Plata, mingled in Chili, grouped together as a single, 
 army in Upper and Lower Peru. In the hour of our emancipation it would seem, 
 therefore, that we ought to have constituted ourselves into one grand autonomy, seo- 
 tionally divided, instead of breaking it up into jealous nationalities, which, thanks 
 to those artificial combinations, might become hostile. So felt our great men, and 
 they early endeavored to lead us back to our primitive source of expansion. But their 
 efforts, from the time of Bolivar, have been by means of ineffectual decrees and dec- 
 larations, which, so far as they influenced our real life, went no further than mere 
 
412 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 aspirations. The men of forethought then considered that the desired reactions should 
 be sought through other methods, more practical and more applicable to designs so 
 vast. To endeavor to unite, successively and gradually, our different nationalities by 
 the inducements of their mutual interests, to unify their economic and tiscal systems, 
 to advance gradually by compacts that should draw us still more closely together, 
 these were the aim and object of every trnly American thought and sentiment. So 
 my government understood it, and with this object in view it endeavored to develop 
 its national policy in the treaty of alliance which unites it with the people of Peru. 
 It is to be regretted that the unexpected and violent nature of subsequent events 
 should have falsified the true and natural commentary of that treaty. Intrinsically 
 considered, properly studied, it was nothing more than a first agreement, the initial 
 basis of American solidarity. It signifies peace on the frontiers, an open stipulation 
 so that all might intervene to satisfy this first necessity. The Argentine Republic was 
 invited, and in the counsels of my country it was then thought most natural and most 
 proper to tender a similar invitation to the Republic of Chili. 
 
 "Another movement, notable in both republics, that of confederation, has the same 
 motives and tends to satisfy the same needs. For this, there are in Bolivia two par- 
 ties, which for a moment differed upon the question of method, but finally agreed to 
 reject all tumultuous action, all appeal to popular clamor, leaving to the public con- 
 science, prudently ascertained, to the criterion of the people, tranquilly consulted, the 
 study and the acceptance of the new project, the discussion of which should be far 
 removed from the warlike atmosphere now surrounding us and transferred with 
 studious calm to its proper region, that of peace, since by its very nature it cannot be 
 an instrument of war, but rather a pledge of successive conciliations. This is not a 
 digression, but a necessary antecedent to the considerations which follow. ^Ye are 
 passing through a crisis which tends to tuin us aside from these special precedeuts, 
 and from that historical current which should mold and influerrce the traits pecnliar 
 to our American life. One great deviation, until now unique, was that of Paraguay, 
 which has dazzled the political conscience of some statesmen. America may perhaps 
 be unable to resist a second and more extensive example. She would oscillate in her 
 career irremediably. Let us uot place in her bosom a perpetual source of uneasiness. 
 Let us not station on the frontiers of her republics watchful and jealous powers, each 
 mistrustful of the other, and absorbing, for their constantly increasing land and naval 
 armaments, the very life blood of the country. Our legitimate expansion, that to 
 which we have a natural right, is that of trade, of communication, of the employ- 
 ment of capital, in all of which the most powerful nation will best succeed. As con- 
 querors and conquered, we should equally suffer from an abnormal condition of affairs, 
 which would leave for the one the sullen labor of revenge, and for the other the sterile 
 and costly task of preventing it. The reasons given by Mr. Axtamikaxo, to justify the 
 necessity of his first condition, would be more than satisfied by the study, of another 
 proposition, which I beg to present as a simple personal indication of my own. I de- 
 clare frankly that the natural results of success should be recognized and accepted. 
 In the course of this campaign the advantages are on the side of Chili. Let us shape 
 our action according to the requirements of the events of the war as they have oc- 
 curred. It may, therefore, be assumed that the payment of an indemnity to Chili 
 would be just. Let her retain the territory occupied as security, and let proper meas- 
 ures be taken to satisfy the demands which could justly be made against us out of the 
 revenue derived from the same territory. This course could protect and guarantee 
 the interests of all, and might be supplemented by other measures, which should in- 
 sure satisfactorily the property and enterprises of Chili. 
 
 We are in perfect harmony with his excellency Seiior Arenas in recognizing and 
 respecting the elevated intention prompting his excellency Seuor Altamiraxo in the 
 drawing up of his propositions. The ambiguous meaning of certain expressions, such 
 as those of essential conditions which Chili demands, which at first sight seemed to 
 bar the entrance to a free discussion among the plenipotentiaries, disappears before 
 his loyal explanation. I repeat, there is no reason to dwell a moment longer upon 
 this iucident. To sum up, we do not accept the appropriation of the territory as a 
 simple result of belligerent acts, whatever the name to the seizure. But I yet hope 
 that a ground of discussion may present itself, whereon conciliatory measures may 
 find room." 
 
 His excellency Senor Axtamiraxo observed that he found himself obliged to return 
 to the discussion, since he could not permit the remarks of his excellency Seuor BaP- 
 tista to pass unnoticed. In his eloquent discourse, and defending the policy of the 
 government of his country, his excellency has presented the treaty, which, in lb7:5 r 
 united Bolivia and Peru with a common purpose, as a frank and honest manifestation 
 of the earnest offortof Bolivia to bringmore closely together these nations, now nufor- 
 tunately at variance, and states that they should march together, recalling the fact that 
 they made the campaign of independence side by side, aud that the destiny awaiting 
 them in the future is the same. His excellency Seiior Altamiraxo added that he 
 recognized the astonishing ability with which his excellency Sefior Baptista in his 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 413 
 
 discourse upon the signification and reach of the treaty of 1873, had avoided the shoals ; 
 but his excellency will permit him, without qualifying that act of international policy, 
 and without recalling the intent concealed between the lines of its text, to here enter 
 protest and again ropeat with his government that in that compact is to be found the 
 justification of the attitude of Chili aud her demands. For the rest, he joins with 
 enthusiasm in the noble and elevated views of his excellency the plenipotentiary of 
 Bolivia, when he asks for these countries that union which is strength, and in the fu- 
 ture will be the only source of their greatness and of the world's respect. 
 
 But, speaking in the presence of Americans, the representatives of Chili do not 
 need to recall the earnest efforts of their government, nor what offerings or of what 
 value, those she has laid upon the altar of American union and fraternity. Far less 
 is this required in the presence of eminent Peruvians and Bolivians, who know the 
 history of their country, since they themselves have helped to make it. 
 
 The representatives of Chili may rest tranquilly therefore; neither their govern- 
 ment nor their country can be accused of employing a policy of hatred, nor of seeking 
 her aggrandizement in the ruin of those she had called her brethren. 
 
 The solutions to this question are not infinite. There are, perhaps, but two ; that 
 indicated by Chili, and that which his excellency Seilor Baptista has been pleased to 
 suggest. If the plenipotentiary of Chili declared for his part in the first conference 
 that the condition proposed was indeclinable, and now repeats it, it was because his 
 government considers the second combination deficient and inacceptable. 
 
 It is sad, he observed in conclusion, to have to resist appeals such as those which 
 have just been made to us by their excellencies Messrs. Arenas and Baptista, but if 
 the extension of the frontier be" an insuperable obstacle to peace, Chili cannot, ought 
 not, to remove that obstacle. 
 
 His excellency Seftor Garcia y GARCfA stated that he would not have uttered a sin- 
 gle word after the brilliant efforts of his colleagues, their excellencies Sefiores Arenas 
 and Baptista, who have so fully gone over the ground in defense of the unquestion- 
 able rights of Peru and Bolivia, if certain doctrines developed by his excellency Senor 
 Altamirano had not rendered necessary a rectification, demanded by the prestige of 
 America, and which, derived from her history and her traditions, exhibits the senti- 
 ments of Peru and her loyal international policy in all epochs. At the same time his 
 excellency will endeavor to develop an idea already put forth, offering the clearest 
 evidence of the spirit of justice with which he has come to these conferences. 
 
 He had given profound attention, said his excellency Senor Garcia, y Garcia, to the 
 remarks of his excellency Mr. Osborn, when, in the inaugural session, he said that 
 the Government of the United States was to a certain extent responsible before the 
 world in regard to the republics of the new continent, derived from the political prin- 
 ciples and system of government which the former had implanted by their example, 
 and which, under no circumstances, should be allowed to fall into discredit. These 
 fraternal declarations are doubtless founded upon that great principle, uttered as a 
 notification in the face of the world by one of the most illustrious Presidents of the 
 Union, and practically maintained by all of his worthy successors. "America for the 
 Americans," exclaimed President Monroe upon a solemn occasion, and in framing that 
 immortal sentence he established the foundations of the new American public law, 
 which, destroying all hope of usurpation, banished forever from the new continent 
 those lords of divine right so well schooled to conquest as the surest means of expand- 
 ing their territory. Hence it follows, since right and justice are one, and equally 
 applicable abroad and at home, that the right of territorial sovereignty in America can 
 only be voided by the spontaneous consent of nations, ratified by the approbation of 
 the respective peoples. If, unfortunately, these prudent maxims be disregarded or 
 violated, there would be at once sown broadcast the seeds of interminable dissensions, 
 like those which with frequency occur on the old continent, and which would compel 
 each State, as his excellency Senor Baptista has well said, to maintain those immeose 
 armies and navies, the insatiable guardians of what they are pleased to call " armed 
 peace or European equilibrium," which are nothing more than the precautions taken 
 by each to avoid being dismembered or absorbed by the other, his neighbor. 
 
 Peru does not boast of her observance of these principles, nor has she awakened to 
 them in consequence of the reverses suffered by her during the present war. This 
 was her invariable course when, having been provoked into a rash and inconsiderate 
 war in 1858, she held sway with her then powerful fleet over the entire Ecuadorian 
 coast and adjacent islands, and occupied with her army the flourishing province of 
 Guayaquil. How tempting the opportunity for an ambitious state. Nothing was 
 easier than to have held permanent possession of that rich naval station, which would 
 have been of such utility to Peru ; but her interest gave way before her respect for the 
 territorial integrity of nations constituted at the birth of republican America; and it 
 is well known, your excellencies will remember, that once satisfied, and leaving many 
 benefits behind, Peru abandoned those shores, without carrying with her even a sam- 
 ple of their sands. 
 
 Nor is it possible for Ms excellency Seiior GARCfA Y GARCfA, as he desires to place 
 
414 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 upon record, to pass over in silence one of the reasons given by his excellency Seiior 
 Altamirano as a singular title for the dominion which Chili seeks to establish over 
 the territory of Tarapaca. He remembers that his excellency the plenipotentiary of 
 Chili maintained that the entire population of that province being Chilian, and the 
 capital and labor employed in its establishments being likewise Chilian, therefore to 
 them belongs possession of the territory. 
 
 While his excellency Senor Garcia waves the consideration of the extension of 
 " entire," as employed by his excellency Senor Altamirano, since, as the expression is 
 totally atvariance with the facts, he cannot believe that he would pretend to sustain it, 
 nor that such was his intention, he cannot restrain the natural expression of his sur- 
 prise at bearing reasoning so remarkable from one whose profound learning and ele- 
 vated political stature render him a figure in American history he has ever contemplated 
 with admiration. But his astonishment is greater upon ieflecting that such views 
 have been uttered in the presence of their excellencies, the three mediating ministers, 
 whose great nation owes its immense development precisely to the foreign capital and 
 labor which daily flow to its shores. 
 
 "With what hilarity," he exclaimed, "would be received in the political circles of 
 Washington, the doctrine that should assert the right of Prince BiBmarck to annex 
 some of the newer Western States to the German Empire, the bulk of their population 
 being German ; or that Her Majesty Queen Victoria could, under like title, take pos- 
 session of New York, a large portion of the inhabitants whereof are Irishmen ! " 
 
 Having thus brought to mind the political principles briefly alluded to, and which 
 are the only sure foundations of peace in America, having mentioned the historical 
 fact, to which allusion has just been made, and to which other similar historical data 
 are not added, for the sake of brevity, he added that he applauded the rectitude of views 
 in which his excellency Senor Baptista abounded, nor could it be otherwise; but deem- 
 ing it indispensable to give to those ideas a tangible form, as it were, that shall carry 
 conviction of our good faith to those dispassionate observers who are contemplating 
 these republics : that shall satisfy our common decorum, and silence the exaggerations 
 that may arise in our respective countries, he proposes that all the points of these dif- 
 ferences to which his excellency Seiior Baptista has alluded, and which shall be 
 detailed in posterior discussions, be submitted to the arbitration without appeal of the 
 Government of the United Statf s of America, called to that high position by their 
 elevated morality, their position on the continent, and the spirit of concord manifested 
 impartially in favor of all the belligerent nations here represented. 
 
 His excellency Seiior Arenas added, seconding the views of his excellency Senor 
 Garcia y Garcia, that the arbitration proposed is the most practical and decorous 
 solution that could be reached, abandoning thus the crooked paths trodden by these 
 countries since the war began. He begged, once and again, their excellencies the 
 representatives of Chili to ponder and meditate upon the direful consequences of a 
 contrary determination. 
 
 His excellency Mr. Vergara said that it was not his intention in taking the floor 
 to follow his excellency Seiior GARcfA Y Garcia through the various points of the ar- 
 gument to which he had just listened. He would confine himself to the proposal of 
 arbitration which had been presented for debate, in order to declare peremptorily in 
 the name of his government and in that of his colleagues that he does not accept it, 
 in any form w hatever. Chili has always professed a decided preference for this rational 
 and equitable mode of procedure for the settlement of international questions, consid- 
 ering it as most in conformity with the tendencies of modern civilization, as well as 
 the most suitable to her own. She has furnished evidence of this in all her disagree- 
 ments with other nations, and very specially in the question which has brought about 
 the present war. Before taking up arms and appealing to force, she repeatedly pro- 
 posed to lay before au arbiter the settlement of the difficulty. Her voice was unheard, 
 and she found herself unwillingly dragged into war. 
 
 Launched upon this course, which has demanded enormous efforts and sacrifices, 
 Chili has succeeded, through the repeated triumphs of her arms, in placing herself in 
 a position of vantage permitting her to demand a peace, guaranteeing the future and 
 compensating the injuries she has received and the sacrifices imposed upon her. As 
 she has incurred all the risks ot war, exposing herself to the disastrous consequences 
 of reverses of fortune, so also should she enjoy her unquestionable right to profit by 
 the advantages given her by their successful result. Chili seeks an enduring peace, 
 which shall consult both her present and future interests, which shall be proportioned 
 to the elements and power she possesses to obtain it, to the labor already performed, 
 and to well-founded national aspirations. This peace she will negotiate directly with 
 her adversaries when they accept the conditions she detnis necessary for her security, 
 and there is no reason whatever why she should deliver up to other hands, honorable 
 and secure as they may be, the decision of her destinies. For these reasons she declares 
 that she rejects the proposed arbitration. 
 
 His excellency Senor Lnxo said that he had not expected to have addressed this 
 solemn conference, but the proposal of arbitration presented by his excellency Senor 
 
AFFAIKS IN CHILI, PERU, AND BOLIVIA. 415 
 
 GarcIa y Garcia compelled him to forego his intention. He believed it his duty to 
 fully indorse the rejection of that proposal already manifested by his honorable col- 
 league, Sefior Vergara. 
 
 He understood and accepted arbitration when it was desired to avoid a war. This 
 is the most worthy, the nobler course, harmonizing best with the principles of civili- 
 zation and fraternity which should guide enlightened nations, and more especially 
 those who by their antecedents and intimate relations form a single family ; but arbi- 
 tration has its opportune moment, and this, for the negotiations of peace which occupy 
 us to-day, has unfortunately passed. 
 
 Arbitration, after the struggle and after the victory, cannot be a solution accept- 
 able to Chili. What could she ask of the arbiter ? That he value the sacrifices made 
 by Chili in a war to which she had been provoked ? That he estimate the price of 
 the blood of her sons ? That he calculate the indemnity due to her efforts 1 That he . 
 foresee all that would be required in the future, so that she should not be under the 
 painful necessity of haviDg again to take up arms in defense of her rights and her 
 tranquillity ? 
 
 Solutions to questions like these, after costly and sanguinary victories, can and 
 ought only to be given by the nation which has crowned such sacrifices by success. 
 
 His excellency one of the plenipotentiaries of Bolivia has invoked American frater- 
 nity, and the necessity of not causing antecedents to figure in the settlement of this, 
 contest which might establish in the public law of these countries the idea of conquest. 
 The speaker accepted and applauded the sentiments of fraternity alluded to, but war 
 will be more difficult in the future in proportion as the sacrifices it imposes are greater 
 for those who attempt to provoke it. 
 
 Chili neither desires nor will she ever consent to establish the right of conquest. 
 What she asks is a just compensation for her sacrifices in this fatal struggle, and pro- 
 tection to communities essentially Chilian, who would not accept the fact of their 
 abandonment, since they live and flourish to-day under the shadow of her flag. 
 
 Cession of territory, after great advantages obtained in war, is a fact which has fre- 
 quently occurred in republican America in modern times. Nations which h'aveso acted 
 have had no reason to repent, since, while seeking just compensation for their efforts, 
 they carried wealth and progress to the regions surrendered to them. 
 
 Arbitration, and arbitration at the hands of the great nation, model of republican 
 institutions, will be always accepted by Chili with the applause of the people; but 
 the opportune moment has gone by, and to accept it, under present circumstances, 
 would be, for Chili, an act of vacillation and of weakness. 
 
 He understood that the plan proposed by his excellency Sefior Baptista might be 
 taken into consideration. According to it, Chili would fix her war indemnity and her 
 conditions, retaining possession of the Peruvian territory now occupied by her arms, 
 as a guarantee, until she should receive the satisfaction of her demands. He repeats 
 that he understands this solution, but it is not that which the instructions of their 
 government impose upon them, and although personally he thinks these indications 
 worthy of consideration, he is compelled to remain within the limits of the instructions 
 received. 
 
 His excellency Mr. Carrillo said: 
 
 " The grave and positive declarations which have been made in regard to the prin- 
 cipal proposition presented are calculated to almost extinguish the hope of a peaceful 
 arrangement. Nevertheless, the idea is so grand, so great the interest of the questions 
 submitted to the deliberations of this honorable assembly of plenipotentiaries, that I 
 deem it indispensable to endeavor, if possible, yet to find a formula of acceptable solu- 
 tion, which if not immediately considered, as being irreconcilable with existing in- 
 structious, might be submitted by their excellencies, the plenipotentiaries, to their 
 respective governments. 
 
 "Arbitration has just been proposed, and in this highly conciliatory measure may 
 perhaps be found a peaceful solution. 
 
 "We cannot ignore that the deliberations of the present conference attract, at this 
 moment, the attention of the civilized world. Here is to be decided, not only the 
 fate and future of the three republics, but the great interests of America. The prece- 
 dents for the new public law of South America are about to be established, a legislation 
 which, from the especial character of its conditions, cannot but diverge from European 
 doctrines. There the traditions of prcdominence, the diversity and tendency of races 
 to unification, maintain a permanent struggle between the past and progress. Eu- 
 rope, in spite of her noble aspirations, still finds herself confiued within a circle of iron 
 from which she cannot escape. In the meanwhile America, formed of peoples ushered 
 into political life by their own exertions, and established under identical institutions, 
 knows no other tradition than that of having struggled against conquest and against 
 the mastery of force, from which she has separated forever. With her, wars of pre- 
 ponderance have no reason to exist, and even the practices of war must become less 
 disastrous and cruel. 
 
 "Thus international disagreements, however grave, between nations closely bound 
 
416 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 by their origin and common destiny, should in preference be settled by conciliatory 
 methods, such as the proposed arbitration. Arbitration, yonr excellencies, as an hon- 
 orable expedient, is the supreme aspiration of nations, and there is no question, how- 
 ever grave and difficult, that cannot, by this means, reach a most satisfactory result. 
 
 " The only objection that bas been urged against abitration consists in that, in the 
 opinion of his excellency SeDor Liixo, the Republic of Chili cannot permit that a third 
 party estimate the price of the blood of her sons, or the value of her sacrifices. I fail 
 to find sufficient solidity in this reasoning. The very expression, 'estimate the price 
 of blood,' is not in my opinion the most' proper. The arbitrator, in his high impar- 
 tiality, would appreciate the demands of the Government of Chili, with due reference 
 to her sacrifices, to the blood shed and to the advantages obtained, up to the present, 
 in the field. If these demands are just, if the blood that has been shed confers upon 
 a belligerent the right to obtain concessions, if the securing of peace requires sacri- 
 fices from the other states, even to the modification of their international frontiers, 
 and if all this is in conformity with the rights of war, the friendly power, constituted 
 by common confidence into a tribunal of arbitration, will so decide; its award will 
 consult that which is most equitable, most proper for the establishment of a lasting 
 peace. If this procedure is worthy of all concerned, there is no reason to doubt that the 
 arbitrator would consult the interest of Chili, in the state in which the war is at this 
 moment. This decision would come out from the sacred regions of impartiality, it 
 would be the calm expression emanating from justice, and would bring with it recon- 
 ciliation and true peace, entirely honorable for Chili and acceptable without humilia- 
 tion by the other republics. 
 
 " If the arbitral award should prove adverse to the interests of Bolivia and of Peru, 
 and should declare the necessity of territorial concessions, the allied republics, even in 
 this case, would bow to this decision in homage to this supreme tribunal of nations. 
 
 "For the first time and at the expiration of more than a year of war, too protracted 
 for young republics who are sacrificing their population and their resources, has the voice 
 of reason instead of force, for the decision of the question of the Pacific] been raised 
 by an American nation. The only expedient remaining is arbitration ; through it 
 American interests and republican institutions may yet be saved. 
 
 "From the midst of Europe, where international boundaries are frequently changed 
 in contradiction to the progress of right ; where a race or a power rules over another 
 to-day, to be in turn perturbed to-morrow ; from there the brightest minds, the pro- 
 foundest thinkers, contemplate America as the true country of the justice, the equal- 
 ity, and the fraternity of nations. From that continent is sent forth the brilliant light 
 of progress and justice to find unobstructed realization in America. 
 
 " Will the Republic of Chili, which has attained, earlier than the rest, remarkable 
 progress, and which is consequently called upon to march in the van of this movement, 
 introduce into the policy of America the practices imposed upon Europe for reasons 
 adverse to progress ? 
 
 " I recall another argument against arbitration, ' that it could only be accepted be- 
 fore war.' Arbitration, your excellencies, which reconciles all differences, is accepta- 
 ble, in my judgment, at the outset of a war, to prevent it, during its course, to stop 
 its ravages, and up to the close of the contest, in honor of the victor, who should have 
 the wise foresight to leave the declaration of conditions to the arbitration of a respected 
 neutral power. Victory would thus insure her advantages, and achieve peace without 
 the hatred of the vanquished. 
 
 " Moreover, international arbitration is distinct from that employed in questions of 
 private interest. In these the judge confines himself to the decision of the original 
 question, its conditions remaining unaltered. International disagreements are appre- 
 ciated and decided with all amplitude, and according to the condition of the parties 
 or the belligerents, and in conformity to the rights derived from the war. 
 
 " The proposition of my colleague, his excellency Seflor Baptista, has been expressed 
 as his private opinion ; for my own part, I indorse it, and am persuaded that, for the 
 sake of great international interests, it will be approved by the government of my 
 country. I renew it therefore in this form : ' Statu quo of the territory occupied by the 
 forces of Chili, pending the decision of the tribunal of arbitration proposed upon all 
 points in dispute ;' a solution frank and American. 
 
 " Before concluding, I deem it opportune to state that when the respected mediation 
 of the most excellent Government of the United States of America was offered to Bo- 
 livia, my government, as well as public opinion, felt satisfied that peace would result ; 
 for that mediation was accompanied by another word — arbitration — which signifies 
 justice and honor for all, humiliation to none. 
 
 "In this persuasion, and with a policy of frankness, the Bolivian plenipotentiaries 
 have come to this conference." 
 
 His excellency Mr. Osboen remarked that it seemed proper to him, as well as to his 
 colleagues, to place upon record that the Government of the United States does not 
 seek the position of arbiter in this question. A strict compliance with the duties in- 
 herent to that position would involve much trouble and great labor, and while he 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 417 
 
 could not doubt that his government would accept the position if duly requested to 
 do so, it was nevertheless proper that it be understood that its representatives did r/ot 
 court that distinction. 
 
 Hisexcellency Seflor Altamikano stated.that, after the brilliant argument just made 
 by his excellency Senor Carrillo, in favor of the abitration proposed by his excellency 
 Senor Gahcia y Gakc{a, he is compelled to once more weary the conference with his 
 remarks : 
 
 It is very painful for him and for his colleagues, and doubtless will be for his gov- 
 ernment, to refuse a proposal for arbitration; to decline to accept a judge so highly 
 placed and so nobly inspired as tbe Government of the United Stites. 
 
 It is necessary, therefore, to clearly establish that arbitration is the standard which 
 Chili has invariably raised in her international questions, and it is, above all, neces- 
 sary to remember that, iu order to avoid this sanguinary war, she also offered to ap- 
 peal to judges before drawing the sword. That was the moment, and it is most de- 
 plorable that her offer was not accepted. 
 
 According to bis excellency Senor Carrillo, if this conference should close with the 
 acceptance of arbitration it would be an epoch of glory for America, and a just, lofty, 
 and noble policy would be inaugurated for the future. 
 
 His excellency Mr. Altamirano concurred with his excellency in the desire to see 
 arbitration elevated to the position of the sole and obligatory method of deciding dif- 
 ferences between nations ; but if it were in the present instance accepted by tbe plen- 
 ipotentiaries of Chili, they would be justly accused and justly condemned at home as 
 guilty of desertion from duT.y, and almost of treason to the clearest rights and interests 
 of their couutry. 
 
 He warmly indorses his colleagues, therefore, in their rjection of the proposal of his 
 excellency Senor GARcf ay Garcia, and would here conclude were it not that he must 
 address a single word to that honorable gentleman. 
 
 His excellency Senor Garcia y GARcf a rejecting indignantly, in the name of civiliza- 
 tion, the principle of conquest invoked by Chili, has reminded us that Peru, when 
 victorious in Guayaquil, withdrew without carrying away a grain of her sands, and 
 leaving behind her the memory of many benefits. 
 
 Senor Altamirano does not propose to gi vea course of history, since for his part he 
 does not wish that the tone of these discussions, hitherto calm and dignified, should be 
 changed by any act of his ; but should he do so, he might find examples of rectifica- 
 tions of boundary, perhaps of the very line separating Peru from Ecuador ; but this 
 would be useless, and after the declarations made, would lead to nothing. 
 
 His excellency Mr. Osborn inquired whether any one of those present desired to 
 take the floor, and no one expressing a wish to do so, declared the conference adjourned 
 until Wednesday, the 27th, at 12 o'clock noon, and the session closed at 4 p. m. 
 
 M. BAPTISTA. 
 JUAN C. CARRILLO. 
 J. F. VERGARA. 
 E. ALTAMIRANO. 
 EUS. LILLO. 
 ANTONIO ARENAS. 
 AURELIO GARCIA y GARCIA. 
 THOMAS A. OSBORN. 
 I. P. CHRISTIANCY. 
 CHARLES ADAMS. 
 F. Avelino Aramayo, 
 
 Secretary of the Bolivian Legation. 
 Domingo Gana," 
 
 Secretary of the Plenipotentiaries of Chili. 
 M. N. Valcarcel, 
 
 Secretary of the Plenipotentiaries of Peru. 
 Charles S. Rand, 
 
 Secretary and Interpreter of the Mediators. 
 
 Protocol No. 3. 
 
 [Translation:] 
 
 On board of the Noith American corvette Lackawanna, in the bay of Arica, on the 
 twenty-sevenlh day of October, 1880, all the plenipotentiaries having met^together, 
 viz: 
 
 S. Ex. 79 27 
 
418 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 On the part of Bolivia, tlieir excellencies Dr. D. Mariano Baptista and Dr. Don 
 Juan Cris6stomo Carrillo. 
 
 On the part of Chili, their excellencies Sefiores D. Jose Francisco Vergara, sec- 
 retary of state in the departments of war and the navy, D. Eulogio Altamirano, and 
 D. Eusebio Lillo. 
 
 On the part of Pern, their excellencies Dr. D. Antonio Arenas and D. Aurelio 
 Garcia y Garcia. 
 
 In the presence of their excellencies, the mediating ministers of the United States 
 of America, Thomas A. Osborn, esq., Isaac P. Christiancy, esq., and General 
 Charles Adams. 
 
 His excellency Mr. Osborn expressed his thanks to their excellencies the pleni- 
 potentiaries for their presence, and his hope that the time which had elapsed since 
 the preceding session may have allowed them to discover some means of arranging 
 existing difficulties. 
 
 He then declared the conference open. 
 
 The minutes of the preceding meeting were read and approved. 
 Mr. Osborn then signified his readiness to hear any suggestions that it might be 
 thought proper to make. 
 
 He then addressed himself to each one of their excellencies the plenipotentiaries of 
 Chili, asking him if he had anythiug to observe in relation to the matters under dis- 
 cussion. Their excellencies the plenipotentiaries of Chili stated that in conformity 
 to their instructions ic was impossible for them to make any modification whatever in 
 the condition laid down. 
 
 His excellency Mr. Osborn then invited each one of their excellencies the plenipo- 
 tentiaries of Peru to rnanifesr, if so disposed, their ideas upon the subject. Their 
 excellencies the plenipotentiaries of Peru declared, in reply, that as Chili insisted 
 upon the maintaining of the first condition, and the arbitration proposed by them not 
 having been accepted, it was impossible for them to go into an examination of the 
 other conditions; that every door had been closed to them, and the continuation of 
 the war rendered necessary; and that the responsibility of its consequences must not 
 rest upon Pern, who had indicated a decorous means of reaching peace. 
 
 His excellency Mr. Osborn invited in turn their excellencies the plenipotentiaries 
 of Bolivia to make known their ideas, and they stated that for their part they con- 
 sidered the situitiou to be clearly aud sharply deliued. There is one condition, the 
 first presented by their excellencies the plenipotentiaries of Chili, as indeclinable, 
 which the allies cannot accept. There is another, that of arbitration, suggested by 
 their excellencies the plenipotentiaries of the allied republics aud rejected by those 
 of Chili ; and there is finally a third, which has been proposed separately by the rep- 
 resentatives of Bolivia, but which has not been taken into consideration. They con- 
 sider, in view of this result, that the negotiation has reached its close, and regret that 
 the political situation of the respective countries should not have permitted a common 
 agreement to have been reached. 
 
 His excellency Mr. Osborn declared that he and his colleagues profoundly lament 
 that the conference should not have yielded the pacific and conciliatory results hoped 
 from it, and believe that the same impression will be made upon the government and 
 people of the United States when the fact is communicated to them that the friendly 
 mediation of the United States has been fruitless. 
 
 He therefore declared the conference closed, in witness whereof they sigued. 
 
 M. BAPTISTA. 
 JUAN C. CARRILLO. 
 J. F. VERGARA. 
 E. ALTAMIRANO. 
 EUS. LILLO. 
 ANTONIO ARENAS. 
 AURELIO GARCIA Y GARCIA. 
 THOMAS A. OSBORN. 
 I. P. CHRISTIANCY. 
 CHARLES ADAMS. 
 F. Avelino Aramayo, 
 
 Secretary of the Bolivian Legation. 
 Domingo Gana, 
 
 Secretary of the Plenipotentiaries of Chili. 
 M. N. Valcarcel, 
 
 Secretary of the Plenipotentiaries of Peru. 
 Charles S. Rand, 
 
 Secretary and Interpreter of the Mediators. 
 
AFFAIES IN CHILI, PEEU, AND BOLIVIA. 419 
 
 No. 286. 
 
 Mr. Christiancy to Mr. Erarts. 
 
 No. 202.] Legation op the United States, 
 
 Lima, Peril,, November 2, 1880. (Received December 6.) 
 
 Sin : I deem it proper to explain to you the causes of my sending 
 you the telegrams of the 28th October from Arioa aud that of Novem- 
 ber 1 from here, and the facts and circumstances under which they 
 were sent. 
 
 When the conferences at Arica had completely failed, on the 27th 
 October I proposed to Mr. Osborn (who was the senior minister of the 
 United States, who had presided at the conferences) that he should 
 telegraph to you, not only the fact that the conferences had failed, but 
 that the two points of disagreement which lead to that disagreement, 
 viz, the refusal of Peru to cede Tarapaca and the rejection by Chili of 
 the arbitration of the United States. He seemed to be particularly 
 anxious to avoid telegraphing that Chili had refused the arbitration of 
 the United States, and declared that he should only telegraph you that 
 "the conference had ended without result." I then informed him that 
 I thought it proper to let you know the points of difference which 
 caused the failure to agree, and that I proposed to telegraph that Peru 
 refused to cede Tarapaca and Chili rejected the proposed arbitration 
 of the United States. Upon the last point Mr. Osborn, I thought, 
 seemed to be peculiarly sensitive and very unwilling that it should be 
 announced that Chili had rejected the arbitration of the United States. 
 
 Supposing that he would telegraph as he had proposed, I prepared a 
 dispatch in the following words, which I thought would supplement 
 his, viz: "Peru refuses Tarapaca; Chili refuses arbitration of the 
 United States." 
 
 But when I found that it would cost nearly $200 to send it, I hesi- 
 tated, thinking you might deem it unnecessary after Mr. Osborn's dis- 
 patch. But on consulting the Peruvian negotiators they thought it 
 very important that my dispatch should be sent, and offered to pay 
 the expense. I therefore sent it, and they paid the expense, $100 in 
 silver and $66.66 in gold. 
 
 After arriving here the Peruvian Grovernment, believing that my 
 dispatch from Arica had probably been suppressed in Chili, through 
 which it had to pass, wished me to telegraph to you via Panama, they 
 paying the expense. I therefore telegraphed you from here November 
 1 to same effect via Panama, to be sent there by mail from here, Peru 
 paying the expense. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 287. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 204.] Legation op the United States, 
 
 Lima, Peru, November 5, 1880. (Eeceived December 17.) 
 Sir : Eeferring to my dispatch No. 200, which was written in great 
 haste to be got off to Chimbote by steamer Adams, I notice that I 
 omitted one fact which it may be important for you to understand. 
 
420 
 
 AFFAIRS IN CHILI, PERU, A> T D BOLIVIA. 
 
 The basis of negotiations, so far as related to the acquisition of terri- 
 tory by Chili, as foreshadowed by Mr. Baptista, viz, that a certain sum 
 should be agreed upon as due to Chili for the expenses of the war, and 
 that Chili should retain the possession of the whole or a part of the 
 territory now in her possession as security for the payment of that 
 sum, seemed to me to offer the only light out of the dead-lock in which 
 the parties found themselves. I therefore urged upon the Peruvian 
 plenipotentiaries that they should make a proposition upon this basis. 
 I was, in reply, told by them that they would have been quite willing 
 to do so if they had uot been precluded by the positive declaration of 
 the Chilian plenipotentiaries that no such proposition could be enter- 
 tained, but that the unqualified acceptance of their first proposition 
 was an indispensable condition to all further attempts at negotiation. 
 And this being the fact, as appears by the protocols, I could not urge 
 thein further to make such a proposition. 
 I am, &c, 
 
 I. P. CHEISTIAXCY. 
 
 No. 288. 
 
 Mr. Calderon to Mr. Erarts. 
 
 [Translation.] 
 
 Department op Foreign Relations and Worship, 
 
 Lima, Soc ember 5, 1880. (Received December 21. , 
 
 It is proper that it should be known to America and to the world at 
 large who is responsible for the great perturbation which the present 
 war on the Pacific coast has brought upon this continent, causing, at 
 the same time, incalculable injury to the industry and commerce of all 
 nations with which we are on terms of friendship ; it is proper that it 
 should be clearly established upon whom rests the responsibility for the 
 bloodshed and for the suffering which, in a sphere far above that of 
 material interest, has been originated, and will continue to be so, for 
 Heaven knows how long, by the wicked war into which we have been 
 forced, without being influenced ourselves by ambition of any kind, or 
 by any selfish motive whatever: it is proper that our friends should 
 know how great was the self-abnegation manifested by us when an op- 
 portunity of seeking justice through peaceful channels was offered, and 
 how arrogant and treacherous was the attitude assumed by our adver- 
 saries, who never did, and do not now, entertain any design, save the 
 realization of a preconceived plan fortheir own aggrandizement at the 
 expense, and in derogation of the honor of others. 
 
 I have already had the honor directly to inform your excellency how 
 a question relative to the boundary between the Republic of Chili and 
 that of Bolivia, our ally, was the sole cause of the war on the Pacific 
 coast. Chili has now made known with her own mouth (as your excel- 
 lency will see by the copy which accompanies this circular), in all its 
 monstrous proportions, what she so long and so obstinately denied, viz, 
 that the real cause other conduct in her differences with Bolivia has been 
 no other than that which I have just stated ; and she has revealed to 
 us at the same time the astounding advances that she has made in her 
 ambitious views. 
 
Affairs in chili, peru, and Bolivia. 421 
 
 These are, indeed, the result of a morbid condition and of the febrile 
 delirium to which great passions lead when not checked in time, yet 
 this delirium is occasioning the greatest disasters in this portion of 
 America, and is a presage of the most serious dangers in the future. 
 
 It is important, therefore, that it should be denounced before the 
 community of civilized nations, and it is high time that it should 
 receive an exemplary check. 
 
 The inclosed memorandum,* which was presented at the conference 
 held at Arica, by the plenipotentiaries of Chili, as a recapitulation of 
 the conditions deemed essential to the restoration of peace, is a concise 
 statement, which cannot be disavowed by our enemies, of their real 
 views and purposes in this war. 
 
 I beg your excellency, as the duty is a somewhat important one, to 
 permit me to point out, to the best of my ability, the moral deformity 
 which these conditions indicate. 
 
 The first is " the cession to Chili of the territories of Peru and Bolivia, 
 which extend to the south of the Gamarones Valley, and to the west of the 
 line which separates Peru from Bolivia in the Andes Mountains, to the 
 Ghacarilla Valley, and also to the icest of a line extending from the latter 
 ■point tothe Argentine frontier , passing through the center of Lake Ascotan." 
 
 The demands which Chili makes of the allies are by no means small. 
 Peru has even more reason than Bolivia to be astonished at their mag- 
 nitude, because, after all, she never had, and never could have any dis- 
 pute with the common enemy concerning boundaries, nor did Chili ever, 
 either before the war or after it had been declared, raise any claim that 
 Peru was her debtor. 
 
 When one looks on the map of the two republics (whose dismember- 
 ment Chili so coolly demands), at the portion of territory belonging to 
 both, which she seeks to appropriate to herself, the feeling of indigna- 
 tion which first arises is succeeded by one of amusement, which is in- 
 creased by the reasons which are alleged for the spoliation with all the 
 solemnity which befits a diplomatic conference held in the presence of 
 a mediator who is worthy of all respect. 
 
 Let us see what are these reasons : 
 
 First. The necessity which Chili feels of enlarging her territory by 
 rectifying her frontiers for her future security. 
 
 Second. The fact that she has fertilized those wilds with the labor 
 and the capital of her citizens, who have settled in those regions in 
 large numbers, and whom she cannot abandon, especially after the blood 
 of her heroes has been shed there and she has established a military 
 occupation of the country. 
 
 The first of these extraordinary arguments is simply egotistical com- 
 munism, expressed without the least shadow of shame, with the irritat- 
 ing concomitant of styling "a rectification of frontiers" that which at 
 the first view is a twofold increase of territory. 
 
 The second is herein reduced to the language of truth and honesty, so 
 far as concerns Peru. 
 
 Inasmuch as a vast field of speculation and fabulous returns for 
 Chilian capital has lain open gratuitously, affording lucrative and re- 
 formatory employment for the worthless class which overflowed from 
 Chili, driven forth, moreover, into foreign parts by an administration 
 as discreet as it was far-sighted, therefore Chili makes her own the 
 territory from which she derived such important benefits. That is 
 
 *See Protocol No. 1 of the conferences of Arica, document No. 285, ante. 
 
422 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 to say, that what should have constrained her to gratitude is turned 
 by her, scandalously, into a claim of usurpation, and. this not limited 
 to the space held by her armed force, but to regions to which has not 
 been extended, neither can be extended, the abuse of a material force 
 and preponderance as ephemeral as the circumstances from which it 
 springs. 
 
 Moreover, the mere enunciation of the pretensions of Chili is an in- 
 sult to the public law of our age, which condemns territorial acquisi- 
 tions by means of conquest, and which has not tolerated cessions of this 
 class, except when they have been, in some sense, excused by historic 
 reasons and by the imperative exigencies of peace and common tran- 
 quillity, and even then consulting the essential and sacred condition 
 of the liberty of a people, which condition has never failed to find the 
 most conscientious support, even among the advocates of hereditary 
 kingdoms. 
 
 Moreover, the pretension of Chib is subversive of American public 
 law, and in violation, especially, of a positive principle, formulated, 
 recognized, and adhered to until now by all of the republics of Spanish 
 origin established on this continent. At the same time that they stood 
 before the world with the decree of emancipation which they had won 
 in the tribunal of arms, they proclaimed with one voice, as a guarantee 
 of peace and safeguard of their repose for the future, the permanent 
 establishment of the possessions and respective frontiers of each of 
 them, adopting, to that end, the brief but expressive phrase of the cele- 
 brated Eoman injunction uti possidetis ita jiossideatis. 
 
 In view thereof, there never has been any question among the pos- 
 sessors of these vast dominions as to the rule which they should follow 
 in case of doubt or conflict touching territorial extension. All that has 
 been discussed in such cases has simply been the just application to 
 the subject in controversy of the principle sanctioned as fundamental 
 for the decision of all such questions. 
 
 The uti possidetis, a practical principle, which sprang forth from the 
 nature of things at the epoch of the independence of these repubbcs, 
 established the equihbrium necessary and proper for the development 
 and progress of all of them, without prejudice, however, to such free 
 acts as, by modifying their status, might tend to larger advantages and 
 fuller greatness. 
 
 To-day Chili, while seeking to destroy that equilibrium, in violation 
 of the primordial basis of the international constitution of these repub- 
 bcs, endeavors to impose upon Bolivia and Peru, by the fifth of the 
 conditions now under consideration, the rupture of the purely defensive 
 alliance they have made, and the annulment of the federal union which 
 they have agreed upon and which is now in the path of completion and 
 full execution; The tyranny of Chili, if there were the force to sustain 
 it, would be the most irritating and vexatious of any that could be de- 
 vised for the sovereignty and freedom of both republics. Xo ; it is not 
 possible to permit such absurd pretensions to be even enunciated with- 
 out bringing them to judgment and branding them before all the world 
 with the stigma they deserve. 
 
 After having unexpectedly declared war against the allies, and hav- 
 ing revived, in the most cruel and horrible manner, a barbarity which 
 humanity had with shame consigned to oblivion, Chili dares to de- 
 mand, in the second of her essential conditions of peace, an enormous 
 indemnity for the expenses she has incurred for the sole purpose of in- 
 flicting calamities and injuries, the complete reparation of which would 
 be due to us in good right, but which Chili can never give us, so far is 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 423 
 
 her wealth and her solvency inferior to the losses she has caused to us. 
 
 Chili, in her conditions of peace, has not only put herself outside of 
 the pale of right, but is completely opposed to the right. 
 
 "The restoration of the property of which Chilian companies and citi- 
 zens have been despoiled in Peru and Bolivia," exacted by the third con- 
 dition of the memorandum, is devoid of all signification with respect to 
 Peru, who has carried her generous chivalry to the extent of leaving all 
 such property intact, notwithstanding that the ferocious conduct of her 
 adversary warranted her in the adoption of every kind of retortion and 
 reprisals. 
 
 The fourth condition demands the return of the transport Eimac, 
 captured according to all rules in the course of a naval battle for which 
 Peru was wholly unfit, notwithstanding that Chili holds all that she 
 has taken from us on the seas through her temporary superiority, 
 which was' due solely to the unfortunate confidence in which Peru 
 slumbered, while reposing faith in the flattering assurances of her sis- 
 ter and former ally, in a contest from which she derived all the advan- 
 tages and Peru reaped all the disadvantages. 
 
 To complete the picture of the pretensions of the memorandum, the 
 sixth and seventh conditions thereof involve, for the present and until 
 Peru shall have satisfied those previously set forth, the retention by 
 Chili of the districts of Moquegua, Tacna, and Arica, and, as to this 
 latter port, for the future, the prohibition of fortifying it upon its re- 
 turn to Peru. 
 
 Even if not just, the harmony and transcendental foresight of the 
 conditions proposed by Chili for deigning to grant us peace is undeni- 
 able. 
 
 Not we, but the world, and especially America, will pass final judg- 
 ment thereon ; and its judgment, dictated by a sense of justice, will be 
 the re-establishment of the moral order which Chili has overthrown in 
 this fratricidal war to the affronting of civilization and humanity. 
 
 My government, for its part, maintains and has declared the irrevo- 
 cable resolve to be faithful to its honor and to the solemn charge which 
 the supreme chief of the republic received from the people of Peru 
 when he was chosen as their leader under such grave and difficult cir- 
 cumstances, and when absolute xiowers were conferred by them upon 
 him. 
 
 I beg your excellency to be pleased to accept on this occasion the 
 assurances of the high consideration and distinguished appreciation 
 with which I have the pleasure, to subscribe myself 
 
 Your excellency's faithful and obedient servant, 
 
 PEDEO JOSE CALDERON. 
 
 Note. — For Annex No. 1, being the text of the memorandum of the essential condi- 
 tions of peace presented by Chili in the conference of Arica, see Mr. Christiancy's No. 
 200 of November 2, 1880, document No. 285, ante. 
 
 For Annex No. 2, being the protocols of the conference of Arica, see the same, docu- 
 ment No. 285, ante. 
 
 Xo. 289. 
 
 Mr. Hay to Mr. Christiancy. 
 
 No. 108.] Department op State, 
 
 Washington, November 9, 1880. 
 
 Sik : I have to acknowledge the receipt of your JSTo. 195, and to ap- 
 prove the investigation made by you into the facts of the charge pre- 
 
424 AFFAIRS IX CHILI, PERU, AND BOLIVIA. 
 
 ferred by the Chilian Government against Mr. Memum, the consul of 
 the United States at Iquique, that he had allowed himself to become a 
 medium of communication between the Peruvian General Montero and 
 his government. You will, of course, give proper attention to any fur- 
 ther complaint or evidence on the subject that may be laid before you. 
 I am, sir, &c, 
 
 JOHN HAY, 
 Acting Secretary. 
 
 No. 290. 
 
 Mr. Ghristiancy to Mr. Urartu. 
 [Private and confidential.] 
 
 Xo. 209.] Legation of the United States, 
 
 Lima, Peru, Xovember 11, 1880. (Received December 17.) 
 
 Sir : I think it right that I should inform you of certain impressions 
 I received in a conversation with some of the members of the diplomatic 
 corps, held at the legation of Mr. Pinto, of Salvador, who is the dean of 
 the diplomatic corps. 
 
 The question of the most proper mode of protecting the legations and 
 consulates of neutral nations here in case of the taking and sacking of 
 Lima being the subject of conversation at the moment, started by me 
 with the view of eliciting some manifestation of designs of intervention 
 which I suspected to exist with some of the foreign ministers, T was 
 strongly impressed with the idea from what was said by the English 
 minister, and to some extent by the minister of France, as well as the 
 peculiar reserve exhibited by them upon some points, that both the 
 English and French ministers have been seeking to get their govern- 
 ments to intervene in the present war here, or that their governments 
 have given them cause to believe they contemplated such intervention. 
 It would be difficult to give you all the slight shades of expression 
 which together seemed to indicate this, while few of the expressions 
 taken alone would furnish much ground for the inference. But one 
 point in particular seemed to me by itself to furnish a pretty strong in- 
 ference of the kind. When I spoke of what might be expected in case 
 the Chilian army should take Lima by storm, and how little safety even 
 our legations might find from an infuriated soldiery which could not be 
 controlled by their officers, a point which for mouths before they seemed 
 to think a very important one, the British minister said in substance, 
 " Oh, in such a case or before matters reach such a stage the Peruvian 
 Government must yield, and make peace ; " to which 1 replied in sub- 1 
 stance, "Yes, if they choose to, but if not we cannot compel them to.*' 
 No direct reply was made to this answer, but I could readily perceive 
 that the French minister seemed entirely to concur with the minister 
 of England, and that both were very reticent as to the means of forcing 
 a peaceful result in such a case. I attach the more significance to these 
 things because very frequently in the course of the last eight months 
 both these ministers, as well as the minister of Germany, have frequently 
 intimated, and sometimes plainly said to me, that there ought to be in- 
 tervention, and that peace could only be brought about in that way. 
 But the minister of Germany has lately said nothing of the kind, and 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 425 
 
 1 hear it rumored that his government A\ill not intervene. But, on the 
 other hand, the French minister, who last year said to me, on repeated 
 occasions extending over a period of four or five months, " Your gov- 
 ernment is the only one that can bring about peace here." And he 
 often urged that the United States ought to press mediation, yet the 
 moment he found that all the belligerents had accepted our mediation he 
 showed nearly as much petty jealousy as the minister of England, and 
 both alike not only showed their hostility but joined, not in my presence, 
 in the attempt to throw ridicule upon it, while they at the same time were 
 ■attempting to induce Peru to accept peace by ceding Tarapaca to Chili, 
 which I think it quite probable, at least, they think of compePing Peru 
 to do by active intervention. 
 
 The secret motive, if it can be said to be kept a secret at all, is, I think, 
 to be found in the fact that a large amount of the salitre bonds and of 
 the guano bonds, for which the salitres and guano of Tarapaca are 
 pledged, and which, especially the latter, constitute alien upon the ter- 
 ritory or beds where they are found, are held in England, and a con- 
 siderable amount in Prance, and Chili is willing to — if in fact she would 
 be bound to — assume their payment, and more confidence is placed>in 
 the ability and the disposition of Chili than of Peru to pay them. 
 
 I have not the slightest doubt that all the influence of the English 
 ministers here at Santiago, and probably those of France, and possi- 
 bly Italy, was used to thwart the success of our mediation, as I un- 
 derstand and believe that the English minister here, immediately on 
 learning that Chili had accepted our mediation boasted in substance 
 that he would prevent the success of that effort. They did not expect 
 that we would be able even to get the parties together to open negotia- 
 tions and were greatly chagrined when they found we did finally suc- 
 ceed in this. 
 
 Xow, it might have been, and possibly might yet be, wise for the al- 
 lies to accept peace by the cession by Bolivia and Peru of the territory 
 ■claimed by Chili, rather than to contiuue the war, but whether the set- 
 tlement of peace upon such terms would be wise for the allies, or not, 
 is a question for them to decide, each for itself, and for any neutral na- 
 tion to deny them that right is, it seems to me, virtually to deny them 
 the essential rights of independent national existence. 
 
 It will be readily seen from what I have already said that the appre- 
 hended intervention under the circumstances would amount to little 
 <else than the active aid of the intervening powers given to Chili, at 
 present victorious, both by sea and land, for the purpose of crushing 
 both Peru and Bolivia. 
 
 I know that the Peruvian Government looks upon the apprehended 
 intervention in this light, and is more apprehensive of injury from it 
 than from all the power of Chili. 
 
 I have had no express instructions from you applicable to such a con- 
 tingency, but, judging from our past history and from all that has been 
 shadowed forth in your dispatches, I infer that our government will be 
 opposed to such intervention, and I shall act accordingly until I receive 
 instructions to the contrary, and shall protest against it if it be at- 
 tempted to be carried out here before I receive such instructions. 
 
 I regret that I am not able to telegraph you from here. 
 
 I would certainly attempt to do so from Panama, if I had been fur- 
 nished with a key, and may yet before the mail leaves, send by letter a 
 dispatch to our consul at Panama, to be forwarded by him, if it can be 
 done, to be paid for by you. 
 
426 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 But I hesitate, especially as your dispatches show a desire to avoid 
 such extraordinary expenses, except in cases of clear necessity. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 No. 291. 
 
 Mr. Evarts to Mr. Garcia. 
 
 Department of State, 
 
 Washington, November 13, 1880. 
 
 Sie : I have the honor to acknowledge the receipt of your note of 
 the 25th ultimo, expressing the appreciation which must be felt by 
 Peru of the proffer made of the good offices of this government in the 
 direction of securing peace between that republic and the Government 
 of Chili, and at the same time an apprehension that this movement 
 might not reach the desired result. 
 
 In reply, I regret to observe that, although the proposition of the 
 United States was held acceptable by all the belligerents, it seems to 
 have been thus far fruitless ; and this government awaits with interest 
 information of the course of the conference held in pursuance of the 
 benevolent wishes of the United States, and of the reasons of its fail- 
 ure. 
 
 Notwithstanding the miscarriage of the impartial and humane efforts 
 of this government in the interests of a pacification (which it cannot 
 regard but with chagrin as well as regret), the United States will wel- 
 come any further opportunity it may have to promote, by any proper 
 means, the restoration of peace. 
 
 I profit by this occasion, &c, 
 
 war. M. EVAETS. 
 
 No. 292. 
 
 Mr. Evarts to Mr. Gliristktncy. 
 
 No. 109.] Department of State, 
 
 Washington, Xovember 27, 1880. 
 Sir : I subjoin the text of a telegram which was sent to Mr. Osborn, 
 envoy extraordinary and minister plenipotentiary of the United States 
 at Santiago, by this Department on the 19th instant : 
 
 You are authorized to unite with your colleagues in pressing upon Chili the adop- 
 tion of the measures agreed upon in a diplomatic conference at Lima for securing the 
 lives and property of neutrals when Lima is attacked. This authority is to be used 
 only in case these measures are approved by Christiancy and yourself as within neu- 
 tral 'policy and this concurrent representation seems to you useful. You are also 
 authorized to join in askiDg a direct answer from Chili, if in your judgment the re- 
 quirement is justified by the situation. Telegraph your action. 
 
 I am, sir, &c, 
 
 WM. M. EYAETS. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 42 T 
 
 No. 293. 
 Mr. Garcia to Mr. Evarts. 
 [Translation.] 
 
 Legation op Peru in the United States, 
 New York, November 27, 1880. (Received November 29.) 
 To His Excellency the Secretary op State : 
 
 Sir : I have the honor to inform your excellency that I received the- 
 official telegram, a copy of which is herewith inclosed, on the 25th in- 
 stant, from Panama. As it merely confirms what was already known 
 to your excellency, as appears from your esteemed communication of 
 the 13th instant, which was duly received by me, it did not seem to me 
 necessary to transmit this information to you sooner. 
 
 I am, as ever, your excellency's faithful and obedient servant, 
 
 IGNO. GARCIA. 
 
 (Copy.) 
 
 To the ChargiS d'affaires of Peru : 
 
 This information is sent by snpreme order. Belligerents accepted American media- 
 tion. Plenipotentiaries began conference. It proved a total failure. Chili demanded 
 cession of territory, which Peru rejected. 
 
 LAERANAGA 
 
 No. 294. 
 
 Mr. Evarts to Mr. Garcia. 
 
 Department of State, 
 
 Washington, December 1, 1880. 
 Sir : I have the honor to acknowledge the receipt of your note of the 
 27th ultimo, and of the copy of the telegram received by you on the 
 25th, announcing the failure of the negotiations toward peace, which 
 had been entered upon by Peru and Chili. 
 
 Again expressing the great regret felt by this government at the 
 apparently unfortunate result of the efforts for peace which had com- 
 mended themselves to the good judgment of other nations, I beg to re- 
 new to you, sir, the assurances of my high consideration. 
 
 WM. M. EVARTS. 
 
 No. 295. 
 Mr. Evarts to Mr. Christiancy. 
 
 No. 112.] Department of State, 
 
 Washington, December 13, 18S0. 
 
 Sir : I have to acknowledge the receipt of your No. 200, of the 2d 
 ultimo, and of the protocols of the conferences of the plenipotentiaries 
 of Peru, Bolivia, and Chili, held at Arica, from the 22d to the 27th Oc- 
 
 tober last, under the mediation of the United States. 
 
428 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 This government cannot cease to entertain the most serious regret 
 that its efforts in the direction of securing peace between the belliger- 
 ents have met with so little apparent success thus far, but it still stands 
 ready to render its assistance to that end in every proper way. 
 I am, iSrc, 
 
 WM. M. EVAETS. 
 
 No. 296. 
 
 Mr. Garcia to Mr. Hearts, 
 
 [Translation.] 
 
 Legation of Peru in the United States, 
 New York, December 18, 1880. (Received December 21.) 
 Sir : I have the honor to transmit to you a copy of the circular which 
 the secretary of foreign relations of Peru has addressed, under date of 
 5th November, ultimo, to the diplomatic agents of my country abroad. 
 I would have desired to go in person to fulfill the gratifying duty of 
 reading the document in question to your excellency, as therein pre- 
 scribed, but a serious illness prevents me. 
 I improve, &c. 
 
 IGXO. GARClA. 
 
 [Inclosure — Translation.*] 
 CIRCULAR. 
 
 To the diplomatic agents of Peru. 
 
 Office of the Secretary of Foreign Relations axd Worship, 
 
 Lima, Xovemier 5, 1880. 
 
 The mediation offered by the United States of North America in order to put an 
 end to the war in the Pacific, and accepted by the allies with the greatest sincerity 
 and self-denial, has failed in consequence of the absurd pretensions of Chili, who has 
 likewise refused the arbitration proposed in the conferences of Arica, because, as she 
 does not seek justice, neither does she desire an impartial judge. 
 
 We have gone as far as dignity and honor permit us, endeavoring to forget our jnst 
 indignation aud the anger which Chilian vandalism has excited in the breast of the 
 people. The noise of arms, which has not ceased, even when the enemy affected to 
 enter upon the paths of conciliation, will therefore continue. 
 
 All that is inhuman, disastrous, and abominable in the present struggle, and what- 
 ever may occur until its end, will be exclusively chargeable to Chili, who has allowed 
 herself to be carried away by the most ignoble and degrading passions, which cannot 
 be satisfied but by the complete extermination of her adversaries, which she considers 
 easy in the midst of her madness caused by the innocent blood she had shed, and her 
 depredations and iniquities. She accepted the mediation with the deliberate intention 
 of making it useless if Pern accepted it, reserving to herself the placing of insurmount- 
 able difficulties in the way of an agreement. 
 
 . Thus is explained that, at the same time that she agreed to such a measure of friendly 
 reconciliation, she brought ruin and devastation to the undefended departments of 
 the coast of the north, destroying in a moment valuable property , the result of industry , 
 and the disappearance of which is prejudicial to commerce. 
 
 Thus is explained her tenacious obstinacy in fixing on the port of Arica, a place 
 under the pressnre of her arms, for the holding of the conferences. She endeavored to 
 irritate our susceptibility in order to leave to us, at least in appearance, the responsi- 
 bility of refusing to enter into the conferences for peace. 
 
 Thus is explained how, in the first of them, her plenipotentiaries presented, as unalter- 
 able, conditions the acceptance of which would have been an ignominious suicide. 
 
 *This translation is taken froui the South Pacific Times of November 12, 1880. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 429 
 
 Peru, after having deferred to everything which was merely fortuitous, and controll- 
 ing the fiery impetus of her pride, which, on the other hand, she satisfied by ordering 
 her plenipotentiaries not to stipulate, except in the last case, the cessation of hostili- 
 ties during the conferences, assumed in these the noble attitude she has maintained 
 since the commencement of the war, and which she will not deviate from to its end. 
 
 The law of honor, and only that, prescribed to her the taking part, unarmed, in the 
 struggle, and she fetls quite sure of concluding it with honor and glory. 
 
 Here it is as well to record briefly the conduct observed by Chili since the commence- 
 ment of the war, always the same in her uncontrollable employment of double dealing 
 and treachery. 
 
 After obtaining immense advantages in the two treaties of 1866 and 1874, respecting 
 boundaries with the neighboriDgRepublic of Bolivia, unsatisfied and restless then, and 
 every day still more so, at not having pushed her frontiers to the point her covetous- 
 ness longed for, she waited the first opportunity and sought the first pretext which 
 might present itself to revindicate, according to the language employed by her on the 
 occasion, the rich territories which international faith had guaranteed definitively to 
 our ally. 
 
 We feel ashamed at having to present to the world the occasion which Chili found 
 propitious for the realization of her unlawful design ; such was the tax of ten cents, 
 sanctioned by the Congress of Bolivia, on the " Compafiia de Salitre y Ferrocarriles 
 de Antofagasta," which then declared itself in a moat slcillful manner under the pro- 
 tection of Chili. 
 
 The diplomacy of this republic anticipated and hastened the proceedings of Chili ; 
 very soon afterwards a rupture of relations took place ; Chili spoke of arbitration as 
 to-day she does of mediation, and obtained, as she now wishes to do with respect to the 
 latter, that it should remain a chimera. Thus she pretended, according to the system 
 to which she is accustomed, to give a color of justice, first, to the sudden invasion of 
 Antofagasta, and afterwards to that of the whole Bolivian coast. 
 
 Peru, who prides herself on having initiated almost from the commencement of her 
 independent life, with the most exalted views, the real fraternity of the American re- 
 publics ; who has on different occasions assembled in her capital congresses for such an 
 important object ; who at this very moment has the pleasure to see in this city the 
 congress of jurists of her sister republics which endeavor to realize the beautiful ideal 
 of harmonizing the institutions of modern society ; Peru, leagued by a treaty of de- 
 fensive alliance with Bolivia, the secret of which for well-founded reasons was stipulated 
 in it, but which imposed on her a mission of peace in the disagreement between her 
 ally and Chili, went to Santiago animated with the most sincere wishes ; and it is 
 necessary to acknowledge that neither good-will nor the most assiduous solicitude was 
 wanting on the part of our representative in the fulfillment of his honorable mission. 
 
 The secret, merely official, of the alliance (because for statesmen in the three repub- 
 lics, with few exceptions, no such secret existed) served as a pretext to the Govern- 
 ment of" Chili for rejecting the mission of SelLor Lavalle, rendering useless the fraternal 
 purposes of Peru, precipitating the declaration of the casus fcederis, and immediately 
 afterwards darting upon our coast, commencing the series of shocking hostilities which 
 have continued since, each time with more fury, and which she proposes to crown 
 worthily without any other limit than the extent of her power to carry them out. 
 
 Chili, on turning her arms against Peru, who she knew could only defend herself 
 by her courage and her natural nobleness, was under the delusion that she could hu- 
 miliate and trample upon Peru without great efforts or sacrifices. 
 
 Desperate and frantic at being undeceived, she carried to a greater extent than was 
 conceivable, even to those acquainted with that nation, her barbarous hostilities. 
 
 Nothing has sufficed to stay the hands of our ruthless enemies. Neither the unde- 
 fended state of the towns, nor the innocence of the victims, nor the chastity of the 
 women, nor the weakness of infancy, nor the veneration due to old age, nor unfor- 
 tunate courage, nor the convulsions of agony, nor the sacred character of neutrality, 
 nor the even more sacred character of the ambulances in which the wounded have 
 been assassinated without pity, nor the sanctity of the temples, in fact no respect, 
 divine or human, not even that due to her own honor, has been sufficiently powerful 
 to make Chili return to the bosom of Christian civilization, in which, after what has 
 been referred to, it is licit to doubt whether she ever really was, notwithstanding her 
 ridiculous vanity and much talked of progress. 
 
 Full of hatred and envy against Peru, whose superiority cannot be unacknowledged 
 without blotting out history and stifling the voice of a fame which has become a uni- 
 versal proverb ; drunken with .blood and devoured by thirst for our fabulous riches, 
 Chili proclaims an attack upon this capital which she considers as the last bulwark of 
 defense of Peru. For this reason she has not hesitated to reject, openly, the arbitra- 
 tion proposed by our plenipotentiaries at Arica, who designated at the same time as 
 judge the great republic of the north, which had the highest title in every respect to 
 fulfill such a noble and humane duty. Chili would not admit it, under the frivolous 
 pretext that the time for arbitration had passed, as if at any moment the intervention 
 
430 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 of wisdom and justice should not be welcome in order to put an end to a straggle 
 which is a disgrace, not only to America but to Europe, and when only a Bhort time 
 ago, the 3d of September last, she has made a treaty with the United States of Co- 
 lombia in which it is stipulated that all differences between both republics are to be 
 Bettled by arbitration, and when Peru has been asked to adhere to said treaty by an 
 invitation received by our government only by the last steamer. 
 
 Peru is, therefore, for Chili a hateful exception in treating of peace. Be it so ! Let 
 her come, not as she imagines, to end, but to begin the war. The generous blood 
 which Peru has shed in torrents will become fruitful. The entirely disinterested wor- 
 ship which she pays to honor, without being terrified by the sacrifice of all her other 
 treasures, which she considers as secondary, will give to her arms the reward they 
 deserve. Her heroes of to-day will repeat the actions of those of yesterday, and the 
 crown of a final triumph, so much the more splendid as it will have been costly, will 
 bind her proud and immaculate brow. 
 
 This is the faith of the government of his excellency the supreme chief, to whom 
 the republic, on constituting him arbiter of her destiny, charged him, above all, with 
 the triumph of the national arms. He will omit nothing to attain this object, and he 
 confides in attaining it as the judgment of God in the duel to the death which has be- 
 come inevitable, owing to the want of reason and the insolence of our enemy. 
 
 You will be pleased to read this dispatch to the minister for foreign affairs, and leave 
 him a copy should he desire it. 
 
 May God preserve you many years. 
 
 PEDRO JOSE CALDEEON. 
 
 Xo. 297. 
 
 Mr. Hay to Mr. Garcia. 
 
 Department of State, 
 
 Washington, December 22, 1880. 
 Sir : I have the honor to acknowledge the receipt of your note of the 
 18th instant, transmitting, for the information of this government, a 
 copy of the diplomatic circular sent on the 5th ultimo by the secretary 
 of foreign relatious of Peru to the diplomatic agents of that country 
 abroad. Regretting that your illness should have deprived me of the 
 pleasure of receiving your personal communication of this circular, I 
 avail myself, &c, 
 
 JOHX HAT, 
 Acting Secretary. 
 
 Xo. 298. 
 Mr. Ghristiancy to Mr. Dvarts. 
 
 No. 226.] Legation of the United States, 
 
 Lima, Peru, December 31, 1880. (Received February 5, 1881.) 
 
 Sie : I have the honor to acknowledge the receipt of your dispatch 
 No. 109 (108 not yet arrived), containing the copy of your telegram to 
 Mr. Osborn of the 19th November. 
 
 But for your letter I should never have heard of your telegram, as I 
 have not had one word from Mr. Osborn since I left" him at Arica, until 
 December 21 (the day after 1 received your dispatch), when I received 
 his letter of December 3, written two weeks after your telegram to him. 
 And even this letter, of which I send you a copy, says nothing of the 
 telegram. 
 
 I cannot say that I am at all surprised at this, whether he had re- 
 ceived the telegram or not. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 431 
 
 You will notice that his letter does not show that Chili has agreed 
 to all the " measures agreed upon in diplomatic conference at Lima," 
 and that it is quite general and rather indefinite. And it was there- 
 fore quite essential that I should know the contents of your telegram 
 which he could have telegraphed to Arica, whence I could have had it 
 by mail long before his letter of the 3d instant was written — not to say 
 received. 
 
 The charitable conclusion perhaps ought to be either that he had 
 not received your telegram or that he had sent me a copy which did 
 not reach me. But I must confess to some doubt of the truth of this 
 charitable inference. 
 
 I inclose you a copy of my letter of December 14, 1880, which will 
 speak for itself. It touches only those false reports of the Chilian press 
 which had then come to my ears. Since then 1 have learned that the 
 Chilian press has gone much further in its attacks upon me, some arti- 
 cles charging me with having gone to Chili only for my health, and 
 that I had no idea of being able to bring about peace by mediation ; 
 when I went down afterwards in October, other articles do not scruple 
 to charge me with acting as a Peruvian spy, all such articles, of course, 
 assuming that I had no authority for saying to Colonel Lynch or the 
 Peruvian Government that Chili had accepted the mediation of the 
 United States, and at the time I said so to each of them. 
 
 Sow, the truth of what took place at Santiago when I was there, 
 from 27th to 31st August last, is fully stated in my dispatch No. 191 
 (and my confidential dispatch of the previous day shows the reason 
 why 1 went there). 
 
 The truth of the fact stated by me, that Chili had accepted the media- 
 tion of the United States as early as August 30, at least, can be shown 
 by a mass of evidence in my hands, which is simply overwhelming. Mr. 
 Osborn's own letters and telegrams to me and memorandum drawn by 
 himself and his letters to Mr. Adams among others; and inferentially 
 also by the letters (copies of which I have) of the secretary of state of 
 Chili to General Baquedano and to Admiral Riveros (both of which I de- 
 livered personally), and, I presume by what Mr. Osborn must have writ- 
 ten to the Department. And these will show that Chili had accepted 
 our mediation (not our " good offices " merely, nor to use the language of 
 his note to that government of the 6th October, while I was in Arica 
 awaiting him by his own appointment, our "mediation in the form of 
 good offices," which, to me, conveys no definite or intelligible idea, and 
 when after seeing his note in a Chilian paper while at Arica, I asked 
 him if Chili had not accepted our good offices in the form of mediation, 
 he replied, yes; and I was quite unable to make him comprehend that 
 there was any difference between the two propositions, the consequence 
 of all.which was that by his action Chili, which had accepted our me- 
 diation as early as the 30th August, on the strength of which 1 procured 
 the acceptance by Peru of our mediation on the 14th September, was 
 allowed to place herself before the world as having accepted only our 
 " good offices," and that only on the 7th October, and the further con- 
 sequence was to place me before the world as a deliberate liar). 
 
 I have not yet had time, and have not now, to make copies of all the 
 papers showing the details which led to and accompanied the conference 
 at Arica; in fact 1 have doubted whether the Department would wish 
 to lumber up its files with them, but 1 will send them if desired. I am now 
 constantly employed in providing for the protection of American, Swiss, 
 and Colombian citizens (the Chilian forces being within 10 miles of 
 Lima and the final battle expected every moment). 
 
432 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Xow. one of the principal reasons for the bitterness of the Chilian 
 press again t me is, no doubt, the action of S. C. Moutjoy in assuring- 
 Colonel Lynch that I was acting fraudulently. (See my letter to Mont- 
 joy. Dispatch 215, Xo. ^\j). But the principal ground for these attacks 
 of the Chilian press originated, as I am satined, from the too easy com- 
 pliance of my colleague in Chili with the wishes of the Chilian Govern- 
 ment, and his desire to enable that government to meet the bitter oppo- 
 sition of the war party in Chili. The case, as explained to me by Mr. 
 Osborn himself, at Arica, was just this. Immediately after I had left 
 Chili (August 31), the opposition or war party charged the government 
 with having, through me, taken some steps for peace; the government 
 were put on the defensive; and Mr. Hunaeus, a senator (who had been 
 employed by the President to communicate with me in the first in- 
 stance), being interrogated in the senate in reference to this, denied 
 everything of the kind, and declared that I had come there only to see 
 my colleague, Mr. Osborn ; and the whole idea of negotiating with Pern 
 and Bolivia was kept a secret troiu the Chilian people until after I 
 arrived at Arica, October 6. While I was at Arica, my letter to Colo- 
 nel Lynch, or its contents, had been sent to General Baquedano and 
 thence to the Chilian Government, and Mr. Osborn during the confer- 
 ences, having learned the fact, undertook to make me believe that I had 
 gone too far in stating to Colonel Lynch that I had had a conference 
 with the Chilian Government and that that government had accepted 
 our mediation, &c. We differed upon that point as we differ now. 
 
 Xow, while his action has tended to strengthen in Chili the belief of 
 my falsehood and evil designs, and to place me before the public in 
 Chili in the worst light, I do' not charge him with that particular de- 
 sign, nor am I willing to believe that he was actuated by any malice 
 towards me; but I do think his inordinate desire to sustain the govern- 
 ment against the attacks of their opponents has had all the bad effects 
 upon me that it could have had if such had been his feelings and in- 
 tentions. I cannot and willnot enter ii it< > newspaper controversy, though 
 the consequence of the action of Montjoy and my colleague may be to 
 render all my efforts for the protection of American. Swiss, and Colom- 
 bian citizens abortive, and even to endanger myself in case Lima should 
 be taken by storm. Yet I propose to stand by the truth and depend 
 upon the moral protection of our flag, trusting that time will bring my 
 vindication . 
 
 I have, &c. 
 
 I. P. CHRISTIAXCY. 
 
 [Inclostre 1 in "No. 226.) 
 
 J/c. Oslorn to -V)'. Christianity. 
 
 Legation op the Uxited States. 
 
 Santiago, Chili, Decembei- 3, le~i', 
 Sik : I have been formally assured by this government of its desire to protect the 
 lives and property of neutrals in Lima and Callao, if those places should be attacked 
 by the Chilian army. To that end the comrranding general of the army has been 
 directed to consult with the dean of the diplomatic corps in Lima, and to adopt his 
 suggestions in so far as they may not tend to embarrass the legitimate operations of the 
 army in its movements against the enemy. 
 Very respectfully, &c., 
 
 THOMAS A. OSBORN. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 433 
 
 [Inclosure 2 in No. 226. ] 
 
 Mr. Christiancy to Mr. Osborn. 
 
 Legation of the United States, ■ 
 Lima, Peru, December 14, 1881. 
 
 Siii: You have probably seeu by the (Chilian papers that I have been accused — ist, 
 of falsely stating, when I wrote to Colonel Lynch, September 13, that Chili had ac- 
 cepted the mediation of the United States, and that I had had an interview with the 
 Chilian Government, &c. I bave no apology to make for either of the above state- 
 ments ; for both are true in substance and effect, and neither calculated or intended to 
 deceive Colonel Lynch. 
 
 It is true that I, as minister to Peru, could not act officially in Chili; but it is equally 
 true that the President of that government, together with his secretary of foreign re- 
 lations; could (and did) act officially at Santiago, and that you also could act officially 
 at the interview we both had with the President and secretary of foreign relations, 
 when we went together to the palace and had that interview, and when the President 
 and secretary — in answer to my statement that it did not yet appear that the media- 
 tion of the United States could have any effect until it was known whether the propo- 
 sitions made by or through the Italian and French ministers should he accepted — re- 
 plied that they had already accepted the mediation of the United States and should 
 not withdraw it, of which you had previously informed me ; and you knew and I knew, 
 and the President and secretary for foreign relations of Chili (who are in effect the 
 government as to foreign relations) knew that that declaration was made to me as the 
 basis upon which I was to ascertain whether Peru would accept the mediation of the 
 United States and enter upon the negotiations, as you had proposed. And the note 
 written by yourself as to the action we were to take shows beyond the slightest doubt 
 that such was your understanding, and your own letters, before and since, show the 
 same. I have, therefore, no apology to make for my letter to Colonel Lynch, above 
 referred to. It was true in substance and effect, as you know and the President and 
 secretary of foreign relations of Peru know, as I know and as God knows. When writ- 
 ing to Lynch I was looking to the substance and effect of things, and I stated them 
 truly. I was not seeking to " divide a hair north or northwest side." Those who claim 
 merit for feats of the latter kind are welcome to all the glory they can secure, and I 
 willingly surrender the whole of that field of controversy to them, having myself no 
 ambition in that direction. 
 
 My letter to Colonel Lynch was, therefore, entirely true in substance and effect, and 
 any statement which may be got up by the aid of logical necromancy to show the con- 
 trary , from whatever source it may come, is false in sutstance and effect. Never was a letter 
 written in more perfect good faith than mine to Colonel Lynch, and I am still of the 
 opinion that but for the opposition party in Chili, which drove the government from 
 its honest purpose of securing peace upon fair and honorable terms, that letter would 
 have been approved by the Chilian Government itself. That opposition, which drove 
 the government from its first purpose, together with the exasperation caused by the 
 Lynch raid, were the two main causes which rendered all efforts for peace utterly futile. 
 That opposition drove the Chilian Government to make their propositions for peace in 
 the most exorbitant and repulsive form, while the exasperation on the other side made 
 Peru more averse to any terms. This is the truth of history, and you and I know it. 
 I do not propose that any other view shall pass for history without my protest. 
 
 Now, in reference to the charge or insinuation, made by Colonel Lynch, that I had 
 undertaken to deceive him by writing to him, that the estates " Chiclin " and " Hacienda 
 Arriba," in the valley of Chicama were the property of John W. Grace, an American 
 citizen, I have to reply that this charge or insinuation is false, and my letter to him 
 was true, as I believe, in every particular. His charge rests wholly upon information 
 given hiin by individuals who did not speak from the title papers, and who were inter- 
 ested in compelling the payment of a contribution upon this property, for the purpose 
 of lessening their own contributions, and upon the false and, as I believe, the interested 
 assertions of S. C. Montjoy, United States consul at Lambayeque, who was the author 
 of the protest, made by Americans in Peru last March, against the mode in which 
 Chili carried on the war, the authorship of which was falsely charged against Charles 
 S. Rand, esq., when I was in Santiago, last August. 
 
 When I wrote to Colonel Lynch, I spoke from the title papers which I had seen and 
 which are filed in this office. The title, as I understand, was the whole and absolute 
 title that was conveyed to Mr. Grace on the 4 th of August last. And I took the pre- 
 caution, as in other cases, to take the affidavit of Mr. Grace of the fact of his ownership, 
 in addition to the title papers, and upon these I relied in good faith, and still believe 
 that the title was, and still is, in Mr. Grace, as stated by me in my letter to Lynch. 
 
 But I will do Mr. Lynch the credit to say that, from information which I have re- 
 ceived, and which is now in writing in this legation, I am inclined to believe that, 
 
 S. Ex. 79 28 
 
434 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 but for the false information given him by Montjoy, and by other owners of property, 
 as aforesaid, he was disposed to exempt and would have exempted the property as that 
 of an American citizen. 
 . I have, &c, 
 
 I. P. CHRIST1ANCY. 
 
 No. 299. 
 Mr. Christiancy to Mr. Evarts. 
 
 Xo. 230.] Legation of the United States, 
 
 Lima, Peru, January 22, 1881. (Received February 15.) 
 
 Sir : Lima was quietly surrendered to the Chilian forces on the 17th 
 instant. I wished and intended to have given yoii a detailed account 
 of the events and causes which have led to this result. But on the 
 15th instant, at 2 o'clock p. m., I went with the whole diplomatic corps 
 to Miraflores, some 5 miles (in a direct line) from Lima, to receive from 
 President Pierola his answer to the terms offered by the Chilian gen- 
 eral, Baquedano, through the committee of our diplomatic corps, on 
 the morning of that day (said committee consisting of Mr. Pinto, our 
 dean, and the French and English minister, who had that morning ar- 
 ranged an armistice to last until 12 o'clock that night for the purpose of 
 getting the answer of Pierola). We found Pierola and his staff at 
 breakfast in a large house at Miraflores, and were waiting for him to 
 come out, and some of his officers were just coming out from the table, 
 when a single heavy gun was heard, and in less than a miuute the bat- 
 tle opened along the whole lines, and. at a distance of but about 80 rods 
 south of us, the shot, even from the small-arms, pattering thick and 
 fast upon the buildings around us, and the air being filled with flying 
 shells exploding all around us. It is not yet fully known who fired the 
 first gun, but it is, 1 think, quite evident that both the Chilian com- 
 mander and Pierola were equally taken by surprise, and the probability 
 is that it was the unauthorized act of some subaltern officer. 
 
 The diplomatic corps fled to the rear towards Lima for their lives, 
 aud got somewhat scattered, some of them reaching the railroad train 
 (which had taken us out), some distance to the north of the train, and 
 some, like myself, endeavoring to strike the railroad ahead of the train, 
 but being cut off by walls and ditches, were compelled to walk a devious 
 course back to Lima. I was one of the latter unfortunate class, was 
 under the shells of the Chilian fleet and army, falling thick around me, 
 for two hours before I could get out of range, climbing smooth perpen- 
 dicular walls between fields and around chacras and old buildings, 
 wading water courses, aud traveling some 8 miles to get 4 miles ahead, 
 until my muscular powers were thoroughly exhausted — finding on my 
 return some 600 to 700 refugees — women and children in the legation, 
 who had sought asylum there, and before 9 o'clock at night over 1,200, 
 which increased next day and night to over 1,500 of all nationalities, 
 and all this while more than half the time I was unable to stand upon 
 my feet from the fatigue. 
 
 I have just got rid of the refugees, but the strain upon my muscular 
 powers has been such that even yet I cannot walk or stand for half the 
 time, and yet I am constantly besieged with complaints from Ameri- 
 cans, Swiss, and Colombians against depredations upon their persons 
 or property from the Chilian soldiery, which I endeavor to get re- 
 dressed as well as 1 can. I am therefore in no condition to give you a 
 detailed statement of events at present, but shall do so as soon as I 
 can. 
 
435 
 
 I will only say here that, from all the reports I hear from every quar- 
 ter, the Chilians killed all the Peruvian wounded they found upon the 
 field. They deliberately burned Chorrillas, after all necessity for such 
 outrages had ended. They did the same to Barranca and Miraflores ; 
 and since all the fighting has been over they have burned sugar planta- 
 tions with standing cane upon them. They have robbed, as I am in- 
 formed, some haciendas belonging to Colombian citizens, under the 
 protection of this legation, and I fear, also, some belonging to Ameri- 
 cans, most of which is doubtless due to the special pains taken by Mr. 
 Montjoy to cause the Chilian officers to believe that I was acting in bad 
 faith towards them; and some of it, from the inordinate desire of my 
 colleague in Chili to make himself popular with the government there 
 by assenting and giving currency to the false and vindictive attacks of 
 the Chilian press against me, as I know the basest and most vindictive 
 attacks of their press come from an intimate and familiar friend of my 
 colleague. 
 
 The Chilians have, as yet, behaved remarkably well in Lima, and 
 thus far respected their promise to protect life and property; and I 
 roust do their officers the justice to say, I think they intend to enforce 
 order in the city and to treat the inhabitants kindly. 
 
 Pierola, who constitutes the only recognized government of Peru, 
 was last heard of at Canta, some fifty miles northeast of Lima. He is 
 at present supposed to intend to arouse the interior to arms. But he 
 has no money or arms, and, I think, would have acted more wisely if 
 he had remained here. The Chilians, I feel quite sure, -would have 
 treated him kindly, and recognized him as the only government with 
 which they could treat for peace. I think they would be glad to have 
 him return for that purpose. I am quite unable to write you further 
 to-day, as I am scarcely able to be out of bed. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 300. 
 
 Mr. JEvarts to Mr. Ohristiancy . 
 
 No. 119.] Department of State, 
 
 Washington, January 25, 1881. 
 
 Sib : I regret that a report which has been communicated to the De- 
 partment obliges me to request that you will make a strong represen- 
 tation in the premises to the Peruvian Government, should you find on 
 inquiry that the report is well founded. This report is that the Peru- 
 vians have made use, during the present war with Chili, of "boats con- 
 taining explosive materials" which have "in some instances been sent 
 adrift on the chance of their being fallen in with by some of the Chilian 
 blockading squadron." How far the case of the launch to which you 
 refer in your No. 183, which was loaded with concealed dynamite, comes 
 within the description of cases mentioned, the Department has not the 
 requisite data to determine. 
 
 It is • sufficiently obvious that this practice must be fraught with 
 danger to neutral vessels entitled to protection under the law of nations, 
 and that in case American vessels are injured thereby, this government 
 can do no less than hold the Government of Peru responsible for any 
 damage which may be thus occasioned. 
 
436 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 There is no disposition on the part of this government to act in any- 
 wise nor in any spirit which may be construed as unnecessarily critical 
 of the methods whereby Peru seeks to protect her life or territory 
 against any enemy whatsoever; but it will appear, I think, to the high 
 sense of propriety which has in times past distinguished the councils 
 of the Peruvian Government, and which without doubt still abides 
 therein, that in case it is ascertained that means and ways so dangerous 
 to neutrals and those adverted to have been for any reason suffered to 
 be adopted by her forces, or any part of them, they should be at once 
 checked, not only for the benefit of Peru, but in the interest of a wise 
 and chivalrous warfare, which should constantly afford to neutral 
 powers the highest possible consideration. 
 
 It is understood that the British minister at Lima may be instructed 
 to make like representations on the part of his government. 
 I am, sir, &c, 
 
 W3I. M. EVAKTS. 
 
 Ko. 301. 
 
 Mr. Christiancy to Mr. E carts. 
 
 Xo. 237.] Legation of the Uxited States, 
 
 Lima, Peru, February 2, 1881. (Eeceived March 2.) 
 
 Sir : I had intended before this time to have sent you a connected 
 and intelligible account of the military operations which culminated in 
 the taking of Lima by the military forces of Chili, and of the corre- 
 spondence of the diplomatic corps, first with the Government of Chili 
 (through their colleagues in Santiago), and second, with the general-in- 
 chief of the Chilian forces prior to the battles of the 13th and loth 
 ultimo, but several causes have prevented me thus far from performing 
 this duty. 
 
 1st. I have been ill most of the time since the battle of Miraflores, on 
 the loth ultimo, in which I was caught and from which I made my 
 brilliant advance upon Lima, and have been in the hands of a physi- 
 cian until to-day. 
 
 2d. I have not been able to get from the dean of the diplomatic corps 
 (Mr. Pinto, from Salvador) copies of the diplomatic correspondence above 
 referred to. My clerk has just got the originals and is making copies 
 and translations. 
 
 3d. A part of the documents to which I wished to refer (with many 
 other papers relating to the war, and the conferences at Arica, which 
 might be necessary to refer to in future correspondence) was sent to 
 the Lackawanna for safe-keeping, until it should be known whether 
 Lima was to be sacked and burned; and this vessel left Callao a week 
 ago for Chimbote, and has not yet returned. 
 
 I must, therefore, confine myself to the briefest possible explana- 
 tion and the most pressing exigencies of the present situation. Lima, 
 through its alcalde (mayor) representing the municipal government, 
 having on the 16th ultimo surrendered at discretion, on the promise of 
 protection to life and property, on condition that their entry should not 
 be opposed and that they should not be fired upon. There was great 
 danger that this last condition would not be complied with and but for 
 the Urban Guard, composed entirely of neutrals (who, at the invita- 
 tion of the Peruvian Government had for eight or ten days before the 
 
437 
 
 first battle protected the city from disorder, but just before the first 
 battle had been discharged by the government, because they had inad- 
 vertently stopped one of the ministers of the government in the street 
 at night). On Sunday, the ICtli, the Peruvian army, having been beaten 
 the day before at Miraflores, was completely disbanded, and Lima was 
 filled with them, many of them still retaining their arms, all without or- 
 ganization or officers. They were all negroes, Indians, mulattoes, cholos, 
 and mixed bloods of the lowest order (as there had been no white men 
 in the ranks of the Peruvian army, except in the reserve, consisting of 
 white men from Lima and Callao). 
 
 These disbanded soldiers, who had been forced into the army against 
 their will and were now thrown upon the world as outcasts, who had 
 no place to go to, and no means of supplying themselves with food, and 
 were really suffering from hunger, deserved, as I thought, pity and sym- 
 pathy. But late in the afternoon (of the 16th) we began — I say " we," 
 for there were at that time in the legation and under my protection some 
 1,550 women and children — we began to hear tiring and cries of rage 
 aud of distress along the streets, as if pandemonium itself had suddenly 
 burst up, as with an earthquake shock, along all the streets in the city. 
 
 It was soon evident that a concerted and general, though disorderly 
 and riotous, attack was being made upon the poor inoffensive Chihese, 
 their shops and houses, where food was sold in small quantities; but 
 the attack was not confined to these, it extended to almost all the 
 pulperias, or small shops, where food and liquor were sold. 
 
 Immediate death by the rifle-shot was the penalty of resistance, and 
 the poor Chinese almost everywhere met the same penalty without 
 resistance. Louder and louder, as the night drew on, and louder and 
 more pervading, horrible, and bewildering as the night progressed, be- 
 came the mingled cries of vengeance and distress, and louder aud ever 
 increasing the roar of rifle-shots along the streets, until their continu- 
 ous roll resembled that of a regular battle. By 10 o'clock the flames 
 of burning buildings in various parts of the city began to illuminate 
 the skies, and still further to terrify the hearts of the already terrified 
 inhabitants with the prospect of a general conflagration. 
 
 Several large buildings were burned to the ground; but, thanks to 
 the mud or clay and reeds, which compose most of the buildings of 
 Lima, a fire can spread but slowly, and its spread was checked after 
 several valuable buildings had been burned, among them several large 
 and valuable Chinese stores along the principal streets. 
 
 It was a night, or rather a nightmare, of chaos and unutterable horrors, 
 a "triste noche" which defies all analysis or detail of description. But 
 towards the dawn it began to become evident that the demon of chaos 
 and disorder had" begun to lose his force; his powers were becoming 
 weak by sheer force of over- exertion; phrenzy had yielded to exhaus- 
 tion. The Peruvian citizens, however, whose soldiers these rioters had 
 been, were in no position to put them down, and though many of the 
 native citizens of Lima of the better class would have rejoiced to see the 
 reign of terror ended, they seemed utterly paralyzed, as these men were 
 .so lately their defenders. 
 
 It was now the dawn of day, and the Chilian forces were to enter at 
 2 o'clock p. m. If these disorderly elements were not subdued before 
 that time there was every reason to fear that some and probably many 
 of them, under the influence of liquor, would fire upon the Chilian 
 forces, and Lima would then be laid in ashes. 
 
 But at the terrible moment, when all seemed lost, before the morn- 
 ing sun rose over the Andes, a new star of hope made its appearance 
 
438 AFFAIRS IN CHILI, PERU, AXD BOLIVIA. 
 
 upon the horizon. Through all the chaotic horrors of the night an 
 element of order, guided by intelligence, had been doing its work, and 
 barbarism and brutality were destined to feel the force of civilization 
 and intelligence, with an intelligent purpose to enforce order. Though 
 comparatively few in number the Urban Guard through all the horrors 
 of the preceding night, had been organizing ; and with the dawn 
 of day quietly but resolutely took the streets " still as the breeze, but 
 dreadful as the storm." A few of them had pistols, others policemen's 
 clubs. As they came in contact with the armed rabble, often teii or 
 fifteen to their one, they demanded their arms and their surrender. If 
 any one refused this demand he was at once shot or knocked down and 
 killed. The rabble at once realized that here was a power they could 
 not resist. They threw down their arms and fled to their dens or hiding 
 places. A few of the Urban Guards and great numbers of the rioters 
 were killed. This process was still going on at 2 o'clock, p. m., on the 
 17th. The Chilian commander, learning this, waited for the entry of 
 his forces for some two hours more, by which time order was restored, 
 and all danger of firing upon his troops was over, when he sent in some 
 3,000 of his best disciplined men, who quietly entered without noise or 
 demonstration of any kind, and Lima was saved from destruction. [All 
 neutrals and many of the Peruvians felt a sense of relief upon the entry 
 of the Chilian forces, and as to neutrals, I think, they dread the depart- 
 ure of the Chilian forces as much as they dreaded their entrance ; as in 
 case of their departure the neutrals will be subjected to the prejudices, 
 the passions, and the hatred of the Peruvians of the lower orders.] 
 
 Since that time much of the rest of the army has marched quietly 
 through Lima and encamped outside. General Saavedra is the chief 
 civil governor of Lima under Chilian power, and seems to be doing all 
 in his power to preserve order. Still many horrible outrages have oc- 
 curred — rapes and murders — probably in spite of the utmost vigilance 
 of the governor, but which would not have happened from a civilized 
 soldiery. And if Chili chooses to employ savages as soldiers she must 
 be held responsible before the world for all such excesses as would not 
 have been committed by a civilized soldiery under proper discipline. 
 In the mean time the Chilian commanders are greatly embarrassed by 
 their victory, as they can find no Peruvian government with which they 
 can treat for peace. Pierola, at last advices, was at Tarma, still bent 
 upon pursuing the war, though he has no army, no arms, and no financial 
 resources, and if he insists upon continuing the war will ruin Peru with- 
 out benefitting himself. He is now, however, incbned to treat under 
 the mediation of the diplomatic corps. But the Chilian authorities, as 
 long ago as the 14th, before the battle of Miraflores, plainly declared to 
 our corps its determination to admit no mediation. And the diplo- 
 matic corj)s will not probably intervene against the will of Chili. 
 
 It is now 3 o'clock p. m., and at 5 or 6 p. m. I am expecting a diplo- 
 matic meeting to take into consideration a letter of Pierola. If he is 
 not disposed to treat for peace on reasonable terms, I think a provis- 
 ional government will be installed here, consisting of the municipal 
 authorities and the notables of the vicinity, by whom a treaty of peace 
 will be negotiated, subject to the approval of Congress, which in that 
 event will be convened at the earliest possible moment. 
 
 February 4, 1881. — Xothing new has occurred since writing the 
 above. 
 
 The neutrals here, who saved the city from destruction by putting 
 do^n the disbanded Peruvian soldiery, dread the hostility of the Peru- 
 
AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 439 
 
 vians when the moment comes for the evacuation of Lima by the Chilian 
 forces. 
 
 They fear that the "foreigners" will then be accused of having aided 
 the Chilians to take possession of Lima, and that the vengeance of the 
 lower classes, at least, will be directed against them for the very action 
 which saved the city from destruction. 
 
 In the mean time it is a most ominous fact that the general-in-chief of 
 the Chilian forces is constantly harping upon what he calls the treachery 
 of the Peruvians in opening the battle of Miraflores during the armistice 
 which had been agreed upon, and this for the purpose apparently of justi- 
 fying extreme measures of retaliation. The effort seems to be, on the 
 part of the Chilians, to fix upon Pi^rola the preconceived design of 
 violating the armistice, and in this view the Actualidad of the 31st 
 ultimo contains an article setting forth what purports to be a telegram 
 from a Mr. " Velazco" (some irresponsible person) to the prefect of Cal- 
 lao, stating, on the authority of a report by the Miraflores Railroad that 
 the Peruvians were about to attack, &c. (a copy of which telegram, and 
 the article in the paper, I inclose, with a translation). In reference to 
 this I wish to say, first, that I doubt the authenticity of any such tele- 
 gram. Ko Peruvian speaks of that railroad as the Miraflores Railroad, 
 but always as the Chorrillos Eailroad. Second, if the dispatch be gen- 
 uine, it only purports to be a report by the railroad,' for which the com- 
 mander of the Peruvian forces was in no way responsible ; and was 
 probably the natural inference of the reporter (whoever he was) from 
 the close and increasing proximity of the lines of the respective armies. 
 
 The whole diplomatic corps were witnesses to the utter surj>rise on the 
 part of Pie>ola and his staff at the opening of the battle, and all saw the 
 confusion, the surprise, &c, and "mounting in hot haste" of Pierola and 
 his staff at the sound of the guns. From all that can be learned, thus 
 far, the surprise was equally great on the part of General Baquedano 
 and his staff. But from the best information I can thus far obtain, it 
 would seem (that though Baquedano had reserved the right to com- 
 plete the movement of his forces already commenced), the Peruvian 
 forces did not understand that he was at liberty to move up into their 
 very faces, or into their lines, as this would be to make the armistice a 
 farce ; and I am inclined to believe that the movement of the Chilians 
 upon the Peruvian lines was such as to induce the latter to believe an 
 immediate attack was intended, and that thus provoked some Peru- 
 vians, without proper authority, fired the first gun. 
 
 But I will not undertake to decide so grave a question without further 
 evidence. One thing is, 1 think, entirely clear, that the great mass of 
 the Chilian soldiery came here under the belief that they should be 
 gratified by the*sacking and plunder of Lima, and that the general-in- 
 chief, who naturally seeks to retain the good will of his soldiery, may 
 feel a little cramped by the terms of surrender which he accorded at 
 the instance of neutrals, and may therefore not be strongly averse to 
 indulging the general understanding and wish of his soldiers upon any 
 pretext which might excuse it, seems to me not wholly improbable, 
 though I shall be slow to credit this until the event shall demonstrate 
 it. And I hope there may be nothing to afford even the pretext for 
 such indulgence. 
 I have, &c, 
 
 I. P. CHRISTJAXCY. 
 
44:0 AFFAIRS IX CHILT, PERU, AND BOLIVIA. 
 
 [Inclosuie in Mr. Cbriatiancy'e 237. — Translation.] 
 THE PERIIDY OF MIR-\FLORES. 
 
 Callao, January 31, 1861. 
 Editoi s La Actuhlidad : 
 
 In the account of the battle of Miraflores, given by you in No. 78 of your paper, yon 
 state ihat in the Chilian general stafl, at first, the rupture of hostility on the part of 
 Miratlores, the 15th instant, was attributed to the hastiness of some inexpert and ner- 
 vous Peruvian chief, but that aferwards light was thrown over the subject, and it was 
 discovered thai the responsibility of what occurred there rested on the Peruvian dic- 
 tator. Closing your article, you say that the part of the veil which shadowed over the 
 mysterious tragedy of Miraflores and which the hands of contemporaries did not raise, 
 will be raised by the hands of history. 
 
 My purpose, Mr. Editor, is to contribute for my part to that task of serious investi- 
 gation, communicating to you a document which fully confirms your assurance, and 
 discloses clearly the preconceived treacherous blow which cost so many valuable' lives 
 of the Chilian army, and covered with mourning the most respectable homes of the 
 Peruvian capital. That document is the following telegram sent from the palace to 
 the commander-in-chief of Callao, at 1 p. m., the loth instant, one hour before the firing 
 commenced. 
 
 [Te'egram from palace.] 
 
 '■ Mr. Prefect : From the railroad of Miraflores they communicate that irithin a few 
 moments the combat trill commence. T\e line formed, only wait orders to fire. Much enthu- 
 siasm. 
 
 " VELAZCO." 
 " A true coi>y : 
 
 "D. CAYJAZCO ALBANO, 
 
 " Sientary General. 
 
 "Yours, &c, 
 
 (Signed thus :) * 
 
 As it is seeu, at 1 p. m., the hour in which the armistice agreed upon the same morn- 
 ing was in all its vigor, and the conquerors of Chorillos were completely careless in 
 the Peruvian camp of Miraflores, one of the most treacherous attacks, and one of which 
 there is no record in history, was preparing, and the line formed only nailed orders to 
 tire on a credulous and confiding enemy. 
 
 As it is seen, an hour before the battle commenced, the army of the Peruvian dicta- 
 tor was ready to fire, and that violent breach of military agreement produced much 
 enthusiasm in the ranks of its infractors, instead of serious disquiet. 
 
 This is a shameful discovery for the authors of the scandal and specially mortifying 
 to South American soldiers, a discovery which we could leave aside, without commen- 
 tary, in the archives of human misery, should it not involve lessons, which the direc- 
 tors of the Chilian army should avail themselves of, and the dignity of foreign repre- 
 sentatives in Pern should not stand between. 
 
 The Chilian military authority will know, doubtless, what is to be hoped of the 
 word and loyalty of a chief who laid for his generous adversary the uameless ambus- 
 cade of Miraflores. 
 
 The foreign diplomatic corps for its part, remembering the compromising part which 
 they were obliged to perform in the conclusion of the armistice, and the audacious and 
 brutal farce of which its members were the object, making them go to Miraflores in 
 the moments in which, as it resulted in the telegram we publish to-day, the attack was 
 preparing, will no doubt assume a resolute attitude towards the government which used 
 towards them such unjustifiable proceedings. 
 
 The faith of the arrangements insolently violated and the stream of Chilian and Pe- 
 ruvian blood shed without object demand an exemplary punishment. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 441 
 
 No. 302. 
 
 Mr. Pierola to Mr. Garcia. 
 
 [Telegram.] 
 
 Jamaica, February 8, 1881. 
 After two desperate battles, we have evacuated Lima and Oallao, to 
 remove pretexts for outrages by the enemy. 
 
 The government has retreated to the interior, determined to resist to 
 the last extremity, but without refusing to treat upon bearable (toler- 
 able) bases. 
 
 Mr. Christiancy has no instructions. 
 
 Arbitration by foreign neutral powers would be the best and most 
 efficacious. 
 
 PIEROLA. 
 
 No. 303. 
 Mr. Evarts to Mr. Christiancy. 
 
 No. 123.] Department of State, 
 
 Washington, February 10, 1881. 
 Sir : I have this moment received from Mr. Garcia, the Peruvian 
 charge d'affaires in the United States, the following telegraphic dis- 
 patch, which came by the way of Jamaica: 
 
 After two desperate battles, we have evacuated Lima and Callao, to remove pretexts 
 for outrages by the enemy. i 
 
 The government has retieated to the interior, determined to resist to the last extrem- 
 ity, but without refusing to treat upon bearable (tolerable) bases. 
 
 Mr. Christiancy has no instructions. 
 
 Arbitration by foreign neutral powers would be the best and most efficacious. 
 
 b PIEROLA. 
 
 The Chilian minister iuforms ine to-day that' he has no information 
 whatever but the public announcement of the occupation of Lima. I am 
 also without any dispatch or telegram from yourself or Mr. Osborn, 
 giving me any information of the recent important results of the war, 
 such as have been publicly reported. Under these circumstances, and in 
 view of the telegram above quoted, I find it necessary to desire you to 
 press upon the Government of Peru, and on such Chilian authorities as 
 you may have access to, the earnest desire of this government to bring- 
 about a peace without unnecessary delay and upon reasonable and hon- 
 orable terms, compatible with the true welfare of all the belligerents, 
 and so as to be lasting. 
 
 You will urge the desire of this government with that pressure which 
 appears to you admissible under all the circumstances, and proper to 
 the gravity of the occasion. 
 I am, &c, 
 
 Wif. M. EVARTS. 
 
 Mo. 301. 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 210.1 Legation of the United States, 
 
 Lima, Peru, February 15, 1881. ( Received March 18.) 
 Sir : I have the honor to inclose to you the copy of a letter of October 
 5, 1880, written by Mr. Valdeirama, secretary of foreign relations, ot 
 
442 AFFAIRS IN CHILI, PERU, AXD BOLIVIA. 
 
 Chili, to the French minister at Santiago, in reference to the protection 
 of neutral property in the contemplated expedition upon Lima and Cal- 
 lao ; also a translation of the same. 
 
 Also a copy and translation of a letter of Mr. Pinto (minister of Salva- 
 dor), the dean of the diplomatic corps in Lima, to the general-in-chief 
 of the Chilian forces, dated December 28th last. 
 
 Also a letter of General Baqiieds.no, in reply to last above, dated De- 
 cember 30, 1880. 
 
 .Also a letter of January 1, 1881, front Mr, Pinto, the dean of our 
 diplomatic corps, to General Baquedano, in reply to his last above, 
 with translation. 
 
 Also a copy of a letter of General Baquedano in reply to the last 
 above, dated January 6, 1881, with a translation. 
 
 Also a copy of a letter from General Baquedano to the dean of the 
 diplomatic corps, dated Chorillos, loth January, at 11 p. m., with trans- 
 lation. 
 
 No. 2Tir (above) embodies the principles which I had the honor to sub- 
 mit to the diplomatic corps, on the day of its date, in the shape of a 
 simple declaration of principles adopted by the corps, and stated in a 
 slightly different form in the letter. 
 
 I have included all the above that you may have a full view of the 
 correspondence in reference to the transactions alluded to; but the 
 most important of all, in reference to the numerous claims likely to 
 be presented against Chili by American, Swiss, and Colombian citizens, 
 is the above No. ■ s ^ s . This was written to the French minister in Chili, 
 in answer to a letter of his, in behalf of all neutrals here ; and the an- 
 swer No. ^1^ applies equally to all. It was sent by the French minister 
 in Chili to his colleague here and presented to and read before our 
 diplomatic corps, as it was no doubt intended to be. 
 
 It will be seen it adopts the very plan of protecting neutral property 
 which had been already adopted by us, and this plan we continued, 
 not only in Lima, but in Chorillos, Miraflores, and everywhere else in 
 Peru ; and we trusted and believed that this plan would prove effectual, 
 and that the neutral property, having the placards with the certificates 
 and flag referred to, would be respected by the Chilian forces ; at least, 
 that such property would not be deliberately taken or destroyed with- 
 out military necessity. Of course we did not expect such protection 
 against the risks of battle, or those naturally incident to the taking of 
 a town by bombardment or storm, while any resistance was kept up in 
 such town. But, even in such cases, we did think we had a right to 
 rely upon the promise of the Chilian Government, that such property 
 should not be deliberately taken or destroyed, after all resistance and 
 all fighting had ceased, and especially one, two, or three days after, 
 when all necessity for its taking or destruction had ceased. 
 
 Now, it. clearly appears from the official report of General Baque- 
 dano, that all fighting, even in Chorillos, had ceased, and that his vic- 
 tory then was complete at - o'clock p. m. of the 13th January, (see 
 extract from that report, here inclosed, and referred to in the margin). 
 And yet that "the towns of Chorillos and Barranco, as a consequence 
 of their resistance, were destroyed and burned." Now, the fact, as I 
 am informed from all quarters, is, that there was no fighting at Bar- 
 ranco (a village intermediate between Chorillos and Miraflores), and 
 that no fire of any importance occurred until about ."> or 6 o'clock p. m. 
 in Chorillos; that at about the hour last mentioned, the most densely 
 built part of the town was deliberately set on fire by the soldiery, and 
 every living inhabitant in the town — of whom there were many who 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 443 
 
 had remained — having been killed, most of them were piled up in the 
 houses and burned with them. But a large portion of the best houses 
 in the town, many of them owned by neutrals (some American, some 
 Swiss, and, I think, some Colombian, among the rest), were deliber- 
 ately burned the next day, and some of them two days after, after 
 having been robbed of their furniture (most of it of the most costly 
 kind), which was sent on board the Chilian fleet, before the torches or 
 hand-grenades were applied to the houses ; and these very houses had 
 upon them the flags and placards agreed upon with the Chilian Gqv- 
 ernment. 
 
 And when I state what I am on all hands informed, is the fact, 
 though I do not personally know it, that the house sometimes occupied 
 by the minister of Brazil and that of the Brazilian consulate, were 
 spared (a fact which shows the alliance between Brazil and Chili, ex- 
 plainingthe reason why the Argentine Republic had been kept quiet dur- 
 ing this war), and that a guard was sent to protect the house sometimes 
 occupied by the French minister, who had a friend upon the Chilian 
 general's staff, it will be hard to resist the conviction that the burn- 
 ing of the rest of the town was deliberate, and after all necessity for 
 such destruction had ceased. . 
 
 As to Barranco, where there had been no fighting, the British minis- 
 ter, who went out with our dean and the French minister to see Gen- 
 eral Baquedano, on the morning of the 15th (two days after the first 
 battle and before the second) informed me that as he passed Barranco 
 the Chilian soldiers were engaged in deliberately burning the town. _^ 
 
 The same thing, as I am informed and believe, took place at Mira- 
 flores, inhabited largely by neutrals, among whom were several American 
 and Swiss, who had the proper flags and placards up. A part of the 
 town was burned the night after the battle of the afternoon of the 15th ; 
 but some of the best buildings one and two days after. 
 
 Now, it is precisely upon this ground that the robbery and destruc- 
 tion were deliberately committed, after all necessity or excuse for such 
 acts had ceased, that many claims have already been filed by Ameri- 
 can and Swiss citizens in this legation. These claims I have not yet 
 forwarded to Mr. Osborn in Chili, believing it best, first to submit, as 
 I now do to you, the substantial facts upon which all of them must 
 rest, and to take your instructions whether to send them first to your 
 • department, or to Mr. Osborn. 
 I have the honor, &c, 
 
 I. P. CHBISTIANCY. 
 
 [Inclosure No. 1 in No. £43 — Translation. J 
 Mr. Valderrama to the French minister to Chili. 
 
 Santiago, October 5, 1880. 
 
 Sir : After the conference which I had the honor to hold with your excellency yes- 
 terday, and during which your excellency signified to me the warm interest which you 
 feel that the Government of Chili should adopt efficacious measures to guard the per- 
 sons and interests of neutrals in the event that the proposed expedition of the Chilian 
 forces on Lima should be realized, I have been commissioned by his excellency the 
 President, to address a special note to the general-in-chief of the army of operations, 
 in order to satisfy, as far as possible, the wishes expressed by your excellency. In ful- 
 fillment of it, I address this day a note to the general-in-chief, in which I bring to his 
 knowledge : 
 
 lBt. That the government wishes that neutral persons and their interests be care- 
 fully respected during the military operations against Lima and Callao. 
 
444 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 2d. That in order to make such respect practicable, to hear the indications which 
 the honorable dean of the diplomatic corps may make, and to attend all those which 
 without embarrassing in any way the action of our forces may tend to guarantee neu- 
 tral persons and their property. 
 
 3d. I also tell him that yonr excellency has indicated to me, in order to haTe neutral 
 persons and their interests easily certified to, the former will hold a certificate of the 
 legation of which he is a citizen or subject, and the latter will have, besides the flag 
 of its nation, a placard, authorized by the seal and signature of the legation, fixed in 
 a visible place on the property. 
 
 The government feels confident that the geueral-in-chief will take special care jn 
 harmonizing the important interests of neutrals, with those corresponding to Chili, as 
 belligerent. 
 
 I improve this opportunity to reiterate to your excellency the sentiments of high 
 and distinguished consideration with which I am, &c, 
 
 MELGUIADES VALDERRAMA. 
 
 [Inclosure 2 in No. 240. — Translation.] 
 
 Mr Pinto to General Baquidano. 
 
 Legation of Salvador, 
 
 Lima, December 28, 1680. 
 
 Mr. General-in-Chief : The diplomatic corps accredited in Lima, anxious abont 
 the perils to which the important and valuable interests confided to their care may 
 be subjected, on account of the struggle which soon is to take place at the doors of the 
 city, has agreed that the undersigned, as the dean of the corps, would place himself in 
 immediate communication with your excellency, thus following also the indication 
 from the cabinet of Santiago, with the object of providingiu common accord the means 
 which may be adopted to diminish, as much as possible, the risks and perils to which 
 the foreign colonies may be exposed. 
 
 The attention of neutral governments has, for some time back, been directed to the 
 disentanglement of the present war, and to the possible eventualities which, in all 
 cases, may affect the conditions of its numerous citizens, and whose interests can be 
 reckoned at hundreds of millions. 
 
 With this motive, for the legitimate purpose of securing due protection to such 
 valuable interests, the governments which have legations established in Santiago pre- 
 scribed to those legations in advance to make such efforts with the Government of 
 Chili as may tend better to reach that end, and the security of our compatriots with- 
 out embarrassing the military action of the belligerents. 
 
 In accord with those precautions our colleagues at Santiago, after an understand- 
 ing with the Government of Chili, which gave its best attention to those observa- 
 tions, have solicited our indications as to the measures which, according to our 
 judgment, would be more efficacious for the object proposed. In consequence we have 
 drawn and forwarded to them the annexed scheme, a copy of which we inclose, which 
 has met the express and implicit approbation of all our governments. 
 
 The cabinet of Santiago, supposing that, perhaps, in certain cases, military opera- 
 tions would prevent the complete application of the measures proposed, has preferred 
 not to bind itself with, but to adopt definitely only a part of the project referred to, 
 promising, as to the other part of the same project, to send orders to the commander- 
 in-chief of the expedition with the view that said commander will have an under- 
 standing with the diplomatic corps, represented by its deau, in relation to those 
 measures which circumstances will permit to adopt for their most ample fulfillment. 
 
 I am now placed under the circumstances to propose to your excellency the com- 
 mencement of those relations of reciprocal intelligence, which place us in a relation 
 for me to fulfill the duties of my position under the present circumstances, and on the 
 part of your excellency to accomplish the orders of your government, being both able 
 to concur, through our agreement, to attenuate and lessen the horrors inherent to the 
 war, and recognizing, in that manner, the age of civilization which we now enjoy. 
 
 As far as it concerns us, we have endeavored that all foreigners be provided with a 
 certificate showing their nationality, allowing them to fix, in a visible place on their 
 domicile or house of commerce, a placard with their national colors, authorized by 
 their respective legations or consulate general. This placard and the national flag 
 which most of them will hoist will be sufficient proof. Besides we have established 
 certain private localities, which will be recognized by special signs and held by per- 
 sons duly authorized by us, which will be the deposits of goods of our respective citi- 
 zens, and asylums for their families, when these should feel themselves in better secu- 
 rity there. In order that your excellency may have a better judgment of this I an- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 445 
 
 nex to the present a plan of Lima, in which the legations, the asylums and deposits 
 of goods, and foreign houses of commerce, are shown, upon which we wish to call the 
 attention and care of your excellency by reason of their special nationality. Your ex- 
 cellency will find also, in the same plan, the houses of every one of the members of the 
 American congress of jurists in Lima, whose existence in Lima is well known by the 
 cabinet of Santiago, and whose title and duties are evidently worthy of special con- 
 sidertion . 
 
 As to the indications which we think it our duty to make to your excellency, they 
 could evidently not differ from the programme already proposed to the Government of 
 Chili, and which, as before stated, has received the approval of our governments. For 
 the rest, we have always understood that the measures whieh your excellency will 
 adopt, will be according to the legitimate exigencies of the war and the security of the 
 army under your command. 
 
 Among those measures, there is one, above all, which the diplomatic corps allows 
 itself to recommend specially to the consideration of your excellency. It is that in 
 relation to the entry of the troops, in the case that by consequence of events, the city 
 of Lima should capitulate or cease to be defended. In such case, in fact, the entry in 
 mass, of numerous troops, without necessity, would occasion great inconvenience. For 
 that reason, besides consulting the way to obviate inconveniences, we think there 
 would be positive advantages, in the successive entries of the troops, and that such en- 
 try should be made only by a number sufficient to guarantee its occupation. 
 
 This is a measure we have no doubt has already occurred to your excellency, as 
 others proper for the occasion, which will tend to avoid unnecessary evils, to humanize 
 the war, and to reduce its destructive action to the limits prescribed by the rights of 
 nations and Christian civilization, under which guard modern nations are ennobled 
 aud dignified. 
 
 As to the rest, promoting this communication for mutual intelligence, I think that 
 I have only anticipated your excellency's ideas in the same sense, since through them 
 we prevent as much as possible the horrors of the war, and avoid prejudice to the neu- 
 trals resident in these countries, aud perhaps their unnecessary ruin — which might 
 give room to grave complications — and at the same time avoid the criticism, more or less 
 severe, on the countries engaged in the struggle by other nations of the world which 
 are contemplating them. 
 
 I improve this occasion, Mr. General-in-Chief, to offer to you rexcellency the assur- 
 ance of my high consideration. 
 
 J. de T. PINTO. 
 
 [Inolosure 3 in No. 240.— Translation.] 
 Giniral Baquedano to Mr. Pinto. 
 
 Lurin, December 30, 1880. 
 
 I had the honor to receive the note dated 28th instant, in which your excellency, as 
 the dean of the diplomatic corps, resident in Lima, has been pleased to address me, 
 with the view to establish correspondence between us, in order to avoid as much as 
 possible the damages which may b 3 suffered by neutrals in their persons and property 
 by'the operations which the army under my command may realize in defeating the 
 army defending that capital. 
 
 It is very satisfactory to me to say to your excellency, in answer to the note above 
 mentioned, that it is with pleasure I initiate those relations, and that should your ex- 
 cellency wish, either to communicate with me personally or by written letters, you 
 will always find me disposed to receive with kindness all those suggestions which tend 
 to leBsen as far as possible the wrongs and evils of the war. 
 
 I will do, in that light, all in my power, . if the army of the enemy do not make of 
 the city of Lima the base of its defense. 
 
 But, if the contrary takes place, and I should be obliged to take it by assault, your 
 excellency will understand that it could not be possible for me, either to give a term 
 before commencing hostilities against that capital, or limit the consequences of that 
 combat and the occupation by main force, as your excellency and myself wish it. In 
 that case the city will forcibly be subdued to the rules of war and suffer all its rigorous 
 consequences. 
 
 Wishing that the relations initiated by this note may efficaciously tend to the 
 humane views which have influenced your excellency in addressing your excellency's 
 note to me, I improve this grateful opportunity to offer to your excellency the assurance 
 of my highest consideration. 
 
 MANUEL BAQUEDANO. 
 
446 AFFAIES IN CHILI, PEEU, AND BOLIVIA. 
 
 rinclosure 4 in No. 240.— Translation.! 
 Mr. Pinto to General Baquedano. 
 
 Legation of Salvador, 
 
 Lima, January 1, 1881. 
 
 Mis. General in-Chief : I had the honor to receive the answer your excellency has 
 been pleased to give to my letter of the 28th December last, the contents of which 
 were immediately placed before the diplomatic corps for their knowledge. 
 
 My colleagues accept with pleasure the assurances which your excellency has trans- 
 mitted. They could not but conceive doubts on your excellency's answer referring to 
 the principal part of my note, that part which refers to the entrance of troops into 
 Lima. This part involves great importance in the opinion of our governments, ex- 
 pressly approved by many of them, and we must, therefore, insist again and solicit 
 of your excellency to let us know in a precise manner if your intention is, as we under- 
 stand it, to let but a limited number of selected force enter the city in the particular 
 case that it should not be taken by storm. 
 
 It must have come to the knowledge of your excellency the rumors given by the 
 press of Chili relative to the sacking of Lima, notwithstanding that we understand 
 this is not the idea of the Government of Chili, proper only to past ages, we cannot 
 leave aside and must take into consideration that the suggestions thrown to the pub- 
 lic might have raised in the minds of soldiers tendencies against which special precau- 
 tions are necessary. 
 
 We are placed now under the necessity to point them out to your excellency, not 
 doubting, however, that you are willing to adopt them in order to prevent unneces- 
 sary wrongs, and cover your responsibility before your own country and the opinion 
 of the world. 
 
 We do not deny that, in the event of the city of Lima being taken by main force, it 
 would be impossible to limit the entrance of troops, nor for the city to avoid undergo- 
 ing all the rigorous eventualities of the war. Nevertheless, we cannot, and we ought 
 not, to reckon among those eventualities the plunder of this city. Your excellency 
 knows well that the laws of war, as they are now accepted by Christian civilization, 
 condemn the plundering of private property, as also attacking defenseless and non- 
 combatant persons, even in the case of a city being taken by assault. Our ideas agree 
 generally on that point, and your excellency will readily understand that it could not 
 be possible for us to remain indifferent at witnessing scenes condemned by the unani- 
 mous opinion of the countries we represent. 
 
 The diplomatic corps is grateful to your excellency for the frank deference with 
 which your excellency accepted the relations it initiated, and hope they will not prove 
 fruitless towards the noble purpose of humanizing the war, saving, as much as possi- 
 ble, large neutral interests not involved in it, and the reputation before universal pub- 
 lic opinion of the people who sustain it. 
 
 Having thus fulfilled the commission received from my colleagues, it remains for me 
 to renew to your excellency the assurance of my high consideration. 
 
 JORGE de T. PINTO. 
 
 [Inclosure 5 in ~No. 240. — Translation.] 
 General Baquedano to Mr. Pinto. 
 
 No. 423.] Lurln, January 6, 1881. 
 
 Mr. Minister: I have this moment received your excellency's note, dated the 1st 
 instant, in which your excellency asks if, in the event that the city of Lima opposes no 
 resistance against the force of my command, I will occupy it only with a select force? 
 In the contrary case, which is that of resistance, your excellency and honorable col- 
 leagues of the diplomatic corps condemn plunder, and wish to have security that my 
 troops will not perform such acts. 
 
 In answer to that letter my duty is merely to declare to your excellency that the 
 purpose of my government and my own is clearly stipulated in my note of December 
 30 last. 
 
 Your excellency may understand that the passionate declarations of the press of 
 both belligerent countries cannot be the subject of official discussion. Consequently 
 your excellency will allow me not to refer to the suggestion I found in the note of 
 your excellency as to the instigation of plunder which your excellency has thought 
 to have found in the press of my country. 
 
 As to the rest your excellency may rest assured that my firm intention is to human- 
 ize the war and prevent unnecessary wrongs to undefended inhabitants in accord with 
 the progress of the civilization of this century. 
 
AND BOLIVIA. 447 
 
 But to this only my promise must be limited, because the future means which I may 
 adopt, will depend upon circumstances which I cannot foresee nor your excellency 
 stipulate, because they will necessarily correspond with the attitude the army of the 
 enemy may assume. 
 
 I improve this opportunity to reiterate to your excellency the assurance of the high 
 consideration with which I subscribe myself your excellency's obedient servant. 
 
 MANUEL BAQUEDANO. 
 
 [Inclosure 6 in No. 240. — Translation.] 
 General Baquedano to Mr. Pinto. 
 
 Chorillos, January 15, 1881.— 11 p. m. 
 
 Mr. Dean : Your excellency knows that in consequence of the initiative voluntarily 
 taken by the honorable diplomatic corps to cease hostilities against that city I have 
 not carried into effect this morning the attack prepared against the forces of the 
 Peruvian army defending Miraflores. 
 
 Your excellency knows, and the honorable ministers of France and England also 
 know, that I, during the conference which we had to day, refused to prolong the term 
 asked from me in order to interpose their good offices near the Government of Peru 
 with the same pacific view ; but that at last yielding to the repeated entreaties of your 
 excellency and of your honorable colleagues, and as a proof of special deference to neu- 
 trals, I consented to wait for the answer which your excellency was to give to me 
 until midnight of this day. 
 
 Well, the army of the enemy, whose chiefs were to know the arrangements made by 
 the honorable diplomatic corps and to have received proper orders, opened fire to-day 
 at 2.20 p. m. upon the undersigned, his chief of the general staff and aids who recon- 
 noitered the held to see the situation of our troops. 
 
 This treachery of the enemy obliges me to hasten the operations under my care, and, 
 in consequence, I address myself to your excellency craving to communicate to your 
 honorable colleagues the resolution I made to bombard to-morrow, if I think it oppor- 
 tune, the city of Lima, until I obtain its unconditional surrender. 
 
 With sentiments of distinguished consideration, I subscribe myself, your obedient 
 servant, 
 
 MANUEL BAQUEDANO. 
 
 LInclosure 7 in No. 240.— Translation La Actualidad, Lima, February 4, 1881.] 
 
 Extract from General Baquedano' a report to Ms government dated January 16, 1881. 
 
 * * * At nine our victory was complete in Chorillos and on the fortified hills ex- 
 tending to the south ; but about 8,000 men which remained there still continued to 
 resist. With these forces a second battle took place. It was necessary to drive them 
 out from each one of the streets and houses of the town and from the heights, which 
 they held. This obstinate combat lasted until 2 o'clock p. m., at which hour the battle 
 was over with a victory which gave us possession of the enemy's entire line and of the 
 towns of Chorillos and Barranco, which as a consequence of their resistance were 
 burned and destroyed. 
 
 No. 305. 
 
 Mr. Christiancy to Mr. Uvarts. 
 
 No. 242.] Legation of the United States, 
 
 Lima, Peru, February 16, 1881. (Keceived March 18.) 
 Sir : Beferring to my dispatches Nos. 230 and 232 in reference to the 
 question of peace, and with what Peruvian Government it is to be made, 
 I have the honor to state that though, in many respects, the condition 
 of things remains substantially the same as when those dispatches were 
 written, yet some slight progress has been made toward a solution. 
 
448 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 1st. The Chilian authorities here, even before the last battle, had de- 
 clared that upon the question of peace they should decline the media- 
 tion of any other nation, and since they have been in Lima, they have 
 declared that they would not accept, even the good offices of any neutral 
 government, nor those of their diplomatic representatives here, and that 
 they will only treat with the Peruvian Government. 
 
 2d. While for some time after their entrance into Lima, they pro- 
 fessed to be ready to treat with Pierola as the only recognized govern- 
 ment of Peru, yet after the letter of Pierola, or rather his secretary-gen- 
 eral, to the diplomatic corps, dated the 20th January, 18S1, had been 
 published (I think by Pierola in some paper in Peru), a copy of which, 
 with a translation, will accompany my next dispatch, Xo. 243, the 
 Chilian authorities here have declared that they would not recognize 
 Pierola as the Government of Peru nor treat with him uutil that letter 
 should be withdrawn. And efforts have been made to initiate another 
 Peruvian Government under the auspices of the " notables " at and near 
 Lima. But none of the various parties seem to have men of sufficiently 
 commanding influence to secure the general popular support, and none of 
 them to be willing to incur the hazard of assuming powers of govern- 
 ment while Pierola remains as dictator and does not resign. 
 
 In the mean time the Peruvian judicial officers, having been invited 
 to enter upon the exercise of their jurisdiction, which they have declined 
 to do, martial law, which is certainly better than no law, has been pro- 
 claimed in Lima, Callao, and the surrounding country in possession 
 of the Chilian forces; their courts-martial adjudicating summarily and 
 givirfg only verbal decrees and judgments, which are promptly executed 
 by their military authorities. And I am glad to be able to testify that 
 the Chilian officials have conducted themselves with great propriety and 
 fidelity in the preservation of the peace and good order of the city of 
 Lima. 
 
 Several outrages, rapes, robberies, &c, it is true, have been committed 
 by individuals of the lower classes of their soldiery, but for which, a.> 
 I am informed, the offenders have been severely punished as soon a> 
 they could be discovered. 
 
 Pierola remains at Tarnia and sometimes at Jauja, beyond the first 
 range of Andes, the ChUians having control of the whole of the Calloa. 
 Lima and Oroya Railroad to Chicla, its present termination. 
 
 Several Peruvian missions have been sent to confer with him, with 
 the sanction of the Chilian authorities, and though he was. at first, 
 averse to any attempt at negotiation, yet since then, finding himself 
 without funds or arms, and utterly unable to carry on the war, he, nearly 
 a week since, resolved to negotiate for peace, and for that purpose 
 appointed three plenipotentiaries resident in Lima, and the necessary 
 instructions were given them. But one of these commissioners has de- 
 clined to accept and this produces another delay of about a week. 
 
 But the two other commissioners have had informal conferences with 
 the Chilian authorities, who, as I am informed, do not refuse to treat 
 with Pierola, provided the letter in question shall be withdrawn. 
 
 The terms will, of course, be such as Chili chooses to dictate, a capitu- 
 lation or surrender at discretion on the part of Peru, which is utterly 
 prostrate, and, from the Andes to the sea, virtually in their possession 
 and completely under the control of Chili! 
 
 But Chili has, by this last supreme effort, also exhausted herself, and 
 could not continue to contest much longer, except as she can contrive to live 
 upon Peru, and make her bear the expenses, which she is now attempt- 
 ing to do, having just sent an expedition of some 6,000 men to the region 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 449 
 
 of Trujillo, probably for the purpose of levying contributions, and de- 
 stroying property which does not pay them. They have also established 
 a commission here to levy upon the inhabitants of Lima and Callao a 
 forced contribution, and it is understood the lists are now being made 
 out. The decree or bando for this does not expressly exempt even 
 neutrals, though it is the opinion of the diplomatic coips generally 
 that neutrals are not inteuded to be included. "We shall soon see; and 
 if neutrals shall be included there will probably be an energetic protest 
 from the diplomatic corps. 
 
 It is evident that Chili means to leave Peru in a condition which shall 
 not render her a dangerous neighbor hereafter. She will now probably 
 demand the cession, not only of Tarapaca, but of the province of Mo- 
 quegna, including Arica and Tacna, thus depriving Peru of most of her 
 nitrate deposits and many of her guano-beds. And, judging from the 
 tone of the Chilian paper in Lima (the Actualidad), there is some reason 
 for supposing that Chili is now endeavoring to instigate the government 
 of Ecuador to seize upon the northern portion of Peru, a part of which 
 once belonged to Ecuador ; and I should not be surprised if Brazil, 
 taking advantage of this opportunity, should take possession of a large 
 portion of Northeastern Peru (the best portion of it, but now held by 
 the wild Indians), and that by these several means the most important 
 portions of Peru should be partitioned among her neighbors, a result 
 which, should it take place, will not be calculated for the preservation 
 of peace in any of these countries. 
 I have, &c, 
 
 I. P. QHRLSTIANCY. 
 
 No. 306. 
 
 Mr. Starts to Mr. Ghristiancy. 
 
 No. 129. Confidential.] Department of State, 
 
 Washington, February 17, 1881. 
 
 Sir : The question of the restoration of peace in South America, 
 ever present to this government, as you will have amply seen by my 
 instruction No. 123 of the 10th instant, of which I send a duplicate to 
 you by the hands of the same messenger who carries this present in- 
 struction, is presented to me to-day in a phase which I feel warranted 
 in making known to you with whatever of confidence and reserve its 
 nature may counsel. 
 
 Your latest dispatches, received here on the 15th instant, cover dates 
 up to the 23d ultimo, and represent the success of the Chilian arms, as 
 shown in the occupancy of the national metropolis by the invaders and 
 the administration of its affairs by their officers, thus confirming the 
 advices of the public press. And yet, at your time of writing, this 
 condition of affairs left it problematical how far the prospect of a suc- 
 cessful negotiation for ultimate peace might have beeu thereby has- 
 tened. 
 
 This Department has been approached by Count Montferrand, of 
 Paris, and Mr. Suarez, understood to be a Peruvian citizen, with cer- 
 tain proposals or calculations of important financial interests in Europe 
 looking to financial aids and facilities to enable the two nations to 
 liquidate advantageously to both, as it is argued, the obligations pro- 
 duced by the war and needing to be met as part of the terms of peace. 
 S. Ex. 79 29 
 
450 AFFAIRS IX CHILI, PEEL", AXD BOLIVIA. 
 
 I have said to Mr. Suarez, who goes to Lima by the same steamer 
 ■which carries this instruction, that I am always ready to press the me- 
 diation of this government towards early and honorable peace between 
 the belligerents ; that the financial facility and aid which the private 
 interests he represents can furnish towards a liquidation of the pecuniary 
 obligations that the war may have created and which may need to be 
 met, are calculated to assist the restoration of peace ; tha t, in this light, 
 they will be laid before the representatives of the United States in 
 Peru and Chili ; and that any further responsibility of this government 
 can only be determined by actual negotiations between the belligerents 
 asking this government to assume them. 
 
 The "programme," as it is called by these gentlemen, it would seem, 
 might form an element in the calculations of the belligerents as to the 
 resources at their recourse in settling the terms of peace. 
 
 In this sense I have inclosed herewith two copies of the " pro- 
 gramme" for your consideration, and for such comparison of views on 
 it as Mr. Suarez (should he call on you) might invite and you might 
 find it prudent to hold. 
 
 It is to be observed that any part or responsibility that this govern- 
 ment might be asked by the belligerents, or by any financial adminis- 
 tration that might be admitted by them into the adjustment considered 
 or adopted to take, is reserved by this government to be treated with 
 entire freedom whenever the matter should arise for consideration. 
 
 Count Montferrand and Mr. Suarez have both come to me under 
 respectable introductions, and the financial bodies and persons whom 
 they appear to represent, are well known and of much weight in finan- 
 cial circles. 
 
 You will, however, understand that the matter is placed before you 
 only as an element which, if it can be made valuable and conducive to 
 peace, this government would not like to have wanting to the belliger- 
 ents, if their negotiations would find it useful. 
 
 Tou can impart to your colleagues, Mr. Osborn and General Adams, 
 as much of this communication as occasion may suggest, but always in 
 confidence. 
 
 I am, &c. 
 
 YVM. M. BYAETS. 
 
 [Inclosure.] 
 
 Programme for mediation between Peru and Chili. 
 
 I. 
 
 The neutrality of the guano and uitrate deposits, so as to avoid ill-feeling between 
 ihe iwo nations, which would result from a surrender of the territory, and at the 
 same time to guarantee to the creditors said deposits (pledged to them), against all 
 iiiture difficulties or competitions. 
 
 II. 
 
 Tlie working of the neutral deposits to be entrusted to an insti'ution of credit, of- 
 fering a financial basis of unquestionable standing and ability to assure public confi- 
 dence in any engagement it shall undertake in regard to all the interests. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 451 
 
 III. 
 
 THE BASIS OF THE TRANSACTION. 
 
 The contract of the Credit Industrie], dated at Paris, January 7, 1880, so modified! 
 as to give satisfaction to every interest, allowing, namely : 
 
 First. To Chili.— The royalty claimed by her of £1 10s. per ton, or £450,000 per an- 
 num, which would permit a loan of £4,000,000 to be raised to pay a reasonable war 
 indemnity. 
 
 Second. To Peru. — The amount which she has declared indispensable for her inter- 
 nal budget, £450,000 per annum. 
 
 Third. To the bondholders. — The balance, which represents 3J per cent, on the prin- 
 cipal of the standing debt. 
 
 IV. 
 
 The funding of the nitrate debt in order to permit the redemption of the guano Pe- 
 ruviau debt, and to increase, if necessary, the royalties appropriated to Peru and 
 Chili. 
 
 V. 
 
 To lay a cable from Panama to Peru (Callao), to aid the development of commer- 
 cial relations with the last-named country, and assist in the restoration of her credit. 
 There could be appropriated for the benefit of said cable a subsidy to be derived from 
 the funded nitrate debt. 
 
 We can assert that this programme, should it be proposed by the United States, 
 would be endorsed by the great European powers whose subjects are the creditors of 
 Peru, mainly England, France, Belgium, and Holland. 
 
 statement. 
 
 First. 
 
 The guano, including manipulation and mixing of same, will yearlv pro- 
 duce on a sale of 300,000 tons .' £3,600,000 
 
 I. Freight and expenses, estimated at £4 per ton £1,200,000 
 
 From which is to be deducted— 
 
 II. Peruvian royalty, £1 10s 450,000 
 
 III. Chilian royalty, £1 10s 450,000 
 
 2,100,000 
 
 1, 500, 000 
 
 IV. Remuneration to the Credit Industriel of 20 per cent, on the net pro- 
 ceeds 300,000 
 
 Leaving to be distributed every year to the bondholders, viz, 3£ per cent. 1, 200, 000 
 
 Second. 
 
 The expropriated nitrate producea, per annum, on a sale of 200,000 tons, 
 
 at £14 per ton - £2,800,000 
 
 I. Manufacturing and transporting to the place ot shipment, 
 
 at, say, £6 per ton £1,200,000 
 
 From which is to be deducted, 
 
 II. Freight and expenses, say, £4 per ton 800,000 
 
 2,000,000 
 
 Net .- 
 
 800, 000 
 
 The nitrate debt amounts to £4,000,000, and requires 8 per cent, interest 
 and 2 per cent, sinking fund, viz, £400,000 per annum. This amount 
 could be reduced, namely, make the interest 5 percent, and t percent, 
 sinking fund, and to refund it iu " bons de delegation," which, being 
 negotiable in Europe, would secure to their holders more than they 
 would lose by the chauge 240, 000 
 
 Leaving a clear balance of 560,000 
 
452 AFFAIRS IX CHILI, PERU, AND BOLIVIA. 
 
 To be appropriated to — 
 
 The redemption of Peruvian bonds 300,000 
 
 Chilian royalty 100,000 
 
 Peruvian royalty 100,000 
 
 Subsidy to the cable 60,000 
 
 560, 000 
 
 The foregoing will therefore permit regularly to be appropriated each year: 
 
 I. To Chili, £550,000; that is to say, an amount mure than sufficient to raise a loan 
 of £4,000,000 to £5,000,000. 
 
 II. To Peru, £550,000 ; that is to say, more than the treasury has ever regularly re- 
 ceived. 
 
 III. To the bondholders, £1,200,000. This is an income less than the one originally 
 promised, £2,600,000; but it will be perfectly sure, as it will be protected against all 
 chances by the neutrality secured. 
 
 It is sufficient to read the foregoing programme and the figures attached to it to ac- 
 knowledge : 
 
 A. That said arrangement is acceptable to both nations, since it will permit them 
 to settle peace without any sacrifice to their national pride, and securing to each one 
 a large pecuniary compensation. 
 
 B. That said arrangement is acceptable to the creditors of Peru, since it gives to 
 them a s curity which they have never had, in return for abandonment of a portion 
 of their interests. 
 
 C. That said arrangement would be acceptable to any mediator, since it does not 
 impose a sacrifice of any interests, and it permits the restoration of the credit of two 
 nations, whose ruiu will cause trouble in the commercial world. 
 
 A. GUILLAUMK, 
 President of the Peruvian Bondholders' French Committee. 
 
 No. 307. 
 Mr. Christiancy to Mr. Erarts. 
 
 No. 243.] Legation of the United States, 
 
 Lima, Peru, February 19, 18S1. (Received March 18.) 
 
 Sir : I have the honor to inclose the copy (and translation) of a letter 
 from Aurelio Garcia y Garcia, secretary-general of Pie'rola, to the dean 
 of the diplomatic corps resident in Lima, dated Canta, January 20, 1881. 
 This is the letter which the Chilian officers and representatives here 
 insist shall be withdrawn before they will consent to treat with Pierola 
 as the Government of Tern. 
 
 Now, though the Chilian authorities have not, so far as I know, speci- 
 fied the particular part of this letter to which they object, yet I am 
 inclined to believe it must be that part which charges the Chilians with 
 having treacherously opened the battle in defiance of the armistice 
 which had been agreed upon, as I am inclined to believe that all the 
 other charges contained in the letter are true, and that they could not 
 be successfully denied by the Chilian authorities. It is quite true, I 
 think, from the universal reports which I have heard, that the towns of 
 Chorillos, Barranco, and Miraflores were wantonly and unnecessarily 
 burned, after all resistance had ceased, and that Barranco never resisted 
 at all. I think also that it is entirely true that the Chilians murdered 
 upon the field of battle, on the 13th, at least such wounded soldiers as 
 they found upon the field from which the Peruvians had retired. They 
 may or may not have excepted Peruvian officers, but the general re- 
 port from Chilian officers, as given to me from officers * * who have 
 conversed with them, is that as a rule they killed on the field all the 
 Peruvian wounded who fell into their hands, with the occasional ex- 
 ception, possibly, of Peruvian officers. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 453 
 
 I know that when at Arica, in September, the Chilian governor of 
 the place informed me that in taking Arica they took no wounded Peru- 
 vian soldiers there, and from all I could learn from all sources the same 
 was substantially the fact at the battle of Tacna., with very slight ex- 
 ceptions. It may be, and I hope it is, true that after the battle of 
 Miraflores, when the Chilians knew the Peruvians were totally defeated 
 and disbanded, they may have saved some of the Peruvian wounded 
 found upon the field ; but all their reports thus far have shown a greater 
 number of Peruvians killed than wounded, which tends strongly to show 
 the truth of the reports that the wounded Peruvians found upon the 
 field were put out of their sufferings in the shortest possible manner. 
 In making these statements I do not profess to speak upon my own 
 knowledge, but upon the best information I can obtain, which I hope, 
 for the honor of humanity, may turn out to be untrue. 
 
 What the letter says of the Chilian navy forming a line of battle 
 in front of Miraflores and the advance of the Chilian army on the 15th 
 after the armistice is, from the best information I can obtain, substan- 
 tially true. It is at least quite certain that the Chilian army continued 
 after the armistice to extend its left wing around and near the right 
 wing of the Peruvian army, and these, at least, to approach much nearer 
 to the latter ; but whether the rest of their line advanced nearer is not 
 so clear, though I think the weight of evidence, judging from all sources 
 of information, is that they did advance in several parts of their line 
 nearer to the Peruvian line. 
 
 But the great question is, whether the right to do this was or was 
 not reserved by General Baquedano in granting the armistice. He 
 claims' that it was, while Pi<§rola, through his secretary, in the letter in 
 question, appears to ignore any such condition, and assumes that the 
 battle was opened by the Chilians. Upon this point (who fired the first 
 gun and thus opened the battle), while I and the rest of the diplomatic 
 corps, being at Pierola's headquarters in Miraflores when the battle 
 opened, supposed the attack had been commenced by the Chilians, yet 
 subsequent information lias gone far to satisfy me that the first gun 
 was fired from the side of the Peruvians ; probably the unauthorized 
 act of some subordinate officer, provoked by seeing General Baquedano 
 and his staff reconnoitering within a few hundred yards of their front, 
 and probably also seeing the advance of the Chilian army near the 
 right of the Peruvian positions. 
 
 But that General Baquedano believed that he had reserved the right 
 to make these movements and this reconnaissance there can be scarcely 
 room for doubt, as he was himself with his staff in the most exposed 
 position when the firing commenced, and lost his horse, and was com- 
 pelled to hasten to the rear and to bring up the troops who, like him- 
 self, had been thrown off their guard by the armistice. 
 
 On the other hand, I was, with all the diplomatic corps, an eye-wit- 
 ness to the utter surprise and astonishment, not to say terror, of Pier- 
 ola and his staff, at the sudden and, to them and to us, unexpected 
 opening of the battle ; and I have not the slightest reason to doubt 
 that they were relying in good faith upon the armistice, and believed 
 at the time that it had been violated by the Chilians, and that, the bat- 
 tle had been opened by them. Whether he learned the contrary during 
 or after the battle I cannot say. As he was some little distance in the 
 rear and fled when his forces were routed, I am inclined to think he 
 had not learned the fact (that his own forces first opened fire) at the 
 time when this letter of the aOth January was written. 
 
 The whole merits, therefore, in my view, turn upon the question what 
 
454 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 were really the terms of the armistice 1 This was arranged with Gen- 
 eral Baquedano, verbally by the committee of the diplomatic corps 
 (consisting of the dean and the ministers of France and England). 
 
 It is greatly to be regretted that in so grave a matter the terms had 
 not been put in writing to avoid misconception and misconstruction. 
 The letter of the secretary-general of Pi^rola, above referred to, gives 
 what Pierola claims to have been the terms as communicated to him 
 verbally. The Chilian secretary of war writing, or rather telegraphing, 
 to his government on the 16th January, simply says, "A committee of 
 the diplomatic corps, composed of the ministers of England, France, 
 and Salvador, came yesterday to this camp at the request of the Su- 
 preme Chief of Peru, and an armistice was arranged between them and 
 the Chilian commander-in-chief to expire at 12 o'clock of the same 
 night." Here no conditions are mentioned. 
 
 General Baquedano, in reporting the same transaction to his govern- 
 ment on the 16th, simply says of the armistice : 
 
 After mature deliberation, I promised not to open fire that day, and to wait their 
 reply until 12 oVock at night: as this kind of armistice involved no other com- 
 promise, I continued making my preparations for the combat. 
 
 Xow, aside from these official declarations, I learn verbally from 
 Mr. St. John, the British minister, that General Baquedano, in assent- 
 ing to the armistice, did reserve the right to complete the movement 
 already begun of massing his artillery on his left (the right of the Peru- 
 vian line), and he sometimes states it as a right to complete any move- 
 ment already began ; but, so far as I can learn, this was the only move- 
 ment so begun. Xow, whether this condition (whatever it wasjwas 
 fully explained to and understood by Pieralo I think there is some 
 room for doubt, though I am far from charging or believing that the 
 French and English ministers or the dean of the corps purposely with- 
 held from Pierola these conditions. Yet, in the haste and excitement 
 incident to their conference with him, I can readily see that there was 
 much room for misapprehension, and that Pierola may not have had 
 the same full apprehension of these conditions that General Baquedano 
 had. 
 
 This is all I can, with propriety, say of this affair until further au- 
 thentic information shall be obtained. 
 I have, &c., 
 
 I. P. CHEISTIAXCY. 
 
 [Inclosnre in Xo. 243. — Translation. J 
 
 Sinor Guixia to the Dean of the Diplomatic Ccrjjf. 
 
 Secrktary-General, 
 Canta, January 20, l**!l. 
 
 After the battle of Cborillos of the 13th instant, between the part of the national 
 army defending that line and the invading forces of Chili, his excellency the Supreme 
 Chief of the republic ordered the retreat of the army on the positions of Mirarlores, 
 which were also the camp of the Lima reserve. 
 
 The morning of the 14rh instant a Chilian flag of truce, accompanying Col. Miguel 
 Iglesias, commander-in-chief of the first division of the Peruvian army, and who was 
 made a prisoner during the battle of the previous day, made their appearance towards 
 the right front of our line. Their object was to ask a pass for Colonel Iglesias, who, 
 under -word of honor, came on a mission from General Baquedano to the Supreme 
 Chief. This being granted, Colonel Iglesias made known to his excellency the object 
 of his mission, which was to ascertain if, on the part of the Government of Peru, prop- 
 ositions of peace would be heard. The affirmative answer of his excellency led to 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 455 
 
 an open field for any negotiation, he specifying moreover that those propositions could 
 either be made by writing or verbally, by a negotiator duly authorized. With that 
 frank answer Colonel Iglesias went back to the camp of the enemy. 
 
 Two hours afterwards a second flag of. truce was seen by our advanced guards, and 
 with it the Chilian chief, Sefior Guillermo Lira Erraznris, who was introduced into 
 the general staff of his excellency the Supreme Chief. The undersigned, who was 
 ordered to communicate with the Chilian chief referred to, heard his proposition, 
 which was to disoccupy immediately the positions of Miraflores in order to be oc- 
 cupied by the Chilian army ; this was demanded as a previous and indispensable con- 
 dition before commencing the discussion. 
 
 Miraflores being the support of our right wing and the dominant point of that second 
 line of defense, such pretension was equivalent to exacting a complete victory with- 
 out exertion or loss of any kind. 
 
 Similar observations and many others pertinent to the occasion, which I omit to 
 state to avoid confusion, were not sufficient to modify in the least the ideas of the 
 Chilian commissioner, whose intentions were evidently directed to his single object, 
 going so far as to reject the proposition of a short armistice, which I stated as a means 
 for discussion, free from the natural excitement of the recent contest which we had 
 just sustained and in face of the new one which we now found imminent. In view 
 of the impossibility of an agreement, we ended this fictitious negotiation for peace. 
 
 It was then when the friendly mediation of the honorable diplomatic corps ac- 
 credited to Peru begun, initiated by a commission chosen from among them and com- 
 posed of the honorable ministers S. St. John and De Vorges, who asked his excellency 
 if Peru would accept their friendly mediation which they proposed, and offering at 
 the same time to go to the camp of the enemy for that purpose. 
 
 Such worthy and benevolent proceeding will always be cause of gratitude from the 
 people and Government of Pern. 
 
 The facility of communication, and afterwards that of going to the Chilian camp, 
 which those honorable ministers, in representation of all their colleagues, have had 
 are too well known to your excellency to mention them here. 
 
 But it is indispensable to remember, because it is for the prestige of those represent- 
 atives, for that of the friendly nations to Peru, in which name they acted, and for mil- 
 itary honor, which is uniform in all the civilized nations of the world, that negotiations 
 of peace were opened under the friendly intervention of the diplomatic corps. His ex- 
 cellency receiving word through your excellency and the honorable ministers of Great 
 Britain and France, Messrs. Spencer St. John and De Vorges, of the assurance given by 
 the Chilian General Baquedano, and accepted by him in the same form, that no act of 
 hostility would be practiced until 12 o'clock of the night of Saturday, the 15th, the time 
 which said general limited to receive an answer to the propositions of peace, and which 
 declaration, according to the rules of war, constituted a true armistice. 
 
 Notwithstanding snch solemn agreement, the Chilian navy, composed of 14 ships, 
 formed a line of attack in front of Miraflores from the morning of the 15th, and the 
 army on the other hand advanced in line of battle in front of our iine, shortening the 
 distance to some 1,800 meters, placing conveniently its artillery, and taking advanta- 
 geous positions which they could not have taken without great sacrifice. 
 
 Of all these movements, which infringed what had been agreed upon, his excellency 
 the Supreme Chief received constant notice, in the presence of Admiral Sterling, of the 
 British fleet in the Pacific; Admiral Du Petit Thouars, of the French fleet; the com- 
 mander of the corvette, Christoval Colon, chief of the Italian fleet, and another com- 
 mander of an English vessel, all of whom went there to offer their humane and friendly 
 action ; but as all this took place in the rooms inhabited by his excellency the Supreme 
 Chief, in the presence of all the members of the diplomatic corps, it was impossible to 
 the loyalty of the Supreme Chief to admit that, under such exceptional circumstances, 
 an act of perfidy was intended to be realized which could hardly occur even among 
 the half-savage tribes of Africa or Araucania. 
 
 While this was happening, his excellmcy, as also your excellency, the admirals and 
 commanders, who at that moment were in bis company, received as first notice the fire 
 which simultaneously broke out at 1.30 p. m.* from the Chilian army and navy upon 
 Miraflores, and on our right wing, beginning thus the battle of Saturday 15th, which 
 treacherous origin was witnessed, with imminent peril of their lives, by your honorable 
 colleagues, the admirals and commanders already named, as also the naval officers of 
 the United States, France, Great Britain, and Italy, who were added to our general 
 staff. 
 
 The soldiers of a nation who, like those of Chili, have, with many of our chiefs and 
 officers prisoners, coolly and cowardly shot them, assassinating on the battle-field the 
 helpless wounded, and totally burning, after their occupation, the towns of Chorillos, 
 Barranco, and Miraflores, and following the fatal logic of barbarism, were bound to 
 disregard all moral respect and military agreement. 
 
 ' The actual time was 2.20 p. m.— I. P. C. 
 
456 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 The object of the present letter, which I have been ordered to address to your excel- 
 lency, is to leave an official record of the authenticity of those facts, craving your ex- 
 cellency to give a copy of it to each of yonr honorable colleagues, for all of whom this 
 is intended. 
 
 I remain, &c, 
 
 AURELIO G. Y GARCIA. 
 
 Ho. 308. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 Ho. 245.] Legation of the United States, 
 
 Lima, Peru, February 25,1881. (Received April 5.) 
 
 Sir : Referring to my dispatch Ho. 242, I have the honor to inform 
 you that since then the Chilian authorities here have definitively de- 
 termined not to treat with Pierola, at present the only recognized gov- 
 ernment of Peru, recognized by all the other governments who have 
 representatives here, and by Chili herself by treating with him at 
 Arica. 
 
 A movement has therefore been initiated among some of the leading 
 citizens of Lima and Callao, and encouraged by the Chilian authori- 
 ties, to establish a new government in opposition to that of Pierola 
 (who is still at Tarma or Jauja). And at a meeting of 110 of those 
 citizens a Mr. Francisco Garcia Calderon was, by a fair majority of 
 that meeting, declared to constitute, to use their own language, the 
 "unipersonal government" of Peru. 
 
 At a superficial glance this would seem to be an attempt to get rid 
 of one distatorship clearly adopted by the people of the whole Peruvian 
 Republic, and recognized by foreign governments, including Chili, for 
 a new dictatorship, adopted by the majority of a self-constituted meet- 
 ing of 110 men of Lima and Callao, and recognized as yet by nobody 
 else except Chili. In this aspect merely it would, of course, be simply 
 ludicrous. 
 
 But the intention, as professed by this new "unipersonal govern- 
 ment" and by the Chilian newspaper here (for no Peruvian paper is 
 allowed to be published here) is that this movement for the establish- 
 ment of a new government shall be submitted in some form to the 
 people of Peru; that an appeal shall be made to the people, who shall 
 be invited to sanction this government until a Congress can be called 
 together to ratify it or to establish another in some form. And, of 
 course, if the people of Peru choose to ratify or concur in this or any 
 other form of government, it must then be considered legitimate and 
 acknowledged as such. But Chili does not intend to accept any 
 treaty as final without its ratification by a Peruvian Congress, though 
 she may, iu the mean time, agree upon a provisional treaty with this 
 provisional government, only to be submitted to and ratified by a Con- 
 gress. 
 
 The friends of this new movement profess to have two objects in 
 view: First (which no one doubts their desire to attain), to secure a 
 peace with Chili ; and, second, by this appeal to the people to get back 
 to a constitutional government under the constitution in force before 
 the dictatorship ; but this last object many appear to doubt. Owing 
 to the difficulty of communication, it will take some time, I should say 
 nearly or quite two months, to get here an authentic expression of the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 457 
 
 will of the people in all parts of Peru in any fair and regular way. In 
 the mean time the Chilian army will probably continue in Peru, living 
 upon the country. 
 
 If the appeal to the people succeeds in securing the popular support, 
 peace (upon such terms as Chili may choose to dictate) will probably 
 be the result. 
 
 But if, as I fear may happen, the people of only a part of Peru may 
 approve, and those of any considerable portion should still adhere to 
 Pierola, the result would be likely to prove calamitous indeed to Peru, 
 producing a civil war in addition to the war with Chili. 
 
 It is the opinion (or, I would rather say, the strong suspicion) of 
 many that this result is what is desired by Chili, and that her efforts 
 are intended to produce it for the purpose of enabling her to demand 
 a larger cession of territory, if not to give her an excuse for seizing the 
 whole of Peru. 
 
 The main ground for this opinion, or suspicion is, that Chili refused 
 to recognize or treat with Pierola, the only recognized government, 
 after he had consented to treat and appointed his commissioners; but, 
 until shown by further developments, I am not ready to attribute to 
 them the design of attempting the permanent conquest of the whole of 
 Peru, though there are some Peruvians and many foreign residents who 
 would prefer this result as best calculated to give the country a more 
 stable government. 
 
 In the proposed appeal to the people by the new provisional or pro- 
 posed pro visional government, I think it probable that the portion of 
 Peru west of the Andes will ratify the movement, as much of it has 
 already been overrun by the Chilian forces, and the people clearly see 
 that the Peruvian Government, whether thenew, or the old, is, and will 
 be for a long time, powerless to afford protection ; and that peace, 
 therefore, is absolutely essential. 
 
 But that portion of Peru east of the western range of the Andes, the 
 best, but least peopled part of Peru, the people have felt less of the 
 evils, and none of the ravages of the war. Pierola is among them ; 
 and if, now that Chili has refused to treat with him, he should conclude 
 to attempt to sustain his own government, or induce the people to re- 
 fuse the recognition of a new one, the worst consequences are likely to 
 follow. He has, it is true, scarcely any armsor munitions, and no funds 
 to purchase them, or means to get them into the interior, if he could 
 purchase any amount of them. Nothing more than a guerrilla war- 
 fare, could, therefore, be carried on ; but this would be sufficient to 
 ruin Peru, and justify Chili in the use of the harshest measures. 
 
 I aminformedby General Adams, from La Paz, February (ith,that the 
 Bolivians do not take it for granted that the war is over ; that they are 
 just. now importing arms through the Argentine Republic, and he 
 thinks the war likely to continue. It may be that Pierola may make 
 his way south and join with Bolivia to prolong the war ; but this is 
 not my opinion. I am strongly inclined to think that when Bolivia 
 conies to understand fully the inability of Pern to take a principal part 
 in the war, she will make a separate peace. 
 1 have, &c, 
 
 I. P. CHK1STIANCY. 
 
458 AFFAIRS IX CHILI, PERU, AND BOLIVIA. 
 
 Xo. 309. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 Xo. 2.31.] Legation of the United States, 
 
 Lima, Peru, March 8, 1881. (Received April 5.) 
 
 Sir : Referring to your dispatch Xo. 119, I hare the honor to re- 
 ply— 
 
 1st. That if any danger to neutral vessels ever existed from Peru- 
 vian boats "containing explosive materials" being "sent adrift on 
 the chance of their falling in with some of the Chilian blockading 
 squadron," that danger had all passed some days before your dispatch 
 was written, as you will have discovered from my dispatches ; the 
 Chilians having the entire possession of the Peruvian coast, and there 
 being no further opposition to them along the entire coast of Peru. 
 
 2d. I know of no government of Peru to whom I could present a re- 
 monstrance, except to Pierola, who is in the interior beyond the first 
 range of the Andes at Jauja, and has not, so far as I am yet informed, 
 appointed any minister of foreign relations with whom I can corre- 
 spond. 
 
 3d. I will say that there never has been any real danger to neutral 
 vessels from the cause mentioned, so far as 1 know or have been in- 
 formed. But three instances have occurred during the war (so far as 
 I have ever heard) which could by auy possible latitude of construc- 
 tion come within the grounds of complaint mentioned. The first was 
 the case of the Loa, mentioned in my dispatch Xo. 183, which occurred 
 in the bay of Callao far within the blockading lines, where no neutral 
 vessel (except naval) had any right to come, and where for months 
 they had not attempted to come ; and the neutral naval vessels within 
 the bay or near it, not being, like the Chilian vessels, likely to seek to 
 take prizes, and knowing that both belligerents equally were using all 
 the stratagems in their power to injure each other, and being on the alert 
 for these were in no danger of being caught in the trap set by either. 
 
 Xo complaint was ever made or suggested to me on behalf of any 
 merchant vessel of the United States, nor of any of our naval vessels 
 on this score. 
 
 The only other cases which have come to the knowledge of the public, 
 in which the Peruvians had put concealed dynamite in any boat or 
 launch, was in the case of the blowing up of the Chilian naval vessel 
 the Covadonga. This took place in the harbor of Chancay, and in the 
 following manner: The captain of the port had a very fine and attract- 
 ive row-boat, in which he had formerly been accustomed to go out to 
 the vessels anchoring there. In this boat it seems there had. just 
 before the destruction of the Covadonga, been concealed a large 
 quantity of dynamite between the outer and inner skin of the boat. 
 The boat was then anchored or fastened to the shore. The Covadonga 
 came in and destroyed several other row boats and launches or sunk 
 them; but this one being so fine a boat and so attractive the officers 
 of the Covadonga could not resist the temptation of taking it for their 
 own use. They therefore sent in a small boat for the purpose of taking 
 her, and the seamen in the Chilian boat fearing some ruse de guerre 
 passed their oars all around and under her before venturing to seize 
 her, but finding nothing they took her aud rowed her to the Covadousa, 
 when ropes were put into the rings of this boat and they began to hoist 
 her up by the aid of the ship's davits; at this moment the explosion 
 took place, sinking the Covadonga. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 459 
 
 Surely here was no danger of any neutral vessel, merchant or naval, 
 heing caught in the trap, as none of then! would have ventured to seize 
 upon the boat recognized as that of the captain of the port. 
 
 There was one other case in which the Peruvians sent out a launch 
 with dynamite in the port of Callao, toward the Chilian fleet, which 
 blew up before reaching the fleet. This created no danger to the 
 neutral naval vessels, and no merchant vessels were in the port or 
 allowed to be there. 
 I have, &c, 
 
 I. P. CHBtSTIANCY. 
 
 No. 310. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 253.] Legation of the United States, 
 
 Lima, Peru, March 8, 1881. (Received April 5.) 
 
 Sir : In reply to your dispatch No. 123 I have the honor to state 
 that I believe the telegram of Pi6rola therein stated to be entirely cor- 
 rect, though I had no knowledge that he had sent it. 
 
 It is quite true, as you state, I had not informed you by tele- 
 graph of the taking of Lima by the Chilian forces, &c. There were 
 several reasons why I did not telegraph : 1st. There is no telegraph 
 line from here, the nearest being Panama, and the next nearest from 
 Arica by way of Valparaiso and Europe. 2d. I have never been fur- 
 nished with' a cipher, and my dispatch, therefore, would be public. 
 3d. My experience in telegraphing, or attempting to do so, has not- 
 been favorable, as I telegraphed you from Arica (via Europe) on the 
 28th October last, the result of the conferences there, and again sent 
 one to same effect by mail to Panama to be telegraphed to you from 
 there, in the early part of November, and have to this day received no 
 acknowledgment' of the receipt of either, and I am in doubt whether 
 either has been received. These were both sent without expense to 
 the United States. 4th. 1 knew that by the ordinary channel of tele- 
 graphy from Chili to Europe you would hear all I could telegraph as 
 soon as I could send a dispatch, and this without cost to our Govern- 
 ment. 5th. I was careful to keep you informed by my dispatches 
 by mail of all that had taken place, never neglecting a single mail, and 
 long before this you must have received those dispatches, though not 
 till after your dispatch No. 12.'! was written. 
 
 I have not been unmindful of the desire of my government expressed 
 by you, in which I fully participate, to bring about a peace between the 
 belligerents "upon reasonable and honorable terms compatible with 
 the true welfare of all the belligerents, and so as to be lasting." But I 
 find little room for any efforts of mine in the face of the repeated decla- 
 rations of the Chilian authorities here that they will not admit the me- 
 diation or even the good offices of any other government or of its repre- 
 sentatives here in any arrangement for peace. 
 
 Under such circumstances you will readily perceive that I need more 
 specific instructions before I can press upon the Chilian authorities any 
 definite terms of peace. 
 
 On the other hand, Pierela, the only government yet recognized by 
 Peru and by all foreign representatives here, is iu the interior at Jauja, 
 
460 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 willing and anxious to treat for peace — as I know from his letter to a 
 friend here shown to me some days since. But the Chilian authorities 
 here have declared, as I have already informed you, that they will not 
 recognize him as the Government of Peru, nor treat with him as such. 
 
 If I can see any opening where my efforts can be of any avail for peace, 
 I shall not lose the opportunity. 
 
 For a further explanation of this matter, I refer you to my next dis- 
 patch. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 Xo. 311. 
 
 Mr. Ghristiancy to Mr. Blaine. 
 
 No. 254.] Legation of the United States, 
 
 Lima, Peru, March 9, 1881. (Received April 5.) 
 
 Sir : I have the honor to inclose to you the copy of a circular, ad- 
 dressed by Pierola, through his chief secretary, Garcia y Garcia, to all 
 the members of the diplomatic corps here, dated Jauja, March 1, 1881, 
 together with an English translation of the same. 
 
 I need not comment upon this except to say that, with the exception 
 of its complaint of the mere paper blockades, it is, in my opinion, as 
 -well founded in fact as papers of this kind can be expected to be, and 
 not very materially variant from the actual truth. 
 
 I understand from report (though I have not seen the decree) that 
 Pierola has issued a decree for the election of a congress on the first of 
 May next, to meet at Ayacucho, on the third day of June next. 
 
 I understand also from general public report, that the Chilian au- 
 thorities here declare, not only that they will not recognize Pierola as 
 the Government of Peru, nor treat with him, but that they will not 
 Tecognize a congress called together by him, or elected under his de- 
 cree. I hope this is not true,, since, under present circumstances, it au- 
 thorizes a more or less strong suspicion that they are seeking to pro- 
 duce or continue such a state of chaos as to afford a pretext for the 
 general spoliation of not only all public property of Peru but the pri- 
 vate property of her individual citizens. 
 
 The attempt to form a new Permian government here in opposition 
 to that of Pierola, described in my dispatch Xo. 24."», seems from pres- 
 ent appearances to have utterly failed. Mr. F. G. Calderon found 
 great difficulty in getting proper ministers to hold offices under him; 
 but when he finally thought he had got this arranged, he, for the first 
 time, as it would seem, began to inquire how far his Chilian friends 
 meant to allow his government to govern. 
 
 He requested that the Chilian army should be withdrawn from the 
 city of Lima, that he should be allowed to occupy the government pal- 
 ace and raise over it the Peruvian flag, and that he should be allowed 
 to control the custom-house and the collection of duties, &c, all of 
 which was refused ; whereupon, as I understand, his proposed ministers 
 Tefused to act, and he himself was disposed to decline the task of 
 forming a government. It is now again reported that he has not 
 finally given up the attempt, but as yet nothing definite has resulted. 
 
 During the time that these efforts to form a new government were 
 in progress, and while they promised success, the movements previously 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 461 
 
 set on foot by the Chilian authorities for levying war contributions were 
 allowed to rest without any step taken for their enforcement. But as 
 soon as the attempt to form the new government had apparently failed, 
 viz, on the 5th instant, General SaavedM, at present commander-in- 
 chief of the Chilian forces, issued the bando (decree) of the last-named 
 date, a copy of which, with translation, I herewith inclose. 
 
 And on the 7th instant he issued the further decree for the collection 
 of $1,000,000, for the month of February, being $20,000 from each of the 
 fifty persons named, of which I also inclose a copy with a translation. 
 
 I call your special attention to the penalty imposed by this decree 
 for non-payment at the day — the destruction of property of the delin- 
 quent to three times the amount. 
 
 According to the information I have received, and which I think 
 trustworthy, many of the persons named will be able, without much 
 suffering, to raise the $20,000, but many of them will not, as in some 
 cases it is all that the man is worth, and in some much more than he is 
 worth. 
 
 In some cases the only property the man owns consists of houses 
 and lots in the city of Lima or in Callao, with furniture, &c. To de- 
 stroy these by fire would endanger the whole city, neutrals and natives 
 suffering alike. It may be otherwise destroyed. 
 
 But this wanton destruction of private property seems to me to verge 
 very closely upon a violation of that humane law of modern warfare 
 which forbids making war upon unarmed, non-resisting private citi- 
 zens, or upon their individual property. And though the laws of war 
 seem yet to permit the levying of war contributions, I would suggest 
 that, according to the best and most approved practice of the civilized 
 nations of to-day that right should only be exercised upon municipalities 
 or other governmental divisions of a country, leaving the local authori- 
 ties (who much better know the ability of their respective citizens) to 
 apportion the burden. 
 
 I had the honor to call your attention to this point in my dispatch of 
 September 17 last, No. 194, in hopes that I might receive some instruc- 
 tions upon it, but as yet I have not had a word in reply. 
 
 You will permit me further to suggest, whether if an invading army 
 can levy its contributions directly upon private persons and destroy 
 their property for non-payment, that humane rule of modern warfare 
 which forbids making war upon, seizing, or destroying private prop- 
 erty without any offer or idea of compensation, cannot at any moment 
 be set aside by merely changing the name of the operation to that of "con- 
 tribution." For instance, the commander of the invading force going to 
 a hacienda or sugar estate, says to the owner, "I want $100,000 out of 
 your property for the support of my army or the expenses of the war ; 
 the laws of modern warfare do not permit me directly to seize it or to 
 destroy it, without giving you compensation or promising such com- 
 pensation in future. But I can demand it as a <■ war contribution,' 
 without any idea of compensation, and destroy all your property as a 
 penalty for non-payment of that contribution." 
 
 It is respectfully suggested that the distinction between these two 
 modes of proceeding is a very thin and not a very tangible one. (See 
 Woolsey's introduction to the study of international law, section 130.) 
 
 It is right, I think, in connection with the decree of General Saave- 
 dra of March 7, above referred to (So. ^f j), to remark that an influen- 
 tial portion of the most influential portion of the Chilian press is very 
 bitter and abusive toward General Baquedano, for not having sacked 
 and burned Lima ; and how far the severe measures now proposed for 
 
462 AFFAIRS IX CHILI, PERU, AXD BOLIVIA. 
 
 collection of the war contributions may have been produced by the in- 
 fluence of that press (an influence which prevented any desire for peace 
 at Arica) I do not know, but leave you to draw your own inferences. 
 
 It is right also that I should inform you that from public rumor, 
 (which, I think, is generally credited by the diplomatic corps, though I 
 have seen nothing official to warrant the belief), it is generally believed 
 here that the Chilian authorities here intend to carry away with them to 
 Chili not only all warlike material and machinery (of which no one 
 can complain) but all the paintings, statuary, and libraries belonging to 
 Peru and to the municipality of Lima. As to the last, it is sincerely to be 
 hoped that the Chilian Government may not dim the lustre of their vic- 
 tory by acts so repugnant to the sentiments of modern civilization ; and 
 for one, unless otherwise instructed, I shall be ready to join with the 
 diplomatic corps in an earnest protest against such barbarism. 
 
 I have, &c. 
 
 I. P. CHEISTIAXCY. 
 
 ITnilosure 1 in Xo. 251. — Translation.] 
 
 Mr. Garcia to Mr. Chiistiancy. 
 
 CIRCULAR. 
 
 Sik : The war which the Republic of Chili has waged against those of Peru and Bo- 
 livia during nearly two years carries with it a complete perturbation of the princi- 
 ples of international law, which, either by tacit consent or by the solemn stipulations 
 of treaties, regulate the action of States in their common relations. 
 
 Without dwelling for the present upon the origin, sufficiently elucidated already, of 
 this war, which knows no other cause than the sordid interest of our gratuitous 
 provokers and adversaries, it becomes my duty, now that extraordinary occurrences 
 have created an exceptional situation in the capital of the republic, to call the at- 
 tention of those nations friendly to Peru to the antecedents which, during the course 
 of the struggle, have marked such irregularities, and the development of which, tena- 
 ciously sought by Chili, is the only cause of the agitation in which the South Pacific 
 States still live. 
 
 The blockade of our port of Iquique, established by the same squadron which 
 brought the declaration of war against Peru, made by Chili, on the 4th of April, 1879, 
 was the beginning of hostilities against this country. 
 
 This act of premeditated surprise was the answer to the friendly steps being at that 
 moment taken in Santiago by our extraordinary mission charged with the re-estab- 
 lishment of harmony between Bolivia and Chili, which had been interrupted by the 
 warlike occupation of the Bolivian port of Autofogasta, consummated on the 14th of 
 February antecedent. 
 
 Iu order to justify its aggressive action, much has been said on the part of the Gov- 
 ernment of Chili iu regard to the treaty of alliance entered into years ago between the 
 Republics of Peru and Bolivia, but it is sufficient to read that document of mutual pres- 
 ervation to become convinced that it involves no hostile intention towards anyspecified 
 nation, nor much less does it bind them to make common cause in the complications 
 wherein one or the other nation might find itself entangled ; each one, on the con- 
 trary, reserving to itself the right of declaring when the c.ausus fwderis had arrived, 
 an emergency in regard to which Peru had certainly advanced no opinion whatever. 
 
 Solemnly bound as is Chili to the treaty of Paris, which abolished the so-called 
 paper blockades, or those of mere notification, nothing in that undertaking has 
 stopped her, and her vessels, after many months of useless delay in Iquique, employed 
 themselves in cruising in various belts of our coast, blockading, by means of simple 
 notifications, ports which they had not naval forces sufficient to close, and which they 
 consequently only visited occasionally. 
 
 Private property, out of the pale of military operations, the object of the greatest 
 respect in the struggles of modern times, and one of the most precious triumphs of 
 the civilization of to-day, has been, during the contest we sustain, that which has suf- 
 fered the most frequent and disastrous blows from the land and naval forces of Chili, 
 wheresoever these have presented themselves. 
 
 The useless and intentional destruction by fire of Pisagna, Tacna, Molleudo, Chorillos, 
 Barranco, Miraflores, Aucon, Chancay, San Nicolas, Palo Scco, and many other towns 
 
AFFAIRS IN CniLI, PERU, AND BOLIVIA. 463 
 
 and flourishing industrial establishments, as well as the removal and embarkation from 
 all of them of merchandise and household furniture, belonging to natives and foreign- 
 ers, in full view of all who happened to be present at these different places, bear unde- 
 niable testimony to the truth of my assertions. 
 
 Unarmed and unprepared as was Peru to sustain a war so carried on, it is not strange 
 that, wanting in a navy sufficient to oppose that of the enemy, the latter, domineering 
 over our extended coast, should with impunity carry his troops and ships wheresoever 
 he might propose to hostilize us. The natural conseqneuce of such military movements 
 could not be other than the unmolested occupation of the unprotected seaboard val- 
 leys and towns, or that occupation facilitated as a result of battles, wherein always, 
 and for the same reasons, we fought with inferior forces upon our side. 
 
 If, afcer the advantages gained by Chili, there had at any time followed the enuncia- 
 tion of the motives impelling her to go to war, and of the redress she expected to claim 
 in order to put an end to it, it is beyond doubt she would have evidenced a respect for 
 the customs established between nations who go to war to obtain the legitimate satis- 
 faction of grievances or reparation of wounded interests, and we, listening to her pro- 
 posals, and bringing them to tbe light of a calm discussion, would have put a decorous 
 ■end to the irreparable losses and disasters which the belligerents of to-day will forever 
 lament. 
 
 But, far from this, every military advance of Chili in our territory was the signal 
 for new armaments and increase in her expeditionary forces, while in tbe congress of 
 Chili and in her press it was that of unreserved propaganda of the annihilation and 
 extermination of Peru. 
 
 This plan reprobated by Christianity, and which will appear to the right minded im- 
 possible to couceive is nevertheless to all appearances that which presents itself to 
 us to-day. 
 
 Intentionally, and so as not to set forth in this tranquil document the bitterness 
 overflowing the heart of every patriot, I omit the details — moreover well known — of 
 the manner in which Chili presented herself in the Arica conferences, and of the in- 
 tentions there revealed by her plenipotentiaries, or to mention the pretended negotia- 
 tions of Miraflores. History, with her impartial criterion, will judge both events. 
 
 The Chilian Government, consistent with its already manifested designs for com- 
 pleting the ruin of Peru, it has been her most constant endeavor, since the occupation 
 of Lima and Callao on the 17th of January last, to promote all kinds of internal dis- 
 sensions. With this object it has established in the former city a semi-official uews- 
 paper, which, issuing from the government printing-office, has occupied itself since 
 its inauguration in spreading abroad all kinds of imposture, in defaming our public 
 men, discrediting the principles governing society, and artfully endeavoring to prove 
 the non-existence of a government, notwithstanding the fact that th.it of his excel- 
 lency the supreme chief has the obedience of the entire nation, without excepting -a, 
 single village. 
 
 These artful wiles, aimed against the sovereignty of Peru, did not at first possess the 
 gravity they have later attained, since, althougb the work of well-known authors, they 
 had until now no official character. 
 
 After the occupation of Lima, and it being in consequence thereof impossible to 
 treat directly with the honorable diplomatic corps residuntin thatcapital, the govern- 
 ment accredited as its confidential agent near that body Dr. Don Manuel Yi igoyen, 
 whose only duty was to continue the mediation by that corps, and accepted in Mira- 
 flores on the 14th of January last. 
 
 The interposition of the friendly powers, at the same time that it consulted the de- 
 corum of the belligerents, wis a sure guaiantee of justice and exactness in the solu- 
 tion of the pending conflict, but the peremptory declaration made by the Chilian 
 agents that they would in no case admit that interposition, a resistance impossible of 
 any worthy explanation, although it clearly showed the true views of Chili in the 
 present war, frustrated that efficient mode of solution. 
 
 His excellency the Supreme Chief, wishing nevertheless to do away with ev # en the 
 remotest pretext under which our enemies might shelter themselves in order to carry 
 on the war, named plenipotentiaries, fully authorized to negotiate directly a peace 
 with those whom the Government of Chili might see fit to designate with like object. 
 
 The conciliatory efforts of our ministers, Doctors D. Antonio Arenas aud D. Lino 
 Alarca, have been entirely sterile. Messrs. Vergara and Altamirano, who state that 
 they possess full powers to negotiate a peace as representatives of Chili, declared that, 
 •"refusing to treat with his excellency the supreme chief they considered themselves 
 as carrying out their instructions, which ordered them not to treat save with a gov- 
 ernment sulidly sustained by the national will." General Baqnedano had also replied 
 to our envoys that Colonel Don Francisco Vergara and Dju Eulogio Altamirano were 
 the plenipotentiaries named by the Republic of Chili to treat with those who might be 
 ■designated by the government iv'hitih Peru might desire to g'ire herself. We have here, there- 
 fore, the commander-iu-cbief of the Chilian army and the plenipotentiaries of the na- 
 tion constituted as deciders and arbitrators of the legitimacy of the government of 
 
464 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 Peru We have here the fact, new in the annals of the political relations between 
 peoples, of the refusal to admit by a stranger as a national government that which the 
 whole country recognizes as such, and iu order that the deformity may he more mon- 
 strous life and impulse are given, beneath the shad >w of the Chilian flag, to meetings 
 whose streugth lies there alone, establishing thereby an odinus protectorate that will 
 always be repudiated by the Peruvian people, whatever the depths of their misfortunes, 
 and iu spite of the terrible martial law with which the semi-official organ at the same 
 time threatens public manifestations tending to defend the autonomy and independ- 
 ence of the nation, however tranquil they may be. 
 
 I leave to the profound sagacity of your excellency the appreciation of events which 
 you yourself have witnessed, and the truth of which is perfectly known to you. 
 
 The authority of his excellency the supreme chief having been derived from thecon- 
 fidence which the people of Peru have deposited in him, and which they still maintain, 
 strengthening it daily by new proofs of adhesion, he will maintain unshaken that au- 
 thority until he can deposit it in the hands of the national representatives, laying it 
 down before the assembly elected by the people, which will soon meet, in accordance 
 - with the supreme decree of this date, so that it may also freely deliberate upon the 
 future destinies of the country, in view of the situation created by the causes to which 
 I have referred. 
 
 Be pleased, your excellency, to place these facts before the Government of the United 
 States of North America, so worthily represented by yonr excellency near the Govern- 
 ment of Peru. 
 , With sentiments of the highest consideration and esteem, I am, &c, 
 
 AURELIO GARCIA, x GARClA. 
 
 jlnclosure 2 in No. 254.— Translation.] 
 
 Decree or hando of General Saavedra (at present commander-in-chief) of the oth of March, 
 
 1881. 
 
 No. 496. 
 
 Having seen the foregoing note of the minister of war in the field, 
 
 I decree : 
 
 1st. There shall be established in the city of Lima an office of " Collector of the con- 
 tributions of war," whose functions and obligations are as follows : 
 
 1st. To take under its charge and inventory the property and things of every kind 
 which the public buildings and establishments (of which the army has taken posses- 
 sion) may contain, as well as all articles of a warlike character. 
 
 2d. To point out and take note of all that pertains to the public administration and 
 which may not yet be in possession of the army, for the purpose of providingthe proper 
 measures in reference thereto. 
 
 3d. To ascertain and take accurate note of all things which have been remitted to 
 Chili, its destination, and the party sending the same. 
 
 4th. To inquire what remittances may be properly made to Chili, and to effectuate 
 those that shall be determined upon, specifying the kinds, with all the details and a 
 proper valuation, directing them to the proper parties, as shall be determined upon. 
 
 5th. To propose the contributions which are to be collected for the maintenance of 
 the army, and in general for all the expenses which the military occupation occa- 
 sions. 
 
 6th. To collect the contributions which shall be decreed, and to deposit them in the 
 commissariat of the army. 
 
 7th. ,T° represent the supervision which may be decreed in any of the public estab- 
 lishments or institutions, in the administration of funds. 
 
 2d. This office may establish branch offices outside of Lima, with the same object, 
 at other points occupied by the army, previous approval being obtained. 
 
 3d. The chief of the office shall propose the rest of the employe's and their sala- 
 ries and a regulation which comprehends the proceedings to be had to fulfill the objects 
 of this office. 
 
 4th. Don Alvaro Francisco Alvarado is named chief of the office for the collection 
 of contributions of war, with the salary and compensation which he now has as an offi- 
 cer of the general intendencia of the army and navy in active service. 
 
 Let it, be recorded and published, and let an account be given to the supreme gov- 
 ernment for its approbation. 
 
 C. SAAVEDRA. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 465 
 
 I Enclosure 3 in No. 254.— Translation from Aotualidad, March 7, 1881.] 
 
 THE CONTRIBUTION OP WAR, ONE MILLION MONTHLY. — LIST OP THOSE WHO MUST PAT 
 
 FOR MONTH OP FEBRUARY. 
 
 Cornelio Saavedra, general of brigade and in chief of the army of operations of 
 
 the Republic of Chili. 
 
 Whereas, having in view the execution of article 3 of the decree of the 9th Febru- 
 ary last, and the note of the minister of war of the 5th of the present month, 
 
 I decree : 
 
 1st. That the department of Lima and Callao shall pay monthly the sum of one mil- 
 lion of pesos in silver, or its equivalent in current money, according to the exchange 
 of the time, to meet the expenses of the army of occupation. 
 
 2d. The million for the month of February last shall be paid by the persons men- 
 tioned below, each of whom shall contribute twenty thousand pesos iu coin for his 
 quota. 
 
 [Here follow fifty names for 20,000 pesos each.] 
 
 3d. The space of eight days is conceded from this date for the persons designated 
 in the foregoing article to present themselves to complete the payment of the quota, 
 fixed at twenty thousand pesos, in coin, assigned to each, into the office charged 
 with the collection of the war contributions ordered by the decree of the 5th of the 
 present month. 
 
 4th. If any of the persons named shall not pay his quota within the time fixed pro- 
 ceedings shall be taken to destroy, for the present, of the property of the delinquent 
 at least three times the value, without prejudice to the right of personal compulsion. 
 
 5th. The chief of the general staff, Col. Don Pedro Lagos, is charged with the exe- 
 cution of this decree, and to this end the chief of the office of collection shall give an 
 account on the same day of the term fixed by article 3 of the persons who have failed 
 to make such payment. 
 
 6th. From this date no person of Peruvian nationality can absent himself from 
 Lima or Callao without a passport previously issued from the general staff, under the 
 penalty to the infractors of being tried before a military tribunal. This article does 
 not apply to those who travel only between said two cities. 
 
 Let it be recorded and published. To the end that this decree shall be brought to 
 the knowledge of all, it shall be published by proclaiming the same in public and fix- 
 ing it up in hand-bills in the most public places of this city and Callao, it being the 
 intention that this publication shall have the effect of a personal notice. 
 
 Given at the palace of government in Lima on the 7th of March, 1881. 
 
 CORNELIO SAAVEDRA. 
 
 In'o. 312. 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 256.] Legation of the United States, 
 
 Lima, Peru, March 16, 1881. (Received April 11.) 
 
 Sie : Referring to my dispatch No. 254 (last paragraph), I have the 
 honor to inform you that since that I have ascertained that, even be- 
 fore that letter was written, the whole of the public library, known as 
 " Biblioteca de San Pedro," in Lima, belonging to the G-overmnent of 
 Peru, and the largest and most valuable iu South America, had al- 
 ready been taken by the Chilians and put on board the fleet to be sent 
 to Chili. 
 
 And before and since that dispatch they have, as I am informed, also 
 taken from the exposition grounds and buildings belonging to the Be- 
 nevolent Society of Lima all the paintings and pictures in the build- 
 ings on those grounds, all the collection of animals (a menagerie of 
 them), and everything of value that could be taken ; the laboratory 
 and the appurtenances of the School of Medicine, amounting to over 
 half a million of dollars, and everything that could be moved from the 
 school of Arts in Lima, consisting of models, machinery, &c, for teach- 
 ing in the arts and sciences and in the various trades. This School of 
 Arts belonged to the Government of Peru. 
 S. Ex. 79 30 
 
466 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 For myself, I look upon this as a violation of the rules of civ- 
 ilized warfare, which calls for an earnest protest on behalf of all civil- 
 ized nations ; and I have been in favor of such protest being made by 
 the diplomatic corps here. I am satisfied that the large majority of 
 the corps would join in it ; but there are some who, while agreeing that 
 it is contrary to the modern principles of warfare, yet, for reasons of 
 policy, think it not best to make the protest, lest it might prejudice the 
 Chilian Government against neutrals here. 
 
 A meeting of the diplomatic corps was held yesterday at my sugges- 
 tion, made the day before. But I was takeu sick the night before and 
 was totally unable to attend ; and I understand no action was taken 
 by the corps upon this point. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 P. S. — If I thought the failure of protest could in any manner oper- 
 ate as an acquiescence in the propriety of such acts on the part of Chili, 
 I should protest against them, though I might stand alone. But as I 
 am not accredited to Chili, I do not suppose that my neglect to protest 
 can be construed into an approval bv mv government. 
 
 I. P. C. 
 
 No. 313. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 257.] Legation op the United States, 
 
 Lima, Peru, March 16, 1881. (Beceived April 11.) 
 
 Sir : Beferring to my dispatch No. 254, in reference to the attempt 
 to form a new government of Peru, under the auspices of the Chilian 
 authorities, I have the honor now further to inform you that the at- 
 tempt, though for a time apparently abandoned, has since been per- 
 sisted in ; and on the 12th instant that new government was installed 
 at the small hamlet (too small to be called a village) of Magdalena, 
 about 3 miles from Lima, which has been declared neutral territory; 
 and that the provisional president, Francisco Garcia Calderon, has ap- 
 pointed Aurelio Denegri president of the cotmcil and minister of finance, 
 Mamtel Velarde minister of government and public works, Jose Mi- 
 guel Velez, minister of justice and public worship, and M. M. Galvez, 
 minister of foreign relations. 
 
 For your information in respect to this new government, I inclose 
 three numbers* of El Orden, the organ of this government, of the 12th, 
 14th, and 15th instant, which I have no time to translate, but which 
 will show the progress of things up to this date. 
 
 As Pi^rola still claims to be the Government of Peru, the great ques- 
 tion for me and other ministers here to decide is that of recognition, 
 all having heretofore recognized Pierola. My own view is that I cannot 
 recognize this new provisional government until it shall appear to be a 
 government of Peru, instead of Lima and Callao ; in short, without in- 
 structions from you, I cannot recognize it until satisfied from a vote of 
 the people or clear acquiescence the larger portion of the people seem to 
 have adopted it, nor until it shall show some evidence of the power to 
 sustain itself as the Government of Peru. 
 
 * The inclosures aie lengthy and in the Spanish language. They will be furnished 
 if deemed necesgary. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 467 
 
 If, for instance, Pterola holds one-half of Peru and Calderon the 
 other, I could not recognize the latter, unless so instructed by the De- 
 partment. 
 
 I am just informed that this new provisional government, with the 
 aid of a committee of the diplomatic corps, have made an arrangement 
 by which a little time is given for the payment of the $1,000,000 due 
 on the 14th on their paying $200,000 to-day, and that the penalty for 
 non-payment is not to be enforced by the proposed destruction of prop- 
 erty. But I cannot give you the particulars with certainty, as I am 
 unable to go out. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 No. 314. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 * 
 
 No. 261.] Legation of the United States, 
 
 Lima, Peru, March 21, 1881. (Eeceived April 16.) 
 Sir : Eeferring to my dispatches Nos. 253 and 259, I have now the 
 honor further to inform you in further answer to your dispatch No. 
 123 that as the Chilian authorities here had constantly declared their 
 fixed determination not to accept the arbitration, mediation, or even 
 the good offices of any other government in bringing about a peace 
 with Peru and Bolivia, I could see no door open by which I could ap- 
 proach the Chilian authorities here, without appearing to be officiously 
 impertinent and intermeddling. Nevertheless, ou the 16th instant, 
 hearing that General Saavedra and Mr. Altamirano (the last of whom 
 seemed to be the representative of the Chilian Government here in 
 matters not strictly military), were to leave on that day for Chili, I left on 
 that day with Mr. Vergara, the Chilian secretary of war at the palace, 
 to be shown to Mr. Altamirano before he should leave, of copy of so 
 much of your dispatch No. 123 as reads as follows : 
 
 I find it necessary to desire you to press upon the Government of Peru, and on such 
 Chilian authorities as you may have access to, the earnest desire of this government 
 to bring about a peace without unnecessary delay, and upon reasonable and honorable 
 terms compatible with the true welfare of all the belligerents, so as to be lasting. 
 
 I thought it well that Mr. Altamirano should take this, or the 
 knowledge of this, with him to the Government of Chili. But I did 
 not think it wise to go any farther at this moment, or without farther 
 instructions from your Department, as it appears to me quite evident 
 that the Chilian Government have determined to make Peru drink the 
 last dregs in the cup of national humiliation, in any peace she will be 
 ready to grant, and that nothing short of active intervention of the 
 United States, or some foreign power or powers, can defeat the determi- 
 nation. And, though it is not for the interest of the United States or 
 any other neutral power thus to humiliate Peru, yet in view of the tra- 
 ditional policy of the United States, it would not be possible for me 
 thus to intervene between the three belligerents, towards whom our 
 government entertains equally friendly sentiments. I could only be 
 warranted in doing so by the express directions of my government. 
 
 Please see my next dispatch, No. 262, in answer to your No. 129. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
468 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 No. 315. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 [Confidential extract.] 
 
 Kb. 262.] Legation of the United States, 
 
 Lima, Peru, March 21 , 1881. (Received April 16.) 
 
 Sir : I have the honor to inform you that I have waited some days, 
 in hopes of being able to give some intelligible answer to your confiden- 
 tial dispatch Xo. 129 ; but as yet I can only tell you what has taken 
 place between me and Mr. Suarez, and give you such impressions upon 
 the question of the practicability of his schemes as the present aspect 
 of affairs has produced upon my own mind. 
 
 1st. I have had several interviews with Mr. Suarez ; in which, how- 
 ever, I have been able to get no very definite ideas from him as to the 
 modus operandi of securing the adoption of his plan. 
 
 He has, as he informs me, had interviews with the French minister 
 here, who gives him no definite encouragement, and professes to be 
 waiting for instructions from his government. 
 
 2d. My own impression is that, though this plan might have been ac-' 
 ceptable to Chili in an earlier stage of the war, say before the battle of 
 Tacna, and possibly before the conferences at Arica, yet that the time has 
 now passed when it could be made acceptable to Chili, which is so flushed 
 with her recent victories, and so confident of being able to force Peru 
 into compliance with any demand she may choose to make, that she 
 would consider such a proposition so wholly inadmissible that nothing 
 short of the active, and, perhaps, hostile intervention, of the United 
 States, England, and France, or some of them, could now compel her to 
 accept the plan proposed. 
 
 3d. I have some reason to think that Mr. Suarez has been indiscreet 
 in allowing the programme to become public before any practicable 
 plan could be adopted for its accomplishment. The last Panama Star 
 and Herald, which arrived here, has the programme set out in full, and 
 copied from the Xew York Herald in an article very decidedly hostile 
 to it. This will reach Chili in a few days, and will so arouse the war 
 party that the government will not dare to entertain such means of set- 
 tlement for a moment. 
 
 In view of these considerations I have not thought it best to avail 
 myself at present of the liberty granted me to " communicate to my 
 colleagues, Mr. Osborn and Mr. Adams, so much of this communication 
 as occasion might suggest, but always in confidence," especially as I 
 could not well communicate a part without the whole ; and Mr. Suarez 
 concurs with me that, at present, it would not be best to make such 
 communication. He and I are satisfied that both Peru and Bolivia 
 "would gladly accept this programme as a means of solving the pres- 
 ent difficulties ; and that the whole difficulty would be in procuring the 
 assent of Chili. He therefore talks of going to Chili ; but I doubt 
 •whether he will do this. 
 
 As this is a purely confidential dispatch, I avail myself of the immu- 
 nity which that confidence affords, to express to you certain opinions 
 and impressions, which I would not venture upon if the dispatch could 
 be expected to be pubUshed to the world. 
 
 1st. The principal foreign trade of Chili is with England, by way of 
 the cape or the straits, and many of the largest houses of trade in Chili 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 469 
 
 are English. Many of the officers in the Chilian army and navy are 
 Englishmen ; and Chili has obtained from England most of her arms, 
 at least artillery, as well as her naval vessels. 
 
 From these and other causes the sympathy between Chilians and the 
 English has been much stronger than between them and the people or 
 Government of the United States. The Chilian Government and people 
 are therefore much more sensitive to English than to American influ- 
 ence. To some, though to a much less extent, these remarks in refer- 
 ence to England apply also to France, though it may be doubted whether 
 , the sympathy between Chili and France is such as, in any great degree, 
 to affect results. 
 
 On the other hand, thoxigh England has a much larger commerce 
 with Peru than the United States have, and the only line of steamers 
 along her coast is English ; yet the sympathies of both the government 
 and people of Pern have been much stronger for the United States than 
 for England, and I may truly say than for all the rest of the world. 
 They have constantly hoped that the United States would, in some way, 
 interfere to protect them from the calamities which now overwhelm 
 them. And I am entirely confident that the Government of Peru 
 (whatever that may turn out to be), as well as all her intelligent (if 
 not all her) citizens would welcome & protectorate of the United States, 
 and I think, that those of Bolivia would do the same. 
 
 As a matter of opinion, (sustained, I think, by the majority of intel- 
 ligent Americans here), I will go farther and say, I believe the people 
 of Peru would be glad if their country could be annexed to the United 
 States. * * * One thing, however, is, I think, entirely certain, that 
 the present war here has reached such a stage, that the influence of 
 the United States on this coast upon any question connected with the 
 present war, or the settlement of peace, can only be secured by active 
 intervention, in some form, against the will of the Chilian Government. 
 Whether our government is prepared to take this attitude, it is for your 
 Department, and not for me, to decide. 
 
 I am ready to follow any instructions which your Department may 
 see fit to give. 
 
 I have &c, 
 
 I. P. CHRISTIANCY. 
 
 P. S. — Since writing the above, I am informed by Mr. Suarez that he 
 intends to leave for the United States by the first steamer. 
 
 No. 316. 
 
 Mr. Christianey to Mr. Blaine. 
 
 No. 263.] Legation op the United States, 
 
 Lima, Peru, March 22, 1881. (Received April 16.) 
 Sir : Eeferring to my dispatches Nos. 254 and 256, I have the honor 
 to say that when those dispatches were written, I had only received the 
 facts by general public report. I now inclose to you the letter of Senor 
 Manuel de Odriozola, the director of the Biblioteca National del Peru, 
 dated March 10, but received only on the 19th, showing the spoliation 
 of that library by the Chilian authorities, together with a translation 
 of the same. 
 
470 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 Beferring to my dispatch, No. 256, in which I stated the value of the 
 laboratory, &c, of the School of Medicine taken by the Chilian authori- 
 ties at $500,000, 1 have now to say that I think the value was overstated. 
 I now understand that the laboratory was purchased in Paris for 
 600,000 francs. I cannot get reliable official evidence in these matters. 
 But the fact of the laboratory having been taken by the Chilian forces 
 (whatever may have been its value) is beyond doubt. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 [Incloau-e No. 1 in No. 263.— Translation.] 
 Mr. Olriozola to Mr. Christiancy. 
 
 Lima, March 10, 1881. 
 
 The undersigned, director of the national library of Peru, has the honor to address 
 himself to your excellency, in order that you may bring to the knowledge of your gov- 
 ernment the fact of the crime against civilization committed by the Chilian authorities 
 in Lima. 
 
 To take as their property libraries, archives, cabinets of science and anatomy, and 
 others -which symbolize the intellectual progress of a nation, or help to facilitate its 
 development, is to restore to war a character of barbarism foreign to the civilization 
 of the age and the practices of Christian and enlightened belligerents, and to the uni- 
 versally recognized principles of right. 
 
 The Library of Lima was founded in 1822, a few months after the declaration of in- 
 dependence, and was considered by all the literary travelers, who have visited it, as 
 the best among the libraries of Latin America. Being enriched through the protection 
 of subsequent governments, and the gifts of private parsons, it had, at the close of 1880, 
 very nearly 50,000 printed volumes (not reckoning duplicate editions), and over 800 in- 
 teresting manuscripts. True bibliographical curiosities, among which were not a few 
 unreplaceable, or books printed during the first century after the discovery of printing, 
 and which, as your excellency knows, are priceless works at present, very rare, either 
 from the copies being exhausted or for not having been reprinted, especially in the 
 branch of literature and history, the production of nearly all the chroniclers of Amer- 
 ica, a section in which the establishment was unrivaled, and books presented by for- 
 eign governments, among which the United States of America figured largely. Such, 
 Mr. Minister, was the Library of Lima, a library of which we, the sons of Peru, were 
 justly proud. 
 
 The capital of Lima having been surrendered to the Chilian forces the l?th January, 
 more than a month elapsed, during which the invaders respected the institutions of 
 learning, no fear was felt up to that time that the Chilian authorities would dare to 
 consider as spoils of war the cabinets of the School of Medicine and university, the ap- 
 paratus of the School of Arts and Mines, or the important collection of the national 
 archives, and of other institutions of purely scientific, literary, or artistic character. 
 
 On the 26th of February, at 3 p. m., the keys of the library were demanded of us, and 
 from that day forward the most scandalous robbery was carried on, the books being 
 carried to Callao in carts, and, I understand, they being shipped to Santiago. The 
 library has been sacked as though it represented war material, and but a few more 
 days will be necessary to finish this act of rapine, carried on under the shadow of the 
 flag of a people considered as civilized and enlightened. 
 
 In addressing myself to your excellency, I do it in order that the protest which I 
 make in the name of civilization, morality, and justice may appear before America 
 and humanity, complying in this with a double duty imposed upon me, by my duty as 
 the director of the library, and my patriotism. 
 
 With sentiments of high consideration and respect, I have the honor to subscribe 
 myself, your excellency's obedient servant, 
 
 ML. de ODKIOZOLA. 
 
 His Excellency I. P. Christiaxcy, 
 
 Minister of the United Stales in Lima. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 471 
 
 No. 317. 
 
 Mr. Ghristianey to Mr. Blaine. 
 
 No. 264.] Legation of the United States, 
 
 Lima, Peru, March 23, 1881. (Received April 16.) 
 
 Sir : I have the honor to inform you that Sefior Manuel M. G-alvez, 
 the secretary of foreign relations under the new government, set up or 
 attempted to be set up for Peru, called to see me yesterday, and especi- 
 ally to inquire what attitude the United States would be likely to take 
 upon the question of peace with Chili, &c. 
 
 I explained to him fully that the position of our government had thus 
 far been one of strict neutrality between the belligerents ; that while 
 our government was ready now, as always heretofore, to use her good 
 offices by way of mediation or arbitration (to bring about a peace), with 
 theconsentof all the belligerents ; yet that I had receivedno instructions 
 which would indicate that she was willing to enter upon an active inter- 
 vention against the will of Chili or the other belligerents ; that, while I 
 was satisfied that our government would regret to see a peace forced upon 
 Peru, which would humiliate her and degrade her, and was desirous of 
 a peace which should be honorable and beneficial to all parties — and 
 therefore likely to be lasting — yet in view of the declared intention of 
 the Chilian authorities hot to admit the mediation or good offices of any 
 other government in fixing the terms of peace, and in view of the traditional 
 policy of our government not to intervene in the affairs of others, except 
 with the consent of all the nations concerned, I could give him no assurance 
 that she would now be willing to depart from that policy and intervene be- 
 tween Chili and Peru, againstthe will of, and therefore in ahostile attitude 
 to, the former ; but that I had kept my government informed, and should 
 follow any instructions 1 might receive. He then inquired what I 
 thought of the policy of sending a special envoy to the United States. 
 I frankly told him that I saw but one objection to this, and that this 
 might be but temporary, viz., that as yet it did not sufficiently appear 
 that this new government was the government of Peru, and that, untd 
 this should appear, the United States might not be willing to recognize 
 it as such ; that, inasmuch as our government, with all the other govern- 
 ments represented here, had recognized the Government of Pierola, I 
 should myself, in the absence of instructions to the contrary, be com- 
 pelled to wait until it should appear by vote or acquiescence of the peo- 
 ple of Peru, that the majority approved or acquiesced in the new 
 government, and that I was inclined to think my government would be 
 likely to take the same view of the question ; and that, as yet, I had 
 seen no sufficient evidence of this approval or acquiescence ; but that 
 the very moment I should have such evidence I should recognize the 
 new government, without waiting instructions ; and that all our govern- 
 ment wished to know was what is the Government of Peru, when they 
 would at once recognize it; but they could not make themselves parties 
 in a contest between two governments, both claiming to be the Govern- 
 ment of Peru, until the people of Peru, had decided that question for 
 themselves, &c. 
 
 I learn this morning (in a somewhat confidential manner) that this 
 new government intends to send by the steamer of to-morrow, as envoy, 
 or agent, to Washington, a Mr. Jos6 Manuel Cantuarias. So far as I 
 can learn, he has the reputation of an honest man, of considerable 
 
472 AFFAIRS IN CHILI, PEKTJ, AND BOLIVIA. 
 
 ability. He has been consul of Peru to China, and has held, with credit, 
 several offices under the Government of Peru. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 No. 318. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 265.] Legation op the United States, 
 
 Lima, Peril, March 23, 1881. (Beceived April 16.) 
 
 Sib : Eeferring to my dispatch ZSb. 203, 1 have the honor to inclose 
 to you an extract from an editorial in the Actualidad, the Chilian Gov- 
 ernment organ here, of March 21, with a translation, showing that the 
 Chilian commanders claim, as conquerors, the right to take the appa- 
 ratus of the School of Arts, as well as books, scientific apparatus, and 
 paintings ; that they place all the public buildings, including the palace 
 of government, ending with the last hut or tent of the guards, and all 
 public works, the railroads, with all the bridges over water-courses 
 crossing public roads, on the same ground. 
 
 That yon may understand the full significance of this, I will say that 
 the Orden, the only paper here published in the interest of the new 
 Peruvian Government, had complained in a very mild and subdued form 
 of the taking of libraries, scientific apparatus, and the property of 
 schools and colleges ; and this editorial in the Actualidad (the whole 
 of which is very severe) makes this answer. 
 
 It is true they place the right claimed upon the ground of indemni- 
 fying themselves for the expenses of war, and compelling the enemy to 
 put an end to the war. Brat it is easy to see that this pretext may 
 always be put forth with equal justice, and thus the obligation to re- 
 spect libraries, paintings, works of science and art, as well as schools, 
 colleges, and public buildings, may always be evaded, if it can be in 
 the present case. 
 I have, &c, 
 
 I. P. CHBISTIANCY. 
 
 llnclosure ~So. 1 in Xo. 265. —Translation. — From La Actualidad, Hard 21, 1881. ] 
 * -* # * » * * 
 
 The Chilian authorities have determined to follow and will still continue to dispose 
 of national property of Pern, with the indisputable right, conceded by all the nations 
 of the world to the conqueror, when it is to repay himself the expenses of the war, 
 and when he has at hand the means of coercion, which obliges the enemy to put an end 
 to the war, in order to prevent worse evils. 
 
 This is, nevertheless, the protest of the gentlemen of El Orden, what the Chilian au- 
 thorities have done with the work-shops of cartridges, the machines of the school of 
 arts, with boobs and instruments of sciences, and with one historical picture. 
 
 They can do it to-morrow with all the public bnildings, beginning from the palace of 
 government and ending with the last sentry-bnx. 
 
 They can, the day after to-morrow, still follow in doing so with all the public works, 
 beginning with the railroads and ending even with the bridges over the water-courses 
 crossing public works. 
 
 This is the right of the conqueror, and that of the conquered is to keep silence when 
 he has not sought in time the means to avoid those evils of which he complains. 
 
 Consequently, we protest against the protests dissemblingly initiated by El Orden 
 No. 14, accentuated in No. 15, and probably so out of all limits in to-day's number, or 
 to-morrow's, or that of any of those days. 
 
APFAIES IN CHILI, PERU, AND BOLIVIA. 473 
 
 To begin by estimating, to follow with complaints, and to continue with charges, may- 
 end very soon, in great haste, with the armed protest, which is the last tone of the 
 scale. 
 
 No. 319. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 266.] Legation op the United States, 
 
 Lima, Peru, March 23, 1881. (Eeceived April 16.) 
 
 Sir: The new Peruvian Government, having on the 14th instant ar- 
 ranged with the Chilian authorities here to pay down 200,000s silver, 
 of the million then due for February, according to the Chilian decree, 
 and to pay the balance, 800,000 silver soles, within one month, I here 
 inclose you copy and translation of the decree of this Peruvian Govern- 
 ment, dated the 14th, but published only yesterday, for raising the 
 amount in the shape of what is called a loan, and which, so far as the 
 decree shows, would seem to be a voluntary loan ; but as it seems to me 
 quite probable that few will come forward voluntarily to take the loan, 
 I presume the government must look to some means to enforce it as a 
 forced loan ; if not, I am inclined to think the money will not be raised 
 in time. 
 
 The three-and-a-half pence mentioned in the decree is intended as the 
 value of the paper sol, practically the only currency now circulating in 
 Peru, the gold and silver coin having almost entirely left the country, 
 as is usual, if not universal, where an inferior currency is in general 
 circulation. 
 
 And Peru, from having formerly been thought the richest country in 
 precious metals in the world, is now probably the poorest for practical 
 purposes, though she still has inexhaustible mines, mostly un worked, in 
 the interior. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure in ISo. 266. — Translation. ] 
 
 Magdalkna, March 14, 18-1. 
 
 In conformity to the agreement of the council of ministers, proceed to raise a na- 
 tional loan, destined to cover the war contribution imposed by. the chief of the Chilian 
 forces, on the following conditions : 
 
 1st. The loan will draw an interest of six per cent, per annum. 
 
 2d. It will be repaid in fiscal notes, at an exchange not less than three and a half 
 pence per sol. The amounts paid in, for this loan, in pounds sterling, shall be reck- 
 oned at this same exchange. 
 
 3d. The reimbursement shall be made out of the outstanding and accruing taxes on 
 property in Lima and Callao; 30 per cent, of the free income of the Calloa custom- 
 house, and with the income of the stamp contribution. 
 
 4th. The administration and recovery of the taxes and stamp contribution shall be 
 confided to a commission selected from among the lenders. 
 
 5th. The refunding shall be at par, and by lots, paying the capital and interest on 
 same. 
 
 Communicate it ; have it registered and published. 
 
 Signature of his excellency, 
 
 DENEGPJ. 
 
474 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 320. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 273.] Legation op the United States, 
 
 Lima, Peru, March 31, 1881. (Eeceived April 25.) 
 Sir : Beferring to my dispatch No. 264, 1 have now to inform you 
 that, from all present appearances, the new Peruvian Government, of 
 which Mr. Garcia Calderon is the head, does not seem likely to be rec- 
 ognized by the people of Peru ; and so far as any manifestations of the 
 popular will have come to my knowledge, the mass of tne people seems 
 likely to continue its adherence to the Dictator Ph§rola. Circumstances 
 yet to occur may change all this ; but as yet, from the best information 
 I can get, the very localities on whose concurrence the new government 
 counted, still adhere to Pierola, and, even here in Lima, the municipal 
 government, at a meeting held yesterday, unanimously decided not to 
 recognize it. And when the alcalde (mayor) went to consult the Chilian 
 secretary of war at the palace, he was informed that the Chilian Gov- 
 ernment did not yet recognize the new government (waiting, doubtless, 
 to see that it should first be recognized by the people of Pern). And 
 when the alcalde asked what the municipal government should do, incase 
 the new pretended government should demand the building of the mu- 
 nicipality and seek to turn them out, the secretary of war replied, in sub- 
 stance, that he did not know ; but that if any disturbance of the peace 
 .should take place in a quarrel between the new government and the 
 municipal authorities, he should send them all alike to prison. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 No. 321. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 276.] Legation of the United States, 
 
 Lima, Peru, April 1, 1881. (Received April 26.) 
 Sir : Referring to my dispatch No. 256 (second paragraph), in which 
 I stated, in substance, upon report, among other things, that the Chil- 
 ians had taken from the exposition grounds, belonging to the Benevo- 
 lent Society of Lima, the collection of animals there, I have now to 
 make this correction, A*iz : That these animals bad not then been taken 
 (a few days since), but preparations had been made to take them, and 
 the cages were already taken to the grounds, in which they were to be 
 shipped, and there is no doubt they will be taken. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 322. 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 277.] Legation of the United States, 
 
 Lima, Peru, April 4, 1881. (Received April 26.) 
 
 Sir : Beferring to my dispatches, Nos. 257, 264, and 273, in reference 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 475 
 
 to the question, What is the Government of Peru, I have now the honor 
 further to inform you that since my dispatch No. 273, the alcalde (mayor 
 of the old municipality under the Pierola government) refused to 
 carry out the unanimous resolution of the municipal council, and 
 allowed the council of 1879 to come in and take possession, in accordance 
 with the decree of the provisional government of Garcia Oalderon. I 
 will further say that this is the only indication, since the above dis- 
 patches, of the acceptance of the provisional government by Peru. 
 
 Even the northern provinces, upon which it counted (and when I 
 supposed the terror of the Chilian arms would have secured the adher- 
 ence of the people), seem to be overwhelmingly opposed to the provis- 
 ional government of Calderon, and to adhere to Pierola. This is also 
 the case in the south. Areqnipa, upon which the new government re- 
 lied, so far as it has spoken at all, has pronounced in favor of Pi6rola, 
 and so in Pisco, and almost everywhere ; though in all these localities, 
 many of the people, feeling the absolute necessity of an immediate 
 peace, were disposed to support the new government, which, however, 
 to me seems, thus far, to have lost rather than gained in popular favor. 
 
 The interests of Peru undoubtedly require the earliest possible peace, 
 and in this view, I am -inclined to think it would be best for Peru to 
 acquiesce in the new government. But my own opinion of the expe- 
 diency of the one or the other can have no weight upon the question 
 of recognition ; all I am to regulate my own conduct by upon that ques- 
 tion is the consideration, which is the government of Peru ; and how- 
 ever much I might think the majority have erred in their choice, yet, 
 upon the question of recognition, I shall be compelled to follow that 
 decision unless I receive other instructions from your department. At 
 present' all the indications are that nearly all the inhabitants east of 
 the Andes still adhere to Pierola, and that the same is the fact with 
 the majority between the mountains and the coast. 
 
 Each of these governments (so called) has called a congress — that of 
 Pierola, to meet at Ayacucho on the 3d of June, and that of Garcia Calde - 
 ron, to meet at Lima or its vicinity on the 15th of May. If both suc- 
 ceed in getting a congress together, it would seem that confusion will 
 be still more confounded and that chaos must reign supreme. 
 
 Referring to my dispatch No. 257, I will further say that this pro- 
 visional government assumed to pay, and I think did pay, $200,000 of 
 the forced contribution of $1,000,000, imposed by the Chilian authori- 
 ties upon fifty Peruvian citizens of Lima and Callao, and further as- 
 sumed to pay the balance of $800,000 by the 14th April. And in the 
 attempt to carry out this undertaking this provisional government has 
 assessed the leading capitalists such sums as in their judgment they 
 can pay, including in this assessment a few Americans and other neu- 
 tral citizens (which the Chilians did not). 
 
 Some of our American citizens domiciled here will doubtless pay 
 uuder protest, as I have advised all who have applied to me to do, it' 
 they pay at all. Others will not pay, but by my advice will insist, 
 without admitting the validity of the provisional government, that 
 even if the legitimacy of the government be admitted, it has no right 
 to compel American citizens to pay, as it is a forced contribution or 
 forced loan, which is forbidden by the second article of our treaty of 
 September 6, 1870, with Peru. 
 
 If compelled by force to pay, I shall advise tliem to pay muter pro- 
 test. Of course, if a general tax should be ratably imposed upon the 
 real estate of Lima, &c, including American citizens, by a government 
 acknowledged as the Government of Peru, or being in fact such, taxes 
 
476 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 of this kind would have to be paid in the same manner as if the owner 
 were a native citizen of Peru. But the present imposition is not of 
 this character, but is simply imposed upon the person. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 P. S. — Since writing the above, one American citizen who protested 
 against the right to impose 40,000 soles as a contribution to meet the 
 Chilian requisition, and whose protest was in the form I had suggested, 
 relying upon our treaty, has just informed me that he has seen Garcia 
 Calderon, the so-called. President, who admits that he cannot impose 
 such a burden upon American citizens, and that he declares the inten- 
 tion now not to attempt to enforce it upon any neutrals. 
 
 I. P. G. 
 
 No. 323. 
 
 Mr. Ghristiancy to Mr. Blaine. 
 
 No. 278.J Legation of the United States, 
 
 Lima, Peru, April 5, 1881. (Received April 26.) 
 
 Sir : I have the honor to inform you that the Chilian press estab- 
 lished in Lima has for some two or three weeks apparently forsehadowed 
 a design on the part of the Chilian authorities, and, probably, of the 
 Chilian Government, to bring about a confederation, to consist -of Chili, 
 Bolivia, and at least that part of Peru between the Andes and the Pa- 
 cific (being that portion of Peru accessible to the army of Chili by rea- 
 son of her complete control of the sea), leaving that portion of Peru 
 east of the western range of the Andes to join, if she can be induced 
 to do so, and, if not, to form a separate government by itself, cut oft 
 from the coast, as it would be. 
 
 This idea may be thrown out and apparently advocated, merely in 
 terrorem, to compel the Peruvians to accept the government of Garcia 
 Calderon, and thereby secure a peace upon such terms as Chili may 
 choose to dictate, or it may be with deliberate intention of forcing the 
 compliance of that part of Peru west of the mountains. 
 
 Now, while I am well satisfied that a confederation of the three re- 
 publics, if it could be brought about upon cordial and friendly terms — 
 in other words, in accordance with the sympathies and prejudices of 
 the people of the three republics — would be the best arrangement for 
 all of them, and that, in such an event, Ecuador and Colombia, and, 
 possibly, all the other republics of South America might be brought 
 into the plan, forming a union on the plan of the United States of 
 America, yet now I look upon this scheme (if it is seriously entertained 
 by Chili) as utterly visionary, so far, at least, as it relates to Peru (and 
 probably so as to Bolivia). Had Chili, after her victory at Tacna, or 
 at the conference at Arica, made such a proposition it might possibly 
 have been entertained, though I think the old quarrel between the 
 Pizarros and the Almagros — the "men of Peru and the men of Chili" — 
 has been transmitted by descent and become hereditary. It is also 
 possible that, even after the Chilian victories at San Juan and Mira- 
 flores, such a union might have been formed (which I think, however, 
 would not have been lasting) had the Chilians pursued a conciliatory 
 
477 
 
 policy towards Peru, instead of pursuing, as they did, the most vin- 
 dictive policy and the most humiliating course towards Peru, exciting 
 a deep feeling of hatred and revenge in the minds of Peruvians gener- 
 ally, which will for a century prevent any cordial union. And now any 
 union to which the Peruvians might be compelled for the time to consent 
 would be felt by them to be — as it really would be — nothing more nor 
 less than actual conquest under the flimsy disguise of "union or con- 
 federation." 
 
 I have, &c, 
 
 1. P. CHRISTIANCY. 
 
 No. 324. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 282.] Legation op the United States, 
 
 Lima, Peru, April 13, 1881. (Eeceived May 5.) 
 Sir : I have the honor to inclose to you a copy of my letter of the 
 11th instant to B. H. Kauffmann, our consular agent at Pacasmayo, 
 Peru, in reference to the right of Peruvian or Chilian authorities to 
 levy forced or extraordinary contributions upon American citizens, and 
 to say further that those questions are likely to arise almost daily dur- 
 ing the Chilian occupation. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Incloaure in No. 2b2.] 
 
 Mr. Christiancy to Mr. Kauffmann. 
 
 Legation of the United States, 
 
 Lima, Peru, April 11, 1881. 
 
 Dear Sir: I have just received your letter of the 10th January last, with that of 
 April 6, explaining the oversight in not sooner sending the former letter, informing me 
 of the occupation of that province by the Chilian forces ; that they have made requisi- 
 tions upon the municipal authorities for sustenance, and that in the distribution of the 
 quotas the authorities (Peruvian, as I understand it) have made no distinction between 
 foreign neutral property and that of Peruvians, and asking my opinion whether neu- 
 trals are obliged to pay contributions thus imposed. 
 
 In reply, I have to say that if the contribution is imposed upon the real estate of 
 American or other neutral citizens by the Peruvian authorities, such neutral citizens, 
 so far as relates to such real estate, and auy taxes or burdens imposed thereon, are to 
 be treated exactly as if they were Peruvians, such real estate and its immediate prod- 
 ucts, such as crops, partaking of the Peruvian national character. But if the forced 
 contribution in question be imposed upon the person instead of the property of au 
 American citizen, then it is safe for you to take the ground, as against such forced or 
 extraordinary contribution, that American citizens are exempt therefrom under 
 the second article of the treaty of September 6, 1870, which, among other things, pro- 
 vides that American citizens " shall not be called upon for any forced loan or extraor- 
 dinary contribution for any military expedition or for any public purpose whatever. 
 
 There might, it is true, be a possible doubt whether this exemption would apply in 
 behalf of an American citizen domiciled in Peru (that is, residing and having his house 
 in Peru, especially with a family, and without auy present intention of removing there- 
 from). 
 
 But whatever doubt there may be upon this last point, it is the safest course for you 
 and for me to insist that the exemption applies as well to American citizens domiciled 
 in Peru as to those who are here for a mere temporary purpose. I advised one Amen- 
 
478 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 can citizen, domiciled in Lima, and upon whom just such a forced contribution was 
 proposed to be levied by the present provisional government here, to take the ground 
 that he was exempt under the treaty. He called upon Mr. Calderon, the head of the 
 provisional government, and took this ground, whereupon Mr. Calderon frankly ad- 
 mitted that he was exempt. 
 
 Bnt Chili, having no treaty with the United States, is not bourfd by the law of na- 
 tions to treat American citizens, domiciled in Peru, differently from native Peruvians, 
 and may treat them in the same manner, and in some cases (such as the bombardment 
 of a town or a battle in the country) they would not be bound, and in fact, could not 
 make any distinction, though the American citizen might be there for a mere tempo- 
 rary purpose. 
 
 But in what is called the " Lynch raid " in September and October last, the Chilian 
 Government had given orders to protect neutral property as far as possible, applying 
 this even to real estate, and, I presume, they have such orders still, and they have 
 quite generally sought to spare it here, further than they were bound to by the law of 
 nations, except at Chorillos, Barranco, and Miraflores. 
 
 Finally, I would advise that if any American citizen shall be driven or induced, 
 either by the Peruvian or Chilian authorities, to pay any such contributions, he should 
 pay it under protest made through you, so as to save whatever rights of reclamation 
 he may have. 
 
 I will ask you to do me the favor to make a copy of this letter and send it to Mr. 
 Alfred Lapoint, our vice-consul at Chiclayo, and ask him to send a copy to each of our 
 consular agents in his district, viz : Henry C. Smith, at Tumbez ; Charles Stalpe, at 
 Lobos de Afuero, and James H. Hayball, at Chimbote. 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 325. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 283.] Legation of the United States, 
 
 Lima, Peru, April 13, 1881. (Received May 5.) 
 
 Sir : Referring to my dispatch, No. 277, upon the question, "What con- 
 stitutes the Government of Peru, I have the honor to inform you that 
 nothing has since occurred which contributes to change the aspect of 
 the question. Each government, from time to time, contrives to get 
 statements of acts of adhesion signed by many citizens, and these often 
 come from the same locality, the population being divided. But upon 
 the whole the evidence, as yet, is quite clear that the overwhelming ma- 
 jority of the people of Peru are opposed to the provisional grovernment, 
 and still adhere to Pi^rola, and at present, if the Chilian army should 
 leave to-morrow, the only safety of the members of the provisional 
 government would be to leave with them. 
 
 In my own private opinion, however, if the provisional government 
 had come up without any appearance of support from the Chilian au- 
 thorities, it would have had many elements of popularity, and would 
 probably have succeeded in obtaining the acquiescence of the people. 
 This new government realizes the importance of an early peace with 
 Chili, the necessity of which must be recognized by every thoughtful 
 man, while that of Pierola professes to intend to cany on the war; but 
 it has no means for the purpose at present, and my own opinion is that 
 any efforts to do so will end in still greater calamities to Peru. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 479 
 
 No. 326. 
 
 Mr. Ghristianey to Mr. Blaine. 
 
 No. 285.] Legation op the United States, 
 
 Lima, Peru, April 17, 1881. (Received May 17.) 
 
 Sir : Up to the time of tbe capture of Lima, I endeavored to keep the 
 Department informed of the progress of the war, and I intended after 
 Lima was taken to give you au account of the maneuvers of the respect- 
 ive armies prior to the battle of San Juan (13th January), and that of 
 Miraflores on the 15th January. But as Lieutenant Mullen, from the 
 United States steamer Adams, accompanied the general staff of the 
 Chilian army, and Lieutenant Houston, from the Lackawanna, was with 
 the general staff of the Peruvian army from some weeks before these 
 battles until they were closed, I wished, for the purpose of getting in- 
 formation in an authentic form, to obtain copies of their respective re- 
 ports, which were promised me, and for which I waited. But I have 
 never received either, and therefore have only to refer to their reports 
 in the office of the Secretary of the Navy. Ym ^OIP 
 
 Since those battles there has been no actual fighting ; some 6,000 of 
 them having gone north along the coast and into the rich valleys near 
 the coast to levy war contributions, where they find no hostile force to 
 oppose them ; some 5,000, more or less, returned to Chili, and from 
 5,000 to 7,000 have remained in and about Lima and Callao until 3 days 
 ago, as I shall presently state. 
 
 Pi^rola, at last accounts, remained at Janja with a small force of 
 about 200 men, but he still claims to be the Government of Peru, and 
 issues his decrees as such, being as yet apparently sustained by the 
 large majority of the people of Peru. (He has, a few days ago, issued 
 a decree, declaring all persons traitors who aid or support the pro- 
 visional government, and subjecting them to summary trial by court- 
 martial, and his sub-chief, Solar, has issued a like decree at Arequipa.) 
 
 He sent General Montero some time since to the north to act in his 
 interest, who is now supposed to be in the interior somewhere back of 
 Trujillo, attempting to get up a military force in the interior. But we 
 have no reliable intelligence whether he has succeeded in raising any 
 such force. But Solar, at Arequipa (in the south), is reported to have 
 under his command there somewhere from 5,000 to 7,000 men well 
 armed, and the friends of Pie'rola expect the Bolivians to send to Solar's 
 aid some 2,000 to 3,000 men. It is generally supposed that Pi^rola 
 keeps up communication with Solar by couriers by way of Ayachuco, 
 Cuzco, and Puno, and that he is endeavoring to stir up the people there 
 and everywhere in the interior to maintain a kind of guerrilla warfare 
 against the Chilian forces wherever the latter may attempt to penetrate 
 into the interior. 
 
 The Chilian forces have full possession of the Oroya Eailroad, which 
 follows the valley of the Bimec and is finished to Chicla, 86 miles from 
 Callao (where it reaches the height of 12,220 feet above the sea.) 
 
 In going up this road from Lima the valley grows narrower, and 
 about 25 miles above Lima it becomes a mere narrow gorge, and so con- 
 tinues to Chicla, with here and there a small expansion of compara- 
 tively level ground, where some lateral gulch joins the main valley ; but 
 with the exception of these the mountains rise abruptly from the Bimec 
 to heights and knobs varying from 2,000 to 5,000 feet, and so very steep 
 (in some places perpendicular, and all entirely naked,) that they cannot 
 be climbed in front by man, and in very few places even by the goat, except 
 
480 AFPAIES IN CHILI, PERU, AND BOLIVIA. 
 
 at long distances where the side valleys come in, though they may almost 
 all be climbed by a circuitous course from the rear. This is the char- 
 acter of the valley or gorge, at least from Chosica (29 miles above Lima) 
 to Chicla, the present terminus of the railroad ; and thence about 18 
 miles to the summit of the pass (over 15,000 feet above the sea) and for at 
 least that distance on the other side the road is but a mule path, among 
 even worse precipices, where horses, mules, and even men, have for 
 much of the way to go single file ; and, whereas, for much of the dis- 
 tance along the railroad, a few hundred men judiciously placed along 
 the mountain tops, mostly out of the reach of fire, could without firing 
 a shot, and by simply rolling rocks dowu the mountain, destroy an army 
 below of ten times their own number. 
 
 Some weeks ago the Chiliaus established at Chosica a hospital for 
 their sick (and perhaps some of the wounded) soldiers, which was left 
 under the protection of a small force. Some ten days ago, these 
 soldiers, whose camp was just at the foot of the mountain, were sud- 
 denly surprised by the rush down the mountains of large quantities of 
 stones, set in motion by mountaineers most of whom were out of sight, 
 and several Chilian soldiers were killed and more wounded. 
 
 This movement is believed to have been got up by two leading men 
 known to be friendly to Pierola, and is supposed to have been with his 
 consent. 
 
 About a week ago, a force of several hundred Chilians was sent up 
 to chastise these mountaineers and to take vengeance upon them. In 
 the execution of this object, they penetrated some side valleys, where 
 there were three small villages embowered in fruit trees, the inhabitants 
 escaping to the mountains ; they destroyed the villages and as near as 
 can be ascertained, killed some forty of the men, who could be reached 
 from below, with their shot, and lost of their own force some 5 or 6 
 killed and 15 to 20 wounded. 
 
 On the evening of the 11th instant, in the most secret and quiet man- 
 ner, four trains of cars loaded with Chilian soldiery of all arms of the 
 service were dispatched from here to Chicla, with the design, as is 
 generally understood, of marching from Chicla to Jauja, to surprise and 
 capture Pierola, or drive him away. Eeports were in circulation here, 
 yesterday, that there had been fighting up the road or beyond Chicla, 
 and that the Chilians had met with some loss. Those reports, however, 
 are wholly unreliable. Still, last evening and this morning, as I am 
 informed, some three trains more loaded with Chilian soldiers have 
 been dispatched up the road, which must with those sent before make 
 some 3,000 men in all. 
 
 It is also a common report here, which I am inclined to believe 
 (though none but the Chilian officers know, and they are reticent), that 
 another Chilian expedition left Pisco (a little over 100 miles south of 
 Lima) for the interior, intended to cross the mountains and to strike 
 somewhere near Ayachuco, or to the south of it, to cut off the flight of 
 Pierola to the south. It is also rumored, but I think with less proba- 
 bility, that another Chilian force has been sent into the interior through 
 some valley to the north, to intercept Pierola, should he attempt to go 
 north. 
 
 But I look upon these movements (the last of which I think is not 
 probable) as only auxiliary to the great expedition which all the 
 Chilian press declares (and the Chilian officers here confirm) is now 
 rapidly preparing for the capture of Arequjpa, and the Mollendo, Are- 
 quipa and Puno railroad. 
 
 This expedition will, I think, be immediately set on foot, and, judg- 
 
AFFAIKS IN CHILI, PERU, AND BOLIVIA. 481 
 
 l, iiiiiu, 
 
 ing from the past., I ani inclined to believe it will be successful ; though 
 many who know the country and the people there better than I do, 
 think otherwise. 
 
 Upon the whole, present appearances seem to warrant, at least, the 
 suspicion of a design on the part of Chili to attempt a full and final 
 conquest of the whole of Peru, and its final annexation to Chili. 
 
 It is quite clear that this attempt could not succeed if the people in 
 the interior had arms ; but as they have not, they would seem to be 
 situated with respect to the Chilian forces much as the Indian race was 
 with respect to Pizarro and his forces, at the time of the first conquest, 
 and may fall in the same manner ; though such a result would not, in 
 my opinion, result in a permanent peace, but a chronic state of war for 
 centuries to come. But, as to the suspicion of such a design on the 
 part of Chili, it maybe proper to mention that some wealthy Peruvians 
 who support the provisional government of Calderon, have been heard 
 to express their wish that Chili might take and govern the whole of 
 Peru ; and there are not wanting strong suspicions among the Peru- 
 vians that this is the ultimate purpose for which the provisional gov- 
 ernment is working. 
 
 I express no opinion of my own upon this point ; it is too difficult to 
 get authentic information, as nothing like free newspaper discussion 
 is permitted here. Any paper indulging in anything like free discus- 
 sion being at once suppressed and its editors thrown into prison. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 327. 
 • Mr. Christiancy to Mr. Blaine. 
 
 No. 286.] Legation of the United States, 
 
 Lima, Peru, April 19, 1881. (Received May 17.) 
 
 Sir : Referring to my dispatch No. 285, 1 have the honor to inclose to 
 you an editorial from the Actualidad, the Chilian Government paper 
 in Lima, together with a translation. 
 
 This article foreshadows in very plain terms what has for some time 
 been suspected as to the real designs of Chili towards Peru. 
 
 It is, however, possible that it is written more for the purpose of 
 driving the Peruvian people into the support of the provisional govern- 
 ment with which Chili believes she can settle peace on her own terms. 
 We shall soon see. 
 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inclosure in No. 286.— Cuttings from Actualidad and translation.] 
 
 The comedy follows. 
 
 Peru cominues presenting to the world the most sorrowfal spectacle that any nation 
 ever presented in the hour of sacrifices and trial, when passion ought to be suppressed 
 by the realization of great national calamity and to be concealed like a filthy leper, to 
 give place to the noble and elevated efforts of those who seek the salvation of the 
 country, inspiring all for good, for the common safety, and happiness. 
 
 Far from this, acts of disorganized anarchy from day to day give new confirmation 
 and emphasis in terms which even now cannot be doubted for a moment, that their only 
 hope is for the retirement of the Chilian forces from Lima and Callao that they may 
 unchain, as a final curse, a spontaneous social cataclysm, in which there shall be seen 
 
 S. Ex. 79 31 
 
482 AFPAIES IN CHILI, PEEU, AND BOLIVIA. 
 
 to arise from the lowest depths of society all the bad past-ions to float on the surface 
 and to burst forth in a dizzy and devastating career like the " trompa marina," which 
 makes whirls on the surface of the ocean. 
 
 Let us see what is passing. The government of Garcia Calderon orders the munici- 
 pality of Lima to be prosecuted judicially for rebellion. 
 
 The ex dictator, from his oriental mansion of Jauja, is issuing circulars to the diplo- 
 matic corps, accusing it (the provisional government) of usurping powers which belong 
 exclusively to him as proprietor, as if the sovereignty of a nation was but merchan- 
 dise which could be bonght or seized from the country by violence, and which claims 
 to receive a species of consecration from divine right: 
 
 The prefect, Solar, on the other hand, without circumlocution, and not to lose time 
 in fabricating circulars, declare the government of Calderon traitors and condemns- 
 them to death. 
 
 On the other side, Sefior Garcia Calderon addresses to Solar a paternal philippic to 
 attract back to the fold this stray ewe. 
 
 Surely we have in this comedy the actors beating each other in fine style, with or 
 without reason. 
 
 Seiior Garcia Calderon (strikes) the municipality ; Pierola, Garcia Calderon ; the 
 latter hitB Solar, and Solar strikes at all the world. 
 
 Involuntarily there occurs to our memory that passage of Don Quixote — 
 
 "And as the saying runs, the cat went for the rat, the rat for the cord, the cord for 
 the stick; the muleteer was beating Sancho, Sancho, the girl, and the girl returned the 
 compliment ; the landlord beat the girl, and they were going at it so freely that they 
 really took no time for rest. The best work came in when the landlord's candle went 
 out, and as they were left in the dark the beating went on all around indiscriminately, 
 and without compassion, bo much so that wherever they dropped their hands nothing 
 was left entire." 
 
 Nothing less is passing among the men who still hold in their hands some fragments 
 of the extinguished power of the nation. 
 
 It appears that with them the lamp of intelligence has been extinguished, and they 
 give thrusts and counter-thrusts, like the blind, striking right and left, disconcerting 
 the few feeble elements with which they might yet strengthen the action of the gov- 
 ernment, which seeks to combine all the scattered elements to give them unity under 
 a single hand, and to place them at the service of the single work worthy of engaging 
 the efforts of the whole country at this time, the organization of an administration 
 which shall run no risk of being overwhelmed in the chaos of anarchy, which would 
 endanger safety of the little which the war has left intact. 
 
 This continual conflict between the men who have remained in a situation to em- 
 ploy in the salvation of their country the few resources saved from shipwreck, if it 
 shall continue longer, there will remain, no doubt, that Peru goes through a crisis in 
 which the standard of judgment of those who still hold the last remain of military 
 power is lost, and the inspirations of patriotism extinguished, goes on submitting, of its 
 own accord, to a system of tutelage which is gradually imposed upon them by the 
 very nature of coming events, and which acts foreshadow, merely, the rapidity with 
 which the national dissolution of Peruvian personality is taking place. 
 
 All this comes amidst the perplexity produced by the stupefaction from great ca- 
 lamities; amidst the intoxication of political passions; amidst diplomatic circulars, 
 judgments, philippics, excommunications, charges of treason, and fulminating decrees 
 of death. 
 
 In the mean time, however, aside from the efforts of Mr. Garcia Calderon, there is 
 not a great action, not a civic virtue which rises to the height of the situation in or- 
 der to mitigate reciprocal hatred, and to place in a single hand, in the hand guided 
 by common sense, the last floating plank of the great national shipwreck. 
 
 The curtain of the comedy is still raised, and Chili, impassible, quiet, serene, with 
 folded arms, contemplates from her box the combat of decrees and circulars, where 
 projectiles are crossing each other like a real bombardment. 
 
 At the most she says to herself, before locking up the insane and non compotes in 
 the asylum, the sane must name guardians for the administration of their property. 
 
 Xo. 328. 
 Mr. Elmore to Mr. Blaine. 
 
 Washington, May i, 1881. 
 Sir: Thanking your excellency for your kind and frank reception 
 at our late unofficial interview, I have now the honor to inclose for 
 your consideration a copy and a translation of my letter of credence 
 
AFFAIES IN CHILI, PERU, AND BOLIVIA. 483 
 
 from the provisional government of Peru, constituting me the confiden- 
 tial agent of that government to the United States of America. 
 
 You will observe that claiming only to be the head of a provisional 
 government, President Garcia Calderon has given me the character, not 
 of an ordinary, but of a special diplomatic agent, investing me, how- 
 ever, with the most ample powers of a plenipotentiary to treatand agree 
 on any and all subjects with your excellency's government. 
 
 I readily acknowledge that the United States Government, more than 
 any other required the existence of certain conditions for the recogni- 
 tion of new governments, particularly in republican countries ; but I 
 am convinced that your excellency's government will be justified in rec- 
 ognizing the provisional government of Senor Garcia Calderon, in view 
 of the extraordinary situation of Peru, and of the exceptional circum- 
 stances under which that provisional government has been formed, its 
 character, and its purposes. 
 
 As regards the unfortunate condition of Peru, your excellency is ac- 
 quainted with the events of the last two years. Without here entering 
 into long details, which I am ready to furnish you in conference or in 
 writing, it is enough to state that, during the course of the war, the con- 
 stitutionally elected president, General Prado, having left the country, 
 a dictatorial government was formed in December, 1879, under the lead 
 of Senor Pierola, who proclaimed himself dictator, after a bloody fight 
 in the streets of Lima — a coup d'etat graphically described by your min- 
 ister in Peru in a dispatch to the State Department which appears 
 published in the last volume of the Foreign delations of the United 
 States. That anti-republican government failed, as all such govern- 
 ments must always fail dn this continent. The dispersion of its forces, 
 the occupation of the capital and a part of the territory by the armies 
 of Chili, and the complete disintegration of the civil authority repre- 
 sented by Seiior Pierola, who with a few followers, has fled , to the 
 other side of the mountains, and with whom the representatives of the 
 Chilian Government have declared themselves unwilling to treat hereafter, 
 left Peru absolutely without any government which could either en- 
 force order within, or treat with Chili as to terms of peace. 
 
 Under these circumstances, the people of Lima, representing largely 
 the wealth, intelligence, and interests of the republic, supported by like 
 demonstrations in other provinces of the country, called upon Senor 
 Francisco Garcia Calderon, an eminent jurist and statesman and one of 
 the most distinguished citizens of Peru, to organize a provisional gov- 
 ernment which recognizes as its only foundation the constitution of the 
 country and as its only power the existing laws, and which has been 
 established only to restore that constitution to its full vigor, and to 
 summon the national Congress to meet on the 15th of the present month 
 of May. No true patriot could have hesitated. 
 
 The government of Seiior Garcia Calderon represents, on the one 
 side, the aspiration of the Peruvian people to re-establish the reign of 
 constitutional law and order ; and, on the other, it represents the only 
 means the republic possesses to bring about the conclusion of a treaty 
 of peace with its present invaders. 
 
 Occupying this position of heavy responsibility, what Seiior Garcia 
 Calderon has instructed me to ask is, not the recognition of his present 
 government as the permanent Government of Peru, but as the only 
 organized authority which can enable the people to resume their consti- 
 tutional rights and restore the government its regular action. Upon 
 the absolute necessity of this course I need not dwell. It will be ad- 
 mitted that it is worthy of the position and power of the United States, 
 
484 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 and in conformity with its traditional policy, to aid in this hour of need 
 a younger and sister republic. Peru is now occupied by a hostile force, 
 and the terms of peace, upon which only it will be withdrawn, cannot be 
 either accepted or executed without a responsible and recognized gov- 
 ernment. The burden of this occupation and the sacrifices necessary to 
 secure any treaty of peace with Chili must fall upon that portion of the 
 republic in which the people have delegated in the most emphatic man- 
 ner their authority to Senor Garcia Caldertin. What he desires is, that 
 foreign powers, especially the United States of America^ should recog- 
 nize the force and obligation of his position, and by that recognition 
 encourage the people of Peru in the prompt restoration of constitutional 
 authority. 
 
 The first and most important act, however, of Senor Garcia Calderon's 
 government will be to conclude a treaty of peace with Chili, thus secur- 
 ing to Peru its sovereignty as an independent" nation. Xow, it is es- 
 pecially for this high and noble purpose that Peru appeals to the United 
 States of America, and it is most particularly to this end that the Pro- 
 visional Government of Peru has appointed the undersigned as its 
 organ of communication with your excellency's government. I am de- 
 sirous to lay before your excellency the earnest petition of Peru in this 
 regard, and shall proceed to do so when your excellency advises me of 
 my recognition as the representative of the Provisional Government of 
 Peru. 
 
 The Peruvian people have always looked up to the United States for 
 advice and counsel, and for its aid and support whenever needed, es- 
 pecially when its republican institutions or integrity have been threat- 
 ened. My country deeply feels how much it ^wes to the great republic 
 in the past, and more particularly for the efforts lately made by the 
 United States to mediate in the present war. But the extraordinary 
 events which are rapidly developing in South America are of such a 
 dangerous and unexpected nature that, as soon as you give me the op- 
 portunity to do so, I desire, in accordance with my instructions, to lay 
 before you the true tendency of those events, and to show you that the 
 United States are interested in interposing their action in the settle- 
 ment of this South American conflict, if they wish that republican insti- 
 tutions and the independence of the nations of this continent should 
 be maintained. 
 
 The Provisional Government of Peru anxiously desires that the terms 
 of peace with Chili be settled, with the advice and mediation of the 
 United States, as the only means which will secure its continuance. 
 
 To this end I beg your excellency to please appoint a day and hour 
 when I may have the honor to hand to your excellency the original letter 
 of credence which accredits me as the confidential agent of Peru to the 
 United States of America. 
 
 I have the honor, &c, 
 
 J. F. ELMORE. 
 
 [Inclosore in note from Mr. Elmore. — Translation.] 
 
 Mr. Galrez 1o Mr Blaine. 
 
 Department of Foreign Affairs, Magdalena, March 28, 1881. 
 Sir : The earnest desire which animates his excellency the Provisional President of 
 Pern, to cultivate and draw closer the friendly relations which exist between Peru and 
 the United States of America has induced him to intrust Senor Federico Elmore with 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 485 
 
 the honorable mission of presenting to your excellency this letter, which accredits him 
 as the confidential agent of Peru to the United States of America. 
 
 The intimate knowledge I have of the distinguished personal qualities of Sefior 
 Elmore, of his capacity, and of his zeal for the- public service, satislies me that your 
 excellency will receive him with benevolence, and you will please give faith andcredit 
 to all communications he may address to your excellency within the limits of his in- 
 structions, and principally in regard to the earnest desire of the Peruvian Government 
 to draw closer. the friendly relations between our countries. 
 I avail myself, &c, 
 
 M. M. GALVEZ. 
 His Excellency The Secretary of State op the 
 
 United States of America. 
 
 No. 329. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 [Extract.] 
 
 (Personal and confidential.) 
 
 Legation op the United States, 
 Lima, Peru, May 4, 1881. (Eeceived May 26.) 
 
 Sir : Beferring to my dispatch No. 286, dated April 19, 1881, 1 wish 
 to say confidentially and for your own eye alone (for the present), that, 
 in my opinion, the Chilian Government intend to establish a kind of 
 provincial government of their own over Peru, or so much of it as 
 they can control, which, in my opinion (unless England and France, or 
 the United States should actively intervene to prevent it), will be all 
 of Peru west of the first range of Andes, and possibly still more. 
 
 Should such a result take place, I am inclined to think it would be 
 equivalent to establishing the ascendency of English, over American 
 influence on this coast, so long as such a provincial government should 
 be maintained. 
 
 Some of my reasons for this conclusion will appear in my confidential 
 dispatch No. 162, to which I refer, and so far as American commerce on 
 this coast may be concerned, the products of Chili are mostly similar 
 to those of our grain -producing States, viz, the cereals. 
 
 The productions of Peru are very different, though some of them might 
 compete to a considerable extent with those of our country. 
 
 For a general view of the staple productions of Peru, her exports and 
 imports, the value of her trade, and the various questions connected with 
 the increase of our trade here, I refer you to the dispatches of Mr. Gibbs, 
 my predecessor in this legation, Nos. 241 and 284, merely remarkingthat 
 when I came here, the present war had just been declared, and it has 
 been impossible to obtain any reliable statistics of commerce, but that 
 it is evident there has been a great decrease of production and of ex- 
 ports and imports. The Chilians having taken the nitrate districts in 
 the south, the production of this article by Peru is, for the present, 
 practically extinguished; and Chili having command of the sea, Peru- 
 vian production and exportation of guano have been reduced to a very 
 small fraction of what they were before. But I am informed by persons 
 who profess to have made personal examination, that there are nitrate 
 deposits in the north of Peru, nearly, if not quite, as rich and extensive 
 as those in the south. 
 
 As to manufactured cotton, of course no one would think of import- 
 
486 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 ing it into the United States, as they can afford to pay more for it in 
 England. As to wool and sugar, our tariff is such that its importation 
 into the United States is practically prohibited. Ow wool growers 
 would not consent to a reduction of duty upon ordinary wools; yet 
 there is one kind of wool — the alpaca — which would not compete at 
 all with home production. But England now takes practically all of 
 this which is produced in Peru and Bolivia; and it may be worthy of 
 consideration whether the mere local interests of Louisiana ought to 
 deprive the whole Union of the benefits which would result from admit- 
 ting Peruvian sugars at a reduced duty. But, not to go further into 
 particulars, it is evident from the nature of the products and exports of 
 Peru, she must find commerce with England, under past and present 
 circumstances, more advantageous than with the United States, as 
 England takes more of her products in return and thereby helps her 
 more in the way of exchange. 
 
 While railroads were being constructed here, there were considerable 
 importations of locomotives, railroad cars, and railroad plant, and may 
 be again, if they ever get a settled government here. There has, also, 
 been a small trade in furniture, the smaller kinds of hardware and 
 cutlery, and farming implements, machinery, &c; though, except upon 
 some of the larger plantations, the demand for farming implements is 
 small, as most of the small agriculturists prefer the antiquated method 
 of plowing their lands with a crooked stick (iron pointed), and with 
 oxen hitched by the horns. 
 
 Owing mostly to the mountainous character of the country, wagons 
 or wheel carriages are unknown, except in a few of the larger cities 
 (and lumber wagons on the sugar and rice plantations), the transpor- 
 tation being carried on almost everywhere on the backs of mules and 
 donkeys, much of it even in the cities. 
 
 Another thing which has given to England the control of the com- 
 merce of this entire coast, is the establishment of an excellent line of 
 steamers, at first largely subsidized, but now receiving no direct sub- 
 sidy, and yet doing a profitable business. If the establishment of 
 an American competing line would tend very largely to increase our 
 commerce here, and to open large markets for our trade, I should be 
 ready to give up my habitual opposition to such subsidies until the 
 line could compete with opposition without them. But the other causes 
 which I have mentioned (and many others which might be mentioned), 
 which, aside from and independent of her line of steamers, tend to give 
 England the control of the commerce of this entire coast, would still 
 continue to operate, aud an American line could not be supported with- 
 out large subsidies. 
 
 The great mass of all classes of Peruvians feel a very strong attach- 
 ment to the United States and a bitter hatred to England. Still, in 
 matters of trade, pecuniary interest will, in the main, control. 
 
 Upon the whole, my conclusion is, that the only effectual way for the 
 United States to control the commerce of Peru, and to preserve a com- 
 manding or even a material influence along this coast, is either actively 
 to intervene in compelling a settlement of peace upon reasonable terms 
 or to control Peru by a protectorate or by annexation, for either of 
 which I am satisfied at least three-fourths, if not four-fifths, of her 
 population would gladly vote to-day. 
 
 - Unless the United States take one of these courses in the present 
 emergency the "Monroe doctrine," so called, will be considered a myth 
 in all the South American States. Whether our government ought so 
 far to depart from its traditions as to adopt any one of these courses is 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 487 
 
 not for me to decide, nor to discuss the means necessary to carry any 
 of these ideas into effect, nor do I express any opinion as to the pro- 
 priety of any such projects, except to say that I should individually be 
 strongly opposed to the idea of annexation, unless it could be had on 
 terms that Peru should, for at least ten years, be subject to a territorial 
 government, on the general plan of our territorial governments, and 
 then to be admitted as States, at the discretion of Congress. In that 
 ten years Peru would, under such a system, become wholly North 
 American in its ideas. 
 
 These projects have lately been often and strongly pressed upon me 
 by Peruvians, and 1 find that some of the Catholic clergy, even, are in 
 iavor of annexation. My only answer has uniformly been that, in my 
 opinion, our people were not yet disposed to adopt any such policy; 
 but that I would bring the whole matter, at the proper time, to the 
 attention of my government, and be guided by their instructions. 
 
 I ought here to say, by way of introduction to what follows, that with 
 my own personal observation of over two years, and the best sources 
 of information I haA r e been able to obtain, I am unable to discover any 
 sufficient elements here for establishing an independent or even any 
 kind of regular or permanent government of Peru; certainly no form of 
 popular government by the Peruvians themselves. To state all the 
 grounds for this conclusion would require a volume. I can only refer 
 to a few of the fundamental reasons for this state of things, and for 
 this conclusion. The original immigration into this country from Spain 
 did not consist of men who, like the original colonists in the United 
 States, only sought to better their conditions by honest, persevering in- 
 dustry, but of adventurers, seeking only to make money rapidly, by 
 robbing the original inhabitants and by sudden accumulations of wealth 
 from mines of silver and gold. 
 
 They found here a people well advanced in the arts of agriculture, 
 producing all that was necessary for the support and comfort of the 
 inhabitants (then amounting to some 8,000,000 or 9,000,000, in what is 
 now Peru). They found every foot of ground in a high state of culti- 
 vation, wherever it was possible to bring water for irrigation. They 
 not only seized upon all these lands and improvements, but made all 
 the inhabitants slaves, and assigned the former owners, by repartia- 
 mentos, as slaves to the few Spanish immigrants, to each of whom 
 large tracts of country were granted, often amounting to ten, fifteen, 
 or twenty townships, in our country. Many of the original inhabitants 
 were also assigned as slaves to the leading men who settled in the towns 
 and cities. The Spaniard would not labor and did not, but all the labor 
 was done by the enslaved race, and afterwards, in some measure, by 
 African slaves. 
 
 Nearly all the Spanish adventurers either took Indian wives or, 
 which was more common, kept a harem of Indian girls, as many as he 
 chose ; but as a general rule they did not treat their children as slaves, 
 but recognized them as their children. In this way it has happened 
 that almost all the people of Peru are of this mixed race, and the mix- 
 ture with the negro; so that I do not think there are now in the city of 
 Lima two hundred families of pure white blood, and probably not in 
 all Peru 200,000 of the white race unmixed. Slavery was only finally 
 abolished here in 1856 (see Article IV of constitution of that year), and 
 all the old ideas and habits of the people remain. Labor is looked 
 upon as a disgrace and degradation, and as only fit for a servile race. 
 Any man of standing in Lima, to-day, who purchases an article at a 
 store, however small the package, would at once lose caste if he dared 
 
488 AFFAIRS IX CHILI, PERU, AXD BOLIVIA. 
 
 to take it home in his hand. He nnist have a servant to carry it for 
 him. The consequence of all this is, that all the sugar and rice estates, 
 instead of employing free labor, have resorted to the Chinese, who are 
 nominally imported into this country as hired servants, but, except in 
 the cities under the eyes of responsible officers, these Chinese are 
 treated with about the same severity as the slaves were in our South- 
 ern States, and in many respects worse, as they are generally locked 
 in their quarters and kept under guard at night, and so many condi- 
 tions are attached to their contracts of which they do not know the 
 effect, upon which the employer assumes the right to decide, that in 
 some and, I think, in most cases, after the Chinaman has served five 
 or ten years he finds he has more time yet to serve than he had when 
 he commenced, and few, if any, ever come out freemen. 
 
 There are many foreigners here, especially Italians, and some of 
 other nationalities, who are not ashamed to live by their labor in some 
 of the various trades. But aside from these and the Chinese the whole 
 manual labor of Peru is performed mostly by the Indians and races 
 mixed with them, who had been slaves, and by negroes and their mixed 
 descendants, who had also been of the servile race, who constitute at 
 least three-fourths of all the inhabitants of Pern. These, though now 
 nominally free, are almost all treated in the interior (away from the 
 cities) as practically slaves; their rights being almost wholly disre- 
 garded by the authorities, who, iu many, if not iu most, cases assume 
 to fix the prices of labor of various kinds, which is also, to some extent, 
 done even in the cities. The wages of these people, since I have been 
 here, have not exceeded from 10 to 20 cents per day in our money. 
 
 It is also from these poor classes of people that all the Peruvian sol- 
 diery were drawn (except the " Lima Keserves," who were temporarily 
 raised for the defense of Lima), and these forces were called volunteers ; 
 but the way they were made to volunteer was for officers to go through 
 the country with an armed escort, and compel the poor fellows to fall 
 in. If they refused, they were taken by force, tied together, and put 
 on the cars, or compelled to march to Lima. I have myself seen scores 
 of such volunteers, thus tied, marching through the streets of Lima. 
 Xot a single white man did I ever see in the ranks (though the officers 
 were whites), except the " reserves" above mentioned. All these men 
 of Indian descent are docile, amiable, and brave, and will fight as long- 
 as their officers will stand ; but the officers (all white) fled by scores 
 and hundreds from San Juan and Miraflores, leaving their men to do 
 the same. The battle of the 13th opened at daylight, some 10 miles 
 from Lima, and at 9 o'clock a. m. I saw in the streets of Lima enough 
 Peruvian officers with shoulder-straps to make an entire regiment. It 
 is but right to say here that the Chilian army, though called volunteers, 
 was, much of it, raised in the same way, and from similar mixed races, 
 morelargely Indians mixed with whites and less with Africans. (I'have 
 seen but few white men in their ranks.) The Indians of Chili and 
 the mixture of Indians and whites are more vigorous, enterprising, des- 
 perate, and cruel than the corresponding races in Peru, partaking' 
 more of the Araucanian type ; but the Chilian officers were far supe- 
 rior to those of Peru, and less under the blind guidance of the church 
 (though the private soldiers are about equally so), and the government 
 of Chili is composed of more enlightened men wholly emancipated 
 from the control of the church and ready to adopt all modern improve- 
 ments in warfare. 
 
 But to return, after this long digression, to the question of labor and 
 the laboring classes, I must say that, with my democratic and repub- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 489 
 
 licaii ideas, knowing that the great masses of people in all countries 
 always have been and always will be compelled to get their living by 
 the sweat of their brows, and fully believing that the government which 
 best secures the greatest good of the greatest number is to be esteemed 
 the best, I am compelled to estimate the prosperity of every country by 
 the adequacy or inadequacy of the compensation which it enables the 
 great mass of its citizens to obtain for its labor. That country which 
 secures to them the highest compensation is the most prosperous, and 
 that which secures them the least is the worst and least prosperous. 
 
 Prom what I have already said, it might appear sufficiently evident 
 that the laboring classes in Peru are sunk beyond the hope of redemp- 
 tion. * * * 
 
 Every man naturally looks only to what he deems his own immedi- 
 ate interest or elevation to power; and, when placed in power, he 
 seeks only to enrich himself by the opportunities which his office gives 
 him to appropriate the public funds to his own use. This has become 
 so settled a conviction in the public mind that whenever any man 
 obtains office it is at once assumed by the people that such is his 
 object. This opinion is, doubtless, sometimes unjust, but on looking 
 back through the various governments and forms of governments, I 
 am satisfied this conviction is generally well founded. If, for instance 
 (except in a time of war when no administration would dare to enter- 
 tain any claim), any man had a claim against the government, well or 
 ill founded, he could get it allowed by giving a fair share of it to the 
 President and cabinet officers, and however good the claim might be, 
 it was seldom allowed without this reward. 
 
 The joint commission got up here by * * * in favor of Ameri- 
 can claims, was no exception to the general rule ; and, I am informed, 
 several claims were allowed against Peru, which never should have 
 been allowed at all, or only for a much smaller sum; * * * allow- 
 ing some special friend, such as , to make the arrangements be- 
 tween the claimants and the officers of the government, and these 
 claimants paying sometimes 70 per cent, and upwards of their claims, 
 which percentage, to all appearance, must have been shared among 
 all the parties acting in the scheme. 
 
 This however, is only a sample of the mode in which the pub- 
 lic business has generally been transacted by the various Peruvian 
 Governments here for many years past. A few honest men have, from 
 time to time, been in office, who could not thus be bought, but were 
 compelled to retire from office. 
 
 There seems to be no fixed principle of honesty, no idea even of that 
 self-sacrificing patriotism which is essential to a proper and honest ad- 
 ministration of government. 
 
 Such are the people of Peru. The picture has been but feebly drawn. 
 
 I have only been able to touch the prominent points, the "vestigia." 
 To fill it up would require a large volume, which I have not time to 
 write nor you to read. * * * Chili lias been able to secure a more 
 permanent government, and better to enforce financial honesty in her 
 administration, and to preserve her public credit. But the grievances 
 of and impositions upon her laboring classes — the great mass of her 
 people — are essentially the same as in Peru ; and the grade of civiliza- 
 tion among the masses even below that of Peru, the church having 
 equal control over them, and committing the same kinds of abuses. 
 
 In short, I would not advise the United States or her people or any 
 other enlightened people to take any stock in any of the South Ameri- 
 can republics, unless they can take the controlling stock. This they 
 
490 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 could easily have in Peru, if tliey choose to take it. The disposition 
 of the masses of the people is favorable to the United States. A United 
 States protectorate or annexation would be hailed with delight. In 
 the hands or under the control of the United States, Peru would soon 
 again become one of the richest countries of the world. I will not trouble 
 you with her geography, which, if you do not already know, you can read- 
 ily learn. There is enough of the country to make five or six large States, 
 to say nothing of other parts of Peru, which are well known. The eastern 
 slope of the Andes, along the upper branches of the Amazon, is one of 
 the richest agricultural countries in the world ; stocked with the most 
 valuable timber and producing everything which a tropical climate can 
 produce, but at present almost entirely in possession of the wild In- 
 dians ; and I give only the opinion of geologists and that of all intelli- 
 gent travelers when I say that there are still more valuable mines of 
 silver and gold in Peru than in any other country of like extent in the 
 world. And if it belonged to the United States it would not be two 
 years before it would eclipse California, Xevada, Colorado, and all the 
 mining regions along the Eocky 3Iountains in the production of the 
 precious metals. 
 
 Fifty thousand enterprising citizens of the United States would con- 
 trol the whole population and make Peru wholly (Xorth) American. 
 
 Peru under the control of our country, we should control all the other 
 republics of South America, and the "Monroe doctrine " would become 
 a verity. Large markets would be opened to our productions and man- 
 ufactures and a wide field opened for the enterprise of our people. 
 
 Whether all these advantages are sufficient to outweigh the wise, tra- 
 ditional policy of our government it is not for me to express an opinion. 
 I only bring the matter to the attention of my government, leaving 
 that government to decide. 
 
 If Peru lay contiguous to the United States, our citizens would soon 
 relieve our government from all responsibility by taking possession of 
 the country, and in due time asking its admission as a part of the 
 United States. 
 
 But, as a single individual, I must declare my utter repugnance to 
 the idea of its incorporation as a part of our Union, until American 
 ideas first get control of its population. I want no more such discord- 
 ant elements, until we have digested and assimilated what we have al- 
 ready. 
 
 ******* 
 
 This letter must be treated as perfectly confidential, for your own 
 eye and that of the President alone. I do not even copy it in the 
 records of the legation, and ask that it may not be placed on file 
 in the Department. My own life, even, would not be safe here for one 
 day if it were made public. 
 I have, &c, 
 
 I. P. CHKISTIAXCY. 
 Hon. James G-. Blaine, 
 
 Secretary of State, Washington, B. G. 
 
 so. 330. 
 Mr. Christiancy to Mr. Blaine. 
 
 2so. 292.] Legation of the United States, 
 
 Lima, Peru, May 5, 1881. (Eeceived June 2.) 
 Sir : Eeferring to my dispatches Xos. 230, 237, and 212, in reference 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 491 
 
 to the question whether the Chilians or Peruvians were most respon- 
 sible for the breach of the armistice on the 15th of January last, I have 
 now to say that the question has at last been practically solved. The 
 committee of the diplomatic corps, consisting of Mr. Pinto, of Salvador 
 (its dean), and the ministers of England and France, who, with the 
 dean, constituted the committee of the corps, who, on the morning of 
 the 15th January, arranged the armistice with General Baquedano, 
 and the Chilian staff, seeing the report of General Baquedano, as made 
 to his own government, have felt it their duty to make an official state- 
 ment of the real terms of the armistice, which is quite different from 
 the statement of the report of General Baquedano. The general, in 
 his report, stated substantially that he reserved the right of making 
 any movement in the mean time, with the single condition that he was 
 not to open lire upon the Peruvians until 12 o'clock of the night of the 
 15th. This, if true, would have allowed him to move his lines up to the 
 front of and into the very lines of the Peruvian force ; to attack them 
 by his cavalry, so long as they used only the sabre, and did not fire, 
 &c. ; all which would, of course, render the armistice a farce. 
 
 But it will be seen by the joint statement of the three ministers, 
 who arranged the terms (which I here inclose, with a translation), 
 that the right reserved by the Chilian authorities — to make any new 
 movement in the mean time or to complete any movement already com- 
 menced — was under the express reservation that such movement should 
 not go beyond the grand (or advanced) guard of their army, which, of 
 course, must mean as that guard was then placed (at about 7 o'clock in 
 the morning). Any other meaning would make nonsense, when the 
 actual circumstances are considered. 
 
 Now, it clearly appears, from the report of the chief of the Chilian artil- 
 lery, when compared with other well-known facts, that their artillery on 
 their left (the Peruvian right) was moved far in advance of the position 
 held by the "grand guard" in the morning, and that this movement 
 took place as early as 11 a. m., and that this commandant of artillery, 
 finding himself so far in advance of the rest of the Chilian army, sent 
 a request to have the infantry advanced to cover his flanks, which was 
 promptly accorded, thus bringing the Chilian line much nearer to the 
 Peruvian line than was contemplated by the armistice; that even Gen- 
 eral Baquedano, with his staff, reconnoitering when the battle opened, 
 was far in advance of the line held by his "grand guard" in the 
 morning; in short, that this forward movement was such as nat- 
 urally and reasonably to induce the belief in the Peruvian forces, that 
 the Chilians were deliberately setting the terms of the armistice at de- 
 fiance, and intended to attack them in defiance of the armistice. In 
 this view the responsibility for the breach of the armistice must rest 
 upon the Chilian commanders, though the first gun was fired by the 
 Peruvians. 
 
 I make no further comments upon this transaction than to say, that 
 in a war between these South American governments, experience has 
 demonstrated that the same scrupulous good faith in the observance of 
 any armistice, or any other arrangement between belligerents, is hardly 
 to be expected as would be expected with the more enlightened nations 
 of Europe and in the United States. 
 I have, &c, 
 
 I. P. CHBISTIANCY. 
 
492 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosnre in Ho. 292.— Translation.] 
 
 We, the undersigned, ministers of Salvador, France, and England; being authorized 
 to offer the good offices of the diplomatic corps, to the two belligerents, after the bat- 
 tle of Chorillos, 
 
 Considering, that the report of General Baquedano does not state exactly the facts as 
 they took place on the morning of the 15th January, during our interview with the 
 chiefs of the Chilian army. 
 
 Considering besides that the publication of that report tends to give an erroneous 
 impression of the character of our action, and the arrangement agreed upon, 
 We declare : 
 
 1st. That we presented ourselves at the conference at the request of Mr. Pierola, in 
 order to learn the conditions of peace. 
 
 2d. That after these having been brought to our knowledge unofficially, and other 
 
 conditions, preliminary to all negotiation having been placed before ns pffieially, we 
 
 asked a suspension of hostilities in order to give the supreme chief time to deliberate. 
 
 3d. That we agreed that that suspension of hostilities should last until midnight of 
 
 the same day. 
 
 4th. That the Chilians insisting upon completing a movement already commenced, 
 we agreed to this. But under the express reservation accepted by them, that the move- 
 ment should not go beyond the grand guard (advance guards) of their army. (Mean- 
 ing as then placed.) 
 
 In faith of which, and in order that the truth may appear, we have signed the pres- 
 ent proces verbal. 
 Lima, April 27, 1881. 
 
 I. be P. PINTO, 
 Minister Plenipotentiary of Salvador. 
 E. de VERGES, 
 Minister of the French Republic. 
 
 SPENCER ST. JOHN, 
 Her Majesty's Minister Resident. 
 
 TSo. 331. 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 295.] Legation op the United States, 
 
 Lima, Peru, May 8, 1881. (Eeceived June 2.) 
 Sir : I have the honor to inclose to you the copy of a letter from B. 
 H. Kauffmann, our consular agent at Pacasmayo, dated Mayo, 1881, in 
 reference to the attempt of the Peruvian authorities to levy war contri- 
 butions upon American citizens, and their conclusion to desist from that 
 attempt. 
 
 I have, &c, 
 
 I. P. CHEISTIAXCT. 
 
 [Inclosure in No. 295.] 
 
 Mr. Kauffmann to Mr. Christiancy. 
 
 United States Consular Agexcy, 
 
 Pacasmayo, Pern, May 5. 1881. 
 Sir: I have the honor to acknowledge receipt of your notes Nas. 146 and 147, in the 
 former of which you advise me of the appointment of Mr. A. Lapoint to be United 
 States vice-consul at Chiclayo, and in the latter you kindly reply to my letter making 
 inquiry as to the status of neutrals in reference to payment of contributions for the 
 sustenance of the detachment of the Chilian army of ojcnpation now stationed in this 
 province. 
 
 I now have the satisfaction of stating that in view of your letter, and the quotation 
 (respecting) of treaty stipulations respecting the levying of extraordinary contribu- 
 tions, the Peruvian authorities (who pretended to levy the said contribution) have 
 desisted from their pretensions to that end. 
 I am, &c. 
 
 B. H. KAUFFMANN. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 493 
 
 No. 332. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 ]STo. 296.] Legation of the United States, 
 
 Lima, Peru, May 9, 1881. (Received June 2.) 
 
 Sir: I have intimated, in several of my late dispatches, that the 
 action of the Chilian Government, as shown by their officers here, fore 
 shadowed the intention of that government to hold the whole of Pern- 
 or so much of it as they should find practicable, at least all west sum-, 
 mits of the western range of the Andes, as a permanent conquest. 
 
 Enough has now transpired to show that my suspicions were cor- 
 rect. 
 
 The mask has now been completely thrown off. The Chilian papers, ' 
 both in Chili and Peru, openly declare this as the intention of the 
 Chilian Government ; and the military officers here openly declare the 
 same thing. Colonel Lagos, the commander of the Chilian forces here, 
 had made an arrangement with the provisional government of Fran- 
 cisco Garcia Calderon, to allow his government the control of the cus- 
 tom-house in the northern ports of Peru, to enable him to support his 
 government and the right to send some 500 or 600 soldiers to the north- 
 ern towns to enforce his authority to this end. 
 
 But some four or five days since the assistant secretary of war of 
 Chili arrived here and the above arrangement was at once disapproved 
 and revoked, and Senior Calderon's soldiers were not allowed to em- 
 bark ; and no effort is now made "to conceal the intention to occupy 
 Peru indefinitely ; but this intention is publically declared. 
 
 As explained by the best informed Chilian officers, the plan is to es- 
 tablish a civil government here under the protection of her army, a 
 kind of provincial government, similar to that of the old viceroys, 
 while the country belonged to Spain. Some of the Chilian officers give 
 out that the arrangement is to last for some five years, more or less, 
 until Peru shall have been able to establish a government of its own ; 
 but how it is to do this while the couutry is under the Government of 
 Chili, which is not likely to tolerate any attempt of this kind, is not 
 explained. 
 
 In plain English, it is now clear that Chili means to hold the whole 
 of Peru by right of conquest if she can. 
 
 Is there anything to prevent this result ! Certainly (as to that part 
 of Peru west of the summits of the western range of Andes) nothing 
 short of the intervention of some European power or powers, or that of 
 the United States. 
 
 The ministers of England and Prance had been authorized by their 
 respective governments to offer their good offices by way of mediation, 
 and though this offer had not been directly repulsed by Chili, but (as 
 near as I can learn) accepted under qualifications, those ministers now 
 (under the present resolution of the Chilian Government) find no open- 
 ing for the success of their efforts. Our minister in Chili has doubtless 
 offered the mediation of our government, but the result must neces- 
 sarily be the same. Mediation, simply as such, must now be utterly 
 fruitless. Intervention against the will of Chili seems the only means 
 of preventing the absorption of the greater part, or the whole of Peru 
 by Chili. 
 
 Will any European government thus intervene ? It seems to be well 
 settled that the German Empire will not, nor will it even interfere by 
 
494 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 ■way of offering mediation. It is not at all likely that Italy would do so 
 alone, though she has a powerful fleet. Eussia and Austria have little 
 interest in the question, and there remain only England and France, 
 both of which seem to act in perfect accord, through their representa- 
 tives here. 
 
 That England will not intervene as against Chili is sufficiently evi- 
 dent, not only from what is stated in my private and personal dispatch 
 of last week, but from information I have this day received from the 
 British minister, who informs me there is not the slightest probability 
 that England will so intervene. 
 
 Will the United States do so I 
 
 This is a question which is not for me to answer. I have kept your 
 department fully advised of the facts upon which the solution of the 
 question depends, and here my duty ends, until I shall receive instruc- 
 tions, which I am ready on all occasions to follow. 
 
 I ought to say further here that the provisional government had been 
 endeavoring to get the old congress of 1879 to meet here or at Chorillos 
 on the 15th instant, but they still lacked 34 of a quorum. I think now 
 the idea of holding a congress will be abandoned, and that the Chilian 
 authorities will not permit its meeting, if a quorum should be obtained. 
 In fact it would seem now that the provincial government must go down. 
 But we shall soon see. 
 I have, &c, 
 
 I. P. CHBISTIAKCY. 
 
 P. S. — Perhaps I ought to add here (what sufficiently appears in my 
 former dispatches), that the principal grounds upon which the Chilian 
 authorities claim to base the right to adopt this policy of indefinite occu- 
 pation, viz, that it has become necessary, because the Peruvians have 
 neglected to form a government with which they could treat, and the 
 anarchy which results from this state of things has been deliberately 
 produced by their own action, and, to all appearance, for the v§ry pur- 
 pose of furnishing a pretext for the policy which they have finally 
 adopted. They could have readily treated with Pierola, who was anx- 
 ious to treat, and who had been and still is recognized by all the govern- 
 ments represented here, and by the Chilians themselves at Arica. But 
 they refused to treat with him, and encouraged the setting up the pro- 
 visional government of Calderon, and from time to time encouraged that 
 government in its efforts, to some extent, but soon began to treat it with 
 contempt, and to cut off from it one privilege after another, still allowing 
 it to appeal to the people of Peru for their adhesion, and to call congress 
 together, thus dividing the people of Peru between Pierola and Calde- 
 ron in a manner which threatened civil war. 
 
 The ruse has been successful in producing the result desired, but quite 
 unsuccessful, so far as relates to the concealment of the true motives of 
 their action. • 
 
 P. S. — May 11. — I learn from a letter this day received from Mr. Os- 
 born, that the Chilian Government actually rejected the offer of mediation 
 by England and France. — I. P. C. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 495 
 
 No. 333. 
 
 Mr. Blaine to Mr. Ghristiancy. 
 
 Department of State, 
 No. 143.] Washington, May 9, 1881. 
 
 Sir : In your last dispatch, No. — , you informed this Department 
 that the Chilian Government refused absolutely to recognize General 
 Pi6rola as representing the civil authority in Peru, and that Senor 
 Oalderon was at the head of a provisional government. 
 
 If the Calderon government is supported by the character and intelli- 
 gence of Peru and is really endeavoring to restore constitutional govern- 
 ment with a view both to order within and negotiation with Chili for 
 peace, you may recognize it as the existing pro visional government, and 
 render what aid you can by advice and good offices to that end. 
 
 Mr. Elmore has been received by me as the confidential agent of such 
 provisional government. 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
 No. 334. 
 
 Mr. Blaine to Mr. Ghristiancy. 
 
 Department of State, 
 No. 144.] Washington, May 12, 1881. 
 
 Sir: I have to acknowledge the receipt of your No. 282, and to ap- 
 prove the tenor of your letter (a copy of which you inclose) to Mr. 
 Kauffmann, consular agent, &c, on the question of the right of Peru- 
 vian or Chilian authorities to levy forced or extraordinary contributions 
 upon American citizens in Peru. 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
 No. 335. 
 
 21r. Ghristiancy to Mr. Blaine. 
 
 No. 301.] Legation op the United States, 
 
 Lima, Peru, May 17, 1881. (Received June 17.) 
 Sir : I have the honor to inform you that on the 14th instant the fol- 
 lowing appeared in El Oden of Lima, the paper which is the organ of 
 the provisional government of Calderon, viz : 
 
 [Cabl<jgrama oficial, Paris, 12 de Mayo, Valparaiso, 13, a la 1.50 p. m.] 
 
 Presidente Calderon, Lima : 
 
 Elmore telegrafiade Washington, que le com unique que el gobierno Calderon hasido 
 reconoeido por el Gobierno Americano. 
 
 [English : official cablegram, Paris, May 12, Valparaiso, 13th, at 1.50 p. m. ] 
 
 President Calderon, Lima : 
 
 Elmore telegraphs from Washington saying that the Calderon government has been, 
 recognized by the American Government. 
 
496 AFFAIKS IN CHILI, PEKU, AND BOLIVIA. 
 
 If I could confidently rely upon the authenticity of this, I should, of 
 course, at once recognize the provisional government, though no other 
 minister here has yet done so. The dispatch looks authentic on its 
 face, when taken in connection with the facts that Elmore is under- 
 stood here to be the agent of Calderon's government at Washington, 
 that Goyeneche is a relation of Calderon, that he is the wealthiest citi- 
 zen of Peru, that he resides in Paris, and that Calderon has had the 
 charge of his,property and business here. 
 
 For these reasons all the ministers of foreign nations here have ta- 
 ken it for granted that the cablegram is authentic, and that the United 
 States has recognized the provisional government. They have in- 
 quired of me, and I have been compelled to say to them that they knew 
 as much as I did in reference to the matter, as all the evidence I had, 
 was the publication of the dispatch in the paper ; that it might be true, 
 but that it seemed to me that in a matter of such importance it would 
 naturally be supposed my government would have telegraphed me, in- 
 stead of leaving me to guess at the authenticity of the dispatch sent 
 as this was, through a party in no way authorized to speak for my gov- 
 ernment, and that for these reasons I doubted the truth of the dispatch, 
 and that I must therefore wait for direct official information from my 
 government before taking any step officially for recognition until I 
 should see satisfactory evidence that Peru had acquiesced in the pro- 
 visional government ; the evidence of which I have not yet seen, 
 though for the last week that government seems to have made some 
 progress in this direction; siuce, so far as we can learn, Pi£rola has 
 been driven from Jauja, and his present whereabouts is unknown. 
 
 I have, &c, 
 
 LP. CHBISTIAXCY. 
 
 "No. 336. 
 Mr. Christiancy to Mr. Blaine. 
 
 Ko. 302.] Legation of the United States, 
 
 Lima, Peru, May 17, 1SS1. (Eeceived June 17.) 
 
 Sie : Eeferring to my dispatch Xo. 296, I have the honor to inform 
 you that though the tone of the Chilian press here and in Chili remains 
 the same upon the subject of "occupation indejinida v (indefinite occu- 
 pation), the Chilian authorities here have, within the last few days, al- 
 lowed sefior Calderon's government to send to the northern coast some 
 300 soldiers, to enable him to enforce his authority there, but whether 
 this is in aid of his right to collect duties there, or to enable him to 
 drive the prefects of Pierola from the provinces, is not publicly knowu 
 here; though I think the latter is the purpose ; but, in either view, it 
 gives some ground for a suspicion that the ground taken by the Chil- 
 ian papers and officers in favor of "indefinite occupation'* may have 
 been taken only in terrorem, to drive the people into the support of the 
 Calderon government, as I suggested in my dispatch 2\o. 286. 
 
 There is still another ground for this suspicion. It is well known 
 that the present Government of Chih is composed of the liberal party, 
 which, if left to its own free choice, would have always been willing to 
 make peace upon reasonable terms; but this liberal party holds power 
 by a very small majority, and all the other parties and fragments of 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 497 
 
 parties combine for the purpose of putting it down, each in hopes that 
 his own party may gain something by the change. 
 
 The most prominent of these opposition parties are the extreme war 
 party and the church party. In deference to these and the opposition < 
 generally, all of whom have found it for their interest to act with the 
 extreme war party, the present Secretary of War, Vergara, was put into' 
 the cabinet. 
 
 He is an able and practical man, with too much intelligence not to< 
 see the excesses of the populace, who compose the mass of the extreme 
 war party. 
 
 An election is soon to come off for president of the republic. Santa 
 Maria is the candidate of the liberals, and General Baquedauo is likely 
 to be the representative of the war party. The fear that the war party 
 may succeed, and the knowledge that a successful general is always 
 popular with the masses, may have driven even the liberal party to 
 take ground in favor of "indefinite occupation," and during the polit- 
 ical campaign to show themselves as extreme in this direction as their 
 opponents, without any real intention of carrying out the extremes of 
 that policy if elected. 
 
 Besides all these things the relations of Chili with the Argentine Be- 
 public are by no means cordial, and Chili may have some apprehensions 
 that, with her long backbone exposed, the Argentines may almost any 
 day penetrate between her spinal processes, and strike a fatal blow at 
 her vital parts. My own opinion is, that any attempt of Chili to hold 
 Peru as a conquered country will, at no very distant day, lead to this 
 or a similar catastrophe, and I have some suspicion that the Chilian 
 Government see this in the same light as I do. But it is not possible 
 at present to ascertaiu precisely the ideas of the Chilian Government, 
 if they have any very definite policy, which I doubt. 
 
 The 15th instant was the day fixed by Calderon for the meeting of 
 congress, but about 25 were still wanting to make a quorum. 
 I have, &c, 
 
 I. P. CHBISTIANCY. 
 
 P. S. — Mat 23. — Since writing the above it has become still more 
 probable that the threat of "indefinite occupation" was intended only 
 to drive the Peruvians into the support of the provisional government, 
 as two days ago they allowed this government to send 75 soldiers to 
 Tarma, Oroya, &c, to control that part of the country, so as to allow 
 the members of congress to come to Lima, and it now begins to look as 
 if Calderon might secure a quorum (two-thirds) of the congress. If he 
 does succeed, it will be some evidence that Peru acquiesces in that gov- 
 ernment. And if he gets the two thirds of the members, 1 think I shall 
 at once recognize the provisional government, or that of congress and 
 the president they may elect, unless, in the mean time, I shall receive 
 other instructions. 
 
 Your friend, &c. 
 
 I. P. C. 
 
 No. 337. 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 3D5.] Legation of the United States, 
 
 Lima, Peru, May 23, 1881. (Keceived June 17.) 
 Sir: Beferring to my dispatch No. 285, in which I stated it as prob- 
 S. Ex. 79 32 
 
>498 AFFAIRS IN CHILI, "PERU, AND BOLIVIA. 
 
 at)le that the Chilians had sent an expedition from Pisco at the south 
 and from some point at the north to co-operate with the force sent via 
 Chicla into the department of Junin, so as to cut off the retreat of 
 Pierola from Janja, I have now the honor to state that from all sources 
 of recent information no such additional expeditions were sent ; that 
 the expedition sent via Ohicla went to Cerro de Pasco, to Tarma, and 
 to Oroya ; that it is not entirely certain that they have even yet taken 
 Jauja, though I think this probable, and it is now intimated in the 
 papers that this force sent via Chicla to Cerm de Pasco is ordered to 
 return. 
 
 I have direct information from the secretary general of Pierola that 
 the latter left Jauja for the south on the 28th April, and I infer that he 
 is at this time at or near Arequipa, but he expected, when he left Jauja, 
 to return to Ayacucho by the 6th June, at which time the congress 
 called by him were to meet there. 
 
 Kei'erring to my same dispatch, 28.3, I have further to say that the 
 contemplated Chilian expedition to Arequipa has not yet taken place, 
 so far as we can learn here. The papers lately have been silent on the 
 subject. 
 
 Still, unless peace should soon take place, I look upon the expedition 
 as a necessity, and am inclined to believe it would be successful. 
 I have, «S:c., 
 
 I. P. CHEISTIAXCY. 
 
 Xo. 338. 
 
 Mr. Christhtncy to 2Ir'. Blaine. 
 
 3so. 310.] Legation of the United States, 
 
 Lima. Peru, May 27, 1881. (Received June 27.) 
 
 SiK : I have the honor to inform you that on the 1st instant I, with 
 every other member of the dix>loinatic corps here, received a circular 
 letter, dated April 30, from M. M. Galvez, claiming to be the secretary 
 of foreign relations of Peru, under the provisional government of Doc- 
 tor Don Francisco Garcia Calderon, stating the installation of that 
 government and the names of the cabinet officers ; this being evidently 
 written to invite a recognition by the diplomatic corps. A meeting of 
 that corps was called a day or two after to consider the propriety of 
 answering. The whole corps agreed that there was yet no sufficient 
 evidence that this provisional government had become the Government 
 de facto of Peru, and all concurred in the resolution not as yet to make 
 any reply. Another meeting of the corps was held yesterday, upon the 
 same subject, and while all (with the possible exception of one) agreed 
 that there was yet no sufficient ground for recognition, yet several, of 
 vhoni I was one, thought it would be proper to acknowledge the re- 
 ceipt of the letter, but in a manner which could not be construed as a 
 recognition. Some two or tbree seemed to object to answering, because 
 iliey thought they could not do so without implying a recognition. 
 
 I saw no difficulty in this, and feeling that it was right to treat with 
 entire frankness and candor the men claiming to constitute the govern- 
 ment, I have therefore written to Mr. Galvez the letter of the 2Gth 
 instant, a copy of which I inclose. 
 
 In connection with this I refer to my dispatch Xo. 2fU, stating the ex- 
 planation I then gave Mr. Galvez. 
 
APPAIES IN CHILI, PERU, AND BOLIVIA. 499 
 
 On the 25tli of March I also wrote a note to Pierola, or rather his 
 Secretary -General, explaining to him the ground upon which I should 
 proceed with reference to recognition, to exactly the same effect, and 
 almost in the same words as in the conversation with Galvez. (I also 
 sent him copy of so much, of Department dispatch No. 123, as relates 
 to the desire of our government to bring about an early peace.) 
 
 The above note was sent by the private courier of a friend of mine, 
 as the mails in that direction cannot be trusted at all, but its receipt has 
 been acknowledged. 
 
 As to the progress which the Oalderon government have been mak- 
 ing I, refer you to my dispatches Nos. 277, 283, 285, 302, and 305. 
 
 Since my dispatch 302, the provisional government have been allowed 
 to send some 225 more men, making about 300 in all, into the province of 
 Junin, for the purpose, as I suppose, of allowing the congressmen from 
 that region to come to Lima. But this force is too small to prevent 
 Pi6rola's congress from meeting at Ayacucho on the 6th June, as it is 
 reported and believed here that Pierola will bring them from the south 
 at least 1,000 men. 
 
 Such is the position at present. There is no difference of opinion in 
 the diplomatic corps as to the principles of recognition. But all seem 
 now to have become satisfied that unless the provisional government 
 shall succeed there will be little hope of an early peace. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 P. S. — June 1. — I send inclosed copy and translation of telegram 
 this day received by the dean of the diplomatic corps from Pierola's 
 secretary-general, dated May 26. This movement may lead to delay in 
 the recognition of the provisional government until it can be ascer- 
 tained what success Pierola may have in obtaining a national represen- 
 tation.— I. P. 0. 
 
 [Inclosure I in Xo. 310.] 
 Mr. Vhrisiiancy to Mr. Galvez. 
 
 Legation of the United States, 
 
 Lima, Peru, May 26, 1881. 
 Sefior Don M. M. Galvez. 
 
 I received your letter of April 30, informing me of tlie installation of the provisional 
 government, of which. Sefior Doctor Don Francisco Garcia Calderoa was said to be the 
 head, and namiog the other executive officers. 
 
 I have refrained from answering your letter hitherto, not by reason of any disrespect 
 for or hostility to Mr. Calderon or to you, or to any of the persons mentioned as his 
 cabinet. But (as I had the honor verbally to explain to you some time ago) because 
 my government had acknowledged and instructed me to acknowledge the government 
 of Pierola ; and upon the principles upon which my government have heretofore acted 
 in like cases I could not without its instructions, recognize another Government of Peru, 
 hostile to that already recognized, until it shall clearly and satisfactorily appear to 
 me that the majority of the people of Peru have adopted, or acquiesced in the new 
 government. The moment this shall satisfactorily appear, I shall, on the part of my 
 government, most cordially recognize the new government without waiting any in- 
 structions. I have carefully endeavored to obtain all the evidence in my power upon 
 this point ; and, though this now movement to establish a government in opposition 
 to that of Pierola seems for the last few weeks to have made considerable progress in 
 obtaining the approval of the people of Peru, I cannot yet say that the evidence is 
 sufficiently clear, that it has, up to this time, been adopted by the majority. 
 
 Should it obtain a quorum of the congress which it has called together, this would 
 be strong proof in its favor, and sufficient for me, unless it should appear at that time 
 probable that the congress called by Pierola would be more likely to represent the 
 majority, in which case I should have to wait a few days to ascertain the facts. 
 
500 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 1 have kept my government fully informed of the principles upon which I intended 
 to act on this question of recognition, unless otherwise instructed, and though there 
 has been ample time for receiving their instructions hy mail, if not satisfied with the 
 course I intend to pursue, I have yet received no instructions whatever upon this 
 point; from which I am compelled to infer that there must be some mistake in the 
 telegram from Paris published in El Orden of the 14th instant. Had I received such 
 a telegram from my government, I should have promptly recognized the new govern- 
 ment. But very clearly I cannot act upon this unofficial dispatch. 
 
 Please accept the assurance, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inolosure 2 in No. 310. — Telegram.— Translation.] 
 (Received in Chala', May 26, at 8.40 p. m., from Arequipa, May 26, 1881.) 
 
 No. 190. 
 
 Sefior Jorge de Tezames Pinto, 
 
 Dean of the Diplomatic Corps, Lima : 
 
 His excellency the supreme chief, his secretary-general (subscribing), and suit, ar- 
 rived yesterday at this city, his excellency having been the object of the warmest 
 demonstrations of adhesion and enthusiasm in all the departments on his 'passage. 
 "We shall remain at Arequipa until the 15th June, and leave on that date for Ayacucho, 
 in order to install on the first of July the national assembly, the meeting of which has 
 been postponed to that date. St" 
 
 Be pleased to transmit this communication to the honorable colleagues of the diplo- 
 matic corps, of whom I subscribe myself their obedient servant, 
 
 AURELIO GARCIA v GARCIA. 
 
 No. 339. 
 
 Mr. Blaine to Mr. Hurlbut. 
 
 "Eo. 2.] Department of State, 
 
 Washington, June 15, 1881. 
 
 Sir : The deplorable condition of Peru, the disorganization of its 
 government, and the absence of precise and trustworthy information 
 as to the state of affairs now existing in that unhappy country, render 
 it impossible to give you instructions as full and definite as I would 
 desire. 
 
 Judging from the most recent dispatches from our ministers, you 
 -will probably find on the part of the Chilian authorities in possession 
 of Peru a willingness to facilitate the establishment of the provisional 
 government which has been attempted by Seuor Calderon. If so you 
 will do all you properly can to encourage the Peruvians to accept any 
 reasonable conditions and limitations with which this concession may 
 be accompanied. It is vitally important to Peru that she be allowed 
 to resume the functions of a native and orderly government, both for 
 the purposes of internal administration and the negotiation of peace. 
 To obtain this end it would be far better to accept conditions which 
 may be hard and unwelcome than by demanding too much to force the 
 continuance of the military control of Chili. It is hoped that you will 
 be able, in your necessary association with the Chilian authorities, to 
 impress upon them that the more liberal and considerate their policy r 
 the surer it will be to obtain a lasting and satisfactory settlement. The 
 Peruvians cannot but be aware of the sympathy and interest of the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 501 
 
 people and Government of the United States, and will, I feel confident, 
 be prepared to give to your representations tbe consideration to which, 
 the friendly anxiety of this government entitles them. 
 
 The United States cannot refuse to recognize the rights Avhich the 
 Chilian Government has acquired by the successes of the war, and it 
 may be that a cession of territory will be the necessary price to be paid 
 for peace. It would seem to be injudicious for Peru to declare that 
 under no circumstances could the loss of territory be accepted as the 
 result of negotiation. The great objects of the provisional authorities 
 of Peru would seem to be to secure the establishment of a constitu- 
 tional government, and next to succeed in the opening of negotiations 
 for peace without the declaration of preliminary conditions as an ulti- 
 matum on either side. It will be difficult, perhaps, to obtain this from 
 Chili ; but as the Chilian Government has distinctly repudiated the 
 idea that this was a war of conquest, the Government of Peru may 
 fairly claim the opportunity to make propositions of indemnity and 
 guarantee before submitting to a cession of territory. As far as the 
 influence of the United States will go in Chili, it will be exerted to 
 induce the Chilian Government to consent that the question of the 
 cession of territory should be the subject of negotiation and not the 
 coudition precedent upon which alone negotiation shall commence. If 
 you can aid the Government of Peru in securing such a result, yon 
 will have rendered the service Avhich seems most pressing. Whether 
 it is in the power of the Peruvian Government to make any arrange- 
 ments at home or abroad, singly or with the assistance of friendly 
 powers, which will furnish the necessary indemnity or supply the re- 
 quired guarantee, you will be better able to advise me after you have 
 reached your post. 
 
 As you are aware more than one proposition has been submitted to 
 the consideration of this government looking to a friendly intervention 
 by which Peru might be enabled to meet the conditions which would 
 probably be imposed. Circumstances do uot seem at present opportune 
 for such action ; but if, upon full knowledge of the condition of Peru, 
 you can inform this government that Peru can devise and carry into 
 practical effect a plan by which all the reasonable conditions of Chili 
 can be met without sacrificing the integrity of Peruvian territory, the 
 Government of the United States would be willing to offer its good 
 offices towards the execution of such a project. 
 
 As a strictly confidential communication, I inclose you a copy of in- 
 structions sent this day to the United States minister at Santiago. 
 You will thus be advised of the position which this government as- 
 sumes toward all the parties to this deplorable conflict. It is the 
 desire of the United States to act in a spirit of the sincerest friendship 
 to the three republics, and to use its influence solely in the interest of 
 an honorable and lasting peace. 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
 No. 340. 
 
 Mr. Ghristiancy to Mr. Blaine. 
 
 No. 319.] Legation of the United States, 
 
 Lima, Peru, June 10, 1881. (Received July 6.) 
 Sir : In reply to your dispatch No. 143 I have the honor to say that 
 
502 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 that dispatch places upon me the grave responsibility of determining 
 as matters of fact three distinct propositions, upon none of which have 
 I been able to obtain any very satisfactory evidence : 
 
 1st. Whether the provisional government of Senor Calderon is sup- 
 ported by the character and influence of Peru ; 
 
 2d. Whether it is really endeavoring to restore constitutional gov- 
 ernment; aud 
 
 3d. If so, whether it is with a view to order within and negotiation 
 with Chili for peace. 
 
 The first question under present circumstances is a very difficult one 
 to decide just now. If mere money or financial "influence" be referred 
 to, this is to be found along the coast, which is completely controlled 
 by the Chilians, and consists of the wealthy owners of sugar planta- 
 tions and the mercantile class, who seek for peace at any price and 
 upon any terms. But if "by influence" or the weight of influence 
 upon political or government matters (which I conclude must be your 
 meaning), then there is great room for doubt, and I am much inclined 
 to think it may turn out to be against the provisional government. It 
 is a very embarrassing question to decide. 
 
 Upon the other two questions I have no ground, except the profes- 
 sions of the provisional government, upon which to decide them ; but 
 I am inclined to believe they should be decided in the affirmative. 
 
 The first is the difficult question. The provisional government has 
 not yet succeeded in getting the attendance of a quorum of congress,- 
 though it has a full quorum of the senate, but lacks twelve members of 
 a quorum of the house. 
 
 At my request of yesterday the dean of the diplomatic corps has 
 called a meeting of the corps for 2 o'clock to day, to enable me to get 
 their opinion upon these questions of fact, but this will be too late for 
 the mail to-day. 
 
 I had a full conference two days since with Senor Calderon, and 
 have a favorable opinion of him. 
 
 But I yesterday had a conference with Admiral Lynch, commander 
 of the Chilian forces here, and with Senor Godoy, the representative of 
 Chili in political matters here, and I found at once that they do not 
 want the provisional government of Peru recognized yet, both saying 
 to me that they had not recognized it on the part of Chili, and that they 
 did not wish it recognized by other nations until they had recognized it. 
 I also yesterday ascertained from a perfectly reliable source, that the 
 Chilian representatives here have, within a few days past, aprjroached 
 at least one of the commissioners by Pierola to negotiate peace, to know 
 if such commissioners were still authorized to act, holding out to them 
 hopes that they would still negotiate with him. The position is full of 
 complications, but upon the whole it would certainly seem to be the ob- 
 ject of Chili at present to play off one of these Peruvian governments 
 against the other ; to give Chib a fair pretext to hold permanent occu- 
 pation of Peru. It may be that in a few days I may obtain sufficient 
 information to bring the case within the principle you have laid, and if 
 so, I shall act at once. Since I, as well as you and all true Americans, 
 prefer a constitutional government to a dictatorship. 
 I am, iSrc, 
 
 I. P. CHRISTIANCY. 
 
 P. S. — This provisional government is not, even as such, a govern- 
 ment de facto in any part of Peru, except in a little hamlet of Magda- 
 lena.— I. P. C. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 503 
 
 No. 341. 
 
 Mr. Ghristiancy to Mr. Blaine. 
 
 Confidential. 
 
 No. 320.] Legation of the United States, 
 
 Lima, Peru, June 21, 1881. (Eeceived July 18.) 
 
 Sir : Keferring to my dispatch No. 31!), I have the honor to inform 
 you of the result of the diplomatic meeting therein referred to. I found 
 it to be the opinion of the corps, 1st, that the provisional government 
 (so called) is supported by the weight of character and political influ- 
 ence of Peru ; 2d, that the purpose of that government is to restore 
 constitutional government in Peru ; 3d, that it seeks to restore inter- 
 nal order ; 4th, that it wishes to make peace with Chili ; but, 5th, that 
 this provisional government (so called) cannot, under present circum- 
 stances, be considered a government de facto, so as to warrant its rec- 
 ognition on that ground. 
 
 I am inclined to concur with the corps in all the above points, though 
 I still have some doubts upon the first, and am not without some sus- 
 picions as to the second, third, and fourth. 
 
 This might seem, at first view, to bring the case within the princi- 
 ples of your dispatch No. 143, and to authorize (though it does not in- 
 struct) me to recognize what is called the Calderon or provisional gov- 
 ernment. But your dispatch, when carefully considered, may, and per- 
 haps must, be construed as having been written with the understand- 
 ing that the Calderon government was a government de facto of at 
 least a large part of Peru. 
 
 The fact is that it is not a government de facto, or in the exercise of 
 the functions of government anywhere, except so far as the Chilian 
 authorities choose to allow it to exercise any powers of the kind, and 
 these are confined within very narrow limits. It has been allowed to 
 exercise thus far full powers only in the little hamlet of Magdalena, and 
 has been allowed to send a few hundred men to Huaray and a still 
 smaller force to the department of Junin to drive out the prefects who 
 had been appointed by Pierola and to get the members of congress from 
 those places to come here. It has also prefects friendly to it in most of 
 the western slope of the Andes, except in the south. 
 
 But the courts of justice have not been restored anywhere, not even 
 in Lima, and the whole country, except what is held by Pierola. is sub- 
 ject to such martial law as the Chilian authorities see fit to impose. In 
 short, the Calderon government has thus far been used only as the 
 instrument of Chili to carry out her own purposes, and there are not 
 wanting many intelligent Peruvians and neutrals here who believe that 
 it is the purpose of the Calderon government to aid Chili in keeping 
 Peru permanently under the control of Chili as a permanent conquest. 
 
 It is well known here' that many men of wealth among the Peruvians 
 prefer that the Chilians should govern the country, as they think it 
 would establish a more permanent government than Peru is likely to, 
 and that their property would be more safe, but even those would pre- 
 fer a protectorate of or annexation to the United States. 
 
 Seiior F. Garcia Calderon is a wealthy man, and the representative 
 of the Coyeneches, the wealthiest family in Peru. I am inclined, never- 
 theless, to believe that he is acting in good faith to Peru, with the hope 
 
504 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 of establishing peace, but I do not feel certain of it. If lie is acting in 
 good faith, I am satisfied the Chilians are deceiving him. 
 j Xow, on looking carefully at your dispatch Xo. 143, I see clearly that 
 one of your objects in recognizing the Calderou government is to bring- 
 about peace with Chili, which implies your desire for the continued 
 national existence of Peru, and does not admit the idea of its perma- 
 nent conquest by Chili. 
 
 But I am now fully satisfied that Chili does not intend to make peace 
 with Peru at all unless driven to do so by outside pressure. For the 
 grounds of this opinion I refer you to my last dispatch, No. 319, and 
 wish now to say further, that on Sunday last (19th instant) Mr. Godoy, 
 the political representative of Chili here, called upon me at the lega- 
 tion, and we had a free and general conversation upon the whole situa- 
 tion. I remarked to him (as I had before) that I had received instruc- 
 tions from my government under which I might feel authorized to recog- 
 nize the Calderou government, which I had supposed and believed my 
 government had supposed would be looked upon by Chili as rather 
 friendly than hostile to Chili, inasmuch as the Calderon government 
 had been encouraged by Chili. He again repeated that Chili had not 
 yet recognized it. I said substantially that if the Calderon govern- 
 ment should succeed in obtaining a quorum of congress it would be 
 strong evidence that it represented the nation. To this he seemed to 
 assent. 
 
 I further remarked, that while my government preserved its strict 
 neutrality, it was anxious for peace between- the belligerents at the 
 earliest practicable period ; and I thought this might be brought about 
 if- a quorum of congress should be obtained, or at least as soon as the 
 government should be able to get back fully to a constitutional govern- 
 ment. To this he replied, " It will be a Aery long time before a peace can 
 Tbe settled." 
 
 He did not know that I knew he and the Chilian authorities had been 
 coquetting with the friends and commissioners of Pierola. But I could 
 readily see, from this as well as the conversation referred to in my dispatch 
 No. 319, that they did not wish any encouragement or prestige to be 
 given to the Calderon government, except what they might choose to 
 give ; and I could not but infer they were playing off the Calderon gov- 
 ernment against that of Pierola, for the purpose of furnishing a plausi- 
 ble pretext for holding the whole of Peru, or so much of it as they could. 
 
 From this statement it will be readily seen that a literal compliance 
 with the permission given in your dispatch to recognize the Calderon 
 government, would be likely to violate its spirit and intent ; and, be- 
 fore departing from the safe and generally approved rule of recogniz- 
 ing a new government, that it should appear to be a government de 
 facto. I think I ought to wait, at least until the arrival of another 
 mail (there having been no connection last week at the Isthmus), as in 
 the mean time you will have received other dispatches from me which 
 may enable you to give instructions more applicable to the present 
 state of facts. I have thought it best to wait, at least till the arrival 
 of the next mail, before acting, and as my successor, who will come with 
 the latest instructions, may wish to have a clear field, I may wait till 
 he arrives before making a final decision. 
 
 In coming to these conclusions I have done what I thiuk you would 
 have done, in view of all the circumstances, had you been in my place 
 and acting under the like instructions. 
 
 No other foreign minister here is willing yet to recognize this Calde- 
 jon government, and I think I see an anxiety on the part of some of 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 505 
 
 ■them to see the United States depart from the generally received doc- 
 trine of recognizing new governments only when they have become gov- 
 ernments de facto. 
 
 Whatever support the "Calderon government" may appear to have, 
 it is the settled and unanimous opinion of all intelligent men here, that 
 it would not last a day after the Chilian forces should leave the country. 
 And my own opinion is, that if the United States should recognize it 
 to-day, the Chilian authorities would take good care that any prestige 
 it might gain from such recognition should he more than counterbal- 
 anced by the more stringent limitations it would impose upon any ex- 
 ercise of governmental powers. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
 No. 342. 
 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 322.] Legation of the United States, 
 
 Lima, Peru, June 28, 1881. (Eeceived July 18.) 
 
 Sir : Eeferring to my dispatch No. 320, 1 have now the honor further 
 to say that I have been carefully considering the question of the recog- 
 nition of the provisional government therein referred to, and having 
 received nothing by the last mail in any way modifying your dispatch 
 No. 143, and knowing that I had kept you fully informed of all the 
 facts necessary to a decision, and seeing that the question whether the 
 Calderon government was a government de facto was not expressly 
 made a condition, and that the fact of your having already received 
 Mr. Elmore as the confidential agent of that government, which I take 
 to be a clear indication that you would expect me to recognize that 
 government if I found the facts you had stated as hypothetical to be 
 true, but more especially hearing a rumor here as having come from 
 the United States that my successor would not come here until peace 
 was settled, and, therefore, fearing that my neglect to make the requi- 
 sition might be construed as a design on my part to delay his coming, 
 I finally concluded, on the 26th instant, to recognize the provisional 
 government as such, and I here inclose copy of my letter to Mr. Galvez, 
 Minister of Foreign Affairs, making the recognition. 
 
 I must confess that, if left to act entirely to my own judgment, I 
 should not have recognized this provisional government until it should 
 have become a government de facto, or until it should have succeeded 
 in assembling a quorum of congress, nor until we could have seen 
 whether this congress or that of PMrola (national assembly) at Ayacu- 
 •cho should represent the most of the people of Peru. But I claim no 
 right to set up my own judgment against that of my government, be- 
 lieving strict obedience to the wishes of my government my first and 
 .sole duty. 
 
 In making the recognition, I have thought it best to place it on the 
 precise grounds indicated by your instructions, believing that it would 
 have a better effect in aiding this incipient government by a clear in- 
 timation that our government was more inclined to encourage consti- 
 tutional than dictatorial government, and that they wished to aid in 
 restoring peace between these belligerent republics. 
 I have, &c, 
 
 I. P. CHEISTIANCY. 
 
506 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosure in No. 322.J 
 Mr. Christiancy to Mr. Galvez. 
 
 Legation of the United States, 
 
 Lima, Peru, June 26, 1881. 
 
 Monsieur le Ministre : My government, having been informed of the organization 
 at Magdalena of what, in your circular note to me of April 30 last, is styled a pro- 
 visional government under the presidency of Seiior Doctor Don Francisco Garcia Cal- 
 deron, has given me instructions, in substance, that if I find, 1st, that such provis- 
 ional government is supported by the weight of character and influence of Peru ; 2d, 
 that it is endeavoring to restore coustitutional government, with a view both to in- 
 ternal order and negotiations with Chili for peace, then I am to recognize it as a pro- 
 visional government. 
 
 Believing, from the best evidence I can obtain, that each of these hypothetical 
 propositions is sufficiently established in the affirmative, I therefore formally express 
 such recognition on the part of the Government of the United States. 
 
 Please accept the assurance, &c, 
 
 I. P. CHRISTIANCY. 
 
 ]STo. 343. 
 Mr. Christiancy to Mr. Blaine. 
 
 No. 327.] Legation of the United States, 
 
 Lima, Peru, July 6, 1881. (Eeceived July 26.) 
 
 Sir : Eeferring to your dispatch No. 148, and to my dispatch No. 
 322, I have the honor to state that, as I had some reason to fear when 
 I wrote the last dispatch, I have still more reason to fear now, that the 
 recognition of the provisional government of Francisco G-arcia Calde- 
 ron was premature, I have now further to say that the forces of that 
 government sent to the north have, some 58 to C8 of them (for the 
 reports do not agree), gone over to Admiral Montero, a partisan of 
 Pi6rola, and that those sent into the department of Jmiin have been 
 effectually driven out by the friends of Pierola within the last few days, 
 and their prospects for forming a government are not as good now as 
 before ; yet, in view of your dispatch No. 150, as well as your pre- 
 vious dispatches, it is very clear that you had determined upon the 
 recognition of the provisional government, and that I only complied 
 with your wish in making the recognition. 
 
 I fear, however, this recognition will lead to many complications. 
 But 1 have obeyed what I was compelled to consider your orders. 
 
 I am, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 344. 
 Mr. Christiancy to 2Ir. Blaine. 
 
 No. 330.] Legation of the United States, 
 
 Lima, Peru, July 12, 1881. (Received August 2.) 
 Sir : I have the honor to inclose to you copy and translation of the 
 circular letter of Mr. Galvez, secretary of foreign relations of Peru,, 
 dated yesterday, stating the installation of Congress, and the law passed 
 continuing Mr. Galderon as President until the people shall elect 
 another, &c, of which 1 have acknowledged the receipt. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 507 
 
 A quorum of Congress was obtained, but I think there is room for 
 doubt whether the means adopted to get some of the members here 
 were strictly regular. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 [Inolosure in No. 330.— Translation, 1 
 
 Mr. Gale ex to Mr. Christiancy. 
 
 circular. 
 
 Department of Foreign Relations, 
 
 Magdalena, July 11, 1881. 
 Sir: I have the honor to bring to the knowledge of your excellency that the na- 
 tional Congress having been installed yesterday in the town of Chorillo?, it has en- 
 acted a law by which the powers conferred by the people upon His Excellency Fran- 
 cisco Garcia Calderon as President of the republic, are confirmed and continued ac- 
 cording to the political constitution of 1860, until some other citizen shall be elected 
 by the people to replace him. 
 
 Craving your excellency to inform the Government of the United States of these- 
 facts, it is grateful to me to reiterate to your excellency the assurance of my high 
 consideration. 
 
 M. M. GALVEZ. 
 
 Hon. I. P. Christiancy, 
 
 Envoy Extraordinary and Minister Plenipotentiary of the United States of America. 
 
 No. 345. 
 Mr. Hurlbut to Mr. Blaine. 
 
 MEMOBANDUM. 
 
 At this city I have had opportunity to see the principal newspapers 
 of the South American republics. A very strong and general sentiment 
 appears in all of them against any dismemberment of Pern. 
 
 This feeling is naturally strongest in the Argentine Republic, whose 
 relations with Chili are complicated; but it is expressed with much 
 strength of argument by Colombia, Venezuela, and Ecuador. 
 
 All these articles refer to the agreement of 1810, in which without 
 special definition of boundaries the doctrine of " Hi possidetis 7 ' was ac- 
 cepted as the basis. 
 
 Chili is charged with being the first to break up the harmony, and her 
 pretensions are regarded as dangerous to the entire family on the con- 
 tinent. 
 
 There is no doubt that these articles reflect the feelings of the ruling- 
 classes. 
 
 Colombia has invited the other South American states to a congress 
 at Panama, to establish among other things the rule that all disputes 
 shall be determined by arbitration. 
 
 The Argentine Republic is now giving transit over its territory for 
 arms and munitions and other supplies to La Paz, the capital of Bo- 
 livia, and thus to the forces of Pierola and Campero. As that republic 
 has good reason to apprehend war with Chili, and is now anxiously 
 waiting for an iron-clad from England, so as to meet the Chilian navy 
 
508 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 ■on equal terms, it is good strategy for her to keep alive tlie war in Pern 
 and Bolivia to occupy the Chilian forces, until they can be met on equal 
 terms. 
 
 This purpose of the Argentines will have a tendency to prolong the 
 war and to strengthen the party of Pierola, to the extent of causing 
 serious embarrassment in negotiation for peace. 
 
 I am inclined to believe that the Chilians themselves are embarrassed 
 by their present position, as it is not at all impossible that the Argen- 
 tines may avail themselves of the first opportunity after they are pre- 
 pared to declare war upon Chili. 
 
 The drift of public sentiment and the attitude of her nearest and 
 most powerful neighbor are evidently producing some effect in -San- 
 tiago. 
 
 It is lamentable that at this moment there should be a double govern- 
 ment in Peru, one of which in the end will probably have to be sup- 
 pressed by force. An effective union between Pietola and the govern- 
 ment of La Paz, in the Trans-Andine departments of Peru and Bolivia, 
 if supported even passively by the Argentine Government, can be so 
 handled by a brave and energetic man as to be very annoying and very 
 ■expensive to Chili. 
 
 The consul-general of Peru, at this place, Colonel Larranegra, is a 
 very intense follower of Pierola, and denies the authority of the Calde- 
 ron government ; while the Peruvian minister resident to Central 
 America, Thomas Lameo, now in this city, considers the Calderon 
 government the only hope of peace and of return to constitutional 
 .government. 
 
 From the evident difference in character of the two men I consider 
 it additional evidence of the fact as generally reported, that the better 
 classes of Peru support the Calderon government, yet it is to be re- 
 membered that it is from the inferior classes of society in these coun- 
 tries that revolutions are recruited. 
 
 > T o. 346. 
 
 Mr. Blaine to Mr. Hurlbut. 
 
 3sTo. 7.] Department of State, 
 
 Washington, August 4, 1881. 
 Sir : As you are aware several communications have been recently 
 addressed to tins Department in reference to certain alleged claims of 
 ■citizens of the United States upon the Government of Peru, with most 
 urgent request for the good offices of the United States Government in 
 their behalf. While I cannot anticipate that in the present distressed 
 and unsettled condition of that country our representations, however 
 urgent, will receive prompt or satisfactory attention, I deem it best, in 
 view of possible contingencies, to furnish you with general instructions. 
 The two claims for which special consideration and active intervention 
 have been asked are those known as the Cochet claim and the Landreau 
 claim. In reference to the Cochet claim there has been no information 
 laid before the Department of a sufficiently definite character to warrant 
 a, specific instruction, and in the absence of the requisite data here you 
 will be left to take such steps as may seem expedient on investigating 
 the origin and character of the claim. The primal point at issue is 
 •whether any American citizen or association of citizens has acquired an 
 interest in the claim in a manner entitling him or them to the eood 
 
AFFAIES IN CHILI, PERU, AND BOLIVIA. 509 
 
 offices of this government in making any representation to Peru. As 
 the American holders of the claim or their attorneys will be on the 
 ground, you will no doubt be placed in possession- of all the facts, but 
 you will take no step committing your government to the use of its 
 good offices without first reporting in full to the Department for well 
 considered and definite instruction. In regard to the Landreau claim, 
 I see no reason to differ from the conclusion to which my predecessors 
 seem to have arrived. John 0. Landreau was an American citizen, ap- 
 parently entitled under a lawful contract to reasonable compensation 
 for important services to the Peruvian Government. In conformity 
 witli the established practice of our government, while you cannot in 
 such case make an official demand for the settlement of this claim, you 
 will enqdoy your good offices to procure its prompt and just considera- 
 tion. You will have observed that in the contract made by the Peru- 
 vian Government with Landreau and his brother it is expressly stipu- 
 lated thatany questions arising under its provisions should be submitted 
 to the judicial tribunal of Peru, and that in no case shall diplomatic 
 intervention be asked. You will also notice that the supreme court of 
 Peru, sustaining a decision of the court below, has ruled that it had no 
 jurisdiction of this contract, thus leaving Landreau in a position in which 
 he can neither appeal to his own government nor obtain a judgment 
 from the tribunals to which, by the contract, he was authorized to ap- 
 ply- 
 
 While this government will not, as at present informed, undertake to 
 construe the contract or to decide upon the extent of the compensation 
 due Landreau, you are instructed to call the attention of the Peruvian 
 Government to this injustice, andsay thatthe Government of the United 
 States will expect some adequate and proper means to be provided by 
 which Landreau can obtain a judicial decision upon his rights. If the 
 constitution of the Peruvian courts or the interpretation of the law by 
 Peruvian judges deprives Landreau of the justice which the contract 
 itself guaranteed him, then, in the opinion of this government, Peru is 
 bound in duty and in honor to do one of three things, viz : Supply an 
 impartial tribunal, extend the jurisdiction of the present courts, or sub- 
 mit the case of Landreau to arbitration. I desire also to call your at- 
 tention to the fact that in the anticipated treaty which is to adjust the 
 relations of Chili and Peru, the latter may possibly be compelled to 
 submit to the loss of territory. If the territory to be surrendered should 
 include the guano deposits which were discovered by Landreau, and 
 for the discovery of which Peru contracted to pay him a royalty upon 
 the tonnage removed, then the Peruvian Government should in the 
 treaty stipulate with Chili for the preservation and payment to Land- 
 reau of the amount due under his contract. If transfer be made to 
 Chili it should be understood that this claim of an American citizen, if 
 fairly adjudicated in his favor, shall be treated as a proper lien on the 
 property to which it attaches, and that Chili accepts the cession w r ith 
 that condition annexed. As it may be presumed that you will be fully 
 informed as to the progress of the negotiations between Chili and Peru 
 for a treaty of peace, you will make such effort as you judiciously can 
 to secure for Landreau a fair settlement of his claim. You will take 
 special care to notify both the Chilian and Peruvian authorities of the 
 character and status of the claim in order that no definitive treaty of 
 peace shall be made in disregard of the rights which Landreau may be 
 found to possess. 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
510 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 347. 
 
 Mr. Rurlbut to Mr. Blaine. 
 
 No. 2.] Legation op the United States, 
 
 Lima, Peru, August 10, 1881. (Beceived September 2.) 
 
 Sir : I propose, in tliis dispatch, to lay before you the precise situa- 
 tion of affairs in this country, so far as I have been able to ascertain 
 such situation, both military and political. 
 
 The military situation is perfectly simple. Peru is effectually con- 
 quered. She has no longer any army or navy ; she has no soldiers, no 
 ships of war, no fortresses, no guns in position or in the field, no muni- 
 tions of war, no means of buying any, no revenue, no treasury. 
 
 "War, as such, is finished, so far as she is concerned, and has been 
 for six months. 
 
 The Chdians have captured or destroyed her navy, have occupied, 
 and still hold her entire sea-coast, her capital city, and her custom- 
 houses. They have occupied in force the territory of Tarapaca, with 
 its nitrate beds, and they hold the guano deposits, and all the accessi- 
 ble and fertile valleys debouching on the sea. They collect the duties 
 at all the ports, they sell the nitrates and guano, they levy heavy con- 
 tributions on the cities, and on the planters in the country held by 
 them. The duties at the custom-houses collected by them in June were 
 $400,000 iu silver. 
 
 In the interior there is some show of resistance, but infinitely more 
 show than substance. Secure in the physical obstacles to the march of 
 troops, small bands of irregulars travel over the slopes of the Andes, 
 more dangerous to their countrymen than to the Chilians. Regular 
 war is out of the question, and, for all practical purposes, armed re- 
 sistance to the Chilian force has ceased. 
 
 In so far as regards the political situation of the country in its inter- 
 nal relations, I consider that the government of Garcia Calderon was prop- 
 erly recognized by my predecessor. It is not a regular or constitutional 
 government, but it is infinitely more so than that of Pierola, which 
 was a violent usurpation, autocratic and despotic. Around the Calde- 
 ron government all the better class of men, the holders of property, 
 the men of education, the friends of constitutional order and of peace, 
 are disposed to assemble. 
 
 There has been, and is now in session a national Congress, represent- 
 ing in its number a very decided majority, and a full quorum of sena- 
 tors and representatives, long since legitimately elected under all con- 
 stitutional forms. 
 
 This Congress has recognized Mr. Calderon, and re-elected him as 
 Provisional President. Calderon and his cabinet are perfectly ready to 
 give way, at any time, to any man of character, who can unite all ele- 
 ments in the nation, and who may be approved by the Congress. 
 
 To this end negotiations are now going on with Pierola and his ad- 
 herents. It is hoped they may succeed, and that a single head of the 
 republic may be recognized by all. 
 
 The element now represented by the Calderon government desires 
 peace, and Congress has authorized the Provisional President to enter 
 into negotiations for that purpose. 
 
 I now propose to state to you the difficulties and special hardships 
 w r hk'h surround the Calderon government in their honest attempt to 
 procure fair conditions of peace. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 511 
 
 Iii the first place, the Chilian authorities have never recognized this 
 government in any clear and distinct form. It has, from the beginning', 
 been tolerated, consented to, and in some particulars, aided, by the 
 Chilian military authorities; a procedure on their part which may 
 either be from a real desire to re-establish order in Peru, or more prob- 
 ably to foster a division in the nation, which would still farther di- 
 minish her capacity for resistance. 
 
 Pursuant to the resolution of Congress, Mr. Calderon named his 
 plenipotentiaries to confer on terms of peace Avith Mr. Manuel Godoy, 
 the Chilian commissioner. Mr. Godoy has so far declined to receive 
 these plenipotentiaries, and the reason is evident. By reception and 
 the exchange of credentials the government of Mr. Calderon would be 
 effectually recognized as the authority in Peru. Godoy then proposed 
 to confer directly with President Calderon, but insisted that the con- 
 ferences should be of a private character. To this the Peruvians re- 
 plied, that the making of peace was an affair of the highest public 
 nature, with which they could only deal in their public character, and 
 reiterated their request for exchange of credentials. Mr. Godoy has 
 taken time to-day to refer the question by telegraph to Santiago. 
 
 It is the purpose of the Peruvians to insist on recognition, and to pro- 
 long the discussion as much as possible. 
 
 I gather from various sources, and with reasonable certainty, the 
 actual purposes of Chili. 
 
 It appears to be the declared intention of the existing government in 
 Chili to make the cession of the department of Mochequa up to the 
 river Ilo, the sine qua non of peace. 
 
 To such cession it is simply impossible for any Peruvian Government 
 to consent ; first, because public indignation would overthrow any that 
 should so consent ; second, because the constitution of Peru expressly 
 forbids the execution of any treaty which diminishes the territorial in- 
 tegrity or reduces the sovereignty of Peru; and third, because the pos- 
 session of that territory by Peru is the only visible means of future 
 support, and of payment of their large public debt. 
 
 Yet it is in the power of the Chilian military authorities to extinguish 
 the Calderon government, and thus leave the country to anarchy ; and 
 I feel satisfied that if they cannot obtain from Calderon submission to 
 such terms as they are likely to dictate, they will dissipate his govern- 
 ment, unless it shall be sustained by some stronger power. 
 
 Mr. Calderon says to me, that he will not consent, in any event, to 
 the division of Peruvian territory, and that he will endure any conse- 
 quences. He also says, that he is prepared to pay any indemnity in 
 reason, to twenty, thirty, or even forty millions- of dollars, and inas- 
 much as the Chilian Government officially state that 830,000,000 is the 
 limit of their war expenses, and that they have received large sums, 
 the indemnity would seem to be abundant. I fear that Peru, alone, 
 cannot hope for endurable twins of peace from Chili, yet although ut- 
 terly beaten in the war, she ought still to be considered as a nation. 
 
 All South America, except Brazil, is opposed to the pretensions of 
 Chili, and all, without exception, look to the United States as the sole 
 hope for the future of Peru, and as the only power capable of checking 
 this greed of conquest. 
 
 It is, in my deliberate and carefully considered judgment, the proper 
 time for the United States to act as a friend to both parties, and to say 
 very kindly, but very firmly, to Chili, that war has ful tilled all its 
 legitimate purposes ; that longer continuance of the state of war would 
 be disastrous to both countries, and an unnecessary invasion of the 
 
512 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 rights of neutrals, engaged in commerce or owning as they do, large* 
 properties in Pern ; and that a peace honorable to both countries should 
 be concluded as soon as possible, on fair terms as to indemnity. It 
 will be remembered that Chili in the Arica conferences denied any pur- 
 pose of acquiring territory by conquest, and placed her demand for 
 cession of territory solely upon the ground that Bolivia and Peru had 
 not the means to pay a money indemnity. 
 
 Inasmuch as Peru offers to pay and can pay a money indemnity, the 
 forcible annexation of territory ought not to be permitted. By such 
 action on the part of our government we would gain the Lighest in- 
 fluence in South America, we should subserve the purposes of a truer 
 civilization, and inaugurate a higher stjie of national and international 
 law on this continent. 
 
 In whatever form this may be done, if done at all, it ought to be done 
 very speedily, and as a very serious emergency may arise at any time, 
 I should be happy to receive from the Department by telegraph, some 
 indication of approval or disapproval of my views. 
 
 As I am at present advised, after careful consideration of the instruc- 
 tions given to myself and Mr. Kilpatrick, and the personal conferences 
 held with you, I shall not interfere with Mr. G-odoy or his negotiations 
 unless it shall be apparent that the purpose is to crush out the national 
 life of Peru. In that case I shall calmly and strongly protest against 
 such a course, and indicate in distinct terms that such action does not 
 at all conform to the wishes of the United States, and meets with its 
 disapproval. This, however, only in case the emergency shall arise 
 before I hear from the Department. 
 
 I am well aware that the proper channel of communication is at San- 
 tiago, but inasmuch as the peace conferences have been undertaken 
 here, I should desire full instructions. 
 
 The condition is very serious, and demands prompt action if it be the 
 purpose of the United States to save Peru from being obliterated as 
 an independent power. 
 
 You may be assured that I shall not precipitate matters, but shall 
 endeavor in all ways to have the preliminary negotiations prolonged, 
 that you may have full time for consideration and for transmission of 
 instructions both.to Lima and Santiago. I inclose copy of a confiden- 
 tial letter to General Kilpatrick, and close by repeating that no such 
 opportunity for the just extension of American influence in the interest 
 of humanity has been presented to my knowledge, and that the failure 
 to use it would, in my judgment, relegate the whole of South America 
 over to European influences, which are openly or covertly hostile to 
 the United States, at all events so far as their representatives on this 
 coast are concerned. 
 
 The English steamer leaves Panama every Wednesday, and a tele- 
 gram to that point would reach me in nine days after its delivery. 
 I have, &c, 
 
 S. A. HUELBUT. 
 
 [Ioclosure in No. 2 ] 
 Mr. Hurlbul to General Kilpatrick. 
 
 Legation of the United States, 
 
 Lima, Peru, August 5, 1881. 
 MT Dear Sir: I have assumed charge of this legation on the 3d instant, relieving 
 Mr. C iristianey. I have seen enough of the situation here to assure me that the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 513 
 
 hope of a permanent and honorable peace is not likely to be realized unless the con- 
 querors exercise far more moderation in their demands than now appears probable. No 
 government under ,any form can stand in Peru, which would consent to the cession of 
 territory. It is understood that the Chilian authorities will demand a cession which 
 shall include the whole or a large part of the department of Mochequa, and all to the 
 south of that. As such cession would include the most productive part of the Peru- 
 "vian territory, on which the debt of the republic is largely secured, it is evident that 
 ■ nothing but the last extremity would justify such surrender. 
 
 You are undoubtedly aware of the wishes of our government in the matter. These 
 wishes I understand to be, 1st. That peace on fair and honorable terms should be ar- 
 ranged as speedily as possible. 2d. That the integrity of the Peruvian territory 
 should be maintained. 3d. That full, fair, and reasonable indemnity ought to be made 
 to Chili for the expenses of the war. 
 
 Tue United States are not disposed to recognize on this continent the European 
 notion of addition to territory by conquest, and as we are becoming day by day more 
 interested In the commerce of tho Pacific, it becomes daily of more importance to us 
 that peace should prevail. 
 
 Now it appears to me that a peace dictated in humiliating terms by a conqueror, or 
 extorted under pressure of superior force, necessarily brings with it the 6eeds of per- 
 petual war, and that it would be the most unfortunate thing for the future prosperity 
 of Chili. If that nation proposes to pursue the path of conquest and to depend upon 
 military strength for her future greatness, she will array against herself the public 
 sentiment, not only of America, but of the civilized world. Her highest interest, it 
 seems to me, is to conclude her successful campaign by such terms of peace as may leave 
 Peru an independent nation, and without any other humiliation than that which nec- 
 essarily comes from defeat iu arms. I am perfectly sure that terms of money indemnity 
 can be arranged. I am equally sum that to demand, as condition of peace, the surrender 
 of the south, will be equivalent to denial of peace at all, for the reason given, that no 
 government which concedes this can live. The result will be disorganization in Peru, 
 the formation of guerrilla bands, the destruction of vast amounts of property, and a 
 heavy burden and continual drain upon the resources of Chili, both in money and in 
 men. At present we recognize the government of Garcia Calderon, to bridge over the 
 present chasni. He has in session a very decided majority of the lawfully elected 
 members of Congress. Congress has authorized him to treat with Seiior Godoy on 
 terms of peace. I am afraid that that astute diplomat intends to play fastiand loose. 
 As yet he has not recognized Calderon officially, nor has he consented to exchange 
 credentials and powers with his plenipotentiaries. This of course would be complete 
 recognition, which undoubtedly should precede any conference on matters of substance. 
 
 In other words, I think he intends to recognize only in the event of obtaining his 
 own terms, and if he fail in this, to say " you represent nobody, are not a government, 
 and we decline to confer farther with you." 
 
 My own opinion is, that it is full time for the United States to take a very decided 
 part in the affairs of South America, and I shall communicate all the facts of the situ- 
 ation to £he Secretary of State. 
 
 Your friend and colleague, 
 
 S. A. HURLBUT. 
 
 No. 348. 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 5. J Legation of the United States, 
 
 Lima, Peru, August 17, 1881. (Received September 17.) 
 
 Sie : On Sunday last Seiior G-odoy, Chilian commissioner, had an 
 extended conference with Provisional President Calderon, in which he 
 insisted that the peace conferences should be conducted between him- 
 self and Calderon in his private capacity, and if the results were satis- 
 factory then the formal treaty should be executed by plenipotentiaries 
 already named by Calderon. 
 
 This proposition was firmly refused by Calderon, who insisted on his 
 part that he must be recognized either tacitly by recognition of his 
 plenipotentiaries or openly in an official communication. 
 
 The conference was then adjourned until to-day (Wednesday). 
 S. Ex. 79 33 
 
514 AFFAIKS IN CHILI, PERU, AND BOLIVIA. 
 
 On yesterday, to the surprise of every one, Godoy left on the steamer 
 for Santiago without any further communication. Various reasons are 
 assigned for this sudden departure. He was undoubtedly called home 
 by telegraph, probably for the purpose of more full discussion. 
 
 It is understood that the Santa Maria Government proposes to with- 
 draw the whole Chilian force to Tarapaca ; and as a sudden withdrawal 
 would be likely, in the present state of things, to be followed by mob 
 rule and great violence in Lima, and as Godoy's family are largely in- 
 terested in property in this city, it is thought that he has gone home 
 to press this consideration upon Santa Maria. 
 
 In the event of such withdrawal of Chilian troops, withoitt first per- 
 mitting the Peruvian authorities to supply themselves with arms, the 
 only means of avoiding or controlling the " commune " here, will be the 
 Urban Guard, consisting of foreigners, and they are wretchedly sup- 
 plied with arms. 
 
 Pierola is still issuing proclamations, and is said to have about 5,000 
 men. He failed to assemble a congress of any pretense to regularity, 
 and calls his gathering a national assembly. The members were dic- 
 tated by himself and ought to be unanimous. 
 
 The situation continues to present little hope, unless the United 
 States can and will exercise a salutary pressure upon the belligerents, 
 for which, in due course of time, both parties will be properly grateful. 
 I have, &c, 
 
 S. A. HUELBUT. 
 
 No. 349. 
 
 Mr. ffurlbut to Mr. Blaine. 
 
 ~&o. 6.] Legation op the United States, 
 
 Lima, Peru, August 24, 1881. (Eeceived September 17.) 
 
 Sir : Since my last (No. 5) nothing special has occurred in relation 
 to the questions between Chili and Peru. 
 
 On yesterday I had a long conversation with Mr. Quimper, formerly 
 minister of internal affairs of this country. He is a man of strong in- 
 telligence, thoroughly acquainted with this country, and on intimate 
 terms with Santa Maria ami the leading spirits of Chili. He gave me 
 valuable information on two points : 
 
 First. That if the Calderon government shall succeed in negotiating 
 peace without cession of territory all factions would at once disappear. 
 
 Second. That from his private letters from Santa Maria he finds that 
 the tone of the Chilian demands is lowered, and they talk now of in- 
 demnity in other form than territorial. 
 
 Much of this, I believe, is owing to the idea, current in Chili as well 
 as here, of a probable action by the United States to secure peace ; of 
 which action the people at large have very vague and extravagant no- 
 tions. 
 
 Eumors of all kinds are current, all, however, based upon the same 
 premise, that in some form or other the United States will be able to 
 check the extravagant demands of Chili, and her tendency to dictate 
 rather than discuss terms of settlement. 
 
 I am more than ever convinced that a firm and temperate statement 
 of the views of our government will control the action of Chili. Mean- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 515 
 
 while time, which is an important element for Peru, has been gained, 
 for negotiations cannot now be open before the 1st of October. 
 
 If Chili will meet Pern in discussion upon the terms of peace as equal 
 meets, with equal, and not as an imperious dictator, terms can be ar- 
 ranged. 
 
 The voice of the United States can secure that, and for that voice I 
 think both governments now wait. 
 I have, &c, 
 
 8. A. HUBLBUT. 
 
 No. 350. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 ISTo. 8.] Legation of the United States, 
 
 Lima, Peru, August 27, 1881. (Beceived September 27.) 
 
 Sir: I was favored on the 24th instant by a visit from Admiral 
 Lynch, commanding the Chilian army of occupation. 
 
 In the course of this visit he introduced of his own accord the ques- 
 tion between Chili and Peru, and said to me that there were many 
 rumors afloat as to the attitude of the United States, and that he 
 begged me to tell him frankly what I understood to be the position of 
 ©ur government. He further said that he did not ask this in any diplo- 
 matic sense, but wanted a free statement from me for his own guidance 
 and information. I answered that there was no concealment nor wish 
 to conceal on my part what the sentiments of the United States were, 
 and that I would tell him exactly what we believed to be the rights 
 and duties of the two parties. This I did verbally, and further said to 
 him that I should at once reduce my views to writing to avoid any mis- 
 apprehension. 
 
 Accordingly, on the 25th August, I forwarded to him the written 
 statement inclosed, to which I ask your attention. 
 
 On receipt of this communication the admiral at once proceeded 
 to confer with the British minister, and within three hours from the re- 
 ception of my statement both the British and French ministers visited 
 President Calderon, offered their good offices, and informed him that 
 they fully believed that through Admiral Lynch they could influence 
 Chili to an honorable peace. They also said to him that peace could 
 be arranged without cession of territory. Calderon, to whom I had 
 sent a copy of my statement to Lynch, understood perfectly the se- 
 quence of affairs, and attributes the whole of their sudden and favor- 
 able interest in Peruvian affairs to the effect of the memorandum, 
 especially as both the English and French ministers have uniformly 
 told him heretofore that Chili would not be content except with ces- 
 sion of territory, and have as uniformly advised him to consent to 
 such cession. The change was so abrupt and so favorable that it can 
 hardly be explained on any other basis. 
 
 I am informed that Admiral Lynch sent a copy of the memorandum 
 to his government, and I sent one to General Kilpatrick for his infor- 
 mation and for such action as he might think best to take. 
 
 I am happy to say that the Calderon government express themselves 
 as very much pleased with the memorandum. 
 
 I am greatly obliged to Admiral Lynch for giving me the opportunity 
 
516 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 ■of formal expression of my views, as otherwise it "would have appeared 
 intrusive, and perhaps impertinent, to have offered such a statement. 
 
 I am confident that you will approve the substance of the memo- 
 randum, and I would like General Kilpatrick to be instructed to ex- 
 press similar views in case of opportunity given. 
 
 Mr. Ohristiancy was in the questionable habit of calling together the 
 diplomatic corps and taking counsel on almost all questions, which 
 practically emasculated the United States and deprived them of their 
 proper leadership. The English and French ministers seem somewhat 
 aggrieved, or pretend to be, at action of any kind by me without con- 
 currence, but, as I stated to one of them, the position of the United 
 States is its own, and only to be determined by itself. 
 I have, &c, 
 
 . • S. A. HUELBUT. 
 
 • [Incloaure in No. 8.] 
 
 Mr. Burlbut to Adn.iral Lynch. 
 
 Lima, August 25, 1881. 
 Admiral : In order to prevent any misconstruction as to the conversation I had 
 with you on yesterday as to the condition of affairs between Peru and Chili, I have 
 thought it best to reduce the statement to writiug. 
 
 MEMORANDUM. 
 
 Without any reference to the causes of the war, I understand my government to be 
 of the opinion that all legitimate purposes of war have been accomplished by the over- 
 whelming defeat of the Peruvian armies, the capture or destruction of their navy, and 
 the occupation of the capital and entire sea- coast. 
 
 When organized and respectable resistance has ceased the state of war ought to 
 cease. That commerce and the rights of neutrals have been sufficiently injured ; and 
 that the large interests in Peru which are held by foreigners, many of them Ameri- 
 cans, should not longer be imperiled by the unnecessary prolongation of the state of 
 war. 
 
 For these reasons, and because of the friendly feeling of the United States to both 
 parties, we are of the opinion that peace is the first duty of both nations. 
 
 I wish to state further, that while the United States recognize all the rights which a 
 conqueror gains under the laws of civilized war, they do not approve of war for the 
 purpose of territorial aggrandizement, nor of the violent dismemberment of a nation, 
 except as a last resort and in extreme emergencies. As there never has been any ques- 
 tion of boundaries between Peru and Chili, and therefore no frontiers to regulare, and 
 as Chili has repeatedly, publicly, and officially disclaimed any purpose or design of 
 forcible annexation of territory, we are clearly of opinion that such action now would 
 not comport with the dignity aud public faith of Chili, and would be disastrous to the 
 future tranquillity of both countries by establishing a very serious grievance, which 
 would constantly tend to manifest itself in disturbances. 
 
 The United States concede, as a matter of public law, that Chili has the right (under 
 the code of war) to full indemnity for the expenses of the war ; and that Pern ought 
 to pay such indemnity as may be agreed on by the parties, or be determined by a dis- 
 interested arbiter, in case they cannot agree (if such mode be selected) ; and further, 
 that Chili has the right to demand securities, if time is given for the payment. 
 
 But we are also very clearly of the opinion that Peru ought to have "the opportu- 
 nity, in full and free discussion of the terms of peace, to offer such indemnity as may 
 be satisfactory ; and that it is contrary to the rules which should prevail among en- 
 lightened nations to proceed at once, and as a sine qud non of peace, to transfer terri- 
 tory, undoubtedly Peruvian, to the jurisdiction of Chili, without first demonstrating 
 the inability or unwillingness of Peru to furnish indemnity in some other form. 
 * Such a course on the part of Chili would meet with decided disfavor on the part of 
 the United States. 
 
 It ought to be borne constantly in mind that Chili has won military reputation, and 
 can afford to deal not only justly , but liberally. Peru has lost military reputation, and 
 cannot afford much further humiliation, and that it is never wise to drive even a con 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 517 
 
 qnered people into desperation. Chili has acq aired her high place among the nations by 
 tjie benefits of a settled government ; by due enforcement of the laws ; by the labor and 
 industry of her people ; in short, by the arts of peace. To this she has added, in this 
 war, splendid triumphs by land and sea. The United States would deeply regret if 
 she. should change her course and be carried away on a career of conquest, because the 
 military and aggressive spirit would interfere with her true progress, excite danger- 
 ous animosities, and combine many elements against her. We are, therefore, of the 
 opinion that the act of seizure of Peruvian territory and annexing the same to Chili, 
 whether done by mere superior force or by dictating the same as an imperative condition 
 ofthe cessation of hostilities, in manifest contradiction of previous disclaimers of such 
 purpose by Chili, would justly be regarded, by other nations, as evidence that Chili 
 had entered upon the path of aggression and conquest for the purpose of territorial 
 aggrandizement. The United States desire, above all things, that peace should con- 
 tinue among the South American republics, and that commerce and industry should 
 combine to develop their wonderful resources to their own advantage, and for the 
 benefit of the world, and we are unable to see any good reason why the state of war 
 should much longer continue, to the serious prejudice of such vast interests, nor any 
 good reason why peace, on terms of justice, should not be consummated at an early 
 period, without unnecessary humiliation to one party and with full satisfaction of all 
 the appropriate demands of the other. 
 
 S. A. HURLBUT. 
 
 No. 351. 
 
 Mr. Blaine to Mr. Elmore. 
 
 Department of State, 
 
 Washington, August 27, 1881. 
 Sir : I have had the honor to receive from your hands the letter 
 whereby his excellency the minister of foreign relations of Peru ac- 
 quaints me with your selection by the President of that republic as its 
 minister resident accredited to this government. 
 
 The critical condition of the President of the United States at the 
 present time forbids any immediate arrangement for the formal presen- 
 tation of your credentials, but it will afford me, in the name of this gov- 
 ernment, great pleasure to enter forthwith into full diplomatic relations 
 with you pending the observance of that formality. To this end I beg 
 that you will kindly transmit to me now the office copy of the letter of 
 credence which you bear from the President of Peru, leaving to a later 
 day the presentation of the original to the President. 
 
 Agreeably to your verbal request, I have the pleasure to send you 
 herewith a copy of the note of Serior G-alvez, which you handed to me 
 in our recent'interview on the 26th instant. 
 Accept, sir, &c, 
 
 JAMES G. BLAINE. 
 
 No. 352. 
 
 Mr. Elmore to Mr. Blaine. 
 
 [Translation.] 
 
 Legation of Peru, 
 Washington, August 29, 1881. (Received August 30.) 
 Sir: I have had the honor to receive your excellency's esteemed let- 
 ter of 27th instant, in which, referring to the communication addressed 
 
518 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 to your excellency by the minister of foreign relations of Peru, under 
 date of June 15, 1881, and which I had the pleasure to place in your 
 hands on the 26th of the present month, announcing to your excellency 
 the recall of my predecessor, the charge" d'affaires Sefior Ignacio Garcia, 
 and my appointment as minister resident of Peru to the Government 
 of the United States. Your excellency is so good as to inform me that 
 the critical condition of his excellency the President of the United 
 States at the present time forbids any immediate arrangement for the 
 formal presentation of my credentials; but that it will be agreeable to 
 your excellency, in the name of your government, to enter forthwith into 
 full diplomatic relations with me pending the observance of that for- 
 mality. To this end you ask me to transmit to you now the office copy 
 of my letter of credence from the President of Peru, leaving to a later 
 date the presentation of the original to his excellency the President of 
 the United States. 
 
 I beg to offer to your excellency, Mr. Secretary, my sincere thanks 
 for this proof of the friendly disposition of your excellency's government, 
 and I herewith have the pleasure to inclose the office copy and a trans- 
 lation of my letter of credence. 
 
 I also thank your excellency for the copy of the note of Senor Galvez, 
 which you kindly sent me. 
 
 While continuing my most earnest prayers for the recovery of his 
 excellency President Garfield, I have the honor to renew to your excel- 
 lency the assurances of my highest and most distinguished considera- 
 tion. 
 
 J. F. ELMOKE. 
 
 [Inclosure in Mr. Elmore's note of August 29, 1881. — Translation.] 
 
 President of Peru to President of the United States. 
 
 Francisco Gareia Calderon, Provisional President of the Republic of Peru. 
 
 To His Excellency the President of the Unitei Stales of America : 
 
 Sir : My most earnest and constant desire being to cultivate and draw closer the re- 
 lations of friendship and good harmony which happily exist and are kept up unchange- 
 able between Peru and the United States of America, I hasten to inform your excel- 
 lency that I have chosen Dr. Don Juan Federico Elmore with the object that he may 
 reside in the United States as the minister resident of Peru. 
 
 The intimate knowledge I have of the qualities which distinguished Dr. Don Juan 
 Federico Elmore, and of his zeal for the public service, fully satisfies me aB to the 
 manner in which he will fulfill the high duties intrusted to him. 
 
 I hope that the person of this minister will be agreeable to your excellency, aDd that 
 you will please honor him with a kind reception, giving full faith and credit to what- 
 ever he may say in the name of Peru, and more especially when expressing to your 
 excellency my desire to maintain the good and friendly relations and the cordial in- 
 telligence existing with the Republic of the' United States, for whose prosperity and 
 that of your excellency I offer my most sincere wishes. 
 
 I beg your excellency to accept the expression of my highest consideration. 
 
 Written, signed , sealed, and countersigned by the minister of state in the depart- 
 ment of foreign relations, at Magdalena, Lima, on the 14th day of the mouth of June, 
 in the year 1881. 
 
 [L. 8.] F. GARCIA CALDERON. 
 
 El ministro de relaciones exteriores. 
 
 M. M. GALVEZ. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 519 
 
 No. 353. 
 
 Mr. Blaine to Mr. Elmore. 
 
 Department of State, 
 Washington, August 31, 1881. 
 Sir : I have the honor to acknowledge the receipt of your note of the 
 29th instant, and of the office copy of the letter accrediting you as min- 
 ister resident of Peru in Washington, which accompanied the same. 
 In accordance with the signification of my note of the 27th instant, 
 the Department takes much pleasure in welcoming you as the diplo- 
 matic representative of Peru in the United States, and I trust before 
 long to arrange the ceremony of your presentation to the President. 
 Accept, sir, &c, i 
 
 JAMES G. BLAINE. 
 
 No. 354. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. ll.J Legation of the United States, 
 
 Lima, Peru, September 13, 1881. (Received .) 
 
 Sir: Negotiations are in progress between the Galderou government 
 a,nd the military chiefs of the north and center, Montero and Caceres, 
 looking to a recognition of that government by these parties. I am 
 inclined to think they will be successful ; and in that case the Pi6rola 
 faction will lose two-thirds of its strength and the whole of its prestige. 
 
 I have been very freely consulted in the matter by the agents of both 
 parties, and have no doubt that the attitude assumed by me, as repre- 
 sentative of the United States, in urging union, has had a very impor- 
 tant effect. 
 
 Pierola seems to have lost his head completely, and has issued de- 
 crees of a nature so utterly inhuman as to alienate from him many ele- 
 ments of strength. He has issued orders to all his prefects to arrest 
 and try by summary court-martial all persons who acknowledge, aid, 
 or support the Calderon government, and if found guilty to shoot him 
 at once. He has also imposed very heavy contributions on the prop- 
 erty of all such persons within his lines, and orders his subordinates, 
 in case payment shall not be made in eight days, to sell or to destroy 
 such property. 
 
 These decrees are published in his official paper in Ayacucho, and 
 are in my ixtssession. 
 
 On the 10th day of September instant I received a letter from Seiior 
 Garcia y Garcia, secretary for Pierola, directed to me as minister, in- 
 tended evidently to convince me that "Pierola was in reality the choice 
 of Peru. 
 
 Knowing, as Mr. Garcia did, that the United States had already rec- 
 ognized the Calderon government, it was "a singular procedure, and al- 
 most an impertinence. 
 
 I took occasion to answer him at some length, and inclose a transla- . 
 tion of his letter, and a cOpy of my reply. 
 
 I communicated to Calderon the letter of Garcia and my answer, be- 
 cause I considered it a matter of good faith to do so, and I imagine he 
 will use the documents in his correspondence with Montero and Caceres. 
 
520 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Nothing further will be known, as I suppose, of the intentions of 
 Chili until after the 18th, when the Santa Maria government will com- 
 mence. 
 
 Opinions are divided in Chili whether to withdraw their forces to 
 Tarapaca, or to continue an indefinitely prolonged occupation of Peru. 
 Thelatter, in my judgment, oughtnot to be permitted. Commercial and 
 local interests, in which our people are largely interested, are perishing 
 day by day in this abnormal state of affairs, and a stop ought to be 
 put to it. I have in previous dispatches given my views very fully and 
 only await an answer from the Department. 
 
 We are masters of the situation, if we choose so to be. 
 I am, sir, &c, 
 
 S. A. HURLBUT. 
 
 [Inclosure 1 in Np. 11. — Translation.] 
 
 Senor Garcia to Mr. Hurlbut. 
 
 General Department of State, 
 
 Ayacucho, August 23, 1881. 
 
 Sir : The presence in Peru of an envoy of the great American Republic is always 
 the cause of lively pleasure to my fellow-citizens, whose sentiments of regard and ad- 
 miration for that model nation are the natural result of deep-seated sympathies. 
 
 The national government, as the representative of such spontaneous and delicate 
 feelings, fulfills its official duty, very agreeably in its nature at the present time, in 
 congratulating your excellency on your safe arrival on the soil of our country. 
 
 Unfortunately the first views you have obtained have not shown to you those evi- 
 dences of progress or of tranquillity which the weary traveler on his arrival to the 
 hospitable shores of Peru could once contemplate with pleasure. 
 
 The foreign war, to which we were challenged without notice, has spread ruin and 
 desolation wherever the enemy has planted his feet, and, as if such calamities were 
 not themselves sufficient, a petty faction of unpatriotic Peruvians perpetuate these 
 miseries, making of themselves in the village of Magdalena the docile instruments of 
 the invader, although they are separated from all the country, in order to maintain 
 this appearance of anarchy. 
 
 This truth, which your excellency will have discovered by your own examination of 
 matters passing every day, must have formed in your miud the persuasion that there 
 is no longer any perplexity in determining which is the "executive power" in Peru. 
 
 Guided undoubtedly by this foresight your excellency, in that republican and 
 thoroughly practical spirit which characterizes your countrymen, said "the mission 
 reserved for the eons of Peru is to give or refuse their powerful support, as the basis 
 of that popular force, without which no government can long exist," and afterward, 
 " notwithstanding the people of Peru are the only sovereign judges in this matter." 
 
 Now, then, this sovereign judge in Peru, whose right your excellency declares and 
 recognizes, does not obey or support in the twenty departments of Peru which compose 
 the republic (excepting only the cities on the coast occupied by the Chilian forces) any 
 other government than that of His Excellency the President Senor Colonel Nicolas de 
 Pierola, constitutionally proclaimed as such by the national assembly now in actual 
 session, which representative body was created by election as free as ever took place 
 in any nation. 
 
 The nature of this communication compels me to omit all commentary. I have only 
 desired to present facts, and as these are themselves convincing in their nature, I ask 
 that you will give them the attention which they deserve. 
 
 These facts, also, will be the subject of study on the part of the Secretary of State of 
 the United States, to whose impartial and careful judgment they will have been sub- 
 mitted by the plenipotentiary in Washington of our ally, the Republic of Bolivia, in 
 the absence of the charge' d' affaires, accredited by us in that capital. 
 
 The moral support which the factionists of Magdalena have sought to obtain by 
 cultivating official relations with your excellency, compels me, in the love of peace, to 
 direct to you this letter, which otherwise would seem contrary to diplomatic usages and 
 to the ordinary practice. 
 I avail, &c, 
 
 AURELIO GA. y GARCIA. 
 
 To His Excellency General Stephen A. Horlbut, 
 
 Envoy Extraordinary and Minister Plenipotentiary of the 
 United States of America in Peru. 
 
•AFFAIRS IN CHILI, PERU, AND BOLIVIA. 521 
 
 [Inolosnre 2 in No. 11.] 
 Mr. Hurlbut to Senor Garcia. 
 
 Legation op the United States, 
 
 Lima, Peru, September 12, 1881. 
 
 Sir: I have the honor to acknowledge theTeoeipt of your communication of date 
 of August 23, 1881. 
 
 In reply, permit me to say that it would not be proper for me to enter into any dis- 
 cussion as to the internal affairs of Peru unless in answer to some invitation to do so. 
 
 Inasmuch as you have, by your letter, opened the way, I propose to give you my 
 opinion very frankly, yet with all possible kindness. 
 
 Peru is supposed to be a republic under a constitution, which ought to be the su- 
 preme law. 
 
 The seizure of supreme power by Sefior Pieiola and his assumption of an office not 
 known to the constitution were revolutionary acts, and destructive of proper rever- 
 ence for law. 
 
 The violent and forcible manner in which this revolution was accomplished gave 
 to the undertaking the nature of a crime against liberty. 
 
 The dictatorial office was a simple tyranny, autocratic and despotic in its plans, in 
 its titles, and in its acts. During its existence, the constitution of Peru was destroyed, 
 and the mere will of one man was substituted for the laws and the constitution. 
 
 The people of Peru, suffering under a war of invasion, submitted to this autocracy 
 because they believed it would lead them to victory. Foreign nations recognized it 
 as a government de facto, but did not approve its creation nor its methods. Instead 
 of victory, the dictatorship led to fatal defeats, and the dictator fled from the capital. 
 
 The people of Peru have had no opportunity, since that time, to have any free and 
 fair expression of their wishes and their preferences. 
 
 The "national assembly" had no right, under the constitution, to exist, and its de- 
 crees have no more legal value than the expressed opinion of any equal number of 
 private citizens. Their confirmation, therefore, of the vast and autocratic powers of 
 the late dictator, under his new title of president, gives no greater validity, in law, to 
 his authority or his pretensions. 
 
 It is with very great regret that I am compelled to say to you, that the recent de- 
 crees issued at Ayacucho, as to the persons and property of those who do not recognize . 
 Senor Pierola, are inhuman and barbarous, and of themselves stamp the government 
 that uses such means, as being beyond the pale of law. Such violent edicts are to 
 my mind conclusive proofs that the government with which you are connected de- 
 pends solely upon force and not on public sentiment. 
 
 A strong government, secure in the affections of its people, would never have re- 
 course to such means of cruelty and destruction. 
 
 Spch measures compel all civilized govermeuts to look with disfavor upon the au- 
 thority which make use of them. 
 
 So much I feel it my duty to say to you as to the government presided over by Senor 
 Pierola. 
 
 The government presided over by Seiior Calderon does not assume to possess perfect 
 regularity. It is " provisional," that is to say, a temporary means of carrying on the 
 functions of government, until the nation can act freely and fairly. It is supported by 
 the national Congress, a body known to the constitution, and is an effort toward the 
 re-establishment in this country of regular and constitutional government. 
 
 You are mistaken when you state that they are in sympathy with the Chilians. They 
 are not. They want peace, as the whole country wants it, but they will not sacrifice 
 the national honor nor cede the national territory to obtain it. 
 
 The Chilian authorities are in communication with both parties in Peru, and you 
 yourself have written to Admiral Lynch. Chili wants and demands the territory of 
 Tarapaca, and will recognize any one who will cede it. The Calderon cabinet will 
 not ; it remains to be seen whether the Pierola cabinet will. Meanwhile, under the sys- 
 tem inaugurated at Ayacucho and carried out by the prefects, Peruvians are to-day 
 worse enemies of Peruvians than the Chilians can be, and the efforts of the friends 
 of Peru are paralyzed by your intestine dissensions. 
 
 When the United States ask of Chili why peace cannot be made, the answer is, that 
 there is no government in Pern to make peace with. Is it not better to make an end 
 to this state of things, and for all true sons of Peru to unite on some head of the na- 
 tion, to whom all parties and all factions should yield for the purpose of saving the 
 country from hopeless ruin, of restoring peace, and the orderly and quiet reign of the 
 constitution and the laws ? 
 I have, &c, 
 
 S. A. HURLBUT. 
 
 To Senor Aurelio Garcia y GarcIa, Ayacucho. 
 
522 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 355. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 12.] Legation of the United States, 
 
 Lima, Peru, September 14, 1881. (Received , .) 
 
 Sir : I acknowledge the receipt of your dispatch No. 7, date August 
 4, 1881, in relation to certain alleged claims upon the Government of 
 Peru. As to the Cochet claim, this legation has nothing but vague and 
 sweeping statements, better adapted to creating a commercial enter- 
 prise than to any judicial or quasi-judicial action. I have been favored 
 with two very extraordinary letters and some printed matter, emanating 
 from Mr. J. E. Shipherd, to which I reply by this mail, asking specific 
 statements as to the origin, character, and extent of the claim and the 
 proofs in support of it. In the Landreau case the proofs are sufficient, 
 and the condition in which the Peruvian Government has left the com- 
 plainant forms a just ground for a decided appeal to their sense of jus- 
 tice. I shall follow the direction in your dispatch and interpose on be- 
 half of this and all other American claims if any negotiation takes place 
 between Peru and Chili which involves the loss of territory. I shall 
 take special care that this claim and the attitude of the United States 
 in respect to it be officially made known to the proper authorities of both 
 governments. 1 beg leave to' call your special attention to the extracts 
 (given as inclosure to this) from a letter of Mr. J. B. Shipherd to me, 
 dated 19th August, 1881. I need not say that if any such arrangement 
 was in fact made that it would seem proper that I should be officially 
 informed of it. As yet I have not received from the Department any 
 telegram whatever, nor any instructions, except in your No. 7, which 
 certainly do not touch the very strong points reported to me by Mr. 
 Shipherd. As at present advised I have no faith whatsoever in the 
 il Peruvian Company," not much in Mr. J. E. Shipherd, and am wholly 
 in the dark as to the honesty or value and extent of the Cochet claim. 
 If half of his statement is true, and the United States assumes charge 
 of the claim, we should own Peru by a mortgage which can never be 
 paid. 
 
 I am, &c, 
 
 S. A. HUELBUT. 
 
 [Inclosure in Xo. 12. —Extract from letter of J. R. Shipherd to S. A. Hurlbut, date 19 August, 1881 
 professing to give report of an interview with Secretary Blaine. ] 
 
 But this is not quite all. It is notorious that Cbili, Peru, and certain creditors of 
 Peru are at the very point to apportion amoug themselves, not only the guano, which 
 is absolutely our property, but the only other available asset of Peru — the nitrates — also. 
 If such appropriation were allowed, irreparable mischief might result. I therefore ask 
 a preliminary injunction forbiding all progress in the direction of any such apportion- 
 ment until the Landreau claim and the Cochet title are first properly recognized and 
 provided for, the former paid as res adjudicata, the latter allowed or firmly disproved. 
 
 The secretary instantly responded : " That you will get, and I will make it my first 
 business." On the 2d instant, very soon after, by direction of the secretary, I was ad- 
 vised that the identical instructions suggested had been that day sent you, both by 
 cable and by post, and that I might rely upon the statu quo accordingly. 
 
AFFAIES IN CHILI, PERU, AND BOLIVIA. 523 
 
 No. 356. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 September 14, 1881. (Beceived October 4.) 
 Sir : After I had closed and sealed up my official mail I received 
 from Mr. Quimper the inclosed letter and two copies of his History of 
 Events, to be forwarded to you. Mr. Quimper is one of the strongest 
 intellects and best-known men in Peru, and you may rely upon his 
 statements. I have not time to translate his letter, but Mr. Elmore 
 will do it for you. 
 I have read it hastily, and concur with him in his statement. 
 I can hardly expect you to read his pamphlet, although it is worth 
 reading. 
 
 In great haste, # 
 
 S. A. HTTELBUT. 
 
 [Inclosure in Mr. Hurlburt's letter of September 14, 1881.— Translation.] 
 Mr. Quimper to Mr. Blaine. 
 
 Lima, September 14, 1681. 
 
 Esteemed Sir: Although I have no special claim upon your attention, the fact of 
 my being au American and a citizen of Peru induces me to take up my pen in order to 
 describe the present condition of affairs in Peru, and I trust that you will kindly read 
 what I have to say. 
 
 General Hurlbut's arrival at Lima, with instructions from the American Govern- 
 ment, to endeavor by every means in its power, to effect the conclusion of an honor- 
 able peace between Chili and Pern, has led the nation to hope for a speedy and safe 
 termination of the present unfortunate and anomalous state of things. 
 
 I do not propose to make any inquiries as to the policy which the enlightened gov- 
 ernment of the union proposes to pursue. I simply propose to lay before you a sketch 
 of the present situation of affairs in Peru, together with a brief statement of the causes, 
 which have led to that situation. 
 
 Before the war Chili had no claim whatever upon Peru, inasmuch as the two coun- 
 tries did not border upon each other,* and as Peru had given no cause of complaint to 
 Chili. As long ago as 1872 Peru made a treaty of alliance with Bolivia, but it never 
 took effect, although several of the cases therein provided for arose. In the mean time 
 an unimportant question between Chili and Bolivia led the former to occupy the Bo- 
 livian territory of Antofagasta. Peru then appeared as a mediator. She did so with 
 perfect propriety at that time, since the treaty had become inoperative and the casus 
 foederis had not yet been declared. 
 
 The Peruvian minister at Santiago was busy with the subject of the mediation when 
 Chili suddenly declared war against Peru. 
 
 This declaration of war was made at a time when our minister to Bolivia had, in 
 pursuance of instructions from the Government of Peru, induced that nation to re- 
 peal the "ten-cent law," which was the cause of the war between Chili and Bolivia. 
 
 Peru, being completely defenseless, was taken entirely by surprise, aud was obliged 
 to put forth her utmost efforts to avoid being crushed at once. Her navy was in a 
 wretched condition and greatly inferior to that of Chili, but was put on a war-footing 
 at once. Her army, which consisted of but 3,000 wretchedly armed men, was sent to 
 protect the southern frontier. 
 
 The history of this war and the true cause of our disasters are given in the state 
 memt which I have prepared, and which I inclose herewith, begging you to read it, or 
 to have it read by some person in whom you have confidence. You will thereby be- 
 come convinced that the victories of Chili were easily won without earning any real 
 glory for the Chilian arms. 
 
 . Chili entered the contest fully prepared, while Peru was taken wholly at a disad- 
 vantage, and was consequently obliged to succumb. 
 
 The internal situation of Peru is as follows : The constitutional Government of Peru 
 
 * Correct, although otherwise represented on many maps, 
 
524 1 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 was preparing to collect war material for the purpose of conquering Chili, when Col. 
 Nicolas Pi^rola, of the National Guard, formerly a conspirator, got up his revolution of 
 December 21, 1879, whereby he destroyed all the institutions of the country and pro- 
 claimed himself dictator. The army initiated the movement, and was seconded by the 
 people, who believed in the promise of victory which Pierola made, provided he were 
 only invested with discretionary powers. 
 
 Sad is the history of that administration of one year, during which the so called dic- 
 tator plunged the country into disaster of every kind, thus facilitating the definitive 
 triumph of Chili at Chorfllos and Miraflores. 
 
 The dictatorship, which was proclaimed de facto on the 21st of December, 1879, suc- 
 cumbed de facto on the 15th of January, 1881. 
 
 Pierola then became a fugitive in the interior of Pern, not having saved a single 
 weapon during the disas fcers of January , although he might have done so, and the 
 Chilian authorities in this capital, after they had occupied it, declared their unalter- 
 able determination to make no treaty of peace with him, though they expressed their 
 readiness to doso with the constitutional government, which they considered the. legiti- 
 mate representative of the country. 
 
 In order, therefore, to secure peace, which wa9 earnestly desired by the entire people 
 of Peru, a provincial constitutional government was orgaijized at Lima, with Mr. Gar- 
 cia Calderon as President, who immediately convened the lawful Congress, that itmight 
 adopt suitable measures. 
 
 Congress met, and after ratifying the powers of Mr. Garcia Calderon, authorized 
 him to conclude a peace with Chili. 
 
 In the mean time events have occurred in Peru, both in connection with its internal 
 affairs and its relations with Chili, which have given an irregular aspect to the pres- 
 ent situation. 
 
 The departments of Lima, Callao, Huanaco, Junin, Liberotad, Anacachs, Latnbay- 
 eque, Amazonas, and many provinces belonging to others, have spontaneously recog- 
 nized the government of Garcia Calderon, their principal citizens signing a declaration 
 to that effect. Pie>ola's authorities, however, and the scanty forces still under his com- 
 mand, have brought the greater part of the aforesaid departments once more under the 
 control of the dictator. The consequence is, that Mr. Garcia Calderon's provincial 
 government exercises its authorities in but few of them. 
 
 This fact is not difficult of explanation. The warlike attitude that is still main- 
 tained by Peru towards Chili and the conduct of the Chilian army of occupation tend 
 to sustain the bogus government of Pi6rola. 
 
 Yet it is absolutely certain that as soon as Chili shall have concluded an honorable 
 treaty of peace with Mr. Garcia Calderon, all of Pie>ola's officers, together with the 
 men under their commands, will recognize such treaty and the constitutional govern- 
 ment. 
 - The conduct of the Chilian authorities may be explained as follows : 
 
 The Chilians consented at Lima to the formation of trie provisional government, be- 
 cause that course coincided with the determination which they had announced not 
 to treat with Pie'rola. As soon, however, as they became convinced that the pro- 
 visional government refused to admit that they had conquered Peru they began to op- 
 pose it openly, and to encourage Pierola, with a view to keeping Peru in a state of an- 
 archy, so that they might be able to occupy the Peruvian coast indefinitely, availing 
 themselves meanwhile of the country's resources, on the pretext that there was no 
 actual government with which they could treat. 
 
 Tne Chilian authorities have always pursued a course calculated to prolong a state , 
 of anarchy in Peru. When they thought that Pierola's power was increasing they sent 
 an expedition against him, and when they thought that the. same was the case with the 
 government of Mr. Garcia Calderon they did everything in their power to bring it into 
 discredit and to increase the importance of Pierola. 
 
 Negotiations have recently been set on foot between Mr. Garcia Calderon aiid Mr. 
 Godoy, the Chilian plenipotentiary, the object of which is the explicit recognition of 
 the provisional government by Chili. 
 
 Nevertheless, Mr. Godoy has said that if the provisional government wished to be 
 expressly recognized it must first settle the terms of peace with him. 
 
 There have been four conferences between the Chilian plenipotentiary and Mr. Gar- 
 cia Calderon, and while the former was still saying that he was willing to continue 
 them, he suddenly, without having given any warning, left for Chili. 
 
 This fact is explained, and, I think, correctly, by the knowledge which it is supposed 
 that Mr. Godoy had of the mission intrusted to General Hurlbut. He went to Chili, 
 he said, for the purpose of gettiug precis* instructions for all cases that might arise. 
 
 The fact is, that when Mr. Godoy took his departure he left the negotiations sus- 
 pended, and all prospects of peace at a standstill. 
 
 Such is the present condition of things. We shall be in a state of Buspense until the 
 return of the Chilian plenipotentiary. 
 
 Chili says that there is no government in Peru with which she can treat. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 525 
 
 This is not true. The government of Mr. Garcia Calderon is one which fulfills all 
 •conditions of legitimacy, and its acts, so far as the conclusion of a peace is concerned, 
 would be immediately accepted by the entire republic. 
 
 If it is not recognized by the considerable armed forces which apparently 6bey 
 Pierola, this is because the proper time for such recognition has not yet arrived. 
 
 And it is not well that such recognition should take plaoe* for if it should, the Chilian 
 army would treat those forces as it has jast doue those of Magdalena, viz, disarm and 
 disperse them; and since it would then consider the government of Mr. Garcia Cal- 
 deron as a war government it would not be in the power of the latter to continue nego- 
 tiations. 
 
 Given, then, the conditions of life now possessed by Mr. Garcia Calderon's govern- 
 ment, it cannot and ought not to increase in power. It should make peace while in 
 its present condition, and such a peace, as I have already remarked, would be aocepted 
 by the whole nation. 
 
 Peru will be maiuly indebted for this great benefit, in any event, to the people and 
 the enlightened government of the United States. 
 
 Accept, sir, the assurances of the regard of your faithful and obedient servant, 
 
 J. M. QUIMPER. 
 
 No. 357. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 ~&o. 14.] Legation op the United States, 
 
 Lima, Peru, September 21, 1881. (Received October 17.) 
 
 Sir : Since my last dispatch there has been nothing of any special 
 consequence. I am still without any reply from General Kilpatrick to 
 my communications, which is probably due to the severe illness with 
 which he has been afflicted. 
 
 It appears to be of vitaMmportance that the United States should 
 determine, in advance, the'position which they will hold in relation to 
 the procurement of peace and the settlement of the questions between 
 Peru and Chili. 
 
 I hope by the next steamer, or at all events by that which will arrive 
 on October 1, to have some definite communication from you. 
 
 I believe that Chili will make the cession of Tarapaca a sine qua 
 non of peace, and that on this point they will not admit of discussion, 
 unless under pressure from some other power than Peru. 
 
 If the United States are disposed and ready to insist that Peru shall 
 have the opportunity to offer a money indemnity, and thus escape ces- 
 sion of territory, I am satisfied that such insistance on our part should 
 pass directly from the Secretary of State to the Chilian minister at 
 Washington, and thus come with the highest authority. 
 
 If, however, the Department of State is not willing or prepared to 
 take this step, I cannot see how I can exercise any wholesome influ- 
 ence upon the stronger of the two belligerents. 
 
 The governments both of Chili and Peru have undoubtedly been 
 informed that the United States would view with serious disfavor any 
 request for, or acceptance of, aid from any European government in 
 this matter of American policy. 
 
 I know that Peru fully understands this, and I presume General 
 Kilpatrick has communicated to Chili the views expressed in your 
 instructions to him. 
 
 Being thus imperatively cut off from European aid, and practically 
 limited by the act of the United States to the friendly offices of our 
 government only, it would seem that a duty was, by its own act, im- 
 posed upon the United States, to render effective and positive aid to 
 - the solution of this question. 
 
526 AFFAIRS IN CHILT, PERU, AND BOLIVIA. 
 
 Valmacida, minister of foreign affairs of Chili, said lately in a 
 speech in their Congress, " that Chili must soon determine for herself 
 whether she should return to her ancient boundaries or extend herself 
 over half the continent." 
 
 It is not, in my judgment, for the interest of the United States that 
 there should be any very largely preponderating power in South 
 America, and still less so, if that preponderance shall be acquired, 
 not by regular growth and development, but by violent and military 
 means. 
 
 Yet at this very time there is danger of just such preponderance, 
 obtained by just such means, and the only preventive I can see for this 
 evil is the direct and specific action of the United States. 
 
 There is danger,, even now, that the treaty between Chili and the 
 Argentine Bepublic may fail of ratification, in which case war between 
 these republics appears inevitable, especially as the Argentines look - 
 with great apprehension upon the military and naval development of 
 Chili as a perpetual threat to them. 
 
 The Argentine Republic is now ready for war, and if they believe it 
 to be imminent in the near future,, they will of course prosecute it, 
 while Chili is embarrassed by Pern and Bolivia. 
 
 Thus it is possible that the future peace and good order of South 
 America may hinge upon the determination to be taken by the United 
 States, in reference to the proper conclusion of the Peru-Chilian af- 
 fair. 
 
 It is a noticeable fact that the Chilian Government has asked from 
 their Congress appropriations for an army of 24,000 men, and a full 
 war establishment for their navy, for the coming year, indicating that 
 they propose to continue the state of things which makes such expend- 
 iture necessary. 
 
 This force is a very heavy one for Chili to keep up, and is sufficient 
 for active war operations, and excessive for what remains to be done 
 in Peru. It is. therefore considered by the Argentines to be in the line 
 of a menace to that country. 
 
 In the internal affairs of Peru, there is as yet no special development, 
 except that I believe the dissension from Pierola in the interior, and 
 the tendency to support Calderon, to be on the increase. 
 
 I was in hopes to have received the message of President Santa 
 Maria, in time for this mail, but it has not come, and as I have no com- 
 munications from General Kilpatrick, I am quite in the dark, officially, 
 as to the course of events in Santiago, and even as to the fact whether 
 my colleague there is in harmony with my views. 
 
 Reports are very current that he is not, but you will of course be ad- 
 vised of his actions and his purposes. 
 
 I have, &c. 
 
 S. A. HURLBUT. 
 
 Xo. 358. 
 
 Mr. Hurlbutto Mr. Blaine. 
 
 No. 16.] Legation of the United States, 
 
 Lima, Peru, October 1, 1881. (Received — .) 
 
 Sir : Since the date of my last (No. 15) events have occurred which 
 demand precise statement, and deliberate consideration. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 527 
 
 ,. As you are aware, from the correspondence of my predecessor, the 
 dictatorship of Pi^rola crumbled to pieces after the battles in front of 
 Lima. Pi6rola himself disappeared. There was no government in 
 fact. 
 
 In this emergency, many gentlemen of high standing attempted to 
 reconstruct a constitutional government, and to that end requested of 
 General La Puerta, who was the constitutional Vice-President, over- 
 thrown by the Pi^rola rebellion, that he would resume his lawful power. 
 This he positively refused to do, on account of his inability from ill- 
 health to perform the duties. The situation was peculiarly pressing, be- 
 cause the Chilian militaryauthorities, on occupying the city of Lima,, had 
 imposed a pecuniary contribution of one million of soles, in silver, per 
 month, and in accordance with their somewhat peculiar notions, had 
 apportioned this immense sum on certain private citizens, supposed to 
 be wealthy, in fixed amounts charged to each one, with the penalty 
 that if not paid their property in this city should be destroyed and 
 themselves imprisoned. 
 
 With such an order hanging over them it became necessary to estab- 
 lish some form of government which might represent them. Prado, the 
 constitutional President had run away from Peru before the Pi6rola 
 revolution was made and has never returned. La Puerta succeeded as 
 Vice-President, was overthrown by Pi^rola, and, as I have stated, de- 
 clined to serve. 
 
 Garcia Calderon was chosen to act as provisional President ; was per- 
 mitted to act as such by the Chilian authorities; was assigned a certain 
 neutral zone or space near Magdalena by the Chilian authorities ; was 
 allowed to appoint all his ministers and other officers ; to publish de- 
 crees ; to assemble his Congress ; to keep an armed force of one thou- 
 sand men, and generally to perform the functions of government. Ne- 
 gotiations for peace were opened with him by Godoy, on behalf of and 
 by the authority of Chili. He was allowed to borrow money on the 
 faith of Peru, and to issue about eight millions of paper money, out of 
 which he paid a heavy sum in ransom of the city of Lima. He was 
 recognized by foreign nations as the lawful head of the Government of 
 Peru, and as such received official visits, and publicly and openly ex- 
 ercised all the perogatives of sovereignty. This chain of facts constitute 
 recognition by Chili of the Calderon government, fully as effective as 
 if given in terms, and in official communications. 
 
 Some four weeks since, Admiral Lynch, the Chilian commander-in- 
 chief, disarmed the Peruvian guard in Magdalena ; but in an official 
 communication to Mr. Calderon, as well as in conversation with me, 
 put this act exclusively on a military basis, giving as a reason the ac- 
 tual or probable, desertion of the force, which reason I accept, as a 
 proper military precaution. 
 
 On the 26th September, without any notice, he seized the treasury, 
 and has it now under guard, and stopped, by military order, the pay- 
 ment of all funds of any kind ; appointed Chilian officers to collect 
 certain local revenues accruing to the Calderon authorities,and forbade 
 the Bank of London, Mexico, and South America, in which the Cal- 
 deron funds were deposited, from paying over. 
 
 Having thus seized the means of living, he then, on the 28th Sep- 
 tember, issued the decree and sent the letter, which I forward trans- 
 lated, and inclosed in translation of letter from Mr. Galvez to me, 
 thereby virtually commanding Calderon to cease his functions, and to 
 surrender all his archives, books, and papers. 
 
 Mr. Calderon consulted with me on receipt of this order, and said 
 
528 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Tery firmly that he should not obey it. Inasmuch as it was very prob- 
 able that this act of disobedience would be promptly followed by mil- 
 itary arrest, I suggested to Mr. Oalderon the propriety of making 
 some arrangement by which some legitimate successor could be pro- 
 vided in case he was disabled from acting. To this end the Congress, 
 all of whose members were in Lima, was quietly assembled, and they 
 proceeded to elect Admiral Montero, now in command in the north of 
 Peru, outside the Chilian lines, as Vice-President, thus continuing the 
 constitutional succession. All of these acts are strictly legal, and not 
 only according to the practice of Peru, but to the tenor of the consti- 
 tution. 
 
 I also received from Mr. Galvez, the secretary for foreign affairs, 
 such books, documents, and correspondence as he considered essential, 
 and shall hold them in this legation. 
 
 These precautionary measures having been adopted, Mr. Calderon 
 replied, under date of September 29th, to Admiral Lynch, in a well 
 reasoned and dignified letter, which T also inclose in print, and in Span- 
 ish, as I have not yet found time to translate so long a document. 
 
 This letter has been sent by Admiral Lynch to his government, and 
 since that time no further action has been taken, and I suppose none 
 will be, until he receives instructions from Santiago. 
 
 I send, also in Spanish, the printed copy of Lynch's reply to Calde- 
 ron's letter of the 29th. 
 
 I am not positive as to the real meaning of these extraordinary acts, 
 but am inclined to think that the purpose is to abolish by force all re- 
 spectable authority in Peru, and especially the one which the United 
 States have recognized. 
 
 I find, also, that the British minister here, Sir Spencer St. John, is 
 very frequently closeted with Admiral Lynch, and that their confer- 
 ences are long. 
 
 It is a self-evident proposition that no act of Chili, whether from its 
 civil or military authorities, can in any way operate upon the relations 
 which the United States have maintained, or may choose to maintain 
 with any government in Pern, nor can any military order prevent my 
 treating with Mr. Calderon as representing the sovereignty of Peru. 
 
 I doubt whether even the Chilian doctrine, as expounded by Lynch, 
 of the rights of conquerors will go so far as that. Yet, I see in the future 
 no special limits to their possibilities of dictation. 
 
 There is a very decided tone of arrogance, both in the press of Chili 
 and among their officers, born I think of their singular success in this 
 war, which may easily become offensive. 
 
 The mask which the Chilian Government has worn to cover the real 
 purpose of this war, is now removed, and it is openly avowed that peace 
 will not be permitted, except on condition of cession of territory. 
 
 In looking back upon the whole history of events, prior to hostilities 
 a.nd since, I can have no ddubt, but that the purpose, end, and aim of 
 this war, declared by Chili against Peru and Bolivia, was in the be- 
 ginning and is now the forcible acquisition of the nitrate and guano 
 territory, both of Bolivia and Pern. 
 
 Everything else is made to bend to this purpose, and there is no 
 reality in any pretense of peace on any other terms. 
 
 I shall await the action of the Department, and hope to be informed 
 as early as possible, of such definite resolution as may be taken. 
 I am, sir, your obedient servant, 
 
 S. A. HUKLBUT. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 529 
 
 llnclosure 1 in No. IP. — Translation.] 
 
 Mr. Galvez to Mr. Burlbut. 
 
 Ministry or Foreign Affairs, 
 
 Lima, September 28, 1881. 
 
 Mr. Minister : On this day His Excellency the President has received the note and 
 decree, a copy of which I have the honor to inclose to you. 
 
 The measures already taken by the commander of the army of occupation, in first 
 disarming the guard which my government had at Magdalena, and afterwards in plac- 
 ing guards in the offices, of the minister of hacienda, and in the public treasury, seiz- 
 ing upon all the funds of the government, gave reason to believe that the purpose of 
 the Chilian Government was to cause all government in Peru to disappear, in order to 
 «arry into effect, not only the military occupation of Peru, the territory of the republic, 
 but also the complete domination over the country. To-day, Mr. Minister, this presump- 
 tion is a reality. The commander of the Chilian forces not only takes the direction of 
 public affairs in Peru, but also suppresses all national government, prohibits the exercise 
 of any act of sovereignty, and even demands, as if my government were a dependency 
 of Chili, the surrender of the archives and documents which may be in its possession. 
 
 My government, which owes its existence to the choice of the people of Peru, and 
 has for its rule of conduct respect to the constitution and the laws ; my government 
 which, in the presence of this same army of occupation, has qnietly exercised its 
 functions, finds itself, to-day, compelled to protest in the most solemn manner against 
 this violent act of the Chilian Government which, 1 repeat, suppresses all national gov- 
 ernment, and necessarily prevents all negotiation for peace, and tends directly to abso- 
 lute dominion over the whole republic. 
 
 The internal dissension in Peru will be the pretext under which Chili will insist 
 that there is no government with which to treat, but the undoubted fact is that Chili 
 does not wish that there should be any government in Peru with whom to negotiate, 
 as a step to the destruction of the Peruvian nationality. 
 
 In giving to you, sir, the knowledge of such vastly important events, it is with the 
 hope that you will communicate them to your government, so that it may plainly ap- 
 pear before America, and before the world, that my government in no respect admits 
 the pretensions of Chili, and that at all times, under all circumstances, and in what- 
 soever place it may be found, it represents, and will represent, the supreme authority 
 of Peru, until that nation, sole arbiter of its own purposes, shall decide as may cor- 
 respond to its dignity and its interests. 
 
 I have the honor, Mr. Minister, to subscribe myself, your excellency's most faithful 
 and obedient servant, 
 
 M. M. GALVEZ. 
 
 His Excellency Stephen A. Hurlbut, 
 
 Envoy Extraordinaire and Minister \ 
 
 Plenipotentiary of the United States. 
 
 llnclosure 2 in No. 16.J 
 General Lynch to Senor Calderon. 
 
 Lima, September 28, 1881. 
 Dr. Francisco Garcia Calderon : 
 
 Sir : I have, on this day, issued a decree, by which I order the suspension of the 
 exercise of all authority, which is not derived from these headquarters, except those 
 municipal authorities actually in existence and allowed to continue for the purpose of 
 collecting local taxes. 
 
 I take occasion to send to you, with this, a copy of my decree, the terms of which 
 put an end to the government which, until now, has been in existence by our toler- 
 ation, and presided over by you, and inasmuch as the documents, arohives, and other 
 effects in possession* of the functionaries who have served under your orders, do not 
 belong to them, but are public property, I trust that you will take the necessary 
 measures to prevent any disposition *f them, and will do me the favor of sending to 
 my office, as soon as possible, a list of all of them. 
 
 With sentiments of distinguished consideration and esteem, I subscribe myself, your 
 obedient and faithful servant, 
 
 P. LYNCH. 
 
 S. Ex. 79 34 
 
530 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Copy of decree. 
 
 * Lima, September 28, 1861. 
 
 The General-in-Chief of the Army of the North, Rapnblic of Chili 
 
 Inasmuch as I have this day decreed as follows: 
 
 Hereafter in such part of the territory of Peru, as is now, or may hereafter be occu- 
 pied by the forces of the army under my command, no acts of government will be per- 
 mitted to be done, or exercised by any other functionaries or authorities than those 
 established by these headquarters. The municipal authorities, which at present exist, 
 shall, however, subsist and continue to receive municipal taxation for the purpose of 
 providing for the necessities of local service. 
 
 Let this be recorded and report made. 
 
 In order, therefore, to give full notice to all persons, let this be published by procla- 
 mation, and by notices fixed on the most public places of the city. 
 
 P. LYNCH. 
 
 Xo. 359. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 Xo. 19.] Legation of the United States, 
 
 Lima, Peru, October 5, 1881, 11 p. m. (Received -.) 
 
 Sir : I hare just consummated an agreement made with the Calderon 
 government on the 20th September for the grant to the United States 
 for a naval and coaling station at Ohiinbote. 
 
 The concessions set forth in the protocol are not so strong as I would 
 have liked to obtain, but they are all that the President alone, without 
 the approval of Congress, could give. I look upon it, in the relative po- 
 sition of the two countries, as giving us, should it be accepted by you, 
 a very valuable foothold, which can hereafter be rendered more exclu- 
 sive in matters of jurisdiction. 
 
 There is no question under Peruvian law but that the act of Presi- 
 dent Calderon is as effective in transferring rights as if he were a regu- 
 larly elected President, and looking to the future I can see great possi- 
 bilities in this grant. Chimbote Bay is by far the best on the Pacific 
 coast, and the coal-mines in the interior, to which it is the entrance by 
 way of the railroad under construction, furnish ample supplies, of good 
 quality, of inexhaustible quantity, and at low prices. 
 
 The protocol and the approval of the same by President Calderon 
 are inclosed with this dispatch. I have not time to elaborate this ques- 
 tion by this mail, but will do so by the next. 
 
 I have also, at my own risk, concluded with President Calderon an 
 arrangement by which the unfinished line of railway will be turned 
 over by the government to me, as intermediary or trustee, to transfer 
 the same to an American company, to complete, develope, and operate 
 it. By so doing, it is easy to limit such company in the price to be 
 charged the United States for coal, which ought not in any case exceed 
 $.> per ton, and yet leave a large margin. 
 
 The possibilities for such a company are very large, as the country 
 to be developed by the road is singularly rich in mines of metals and 
 in agriculture. 
 
 This grant will include the completed and incomplete portions of 
 the road, on which the government has already spent over $9,000,000, 
 and the whole work can be completed now for 810,000,000. 
 
 The p rincipal terms will be the payment to the Government of Peru 
 of 81,000,000 in money and the same sum in paid-up stock to clear all 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 531? 
 
 existing incumbrances, for which sums they cede the clear right to con- 
 struct and operate the road for twenty-five years after it is finished, 
 without rent or liability to account. At the end of that period the 
 Peruvian Government has the option to buy the road by paying the 
 principal of its cost to the company or to lease it for twenty-five years 
 more at 25 per cent, of net profits. 
 
 The papers cannot be ready before the next mail, and will contaia 
 other rights and privileges which I cannot now enumerate. 
 
 I have determined, to accept this trust so as to save this very valua- 
 ble grant from any possible chance of being lost to our country. 
 
 In great haste, I am, your obedient servant, 
 
 S. A. HUELBUT. 
 
 [Inolosnre 1 in No. 19.] \ 
 
 PROTOCOL. 
 
 On the twentieth day of the month of September, one thousand eight hundred and 
 eighty-one, the undersigned, Stephen A. Hurlbut, envoy extraordinary and minister 
 pleDipotentiary of the United States of America, and Manuel Maria Galvez, minister 
 of foreign affairs of Peru, met in the office of the American legation for the purpose* 
 of establishing, in the name of their respective governments, an agreement with the 
 object of giving due facilities to the American naval marine on the coast of the 
 Pacific. 
 
 The propriety of such an agreement having been recignized by the undersigned, 
 and they having also taken into consideration the stipulations contained in Article- 
 XIV (fourteenth) of the treaty of friendship, commerce, and navigation, now existing 
 between the two countries, have agreed upon the following : 
 
 First. The Government of Peru concedes to that of the United States of America the- 
 right and power to establish a station for coaling in the port and harbor of Chimbote, 
 and all facilities which may be necessary in order that the ships of war and merchant 
 vessels of the United States may be supplied with that article and may station them- 
 selves in said port. v ; 
 
 Second. The concession above made is not to be considered as exclusive in favor- 
 of the Government of the United States, inasmuch as the Government of Peru re- 
 serves to itself the right to make analogous concessions to other friendly powers who- 
 ruay solicit the same. 
 
 Third. The land which the Government of the United States may acquire for a 
 coaling station, either from the state or from private persons, will remain subject to 
 the general laws which rule in Peru in reference to the ownership of real estate. 
 
 Fourth. The concession to which the first article of this protocol relates is of an in- 
 definite duration, and the government of Peru shall have the power to withdraw the 
 same by first giving to that of the United States not less than one year's notice. 
 
 Iu testimouy of which the undersigned have signed the above protocol in duplicate, 
 and have attached to both copies their respective seals. 
 
 M. M. GALVEZ. [seai.,.1 
 S. A. HURLBUT. [seal.1 
 
 [Inclosure 2 in No. 19.1 
 
 Senor Galvez to Mr. Hurlbul. 
 
 [Translation.] 
 
 Lima, September 23, I88F. 
 It is gratifying to me to announce to your excellency that, under to-day's date, his- 
 excellency, the Provisional President, has been pleased to issue a decree approving 
 the protocol which I had the honor to sign, with your excellency on the 20th instant, 
 for the purpose of giving certain facilities to the American Navy on the Pacific coast,, 
 and that in proper time the necessary orders in the premises will be given by the min- 
 istries of marine and of the treasury in order that the stipulations contained in the 
 said protocol-agreement may have due fulfillment. 
 With sentiments of the most distinguished consideration, I subscribe myself, 
 Your excellency's faithful and obedient servant, 
 
 M. M. GALVEZ. 
 To his excellency Stephen A. Hurlbut, &c. 
 
532 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 360. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 20.] Legation op the United States, 
 
 Lima, Peru, October 13, 1881. (Received November 3.) 
 
 Sin: Since the last mail a very important series of events has been 
 inaugurated. On the 5th and 6th of October the troops and people of 
 Arequipa, in the southern military department of Peru, have proclaimed 
 their adhesion to the Oalderon government, in which they have already 
 been followed by the forces in Puno, and probably in Cuzco. This 
 region has been Pierola's stronghold, and as it is entirely outside of 
 Chilian military authority, it has been caused by nothing but moral 
 force. 
 
 Last night letters were received from Caceres, commanding the mili- 
 tary department of the center, promising to do the same thing, and I 
 feel quite sure that Montero, commanding the northern department, 
 and lately elected Vice-President, has by this time announced a similar 
 policy. It now seems quite certain that a very decided majority, at 
 least, of Peru will support the Oalderon government. I have done a 
 good deal in a quiet way to bring about this result, for I felt it a point 
 of honor to establish on a basis of popular support this government, 
 recognized as such by the United States, and not recognized by Eng- 
 land and France. 
 
 My diplomatic colleagues, especially the British minister, are quite 
 attentive now, and the latter volunteered the statement to me that he 
 was ready to accompany Mr. Oalderon to Arequipa if he went there. 
 
 Pierola is believed to be at lea, a port to the south, and is further 
 believed to be trying to negotiate with the Chilians. 
 
 The declarations from Arequipa, especially if followed up elsewhere, 
 are likely to embarrass the Chilian programme. The logic of their pro- 
 posed suppression of Oalderon was that he hail no following; and when 
 such following is developed, it would seem logical that they should 
 recognize him. 
 
 Unfortunately it will not always do, with these people, to reason on 
 logical bares as to their conduct in the future. 
 
 I believe that the authorities in Santiago are themselves disposed to 
 be reasonable, but that the heart of the people is set upon acquisition 
 -of territory, and that they fear an overthrow from the military and 
 popular element if they yield this point. 
 
 There is a certain degree of awkwardness, and likely to be more, in 
 the position of Oalderon. He, as President of Peru, a nation technically 
 at war with Chili, is within the lines of military occupation, and subject 
 to military law. 
 
 I incline to think that it is competent for the Chilians to order him 
 outside of their lines, and I rather expect it to be done. In .that case, 
 if he should remove to the interior, north or south, it becomes a ques- 
 tion whether I shall retain the legation here or follow the government 
 to its new station. 
 
 There will be nothing that I could do away from Lima that I could 
 not do here, except the impression that personal intercourse with the 
 President and his ministers might make in maintaining the just influ- 
 ence of the United States. 
 
 I take occasion to reiterate my opinion that the opportunity for the 
 United States to settle this war is open. The Argentine Republic has 
 ratified the treaty of boundaries. This gives additional force to the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 533 
 
 rule of arbitration and mutual concession, and the good work com- 
 menced by the United States for the benefit of Chili ought to be com- 
 plemented by similar results for the benefit of Peru. 
 
 I am as yet entirely without advices from you, either on the general 
 subject of Chili-Peru, or as to the course taken, or to be taken, by the 
 government and its representatives in these countries. This is of course 
 attributable in great measure to the long and fatal illness of Presi- 
 dent Garfield, but it is quite important that this state of uncertainty . 
 should not much longer continue. 
 
 The papers for the grant of the Chimbote-Huaraz Eailway are not yet 
 complete. 
 
 Your obedient servant, 
 
 S. A. HUELBUT. 
 
 No. 361. 
 Mr. Hurlbut to Mr. Blaine, 
 
 No. 21.] -Legation of the United States, 
 
 Lima, Peru, October 13, 1881. (Eeceived November 3.) 
 
 Sir: I have just received a very brief letter from General Kilpat- 
 rick, part of which I transcribe. I fear his situation is dangerous, and 
 he evidently thinks so. In the event of his death, at this particular- 
 time, it will be difficult to supply his place as it ought to be supplied. 
 
 It is said here by the Chilian authorities that two Chilian commis- 
 sioners, Altamirano and Novoa, are on their way here. They started 
 to treat with Pi^rola, but the Arequipa affair throws him overboard, and 
 if they treat at all it must be with Calderon. They will hold to the old 
 claim of territorial cession, and as that cannot be admitted, the confer- 
 ences will break up, unless arbitration be urged and accepted. 
 
 There is no earthly reason why this should not be done, and I be- 
 lieve Santa Maria can save himself from his own people by accepting 
 arbitration. 
 
 To suggest this, and to enforce it, we shall need some one at Santiago, 
 and if it should unfortunately happen that General Kilpatrick should 
 die or become disabled the case should be met very promptly. 
 
 It is reported to me at this moment, on good authority, that Montero 
 has declared for Calderon, and I have seen a letter from Caceres, 
 pledginghis support whenever necessary. As Caceres's outlying pickets 
 are close to the Chilian lines, and liable to be engaged at any moment, 
 and Calderon within the lines, it is prudent not to be too open in the 
 matter. 
 
 Your obedient servant, 
 
 S. A. HUELBUT. 
 
 [Inclosure in No. 21.] 
 General Kilpatrick to Mr. Hurlbut. 
 
 Ville del Mar, September 30, 1881. 
 My Dear General : ****** I am very ill, and have been for two months. 
 I should not like to die here, and yet I may. 
 Yours, 
 
 KILPATRICK. 
 
■534 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 362. 
 
 Mr. Hitt to Mr. Elmore. 
 
 Department of State, 
 
 Washington, October 13, 1881. 
 Sir : The Secretary of State, whose attention I called more especially 
 to your communication of the 11th, stating that you. would desire an 
 interview with him in regard to Peruvian affairs, directs me to say to 
 ;you that he will be glad to meet you at any time that you will call at 
 the State Department in reference to the subject of which you spoke. 
 I have the honor, &c, 
 
 EOBBET E, HITT, 
 Assistant Secretary. 
 
 No. 363. 
 
 Mr. Elmore to Mr. Blaine. 
 
 Legation of Peru, 
 Washington-, October 21, 1881. (Eeceived .) 
 
 Sik : As the South Pacific cable is in the hands of the Chilians, the 
 aews from Peru which to-day's Washington and New York papers 
 publish, came by steamer, being twenty-three dayson the way. 
 
 Of course your excellency has the official version of the last act en- 
 acted by Chili in the drama which she has developed with a premedita- 
 tion rarely equaled in history, and which convinces even the incredu- 
 lous of what her intentions were. Not only two years and a half ago, 
 when she declared war on Peru, after taking by force a piece of Boliv- 
 ian territory, rich in nitrate of soda ; not only nine years ago when she 
 jhad her two iron-clads built in England to execute her purposes ; not 
 «only fifteen years ago, ~when the Spanish fleet after burning Chili's 
 principal port — Valparaiso — was defeated and driven away from the 
 iPacific by the Peruvian batteries of Callao, filling Chili with rage and 
 jealousy, but her intentions existed years ago, when she saw the 
 wealth of Peru, consisting in the guano and subsequently the nitrate, 
 which excited her envy and greed. 
 
 I have the honor to inclose herewith the newspaper correspondent's 
 version and press comments upon the Chilian Admiral Lynch's orders 
 suspending the civil authorities in all places in Peru occupied by the 
 Chilian forces, and seizing the Peruvian treasury and bank of issue 
 (nothing is said purposely about the authority of the provisional gov- 
 «rnment). Allow me only to call your attention to the fact that as the 
 Panama paper (from which most American papers copy) is in the inter- 
 est of Chili, the remarks are mostly in justification of the Chilian acts, 
 and the innuendoes are directed against Peru and those who have done 
 .-something in support of her and of justice (inclosures JSTos. 1, 2, 3, and 
 -4). Of course it is evident that any introduction of bank-notes for the 
 provisional government, or any alleged facts in connection with it, had 
 absolutely nothing to do with the outrage committed by Admiral 
 Lynch. 
 
 The explanation of it, Mr. Secretary, is simply this : Chili meant 
 from the beginning, 1st, to take the territory containing Peru's wealth; 
 I'd, to weaken the country in such a way that Peru should be in- 
 
, AFFAIRS IN CHILI, PERU, AND BOLIVIA. 535 
 
 capable of resisting her now or in a long future. At the same time 
 Chili counted upon two factors which she supposed in her favor: 1st, 
 that all foreign nations were indifferent as to the fate of Peru ; 2d, 
 that no foreign nation would take interest in the reconstruction of or- 
 der and of a constitutional government in Peru. But she counted also 
 upon another factor to help her, namely, the continuance of internal 
 dissention in Peru, which Chili, of course from years back, has always 
 favored. r Chili was right, unfortunately, in this last supposition. In 
 regard to the two first mentioned, Chili made a grievous mistake, and 
 her surprise on discovering it is the cause of her present rage, as shown 
 by the first act of Chili's new President, Senor Santa Maria, the center 
 of that group of Chilian politicians and financiers who resolved upon 
 the plunder of her neighbors (as Chili wants not the territory itself, 
 but the inexhaustible wealth in it). 
 
 Chili's mistake and surprise were caused by the friendly acts of the 
 United States in trying to bring about a peace equally honorable for 
 both belligerents, without detriment to the rights of Chili as the victor. 
 
 1st. Chili never believed that the United States would recognize the 
 Calderon government (thinking that the United States would follow 
 the lead of the European powers). 
 
 2d. Chili was disappointed when she saw that the recognition of the 
 Calderon government by the United States was just, because that gov- 
 ernment meant to establish constitution'al order in Peru, and to nego- 
 tiate an honorable peace, which would restore to Peru her position 
 among nations. 
 
 3d. Chili was displeased when she beheld that the United States had 
 appointed as minister in Lima, a gentleman, General Hurlbut, whose 
 talents, decision of character, and spirit of justice and fair play, were so 
 distinct from Chili's purposes and practices. 
 
 4th. Chili was more displeased when she saw the words of concilia- 
 tion and justice pronounced by the new United States minister in Peru, 
 upon his reception by President Garcia Calderon ; they showed a friendly 
 disposition on the part of the United States towards Peru. 
 
 5th. Finally, Chili was terribly excited when she, for the first time, 
 perceived that the United States Government would not see with favor 
 the dismemberment of Peru, if Peru has otherwise a means of satisfying 
 the just claims of her victorious enemy. 
 
 But, Mr. Secretary, if the United States, for all the historical reasons 
 of the past, and of her inevitable destiny, has not the right to raise her 
 voice on the affairs of this continent, then .history would have to be re- 
 written, and no nation would have tl^e right to take interest in the for- 
 tunes of sister nations. 
 
 The policy of the United States on this continent is well known, and 
 your excellency's government recognized the government of Senor Garcia 
 Calderon, because it was a constitutionally organized government (Mr. 
 Pi^rola, being, by the tendencies of his life, able to be only a despotic 
 ruler), and because the Calderon government was and is the only 
 means of making constitutional government permanent in Peru. 
 
 The other reason the United States had for recognizing that provis- 
 ional government was, because it was recognized by the Chilians who 
 were ready to negotiate a peace with it. But, as the Calderon govern- 
 ment was forbidden by a law of Congress to cede any Peruvian terri- 
 tory, as the United States recognized it, and as the United States pre- 
 ferred that, if it were possible, peace should be made without loss of 
 territory to Peru, Chili it seems, decided that the existence of the gov- 
 
536 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 eminent of Senor Garcia Calderon was incompatible with the execution 
 of her plans and purposes. 
 
 This, Mr. Secretary, is the explanation of the news just arrived by 
 steamer from Peru, which can only have surprised those who never un- 
 derstood the origin of the war and the real purposes of Chili. 
 
 At the same time, allow me to call your excellency's attention to the 
 fact that Admiral Lynch's order does not make mention of the Calde- 
 ron government as being suppressed, which was easy enough to do, as 
 the material means at its disposal were so small. On this account no 
 news has come by cable during the last twenty -three days of any such 
 event. . 
 
 Far from that, on the 14th of October, I received a cable message from 
 Senor Eosas, the new Peruvian minister in France, dated Paris, 13th 
 October, communicating a cable message from Senor Galvez, the minis- 
 ter of foreign relations of Peru (dated, no doubt, Lima, 12th October, 
 as the cable is working), announcing the significant fact of the army of 
 the south, Arequipa and Puno having recognized the provisional gov- 
 ernment of Senor Garcia Calderon. 
 
 Thus, the Calderon government was not only gaining popularity; 
 not only had it the moral support of the United States, and other 
 nations who had recognized it ; not only was its moral strength increased 
 by the perfectly correct and just appreciation of the iniquity of Senor 
 Pi^rola's government, but it was gaining material strength, being recog- 
 nized by the center of political power in Peru, Arequipa, and Puno, 
 and by the very army who previously obeyed Pierola, because it was 
 made to believe by Pi6rola that a continuation of the war with Chili 
 was possible. For these very reasons, however, the Calderon government 
 did not suit the purposes of Chili ; it was becoming too strong and too 
 respectable ; and the consequence was that Peru was on the point of 
 being reconstructed. Chili desires not only a dismembered Peru, but 
 a prostrate and powerless neighbor. 
 
 The United States, by their action, have, I am proud and happy to 
 say it, and the Peruvian people highly appreciate it, contributed more 
 than any other nation, or any other circumstance, to give strength and 
 respectability to the government of Senor Garcia Calderon. That gov- 
 ernment, as far as I know, and as regards its personnel, has not ceased 
 to exist. It is the only constitutionally organized government Peru has 
 proclaimed by the law of the constitutionally elected Congress of Peru. 
 
 Peru must have a constitutional government, and must have peace. 
 Will the United States, only because ChOi wishes to make both impossi- 
 ble in Peru, abandon Peru at tfaife her most critical moment ? A word 
 from the United States would stop all lawless action on the part of 
 Chili, and consummate the union of the Peruvian people, which had so 
 successfully and so happily been inaugurated under the auspices of the 
 United States. 
 
 In conclusion, as the representative of the legal government which 
 your excellency's government recognizes, and of the orderly and re- 
 spectable part of the people of the Bepublic of Peru (the oldest and 
 most interesting country in South America, a nation of historical re- 
 nown, and worthy of better fortune), I herewith repeat and confirm the 
 sentiments I expressed in my address to the President of the United 
 States, when I had the honor of presenting to him my letter of cre- 
 dence, as regards the influence which, in the opinion of Peru and my 
 government, the United States should exercise on this continent, not 
 only indirectly but directly — for the good of the South American states 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 537 
 
 and in the interest of the United States, and of free institutions and 
 civilization in general. 
 
 When I made that address I hffl already received the special in- 
 structions to which I referred in my letter to your excellency of the 
 11th instant. 
 
 On account of my hope that the ministers of the United States in 
 Peru and Chili might succeed in bringing the belligerents together to 
 negotiate in good faith an honorable peace (not having also had the 
 opportunity of conferring 'with your excellency), I have not communi- 
 cated to your excellency these instructions. 
 
 Now, however, in view of the selfish, unjust, and heartless policy of 
 the Chilian Government, of which she no longer makes a secret, I 
 solemnly execute the instructions I have received from the President 
 of Peru, and hereby formally request the government of the United 
 States to intervene between Chili and Peru in order to make a treaty 
 of peace between the two republics possible. In view of the extraor- 
 dinary and exorbitant pretensions of Chili (demanding among other 
 things, not only a war indemnity, but the cession of a part of the Peru- 
 vian territory, and the occupation of another part), and in view of the 
 barbarous manner in which Chili conducted the war; and of her iniqui- 
 tous proceedings and unceasing spoliations since, my government has 
 earnestly arrived at the conclusion that a treaty of peace cannot be 
 signed without the intervention of the United States of America, 
 
 I beg your excellency's government to please decide upon the meas- 
 ures most conducive to the end proposed, if, in the judgment of your 
 excellency's government, it is convenient that the United States should 
 bring Chili to a sense, of justice, helping my country to reorganize 
 herself, much improved by the sad lessons of adversity, and eternally 
 grateful to her generous and powerful sisteir, the great, true, and model 
 republic. 
 
 I have the honor to inclose some further items of news from Pern, 
 (Nos. 6, 7, 8, and 9), and to renew to your excellency the assurances of 
 my highest and most distinguished consideration. 
 
 J. P. BLMOEE. 
 
 [The inclosures referred to are numerous extracts from newspapers 
 printed in the United States. They are not considered of sufficient im- 
 portance to submit.] 
 
 No. 364. 
 Mr. Hiirlbut to Mr. Blaine. 
 
 No. 23.] Legation op the United States, 
 
 Lima, Peru, October 26, 1881. (Received 
 
 Sir : The Department of State will no doubt have been advised of 
 the excitement in Chili, over the publication by the newspapers in that 
 country of a copy of a "memoradum" addressed by me to Admiral 
 Lynch, a document which I forwarded to the Department as inclosure 
 to my dispatch No. 8, of the 27th August, 1881. 
 
 I do not know by whom the publication of this note was effected. It 
 appeared first in the Chilian newspapers, and I presume was given to 
 the press by the Chilian Government as a basis for the note of Mr. 
 Valmaseda to Mr. Kilpatrick. It seems somewhat singular that 
 although General Kilpatrick has been unable to write to me during all 
 
538 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 this time, anything more than a brief note as to his health, that he 
 should yet have been able to answer the communication of Mr. Val- 
 maseda on the very day of its d*te, and at such very considerable 
 length. 
 
 It is not for me to criticise the act of my colleague at Santiago. I 
 sent him a copy of the "memorandum" at the same time that I. sent 
 it to the Department. 
 
 I have not received from him any copy of the correspondence be- 
 tween him and the Chilian authorities, and my only knowledge of it 
 comes from the publications in Chili and in this city. 
 
 If, however, these are to be accepted as correct, there would seem to 
 be a radical difference between General Kilpatrick and myself, which 
 demands the attention of the Department. Neither Mr. Kilpatrick nor 
 the Chilian authorities have as yet attacked by argument the principles 
 of international law laid down in the memorandum ; nor do I believe 
 that they can be successfully attacked. 
 
 They have chosen to affirm that these utterances contain a threat of 
 active intervention on the part of the United States, which is nowhere 
 asserted in the document. The question of what the United States niay 
 think proper to do, is one which can only be resolved by the President, 
 and communicated when so resolved through the Department, and un- 
 til so informed, it is not competent for General Kilpatrick or for me to 
 limit the United States in any respect. I affirm that, according to my 
 best judgment, the principles laid down in the "Lynch memorandum,'' 
 are those which do in fact control, and in right ought to control the 
 conduct of the United States ; that they are ana ought to be the 
 bases of international law on this continent, and that Chili and Peru 
 and all other powers in America, ought to accept and be guided by 
 them. All this, of course, although clearly my opinion and belief, is 
 subject to the revision and final determination of the State Department, 
 and whatever may be the decision, it will be obeyed and faithfully car- 
 ried out by me, so long as I have the honor to represent the United 
 States in my present capacity. It, however, becomes my duty to rep- , 
 resent to the Department the results which, in my judgment, may be 
 expected from their decision. 
 
 Upon reaching the Isthmus, on my way down, I encountered in all 
 the newspapers of the South American Republics, an expectation and 
 desire that the United States, as natural head of the republican forms 
 of this continent, should, in some way or other, put an end to this war 
 between Chili and Peru. 
 
 I found, on arriving here, the same sentiment and belief, among the 
 Chilians in the form of apprehension, among the Peruvians in that of 
 hope. I found the English and French legations apprehending the same 
 thing, but diligently at work to put all obstacles in the way of its fulfill- 
 ment. I have been careful never to speak or write of any action what- 
 ever, on the part of the United States, but have never hesitated on 
 proper occasion, to state what I believed, and now believe to be our 
 opinions on the questions involved, and have never gone beyond what 
 is set forth in the "Lynch memorandum." 
 
 Inasmuch as the United States had recognized Garcia Calderon as 
 the President of Peru, I have done all I could properly do to unite 
 Peru under his authority, and have succeeded in so doing, despite of 
 the influences exercised against such a result by the other legations, 
 notably those of England and France. 
 
 To-day no other government has any respectable foothold in Peru, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 539 
 
 and Pi^rola must either run away or fall a victim to mutiny in his own 
 forces. 
 
 This dominant influence of the United States in Peru is now a fact, 
 and has been acquired, as I have stated. 
 
 It is, in my judgment eminently worth while for the United States to keep 
 this position, not only here but in all America, and their retention of 
 this position depends upon their own action. 
 
 If the Government of the United States choose to say the word, this 
 wretched state of things will cease. If they choose to say that the 
 time for peace has arrived, peace will be made. 
 
 If they choose to say that the two countries should submit the ques- 
 tion of indemnity to arbitration in case they cannot agree, such sub- 
 mission will be had, and the matter end honorably to both countries. 
 
 Unless the United States do take such positions, indefinite military 
 occupation of Peru, or so much as the Chilian forces can cover, will be 
 the result; anarchy, violence, plundering by petty war parties will domi- 
 nate over the country, and the ruin of all foreign investments in the 
 country will follow. If the United States, after denying to these people 
 any application for aid from any European state, shall themselves re- 
 fuse any help in their desperate situation, it would seem to be almost 
 a breach of national faith. I myself, am a profound believer in the 
 right and duty of the United States to control the political questions 
 of this- continent, to the exclusion of any and all European dictation. 
 This belief I understand to be held also by the American people, and 
 to have been asserted by Congress. This I also understand to be the 
 doctrine of the administration which sent to me this place. 
 
 The opportunity to put the doctrine into practice is now before us, 
 and as the communication is so slow I state here the probable course 
 of affairs, and ask for instructions. 
 
 The two Chilian plenipotentiaries, Altamirano and Novoa, have ar- 
 rived to-day. They are said to have full powers. They will either recog- 
 nize the Oalderon government or fail to find any with which they can 
 treat. If they do not recognize that government 1 shall consider such 
 fact evidence that they do not want peace. If they do, and peace nego- 
 tiations commence, I believe they will drop the word "cession" and 
 substitute "pledge;" that they will demand an enormous indemnity, 
 and to hold the southern provinces as pledge and security for the pay- 
 ment. 
 
 Peru will offer thirty to forty millions as indemnity. This will be re- 
 fused, and then affairs are at a stand. Peru will then offer to submit 
 the question of amount to arbitration. This offer, I think, will be re- 
 fused. 
 
 It seems to me that the opportunity for the United States will be to 
 insist early in the negotiation, and forcibly, that the principle of arbi- 
 tration shall be accepted and acted on. 
 
 The mode of such insistance must, of course, be determined by the 
 Department, but I feel sure that it ought to be done, and done at an 
 early stage, and before Chili commits herself by a refusal to entertain 
 arbitration. I have no doubt of the result if so done. Chili cannot af- 
 ford to refuse it. Peru asks nothing but an impartial arbiter, and the 
 result will place the United States where they ought to be, as the ac- 
 knowledged head of the republican system of America. 
 
 Yet very prompt action is necessary for this result, of which I hope 
 to be promptly advised by telegraph or otherwise. 
 
 I have, &c, 
 
 S. A. HUELBUT. 
 
540 AFFAIRS m CHILI, PERU, AND BOLIVIA 
 
 [Inclosure in No. 23. —Translation. ] 
 
 Mr. Balmaceda to Mr. Kilpatrick. 
 
 Ministry of Foreign Affairs. 
 Santiago, the 8th of October, 1H31. 
 
 Sir : The newspapers of Valparaiso and of this city have published the memorandum 
 addressed on the 24th of August, by Mr. S. A. Hurlbut, United States minister in Lima, 
 to the commander-in-chief of our army of occupation in that city, Rear-Admiral Lynch. 
 
 Mr. Hurlbut's letter, accompanying the memorandum referred to, has not, however, 
 been published ; in it the said gentleman began by saying to Admiral Lynch that in 
 the conversation alluded to in the memorandum diplomatic affairs were not discussed 
 (no se tratabade asuntos diplomaticos). 
 
 My government has thought it proper to draw attention to the irregularity of this 
 conduct, disregarding the essential part of it, because they feel certain that the senti- 
 ments expressed in the memorandum are not the expressions of the wise, noble, and 
 faithful policy observed by the United States with regard to the belligerents of the 
 Pacific. 
 
 The strange publicity given to a document of small confidential importance, if we 
 take into account its forms and the circumstances under which it was edited, compels 
 me to address myself to your excellency, in order to obtain an answer that may estab- 
 lish officially the truth and sincerity of the relations so worthily cultivated by our re- 
 spective governments. 
 
 Mr. Hurlbut's address in presenting his credentials to the government of Senor 
 Garcia Calderon, now at an end ; the memorandum addressed to Mr. Lynch, in which 
 " diplomatic affairs were not discussed;" his well-known letter against Pierola, before 
 whom Mr. Christiancy had been credited, and whose envoys met in conference in 
 Arica, in the presence and with the full countenance of the representative of the 
 United States ; all these facts might produce deplorable disturbances and encourage 
 onr enemies uselessly, stimulating fruitless resistance without finally affecting the re- 
 sult of a war that in any event may become sanguinary. 
 
 Chili was provoked to war ; the property of her citizens was confiscated, and they 
 themselves inhumanly expelled from their homes; her industries were abandoned by 
 thousands who elected to vindicate their rights and honor ; enormous sums of money 
 were expended in the maintenance of the war ; the priceless blood of her sons was 
 poured out; the enemy was routed and reduced to a radical and absolute iinpotency. 
 We shall carry on the war so far as may be necessary to compel the vanquished to 
 conclude peace, and in the adjustment of peace, practicing our rights, we shall act so far 
 as may be necessary to obtain due reparation for the evils produced by this war, for 
 the future security of peace, and for the permanent stability of the republic. 
 
 We shall exercise fully the primitive right which authorizes us amply to guarantee 
 our own existence, a right confirmed at all times by the practice of European powers 
 and also by the United States, on this continent. 
 
 I feel confident that our rights as belligerents will be in the future as much respected 
 by the United States as they have been to this very moment ; the conduct of their rep- 
 resentatives in Arica and during all the course of the war ; their friendly participation 
 in the treaty resolving the boundary eontroversies with the Argentine Republic ; their 
 worthy international traditions, and the respect which as a powerful nation they owe 
 specially to independent and sovereign states ; all these circumstances give me a per- 
 fect security that the United States will continue to be the officious, may it he said, 
 but always the neutral friends in this protracted struggle sustained by us against our 
 .epemies in the Pacific. 
 
 Inasmuch as motives strange to my government will have created an uncertain 
 state of things in the public mind, which may be misunderstood and occasion there- 
 fore disagreeable emergencies in the difficult circumstances which the state of war 
 creates to the belligerents, I hope to receive from your excellency the assurances which 
 in accordance with your instructions you may give to my government regarding the 
 reciprocal good understanding which exists, and that will be maintained in an invar- 
 iable manner, between the republics we have the honor to represent. 
 I have, &c, 
 
 J. M. BALMACEDA. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 541 
 
 No. 365. 
 
 Mr. Elmore to Mr. Blaine. 
 
 Legation of Peru, 
 Washington, October 27, 1881. (Eeceived .) 
 
 Sir: As your excellency is aware from our interview this morning, I 
 only received to-day my government's dispatches regarding the order 
 of Admiral Lynch of 28th September, which attempts to suppress, by a 
 stroke of the pen, the government of Senor Galderon in Peru. 
 
 I have the honor to inclose herewith a copy of the circular letter on 
 the subject addressed by Senor Galvez, minister of foreign relations for 
 Peru, to the representatives of foreign powers in Peru (inclosure No. 
 1) ; also a printed copy of Senor Calderon's lengthy reply to Admiral 
 Lynch (No. 2) ; also a correspondence and comments of an American 
 paper (No. 3). 
 
 Your excellency will observe that the government of Senor Calderon 
 protests against the arbitrary act of the Chilian admiral, and that the 
 President and his cabinet have the firm decision of continuing in their 
 posts, and exercising their functions at all times, under all circum- 
 stances, and at any place' were they may be. . 
 
 Your excellency will notice the solid and dignified arguments of Seiior 
 Calderon, proving in how many ways the Chilian Government and offi- 
 cials have recognized his government, showing that it has been recog- 
 nized by various foreign nations, and that it was increasing daily in 
 popularity. To this I repeat what I have previously stated in my let- 
 ter of 21st instant, that by a cable from Lima of 12th October the army 
 of the south in Arequipa and Puno also have recognized it; and now I 
 add that in an extraordinary session of the Peruvian Congress,held in 
 Lima on 29th September, Admiral Montero (who has been command- 
 ing some force and influence in the north of Peru) has been elected 
 Vice-President of Peru), to act in conjunction with Seiior Calderon. 
 
 I am desirous to be able to send to your excellency a translation of 
 Senor Calderon's admirable letter, and hope to do so shortly. My long 
 letter of 21st October to your excellency, which I confirm, makes it un- 
 necessary for me to trouble your excellency with another long letter at 
 present. 
 
 It is proved that it is because Senor Calderon cannot and will not ac- 
 cede to Chili's imperious demand of a cession of Peruvian territory, as 
 a preliminary condition to commencing negotiations of peace, that Chili 
 pretends to destroy his government, which yotir excellency's govern- 
 ment recognized for such noble reasons. 
 
 I anxiously await your excellency's judgment upon this iniquitous 
 proceeding of Chili, which tends to make all government impossible in 
 Peru, and renders also the conclusion of a peace impossible; and I 
 await with equal anxiety the reply of your excellency's government to 
 my petition of the intervention of the United States, which will unite 
 the Peruvian people, reconstruct constitutional government in Peru, 
 and re-establish peace in South America. 
 
 I hope also to be able to explain to your excellency, verbally, other 
 circumstances in connection with the state of affairs in South America 
 which make the present situation most exceptional and the action of 
 the United States most opportune. 
 
 I have the honor to renew to your excellency the assurances of my 
 highest and most distinguished consideration. 
 
 J. F. BLMOEE. 
 
542 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosnre in Mr. Elmore's note of October 27, 1881. Translation.] 
 
 President Garcia Calderon's reply to the letter of Admiral Lynch, Chilian commander-in- 
 chief, communicating his order suspending the exercise of all civil authorities not appointed- 
 by the Chilian headquarters. 
 
 Lima, September 29, 1831. 
 
 Sefior Patricio Lynch : Yesterday I received your letter of the same date, in which 
 you inform me that in pursuance of the proclamation, of which you have sent me a 
 copy, yon have put an end to my government, and asking me for a statement of tbe 
 papers, archives, and other effects which the officials who have served under my orders 
 may hold. 
 
 If I was not in possession of other facts besides your letter, I would have but few 
 words to say in reply to it, because neither the letter nor the proclamation express the 
 real motive of your order. 
 
 But the facts which have developed since the disarmament of my troops at Magda- 
 lena ; the conferences held toward the settle meDt of peace between Peru and Chili ; the 
 taking possession of the treasury offices under my administration, and the publications, 
 both in the Chilian press and the Lima newspaper La Situacion, explain the motives 
 of your proceedings, and make perfectly clear that as soon as the Government of Chili 
 became convinced that I am not and have never been disposed to sacrifice the territory 
 of Peru in a treaty of peace it began to take measures hostile to me, which have been 
 carried on to the extreme of declaring my government abolished. 
 
 So explained, your proclamation has not the character of a simple military measure 
 within the action of martial law, and on this account my reply cannot be short. It is. 
 necessary that the serious and momentous measure contained in the proclamation 
 should be analyzed in detail, and for this reason I must occupy your attention for some 
 time. 
 
 Although according to the rules of law and custom (which you have hitherto followed 
 yourself, addressing always yonr letters to my minister of foreign relations), I should 
 never communicate officially with anybody but through the various departments, F 
 wish on this occasion to depart from those rules and myself reply to your letter and 
 deal with the question at issue. 
 
 In February of the present year a respectable majority of this capital and Callao, 
 considering that the government of Selior Pierola had come to an end for reasons of 
 domestic politics, to which it is not necessary to refer here, decided to form a new 
 government, which would satisfy the exigencies of the situation, and appointed me 
 the Provisional President of Peru. 
 
 Being in possession of this authority, strengthened by the will of the people, I com- 
 menced to exercise my functions, and the most important ones which I executed at 
 the inauguration of my government were the following two : The negotiations for the 
 riisoccupation by the Chilian forces of the zone within which I was to exercise my 
 functions, and the payment of the war tax levied upon Lima and Callao. 
 
 If, on exercising those acts, I had thought that my powers did not derive from the 
 people who have intrusted them to me, but from the Chilian authorities, I would cer- 
 tainly not have agreed to anything nor made engagements of any kind, because I 
 would have had no power to enter into contracts. 
 
 But the Chilian plenipotentiaries and the commander-in-chief of the army of occu- 
 pation treated with me, recognising the fullness of my powers emanating from the 
 popular will, and for that reason I concluded agreements with them. 
 
 And it is in truth impossible to think otherwise, if we take into consideration that, 
 in order to realize the payment of the said war tax, I practiced two of the most im- 
 portant acts of national sovereignty, which are the issue of a loan contracted mostly 
 with foreigners resident in the country and the issue of treasury notes, which are obli- 
 gations which the Peruvian nation are bound to pay. 
 
 Tbe Chilian authorities, by the fact of acceptiug as a part paymeut of the war tax 
 the funds proceeding from the loan, and the not less important fact of receiving treas- 
 ury notes, recognize my authority and my legitimate right to execute those two opera- 
 tions. The Peruvian Government alone, can bind Peru, and only from the Peruvian 
 Government can the Chilian authorities receive titles of Peruvian credit in payment ; 
 because I, regarded as a simple citizen of this country, cannot issue documents of credit 
 which shall impose obligations upon the republic. 
 
 If this were not so one of two consequences would result ; either the Chilian au- 
 thorities allowed themselves to he deceived by me, by receiving in payment for the 
 tax a paper issued privately and without official value, or, in the belief that I was not 
 the chief executive, gave their consent in order that I might deceive those foreign 
 residents, borrowing money from them and issuing notes without legal value. 
 
 The former of these suppositions would do very little honor to the intelligence of 
 Messieurs Vergara and Altimarano, and the latter would constitute them accomplices 
 in a f radulent emission, made by a person without authority to do so. Neither of the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. • 543 
 
 suppositions can be admitted, and bence it must be acknowledged tbat tbe Chilians 
 recognized me from the beginning as the legitimate chief executive of Peru. 
 
 This recognition has become afterwards (if it were possible) more explicit, because 
 Sefior Joaquin Godoy, Chilian plenipotentiary, held conferences with me in regard to 
 peace, which were initiated by him ; because you have, after Senor Godoy's departure, 
 informed me, through distinguished officials resident in this capital, that you had asked 
 of your government full powers to treat with me, and because in the offloial communica- 
 tion addressed by yon to Minister Galvez, after the disarmament of my troops at Magda- 
 lena, stated that the act was of a purely military nature, did not imply a change in 
 the relations existing with me, and was not intended to interrupt the pending negotia- 
 tions. It is then evident from the foregoing that I havi» been regarded by the Chilian 
 authorities as a person fully authorized to conclude a treaty of peace, and as I cannot 
 execute such an act in the capacity of a private citizen of Peru, it is necessary to ac- 
 knowledge that the Chilian Govemmeut has recognized me as the chief of the legiti- 
 mate Goverament of Peru. 
 
 I am certain that you accept this logical deduction, because otherwise we will be 
 placed in another dilemma, viz, either the public men of Chili have committed the 
 error of believing me to be the chief of the government without being so, or that 
 knowing I was not such, they have resolved to treat with me, provided I was ready to 
 aecept terms favorable to Chili. 
 
 Out of respect for men who occupy high positions, and the considerations which 
 governments should show each other, I do not accept either of these conclusions j 
 neither do I believe that Chili accepts them, and therefore I repeat that my govern- 
 ment is recognized by yours. 
 
 This being so, and it being also proved by the foregoing facts and by other facts of 
 public notoriety that my government was established by the popular will and not by 
 order or consent of the Government of Chili, I cannot accept your proclamation, 
 which declares my government abolished as if it were one of the offices under your 
 orders. My authority derives from the people who elected me and from the Peruvian 
 Congress, who has confirmed and extended my powers, and as long as these two au- 
 thorities do not appoint another to occupy my place, I am and shall continue to be the 
 President of Peru, whatever maybe the contingencies to which I may be exposed. 
 
 My powers do not, consequently, owe their existence to the toleration of the Chilian 
 authorities, as you state, but they derive from a fountain beyond the control of those 
 authorities. The sovereignty of Pern, which is the source of my powers, is notsubjeet 
 to the authority of Chili, or, to speak more correctly, it has not disappeared by the oc- 
 cupation of a part of the Peruvian territory, nor will it disappear if the whole terri- 
 tory were occupied. The word occupation Hst-lf expresses it clearly. On the other 
 hand there would be toleration on the part of the forces who occupy the territory if the 
 establishment of a government in the occupied territory were contrary to martial law. 
 In such a case it conld be said with reason that its acts were tolerated (pot having then 
 the right to practice any). 
 
 Martial law gives to the occupants the right to forbid all acts which may make the 
 occupation insecure, and on this account they may forbid whatever may endanger their 
 safety. In accordance with this rule, established by international law and by the 
 practice of nations, you may oppose my having troops and my practicing all acts of 
 hostility. Acknowledging this right when my troops at Magdalena were disarmed, I 
 protested against that act, not because I have the^ right to keep an army, but because 
 it violated our pre-existing engagements, and inasmuch as it might imply a rupture of 
 relations with me. But as you declared that that measure was a purely military one, 
 and dictated only by motives of safety, I recognized the force of martial law, and I 
 did not insist on my reclamation. I continue, however, occupying without troops the 
 zone of Magdalena, Miraflores, and Chorillos, and the authorities appointed by me are 
 to this moment at those places, which your troops have not again occupied. 
 
 This fact, apparently insignificant, proves that you and I are perfectly in accord as 
 regards the extent of martial law. I understand that I cannot exercise in Lima any 
 function which may have the character of a public act or of an act of force, and I ab- 
 stain from practicing the same ; and you must be convinced that you cannot oppose 
 any acts outside of that sphere, and for the same reason you have not opposed my con- 
 stituting offices in Lima, transacting business in them, and practiciog in general all gov- 
 ernmental acts which do not require a public manifestation as an essential requisite 
 for their validity. 
 
 According to these principles, you have had no right to take possession of the treas- 
 ury nor to sequestrate the funds which the government possesses in the Bank of Lon- 
 don, and which proceed from loans made by the bank itself ; nor to demand the sur- 
 render of the other offices under my administration. Those establishments are not of 
 a warlike character, and I myself have no war powers, consequently martial law can- 
 not be invoked for such acts. Martial lawis not conquest ; martial law does not trans- 
 fer Peruvian territory to the Chilian Government, and consequently in spite of that 
 
544 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 law I can and must exercise my authority, with the limitations indicated ; and the 
 offices under my administration should and must continue in operation. 
 
 To theBe considerations must be added the fact that many foreign nations have rec- 
 ognized my government as the legitimate government of Peru ; and in virtue of that 
 recognition I have contracted with foreigners residing in this country obligations which 
 I must fulfill. If those countries had believed that my government could disappear 
 by an order from the Chilian authorities, they would have never recognized me. But 
 they have thought that Peru has the right to govern herself, and have established re 
 lations with me, and have now the right to require the fulfillment of the contracts 
 entered into with their nationals. 
 
 I have, however, stated at the beginning of this letter that my resolution not to 
 cede any Peruvian territory as the basis of the treaty of peace is the cause of the meas- 
 ures taken against me. Even under this supposition it will be easy to show. that 
 what is now required of me is not justifiable. 
 
 When my election took place, I received the mission to conclude a treaty of peace 
 with Chili; and from that moment I made efforts not only to know the true opinions of 
 the republic as regards the treaty, but also to study the terms proposed at Arica, and 
 to find out if they were or not reasons strong enough to make them advisable. It does 
 not require a great effort to see that the majority, if not the whole of Peru, is opposed 
 to the cession of territory, and this being the fact, the treaty of peace, in which 
 that cession were stipulated, would produce as a result, not only the overthrow of the 
 government who were to sign it, but also the necessity of undertaking another war. 
 
 The first of these reasons, which belongs exclusively to the domestic politics of Peru, 
 does not in trnth concern the Republic of Chili ; but the second reason is of serious 
 import to Chili. To her and to Peru it is of the highest importance that the peace 
 concluded should be such that it shall not be in future altered, and that hostilities be 
 not again renewed ; and as this end cannot be attained by accepting a condition of 
 peace which the republic rejects, I ought not and must not sign a treaty in which un- 
 der the name of peace, I should make a legacy of perpetual wars to my country and 
 to the Republic of Chili. 
 
 The example of what passes in Europe cannot be alleged to destroy the force of the 
 preceding consideration. On the contrary the extension of frontiers among the na- 
 tions of Europe has been from the remotest time, and will continue to be in the future, 
 the cause of formidable wars which destroy millions of men. In spite of the exuberance 
 of population and wealth of the European nations, their large permanent armies are 
 the cause of immense evils, and these are the natural consequence of the wars of fron- 
 tiers, boundaries and conquest. If this system were to be introduced into America it 
 would produce sooner or later the ruin of the continent. Our republics are not rich in 
 capital or in population, as is proved by the fact that all are in need of immigration, 
 and that the least commotion compels them to raise new loans, and to issue paper 
 money. 
 
 If, in consequence of her first war, Chili has been forced to have recourse to the use 
 of paper money, of which she was free, what will happen when she shall be obliged to 
 sustain two or three more wars, or at least to keep up a considerable army to maintain 
 the extension of her frontiers. Listening only to the passions of the hour, some may 
 say that the future which I foresee will never be realized ; but only ordinary minds 
 will think so, and neither you nor the statesmen of Chili will agree with such. 
 
 Nations never perish ; reactions easily operate in them, and frequently their recon- 
 struction is as surprising as their falrhad been unexpected. 
 
 Convinced as I am of all this, and longing for a lasting peace, I cannot make up my 
 mind to dismember the territory of Peru. I do not wish that my name shall pass to 
 posterity with the stigma of reprobation with which the people of America will brand 
 the man who will legalize among them the fatal system of conquest ; a high feeling of 
 American policy guides me in this case, and compels me not to consent to the cession 
 of territory. 
 
 I know very well that these ideas will not be agreeable to a considerable portion 
 of the Chilian people, because at all times popular feeling has been intemperate. But 
 I believe at the same time that you and all other Chilian statesmen will think as 1 
 do, because I have believed, and noiv believe that your government will conclude a 
 treaty of peace without exacting territory. I accepted the office I hold, and now con- 
 tinue to hold it, and have not resigned it, because I have the same conviction, which 
 lias suffered no change; although, as I have said, I judge the measures taken against 
 me have their origin in my refusal to give up Peruvian territory. 
 
 But I have thought also that nobler ideas will make their way hereafter anion" 
 Chilian statesmen, and then a treaty of peace will be easily made, and we shall be 
 able to conclude it in a way that it will afford us securities in the future. We should 
 be unable to attain this end, if I could not pay to Chili the expenses of the war, but 
 I have the certainty and the means to pay a reasonable indemnity, fixed by com- 
 mon accord, or by arbitration; and this is another reason which compels me to oppose 
 a cession of territory. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 545 
 
 As, therefore, the possibility exists of settling, within a short time, the pending 
 questions, and feeling as I do that no Peruvian will cede a part of the territory of his 
 couutry as a basis of peace, the prolongation of the existing state of things, or what 
 has been called the indefinite occupation of the Peruvian territory, offers, as all meas- 
 ures of the same nature, the inconvenience of being a defective settlement. 
 
 This is neither a state of war nor a state of peace, and causing serious injury to 
 Peru, does also injure Chili. Instead of so anomalous a situation which forces both 
 countries to exhaust their strength, and which will make wider and wider the sepa- 
 ration caused by the war, is it not nobler, more grand, and more American to con- 
 clude a lasting peace that will secure a tranquil and glorious future to our countries ? 
 
 These are reasons of such weight that I do not doubt but that they will influence 
 your mind not only not to insist upon the closing of my public offices, but also to de- 
 cide you to turn over to me those you have taken possession of. Bat if, as I presume, 
 you act by order of your government, you may at least suspend all subsequent pro- 
 ceedings, transmitting to the Government of Chili the present letter, which I am sure 
 will become the basis of our future understanding." 
 
 I am, &c, ♦ 4r 
 
 F. GARCIA CALDERON. 
 
 No. 366. 
 
 Mr. Blaine to Mr. Hurlbut. 
 
 [Telegram.] 
 
 Washington, October 27, 1881. 
 Eurlbut, Minister, Lima: 
 
 Influence of your position must not be used in aid of Credit Indus- 
 trie!, or any other financial or speculative association. 
 
 BLAINE. 
 
 No. 367. 
 
 Mr. Blaine to Mr. Hurlbut. 
 
 [Telegram.] 
 
 Washington, October 31, 1881. 
 Hurlbut, Minister, Lima : 
 
 Continue to recognize Calderon government until otherwise specially 
 instructed. 
 Acknowledge receipt. 
 
 BLAINE. 
 
 No. 368. 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 24.] . Legation of the United States, 
 
 Lima, Peru, October 31, 1881. (Received November 25.) 
 Sir : The events which I indicated in my last dispatch (No. 23), in 
 relation to the recognition of the Calderon government by the interior 
 of this country have actually transpired. Montero, commanding the 
 north of Peru, has formally and officially proclaimed adhesion to this 
 authority, with the hearty assent of the army and people. 
 S. Ex. 79 35 
 
546 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Caceres, commanding the center, has "undoubtedly followed, bnt 
 official notice has not yet been received. The southern department, 
 headquarters at Arequipa, led off in this peaceful revolution on the 8th 
 day of October. Thus the fact which I deemed of primary consequence, 
 the unity of Peru under a constitutional head, has been attained, and 
 it has been attained in deference to the wishes of the United States, 
 and in distinct opposition to the European legations, as well as to the 
 pretensions of Chili. 
 
 Not a drop of blood has been shed, not a life lost in obtaining this 
 result. Whatever may be the final settlement of affairs with Chili, I 
 feel that this consolidation of public sentiment in Peru is a successful 
 issue of one object of my mission here. 
 
 It is a matter of very deep' regret to me that Mr. Kilpatrick has not 
 tteen able to bfing any influence to bear upon the Chilian administra- 
 tion at Santiago in favor of the recognition and support by Chili of 
 the Calderon government. 
 
 I understand, by certain paragraphs in his "instructions," that 
 through Mr. Osborn the United States had received substantial as- 
 surances from Chib of favorable action by that republic toward the 
 Calderon government, and that Mr. Kilpatrick was directed, on proper 
 occasion, to strengthen and confirm such purposes. 
 
 Unfortunately my colleague has not written me a single dispatch, 
 and I can only guess at his actions from events. The process of mili- 
 tary suppression of the Calderon government by Chili has been given 
 you heretofore, and in Mr. Valmaseda's note to Mr. Kilpatrick of 8th 
 October he evidently chose to consider this .Calderon government as 
 utterly dissipated, for he uses the term '' ya fenecido" (already dead). as 
 descriptive of its condition. 
 
 It has seemed to me that the whole conduct of Chili in this matter • 
 has been in bad faith. 
 
 Having given the pledge referred to to Mr. Osborn, they have vio- 
 lated it without excuse. I find their reason for so doing in the known 
 fact that they could not obtain from Calderon a pledge of cession of 
 territory, and therefore determined to destroy his authority. In this 
 they have signally failed, and have in fact contributed to his present 
 popularity in Peru. The commissioners, Altamirano and Kbvoa, have 
 been in this city some six days. As yet, no approach has been made 
 toward negotiation. I learn from various sources, of different degrees 
 of credit, that they are considering the propriety of indefinite armed oc- 
 cupation, the establishment of Chilian civU service, and the conse- 
 quent reduction of Peru to a Chilian province. This is undoubtedly 
 what they would prefer. Their principal fear seems to be that Chili 
 has not population enough to overrun and hold Peru. The idea next 
 in favor is to demand cession of Tarapaca, Tacna, and Arica as condi- 
 tion precedent to consideration of peace, and as a sine qua non of enter- 
 taining any negotiations. They say that public opinion in Chib is 
 united and resolute to keep these territories at all hazard, and that a 
 failure so to do would overthrow their government. 
 
 It is probable that within ten days one or other of these propositions 
 will be decided upon. At present they utterly ignore Calderon and 
 his government, and I am of opinion that they will soon command him 
 to leave their lines. This, of course, they have the right to do, and 
 he is ready to go when they say so, and I should not be surprised 
 in that case, if they should interfere with the legations established 
 here, or at least with those which recognize Calderon. 
 
 The straightforward and manly course for them would be to acknowl- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 547 
 
 edge the known fact of Galderon's lawful Presidency, sustained by an 
 overwhelming popular sentiment, and frankly to open negotiations 
 with him on the subject of peace on terms of equality. But for the very 
 reason that this course would be manly and straightforward, I judge 
 that it will not be adopted. On the contrary, I have full reason to be- 
 ' lieve that they are now secretly treating with agents of Pi^rola. 
 
 I have already several times presented the apparent impossibility 
 that Peru can receive the least courtesy, to say nothing of justice, in 
 this controversy so long as she stands alone, and I continue to wait 
 with patience the action and decision of the Executive at home. * 
 
 There are many insolences in the official Chilian paper in this city, 
 the only one allowed to be published, and there have been wrongs done 
 to American citizens which for the present I do not forward to you, in 
 the hope, though I fear a vain one, that the military authorities may 
 correct these abuses. 
 
 As to the articles in the press I take no notice, but the others are 
 more serious, and if not soon properly adjusted I shall be compelled to 
 send them forward for your consideration. The situation is not pleas- 
 ant, and requires of me an unusual forbearance, and a careful consider- 
 ation of such steps as I may find neces'sary to maintain the rights of our 
 citizens. 
 
 I have, &c, 
 
 S. A. HUELBUT. 
 
 Kb. 369. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 [Extract.] 
 
 Ko. 25.] Legation op the United States, 
 
 Lima, Peru, November 2, 1881. (Received Kovember 25.) 
 Sir: I was surprised by receiving, on the 31st ultimo, a telegram from 
 you dated 29th, which, when deciphered, read as follows: 
 
 Influence of your position must not be used in aid of Credit Industriel or any other 
 financial or speculating association. 
 
 To this I immediately answered. 
 
 It has not been ; it will not be. 
 
 I do not know the reasons why such a warning should be sent me. I 
 have, of course, known that the "Credit Industriel" had made arrange- 
 ments with the Peruvian Government to furnish them the funds where- 
 with to pay the money indemnity, which might be demanded. But the 
 whole matter of that contract, of which I never knew the particulars, 
 was concluded long before I arrived in Lima, in fact, as I am informed, 
 before I was appointed to this place. To set the matter absolutely at 
 rest, I inclose herewith a correspondence had this day with. President 
 Calderon, by which it appears that the last action taken was in the 
 month of March last. 
 
 I have looked upon the matter of these money arrangements between 
 this corporation and the Peruvian Government, as a matter exclusively 
 Peruvian, and not in the most remote degree connected with this lega- 
 tion. 
 
 Mr. Jacob E. Shipherd, who claims to represent the Cochet claim, has 
 written very peculiar letters to Mr. * * * in reference to that 
 
■548 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 claim, and iu Ms last letter complains somewhat indecently of the little 
 interest I appear to take in the supposed claim or syndicate over which 
 he claimed to preside. 
 
 Prom what Mr. * * * tells me of the contents of his last letter, 
 it is possible that he or his allies have something to do with this charge 
 as to the Credit Industriel. 
 
 I wrote to the Department, in my Xo. 12, my opinions upon the Cochet 
 claim, on which Mr. Shipherd and his associates rely. I have also 
 written in reply to Mr. Shipherd's letters giving him my views of his 
 0ase so far as I know its merits. I have pointed out to him the utter 
 defect of proof as to three positions, each vital. 
 
 The whole colossal speculation rests upon assumptions, not evidence. 
 Thus, first, it is not true in fact that Cochet discovered either guano or 
 its uses as a fertilizer. As such it has been known and used for hun- 
 'dreds of years, far back into the time of the Incas. 
 
 Second. It is not true that Peru ever recognized him in any such ca- 
 pacity. 
 
 Third. It is not true in fact that his rights, whatever they were, 
 descended to his illegitimate son, under whom these parties claim, or 
 at any event that any record of legitimation has thus far been pro- 
 duced. 
 
 I presented these defects to Mr. Shipherd, who does not like my criti- 
 cism, and writes to Mr. * * * that he can get on quite well without 
 me, as he has the whole government and all their friends on his side 
 and pledged to his scheme. 
 
 I am very glad to be relieved, for he has overwhelmed me with volu- 
 minous matter, so strangely written, and with such singular assump- 
 tions, that I am inclined to doubt his sanity or his truthfulness. 
 
 I would be pleased to believe in his notions, and to feel certain that 
 American citizens had a just claim to a thousand millions, but, unfor- 
 tunately, 1 have no evidence in favor, and very much against. Inas- 
 much as he has' relieved me of the affair, I have concluded to send you 
 a very considerable portion of his correspondence, so that you may 
 judge of the character of the statements I am called upon to believe. 
 
 In the short letter, the first of the series, dated June 2, 1881, you 
 will perceive the modest proposition of a share in the enterprise. I 
 request that he will show to you any and all letters' received from me. 
 Let it suffice for me now to say, that I never have proposed, nor do I 
 now propose, to aid officially or otherwise any project having any rela- 
 tion to the money affairs of Pern, from any source, American or foreign, 
 unless I am instructed so to do. I shall use my best endeavors to re- 
 store good government in Peru and to bring about a peace, but shall 
 leave that republic free, as I have hitherto done, to negotiate as she 
 pleases for the ransom of her national life. 
 
 I send the Shipherd papers herewith, to be read if you clioos6 to take 
 the trouble, and to be retained in the Department, as possibly they may 
 be necessary for me to keep. . 
 I have, &c, 
 
 S. A. HUELBUT. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 54£ 
 
 * [Inclosure 1 in No. 25.] 
 
 Mr. Hurlbut to President Calderon. 
 
 United States Legation, 
 
 Lima, Peru, November 2, 1881. 
 Will you do me the favor of giving me the actual date of the conclusion of the con- 
 tract between your government. and the Socio'te' du Crddit Industriel, for the informa- 
 tion of my government. 
 
 I have the honor, &c, 
 
 S. A. HURLBUT. 
 His Excellency F. Garcia Calderon, 
 
 President, §-e., $y. 
 
 [Inolosure 2 in No. 25. — Translation.] 
 
 Mr. Calderon to Mr. Hurlbut. 
 
 i 
 
 Lima, November 2, 1881. 
 S. A. Hurlbut, Esq., $e., $c : 
 
 My Lear Sir, and Distinguished Friend i I have to state for your information, in 
 reply to your note of to-day, that the contract between this Government of Peru and 
 the Soci^te" du Credit Industrial, was signed in Paris on the 7th of January, 1880, and 
 was modified by the government over which I preside in the month of March, in the 
 present year, 1881. This is all that has occurred in relation to this matter. 
 
 I repeat to you the assurance of my most distinguished consideration, subscribing 
 myself your true friend and obedient servant, 
 
 F. GARCIA CALDERON. 
 
 [Inclosure 3 in No. 25.] 
 
 Mr. Shivherd to Mr. Hurlbut. 
 
 Law Office of Jacob R. Shipiierd, 
 
 10 Spruce street, New York, June 2, 1881. 
 Dear Sir: Of course we shall be glad to have yourself — so far as it- may be entirely 
 proper— and your personal friends interested with us, and I will reserve say $250,000 
 of the pool stock subject to your advice. 
 Terms of payment can suit individual convenience. 
 Very respectfully, 
 
 JACOB R. SHIPHERD. 
 Hon. S. A. Hurlbut, 
 
 Belvidere, III. 
 
 [Inclosure 4 in No. 25.] 
 
 Mr. SMplierd to Mr. Hurlbut. . 
 
 New York, 
 10 Spruce street, June 2, 1881. 
 Dear Sir: I have recently written to my trusted friend and former counsel, * * * 
 inclosing him our pamphlet and asking his advice concerning the distribution of the 
 Chicago allotment of stock. He is of the well-known * * family of the * » * 
 National Bank, and is the counsel of the bank. He can give you accurate and ample 
 information concerning me personally and my business record, and I shall be glad to 
 have you question him as freely as you may desire. 
 
 Oar special relations were terminated several years ago, and he ought to speak im- 
 partially now. 
 
 Yours truly, 
 
 JACOB R. SHIPHERD. 
 General Hurlbut. 
 
550 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosure 5 in No. 25.1 
 
 Mr. Shij>herd to Mr. Hurttut. 
 
 New York, 
 10 Spruce street, June 2, 1831. 
 
 Dear Sir : Our interview, on the 30th ultimo, while satisfactory in general terms, did 
 not include so full a discussion of certain specifications as might have been had, and I 
 supplement it on my side with a few observations upon which I shall be glad to hear 
 your comment. 
 
 First. At the foundation of the whole business lies, in our judgment, the exceptional 
 equity of this claim. 
 
 It was the European culture of this French chemist that did infinitely more than 
 merely point out heaps of guano not previously localized. For one hundred and fifty 
 years the descendants of Spanish freebooters and cloddish natives had looked upon all 
 these heaps and seen nothing. The value in them would have remained unknown for 
 one hundred and fifty years more if some such scientist as Cochet had not come from 
 the outer world to find it and point it out, and to compel, by persistent demonstra- 
 tion the perception of its true character. If an angel from heaven had been sent 
 with a revelation, the boon could not have been greater or more exceptional. It was 
 to Peru at ouce a new creation and an outright gift. 
 
 Second. The absoluteness of the present right must not be vaguely considered. 
 
 The definition suggested in my draught of points for an agreement is not original, 
 but is borrowed from the comment of * * " when this claim was brought 
 to his * * . notice. 
 
 When Cochet discovered guano he became, under the law, the immediate and abso- 
 lute owner of one-third of all the guano in Peru, and no act or undertaking of the 
 Peruvian people alone, 'thereafter, could divest him of that title. At his option 
 and that of his representatives it may either be claimed that his right was to one- 
 third of each separate deposit, or was such that more than two-thirds of the total 
 having been already removed, his right is absolute to every ounce now remaining. 
 Whichever way the claim is put, the right to seize and hold what now remains must 
 be admitted to be sole, supreme, and indisputable. 
 
 Third. Against a right so lawful, so equitable, so absolute, no defense can be admissi- 
 ble. If Peru is poor it is not Cochet's fault. He has already given her §1,200,000,000, 
 which she has chosen to squander. If her bondholders have relied on guano that 
 was Cochet's and not Pern's, that is merely a case of mistake in title. If Chili has 
 exhausted herself in the endeavor to humble Peruvian pride, such exhaustion dis- 
 closes no reason why Cochet should pay her bills. The fact that Cochet, as discov- 
 erer, was entitled to one-third, and the declaration that he was discoverer were facts 
 published to all the world by Peru herself, and of facts so important and thus pub- 
 lished all the world was bound to take notice. No whine of hardship can be listened 
 to now. 
 
 Fourth. What consideration may have passed between successive owners of this 
 clgirn in the chain, is, of course, immaterial also, provided they have been legal con- 
 siderations. To the owners for whom the United States Government will speak, if it 
 speaks at all, the cost will not be less than $100,000,000, and that is enough. If earlier 
 sales were for smaller sums, it was only because Peru had denied justice until all hopes 
 of .justice had expired. The judicial view is the only just view. 
 
 Fifth. The owners of this claim have no other forum than the international, and in 
 that they see only their own government sitting to judge. The President and his 
 constitutional advisers will hear the cause and decree the justice so long denied by the 
 debtor, and will easily enough enforce whatever they decree. 
 
 Sixth. To simplify the situation by removing all issue, we propose the agreement 
 with Peru. If she were strong she would, of course, resist, and make another Landreau 
 record to blister the page's of history, but — 
 
 " When the devil was sick 
 The devil a monk would he." 
 
 And at the moment when the choice must lie between Chilian robbery and the 
 comfortable payment of an admitted debt, even Peru may choose to pay. It is certain 
 that we can make her choose it with eagerness, and so choose it now that she cannot 
 hereafter repudiate. This is probably the first hour since Cochet's rights came into being 
 when they could practically be enforced. 
 
 Seventh. If Peru solemnly confesses judgment in the premises she confesses it under 
 her own law of priority, a law made expressly for foreign creditors of the State, and pub- 
 lished as such, and the international forum which may undertake to enforce this claim 
 cannot choose but stand on that law. If, then, the only defendant is estopped and con- 
 cluded, can third parties be allowed to intervene to defeat the plaintiff's admitted and 
 adjudged rights ? 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 551 
 
 Eighth. As to Chili, certainly she cannot, even hy absorbing Pern, acquire any greater 
 rights than Peru. What title has she then to consideration? * * * Comment 
 upon this point-was : " If Chili attempts to resist Cochet's demand for his own, she 
 does but make herself immediately and directly liable for the whole debt, as for a 
 tortious detention." 
 
 Ninth. Thus far, and primarily of the absolute right. 
 
 If the foregoing suggestions are within the facts, it results: 
 
 1. That the United States Government has now the clear right as against Peru, Chili, 
 and all the world to intervene peremptorily to adj ust all questions now pending at 
 Lima. 
 
 2. That it is its duty so to intervene, because it alone can decree and enforce j ustice 
 in the premises. 
 
 Tenth. There remain then, as always, the uo less important questions of expediency 
 and detail, and concerning these it is not necessary to speak at the moment with entire 
 confidence in detail, because advantage may be taken and concessions must be 
 made in the face of the facts which will change from day to day. Expediency is, 
 after all, in sound diplomacy, only another name for exact justice — the justice due at 
 the moment to all the interests involved — and it would be premature to decree finally 
 before all the parties have been finally heard. Certain general rules and certain stable 
 facts, however, may be safely considered in advance. Thus : 
 
 First. Nothing in the present situation need delay a general notification to all con- 
 cerned that the United States must deem any arrangement to which it is not a con- 
 trolling party provisional only, and subject to revision at the pleasure of the United 
 States. 
 
 Second. The supremacy of the United States in the premises being first acknowl- 
 edged, concession in detail may be promised — subject to the limitations of equity. 
 
 Third. The intervention of the United States, if based exclusively upon the property, 
 rights of its citizens, involves no chance of political complications present or future, 
 and must eommand the unqualified respect of all governments. 
 
 Fourth. No opportunity for an intervention so safe, so important, and so influential,' 
 perhaps, has heretofore occurred in our history, and no administration so favorably 
 situated for moving in like premises has heretofore existed. 
 
 You will, I think, agree with me also that no President,' within the memory of men 
 now living, has sat at the head of the government less likely to neglect his official duty 
 _ on the one hand, or to give way to mere zeal on the other. 
 
 Fifth. No need exists to furnish American money to either Chili or Peru. English 
 and French merchants and bankers are already preparing to make large advances 
 against guano and nitrate to be consigned. American merchants and bankers would 
 gladly enough do likewise if only permitted. 
 
 If it is expedient to buy Chili off with $10,000,000, $20,000,000, or any other sum, 
 there will not be the slightest difficulty in arranging the advances from either New 
 York, Paris, or London, upon a rrarely customary commercial basis. As recently as 
 last January $5,000,000 were placed in a bank in this city by a few American capitalists 
 to be advanced to Peru in the midst of the war against no better security than Pres- 
 ident Pie"rola's agreeme/it to, consign guano, and this money was only withdrawn when 
 the owners of Cochet's claim exhibited it and gave notice that they would attach, 
 every cargo that should arrive. 
 
 Sixth. If English, French, and American merchants are content to advance upon. 
 Peruvian and Chilian promises, it needs no saying how much more readily and liber- 
 ally they would advance upon contracts with the Peruvian company, backed by the 
 United States Government. Money would be thrust upon us in excess of all possible 
 uses. 
 
 The third topic is that which concerns the personnel of the Peruvian company, and 
 as I intimated to you the utmost frankness is recognized to be the government's due. 
 
 First. The claim was first purchased of Cochet's sole heir by an American merchant 
 long resident at Lima, who discovered it very much as Cochet discovered guano, and 
 • who is entitled to like credit and reward, however liberal. 
 
 He sold interests to friends in the United States, who now unite with him in con- 
 veying to my clients. These clients, at the proper time, will cause such conveyance 
 to be made for their account directly to the Peruvian company. 
 
 Second. One of the most valuable charters ever created in this country has been 
 secured, and the transfer to my clients will probably be made within twenty days. 
 
 Third. My clients are not so well known that their names could be of special service, 
 and for this reason they prefer to remain temporarily anonymous. Their identity will 
 appear in due course. 
 
 Fourth. I have been intrusted with ample discretion in the matter of organization, 
 and my only instructions are : 
 
 1. To make the executive worthy of the interest involved. 
 
 2. To make it absolutely satisfactory to the Executive of the United States. 
 These instructions will control me. 
 
552 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Fifth. You will perceive at once how easy my task is. I have no stock to float. I 
 have no popular interest to awaken. I have, practically, no money to raise, and, 
 especially, I have no bonds. to market. I have only to seek the counsel of the wisest 
 statesmen and financiers of the country and to avail myself of the definitive sugges- 
 tions of * * * and under such advice to bring together, perhaps, one hundred 
 stockholders, who shall choose from their own number a body of trustees and execu- 
 tive officers competent to administer the guano deposits and the nitrate beds upon an 
 ordinary commercial basis, and out of the proceeds of sales to provide for all the cred- 
 itors of Peru and the Peruvian Government itself, if necessary. 
 
 Sixth. Whether I am not myself overtasked by this trust the event alone can de- 
 termine. "What the probabilities are those who know my record can, perhaps, advise. 
 If I am directly questioned, I may answer briefly that for twenty years I have been a 
 successful organizer under conditions never so favorable as these. In the midst of the 
 war I organized and administered the Freedmen's Aid Work in the Northwest and 
 Southwest, covering fifteen States, and then consolidated the dozen organizations of 
 the country into one, and administered the whole. When banking at Chicago and 
 New York, I introduced western town and county bonds to an eastern market and 
 made ihem popular by millions where they had been unknown or only distrusted. 
 In 1871 I established at Frankfort-on-the-Main — then the investment center of Eu- 
 rope — the first American banking house opened there, and upon a then declining mar- 
 ket sold $j!0,000,000 of new American railway securities in a few months. 
 
 Seventh. Among the representative gentlemen with whom I am already or shall 
 soon be in confidential negotiation in the premises, I may name such as these [here 
 follows a list of forty-five names of persons or firms which are here omitted], and out 
 of a list not less select and representative the organization will be exclusively made. 
 
 As I intimated to you, with a view to nationalizing the corporation, stock will be 
 
 allotted to select' lists of the leading capitalists iu Boston, Hartford, Philadelphia,. 
 
 Baltimore, Cleveland, Cincinnati, Chicago, and St. Louis; such lists to be made 
 
 under expert local advice, and each city to be represented in the direction ; the board 
 
 • of trustees to consist of, say, 21 members. 
 
 The very best executive and administrative talent will be employed, both in New 
 York and in Peru, and such relations with the governments of all the countries in- 
 terested will be cultivated as shall tend above all else to unqualified confidence and 
 respect. 
 
 Eighth. The controlling sentimeut of the present proprietors is wholly in accord with 
 all the suggestions you made. While taking advantage of the present opportunity to- 
 enforce the definitive recognition of an equitable indebtedness, every movement of the 
 creditors after such recognition should be helpful and friendly, and only so ; and so far 
 from taking any advantage of the inferior legal status of other creditors, we are ready 
 to deal more than liberally with every one. There is enough for all if there is a proper 
 administration, and it is precisely uprojier administration we undertake to provide. 
 
 There is no occasion therefore for any competition in the English or French syndi- 
 cates of merchants or bondholders. We must consign guano and niter to England, and 
 we may as well consign to Anthony Gibbs & Co., as to any other house. We must 
 consign also to the Continent, and if Dreyfuss & Co. will make fair terms, we may as 
 well consign to them as to others. These concessions not only make these important 
 interests our allies, but render immediately available as our own money; all the ad- 
 vances these strong houses already propose to make, and whatever other advances can 
 be used to advantage our New York consignees will provide instantly. 
 
 There is absolutely nothing to be done which will not do itself the moment the 
 Washington government gives notice of its right to supremacy. 
 
 As this note concerns itself with explanations which I should be glad to have reach 
 the President at an early day, I rely upon your permission to forward him a copy at 
 once. 
 
 I shall be particularly obliged if you will use the utmost frankness in such comments 
 and suggestions as may occur to you; above all else we desire to avoid mistakes, and 
 not less to do well than to mean well. . 
 •I am, sir, your obedient servant, 
 
 JACOB R. SHEPHERD. 
 
 The Hon. S. A. Htrlbut, 
 
 Cniled States Minister to Tern, Belridtre, 111. 
 
 [Inclosure in Xo. 25. ] 
 ilr. thipherd to J/r. Hurllmt. 
 
 Personal.] August 19, 1881. 
 
 My Dear Sir : When the gentleman to whom the inclosed letter, is addressed calls 
 for it, please delive'r to him with the letter all the printed inclosnres except the one 
 upon which I have written your own name. He is represented to me to be a person of 
 
AFFAIES IN CHILI, PERU, AND BOLIVIA. 553 
 
 exceptional influence, intimately in the confidence of President Calderon. The letter 
 concerns the documents, and the whole are expected to reach at once the Peruvian 
 executive. 
 
 The progress in our case since your departure I will briefly outline. 
 
 By arrangement with the attorneys of the Landreau clarm, we treat the two inter- 
 ests for present diplomatic purposes as one to a certain extent. The owners of the Cochet 
 interest will, at the proper time, absorb the junior lieu so as to protect the equities of 
 the interests involved. 
 
 Among the present active attorneys of the Cochet interest are * * * (who has 
 prepared a conclusive brief in support of all our demands), * * * who will proba- 
 bly be * * * colleague next year ; * * * and others will be added in due 
 course ; and from these names you will safely draw your own inferences. 
 
 Not only have none of my expectations been disappointed so far — they have, as a 
 whole, been far exceeded, and the horizon still widens. 
 
 You are concerned principally to know how we stand at * * * and I will enter 
 first upon that topic. 
 
 After a preliminary conference between * *_ * and * * * I was telegraphed 
 for, and I went on to Washington. * * * called for me, and we went, upon invita- 
 tion, directly to * * * residence, where a most cordial greeting awaited us. The 
 evening was occupied until near midnight and the next forenoon as well. All the 
 phases of the two claims were carefully discussed, and from first to last, upon the un- 
 qualified postulate that the United States must protect fully all equitable rights of 
 Americau citizens wherever vested. 
 
 At the close I was asked to state my immediate wishes, and replied, substantially, as 
 follows : 
 
 '• It seems to me that Landreau's claim must be deemed adjudicated by CoDgress and 
 enforced accordingly. 
 
 "The final proofs in the Cochet case are not yet quite in technical form, and until 
 they are no technical examination of the case can be made by the Department. More- 
 over, as to Cochet's interests, we have as yet no grievance to report, and may never 
 have any." 
 
 [Before you will clearly understand the points next made you will need to read the 
 inclosed pamphlet, upon which I have written your name, a translated reprint from 
 the original Spanish copy in our possession.] 
 
 I continued : 
 
 " There is no evidence that any issue was ever raised by Coehet not shown in his 
 pamphlet, and by that it appears that he raised two only — the one involving his right 
 to be declared the true discoverer of guano, and the other concerning a special discov- 
 ery in the treatment of nitrate bases. Of these the first was overwhelmingly adjudged 
 in his favor, and upon that adjudication our case now rests ; with the other, which re- 
 mains undecided, we have no concern. 
 
 " If Cochet was the discoverer of guano, his discovery, as * " * observed, vested 
 in him the title to one-third of all the guano in Peru, and he may, at his option, claim 
 one-third of each heap, or any other equitable one-third of the total. This is not a 
 claim, but a title as distinguished from a claim, and what descended to his lien, of 
 whom we buy, was property ipso facto. For this property no demand has been denied, 
 and presumably none will be. If, when the demand is made by legal and equitable 
 American owners, a refusal follows, then, and not till then, will a conversion accrue, 
 and then, and not till then, will an original wrong be committed ; and this original 
 wrong will be committed directly upon- American 'citizens, whom it will then be the 
 clear duty of their government to install in their property. 
 
 "But this is not quite all. It is notorious that Chili, Peru, and certain creditors of 
 Peru, are at the very point of apportioning among themselves not only the guano, 
 which is absolutely our property, but the only other available asset of Peru, the ni- 
 trate, also. If such appropriation were allowed, irreparable mischief might result. 
 
 " I therefore ask a preliminary injunction forbidding all progress in the direction of 
 any such apportionment until the Landreau claim and the Cochet title are first prop- 
 erly recognized and provided for — the former paid as res adjudicata, and the latter al- 
 lowed or fairly disproved." 
 
 The Secretary instantly responded, " That you will get, and I will make it my first 
 business." 
 
 On the 2d instant, very soon after, by directiou of the Secretary, I was advised that 
 the identical instructions suggested had that day been sent you both by cable and by 
 post, and that I might rely ur>on the status quo accordingly. 
 
 The inclosed letter to * * * is from an ezninent friend of Peru, intimately 
 known in executive circles alike at Lima and at Santiago, and, I believe, also at La 
 Paz. He looks upon our overture as the great, the magnificent opportunity of Peru to 
 retrieve all her sad past ; and that you may well understand his view of the case, I 
 have gained permission to add to these inclosures a (English) copy of the more im- 
 portant parfs of his dispatch — these of course for your eye only. 
 
554 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I ought, perhaps, to use informal frankness concerning * * * , Mr. Calderon's 
 confidential agent here. His principal attention has been openly devoted to forward- 
 ing the views of a French syndicate, of which Dreyfuss is the head, and a malodorous 
 Cuban by the name of Suarez (he went out in the steamer with you, I am told) is the 
 ostensible agent. The association (and I do not get this at second-hand) has mate- 
 rially lessened * * * influence in Washington, and as Dreyfuss is synonymous with 
 Pidrola, you will need no farther hint. 
 
 You perceive then that our programme, as approved, unqualifiedly by ' is : 
 
 1. Unqualified demand for payment of the Landreau claim. 
 
 2. Proper attention to the demand about to be made for Cochet's property. 
 
 3. Peremptory stay of all negotiations touching the cession of guano, or nitrate, or 
 territory, pending final adjustment of these American interests. 
 
 I rely upon your good opinion of us to spare us the need of saying what once for all 
 I beg you to understand, that we address ourselves to you as minister only, and neither 
 ask nor wish you to take any attitude toward these claims other than such as your 
 official instructions shall authorize and require. We do confide in your patriotism 
 and love of fair dealing to push with exceptional vigor if necessary and to their full 
 logical limit the decisive instructions received, and to leave no government and no 
 citizen in doubt that the United States is in dead earnest in the premises, and such 
 vigor you maybe sure, will be as distinctly and as gratefully appreciated by our com- 
 pany as by the Washington Government. 
 
 All that need be said under this head is summed up in the assurance that we 
 address ourselves to you in exactly the same manner in which we are welcomed by 
 * * * himself; .we supply to you the identical information supplied to him, and shall 
 be more than content if you as heartily stand for us 'at the front as he stands for us at 
 headquarters. 
 
 If you will be so good as to advise me of the safe receipt of this, and the delivery of 
 the inclosures to * * * please see that they are placed only in his own hand, and 
 will favor me with snch suggestions as may occur to you, the courtesy will be duly ap- 
 preciated. ^_ 
 I remain, dear sir, very truly, yonrs, 
 
 JACOB R. SHIPHERD. 
 
 [Inclosure in Ko. — J 
 
 Endorsement * * * to * * ' fe sent me foj Mr. Shipherd. 
 
 Private copy.] 
 
 New York, August 20, 1631. 
 
 My Dear Friend: On presenting the inclosed note to his excellency the American 
 minister, yon will receive a set of four printed documents, two of them bound pam- 
 phlets. These, as you will see, are all private and confidential copies of papers, inacces- 
 sible to the public. I have been fortunate enough to obtain them, and to procure them 
 to be sent for entire safety under seal to the American legation. 
 
 These papers hold the key to the one happy solution of all the troubles of Peru 
 which yet remains possible, and I count myself the happiest of men tbAt it is my privi- 
 lege to place them within the reach of the Peruvian executive. 
 
 If the scheme now offered had been made in'heaven and let down by angels, aa was 
 the sheet sent down to Saint Peter, it could not have more perfectly provided for all 
 the present woes of unhappy Peru. 
 
 After carefully examining it and adding to what you find printed, the facts which I 
 shall state in this letter, all of which came to me directly and officially from original 
 sources and may be implicitly relied on, you will see what an opportunity pitiful 
 heaven has at last sent. 
 
 These are the leading historical facts : 
 
 1. Cochet was the true and first and sole discoverer of the merchantable value of 
 guano. But for him those vast heaps, more precious than all the gold and silver in 
 the Cordilleras, might have lain dead and neglected to this day. 
 
 The sole intent of the decree of 1833 was to encourage persons to discover to the 
 state sources of wealth within itself, unknown before; all other discoveries- combined 
 made since that day have not brought to the republic one-fourth the fresh wealth 
 which has come through Cochet ; if he be not entitled to the one-third then should no 
 merit ever find reward. The whole civilized world with one voice will declare this. 
 
 2. Happily, indeed, his right has not only never been denied by Peru, but has al- 
 ways been admitted, and was solemnly adjudicated by the government in the report 
 of the commissioners of premiums, as printed on page 13 of the pamphlet I send-you, 
 entitled " Truth Demonstrated and Calumny Defeated." See, also, the references upon 
 page 43 of the Prospectus of the Peruvian Company. 
 
AFFAIRS IN CHILI, PERU, • AND BOLIVIA. 555 
 
 It is only necessary, therefore, in order to make perfect use of the present opportu- 
 nity, that the executive should be true to itself and to its own existing record, and rec- 
 ognize facts which it is impossible for any one to deny. The way is easy, plain, and 
 most honorable. , 
 
 3. The only dispute Cochet ever had with the government, as shown by his own 
 pamphlet, was over his nitrate discovery, which seems not to have been appreciated, 
 and which is no longer a living question. If an agreement as to the nitrate process 
 could have been reached, he would immediately have received not only the prize 
 awarded him as the discoverer of guano, but necessarily also, his one- third in full and 
 in due course. Unhappily for himself, most happily now for Peru, he would yield 
 nothing, and returned to France and died a pauper. 
 
 4. This stubbornness of the great discoverer, and the fact that his only heir, a natural 
 son, Gelacio, born in Lima, was a mere child, and ignorant of his rights till an Ameri- 
 can brought them to his knowledge less than three years ago, explain in a moment 
 how Providence held all the conditions silent for a generation to open them at this 
 critical moment for Peru's salvation. 
 
 5. You will again note the special interposition of Providence. Although this great 
 right has lain still so long, nothing of its vitality has been lost. Cochet was solemnly 
 adjudged to be "the true discoverer," and thereupon, if not even earlier, he became, 
 in the language of * * * , the first lawyer in the United States, — " Cochet became 
 immediately the owner in fee absolute of one-third of all the guano in Peru, known and 
 unlcnoiim, for being the discoverer of its value his right was inseparable from the thing 
 wherever found, and that ownership could never be extinguished or limited, save by 
 his own act." 
 
 6. This ownership, which, as you see, is no mere claim, but an adjudicated and undis- 
 puted title, had no value to the helpless heir — ignorant and penniless and unknown. 
 American capitalists purchased it, however, and are now the owners of every pound of 
 guano left in Peru, and of the money value of so much as has been sold in excess of 
 the two-thirds belonging to the republic. 
 
 Theirpurchase is as valid as if they had bought land and buildings, and their gov- 
 ernment has, of course, the right and the duty to see them protected, and you may 
 be sure it will thoroughly perform that duty and unhesitatingly exercise that right. 
 
 7. No demand has yet been made upon the Peruvian Government for the possession 
 of this guano, but such a demand will be made in a few weeks by a commissioner to 
 be sent out. 
 
 If the executive shall accede to the demand and freely consent that the owners of 
 this great property may take it at once without the hinderance of Peru, then these 
 owners must demand it of the Chilians, and if the Chilians detain it for an hour they 
 will make themselves liable instantly for a tortious conversion, and you may be sure 
 the Washington Government will make short work with them. Upon this point the 
 owners of this great interest have long ago received the most sweeping assurances di- 
 rectly from the American Executive. 
 
 8. Now we may close the circuit. To consent that this American corporation shall 
 take as a right the identical guano and nitrate which otherwise Chili will take any- 
 how, is all that is necessary to relieve Peru instantly and permanently by taking 
 shelter under the broad wing of the United States and compelling Chili to settle all 
 the rest with the United States. 
 
 9. If Peru— I do not admit the possibility— should refuse to deliver the guano de- 
 manded, and to pay at once the value of so much as is missing, then this refusal would 
 be an original denial of justice directly to American citizens, and their government 
 would then enforce their right against Peru herself, and sad indeed would be her con- 
 dition then. 
 
 10. As to the Landreau claim, it, as you see, has been fully adjudicated by the Amer- 
 ican Congress, and the American minister at Lima has been peremptorily instructed 
 to give notice that it can no longer be discussed, but must be paid. 
 
 11. The scheme of the conservative owners of Cochet's rights is, as you will see by 
 the proposed treaty, the substitution of an insolvent assignment to creditors for the 
 cruel humiliations of war. 
 
 The Cochet title has unquestionable priority, and, besides, he is the largest creditor. 
 There is, therefore, every reason why his representatives should demand the control 
 of the assets; and they show a handsome liberality in their offer to provide for all 
 other creditors, including Chili, whom the United States is willing to recognize as a 
 creditor for a reasonable war indemnity. This Peruvian Company, then, itself the 
 chief and the first creditor, will take the guano and the nitrate in trust only for the 
 benefit of all the creditors. [I may say to you privately that the company will pro- 
 tect you from any trouble with the Landreau interest, and that you may treat the two 
 interests as one.] The company, then, being a creditor for, say, $1,000,000,000, is will- 
 ing to restrict its preference to 6 per cent, upon one-half the sum (say, $30,000,000 an- 
 nually), and out of the remainder of the income to create a sinking fund to retire all 
 
£56 
 
 AFFAIRS EST CHILI,* PERU, AND BOLIVIA. 
 
 other indebtedness. It is ready to issue its scrip at par for all Peruvian paper, and 
 thus to restore the government to practical solvency at once. 
 
 12. More than this, the manager of the syndicate, who will be the permanent presi- 
 dent of the company, and who, with his immediate friends, will permanently control 
 the entire policy of the company, is known to me and to Consul Tracy, and we have un- 
 doubted assurance that from the first the company will be prepared to render every 
 assistance to the Peruvian executive which may be necessary to put it upon a proper 
 footing in the first months of a new beginning. The owners of the company are 
 among the most solid, safe, and conservative of men, and have framed a policy to last 
 at least fifty years, and to secure the largest prosperity in the future, resting upon the 
 most secure foundations of order, industry, commerce, and peace. Tbey have com- 
 mercial plans extending far beyond the limits of Peru. Their ambition is to make 
 Peru the model South American Republic, and to repeat there all the beat commercial 
 methods known in this country. They are gentlemen of the purest character and of 
 the moat honorable ideals, and will admit to their circle none of any less honorable 
 
 13. I may say farther concerning these gentlemen, whose identity is known to me 
 in detail, that tbey include the nearest personal and political friends of the Executive, 
 and not only of the present Executive, out of the Vice-President as well, who will suc- 
 ceed to the Presidency in caae of President Garfield's death. They also include repre- 
 sentatives of the most powerful money corporations in the country, and you may rest 
 absolutely assured that in dealing with them the Peruvian executive is for all practical 
 purposes dealing directly with the power and the honesty of the United States itself. 
 Once established in their great property in Peru they would be protected if necessary 
 by the entire power of their government, no matter who the acting Executive might 
 happen to be. For the commercial enterprise of this nation has now become as pow- 
 erful as that of Eugland once was, but most happily without any of that selfish greed 
 which has made England the foe of her own colonies, and hereafter American property 
 interests in foreign lands will be thoroughly taken care of. 
 
 14. The people of the United States, as we have seen in the matter of the proposed 
 Panama Canal, are determined that no European government shall take foothold in 
 this hemisphere, but they have no ambition for themselves except an honorable com- 
 mercial ambition. They want no more territory, nor do they wish to meddle at all in 
 the political affairs of sister republics. They are willing, as in the present instance, 
 to forbid the victor an extreme cruelty upon the vanquished, and for the rest their 
 only desire is to see every republic cultivate the arts of peace, and become happy and 
 prosperous within its own borders. 
 
 15. I am able to tell you, on the highest authority, that the Department of State has 
 long ago notified Chili in the plainest words that she will not be permitted to take 
 any territory from either Peru or Bolivia, except it be found that there is no other pos- 
 sible way of securing her proper war indemnity. I am able, on the same authority, to 
 tell you that she (Chili) has been notified that American citizens have filed at Wash- 
 ington their claim as owners of all the guano now in Pern, and that for every pound 
 she takes she must hereafter account to the United States, and that she has also been 
 notified that no cession of territory or property by Peru will be permitted until the 
 Cochet and Laudreau claims have first been provided for. 
 
 You perceive, therefore, that already Peru has a great friend at her back, and that 
 henceforth it is only necessary for her to lean upon that friend to be wholly saved. 
 
 16. More than this, there is help for Bolivia, too. 
 
 The owners of the Cochet rights are clear-eyed men who see far into the future. 
 Their first interest — I meau now their own first interest — is to see Peru restored to all 
 prosperity. While they will not meddle in any quarrel not their own, they cannot 
 allow any terms to be inserted into the treaty of peace which will so cripple Peru 
 or Bolivia as to affect their own commercial plans, and they will not allow any such 
 terms to be inserted. Upon this you may safely rely. 
 
 They will open the guano market and the nitrate market all over the world as it has 
 never been opened yet. They will do a business of 810O,0OJ,OuO a year when once - 
 their plans are perfected, and will open the now dead silver and quicksilver mines 
 also, if properly encouraged, and will pay off all these debts that now look so hopeless 
 easily enough, and leave Pern richer by far than she has ever yet been. All thia is 
 easy enough to American enterprise. 
 
 They are shrewd enough to see that they should have the Bolivian nitrate too, and 
 if Bolivia will treat them fairly she too can be folly taken care of— by leasing under a 
 proper commercial treaty all her nitrate territory to the Peruvian Company, which 
 will then work the whole as one interest, and pay Bolivia a regular dividend out of 
 the annual profits. 
 
 17. If you have noticed how such capitalists as these are now transforming Mexico, 
 covering it with railroads and canals, and reopening its dead gold and silver and cop- 
 per mines, you will see the example which may now be repeated in Peru. 
 
 At the head of the Mexican enterprise is General Grant, and with him are his 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 557 
 
 friends. The managers of the Peruvian Company are not one whit less able in capital . 
 Out of the midnight may spring at once the clear dawn. 
 
 18. * * * I beg you, therefore, to acquaint his excellency the President at once 
 with all the foregoing facts, that he may be able to act with promptitude and intelli- 
 gence. 
 
 19. From^he first Mr. Shipherd has sought to reach, * * * but always in vain. 
 He has, therefore, freely consulted * * * but * * * could only answer for 
 himself, and could not of course bring anything to the notice of- the Executive. I 
 have, in the exigency, volunteered to place the facts within the President's reach, and 
 having done so my duty is finished. In answer to questions directly asked me, I have 
 not hesitated to express the belief that most eagerly would Peru embrace this great 
 opportunity. I shall be compensated for this long letter if I can have immediate offi- 
 cial assurance that I have not given bad advice. 
 
 The idea of a treaty with Bolivia is a recent one; a draft of outline is now being made, 
 and when printed a copy will be sent you. 
 
 This is a long letter, but not so long as its theme, and if it opens a door of escape 
 for unhappy Peru I shall be glad indeed that it was my privilege to write it. * * *' 
 
 Mr. Shipherd to Mr. Elmore. 
 
 New York, August 25, 1881. 
 
 Sir : I have the honor to be charged with tbe duty of bringing to the official notice 
 of your excellency the fact that one-third of all the guano lying in original deposits 
 within the territory of Peru on the first day of January, 1841, is now, and for some time 
 past has been, the property of Franklin Stewart and others, who are American citi- 
 zens, and my clients, and whose title has duly descended from Alexander Cochet, duly 
 adjudged to have been the first and true discoverer of guano in Peru, and in whom the 
 fee absolute to such one-third was duly vested by the republic by operation of law. 
 
 And hereupon I am further charged to demand^ as I now do, in behalf of these 
 owners, due recognition by the existing government of all the rights of my clients in 
 the premises as such owners, and the formal release in their favor of all custody, con- 
 trol, claim, and assertion contrary or adverse to the title herein asserted, so far as the 
 Government and people of Peru are or may be concerned. 
 
 And hereupon I am further charged to demand, as I now do, payment in full, with 
 interest from the date of removal for so much of the property hereby demanded as may 
 * not be found in the place of original deposit when the Government of Peru shall attest 
 the release hereinabove demanded. 
 
 And hereupon I am further charged to protest, as I now do, against any and all ne- 
 gotiations and acts tending towards the cession, sale, lease, hypothecation, or other 
 incumbrance or disposition of any property held, owned, or contolled by Peru pending 
 the full satisfaction of the demands herein made and intended. 
 
 A copy of this notice and demand will be delivered to the honorable the Secretary 
 of State at Washington, and a duplicate is herewith inclosed for transmission, at your 
 official discretion, to His Excellency the President of Peru. 
 
 I shall be pleased to supply to His Excellency the President of Peru, upon due request, 
 any further information appropriate to the premises, including all necessary evidences 
 of the title herein asserted, and to designate a commissioner duly authorized to repre- 
 sent the owners in the immediate custody and control of the property herefcy de- 
 manded. 
 
 Iu conclusion, I beg your excellency to receive, &c, 
 
 JACOB R. SHIPHERD, 
 Attorney for Franklin Stewart gnd others, as aforesaid. 
 
 His Excellency the Hon. J. F. Elmore, 
 
 Minister of Peru, Resident qi Washington, D. C. 
 
 Mr. Shipherd to Mr. Martinez. 
 
 ' New York, August 26, 1881. 
 Sir : I have the honor to inclose herewith a copy of a communication heretofore ad- 
 dressed and delivered to his excellency the minister of Peru, resident at Washington. 
 I add also another copy of the inclosure and a copy of this note to be forwarded at your 
 official discretion, to His Excellency the President of Chili. A further copy of this note 
 will be delivered to the honorable the Secretary of State at Washington. 
 
558 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 The immediate and sincerely friendly purpose of this note is to spare the Govern- 
 ment of Chili the serious embarrassment which would necessarily follow if the rep- 
 resentatives of Chili now in Peru should continue to deal, however inadvertently, with 
 the property of citizens of the United States, as if it were the property of Peru. 
 
 And hereupon I am authorized to assure your excellency in no doubtful terms of the 
 readiness of my clients to recognize every act involved in the actual statua resulting 
 tinder the rules of war among civilized nations, from the campaign of Chili now clos- 
 ing, reserving only those indestructible rights of neutrals which even war must rec- 
 ognize and protect. 
 
 It is believed that so far from embarrassing or delaying the conclusion of a peace 
 honorable alike to victor and vanquished, and just to all interests to be affected by the 
 adjustment so much desired, and as yet so vainly sought, the interests which I have the 
 honor to represent, may be so circumstanced as to afford to all parties an immediate 
 and final solution of all urgent problems, and especially may afford the most efficient 
 and substantial guarantees of a long period of peace and prosperity in the immediate 
 future, that peace which tends only to industry and internal content, and indisposes 
 to intrigue and to war. 
 
 It may be proper to prevent possible indistinctness, that I should specifically 
 point out the necessary meanings of this communication as to the past as well as to 
 the future, and with yonr excellency's indulgence I therefore proceed to observe — 
 
 First. That this notice of title is unqualified, and must be understood to imply 
 whatever may be implied by an unqualified notice and demand in like premises. 
 
 Second. That Chili must account to the American owners for whatever guano she 
 has removed or suffered to be removed from original deposits in Peru at any time 
 since January 1, 1841. 
 
 Third. That Chili must, on and after the day of the delivery of this note and its in- 
 closures to yonr excellency, recognize and protect the title herein asserted through- 
 out the territory of Peru, so long as the military forces of Chili shall continue therein. 
 
 Fourth. That for any failure or refusal hereafter to recognize and to protect the title 
 herein asserted, Chili must be held liable, and the aggrieved will then be necessarily 
 remitted to the protection of their own government. 
 
 Fifth. It should not be overlooked that so long as the military forces of Chili con- 
 tinue in Peru, the undersigned must require of them directly, and must hold the Gov- 
 ernment of Chili directly responsible for all the protection, relief, and assistance, which 
 but for such occupation the undersigned might properly demand, of the Governmentof 
 Peru ; and express notice of such requirement is hereby given, together with like notice 
 that for any detention or appropriation of or injury to the property of Peru, the 
 debtor of the clients of the undersigned, after the delivery to your excellency of this 
 notice, and pending the full satisfaction of the demands comprised in the memoranda 
 herewith inclosed, the undersigned must and will hold the Government of Chili di- 
 rectly liable in full. 
 
 Of course I hold myself ready to supply to His Excellency the President of Chili, 
 upon due request, all further information appropriate to the premises, including all 
 necessary evidences of the title herein asserted, and to designate a commissioner, duly 
 authorized to represent the owners in the immediate custody and control of the property 
 herein demanded. 
 
 Not for a moment doubting the sincere readiness of the Government and people of 
 Chili at all times to do justice, and fully confiding In the early and amicable adjust- 
 ment of all issues concerning my clients, 
 I avail myself, &c, 
 
 JACOB R. SHIPHERD, 
 • Attorney, <f-c. 
 
 His Excellency Hon. Martial Martinf.z, 
 
 Envoy Extraordinary and Minister Plenipotentiary of Chili, at Washington. 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 August 30, 1881. 
 My Dear Sir : I sent you a very important parcel by the last steamer, and herewith 
 duplicate it throughout, to cover possible mischances of transportation. 
 
 At this writing, the President having passed, on the 26th and 27th, an exceedingly 
 grave crisis, seems to be on the sure road to recovery. You will heartily share the 
 general joy. 
 
 Our enterprise makes continuous progress, and I will keep you advised of all devel- 
 opments of interest. Of our commissioners plenipotentiary, one has been chosen and 
 negotiations for the other are now pending. We shall always be glad to receive your 
 suggestions, and shall reciprocate all courtesies shown. 
 Yours, truly, 
 
 J. R. SHIPHERD. 
 
AFFAIRS IN •CHILI, PERU, AND BOLIVIA. 559 
 
 Mr. Shvpkerd to Mr. Hurlbut. 
 
 September 6, 1881. 
 
 My Dear Sir : I must go away for a few days, and will leave this for my son to mail 
 before the next steamer's mail closes. 
 
 The letters in the Herald and the World, received by last steamer, disclose the hearty 
 vigor with which you have begun your great work, and you may be sure that vigor is 
 appreciated. 
 
 I shall try to write at least briefly by every steamer to keep you advised of progress 
 here. 
 
 We shall try to get our commissioners off during October, and they are being selected 
 with very great care and under the constant advice of the Executive with reference to 
 entire harmony with the government and its representatives, particularly yourself. 
 
 With this will be inclosed copies of drafts or demands on Peru and Chili, which will 
 be, after final corrections, duly engrossed (and also printed), and personally served, say 
 towards the end of this month. I should be glad if we could have the benefit of your 
 advice in the premises, but it is thought better to deliver these at once ; and some time 
 before our commissioners sail you will greatly aid us, and in the reflex aid your own 
 negotiations by frankly and fully advising us by post, pending the arrival of our com- 
 missioners, of whatever may aid us in shaping our plans and settling a policy. Of one 
 thing you may, however, be assured once for all, and that is that from first to last we 
 shall neither propose nor favor any measure which does not, above all else, tend to the 
 " greatest good of the greatest number." The more worthy your own plans shall be of our 
 great government, the heartier you will find our co-operation. 
 Faithfully, yours, 
 
 JACOB R. SHIPHERD. 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 September 19, 1881. 
 
 My Dear Sir: On the 17th * * * called upon me, introduced by a * 
 who is my friend, and we had a long and very satisfactory conference. 
 
 He informed me that he had some weeks since forwarded to President Calderon the 
 papers I sent him, the same sent * * * and asked for duplicates. He explained to 
 me the plans of the Soeie'te' Industriale (in which he was deeply interested), and re- 
 sponded cordially to my suggestion that if our plans should succeed we would make a 
 liberal co-operative arrangement with the soeie'te' as a party legitimately entitled to 
 fair recognition. He discussed the scheme with courteous deference, as if it were in 
 principle settled, and only methods of giving it effect remained to be considered. He 
 asked somewhat eagerly whether Peru might rely upon American protection in carry- 
 ing out the agreement with us after she had made it, and seemed to have no anxiety on 
 any other point ; indeed, he said, "If that is assured all the rest will follow as smoothly 
 as the flowing of a stream." 
 
 He surprised me with the statement that Dreyfuss not only is not in the soeie'te' syndi- 
 cate, but is hostile to it. I had heard the other statement always. Do you know what 
 the truth is 1 
 
 He welcomed my promise of a formal demand, to be served upon him, say, within fif- 
 teen days, which will initiate direftt and decisive negotiations, and volunteered the 
 offer to furnish me copies of the society's contract with the government in 1880. 
 Nothing could have been more satisfactory than his entire manner and discourse. 
 What its real significance and importance may turn out to be, of course we must .wait 
 for the future to disclose. 
 
 We note Pierola's resignation, but presume it to be merely a preliminary to his formal 
 re-election, or election rather, to the presidency by his congress. 
 
 I wish you would inform me whether President Calderon has authority to conclude 
 a treaty with us in the vacation of Congress? 
 
 Since my writing by the last steamer, I have been necessarily absent from the city, 
 and our internal negotiations have been consequently suspended. I may have more 
 news for you by the next steamer. 
 
 I should greatly prize your advice, and daily regret the distance that parts us. Do 
 not fail to write with the utmost frankness and fullness, and by every mail, if practi- 
 cable. If I can be of -any service to you personally in any way, do not hesitate to com- 
 mand me. 
 
 As I write, the President is sinking again, and the gravest apprehensions prevail. 
 Faithfully, yours, 
 
 JACOB R. SHIPHERD. 
 
560 AFFAIRS IN CHILI, PERU, AftD BOLIVIA. 
 
 Mr. Shipherd to ATr. Hurlbui. 
 
 September 28, 16.?1. 
 
 My Dear Sir : Since my last the great change has come, and General Garfield's 
 administration, so full of promise, is no more. 
 
 The Senate is to meet October 18, and the air is full of suggestions of an entirely 
 new Cabinet. It is understood that General Grant advises that Mr. Fish be recalled, 
 to the control of the Department of State, and that this advice is likely to prevail. 
 Of course the instructions you have already received will continue in force until 
 specifically modified, and it shall be our care to prevent such modification. The 
 nearest friends of the new President, are, or will be, among our stockholders, and our 
 original plan to offer General Grant himself a prominent seat in the direction will 
 probably be carried out. Then, if Peru is wise enough to co-operate with us, I think 
 no administration will refuse us the aid necessary to compel the acquiescence of 
 Chili. 
 
 Until towards the middle of October I cannot receive your acknowledgment of my 
 first message (August 20), but thereafter I shall hope to hear fully from you bv every 
 steamer. It seems to me I cannot be widely mistaken in assuming that such facts as 
 I have been sending will be helpful and welcome to you ; it is at least equally cer- 
 tain that similar advices from your office will be greatly useful here. 
 
 I may as well be frank enough to say farther that the intelligence and vigor with 
 which you have begun your work fulfill our best hopes, and that if there is a change in 
 the head of the Department of State we shall ask that no change be made at Lima. 
 
 Negotiations are pending with » leading Republican journal which, if concluded, 
 will make it our especial organ. It has no Peruvian or Chilian correspondence. 
 Either with this journal, or with some other equally good, and of the very first rank, we 
 shall conclude arrangements, and these arrangements will entitle us to publish our 
 own letters from Lima and Santiago. Can you retain for us competent men I The 
 letters must be sent to me, and, after revision, I will publish them. The only satis- 
 factory letter I have seen in the World is the one dated August 10 ; those in the 
 Herald are of very ordinary quality, and there seem to be no others. 
 
 As soon as we are fairly afloat, within range of the public eye, there will be a keen 
 appetite and a general market for Peruvian and Chilian news, and not merely gos- 
 sippy, but able and comprehensive accounts should come by every mail. I have been 
 twenty years in practical journalism, and know how such correspondence can be 
 used. If you can secure competent men I wish you would do so ; there shall be no 
 scrimping of the pay. 
 
 I write to-day because I happen to have a leisxire moment. H anything important 
 develops before the mail closes I will write again. 
 Very faithfully, yours, 
 
 JACOB R. SHIPHERD. 
 
 ISo. 370. 
 
 Mr. Etirlbat to Mr. Blaine. 
 
 Xo. -0.] Legation of the United States, 
 
 Lima, Pent, November 9, 1881. (Eeceired December 3.) 
 
 Sir : The event of the week has been the arrest of President Cal- 
 deron and Mr. Galvez, his minister for foreign affairs, by the Chilian 
 military authorities. 
 
 You have been advised that on the 28th September Admiral Lynch, 
 by order of that date, suppressed the Calderon government, and for- 
 bade the exercise of any authority by them. 
 
 Mr. Calderon has been quite careful to make no ostentatious display, 
 but has never ceased to perform acts of authority. On the 4th of this 
 month he caused a circular to be sent by his secretary, Mr. Galvez, to 
 the diplomatic body of this city, giving them information of Montero's 
 adhesion to his government. This act is said to be the provocation to 
 this singular violence by Chili. 
 
 I am informed, on good authority, that the arrest was advised against 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 561 
 
 by Altamirano and Novoa, but peremptorily ordered from Santiago. 
 It was effected about 2 o'clock on Sunday morning, the 6th, with a 
 good deal of unnecessary military display. A battalion was placed in 
 the street in rear of his house and the entire block closely guarded. 
 A company was thrown out across the front of this legation, which is 
 only three doors from Mr. (Jalderon's house, probably to prevent his 
 seeking asylum here. Mr. Calderon, however, had no idea of attempt- 
 ing escape, and was found in his house. He and Mr. Galvez were at 
 once taken to Callao and put on board the iron-clad Cocbrane, which 
 sailed on Monday evening. Their destination is said to be Santiago. 
 
 The real purpose of this arrest undoubtedly was to check the strong 
 movement in Peru toward the support of the constitutional govern- 
 ment, and to continfie the state of anarchy and confusion as a ground 
 for Chilian occupation. It is also quite possible that it was intended 
 to be understood by the people at large as the reply of Chili to the 
 known support of that government by the United States. This pur- 
 pose will of course be disavowed, but there is no doubt in my mind 
 that it exists, nor that it is so understood by every one here. 
 
 The policy of Chili is transparent, and is in fact avowed in a semi- 
 official way by their organ in this city, Ln Situation. It is to hold this 
 country under armed occupation until they can find or create some one 
 with whom they can make peace on their own terms. The Calderon 
 government, supported by nearly the whole of Pelii, was rapidly ac- 
 quiring a dignity and position which must have been recognized by all 
 nations, but it was known that it would not submit to mere dictation 
 of terms of* peace. Therefore, by the use of pure force, the head of 
 that government has been removed, and secret negotiations opened with 
 Pierola. 
 
 I notified you of the fact of the arrest by telegraph of 7th. 
 
 As soon as Montero informs me that he has accepted and entered 
 on the duties of President ad interim, as provided by law, I shall 
 formally and publicly recognize his authority during Oalderon's disa- 
 bility. 
 
 I am exceedingly anxious for some specific action by the United 
 States, which shall establish the limits beyond which Chili will not be 
 suffered to go, and I very deeply regret that the reported condition of 
 General Kilpatrick is such that he cannot be expected to be at all ac- 
 tive in any way. .He still continues his absolute silence so far as I am 
 concerned, and although I write to him every week, I send him noth- 
 ing which I am not perfectly willing should be read by the Chilian. 
 ministers, as I have reason to believe it is. I place no confidence in 
 the people who are around him, and I know that, in his state of health, 
 he can give no personal attention to anything. 
 I am, &c, 
 
 S. A. HURLBUT. 
 
 No. 371. 
 
 Mr. Blaine to Mr. Hurlbut. 
 
 No. 17.] Department of State, 
 
 Washington, November 17, 1881. 
 Sir: Your No. 12, in reference to the Cochet and Landreau claims, 
 indicates a prudent and discreet course on your part. After the in- 
 struction in my No. 7, in regard to this subject, had been mailed I be- 
 S. Ex. 79 36 
 
562 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 came convinced that there was no need of even the preliminary in- 
 quiry, which I suggested in regard to the Cochet claim. There is no 
 just ground whatever on which this government could intervene on 
 behalf of it. In so far as there may be any basis for the claim at all, 
 it originates in the demand of a native Peruvian against his govern- 
 ment. If American citizens purchased an interest in such claim they 
 purchased nothing more than the original claimant possessed. They 
 did not and could not purchase the good offices of this government, 
 and you are instructed not to extend them in the case of the Cochet 
 claim., Tour proposed course in regard to the Landreau claim is ap- 
 proved; but that claim must not, of course, be pressed in any manner 
 that would seem to embarrass Peru in the hour of her great distress. 
 Tour previous instruction to use your good offices ^n procuring an ad- 
 judication of the Landreau claim was made in view of the possible 
 fact — of which there was wide rumor — that numerous French and 
 English claims were to be presented, in which event I was anxious 
 that the resources of Peru should not be exhausted in the settlement 
 of other claims to the prejudice and detriment of one belonging to an 
 American citizen. Toil will still be guided by the spirit and intent of 
 that instruction. The statements which you say were made to you by 
 Mr. Jacob E. Shipherd are very extraordinary. It is in the first place 
 extraordinary that he should have written to you at all, for I carefully 
 advised him that ministers of the United States in foreign countries 
 were not permitted to extend their good offices in aid of any claim un- 
 less so instructed by the Department of State. I repeatedly told him 
 that any representations on behalf of the claims he was urging must 
 be made at Lima Ary his own agents. His writing you was therefore an 
 impropriety, and his attempting to instruct you as to what I had writ- 
 ten you was as grotesquely absurd as the language he attributes to 
 me. He simply makes the mistake common to a certain class of hon- 
 est enthusiasts who imagine that the polite and patient listener is the 
 author of their own extravagant fancies. I recognize several of the 
 singular propositions imputed to me as having been made by Mr. 
 Shipherd and not in any sense admitted or assented to by me. I told 
 him in the three or four interviews which he sought with me that I 
 could see no possible ground on which the United States Government 
 could lend its good offices in aid of the Cochet claim. Tou will there- 
 fore pay no attention whatever to anything Mr. Shipherd may write 
 you in regard to claims against the Government of Peru'. Tou will, 
 indeed, do well to return at once to the writers any letters you may re- 
 ceive relating to private claims, unless you fiist have the matter regu- 
 larly referred to you by the Department of State. Such reference will 
 never be made except in cases where in the judgment of the govern- 
 ment there is a denial of justice to an American citizen. Legations of 
 the United States in foreign countries must not be converted into 
 agencies for the prosecution of private claims. Trusting to your 
 sound discretion and prudent action in all matters of this character, 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 563 
 
 No. 372. 
 
 Mr. Elmore to Mr. Blaine. 
 
 Legation of Peru, 
 Washington, November 18, 1881. (Received November 18.) 
 
 Sir: When I had the honor to confer with your excellency on last 
 Monday, 14th instant, I informed your excellency that I had telegraphic 
 news of the adhesion of the Peruvian Admiral Montero to Senor Cal- 
 deron's government, and also of the last and logical Chilian outrage, 
 the arrest and taking to Chili of President Calderon and his secretary 
 of state, Seflor Galvez. 
 
 I have been waiting both for telegraphic advices and for the South 
 Pacific mail (which has finally reached here to-day) in order to address 
 to your excellency an expos6 on the situation in Peru, which although 
 so extraordinary and perhaps unique in history is not for that reason 
 the less interesting. 
 
 I hope to hand my letter to your excellency to-morrow, when I shall 
 again earnestly call your excellency's attention to a situation which has 
 probably no other solution than the resolute intervention of your excel- 
 lency's government in order to make constitutional government in Peru, 
 and a lasting peace in South America, possible. 
 
 I have the honor to renew to your excellency the assurances of my 
 highest and most distinguished consideration. 
 
 J. F. ELMOEE. 
 
 No. 373. 
 
 Mr. Elmore to the President. 
 
 Peruvian Legation, 
 Washington, November 19, 1881. (Received .) 
 
 Mr. President : Although every foreign minister accredited to the 
 chief of state enjoys the privilege of conferring with the sovereign or 
 President upon the affairs of his own country, I have seldom asked for 
 that honor, being, on principle, opposed to molesting the head of the na- 
 tion, generally overburdened with too many cares and attentions. But 
 it is not every day (if it ever occurred before in history) that when hostili- 
 ties have ceased to exist, for nearly ayear, the victorious government of 
 one of the belligerents commits the stupendous outrage of taking and 
 carrying off the recognized and unoffending President and secretary of 
 state of the other belligerent. This, Mr. President, is what the Chilian 
 Government has done with the President and the minister of foreign 
 relations of Peru. 
 
 Such an event, and the complicated state of affairs in South America, 
 authorize me, 1 think, and make it a solemn duty on my part, to request 
 your, excellency to grant me the high privilege of a short interview, 
 when I wish to thank your excellency for all the good your excellency's 
 government has done and is doin« for my country, and also to per- 
 sonally explain some facts and events. 
 
 Your excellency would confer on me a lasting obligation by letting 
 me know on what day and hour I may have the honor of calling upon 
 your excellency. 
 
 I beg to offer to you, Mr. President, the assurances, of my profound 
 respect and most distinguished consideration. 
 
 J. F. ELMOEE. 
 
 His Excellency President Chester A. Arthur, 
 
 Washington. 
 
564 AFFAIRS IN CHILI, PERU, AXD- BOLIVIA. 
 
 Xo. 374. 
 Mr, Blaine to Mr. Hurlbut. 
 
 Xo. IS.] Department of State, 
 
 Washington, Xovember 19, 1.S81. 
 Sie: On the 27th ultimo I sent you the following telegram : -'Influ- 
 ence of your position must not be' used in aid of Credit Industriel or 
 any other financial or speculating association." On the 2d instant I 
 received your reply in these words : "It has not been ; it will not be." 
 Aly reason for telegraphing you was the continual circulation of ru- 
 mors that the aid of your legation was earnestly desired to promote 
 the interest of the '-Credit Industrie] of France,'' an association which 
 is making efforts to reorganize the finances of Peru. Agents of the 
 Credit Industriel had visited the Department of State and ineffectually 
 endeavored to enlist the interest of this government in their behalf. 
 However trustworthy the Credit Industriel may be, I di I not consider 
 it proper for the Department to have anything whatever to do with it. 
 It is a foreign corporation, responsible to French law, and must seek 
 its patronage and protection from France. At the same time it is no 
 part of your duty to interfere with its negotiations with the Peruvian 
 government. If it can be made an effective instrumentality to aid that 
 unhappy country in its prostrate and helpless condition it would be 
 ungenerous and unjust to obstruct its operations. Tour duty is nega- 
 tive, and you will have fully complied with your instruction by simply 
 abstaining from all connection with the association. I have another 
 word of caution to give you. I presume that you will be asked by the 
 agents or officers of the Peruvian Company of Xew York to lend your 
 influence as United States minister to promote its interests. It would, 
 of course, present to you the claim of an American organization com- 
 posed of reputable citizens and entitled to your good offices where they 
 may, with propriety, be extended. But you will specially avoid any 
 advocacy of the claims of that or any other company or individual in 
 the pursuit of personal ends or business enterprises. To a minister of 
 your experience I need not point out the proper distinction between 
 diplomatic good offices and personal advocacy. To extend all proper 
 protection to American citizens, and to secure for them in any interests 
 they may have a respectful hearing before the tribunals of the coun- 
 try to which you are accredited, and generally to aid them with infor- 
 mation and advice, are among the imperative and grateful duties of a 
 minister — duties which increase his usefulness and add to his respect, 
 and duties which I have no doubt you will faithfully perform. To go 
 beyond and assume the tone of advocacy, with its inevitable inference 
 of personal interest and its possible suspicion of improper interest, will 
 at once impair, if it does not utterly destroy, the acceptability and effi- 
 ciency of a diplomatic representative. I recite these elementary grounds 
 at the present time, because, if I am correctly advised, all manner of 
 schemes are on foot at Lima for the reorganizption of the disordered 
 finances of Peru, and the interested parties are seeking, first of all, the 
 countenance and indorsement of the American legation. You will ex- 
 ercise the utmost care in any step you may take, and if any occasion 
 shall arise where the interposition of this government may aid in restor- 
 ing the credit of Peru you will confer by telegraph with the Depart- 
 ment, and you will take no important step without full and explicit in- 
 struction. 
 
 I am, &c, 
 
 JAMES G. BLAISF. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 565 
 
 No. 375. 
 
 Mr. Blaine to Mr. Hurtbut. 
 
 No. 19.] Department of State, 
 
 Washington, November 22, 1881. 
 
 Sir : Your dispatches to No. 23, inclusive, have been received, and I 
 learn with regret that a construction has been put upon your language 
 and conduct indicating a policy of active intervention on the part of 
 this government, beyond the scope of your instruction. As those in- 
 structions were clear and explicit, and as this department is in the pos- 
 session of no information which would seem to require the withdrawal 
 of the confidence reposed in you, I must consider this interpretation 
 of your words and acts as the result of some strange and perhaps preju- 
 diced misconception. 
 
 My only material for forming an opinion consists of your memoran- ' 
 dura to Admiral Lynch, your letter to Senior Garcia, the secretary of 
 General Pierola, and the convention with President Calderon, ceding 
 a naval station to the United States. I would have preferred that 'you 
 should hold no communication with Admiral Lynch on questions of a 
 diplomatic character. He was present as a military commander of 
 Chilian forces, and you were accredited to Peru. Nor do I conceive 
 that Admiral Lynch, as the commander of the Chilian army of occupa- 
 tion, had any right to ask or receive any formal assurance from you as 
 to the opinions of your government. The United States was repre- 
 sented in Chili by a properly accredited minister, and from his own 
 government the admiral could and ought to have received any infor- 
 mation which it was important for him to have. It was to be expected, 
 and even desired, that frank and friendly relations should exist be- 
 tween you, but I cannot consider such confidential communication as 
 justifying a formal appeal to your colleague in Chili, for the correction or 
 criticism of your conduct. If there was anything in your proceedings 
 in Peru to which the government of Chili could properly take excep- 
 tion, a direct representation to this government, through the Chilian 
 minister here, was due, both to the government and to yourself. 
 
 Having said this, I must add that the language of the memorandum 
 was capable of not unnatural construction. While you said nothing 
 that may not fairly be misconsidered warranted by your instructions, ' 
 you omitted to say with equal emphasis somethings which your instruc- 
 tions supplied, and which- would perhaps have relieved the sensitive 
 apprehensions of the Chilian authorities. For, while the United States 
 would unquestionably " regard with disfavor" the imperious annexa- 
 tion of Peruvian territory as the right of conquest, you were distinctly 
 informed that this government could not refuse to recognize that such 
 annexation might become a necessary condition in a final treaty of 
 peace. And the mayr purpose of your effort was expected to be, not 
 so much a protest against any possible annexation, as an attempt by 
 friendly but unofficial communications with the Chilian authorities 
 (with whom you were daily associated), to induce them to support the 
 policy of giving to Peru, without the imposition of harsh and absolute 
 conditions precedent, the opportunity to show that the rights and in- 
 terests of Chili could be satisfied without such annexation. There is 
 enough in your memorandum, if carefully considered, to indicate this 
 purpose, and I ouly regret that you did not state it with a distinctness, 
 and if necessary with a repetition, which would have made impossible 
 anything but the most willful misconception. 
 
566 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 As at present advised I must express disapproval of your letter to 
 SefLor Garcia, the secretary of General P ; erola. I think that your 
 proper course in reference to Garcia's communication would have been 
 either entirely to ignore it as claiming an official character which you 
 could not recognize, or, if you deemed that courtesy required a reply, 
 to state that you were accredited to the Calderon government, and 
 could, therefore, know no other, and that any communication which 
 General Pierola thought it his duty or interest to make, must be made 
 directly to the government at Washington. You had no responsibility 
 in the matter, and it was injudicious to assume any. The recognition 
 of the Calderon government had been duly considered and decided by 
 your own government, and you were neither instructed nor expected 
 to furnish General Pierola or the Peruvian public with the reasons for 
 that action. The following language in your letter to Senor Garcia 
 might well be misunderstood : 
 
 "Chili desires, and asks for Tarapaca, and will recognize the government which 
 agrees to its cession. The Calderon government will not cede it. It remains to be seen 
 whether that of Pierola will prove more pliable." 
 
 It might easily be supposed, by an excited public opinion on either 
 side, that such language was intended to imply that the Government of 
 the United States had recognized the government of Calderon because 
 of its resolution not to cede Peruvian territory. Xo such motive has 
 ever been declared by this government. The government of Calderon 
 was recognized because we believed it to the interest of both Chili and 
 Peru that some respectable authority shoidd be established which could 
 restore internal order, and initiate responsible negotiations for peace. 
 We desired that the Peruvian Government should have a fair oppor- 
 tunity to obtain the best terms it could, and hoped that it would be 
 able to satisfy the just demands of Chili without the painful sacrifice 
 of the national territory. But we did not make, aud never intended to 
 make, any special result of the peace negotiations the basis of our rec- 
 ognition of the Calderon government. What was best, and what was 
 possible for Peru to do, we were anxious to the extent of our power to 
 aid her in doing, by the use of whatever influence or consideration we 
 enjoyed with Chili. Further than that, the Government of the United 
 States has, as yet, expressed neither opinion nor intention. 
 
 I must also express the dissatisfaction of the Department at your tel- 
 egram to the minister of the United States near the Argentine Confed- 
 eration, suggesting that a minister be sent by that government to Peru. 
 
 This would have been clearly without the sphere of your proper offi- 
 cial action at any time, but as there then existed a serious difference 
 between Chili and the Argentine Confederation, you might naturally 
 have anticipated that such a recommendation would be considered by 
 Chili as an effort to effect a political combination against her. The 
 United States was not in search of alliances to support a hostile dem- 
 onstration against Chili, and such an anxiety niight well be deemed 
 inconsistent with the professions of an impartial mediation. 
 
 As to the convention with regard to a naval station in the bay of Chim- 
 bote, I am of the opinion that although it is a desirable arrangement 
 the time is not opportune. I would be very unwilling to ask such a 
 concession under circumstances which would almost seem to impose 
 upon Peru the necessity of compliance with our request, and I have no 
 doubt that whenever Peru is relieved from present embarrassments she 
 would cheerfully grant any facilities which our naval or commercial in- 
 terests might require. Xor in the present excited condition of public 
 opinion in Chili would I be willing to afford to evil-disposed persons the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 567 
 
 opportunity to intimate that the United States contemplated the es- 
 tablishment of a naval rendezvous in the neighborhood of either Peru 
 or Chili. The very natural and innocent convenience which we require 
 might be misunderstood or misrepresented, and as our sole purpose is 
 to be allowed, in a spirit of the most impartial friendship, to act as medi- 
 ator between these two powers, I would prefer at present to ask no 
 favors of the one and to excite no possible apprehension in the other. 
 
 Having thus stated with frankness the impression made upon the De- 
 partment by such information as you have furnished it, it becomes my 
 duty to add that this government is unable to understand the abolition 
 of the Calderon government and the arrest of President Calderon him- 
 self by the Chilian authorities, or I suppose I ought to say by the Chi- 
 ian Government, as the secretary for foreign affairs of that government 
 has in a formal communication to Mr. Kilpatrick declared that the Cal- 
 deron government " was at an end." As we recognized that govern- 
 ment in supposed conformity with the wishes of Chili, and as no reason 
 for its destruction has been given us, you will still consider yourself ac- 
 credited to it, if any legitimate representative exists in the place of 
 President Calderon. If none such exists yon will remain in Lima until 
 you receive further instructions, confining your communications with 
 the Chilian authorities to such limits as your personal convenience and 
 the maintenance of the rights and privileges of your legation may re- 
 quire. 
 
 The complicated condition of affairs resulting from the action of the 
 Chilian Government, the time required for communication between the 
 legations in. Chili and Peru and this Department, and the unfortunate 
 notoriety which the serious differences between yourself and your col- 
 league in Chili have attracted — have, in the opinion of the President, 
 imposed upon him the necessity of a special mission. This mission will 
 be charged with the duty of expressing the views of the president upon 
 the grave condition of affairs which your dispatches describe, and if 
 possible with due consideration of the rights, interests, and suscepti- 
 bilities of both nations to promote a settlement which shall restore to 
 the suffering people of Peru the benefits of a well-ordered government, 
 deliver both countries from the miseries and burdens of a protracted 
 war, and place their future relations upon a foundation that will prove 
 stable, because just and honorable. 
 
 I am, sir, your obedient servant, 
 
 JAMES G. BLAISE. 
 
 No. 376. 
 
 [Extract.] 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 ]STo. 28.] Legation op the United States, 
 
 Lima, Peru, November 23, 1881. (Received December 21.) 
 
 Sib : * * * I also send with this a long letter from Mr. Jacob 
 E. Shipherd, which I wish read andretained in the Department. I call 
 attention to the part markeil with lines. I have written to him declin- 
 ing any further correspondence, unless through the Department, and 
 have also written a letter of explanation to * * * said by Ship- 
 herd to be his attorney. 
 
 I am, sir, your obedient servant, 
 
 S. A. HURLBUT. 
 
568 AFFAIRS IX CHILI, PERU, AND BOLIVIA. 
 
 llnclosure in No. 38.] 
 Mr. SMplierd to Mr. BurUmt. 
 
 New York, October 27, 1881. 
 
 Sir : I have yours of the 1st instant. Yon seem still to look upon our company and 
 its possibilities only as something that may be "of great use" to Peru. I shall be con- 
 tent—extraordinary as the attitude is — to discuss it on that basis, and to applaud your 
 generous sympathy with an unhappy country ; and I will, if yon wish, pardon to an 
 excess of generosity in that direction the remarkable indifference, or seeming indiffer- 
 ence, to the interests of your own countrymen. If you had heard a tithe of the com- 
 ment made upon this seeming indifference by gentlemen whose only interestiis to ap- 
 plaud and to be proud of you, you would at least credit my own observations with 
 great moderation. 
 
 Our company, now fully organized, and already a formidable power, being, purely 
 commercial, necessarily includes, however, not only those who, like myself, are your 
 steadfast political friends, but men of all political parties and factions, all of whom 
 would none the less gladly be your friends as minister, and would heartily uphold 
 your hands, if you would give them the slightest opportunity to do so ; but who can- 
 not be expected, when they see you totally indifferent to their interests — or apparently 
 so — to forbear criticism not only severe, but possibly unjust. Snch is human nature. 
 
 If you had come to ray office, as I understood you to earnestly assure me you would, 
 before you sailed, I could have satisfied you as long ago as that upon all the points 
 you now raise. If opportunities have been lost in the intervening period, you will, I 
 trust not hold me alone to blame ; and if you had been at the pains to deliver with the 
 letter to Mr. * * ~ the accompanying documents, without which the letter was 
 unintelligible, you would at least have not taken a responsibility which no one here 
 has as yet been able to explain. 
 
 I sincerely beg yonr pardon if this frankness seems severe; it certainly is not meant 
 to be rude, and is only used to give yon some idea of the unhappy impression which 
 the attitude of your legation has— erroneously or otherwise — made upon every person 
 without exception, I believe, who looks from this viewpoint. And nothing will give 
 me siucerer pleasure than to be enabled to vindicate not only the perfect integrity of 
 your motives, but what is almost equally important, the wisdom of your methods. 
 
 In a readiness to help Peru, no one at Lima or elsewhere can proft-.i-s a sincerer de- 
 sire than this company feels. So far as Peru is concerned we might tafely ask her to 
 do nothing except for herself alone. But we have tights as well as she, and have on 
 idea of relegating them to any secondary rank Of a government capable of the of- 
 ficial record made in the Landreau case, it wonld hardly be wise to expect any refined 
 analyses in practical ethics ; no practicing attorney would hanker exactly for the priv- 
 ilege of submitting any cause to just that kind of a tribunal. 
 
 It is therefore with only a languid inteiest that we have at any timelooked toward 
 either the legal or the equitable strength of <mr case : we have assumed from the first 
 that our chief reliance should be upon our ability to rescue Peru in articulo mortis from 
 the jaws of the devouring conqueror. 
 
 But while this might suffice for the face to be tnrned toward Peru, it could not. for a 
 moment satisfy the gentlemen who constitute the Peruvian company, nur their coun- 
 sel, nor the American Government. There must be at the bottom of all our plans, 
 first the facts and next the proof of them, which would create open, clear, and incon- 
 testible equities, at least coextensive with our claim. 
 
 That such facts and such proofs do exist, the documents heretofore placed in your 
 hands have been supposed to be prima facie evidence. Of more than a score of emi- 
 nent attorneys, statesmen, and business men who have thoroughly and critically ex- 
 amined them, not one has at the end expressed a doubt, or failed to express a judg- 
 ment that our case {prima facie) was complete. 
 
 It is always possible that snch a body of experts may all be mistaken ; but the prob- 
 abilities hardly lie that way, do they ? 
 
 For example, I sent for * * - this morning, and read him your letter without 
 comment, and at the close asked him what he thought of the difficulties vou surest. 
 His reply was, " I can see nothing whatever in them. The documents in General Hurl- 
 but's hands are plain as the shining of the snn. If we are not badly advised by Peru- 
 vian authorities here, the natural s u inherits; if we are badly advised on that point, 
 it is immaterial, for we have the will." 
 
 Following my own order, I proceed then specifically to respond in turn to eackof the 
 points you suggest, and to these I may add a general observation or two. 
 
 First. I believe you are not aware that Alexandre Cochet, whom we supposed to have 
 died intestate, in fact left a valid will, in which Gelacio is duly recognized and iden- 
 tified, and to whom all the testator's rights and properties are duly bequeathed. This 
 will came to light in August last, and has been duly probated in Paris, and we have a 
 properly attested copy of it here. This fact removes the only question you raise as to 
 the chain of title. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 569" 
 
 Second. What did Cochet discover t His pamphlet shows clearly enough. Not the 
 heaps of guano, not the original vague idea that it had fertilizing properties. But that 
 ■marketable quality which brought all the millions into the public treasury. 
 
 The language of the committee of award is broader than this. (See p. 13 of Truth 
 Demonstrated.) " The 5,000 tons of guano that the national representation is disposed 
 to graDt to the Seiiores, Allier and Quiroz, believing theui to he the first discoverers of the 
 fruitful properties of this manure." 
 
 On all the facts the committee award to Cochet the prize intended for the " first dis- 
 coverers of the fruitful properties," and for those " first to introduce it into European 
 markets." 
 
 The body of the report shows, if not in a precise, certainly in a very comprehensive 
 and unquestionable way, the almost uulimited indebtedness of the republic to this 
 extraordinary foreigner, and adjudges him to be — what his own collateral specifications 
 show in detail that he was — the creator of the foreign guano market, the discoverer 
 " of untold riches," which have ever since been flowing in upon his beneficiary. 
 
 The decree — (p. 44 of the prospectus) — is as broad as possible : " That any one, after 
 
 the publication of these presents who shall have discovered or other property 
 
 belonging to the state, shall have a right to a third part." 
 
 If the intent of this decree was the benefit of the state by the discovery of available 
 value, then the rule being as broad as the reason of it, must easily enough cover the 
 value discovered in guano by Cochet alone. 
 
 If the intent was narrower than this, then it was only calculated to defeat itself. 
 The interests of the state are inseparable from those of the discoverer. 
 
 Third. What -was the award ? That the prize appointed for "the first discoverers 
 of the fruitful properties of this manure, and the first to introduce it into European 
 markets," belonged to Alexandre Cochet. 
 
 Fourth. Who awarded it ? 
 
 So far as appears at all, the final tribunal duly created and authorized by " the na- 
 tional representation." 
 
 Fifth. Does that award "bind" Peru? Apparently; why not ? Who is Peru? Is 
 not the act of an authorized agent the act of the principal ? 
 
 But all this argumentation proceeds upon the assumption that Peru proposes to dis- 
 pute this claim. 
 
 Is not such a presumption at least premature ? 
 
 Until the demand served on the Peruvian minister at Washington on the 13th, per- 
 haps no formal demand for this property has heretofore been made. In such case the 
 present Peruvian executive is as free as the executive of 1841. He is embarrassed by 
 none of the repudiations which cloud the contested Laudreau case, and may construe 
 the report of the committee of award as freely as any other sovereign. The equities 
 of Cochet's claim are simply enormous, and are so plain that no sane man can for a 
 moment debate them as doubtful. 
 
 There is no sounder rule of legal construction than that where either law or equity 
 may prevail ; equity must prevail, and if President Calderon is not clear that upon 
 merely and narrowly legal analysis the awaid defines Cochet to be the true discoverer 
 of guano — upon the notorious facts collateral to and contemporaneous with the award, 
 he cannot for a moment doubt that the finding of the committee amounts to exactly 
 that, and to nothing less. ' 
 
 The Landreau record needs no comment and will bear none. The opportunity now 
 given to do cheerfully a great justice, and at the same moment to reap an enormous- 
 reward should need no enforcement. 
 
 If it is asked, May Peru act freely in existing premises? The complete answer is r 
 Why not? 
 
 The decision which must be made upon the demand now pending is a purely execu- 
 tive decision, addressed to the executive of a sovereignty. If Mr. Calderon's govern- 
 ment is sufficiently constitutional to negotiate for peace npon terms involving the dis- 
 memberment of territory— and the Chilians have always been ready to treat with him 
 on this basis, and by such readiness are estopped, it must certainly have the inferior 
 authority to quitclaim the property of von-resi dents, and to make a treaty with this com- 
 pany which w ill preserve therepublic ; in exigencies, mere committees of safety, may for 
 the public good assume unlimited power. Is not this safe ground, in your judgment ? 
 
 You may certainly rely, my dear sir, that every view suggested herein has the hearty 
 approval of counsel entitled to the highest respect, and that we count ourselves for- 
 tunate in submitting these views for revision and criticism to counselors as able as 
 yourself and President Calderon. We are perfectly aware that our demands and Mr. 
 Calderon's concurrence— if he shall concur — will be put into diplomatic crucibles the 
 world over ; we have refined our views in advance with this expectation, and cheer- 
 fully surrender them to such tests ; and we ask only of Mr. Calderon that he take such 
 ground as he can vindicate to all intelligent and reasonable critics. 
 
 Farther than this, apply the test of a judge in court. Who has the right to object 1 
 Only some one who will suffer. Will Chili suffer? Is it not settled that her utmost 
 
570 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 right, even of lorce is limited to a reasonable war indemnity ? This is her utmost right 
 as against Peru; and if Peru admits our title, Chili has no right against us. . 
 
 Yet we are ready to pay or safely secure her proper indemnity, and upon this she is 
 out of court. 
 
 Will Peru's creditors Buffer ? Is not our offer to them incomparably better than any 
 other they have had or are like to have? 
 
 Will the citizens of Peru suffer? Is not our coming their solo chance of salvation? 
 
 Will the United States Government back us up, and by so doing pro- 
 tect Peru ? 
 
 Let that question be put directly to Mr. Blaine by Mr. Calderou. It certainly is not 
 for me to speak for the government. 
 
 But as a citizen, and one of the people who create governments, I may venture an 
 opinion shared by every stockholder in this company, and backed by the millions we 
 are ready to venture on it, and in that opinion, I fancy, you will readily concur: That 
 no government at Washington could escape the popular damnation which all parties 
 aud factions would unite to visit upon an executive that failed to protect, at no matter 
 what cost, so enormous a property as ours against the mere rapine of Chilian marau- 
 ders — Peru herself standing with us. 
 
 For your qwn satisfaction, I may say, that our staff of counsel, including such repre- 
 sentative and various men as * * * are absolutely agreed upon this as upon 
 every other point material to the pending issues ; and the most radical suggestions of 
 policy as yet suggested, have the hearty autograph approval of * * * who is now 
 one of us. The significance of all this you need no aid from me to estimate. 
 
 It occurs to me to quote your recent correspondence. The moment we heard here of 
 the decree of September 28, I wrote to * * * the intermediary between * * * and 
 myself, when I am away from Washington. 
 
 " Since I wrote you last we have fresh and stirring news from Lima. Hurlbut's let- 
 ter to Lynch deserves no stinted praise ; it is a bull's eye, and no man's hat shall go 
 higher than mine for him. 
 
 " The attempt of Chili to wipe out Calderon may be covered with any number of 
 specious pretexts, but its real motive unquestionably is to lock horns with Mr. Blaine 
 on the supremo issue of a cession of territory. Hurlbut spoke and the Chilian minister 
 at Washington ( * » » told me) appeared at the Department to demand explana- 
 tions. How he was answered sufficiently appeared from what followed. He certainly 
 became satisfied that the United States would not sit by and see Chili dig out the very 
 vitals of its victim. Between the 25th of August, when Hurlbut wrote, and the 28th 
 of September, when Calderon was suppressed, there was just time to hear fully from 
 Washington. 
 
 " It does seem to me that the time has now come for Mr. Blaine to speak the one 
 word that will cut this knot forever. Chili defies him and puts the last twist on her 
 tortured and helpless victim. Calderon, although originally set up by the Chilians, 
 resigned his provisional office to the constitutional Congress, and was at once unani- 
 mously elected provisional president by it. Now, when Chilifinds that he will not, and 
 cannot — for his Congress forbade him — cede the coveted territory, she forbids him to 
 exercise his functions at all. 
 
 " What next f 
 
 "Chilian military rule and pure anarchy. * * Chili will never permit a free 
 
 election. She will either set up another provisional stick, or she will never allow an- 
 other government to be organized. Meanwhile, all advices are that the couutry is 
 settling into a condition of permanent horribleness ; rapine is now the habit and the 
 rule. 
 
 " Has not the time fully come for the only power that can stay this awful flood, to 
 stay it ? 
 
 " Hurlbut's manifesto to Lynch is perfect. Now, if his chief cables him to con- 
 tinue to recognize Calderon and to assure Calderon that, until another government is 
 fully set up by Peru, the United States will insist upon his right to speak for Pern 
 under the sanction received from his constitutional Congress, the issue will be forced, 
 and the situation saved. 
 
 " If Chili may abolish Calderon, she may abolish Peru ; if the United States falters 
 now she may never retrieve the lost opportunity. 
 
 " The bearing of all this upon our great interest, Chili sees as clearly as I. If there 
 is no Peruvian Government, there is no government to admit our rights and so to es- 
 tablish them. The continuance of Calderon for the tirue being is vital, you see toall 
 we have at stake, and such interests as ours should easily decide, » '* * jj' as j<i e 
 from them he hesitates." 
 
 Has Peru any representative here to makeaheartier pleafor her than that! 
 
 I will read to you now from the answer that came swiftly back : 
 
 " I can only now assure you that the United States will utter her voice in a manner 
 which will m'ark an era in Americu diplomacy. The matter is being prepared and 
 within a week or two you will know what is done. You should act at once as though 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 571 
 
 the American ships of war were on their way to the Pacific coast. - - - Perfect 
 
 your plans. Everything here has been just as yon have wanted it all the time. The 
 policy of the government has been exactly right, and is now. Any man who proposes 
 
 to take part in your project should now take hold in earnest. ' Chili will 
 
 not set up another president, I fear, who will be strong enough to treat with us. We 
 had better treat with Calderon, whom I hope our government will continue to recog- 
 nize." 
 
 * * * in. continuing deplores the circumstances which prevented my original 
 purpose of putting you in possession of facts hefore your departure, which would have 
 enabled you to have pointed Mr. Calderon to this only and oomplete way of escape 
 immediately on your arrival at Lima. 
 
 But let that pass. It is not yet too late. So great a project as this, glacier-like, 
 makes slow progress at best ; it would be perilous indeed if it could move faster. 
 You are now so situated aB to place all the material facts clearly before Mr. Calderon. 
 All the papers printed and cited by me — except only GelacioCochet'sdeed,which we have 
 here and will of course produce in due course, together with the attested will — are part 
 of the official records of the Peruvian Government — congressional or municipal — and 
 presumably within the reach of the Peruvian executive. I am advised that undoubt- 
 edly Mr. Calderon can reach all the originals that are material. If not, we can supply 
 deficiencies, upon request, from copies in the Department at Washington or elsewhere. 
 Certainly I shall be at no pains to collect such copies until, upon the prima facie case, 
 Mr. Calderon plainly assures me what he proposes to do. I am doing far more for 
 Peru than she is to do for me, and shall not do more than my part. 
 
 In yours of September 12, you said that you had received no such dispatches as 
 * * * assured me had been sent. The next time I was at the ****** 
 placed in my hands all the dispatches * * " had sent you, and I read for myself., 
 The phrasing is his own, but the effect is exactly what I described. All I wanted was 
 a slat/ pending negotiation, and I expressly asked him to put the Landreau claim for- 
 ward, and to say only of ours that it had not yet been examined finally in the Depart- 
 ment. He did precisely what I asked. I ask no opinion yet of any one on the 
 merits of the Cochet claim till I have Peru's response to my demand. If that is af- 
 firmative, all the issues become finally res adjudieaia, and will be so treated by the 
 United States Government. If Peru's answer is a negative, then it will be time 
 enough to consider the next step to be taken. 
 
 Until that answer comes, it seems hardly worth while for us to send commissioners 
 to Lima. Cui bono ? The case is as char as the sun at noonday, and Mr. Calderon is 
 said to be the first lawyer in Peru. I certainly don't propose to argue, nor to solicit, 
 nor to persuade him, no» anybody else. To him, as to a drowning man siuking for the 
 last time, I throw a rope. I am not sinking, nor am I going to sink. I control an in- 
 terest large enough and strong enough to' ride all seas in all weathers. If Mr. Calde- 
 ron wishes to grasp the rope, that is for him to do. When he has done so, I will land 
 him safe and sound. Until he lays hold of it, why should I further trouble myself? 
 
 If I need a commissioner, I am content with the American minister, for the time 
 being. I need nothing from him that his official duty exvirtute officiidoea not require of 
 him, to wit, that he shall do always what he can for the interest of the United Sta es, 
 and as a friend also for the country to which he is accredited. If he does this, he 
 must to the uttermost promote the'iuteruational plans of this company, and no man I 
 can send can do this so well as he. I do not for a moment distrust him, if once he 
 will set out to utilize in a large way the mere facts as they sta id. Ho cannot go 
 amiss, aud he will find iu this office during his ministry, a id as long as he lives, the 
 surest appreciation and the most helpful friendship. 
 
 If Mr. Calderon is wise, he will make Mr. Tracy (the present consul here, and for- 
 merly charge" d'affaires) his minister plenipotentiary, to co-operate with * * * and 
 myself here as yon are working with him in Lima, and no other commissioners are 
 needed. Mr. Tracy is ideal in his Peruvian loyalty — son of an American father at 
 Lima, and a Peruvian mother — is thoroughly and exceptionally intelligent, commands 
 and deserves the highest respect, and is honest and honorable, as few men are. He 
 has from the first been aware of our plans, bur, has never had aud will never have any 
 interest with us. He does not want to be minister, aud would make great sacrifices if 
 he accepted tlie post — would ouly accept it, if at all, long enough to carry through the 
 peace negotiations, for which * * * is most sadly incompetent. I should add that 
 this suggestion is not only made without Mr. Tracy's knowledge, but despite his re- 
 peated refusal to consent to any suggestion of the kind ; I only inake it in your ear in 
 Mr. Calderon's interest, and leave it wholly to your discretion whither it shall be 
 brought to his notice. Of the utter incompetence of ' * * there can be no ques- 
 tion, and the recommendation I have made is based upon au intimate acquaintance 
 with Mr. Tracy for the last six months. No other man, I think, could, at this junc- 
 ture, do Peru so great a service as he, if he would accept the appointment, and I think 
 he would not refuse the necessary sacrifice if the President should ask it. 
 
 It has been suggested by one of our share-holders that, as the Chilians 
 
572 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 say Mr. Calderon may exercise his functions anywhere save nnder the Chilian flag , 
 that he might, without delay, carry on all the negotiations necessary to onr views un- 
 der the American flag in your own office. The suggestion will not be new to you, and 
 there may be some difficulty in the way unknown to us. I mention it to indicate oar 
 readiness to recognize his official acts. We care no more for Chili's decrees in Peru 
 than for the breath of any other aliens. 
 
 I thank you heartily for the news of the proposed sale of an interest in 
 
 the Landreau claim to the Chilians. The same interest was offered us during the 
 summer ard declined. 
 
 If our claim is good at all it takes, practically, everything, and Landreau owners 
 must make terms with us as best they can. We have not only a valid first lien (p. 45, 
 Prospectus), but the mere magnitude of our interest must dominate all others in any 
 event. 
 
 I am quite content the Chilians should buyit if they think there is any money in it ; 
 but I doubt if they will, because if Peru admits our title Chili would be only buying a 
 kneeling place at our foot-stool, and if Peru denies our title, Chili can buy that, and 
 adjudicating it for herself foreclose on Peru with a process that neither the United 
 States nor any other foreign power will for a moment question. 
 
 Having delayed this intimation until now, I may add that it is no new idea with 
 this company. When we first bought this title we saw three markets for it, and of 
 these three Chili was not the least promising. Of the merits of the original quarrel 
 we know nothing and care nothing. Peru is the under dog, and our sympathies lie 
 with her. There are strong reasons why we should prefer to deal with her, otherwise 
 we should not make her the first offer. Bat certainly we have not bought this great 
 interest to lay it at the feet of Peru, to use or to refuse as she may choose. We have 
 rights as well as she, and we have abundant alternatives if Pern wishes to challenge 
 us to use them. Of these the Chilian is only one, and is only suggested to make clear 
 the general fact that we have at least one alternative. I need not dwell ou this point, 
 Mr. Calderon can follow it out for himself. 
 
 Nor are we dependent on Mr. Calderon's government. We can wait ; all methods 
 are open to us, all delays make in our favor and not against us. It ia not for us to 
 hasten, but only to strike when the hour strikes. 
 
 If Mr. Calderon wishes speed he can have it; we are ripely ready whenever be is 
 ready. The moment he cables me the proper assurances he will find me responding 
 like an echo ; till then I wait. 
 
 My telegraphic address (cables) is Jacket (Jacket), New York. 
 
 It might be better still for you to cable * * * in cipher. 
 
 If now, my dear sir, you see your way clear to work with us I will bnry all 
 
 the past and you shall find in me a true partner. Certainly, I ask nothing of you hut 
 that, you serve the interests of the whole United States aud of Peru at the same mo- 
 ment. 
 
 With great respect, your obedient servant, 
 
 JACOB R. SHIPHERD, 
 
 President. 
 
 No. 377. 
 Mr. Hurlbut to Mr. Blaine.. 
 
 Xo. 29.] Legation of the United States, 
 
 Lima, Peru, November 23, 1881. (Received December 21.) 
 
 Sir : The evidences of an intention to occupy Peru for an indefinite 
 time are multiplying. 
 
 The Chilian authorities are preparing a full system of internal gov- 
 ernment, including judicial functionaries. They are carefully examin- 
 ing all sources of internal revenue heretofore belonging to Peruvian 
 authorities, and announce the intention to collect all these by their own 
 officials. 
 
 It is stated that this new order of things will go into effect on the 
 first of December. The effect of such a declaration will be disastrous 
 to all foreign interests in this country and will at once revive war in its 
 worst form. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 573 
 
 The custom-houses now yield to Chili from nine to ten millions per 
 annum. Add to this the internal revenues, and it is evident, that so 
 far as the Chilian Government is concerned, they will make money by 
 the occupation. But the occupation, to be effective, must be in military 
 force much greater than now, and the weakness of Chili consists in its 
 small population. The steady drain of effective men i« beginning to be 
 felt severely by that class who furnish the rank and file, and the com- 
 plaints are already serious. And if this be the case now, when half or 
 more of Peru is anxious for peace, and takes no active part in the war, 
 how much more serious will it be when the whole effective population 
 of Peru perceives that nothing is left them but war if they desire any 
 portion of independence. 
 
 The military occupation of Peru declared as a definite policy, will 
 compel an outer line of armed Peruvians, and effectually close all ac- 
 cess to the interior. 
 
 Thus commerce will either be prevented or double duties, Chilian 
 and Peruvian, collected, and the coast cities which live upon the com- 
 merce of the interior will rapidly decline. Our interest in the general 
 commerce of Peru is not as large as that of England or Prance, but it 
 is worth protection. Our internal interests are very large, for the three 
 great railways of Peru are owned and controlled by Americans, and are 
 even now paralyzed. 
 
 The establishment of this policy by Chili means absolute ruin to these 
 interests, involving many millions of dollars. . 
 
 Irregular warfare, thoroughly possessing itself of the interior, will 
 breed rapine, violence, and all possible evil. 
 
 The only thing outside of foreign interference which I see to hinder 
 Chili from inaugurating these evil days, is her want of population. I 
 see, on inspection of the new troops, that they are largely composed of 
 boys. I learn that labor is very scarce in Chili; that as high as seven 
 soles a day has been offered for ordinary laborers on railways ; that 
 recruiting, even with heavy bounties-, is a failure. 
 
 These facts, which I believe to be well founded, may incline the rulers 
 of Chili to peace, otherwise we must look for military occupation. 
 To-day (the 23d November) I received an official letter from Vice-Presi- 
 dent Monteroj dated at Cajamarca, a translation of which is inclosed. 
 I am also in receipt of reliable information that Caceres has forbidden 
 Pierola to come within his command, and that a battalion sent by 
 Pierola from Ayacucho to put down the»movement in Cuzco, has joined 
 "the constitutionalists, and that a force, both from Cuzco and Arequipa, 
 is in motion upon Ayacucho. I sincerely wish that Mr. Calderon could 
 be restored to the country, as he is undoubtedly the man of most brains 
 and education. No dispatches came to me by the last mail, and as the 
 one to arrive on Saturday makes no connection with the United States, 
 I do not expect anything. 
 
 I received a telegram from you, dated the 16th November, which I 
 answered on the 17th. I had acknowledged the receipt of the telegram 
 which you date as of 31st of October, but which came to me with date 
 of 2d November on the 3d, but made no other answer until called for 
 by your telegram of 15th No vera ber. 
 I am, sir, &c, 
 
 S. A. EUBLBUT. 
 
574 AFFAIRS IN CHILI, PERU, AND BOLIYIA. 
 
 [Inclosure in Xo. 29. — Translation.] 
 -Ifr. ilontero to iff. Hurlbut. 
 
 Cajamarca, Xovember 11, le'il. 
 
 Sir: Faithful to the indication given to yonr excellency in my letter of the 23d of 
 the past month, that I would direct my conduct in the sense of uniting the country 
 under the constitution of 1860, 1 called a popular meeting for that purpose, and, as 
 you will see by the proceedings published in the newspaper La Realidad, which I have 
 the honor to inclose, this department and the army of the north have proclaimed for 
 constitutional order, recognizing the authority of His Excellency Sefior Don F. Garcia 
 Calderon, and passing a vote of thanks to the Government of the American Union, 
 which you so worthily represent, for its elevated and philanthropic conduct in refer- 
 ence to the questions between my country and the Republic of Chili. 
 
 In giving you this information, it is a pleasure for me to assure you that, seconded, 
 as in a short time it will be, by all the other departments of the north, the National 
 Union will soon be an accomplished fact, with which valuable aid, and with the noble 
 intentions which animate your government, it should be easy to obtain a satisfactory 
 solution of the terms of peace hereafter to be celebrated. 
 
 I avail myself of this opportunity to reiterate to jonr excellency the sentiments of 
 my high esteem and respectful consideration, asking, at the same time, that you will 
 please inform your government of the facts above stated. 
 
 God guard you. 
 
 L. MONTERO. 
 
 Xo. 37S. 
 Mr. Blaine to Mr. Hurlbut. 
 
 [Telegram.] 
 
 Washington, Xovember 20, 1881. 
 Hurlbut, Minister, Lima : 
 
 Special envoy extraordinary leaves Washington for Pern immedi- 
 atelv. Continue recognition of Calderon government. 
 
 BLAIXE. 
 
 Xo. 379. 
 
 Mr. Blaine to Mr. Elmore. 
 
 Department of State, 
 
 Washington, Xovember 26, 1SS1. 
 Sir : I have the honor to acknowledge the receipt of your note of 
 the 18th instant in relation to the telegram informing you of the ad- 
 hesion of the Peruvian Admiral Montero to Senor Calderon's govern- 
 ment, and of measures taken by the authorities of Chili against that 
 government. 
 
 Accept, sir, &c, 
 
 JAMES G. BLAIXE. 
 
 Xo. 380. 
 Mr. Blaine to Mr. Hurlbut. 
 
 Xo. 21.] Department of State, 
 
 Washington, Xovember 30, 1881. 
 Sir : You have already been made acquainted, by my Xo. 19, of the 
 22d instant, with the determination of this government to send a special 
 
/ AFFAIRS IN CHILI, PERU, AND BOLIVIA. 575- 
 
 mission to South America for the purpose of adjusting whatever ques- 
 tions, growing out of the contest between Chili and Peru and Bolivia, 
 may affect the relation of the United States to the three belligerent 
 powers, or conduce to the restoration of good understanding among 
 them. 
 
 I have now to inform you that William Henry Trescot,, esq., of South 
 Carolina, has been commissioned as Spanish envoy, with the rank of 
 minister plenipotentiary, to the Eepublics of Chili, Peru, and Bolivia, 
 and will forthwith set out upon his mission. 
 
 The commission which Mr. Trescot receives will not supersede the 
 ordinary duties of yourself and your colleagues at Santiago and La 
 Paz ; but all communications and negotiations connected with the set- 
 tlement of the pending difficulties between Chili, Peru, and Bolivia, so- 
 lar as this government may deem it judicious to take action, will be 
 transferred to Mr. Trescot's charge. 
 
 Under the instructions which have been given to Mr. Trescot, he 
 will place himself . in direct communication with the several govern- 
 ments to which he is thus specially accredited. It is, however, ex- 
 pected that he will learn from you and your colleagues the exact con- 
 dition of existing political relations, and receive such suggestions as 
 your recent experience may enable you to submit for his consideration. 
 The action he may take, however, must be decided upon his own re- 
 sponsibility and in the exercise of his independent authority. 
 
 Mr. Trescot will be accompanied on this important mission by the 
 Third Assistant Secretary of Staje. As it may be necessary to consult 
 the representatives of the United States in Chili, Peru, and Bolivia at the 
 same time, or to conduct a simultaneous negotiation with those gov- 
 ernments, Mr. Trescot is empowered by the President of United States 
 to authorize Mr. Walker Blaine to represent the United States at any 
 point where this necessity may occur. 
 I am, sir, &c, 
 
 JAMES G. BLAINE. 
 
 No. 381. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 30.] Legation of the United States, 
 
 Lima, Peru, November 30, 1881. (Received December 21.) 
 
 Sir : Since my last no event of any importance has occurred in Lima. 
 On the 28th November, I received a telegram from you, announcing the 
 speedy departure from the United States of a special envoy, and also 
 directing me to continue to recognize the Calderon government. 
 
 On the same day I received letters from Mr. Rafael Villanueva, Sec- 
 retary-General of the Vice-President, giving notice of his acceptance of 
 the office to fill the vacancy occasioned by the seizure of President Cal- 
 deron, copies of which papers, in translation, I forward as inclosures. 
 
 I have answered these by a formal communication acknowledging Ad- 
 miral Montero as the lawful head of the Constitutional Government of 
 Peru, which will go forward to him to-morrow. 
 
 I shall take no further steps until the arrival of the special envoy. 
 I am, sir, &c, 
 
 S. A. HURLBUT. 
 
576 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Inclosure 1 in No. 30.— Translation.] 
 
 Copy of law, October 4, 18-Jl. 
 
 Francisco Garcia Calderon, Provisional President o£ the Republic. 
 Inasmuch as Congress has passed the following law : 
 
 The Congress of the Republic of Peru, considering that, for the preservation and se- 
 curity of the constitutional order, it is indispensable to name the person who shall re- 
 place the President of the republic when from any cause he shall be precluded from 
 exercising supreme authority, has paBsed the following law - 
 
 Article 1. In case that by reason of any impediment the actual Provisional Presi- 
 dent shall be unable to exercise the supreme authority, Rear-Admiral Lizardo Mon- 
 tero shall take his place, and shall in such case take charge as chief of the executive 
 power, with the character of first vice-president of the republic during tbe existence 
 of the state of war with Cliili, and until treaties of peace shall be ratified, the republic 
 return to peace, and the people in accordance with the constitution shall designate the 
 officers who shall exercise the executive functions. 
 
 Art. 2. Rear-Admiral Lizardo Montero, upon entering upon the duties of said office, 
 shall take an oath before any court of judicial authority in the republic. 
 
 Let this be communicated to the executive for such action as may be required to 
 enforce it. 
 
 Given in the hall of session at Lima, this 29th of September, 1881. 
 
 v T. T. ELGUERA, 
 
 President of Congress. 
 L. GARCIA, 
 
 Secretary of Congress. 
 ISAAC ABRAMORA, 
 
 Secretary of Congress. 
 
 Therefore it is my order that the same be printed, published, and circulated, and 
 <the terms of the same fulfilled. • 
 
 Lima, 4 October, 1681. 
 
 F. GARCIA CALDERON. 
 M. VELARTO. 
 
 . [Inclosure 2 in No. 30. — Translation. ] 
 
 Diplomatic circular. 
 
 Cajamarca, Xotember 15, 1881. 
 S ecretary-Gexerai. of State : 
 
 Sir : On account of the act committed by the enemy of Peru, by imprisoning and 
 carrying beyond the Peruvian territory his excellency Francisco Garcia Calderon, 
 Provisional President of the Republic and the minister of foreign affairs, Manuel 
 Maria Galvez, his excellency the first vice-president, Rear-Admiral Lizardo Montero, 
 has to-day assumed supreme power, having first taken the prescribed oath of office 
 before the superior tribunal of justice in this district, in fulfillment of the law of the 
 4th October last, a copy of which is herewith transmitted. 
 
 The government is therefore established for the present at this city while the neces- 
 sities of the nation demand it; and it becomes my duty to inform you that by 
 supreme decree of this date, I have been charged, until a cabinet is formed, with the 
 service of the different branches of public administration, which appointment offers 
 me the satisfactory occasion of offering to your excellency the facilities necessary for 
 any matters of state which require diplomatic intervention. 
 
 His excellency deplores profoundly the events which I have mentioned in the be- 
 ginning of this dispatch, not only on account of their import in themselves, but be- 
 cause they sharpen the points of difference between the belligerents, and for the effect 
 upon tbe country of the seizure of its chief magistrate. 
 
 Availing myself of this opportunity, I have the honor to assure your excellency of 
 "tbe sincere purpose which animates my government to draw closer the relations of 
 sincere friendship which fortunately unite Peru with the United States of America, 
 to the end that they may reciprocally furnish the means which may be necessary for 
 that future greatness to which both countries have the right to aspire With senti- 
 ments of the most profound esteem, I have the honor to subscribe myself. 
 
 Your excellency's faithful and obedient servant, 
 
 RAFAEL VILLANUEVA. 
 Hi< Excellency S. A. Hurlbut, 
 
 Envoy Extraordinary andtMinister Plenipotentiary, United States of America. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA., 577 
 
 [Inclosure 3 in So. 30.— Translation.] 
 Mr. Villanueva to Mr. Hurlbut. 
 
 Cajamahca, November 18, 1881. 
 
 Sir: I am charged by his excellency the first vice president of the republic with 
 the duty of answering your letter of the 8th November instant. 
 
 His excellency properly appreciates the declarations made by you, and, as you will 
 see by the circular which, on the 15th of this month, I forwarded to the diplomatic body 
 residing in Lima, all the prescriptions of law have been complied with, and after 
 taking the proper oath of office the first vice-president, Rear-Admiral Lizardo Montero, 
 has assumed the duties of the supreme executive. His excellency, who dHly esteems 
 and recognizes the noble efforts which in your character of representative of the gov- 
 ernment at. Washington, near the Constitutional Government of Peru, you have made 
 toward the adjustment of honorable peace with Chili, has the hope that your excel- 
 lency will continue to give to his government the same important aid which has been 
 given to that of his predecessor, his excellency F. Garcia Calderon. 
 
 I avail myself, &c, 
 
 RAFAEL VILLANUEVA. 
 
 No. 382. 
 
 Mr. Blaine to Mr. Hurlbut. 
 
 No. 25.] Department op State, 
 
 Washington, December 3, 1881. 
 
 Sir : Since sending my instruction No. 19, of the 22d ultimo, to you, 
 upon a more careful examination of the protocol transmitted in your 
 dispatch of the 5th of October, signed by yourself on behalf of the 
 United States, and Sefior Galvez, minister of foreign affairs, on behalf 
 of Peru, for the cession of a naval and coaling station to the United 
 States at Chimbote, I find it difficult to discover what substantial ad- 
 vantages would be gained by this government in the event of its accept- 
 ance of the proposed agreement. 
 
 I have already had occasion to remark that the time was not oppor- 
 tune for any negotiation for a concession from a power reduced to such 
 extremity as that in which Peru stands to-day, and to call your atten- 
 tion to other grave considerations which should outweigh any apparent 
 temptation to our sense of immediate self-interest in asking or accepting 
 the concession of special privileges in that country. 
 
 But the advantages offered by this protocol grow more shadowy as 
 its provisions are more closely examined. The first article concedes to 
 the United States the right to establish a coaling station at Chimbote, 
 and the second immediately adds that this shall not be exclusive ; that 
 Peru reserves the right to concede the same facilities to any other 
 friendlypower which may solicit them. The third subjects to Peruvian 
 law whatever land might be acquired by the United States for the pur- 
 poses of a coaling station; and by the fourth article Peru has the right 
 to withdraw all that is conceded by the agreement whenever she sees 
 fit, upon one year's notice. 
 
 A naval and coaling station on the South Pacific coast, carefully 
 chosen, with the aid of the professional knowledge of those specially 
 qualified to determine its capacity to answer the wants of our national 
 ships, and over Which we might exercise proper and necessary jurisdic- 
 tion, with a secure tenure, would be of undoubted value, and this gov- 
 ernment, at a fitting time, may be willing to negotiate upon fair terms 
 S. Ex. 79 37 
 
578 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 for such a privilege. In the protocol presented I observe that you have, 
 with perfect justice, offered no consideration to Peru for this amiable 
 concession, which would only enable us to enjoy on her shores the same 
 privileges which we substantially possess to-day, and which she is 
 ready to extend to every other power with which she is not in actual 
 war. It has the merit at least of innocent diplomacy ; nothing was 
 given and nothing was taken. 
 
 While your negotiation of this protocol may be regarded as an error 
 of judgment, involving no serious or lasting consequences, I regret that 
 another proceeding which you report iu the same dispatch is of a graver 
 nature, and I cannot pass it by without the most decided expression of 
 disapprobation. 
 
 You have commenced an extraordinary negotiation with President 
 Calderon in regard to a railroad company of which you, while Ameri- 
 can minister, propose to become the trustee or intermediary, the road 
 to be ultimately turned over to an American company, an unfinished 
 road which you say has already cost nine millions of dollars. 
 
 The principal terms of the arrangement will be the payment to the 
 Peruvian Government of one million of dollars in money, and the same 
 in paid-up stock, to clear up all existing incumbrances, for which sums 
 they concede the right to construct and operate the road for twenty- 
 five years after it is finished. Tou consider the grant very valuable 
 and the possibilities of the company very large. The special advantage 
 which the United States may derive from these possibilities is that the 
 price to be charged for coal carried over the road may be limited, as 
 the railroad runs to Chimbote and the railroad arrangement is a sequel 
 to and part of the plan for a coaling station there. 
 
 I have learned of this negotiation with profound astonishment and 
 regret- 
 It is hardly conceivable that under any circumstances whatever your 
 government would consent that its minister should accept such a posi- 
 tion, but for the minister himself, without instruction and without per- 
 mission, to assume the charge of an extensive financial scheme for the 
 purchase, completion, and transfer of a railroad is an utter disregard 
 of every rule of prudence and propriety that should govern the conduct 
 of a representative of the country. At a time like the present, when 
 the ruin of Peruvian interests and the embarrassment of that govern- 
 ment in its almost hopeless attempts to contrive a method of raising 
 money have given birth to so many speculative schemes, and filled the 
 press with accounts of contending companies and their enticing pro- 
 posals, the direct participation of the American minister in a plan for 
 the reorganization of a railway wreck cannot fail to lead to misappre- 
 hensions on the part of other governments and distrust of the United 
 States and its minister, whose motives and proceedings would be viewed 
 in the most unfavorable light. 
 
 Whether the grant be very valuable or the possibilities of the rail- 
 road very large, or the profit of the speculation great or not, are ques- 
 tions of little moment compared to those higher considerations of na- 
 tional interest and dignity which should govern every act and every 
 word in the intercourse and dealings of this nation with others, as con- 
 ducted by a representative clothed with its power and charged with its 
 interests and its honor. The construction of a railroad and the cheapen- 
 ing of coal may be laudable enterprises in themselves,"but this govern- 
 ment does not send its envoys abroad to undertake them. It is incon- 
 sistent with the first duty of a diplomatic agent to assume such func- 
 tions ; and however disinterested, or innocent might be his design, it 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 579 
 
 would inevitably awaken surmises prejudicial to his standing and would 
 impair, if not destroy, his influence with his colleagues and with the 
 people of the country to which he was accredited. 
 
 With some relief I note that this negotiation was not wholly com- 
 pleted at the time of writing your dispatch. I presume it was broken 
 off by the arrest of President Calderon ; but I would be better pleased 
 to learn that upon mature reflection the impropriety of engaging in 
 such a project and undertaking functions so incompatible with your 
 representative character had occurred to your own mind, and that you 
 had abandoned it altogether. 
 
 If, on the contrary, you have actually endeavored to carry it out by 
 any compact or convention with the Peruvian Government you will at 
 once notify it that the project is disapproved, and will not be ratified ; 
 and you will abstain from taking any further steps in the name of the 
 United States tending to the acquisition or control of the railroad or 
 the interference in any way whatever in that enterprise so long as you 
 are minister from the United States. 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
 No. 383. 
 Mr. Blaine to Mr. Hurlbut. 
 
 No. 26.] Department op State, 
 
 Washington, December 5, 1881. 
 
 Sir : Your No. 25 of the 2d ultimo, in relation to the Gochet claim, 
 has been lately received. I have pleasure in expressing my apprecia- 
 tion of your course, as detailed therein, with regard to Mr. Shipherd's 
 advocacy of that claim, and especially your action in sending hither the 
 correspondence in the case. 
 
 The inclosed copy of a letter which I have addressed to Mr." Ship- 
 herd shows that I entertain a no less decided opinion than you have 
 held as to the indecency and dishonor of his attempts to influence di- 
 plomatic consideratiou of this claim. Perhaps I should mitigate 
 somewhat the severity of my language in view of the possible fact, 
 pertinently suggested by you, that Mr. Shipherd is not wholly in his 
 right mind. 
 
 In a late instruction I referred to the Peruvian Company as com- 
 posed of reputable gentlemen in New York. I am led now to believe 
 that the eminent New York gentlemen, claimed to be associated in the 
 company, are as ignorant of the use of their names as I have been of 
 the remarkable and absurd statements which Mr. Shipherd attributes 
 to me in his letters to you. 
 Yours, &c, 
 
 JAMES G. BLAINE. 
 
 No. 384. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 32.] Legation of the United States, 
 
 Lima, Peru, December 7, 1881. (Received January 4, 1882.) 
 Sir : On the 28th of November, 1881, at the city of Tarm a, Mr. Pie" 
 
580 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 rola issued a formal decree abandoning his position as President, and 
 turning over all his troops and other means to General Carceres. He 
 also published a short proclamation. Both of these documents I inclose 
 in translation. 
 
 Having been furnished by the Chilian authorities with passports and 
 safe conduct, he is now in this city. He has said that he will leave by 
 steamer to-morrow. I do not believe it. c 
 
 I find that preparations are being made for a public meeting for next 
 Sunday, to insist upon his retaining office. Such meeting can only be 
 had with the consent and by the connivance of the Chilian authorities, 
 and would in any event be worthless as an expression of public opinion. 
 
 Sir Spencer St. John, the English minister, is behaving very singu- 
 larly and indecorously in these affairs. He learned the other day, in 
 a very vague form, something about the Chimbote protocol, and has 
 proceeded to the singular length of writing out the points of a " secret 
 treaty" between the United States and Peru, which he is exhibiting in 
 clubs and other public places, and which he induces people to believe 
 is genuine. 
 
 In the same spirit he has induced the Chilian authorities to believe, 
 or to effect to believe, that a "secret treaty" of vast importance has in 
 fact been executed, giving in ownership to the United States the entire 
 bay of Chimbote, and some square miles of territory, and the railroad, 
 with exclusive civil and military jurisdiction and power to erect forti- 
 fications, besides many exclusive privileges. 
 
 If Mr. St. John had ever said anything to me on the subject I should 
 have probably told him the facts as they were. 
 
 The death of General Kilpatrick, which took place on Friday night 
 of last week, was communicated to me by telegraph. I hoisted the le- 
 gation colors at half-mast. 
 
 I hope and believe that the envoy now on his way will be ready and 
 will be ordered to supply his place, and with such full information from 
 the Department that he will be ready to act promptly. 
 
 One of the Chilian papers just received contains the following news 
 from Santiago, which I send for what it is worth : 
 
 It is said that General Kilpatrick has received a note from his government, disap- 
 proving the apprehension of Calderon, and that he is directed to communicate such 
 disapproval to the Chilian Government, waiting for the arrival of the minister to treat 
 directly. It is added that the Chilian Government answered that it would act as 
 hest became its duties and its interests. 
 
 December 1, 1881. 
 
 General Charles Adams arrived here last Saturday on his way to 
 Bolivia. He will leave on Saturday morning (10th) for Mollendo, thence 
 by railway to Puno and La Paz. As instructed by personal letter of 
 the Secretary of November 9, I have given him copies of my instruc- 
 tions, and advised him of what has transpired here. 
 
 To-morrow, the 8th, a meeting of the diplomatic corps will take place 
 to consider the letter addressed to them by Montero. 
 
 I cannot predict their action, for it is one of the difficulties of this 
 situation that the logic of events seems to have no force, and it is pos- 
 sible that the Chilians may even yet treat with Pi6rola to foment dis- 
 cord, and will be supported in so doing by the French and English 
 ministers. 
 
 I am, sir, &c, 
 
 S. A. HUELBUT. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 581 
 
 [Inolosnre 1 in No. 32 ^Translation.] 
 
 DECREE. 
 
 Nicolas de PiErola, President of the Republic and Protector of the Native Bace. 
 
 Considering: 
 
 1st. That the desertion accomplished by the commanders-in-chief of the army, Col- 
 Jose' de la Torre and Rear-Admiral Lizardo Montero and Brigadier-General An- 
 dres A. Carceres, deprives the government of the means of maintaining the national 
 •defense, precisely at the time in which, having accumulated new elements for war, in 
 concert with our ally, the Republic of Bolivia, we had commenced the plan of opera- 
 tions against the enemy. 
 
 2d. That notwithstanding the manifest will of the people, and of the majority of the 
 revolted forces, and the attitude of those which remain loyal, it would become neces- 
 sary to enter into an armed strife within the country, in the presence of the enemy, 
 thereby-destroying the elements of national defense, which should be preserved at all 
 hazards. 
 
 In conformity with the vote of the ministers of state I resolve : 
 
 Article 1. To discharge myself from the government of the republic, confided to 
 me by its people and confirmed by the national assembly in July last. 
 
 Art. 2. The political officers and commanders of forces who have not been deprived 
 of their authority by the rebellion will surrender up such authority to the military 
 officer commanding the garrison of the Quebrada of Huarochiri (this means General 
 CarcereB). 
 
 The ministers of foreign affairs and of justioe, who also have charge of the other port- 
 folios, are charged with the execution of the present decree, and of its publication 
 and circulation. 
 
 Given in the city of Tarma this 28th day of November, 1881. 
 
 NICOLAS de PIEROLA. 
 
 Aurelio Garcia t Garcia. 
 
 Pedro A. del Olar. 
 
 [Inclosure 2 in No. 32.— Translation.] 
 PROCLAMATION. 
 
 The President of the Republic to the Nation. 
 
 Fellow-citizens : My duty to the country which elevated me to its government in 
 moments of extreme necessity has beon fulfilled without hesitation or rest during two 
 years, in spite of all obstacles and at the cost of all sacrifices. I fulfill this same duty 
 now in separating myself from command and from the country, in the fearful situa- 
 tion created in Peru by the bad elements within her bosom. This same duty imposes 
 silence on me. May Providence save the nation from the abyss opened before-her by 
 her own sons. 
 
 Tarma, November 28, 1881. 
 
 No. 385. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 33.] Legation op the United States, 
 
 Lima, Peru, December 11, 1881. (Beceived January 4, 1882.) 
 Sir : In my last (No. 32) I mentioned the extraordinary conduct of 
 Sir Spencer St. John, the British minister. I have learned since that 
 time that the Chilian Government has acted upon this information, 
 and that they have telegraphed to their several diplomatic agents in 
 America and Europe in accordance with the false and exaggerated 
 information furnished them from that source. I am also informed, 
 though I scarcely believe it, that the English, French, and Italian min- 
 isters here have given like information to their respective governments. 
 
582 AFFAIRS IN CHILI, PEKU, AND BOLIVIA, 
 
 The purpose of all these communications is to give color to the idea of 
 annexation, or at least protectorate, on the part of the United States. 
 
 Stimulated, undoubtedly, by this same information, the Chilian mili- 
 tary authorities of this city made a domiciliary visit to the house of 
 Mr. Calderon, occupied by his wife and family, and instituted a severe 
 but ineffectual search for the alleged treaty. They arrested Mr. Ve- 
 larde, one of Calderon's late ministers, and demanded a literal copy. 
 Mr. Velarde stated that he had no such document in his possession. 
 They then pressed him to ask for a copy from me. He did so, and I 
 answered that if the Chilian commissioners wished anything from me 
 it was their duty to make the request; which, if at all proper; would 
 be at once attended to as coming from the representatives of a friendly 
 nation, but that a copy of public documents could only be had by con- 
 sent of the government at Washington. 
 
 This request they have not yet made. 
 
 Having made up my mind that all this came from the indiscreet and 
 indecent action of Sir Spencer St. John, I addressed him an official 
 note, a copy of which is inclosed, dated December 9, 1881. This note 
 was sent to him at 8.30 a. m. of 10th December, and at 10.30 a. m. he 
 came to my house and we had the interview, a statement of whioh I 
 inclose. 
 
 It appears to me that his excuse, as given by him, is frivolous, and a 
 very weak invention, and, if anything, aggravates his fault. If he had 
 believed the trash he gave out there would have been some excuse, 
 but it is apparent that his sole object was to make mischief and create 
 an ill feeling throughout America and in Europe against the United 
 States. 
 
 It is needless to add that I do not believe a word of his excuse, for 
 I am advised by many gentlemen of good standing, Americans, Ger- 
 mans, and French, that he deliberately induced the impression on their 
 minds that there was foundation for the story. 
 
 It is for you, sir, to determine whether the foreign office in London 
 ought to be informed of this extreme misconduct on the part of this 
 personage. 
 
 I am, &c, 
 
 S. A. HUELBUT. 
 
 flnclosure in 2?o. 33.] 
 
 Mr. Hurlbut to Sir Spencer St. John. 
 
 Legation of the United States, 
 
 Lima, Peru, December 9, 1881. 
 Sir Spencer St. John, 
 
 Minister Resident, Her Britannic Majesty's Legation, Lima : 
 
 My Dear Sir : I have been informed by several gentlemen of good standing that 
 for some time past you have exhibited in places of public resort a supposed version of 
 an assumed treaty between Peru and the United States. It is further stated that 
 although not affirmed by you to be a literal copy, the impression is made that it is sub- 
 stantially accurate. The contents as reported to me are extraordinary aud absurd. 
 Your position gives a certain weight and importance even to extra-official action. 
 
 As you appear to have given publicity to this extravagant version, and as I can 
 easily conceive that such version may, in the present state of affairs, produce compli- 
 cations, I request you to admit the representative of the United States into the confi- 
 dence you have so liberally bestowed upon the public, and to furnish me a copy of the 
 version alluded to. 
 
 I ask this as the representative of my government, so that the information, which it 
 is my duty to forward, may be completely authentic. Personally I attach no sort of 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 583 
 
 importance to the affair, but as there are weak-minded and credulous persons who 
 have been or may be impressed with mistaken notions, I should like the exact truth 
 in place of information at second hand. I truBt I need not say to you that the relations 
 between our respective governments, and I hope between ourselves, have been such 
 that any inquiry from you at this legation would have met with satisfactory reply. 
 I have, &c, 
 
 S. A. HURLBUT. 
 
 Memorandum of interview between Mr. Surlbut and Sir Spencer St. John. 
 
 The above letter was delivered at 8.30 a. m. December 10. At 10.30 of the same day 
 Mr. St. John came to my house, and stated, that he had just received my letter ; that 
 he had shown to several persons a draft of a supposed treaty which he himself had noted 
 down, consisting of six articles; that he had done it as a joke to show the credulity of 
 the Peruvians by embodying in form the rumors current on the streets ; that it was never 
 intended to be serious, and that he had so informed every one to whom he had shown 
 it ; that the propositions were so absurd that he never supposed any one would believe 
 them ; that he had destroyed the paper and consequently could not give me a copy. 
 
 I remarked that practical jokes on such questions at the present time and by one in 
 his position were very dangerous, and that I should inform my government fully in the 
 matter, and also correct from his own statement the stories current in the city, and 
 that I regretted that he did not choose'to give me his statement in writing. 
 
 The above is an accurate statement of the substance of the conversation. 
 
 S. A. HURLBUT. 
 
 No. 386. 
 Mr. Surlbut to Mr. Blaine. 
 
 No. 34.] Legation op the United States, 
 
 Lima, Peru, December 14, 1881. (Received January 4, 1882.) 
 
 Sir : I wrote you in my last (No. 33) by the Italian naval vessel 
 Christopher Columbus specially in regard to the singular conduct of 
 Sir Spencer St. John. 
 
 On the 8th of December, at a meeting of the diplomatic corps, an 
 official copy of Pi6rola's decree of renunciation and proclamation was 
 read. It is the same of which I sent you a translation in my No. 32.. 
 
 Montero, as vice-president, has been promptly recognized in Arequipa, 
 but as yet Carceres has not come out. I hear from him every week, and 
 he promises faithfully; I feel sure that he will do it. 
 
 Montero also sent an official commuuication to the diplomatic body, 
 asking recognition. As yet no joint action has been taken, and I be- 
 lieve that the English and French ministers will not recognize any one 
 until Chili leads the way. 
 
 " Pierola is still in the city. On last Sunday there was an attempt to 
 get up a public meeting in his interest, but the attendance was small 
 and disreputable, and the military authorities dispersed it. 
 
 On the 9th December the Chilian authorities seized the municipalidad, 
 which is the local government of the city and its surroundings, and 
 have taken full charge. 
 
 I do not know their purpose ; it may be evidence of permanent occu- 
 pation or it may be that they want better police. 
 
 General Charles Adams went to sea on Saturday on the United States 
 ship Adams (10th December), and after proceeding 100 miles or so the 
 engine broke down and the ship came back under sail. He was quite 
 at a loss what to do, as it will take a week to repair, and consulted with 
 me. I recommended him to wait for repairs and also for the arrival of 
 Messrs. Trescot and Blaine, from whom he could undoubtedly receive 
 very valuable information, which otherwise would be required to be sent 
 by special messenger. 
 
584 AFFAIES IN CHILI, PEEU, AND BOLIVIA. 
 
 I trust this conduct will be approved, as in fact no time will be lost, 
 and further that Mr. Adams may not suffer pecuniary loss by being un- 
 able to complete his voyage in the time limited. 
 
 I have just heard from Santiago, from a correspondent who is gen- 
 erally well informed, that before his death General Kilpatrick executed 
 and sealed up a document stating that his note to Valmaseda had been 
 extorted from him, when he scarcely had his senses, and was wholly 
 unfit for the transaction of business. 
 
 If this is not true, it is at least probable. 
 
 I have the honor to be, sir, &c, 
 
 S. A. HUELBUT. 
 
 No. 387. 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 35.] Legation of the United States, 
 
 Lima, Peru, December 15, 1881. (Received January 4, 1882.) 
 Sir : After closing my regular mail the streets last night were filled 
 with the following extra, which I have only time to translate : 
 
 [The Comercio of Callao. Bulletin gratis. 1 
 
 THE UNITED STATES AND THE WAR OF THE PACIFIC. — THE CONDUCT OF HURLBUT DIS- 
 APPROVED BY HIS GOVERNMENT. 
 
 To flie Minister Altamirano and Novoa : 
 
 Our minister in Washington advises : 
 
 1st. That Tresoot and Blaine, junior, come to Chili and Pern to study the situation, 
 and to harmonize the American minister without any hostility towards Chili. 
 
 2d. That the protocol subscribed by Hurlbut and Garcia Calderon, by which Peru 
 cedes to the United States the port of Chimbote for a naval and coal station has been 
 disapproved by the Government of the United States, and communication sent to 
 Hurlbut disavowing his agreement. 
 
 3d. That in his message to Congress the President of the United States manifests the 
 attention with which he follows the war of the Pacific. 
 
 That his desire for a peace which may check blood and misery, and the fact that the 
 position of the United States is badly understood in America, and his observation that 
 diplomatic questions have been separately and independently treated (alluding to 
 Hurlbut and Kilpatrick), thereby causing misunderstandings, have induced him to 
 send special ministers, who may harmonize friendly relations. 
 
 This bulletin has flooded the whole of this city and Callao, and as it 
 is distributed gratis it is undoubtedly the work of the authorities. 
 
 Steamers left yesterday evening for the south and to-day for the 
 noEth. 
 
 There is nothing very special in the telegrams when dissected, but I 
 think it a Pierola move. 
 Tours, &c, 
 
 S. A. HURLBUT. 
 
 No. 388. 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 36.] Legation of the United States, 
 
 Lima, Peru, December 17, 1881. (Received January 17, 1882.) 
 Sir : I forward with this another set of papers from Mr. J. R. Ship- 
 herd and my answer. I have tried to stop this gentleman, but in vain. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 585 
 
 I request that his letters may he read carefully, as they are very singu- 
 lar and very audacious, and that they be retained in the department for 
 future use, if need be. 
 I am, &c, 
 
 S. A. HUKLBUT. 
 
 | InulOHuro 1 ill No. 36.] 
 
 Mr. Hurlbut to Mr. Shipherd. 
 
 Lima, December 17, 1881. 
 Jacob R. Shipiierd, Esq., New York : 
 
 Sir: I have tried, as far as I could, to- make you understand that I cannot have, and 
 ought not to have, anything to do with your company or yourself as its agent, or with 
 any other similar. 
 
 Both my general and particular instructions forbid me from taking notice of such 
 matters, unless referred to me by the Department of State. Once more, and for the 
 last time, I repeat this statement. 
 
 I shall return your papers to the Secretary of State, as I have done the others, and 
 definitely close all correspondence with you, unless directed by the Department. 
 Your obedient servant, 
 
 S. A. HURLBUT. 
 
 [Incloaure 2 in No. 36.1 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 The Peruvian Co., 10 Spruce st., 
 
 New York, November 14, 1881. 
 Sir : It occurs to me to advise you of the important fact apropos of your mention of 
 the proposed sale of Theophile Landreau's interest to the Chilians that it is notori- 
 ously charged, and frankly admitted here by all who seem to be well informed in the 
 premises, that both the Landreaus not only long since parted with all their interests 
 in what is known as theLandreau claim, but have ever since unscrupulously continued 
 to offer and to sell to whomsoever would buy additional, and of course purely ideal, 
 shares ad libitum; indeed the sum of my information is that they have in this manner 
 resold the entire claim at least three times. 
 
 It is obvious that if the Chilians should pay in good faith a large sum for a bad title, 
 the present complications, which would seem sufficient, must be gravely increased. I 
 am now engaged with persons who think the original title can be reached and disen- 
 tangled, but this is by no means certain. Of the gross oversale there can be no ques- 
 tion ; nor can it be doubtful that whatever the title the claim must be subordinated 
 •to Cochet's, and can have no value until Coehet's demands shall have first been satis- 
 fied. 
 
 I may safely place these facts at your command, and rely upon your discreet use of 
 them to prevent needless trouble. 
 I am, &c, 
 
 JACOB R. SHIPHERD. 
 
 [Incloaure 3 in No. 36.] 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 The Peruvian Co., 10 Spruce st., 
 
 New York, November 15, 1881. 
 Sir : * * * writes me, " Hurlbut telegraphs that the Chilians have captured 
 Calderon and carried him to Chili." * * * adds, " There must be trouble now. 
 Have * * * do his duty. American influence in America is at an end if Chili can 
 slap our face as flatly as this." 
 We heard also by cable of Montero's acceptance. 
 
586 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 We appreciate the gravity of the new issues, and the new problem which you mast 
 now face. The letters I inclose with this were already written when * * » letter 
 came to hand, and I will not now change them. The need for a protectorate is but 
 increased by all that has happened, and I doubt not Chili will continue to force the 
 issue. Our people hope she will. What we want is our government at the fore, and 
 all winds that blow that way fill our sails. 
 
 I reply to * * * " I totally agree with you as to Chili. She must uncondition- 
 ally return Calderon to executive liberty, or we must all take partners for the 
 dance. I trust Mr. Blaine will plant his flag and his guns right there; and he will, 
 won't he ?" 
 
 I shall consult * * * to-day, and he and I may go to Washington on Thursday. 
 
 We shall do what lies in our power to second all the vigor you have used on the main 
 issue. 
 
 I am, &c, 
 
 JACOB E. SHIPHEED. 
 
 [Inclosure 4 in Ko. 36.] 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 The Peruvian Co., 10 Spruce st., 
 
 New York, November 15,1881. 
 
 Sir : Since my note by the last steamer the question of a definite protectorate has 
 grown in relative importance, and is now being seriously discussed. 
 
 The general sentiment among our people,*as among our advisers — and you will not 
 forget that we include representative men and advisers of all factions and parties, and 
 I may say once for all that no suggestions will be found in this correspondence which 
 have not in the precise form here set down first received the concurring approval of 
 all who advise the executive of this company. I say it is now the general sentiment 
 of our people that there should be a protectorate if the Peruvian Government as such 
 is to be saved. Our information is that the national debilities, of which the more 
 vigorous Chilians have so easily taken advantage, are too deeply seated to be already 
 purged by those adverse fortunes which do sometimes purge a people, and that the 
 factional dissensions of the country present separate problems equally unpromising. 
 
 Assuming that our plans succeed we must inevitably accept the general responsi- 
 bility of maintaining order, and to this end we must seasonably determine a controll- 
 ing policy 
 
 We may, no doubt, arrange with the Chilians for aid, but an American protectorate 
 .seems to promise more satisfactory results, all things considered. 
 
 Upon this general question, however, we shall be glad to receive and carefully to 
 consider your matured advice. 
 
 The more immediate purpose of this note is to suggest that if Mr. Calderon desires 
 direct aid from Washington he shall lose no time in asking for it. 
 
 That he should ask it, and not merely in his executive capacity but under condi- 
 tions which will show clearly that the prayer is the prayer of his people, is an obvious 
 prerequisite to any consideration of the question by the President or by Congress. 
 
 If I were at liberty to use names I might give that of * * * authorized to speak 
 directly for * * * whose suggestion is that Mr. Calderon accredited a special depu-' 
 tation of, say, three of his ablest men to come at once to Washington to present to the 
 President for transmission to Congress — which will be in session when this reaches 
 you — a formal application for a protectorate ; that this deputation have full powers 
 and remain here at the command of Congress until the application shall be finally 
 disposed of. 
 
 The sentiment of our people seems to be unanimous upon such points as these. 
 
 I. The only ground upon which such an application would receive any favor, and, 
 therefore, the only ground upon which the petition should by its own terms rest is that 
 there are now in Peru very large American interests demanding and being clearly enti- 
 tled to American protection, and these may be specified generally as — 
 
 1. The interests of this company. 
 
 2. The interests represented by Mr. W. H. Cilley. 
 
 3. The Landreau claim, concerning which you have already been instructed. 
 
 4. Lesser interests in the aggregate. 
 
 These specifications might well be enforced with reference to the fact that the Monroe 
 doctrine and the more recent and now definitely named " Blaine doctrine " render the 
 intervention of any European power impossible, and there might be a reference in 
 this connection to Captain Eads's American ship-railway project which is to be be- 
 fore Congress this winter, and which * » * tells me he shall now heartily favor 
 and with which I may add we shall probably give hands for future use. 
 
AFFAIES IN CHILI, PERU, AND BOLIVIA. 587 
 
 II. No suggestion would be entertained at Washington, or by our people at large, or 
 would be favored by this company, which looked, however indirectly, to the assump- 
 tion by our government of any pecuniary liability whatever. All the expenses of the 
 
 , protectorate itself must be paid, sooner or later, by Peru, and no proposition for a 
 guarantee of any of Peru's obligations would be considered for a moment ; more than 
 this, an application not expressly excluding all possibilities of this kind would probably 
 defeat itself. The strong hand of the United States as a helping hand will probably be 
 extended if this above is asked for. 
 
 III. The application will only succeed if actively supported by the now very influ- 
 ential voice of this company, and the deputation should be instructed to present only 
 such an application as this company shall, in advance, entirely approve. Upon this 
 point I will go so far as to say that it is the corner-stone of the whole case. 
 
 IV. If any application of this sort is to be attempted you will yourself see that not 
 a moment is to be lost. 
 
 So important a question would be debated for months, and unless introduced very 
 early in the session would probably fail for mere want of time. 
 
 You should advise me by cable the moment a decision is reached. I conld then 
 utilize the weeks intervening the arrival of the commissioners to excellent advantage. 
 
 V. It is not now believed that a protectorate if granted need continue more than 
 a few years. The return of peace under a government absolutely stable would rapidly 
 restore normal conditions, and the development of the comprehensive plans of this 
 company would, at no distant day, establish a condition of things under which foreign 
 aid would cease to be useful. 
 
 It is advised that the application would be almost certainly granted if made in this 
 view, but no proposition for annexation would be considered, and a permanent pro- 
 tectorate would look like annexation under a thin disguise. In a word, temporary aid 
 under the conditions suggested could hardly be refused ; a permanent, or probably 
 permanent, governmental responsibility at so great a distance would probably be 
 declined. 
 
 It will occur to you without suggestion that in any event the more modest the prayer 
 in the first instance the more likely it is to be granted, and that if our government 
 does but once undertake to compose the pending difficulties it may be safely set down 
 that she will not stay her hand until the whole work is thoroughly done, no matter 
 what the cost of success may finally turn out to be ; here, as elsewhere, it is the first 
 step only that costs, and if it is effectual help that Peru wants her supreme wisdom is 
 to make her prayer effectual in the first instance. 
 
 If she will follow strictly the advice I give her, she will be certainly saved. 
 
 I shall at all times value such information and advice as you may think it opportune 
 to supply. 
 
 I am, &c, 
 
 JACOB E. SHIPHERD. 
 
 [Inclosure 5 in No. 36. J 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 The Peruvian Co., 10 Spruce st., 
 
 New York, November 15, 1881. 
 Sir: I decide to say a word to you in exceptional frankness, perhaps, but in a tem- 
 per which I trust will vindicate the utterance. 
 
 I assume that you may, upon all I have already written, and upon the change of 
 administration, not unnaturally query what bearing the course of events is likely to 
 have upon your continuance at Lima. I am, perhaps, better situated than any other 
 individual to throw light upon this question, and deem it perhaps a duty to do so. 
 I therefore remark : 
 
 1. That your failure to call upon me before sailing was most unfortunate. 
 
 In the premises our people deem the omission inexplicable upon any admissible 
 grounds. 
 
 2. Whether, through any fault of yours or not, the impression has had wide currency 
 at Lima and elsewhere that you had substantially identified yourself with the cause 
 represented by the notorious Suarez — a cause which our government had peremptorily 
 and persistently refused to aid, even before it became a rival of American interests. 
 
 3. The notable indifference to our interests and the inexplicable treatment of the 
 inclosures intrusted to you I referred to in my reply to yoers of October 1. 
 
 These circumstances, taken together, had determined our people to demand your un- 
 conditional removal, when your letter of October 1 opportunely arrived. We now, 
 so far as ourselves are concerned, wait further advices. I cannot suppose that you 
 
588 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 should think it strange that we should view the duty of a minister in your circum- 
 stances as we do. But the tide has turned, and you cannot need any announcement 
 to acquaint you with the fact that the new Secretary, who is expected to take office 
 early in December, will he politically in sympathy with those who have the ear of the . 
 President, and who have substantial reasons for seeking your removal. 
 
 If you shall henceforth support American interests (which alone you are commis- 
 sioned and paid to promote) as heartily as you have so far supported Peruvian and 
 Calderonian interests, you may be sure that we shall not ask your removal, and on the 
 contrary, as at present advised, we shall definitely favor your continuance; but if you 
 are to champion all other interests before ours we shall certainly call for a change, and 
 we have the most substantial reasons for believing that such a call will be affirmatively 
 answered whenever made. 
 
 Upon the whole record what I so frankly say need not be misconstrued. It is pure 
 frankness and nothing else. As I have constantly said we expect only of you the atti- 
 tude and the services which in our judgment are compelled by the very nature of the 
 office you hold. That attitude and those services will meet not only all our needs, but 
 our utmost wishes. If you stand for us at the front as your chief stands for us at 
 Washington, you will certainly not be liable to criticism for too much zeal, and still 
 you will do all we ever desired you to do. 
 
 So far you have fallen infinitely below that level, and if I were less frank in saying 
 so I should be less sincerely your friend. 
 I am, & c, 
 
 JACOB R. SHD7HERD. 
 
 rinclosnre 6 in No. 36.1 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 The Peruvian Co., 10 Sprcue st., 
 
 New York, November 16, 1881. 
 Sir : I inclose with this, apropos of a suggestion heretofore made, a copy of * * * 
 brief upon the precedents for a direct treaty between the Government of Peru and 
 the Government of the United States, to cover the essential rights and interests of 
 this company, and as a foundation upon which both Peru and this company may 
 safely ground the proposed agreement between themselves. 
 
 * * * concurs in * * * view in a careful memorandum from which I quote : 
 "I anticipate that the Secretary of State will, without serious debate, admit the 
 
 following propositions as resting upon constitutional usage from the foundation of 
 the government, viz : 
 
 " 1. That the President may negotiate treaties through an agent or representative 
 whose designation or appointment has not been submitted to the Senate. 
 
 " 2. That the government may, in its discretion, make reclamation of other govern- 
 ments in behalf of its own citizens who have suffered injuries, or in any way have 
 been deprived of their rights. 
 
 " 3. That all treaties, however negotiated, are only valid and binding upon this gov- 
 ernment when duly ratified by the Senate. The first two of these positions are well 
 established by the authorities cited in the brief, and the third will not be disputed." 
 
 * * * also substantially concurs. The suggestion has not been formally sub- 
 mitted to other counsel. 
 
 If these views are sound such a treaty might be negotiated at Washington by an 
 accredited minister or commissioner on the part of Peru and such special commissioner 
 as the Secretary of State should designate ; or it might be negotiated at Lima by the 
 American minister and such special commissioner as the President of Peru should 
 designate. 
 
 It is also apparent that this treaty might conceivably deal with some phases and 
 possibly even with the essence of the suggested protectorate. 
 
 I shall be glad to consider such suggestions as occur to you in this connection. 
 I am, &c, 
 
 JACOB R. SHIPHERD. 
 
 In the matter of the claims against Peru owned by the Peruvian Company. 
 
 It is agreed that it is very desirable to have a treaty made with Peru without the 
 interference of Chili, for the reason that the latter government would, first, if possible, 
 supplant the present Government of Peru by the " bandit mountaineer," or some other 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 589 
 
 military chieftain, upon condition that he should defeat the treaty ; and, seoond, would 
 seek to stir up other governments ; and, third, would appear in our own Senate for such 
 purpose. Can such a treaty be made ? 
 
 First. By article 2, section 2, of the Constitution, the President has the power, by 
 and with the advice and consent of the Senate, to make treaties. Is such consent a 
 prerequisite ? Nearly three hundred treaties answer to the contrary, and the Consti- 
 tution makes it no more a prerequisite as to treaties than as to officers. 
 
 Jn some instances the persons representing the Government have been selected by 
 and with the advice and consent of the Senate, notably as to the treaties made with 
 Great Britain, after the adoption of our Constitution and the war of 1812 ; two trea- 
 ties with Franoe, which involved claims, and one with Spain, but an overwhelming 
 preponderance of treaties have been -negotiated by persons appointed by the President 
 without any referenoe to the Senate, until presented for approval. These persons have 
 been sometimes ministers plenipotentiary, sometimes ministers resident, then charge" 
 d'affaires, consuls, and special agents or commissioners, and sometimes by the agent of 
 the plenipotentiary, as in the treat.y with Algiers, concluded September 5, 1795, rati- 
 fied March 2, 1796, and as in the treaty with Tripoli, concluded November 4, 1796. 
 
 Second. Is it the duty and has it been the practice of the United States Government 
 to conclude treaties relating to private claims ? 
 
 The first treaty in regard to private claims was concluded November 19, 1794, rati- 
 fied October 28, 1795, and was with Great Britain. By article 6 of such treaty com- 
 pensation is provided for debts due to British creditors ; by article 7, for losses " by 
 divers merchants and others, citizens of the United States, by reason of irregular or 
 illegal captures." 
 
 The treaty with France, concluded September 30, 1800, ratified July 31, 1801, by its 
 fifth article provides for the payment of debts "by the individuals of one with the 
 individuals of the other" nation. 
 
 On the 11th of August, 1802, a treaty was concluded with Spain, ratified January 9, 
 1804, by the third article of whioh all claims made by citizens of the United States may 
 be presented to certain commissioners. 
 
 Charles Pinkney negotiated this treaty for the United States. 
 
 On the 30th. of April, 1803, a treaty with France was concluded, by the first article 
 of which certain debts due by France to citizens of the United States were provided for 
 
 The representatives of the United States were appointed by and with the advice of 
 the Senate. 
 
 On the 22d of February, 1819, a treaty was made with Spain by which Florida was ac- 
 quired, and the United Slates assumed to pay five millions of dollars of debts due from 
 Spain to citizens of the United States. (See article 11). 
 
 This treaty was ratified February 22, 1821 , negotiated for the United States by the 
 Secretary of State. 
 
 On November 13, 1826, a treaty was concluded with Great Britain, ratified February 
 6, 1817, by the first article of which twelve hundred and four thousand nine hundred 
 and sixty dollars is to be paid to the United States for the use of the persons entitled. 
 This ti^aty was negotiated for the United States by Albert Gallatin. 
 
 On the 28th of March, 1830, a treaty was made with Denmark, ratified June 5, 1830, 
 by which that government agreed to pay six hundred and fifty thousand dollars on ac- 
 count of the citizens of the United States. This treaty was negotiated on the part of 
 the United States by Henry Wheaton, charge" d'affaires. 
 
 On July 4, 1831, a treaty was made with France, ratified February 2, 1831, by the 
 second article of which twenty-five millions of francs were to be paid to the United 
 States to satisfy claims of its citizens (see article 1). William C. Rives acted for the 
 United States. 
 
 On the 14th of October, 1832, a treaty was made with the Two Sicily, by which two 
 millions one hundred and fifteen thousand ducats were to be paid to the United States 
 to be distributed among certain claimants, less seven thousand six hundred and seven- 
 ty-nine ducats, to be retained by the United States for certain expenses. This treaty 
 was negotiated for the United States by John Nelson, charge" d'affaires, and was ratified 
 June 8, 1833. 
 
 On the 17th day of February, 1834, a treaty was made with Spain, ratified August 14, 
 1834, Cornelius P. Van Ness, envoy extraordinary, actiDgfor the United States, by which 
 twelve millions of reals were paid to the United States in satisfaction of all claims. 
 
 On the 11th day of April, 1838, a treaty was made with Texas, ratified July 6, 1838, 
 concluded by the chargl d'affaires of the United States, by which the sum of eleven 
 thousand seven hundred and fifty dollars was to be paid to the United States, to be 
 distributed among certain claimants, American citizens. 
 
 On the 11th day of April, 1839, a treaty was made with Mexico, John Forsyth, Sec- 
 retary of State, acting for the United States, ratified April 7, 1840, by which claims of 
 citizens of the United States were referred to four commissioners, two to be appointed 
 by the United States, two by Mexico ; the King of Prussia to act as umpire, for any 
 
590 AFFAIRS IN CHILI, PEEU, AND BOLrVIA 
 
 sum of money found due citizens of the United States. Treasury notes were to be 
 issued. 
 
 On the 30th of January, 1843, a further treaty was made on the same subject, rati- 
 fied March 29, 1843, Waddy Thompson, envoy extraordinary, acting for the United 
 States. 
 
 On the 17th of March, 1841, a treaty was made with Peru, James O. Pickett, charge 
 d'affaires, acting for the United States, by which three hundred thousand dollars were 
 to be paid to the United States for claims of its citizens, proclaimed February 21, 1844. 
 
 On the 27th day of January, 1849, a treaty was made with Brazil, David Todd, en- 
 voy extraordinary, acting for the United States, ratified January 18, 1850. by which 
 five hundred and thirty thousand milrais were to be paid to the United States for 
 the claims of its citizens. (Articles 1 and 2.) 
 
 On tlfe 26th day of February, 1851, a treaty was made with Portugal, ratified June 
 23, 1851, Daniel Webster, Secretary of State, acting for the United States, by which 
 certain claims presented by the United States on behalf of the officers and crew of a 
 privateer should be referred to some sovereign of a friendly nation. 
 
 On the 8th day of February, 1853, a treaty was made with Great Britain, Joseph 
 Reading Bissell, envoy extraordinay, acting for the United States, ratified July 26, 
 1853, by which it was agreed that all claims on the part of corporations, companies, or 
 private individuals, citizens of the United States, upon the government of Her Bri- 
 tannic Majesty, presented since the treaty of Ghent, should be referred to certain com- 
 missioners. 
 
 On the 10th of September, 1857, a treaty was made with New Granada, ratified No- 
 vember 8, 1860, Lewis Cass, Secretary of State, acting for the United States ; a board of 
 commissioners was organized to adjust the claims of the citizens of the United States 
 against New Granada. 
 
 On the 8th day of November, 1858, a treaty was made with China, William B. Eeid, 
 envoy extraordinay, acting for the United States, by which five hundred thousand taels 
 were to be paid for the satisfaction of claims of American citizens. 
 
 On the 10th of November, 1858, a treaty was made with Chili, ratified October 15, 
 1859, John Bigler, envoy extraordinary, acting for the United States, by which it was 
 referred to the King of Belgium to arbitrate claims made by citizens of the United 
 States for silver taken in bars by the vice-admiral of the Chilian squadron. 
 
 On the 14th of January, 1859, S, treaty was made with Venezuela, Edwin A. Turpin, 
 minister resident, acting for the United States, ratified February 26, 1861, by which the 
 former government agreed to pay certain citizens of the United States on account of 
 being evicted from the Aves Island the sum of one hundred and thirty thousand 
 dollars. 
 
 On the 4th day of February, 1859, a treaty was made with Paraguay, ratified March 
 7, 1860, by which the claims of the United States i>nd Paraguay Navigation Com- 
 pany, a company composed of citizens of the United States, were referred to a com- 
 missioner, James B. Bowlin, special commissioner, acting for the United States. 
 
 On the 2d day of July, 1860, a treaty was made with Costa Rica, ratified November 
 9, 1861, by which all claims of citizens of the United States for injuries to persons or 
 damages to property were referred to a commissioner, Alexander Dimitry, minister 
 resident, acting for the United States. 
 
 On the 25th of November, 1862, a treaty was concluded with Ecuador, ratified July 
 27, 1864, United States represented by its minister resident, by which " all claims on 
 the part of corporations, companies, or individuals, citizens of the United States, upon 
 the Government of Ecuador," were referred to a commissioner. 
 
 On the 20th of December, 1862, a treaty was made with the Government of Peru, 
 ratified April 21, 1863, by which claims of the owners of vessels, citizens of the United 
 States, were referred to a commission, the envoy extraordinary representing the 
 United States. 
 
 On the 12th of January, 1863, a treaty was made between the same governments, 
 ratified April 18, 1863, by which " all claims of citizens of the United States against the 
 Government of Peru" were referred to a mixed commission, same envoy acting for the 
 United States. 
 
 On the 10th day of January. 1864, a treaty was made with Columbia, ratified August 
 19, 1865, extending a commission, proclaimed the 8th of November, 1860, the Secretary 
 of State acting for the United States. 
 
 On the 22d of October, 1864, a treaty was made with Japan, proclaimed April 9, 
 
 1866, by which there was to be paid three millions of dollars to four powers, the United 
 States being one, " to include all claims of whatever nature," the minister resident 
 representing the United States. 
 
 On the 25th of April, 1866, a treaty was concluded with Venezuela, ratified April 17, 
 
 1867, by which "all claims on the part of corporations, companies, or individuals, 
 citizens of the United States, and the Government of Venezuela," which had been pre- 
 sented, were referred to a mixed commission. 
 
 On the 4th of July, 1868, a treaty was made with Mexico, by which claims for inju- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 591 
 
 ries to persons and property by " corporations, companies, or private individuals, citi- 
 zens of the United States and the Government of the Mexican Republic," should be 
 referred to commissioners, two to be seleoted by each government, providing for an 
 umpire, ratified February 1, 1869, United States acting by its Secretary of State. 
 
 On the 4th day of December, 1868, a treaty was made with Peru, ratified June 4, 
 1869, referring claims of oitizens of the United States to commissioners, the same as 
 in the last recited treaty. 
 
 On the 12th of February, 1871, a treaty was made with Spain, Daniel E. Sickles, en- 
 voy, acting for the United States, by which " the settlement of the claims of citizens of 
 the United States or of their heirs against the Government of Spain," for inj uries to 
 persons or property, should be referred to arbitrators and an umpire. 
 
 On the 8th of May, 1871, a treaty was made with Great Britain, ratified June 17, 
 1871, by which the Alabama claims were referred to arbitration. The United States 
 finally waived all government claims and recovered only for claims to be distributed 
 to individuals. 
 
 On the 27th of November, 1872 a treaty was made with Mexico, ratified March 17, 
 1873, by which a commission was continued to consider certain claims of citizens of 
 the United States. 
 
 I am not unmindful of the criticism of Senator Sumner on the Clarendon-Johnson 
 treaty, nor of the principles contended for Jin the discussion on the " Treaty of Wash- 
 ington, relating to the Alabama claims," but a treaty can be framed fully protecting 
 the Peruvian company in harmony with such principles. 
 
 Of Counsel. 
 October 1, 1881. 
 
 No. 389. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 37.] Legation of the "United States, 
 
 Lima, Peru, December 22, 1881. (Received January 17, 1882.) 
 
 Sir : Tour dispatches Nos. 17, 18, and 19, have been received. 
 
 My dispatch No. 20 was of the date of October 12, 1881. 
 
 I have read the last dispatches, Nos. 17, 18, and 19, with great care, 
 and regret that iu the last you have thought proper to disapprove cer- 
 tain portions of my letter to Garcia y Garcia, and the Lynch memo- 
 randum. 
 
 As to the latter I think that upon reading it again you will find that 
 it does contain the very idea, if not the phrase, to the absence of which 
 you except. It has certainly been so understood by the numerous 
 papers in America and in Europe which have published and commented 
 on it. I am aware that it is exceedingly difficult to bring the peculiari- 
 ties of this people and the existing condition of affairs fairly before the 
 understanding of the American people, or even of the Department. 
 Permit me briefly to sum up the situation, not at all in the way of argu- 
 ment or of self justification, but as a key to the springs of my action. 
 
 The United States had recognized the constitutional government pre- 
 sided over by Oalderon. 
 
 There was a clear understanding with Chili that they too would 
 aid in the establishment of this form af government. It was weak and 
 powerless, wholly within the Chilian military lines, unpopular because 
 believed to be the creature of Chili. 
 
 The Pierola dictatorship, child of crime and bloody revolution, held 
 everything outside of the Chilian lines, and was believed to represent 
 the sentiment of national independence. 
 
 I availed myself of the letter to Garcia y Garcia (which was not offi- 
 cial) to strike this tyranny a hard blow. I admit that it was an impru- 
 dence to use the name of the United States at all in that letter. But 
 that letter demolished the Pierola dynasty and united the rest of the 
 country on Calderon, thus throwing the moral weight of the United 
 
592 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 States in favor of the orderly regime of constitutional law, and against 
 violent revolutions culminating in despotism. 
 
 This effect, so produced, unmasked the Chilian pretenses, and demon- 
 strated their bad faith toward the United States, for the moment the 
 Calderon government became strong, that moment they stamped it out 
 of existence by military force. * 
 
 The capture of Calderon, under the circumstances, is very nearly an 
 insult offered to the United States. If you choose to look over the 
 whole series of my dispatches from the very first you will find expressed 
 the clear conviction that there is no possibility of peace on any endura- 
 ble terms by the action of Peru alone. 
 
 You will further observe that the United States have forbidden the 
 application for aid to any European power. 
 
 Given these two principles of its action, and the result is inevitable, 
 that in its extremity this nation must look to the United States alone. 
 I have also tried to show that the dignity of the United States and its 
 legitimate influence demanded a temperate but firm operation of cer- 
 tain great principles of international law which apply and ought to ap- 
 ply to such cases on this continent, and which have been officially rec- 
 ognized by Chili in the beginning of this war. To the repeated state- 
 ments, so made by me to the Department, in all of which I asked speedy 
 answer, Ihavereceived none until the dispatchFo.l9,excepttelegraphic 
 instructions to continue to support the Calderon government, which in- 
 structions I considered tacitly approved. 
 
 This, of course, is due in large measure to the lamentable events of 
 the past summer and fall, to the long and desperate illness of President 
 Garfield, and to the changes incident to the succession of President Ar- 
 thur. My work in this country has been done in absolute good faith, 
 and with the single purpose of advancing andmaintaining the influence 
 of the United States. ' It has been accomplished thoroughly. 
 
 The questions now to be handled are not with Peru, but with Chili, 
 and are consequently to be treated by other persons and in a different 
 form. 
 
 But the ground is thoroughly prepared for any action which the 
 United States may think proper to take and to any extent they may 
 think proper to go. 
 
 In the future I become, in the natural course of events, a very insig- 
 nificant factor, as it appears to me that I have nothing to do but to 
 keep Peru from splitting again into fragments and parties. 
 
 For weeks the Chilian papers in this city, published under official in- 
 spection, have been filled with very vile matter against the United 
 States and against me personally, of which I can take no notice. 
 
 The leading papers in Chili are now full of articles against the ambi- 
 tion of the United States, their purpose of aggrandizement, and the 
 dangers therefrom to the Spanish American States. 
 
 The commission to Chili will not have an easy time by any means, 
 and it will require tact, patience, and above all firmness and nerve to 
 meet the case. I have studied these people closely, and they must be 
 met with perfect decision. 
 
 I notice in your No. 19 that you disapprove of a # supposed telegram 
 sent by me to Buenos Ayres. The fact is this : I sent to General Kil- 
 patrick a letter inclosing this telegram, to be forwarded to Osborn, our 
 minister : 
 
 Osborn, Minister: 
 Argentine minister needed here. Inform government. 
 
 HURLBUT. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 593 
 
 This telegram, the Chilian papers say, was submitted by Kilpatriok to 
 the Chilian ministry before sending it. He himself accompanied it with 
 another, dissuading Osborn from doing so. I felt the need of an Argen- 
 tine minister, and sent the telegram. I submit to your decision as to the 
 impropriety of the movement. I am i nformed that Mr. Uruburie, Argen- 
 tine envoy to Chili and Peru, is hourly expected in Santiago. I should 
 not have written this very long communication except to meet the case 
 of a very probable change in the Department (already announced by 
 Chilian telegrams), and so that the incoming Secretary might find a. re- 
 sume of my views and actions in a convenient and compact form. 
 I have, &c, 
 
 S. A. HURLBUT. 
 
 No. 390. 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 38.] Legation of the United States, 
 
 Lima, Peru, December 22, 1881. (Received January 17, 1882.) 
 Sir: Vice-President Montero has appointed two gentlemen in Lima, 
 Mr. Elias and Mr. Candanio, as his special confidential representatives to 
 the diplomatic corps, which fact renders intercourse more easy, while 
 Montero is still in the interior, and this legation at Lima. 
 I am sir, &c, 
 
 S. A. HURLBUT. 
 
 No. 391. 
 Mr. Hurlbut to Mr Blaine. 
 
 No. 39.] Legation 'of the United States, 
 
 Lima, Peru, December 28, 1881. (Received January 17, 1882.) 
 
 Sir : Messrs. Trescot and Blaine arrived at Callao on the 22d instant, 
 came to Lima on the 23d, and left for Chili on the 2oth. 
 
 They saw many people here. I had the honor of a brief conference 
 with Mr. Trescot; I informed him that, in my opinion, the immediate 
 release of Garcia Galderon should be demanded, and I have the honor 
 to repeat that opinion to you. 
 
 There is no decent justification for the act, and it was meant more 
 as a blow at the United States than for Peru. If I were charged With 
 the question, I should make it a peremptory condition ; as I am not, I 
 can only give my views of what is due to the honor of my country. 
 
 I send to the Department three communications lately received from 
 Mr. J. R. Shipherd, which will bear reading. I also send the envelopes, 
 from which the Chilians easily see that this person is in correspondence 
 with this legation. 
 
 This man is doing infinite mischief. His prospectus and other papers 
 now fill the papers in Chili and are followed by editorials extremely 
 abusive, not only of Mr. Calderon and the United States minister in 
 Lima, who are falsely charged to be in conspiracy in this affair, but 
 also as to the United' States. A very distinct official notice of the true 
 attitude of this legation and of the Department ought at once to be 
 given to Chili. 
 
 S. Ex. 79 38 
 
594 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I 
 
 I also forward with this, a letter which I am informed is an auto- 
 graph communication from Vice-President Montero. 
 I have, &c, 
 
 S. A. HUELBUT. 
 
 [Inclosnre 1 in No. 39.J 
 Mr. Shiplierd to Mr. Hurlbut. 
 [The Peruvian Company, 10 Spruce Btreet, Sew York. Post-office box 3448. J 
 
 November 26, 1681. 
 
 Sir : Yours of October 26 is at hand, and your suggestions have attention. 
 
 The capture and extradition of Calderon and his minister since you wrote have 
 changed the apparent issues greatly, and for the moment we wait further develop- 
 ments. 
 
 The drift of events as a whole tend, as I now think, toward a change of the base of 
 negotiations from Lima to Washington. Thus : 
 
 1. Peru's only hope lies in the United States and in this company. 
 
 2. If the United States and this company undertake to help her, they will dictatei 
 the terms of settlement alike to Peru and to Chili, and this they can better do at Wash- 
 ington than at Lima. 
 
 3. These terms will probably imply a protectorate, and a protectorate can- only be 
 created by the Senate, through a treaty, or by Congress, or by both. As I have already 
 written you, this protectorate should be instantly asked for by accredited deputies sent 
 from Lima to Washington. 
 
 4. Within the last thirty days a Chilian functionary of the highest rank made this 
 declaration : 
 
 " By far the most dangerous element in the whole situation is the claim of the Pe- 
 ruvian Company. I have carefully and repeatedly examined their papers, and I don't 
 for the life of me see how we are going to get round that claim. It gives me more 
 anxiety than any possible action of the United States Government apart from it. 
 The Peruvians will of course admit the claiin, and then the United States Executive 
 is bound to back it up, and what answer can we make ? It troubles me more than I 
 can describe." 
 
 5. I know that the Chilian minister at Washington has practically determined to 
 seek a conference with me at an early date ; on my part I am about to take a step which 
 will make it easy for him to do so ; the moment he and I arrive at an understanding 
 all the rest will be easy. Be assured I shall assume Peru's concurrence at the outset, 
 but only until she has a fair opportunity to speak for herself. The first moment she 
 can speak, she must speak, or I shall drop her out of the account. 
 
 6. I am semi-officially advised that the Chilians have demanded your removal, aDd 
 have been denied ; and I know that by the next steamer Senor Martinez will (unless 
 he changes his present deteraanatioh) ask for power to treat -with Mr. Blaine and the 
 president of the Peruvian Company direct. 
 
 7. Mr. Martinez is working night and day to secure utterances of the press here 
 favorable to the Chilian course, and not without some success; he regards this the 
 battle-ground yet to be won. 
 
 I cannot too strongly assure you that the interests of Peru at Washington are in 
 wretchedly incompetent hands, and such an appointment as I suggested (Mr. Tracey) 
 or far better a direct deputation asking a protectorate, is of the utmost importance. 
 In any event "" * * and * * * who think of nothing but the impossible soctfte 
 contract, cannot too soon be abolished altogether. I say this only in the interest of 
 Peru ; this company has not the slightest ill-will toward either ; indeed, it will gladly 
 show them any personal courtesy or kindness in its power. I told * * * months 
 ago, also, that our plans were liberal enough to take in the soctfU itself on a fair basis, 
 our motto being, " Live and let live" on all sides; but he makes no response. 
 
 As soon as your letter came I sent a copy to * * * through * * * No ex- 
 pense will embarrass us ; no problem will discourage us. You are very safe in your, 
 assumption on this point ; but we have, for fundamental reasons, asked little direct 
 aid from the government as yet. 
 
 After Mr. Blaine had formally advised me of the filing of our demands and the 
 proofs of their service, I did suggest that he might forward copied to the minister at 
 Lima and at Santiago, to be presented by the minister with the remark that the com- 
 pany was known to the Department to be composed of reputable gentlemen whose 
 representations were entitled to entire respect ; but he seemed to think such an 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 595 
 
 instruction unnecessary, remarking that it was, of course, the business of min- 
 isters to afford always their unofficial good offices, &c. I frankly think the in- 
 struction should be sent, but relying as I now do upon your entire good-will, and ex- 
 peoting nothing from Santiago, I do not press the point. 
 
 Not a little criticism of your course has appeared in print, but the unfortunate let- 
 ter to Pierola's secretary is chiefly chargeable with it. That letter, however true, was 
 unnecessary and impolitic. We are all compelled to admit so much. But your mem- 
 orandum to Admiral Lynch, the secretary and I stoutly defend, and will defend, and 
 I shall take the necessary measures to antidote Mr. Martinez's negotiations with the 
 press. 
 
 I was in Washington again last week, and had a full talk with * * * at 
 
 * * * suggestion, and upon his introduction. My chief point was that the Execu- 
 tive might avoid a discussion of the abstract question of intervention by substituting 
 the not-debatable question whether it is not bound to take such charge of the situa- 
 tion as may be necessary to the protection of American property interests in Peru. 
 Mr. Cilley was with me. We have practically united interests, and we two stood at 
 the interview for $1,500,000,000 of American property. While properly reticent, 
 
 * * * was evidently impressed with the suggestion, and * * * and others who 
 have his ear, will follow it up. 
 
 The situation at the moment of this writing seems to be this : 
 
 1. The United States must see to it that Peru has an authorized executive, and that 
 he is left perfectly free to treat with the United States and with this company. 
 
 2. Such executive, if he is wise, will use his first moment of liberty in admitting our 
 , claim unconditionally, and his next in basing on it and on Mr. Cilley's large interests 
 
 direct application for an American protectorate. Leave the rest to this company, and 
 you will not be disappointed. 
 
 I am, sir, your obedient servant, 
 
 JACOB R. SHIPHERD. 
 Hon. S. A. Hurlbut, Lima. • 
 
 [IncloBure 2 in STo. 39.] 
 
 Mr. Shi/pherd to Mr. Hurlbut. 
 
 [The Peruvian Company, 10 Spruce street, New York. Post-office box 3448.] 
 
 November 29, 1881. 
 
 My Dear Sir : Yesterday I heard through a mutual friend from * " He as- 
 
 sures us in gratifying terms of your fidelity to Peru and of your readiness to promote 
 our places, so far as they shall be found well founded and practicable, but gives as a 
 first impression the opinion that neither Landreau nor Cochet has any rights. 
 
 His correspondent, who thoroughly knows Peru and the Peruvians, expresses no sur- 
 prise and abates nothing from his confident original opinion, either as to merits or as 
 to the outcome. If the Peruvians ever had a moral sense it must have been in a pre- 
 existent state ; they have never known it in Peru. As I have heretofore suggested, 
 we have never expected them to be just ; we expect them now only to look out for 
 themselves. Certainly the facts are ample to warrant the executive in so construing 
 them as to make a way out for Peru ; it contents us that he should discuss it in no 
 other light. 
 
 If in such premises even there is not mind enough left to perceive either what is 
 due to equity or wise in the emergency, then indeed are the Chilians wholly right. 
 Peru is rotten to the core and has a right only to sepulture. 
 
 I trust by the time this reaches you Calderon will be near you again ; if not, then 
 Montero must take the helm. The press is now saying a great deal and largely on the 
 Chilian side. Even the Tribune denounces intervention ; in the abstract only these 
 American rights can give the necessary reason to satisfy our public, and it would seem 
 indeed incredible that Peru should miss such an opportunity. 
 
 We can easily deal with Chili, and you may assise Peru that we Bhall not wait on 
 her long. 
 
 So long as you stand with us we will stand faithfully for you. You have deserved 
 and have won Peruvian confidence ; you have made Chili an enemy ; we deal only 
 with the facts; you may rely on our whereabouts with mathematical certainty. 
 Very truly, yours, 
 
 JACOB R. SHIPHERD. 
 
596 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 No. 392. 
 
 Mr. Elmore to Jfr Frelinghuysen. 
 
 Legation of Peru, 
 Washington, January 23, 1882. (Received January 23.) 
 
 Sir : Most of the public prints of the 18th instant, published a cable 
 dispatch from Buenos Ayres, dated 17tb January, announcing the con- 
 clusion of a treaty of peace between Bolivia and Chili, " the conditions, 
 being that Bolivia shall surrender her territory along the coast and 
 break off her relations with Peru." 
 
 When I read the news, I firmly believed the report false, although it 
 is known that from the beginning of the war, Chili has been trying to 
 obtain that result, it being Seiior Santa Maria himself (now President 
 of Chili), who, early in 187!), made his best efforts, unsuccessfully, to 
 persuade President Daza, of Bolivia, to break off her alliance with Peru, 
 offering Bolivia apiece, of the Peruvian coast in exchange for betraying 
 her ally. 
 
 Wishing to know the truth in regard to so grave a report, I at once 
 telegraphed to Sefior Rosas, the Peruvian minister in Paris to make the 
 proper inquiries by cable on the subject, and on Saturday night, the 
 21st instant, he communicated to me the reply, dated Lima, 19th Jan- 
 uary, stating that the alliance between Peru and Bolivia continues. 
 
 I had also previously received mail advices from Peru, informing me 
 that the Government of Bolivia (as also that of Ecuador) had recognized 
 the constitutional government of Seiior Calderon, now represented by 
 the Vice-President Montero, who was appointed by Congress, and who 
 is now acting President. 
 
 I have the honor to communicate the above facts to your excellency, 
 and to renew, &c, 
 
 J. F. ELMORE. 
 
 4.-FRANCE. 
 
 ' ~No. 393. 
 
 Mr. Morton to Mr. Blaine. 
 
 Ko. 6.] Legation of the United States, 
 
 Paris, August 11, 1881. (Received August 24.) 
 Sir: The attitude and correspondent relations of France, England, 
 and the United States, with the South American States, Chili and Peru, 
 since the late termination of hostilities was the subject of a private in- 
 terview which I had the honor to have yesterday afternoon, at the 
 palace of the Elysees, with President Grevy. The meeting was urt- 
 official and sought by his excellency for a mutual exchange of thoughts 
 on a subject which appeared to have received his careful study. In 
 the conversation which ensued, his excellency alluded to the two abor- 
 tive attempts on the part of the governments of France and England 
 towards affecting some practical agreement between these two South 
 American states. He referred in a general way to the desirability of 
 establishing between our respective governments the basis of a mutual 
 understanding in regard to the policy which might be jointly adopted 
 by us both towards securing an early return of order and stabilitv in the 
 
597 
 
 affairs of Chili and Peru, as far as comports with our national traditions 
 and usages in the management of public affairs with foreign states. He 
 spoke of the many unsatisfied claims of French subjects on the Peru- 
 vian Government, and expressed his strong disapproval of the extrava- 
 gant demands made by the Chilian Government and conditions of peace 
 which, if literally enforced, he apprehended would achieve the perma- 
 nent enfeeblement, perhaps annihilation of the Peruvian states. In using 
 this language, his excellency indeed acknowledged the right of Chili as 
 a conquering power, to certain indemnities and privileges to be em- 
 bodied in the final treaty of peace, &c, but which he thought required 
 particular modification, and he was of the opinion that another attempt 
 at mediation, on the part of foreign governments, and especially of the 
 United States, was requisite for the purpose of reaching a satisfactory 
 solution of the present state of chaos and disorder, which now there 
 obtains. 
 
 In my reply I said I had received from m y government, as y et, n o in struc- 
 tions or intimation in regard to the course it might pursue towards these 
 South American states. I felt, however, his own views, as expressed to 
 me, would, if presented, receive the most favorable consideration. I con- 
 tinued to say, my government, I believed, had already striven, but with- 
 out success, to interpose, as the equal friend between Chili and Peru, 
 with a view to a reconciliation, and I had no doubt that, as suggested by 
 President GreVy, a third attempt at mediation on our part would be ven- 
 tured. And I concurred with his excellency in the hope the heavy de- 
 mands of Chili might possibly be modified, as I also felt that, if executed, 
 they must limit, if not extinguish, in that State, the future development 
 of private enterprise, as well as the employment of foreign capital, by 
 which alone its natural resources could receive extension. At the close 
 of this interview his excellency requested the informal transmission to 
 you of the substance of his remarks, which I have the honor herewith 
 to do, and I take pleasure to add that I regard this meeting with Presi- 
 dent Gre>y as a renewed instance of the cordial relations now so hap- 
 pily existing between our two republican governments. 
 I have the honor, &c, 
 
 L. P. MORTON. 
 
 No. 394. 
 
 Mr. Blaine to Mr. Morton. 
 
 No. 30.] Department of State, 
 
 Washington, September 5, 1881. 
 
 Sir : I have to acknowledge the reception of your dispatch, jSTo. 6, of 
 date August 11, 1881, giving an account of your interview on the day 
 previous with the President of the republic in regard to the attitude 
 and correspondent relations of France, Great Britain, and the United 
 States with the South American states, Chili and Peru. 
 
 The remarks made and the suggestions offered by President Grevy 
 concerning the situation of affairs in Peru have received that careful 
 and respectful consideration due to the utterances of so eminent a 
 statesman and the Chief Magistrate of France. I hasten to say that 
 this government agrees with him in profoundly deploring the disorders 
 and -sufferings that have already fallen upon, and the others that con- 
 tinue to impend over the people of Peru, and fully shares the humane 
 
598 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 and enlightened sentiments which have inspired in him a personal in- 
 terest in that unfortunate struggle, and have induced him to suggest 
 a concerted effort by France, Great Britain, and the United States to 
 bring the conflict to an end. 
 
 Such interventions are frequent in European diplomatic history, and 
 have been sometimes followed by beneficial results in preserving, the 
 equilibrium of the powers. But the United States has not belonged to 
 that system of states, of which France and Great Britain are such im- 
 portant inembers,*and has never participated in the adjustment of their 
 contentions. Neither interest nor inclination leads this country to wish 
 to have a voice in the discussion of those questions ; but our relations to 
 the states of the American continent are widely different, and the sit- 
 uation is so nearly reversed, that this government, while appreciating 
 the high and disinterested motive that inspired the suggestion, is con- 
 strained to gravely doubt the expediency of uniting with European pow- 
 ers to intervene, either by material pressure or by moral or political in- 
 fluence, in the affairs of American states. These republics are younger 
 sisters of this government. Their proximity of situation, similarity in 
 origin and frame of government, unity of political interest on all ques- 
 tions of foreign intercourse, and their geographical remoteness from 
 Europe have naturally given to American states close and especial re- 
 lations to each other, and in the course of time removed them further 
 from the European system. 
 
 The interests, commercial and political, of the United States, on this 
 continent, transcend in extent and importance those of any other power, 
 and where these immense interests are deeply involved this govern- 
 ment must preserve a position where its influence will be most inde- 
 pendent and efficient. In the contest between Peru and Chili, the 
 United States has watched the progress of the struggle with painful 
 interest, and endeavored, as opportunity offered, to arrange terms of 
 peace ; and you will say to the French Government that, while the in- 
 terest which President Gre>y has manifested for the cause of peace, 
 and his sympathy with the unhappy victims of this war, find an earnest 
 response here, both from the government and the people, the United 
 States declines to enter into negotiations with European powers for a 
 joint intervention in the affairs of Chili and Peru. 
 I have, &c, 
 
 JAMES G. BLAINE. 
 
 No. 395. 
 
 Mr. Morton to Mr. Blaine. 
 
 No. 58.] Legation of the United States, 
 
 Paris, October 20, 1881. (Received November 3.) 
 
 Sir : A few days since I had the honor of a personal interview with 
 President GreVy, to whom I communicated the subject of your dispatch 
 No. 30, with reference to the affairs of Chili and Peru. 
 
 The President expressed himself as in entire accord witht he position 
 taken by the Government of the United States, as indicated in your dis- 
 patch and the letter addressed by General Hurlbut to the Chilian ad- 
 miral — copies of the latter of which having been furnished to the Presi- 
 dent and myself by Mr. Bosas, the minister of Pern, appointed by the 
 Calderon government. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 599 
 
 He added that annexation by a victorious nation of the whole or a 
 large part of the territory of the subdued nation, or even the exaction 
 of an undue indemnity of war, was contrary to the now admitted 
 . rights of nations as well as to the interests of neutrals. That a victo- 
 rious nation had the right to secure the fruits of its victories, there 
 was no doubt, but it had npt the right to impose upon its powerless en- 
 emy burdens amounting to annihilation. 
 
 In reply to my reference to the sentiment and traditions which had 
 so long existed in the United States in regard to what might be 
 termed joint action with European powers, he replied that he was fully 
 aware of the existence of such feeling, and that he could well under- 
 stand its force and legitimate foundation. 
 
 As to the negotiations between Peru and Chili, he said that he had 
 made known his views to me, but with no definite intentions of doing 
 more than extending the good offices of France, if they were needed. 
 
 The United States, he further remarked, was fully competent to deal 
 with the matter, and he was glad to see that it had realized the situa- 
 tion, and was ready to meet the circumstances of the case, and France 
 gave a most .cordial approval to the action which had been taken by 
 the United States. 
 
 I remarked that the United States and many other countries had 
 already recognized the Oalderon government, to which he replied that 
 France had not yet done so, because it seemed to her that the Oalderon 
 government had rather the support of the Chilian G-overnment than of 
 the people of Peru ; but that as soon as it appeared evident that it 
 was national in its character, France would recognize it with pleasure. 
 
 Before leaving, the President remarked to me that although our con- 
 versation was unofficial in the sense that he could do nothing in the 
 matter without consultation with the minister of foreign affairs, the 
 views and opinions he had expressed were those of the French Gov- 
 ernment. This statement he emphatically authorized me to make to 
 my government. 
 
 In another conversation which I have had since the interview with Mr. 
 Gre>y referred to, on the same subject, he reiterated his expression, of 
 the foregoing sentiments. I summed up the position taken by France 
 by declaring very explicitly that it was willing to act with or in the 
 same direction as the United States, if the latter so desired, or to leave 
 the Government of the United States to proceed alone, if it preferred 
 the latter course. 
 I have, &c, 
 
 L. P. MORTON. 
 
 No. 396. 
 
 Mr. Blaine to Mr. Morton. 
 
 LTelegram.J 
 
 Washington, November 14, 1881. 
 The Secretary of State telegraphed Mr. Morton, United States min- 
 ister at Paris, for the particulars of any interviews he had held of late 
 date with the French Government on the subject of Chilian and Peru- 
 vian affairs, and more particularly touching the recognition of the 
 Peruvian minister. 
 
600 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 No. 397. 
 
 Mr. Morton to Mr. Blaine. 
 
 [TelegTam.] 
 
 United States Legation, 
 
 Paris, November 15, 1881. 
 Mr. Morton telegraphs the Secretary of State that he has not inter- 
 viewed the President since his two visits mentioned in dispatch No. 58. 
 Can add nothing except that in his second interview the President dis- 
 approved the statement of Mr. Bosas, the Peruvian minister, who 
 understood that he said that in the first interview Mr. Morton had 
 announced that the United States Government was not desirous of 
 European aid. This produced the explicit declaration contained in the 
 dispatch. The indications of recognition of the Calderon government 
 seem less favorable. 
 
 5. — MISCELLANEOUS. 
 
 No. 398. 
 Mr. Pettis to Mr. Evarts. 
 
 Meadville, Pa., 
 March 29, 1880. (Received April 3.) 
 Sir : I am in receipt of information from Mr. Otto Eichter, of La 
 Paz, Bolivia, under date of the 15th ultimo, the gentleman nominated 
 by me while in Bolivia as vice-consul-general, and who I left in charge 
 of the legation and archives, that in consequence of President Daza's 
 from Camorones, near Arica, was followed by the substitution of Col. 
 Gliodoror Camacho as commander-in-chief of the troops, and Gen- 
 eral Campero as temporary President of Bolivia, and thus the whole 
 revolution was effected in a most peaceable way, and the public security 
 has never been disturbed in the least degree. General Campero was 
 expected at La Paz in a few days, and it was reported had convened 
 Congress, to meet at Oruro on the 2oth day of next month, for the pur- 
 pose of electing a new head of the state. 
 I also inclose a newspaper (Spanish) printed at Arequipa, Peru. 
 Mr. Eichter concludes his letter with the assurance that the business 
 of the consulate has had and will receive his every attention. 
 I have the honor to be, yours faithfully, 
 
 S. NEWTON PETTIS. 
 
 Upon reflection I have concluded to forward the letter of Mr. Eichter 
 to me. — P. 
 
 Mr. Richter to Mr. Pettis. < 
 
 La Paz (Bolivia), February 13, 1880. 
 Sir : Favored by your esteemed letters, dated from Callao and Panama and trusting 
 you arrived meanwhile safely in your native country by the present, I beg to inform 
 you of the great changes in political affairs which have happened in Bolivia since your 
 departure. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. . 601 
 
 i 
 
 The retreat of General Daza from Caniarones, near Arioa, which produced such great . 
 an excitement and which remains unexplained till this day, proved to be his misfor- 
 tune. 
 
 Simultaneous manifestations, made at Tacna by the Bolivian army and in all parts 
 of our republic by the people have substituted for him Col. Gliodoro Camacho as 
 commander-in-chief of the troops and General Campero as temporary President of 
 Bolivia. 
 
 On his retirement General Diza has taken up his residence at Arequipa. The whole 
 revolution has been effected in a most peaceable way and the public security has never 
 been disturbed in the least degree. 
 
 General Campero is expected to arrive here in a few days, and, it is said, has con- 
 vened Congress to meet at Ornro, on the 25th of April next, for the purpose of electing 
 a new head of the state. 
 
 In order to keep you acquainted with the progress of matters here I have already 
 sent you and will continue to send you newspapers from here which I hope have 
 reached you safely. Should any further changes of importance take place, I will not 
 fail to advise you thereof. 
 
 The business of the consulate has had my tntire attention since your leaving and 
 will continue to command the same in future. 
 
 I have the honor to remain, sir, your obedient servant, 
 
 OTTO RICHTER. 
 Hon. S. Newton Pettis, 
 
 Hinister Resident of the United States for Boliviano., <f c. 
 
 No. 399. 
 
 Mr. Fvarts to Mr. Fisher. 
 
 Department of State, 
 
 Washington, June 6, 1879. 
 Sir : Availing myself of the obliging offer recently made by you 
 upon announcing your intention of proceeding to South America, I 
 send herewith a package containing official dispatches for the ministers 
 and consuls of the United States in Peru and Chili, which, in view of 
 the hostilities existing between those countries, it is believed might en- 
 counter some delay if consigned to the ordinary channels of communi- 
 cation. 
 
 In accordance with your request I also inclose a special passport for 
 your use, and have directed to be sent to your address a copy of the 
 United States treaties, with supplement, and the latest edition of the 
 United States Consular Regulations. 
 I am, sir, your obedient servant, 
 
 WM. M. EVAETS. 
 
 No. 400. 
 
 Mr. Fisher to Mr. Seward. 
 
 Consulate of Chili, 
 Boston, June 7, 1879. (Received June 9.) 
 Sir : In compliance with your request at our interview in Washing- 
 ton on the 4th of June, I take pleasure in forwarding by to-day's mail 
 for the information of the honorable Secretary of State and of your- 
 self, two official pamphlets recently received from the minister of for- 
 eign relations of Chili in regard to the present war between that coun- 
 try and Peru and Bolivia, namely : 
 
602 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I. Question Chileno-Boliviano. — Exposition del ministro de relaciones 
 esteriores de Chile" sobre los motivos que justiflcan la revindication 
 del territorio comprehendido entre los paralelos 23 y 24 latitud sur. 
 
 II. Manifesto que el Gobiemo de Chile dirije a las potencias amigas 
 con motivo del estado de guerra con el Grobierno del Pef u. 
 
 In regard to the papers and data relative to Chili and Spanish Amer- 
 ica, referring chiefly to commerce, which you desire for reference, I 
 shall take pleasure in forwarding copies early next week, as soon as I 
 can collect them, and have the honor, &c, 
 
 HOE ACE JST. FISHEB, 
 
 Consul of Chili. 
 
 No. 401. 
 
 Mr. Fisher to Mr. Evarts. 
 
 Consulate of Chili, 
 Boston, June 10, 1879. (Eeceived June 12.)- 
 Sir : I have the honor to acknowledge the receipt of your favor of 6th 
 June, informing me that you had forwarded to me a package of dis- 
 patches for the United States ministers and consuls in Chili and Peru; 
 also a special passport for my use as United States bearer of dispatches ; 
 also that you had directed a copy of the United States treaties and con- 
 sular regulations to be sent to my address. 
 
 Tour letter was received on the 8th, the packages named on the 9th 
 instant, all of which I now acknowledge. 
 
 My purpose is to leave for Chili, by the steamer leaving New York 
 on 20th June, unless unexpectedly delayed ; in which event I will notify 
 you through the minister of Chili, who, I understand, has arrived in the 
 United States since I had the honor of an interview with you. 
 I am, &c, 
 
 HOEACE N. FISHEE, 
 
 Consul of Chili. 
 
 No. 402. 
 
 Mr. Fisher to Mr. Evarts. 
 
 . Valparaiso, Chili, July 30, 1879. 
 
 (Eeceived September 16.) 
 
 Sir : I have the honor to report as follows in regard to the official 
 dispatches intrusted to me as per your letter of 6th June. 
 
 June 30. — I sailed from New York for Aspinwall, arriving there July 
 8, at 4 p. m. ; the following day I crossed the Isthmus and embarked on 
 the steamer for Valparaiso, via Callao, which was advertised to leave 
 Panama at 6 p. m. July 9, although from delay on account of torpedo 
 launch for Peru the steamer did not sail until noon July 10. 
 
 July 17. — I reached Eten, the port of Lambayeque, Peru ; the dis- 
 patch for the United States consul at Lambayeque was forwarded 
 through the agent of the Pacific Steam Navigation Company at Etea, 
 who takes charge of the consular mail and copy of whose receipt and 
 copy of my letter to said consul are annexed hereto (A, B). 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 603 
 
 July 19.— Upon arriving at Callao, I delivered in person the two dis- 
 patches for Minister Christiancy and the dispatch for the United States 
 consul at Callao. On the evening of the same day I left Callao for Val- 
 paraiso by the connecting steamer. 
 
 July 24.— As the port of Iquique was blockaded by the Chilian fleet, 
 the steamer did not enter that port ; but I delivered the dispatch for 
 the United States consul at Iquique, Peru, to Captain Salamanca, flag 
 officer of the admiral of the Chilian fleet (who boarded the steamer off 
 Iquique), who agreed to deliver the same by flag of truce. 
 
 July 28.— At Coquimbo, Chili, I delivered the dispatch for the United 
 States consul at Coquimbo to the vice-consul at the consulate. 
 
 July 29.— Upon arrival at Valparaiso, I delivered, in person, the dis- 
 patch for the United States consul at Valparaiso, who also received 
 and agreed to forward the dispatch for the United States consul at 
 Talcahuano, Chili. As Minister Osborn was at Valparaiso when I 
 arrived, I also delivered the two dispatches addressed to him. 
 
 As it seems to be a custom or regulation to examine letters at the 
 post-office in Pern at the present time, at least such is my information 
 from disinterested sources, I deemed it advisable to deliver dispatches 
 for the United States consuls at Lambayeque and Iquique, by means 
 of responsible parties rather than through the mail, as it was not 
 possible for me to deliver the same in person. There is no examina- 
 tion of letters in Chili. 
 
 Although it is not within the scope of my duty as bearer of dis- 
 patches, I take the liberty of stating that the general feeling seems to 
 be that if any occasion for arbitration or mediation in the present con- 
 flict on the west coast of South America should arise, the good offices 
 of the United States would be preferred to those of any other country in 
 America or Europe. 
 I am, &c, 
 
 HORACE N. FISHER, 
 
 Bearer of Dispatches. 
 
 Memorandum. 
 Dispatches of United States State Department received and delivered. 
 
 Delivered. 
 
 Dispatch for TjDited States consul at Lambayeque, Peru. 
 
 Dispatch for United 'States minister to Peru' 
 
 Dispatch for United States consul at Callao, Peru 
 
 Dispatch for United States consul at Iquique, Peru 
 
 Dispatoh for United States consul at Coquimbo, Chili 
 
 Dispatch for United States minister to Chili 
 
 Dispatch for United States consul at Valparaiso, Chili — 
 Dispatch for United States consul at Talcahuano, Chili. . 
 
 July 17,1879' 
 July 19,1879 
 July 19, 1879 
 July 24, 1879f 
 July 28, 1879 
 July 29, 1879 
 July 29,1879 
 July 29, 1879} 
 
 * Through agent of Pacific Steam Navigation Company at Eten, Peru. 
 
 t Through captain, Salamanca, flag-officer of admiral of the Chilian fleet blockading Iquique. 
 
 J Through United States consul at Valparaiso. 
 
 INCLOSURBS. 
 
 A. — Receipt (copy) of agent of Pacific Steam Navigation Company at Eten for dis 
 patch to United States consul at Lambayeque, Peru. 
 
604 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 B. — Letter (copy) to United States consul at Lambayeque, Peru, of July 17, 1879, 
 in regard to dispatch for him. 
 
 C. — Letter (copy) to admiral of Chilian fleet, blockading Iquique, of July 24, 1879. 
 
 [In closures.] 
 
 Report daled Valparaiso, July 30, 1879. 
 
 A. 
 
 Received of Col. Horace N. Fisher, bearer of dispatches of the United States 
 Government, one sealed letter from Department of State, United States of America, to 
 the consul of the United States at Lambayeque, Peru, which I will deliver to him. 
 Eten.Peru, July 17, 1*79. 
 
 __ II. GUERRERO, 
 Dependienle de la Agenda de la Campania Inglesade Valparaiso. 
 
 B. 
 
 Steamship Lima, Eien, Peru, July 17, 1879. 
 Sir : I have the honor to inform you that not being able to proceed to Lambayeque 
 to present in person the letter from the State Department, United States of America, 
 I have delivered the same to the representative of the Pacific Steam Navigation Com- 
 pany at this port, who has agreed to deliver the same to you. Therefore, will yon do 
 me the favor to acknowledge the receipt thereof to the United States minister (Mr. 
 Christiancy) at Lima in due course. 
 I am, &c, 
 
 HORACE N. FISHER, 
 
 Bearer of Dispatches. 
 
 To the Consul of the United States at Lambayeque, Peru. 
 
 (Memorandum. — Annexed is a copy of the receipt received from the agent of the Pa- 
 cific Steam Navigation Company.) 
 
 C. 
 
 Steamship Ilo, 
 Off Iquique, Peru, July 24, 1879. 
 Sir : I have the honor to be bearer of dispatches from the State Department of the 
 United States to the ministers and consuls of the United States in Peru and Chili. 
 
 The blockade of the port of Iquique prevents me from delivering my dispatch to the 
 United States consul at Iquique, Peru. Will you, therefore, have the goodness to de- 
 liver the inclosed dispatch to the said consul by the first flag of truce, and oblige, 
 Your obedient servant, 
 
 HORACE N. FISHER, 
 Bearer of DispatcJies for the United States Government. 
 To the Officer in command 
 
 of the Chilian Squadron ilocJcading Iquique, Peru : 
 (Memorandum. — Delivered July 24 at 8 p. m. to Captain Salamanca, chief of staff of 
 Admiral Williams, who agreed to forward said letter by flag of truce, which would be 
 sent by Captain Robinson, of Her Britannic Majesty's ship Turquoise, with letters to 
 Her Britannic Majesty's consul.) 
 
 No. 403. 
 Mr. Fisher to Mr. Seward. 
 
 No. 3. Personal.] Santiago, Chili, 
 
 July 31, 1879. (Keceived September 16.) 
 Dear Sir : Beferring to my former letters (1 and 2), mailed at Guayaquil 
 July 14, and corroborating the statements and suggestions therein made, 
 I will continue some account of my observations since leaving Guayaquil. 
 
AFFAIRS IN CHILI, PEHU, AND BOLIVIA. 601} 
 
 I arrived at Callao in the morning of July 19, and there met at our 
 consulate Minister Christiancy and Admiral Rogers. From what they 
 said, I inferred that they were 'disappointed in not receiving some posi- 
 tive instructions from our government. I at once opened business with 
 Minister Christiancy, informing him of the views you expressed in re- 
 gard to the willingness of United States Government to use its friendly 
 offices to harmonize the dissensions between Peru, Bolivia, and Chili, pro- 
 vided either or all of the belligerent republics should request such good 
 offices through the proper channel. Mr. Christiancy informed me, as I 
 presume he has officially reported, that Peru and Bolivia were favorable 
 to action of that nature on our part, but he stated that he was satisfied 
 that both Peru and Bolivia would insist, as a preliminary, that Chili 
 should restore to Bolivia the territory taken possession of by her army; 
 in a word, that the ante helium statm would be a sine qua non prelim- 
 inary to any negotiation. I understand from a gentleman officially con- 
 versant with the views expressed by the Bolivian Government that such 
 is the condition demanded by. that government. 
 
 My own view of this question was at that time, and I have seen no 
 reason to change, that the most that would be conceded by Chili would 
 be the status quo. This opinion was based upon the usage of nations in 
 time of war, namely, that a truce or suspension of hostilities always 
 presupposed the status quo during' negotiations for peace. It is not 
 necessary for me to call your attention to particular cases, although the 
 fact of the status quo during the Franco -German war negotiations and 
 those at the close of the Russo-Turkish war are so excellent and recent 
 examples as to leave no doubt as to the usage. Moreover, the facts that 
 Bolivia and Peru are in a chronic state of revolution so general that it 
 maybe assumed that such is their normal condition; that however 
 much the existing government of these countries may intend to act in 
 good faith, no man can guarantee that the President of either of those 
 countries will complete his term of office as the executive authority ; 
 that the original cause of the war was a deliberate violation by Bolivia 
 of a formal treaty, duly made five years ago, under which a large 
 amount of foreign capital was invested ; that the conduct of Peru is 
 open to a charge of gross bad faith, as an accessory before the fact, in 
 that its government formally engaged to support Bolivia, by a secret 
 treaty to that effect, in practically confiscating the property of foreign 
 nitrate producers in Bolivia, as had already been done in Peru. In view 
 of these facts and others of a similar character, it could hardly be ex- 
 pected that Chili would consent to any truce the preliminary condition 
 of which involved a surrender of military posts almost impregnable to 
 the troops of a government whose conduct heretofore might be assumed 
 to presuppose a refusal to acquiesce in a decision unfavorable to its 
 claims. 
 
 For these general and special reasons I could not believe that Chili, 
 in actual possession of the disputed terrritory, and apparently able to 
 hold it indefinitely against any force available to Peru-Bolivia, and pro- 
 tected by nature, and by a desert through which an attacking army must 
 carry not only food but water for its troops and animals, would consent 
 to any truce for negotiation or arbitration, except upon the status quo 
 
 At Antofagasta, the headquarters of the Chilian army in the field, I 
 met Senor Santa Maria, the minister of foreign affairs of Chili, who is 
 also vested with the full power to manage the civil and military affairs 
 in the disputed territory, and had a long interview with him. He ex- 
 pressed himself greatly pleased to learn the willingness of the United 
 
606 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 States Government to use its good offices in bringing about a settle- 
 ment of the dispute and war, but he frankly stated that the Chilian 
 Government would entertain no such proposition unless upon the basis 
 of the status quo during negotiation and arbitration. Since arriving at 
 Valparaiso I have availed of my personal friends, of both the adminis- 
 tration and opposition parties, and am satisfied that no ministry could 
 remain in office who should consent to any negotiation upon the prelimi- 
 nary condition of the ante helium status during negotiation. 
 
 There is a fact, of which you are probably informed, which gives force 
 to the latter statement, namely, that in Chili the ministry holds a posi- 
 tion analogous to that of the British ministry; that the cabinet officers 
 have seats in Congress and are obliged to answer questions and* defend 
 the policy of the government on the floor; that a refusal to support the 
 government in its measures, as ascertained by the vote of Congress, is 
 followed by a change of ministry. Consequently the ministry, being 
 responsible to Congress, cannot ignore the voice of Congress, as in the 
 United States. 
 
 The indecisive character of the war, as it is deemed by many whose 
 experience has not prepared them to appreciate the difficulties of 
 nature and of converting new levies into reliable troops, when added to 
 other alleged complaints, has so weakened the present ministry that 
 any considerable misfortune woidd lead apparently to a new ministry, 
 the third since this present year has commenced. It is reported and 
 apparently confirmed that the steamer Kimac — carrying troops, horses, 
 and supplies to the Chilian army at Antofagasta — has been captured 
 by the Peruvians. The government guaranteed the owners against . 
 loss of the steamer on basis of £60,000 sterling, which it will have 
 to pay; while loss of property and cash for payment of troops will prob- 
 ably swell the damage and loss to $500,000, and the loss of a battalion 
 of troops — all caused as alleged by neglect to send a convoy — have 
 caused great excitement and led to a secret session of Congress com- 
 mencing yesterday, at which only fifteen representatives and two sena- 
 tors were absent yesterday. I was told by a friend of the present min- 
 istry (at Antofagasta, July 26) that the loss of the Eimac, which was 
 even then apprehended from her being overdue, would be likely to 
 overthrow the ministry. The overthrow of the present ministry pos- 
 sesses this importance to the United States, that it might also involve 
 a more peaceful policy, as their successors would not be compromised 
 on the war question, although there seemsto be but one mind on that 
 point now, whatever may have orginally been the difference of opinion 
 about declaring war in the beginning. 
 
 It may be some days before I form a clear idea of the position, and 
 therefore write by this steamer, which sails August 2, in order that 
 you may know that, while arbitration of the United States would 
 be desired by all parties belligerent, there seems to be a wide differ- 
 ence as to the preliminary condition between Chili and Peru-Bolivia. 
 From what Minister Christiancy informed me, it would seem that Peru- 
 Bolivia are determined to insist upon the ante-bellum, status, and I am 
 satisfied that Chili will not consent to such a preliminary condition. 
 
 So far as the material resources and financial strength of the bellig- 
 erents are concerned, I think that Chili is in much the best condition. 
 I am informed that Chili promptly pays the interest on the public debt, 
 although by arrangement mutually satisfactory to the government and 
 the holders of Chilian bonds the payment into the sinking fund has 
 been suspended for five years. As you know, the commercial depres- 
 sion, arising from three consecutive years of short crops and the un- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 607 
 
 prece dented decline in the price of copper, has been productive of a 
 great commercial crisis and induced the government to suspend specie 
 .payments. The paper authorized to be issued by the- banks is secured 
 by a deposit of government bonds, but there is a difference of about 30 
 per cent, between specie and bank notes. As 1 understand the case, the 
 government does not issue legal -tender notes in Chili ; while in Peru and 
 Bolivia I think the paper money in circulation is issued by the govern- 
 ment. However that may be, the paper dollar in Peru is worth about 
 25 per cent, of its face value, which indicates a financial condition 
 much worse than in Chili. So far as the public credit of Peru or Bolivia 
 is concerned, I am informed that Peru has not paid the interest on her 
 public debt for several years, and that capitalists are not willing to lend 
 any money to Bolivia upon any terms. In Chili the troops I have seen 
 seem well armed, equipped, clad, and fed, and, I understand, receive 
 their pay regularly and promptly ; while, though the troops of Peru 
 and Bolivia are said to be well supplied, their pay is irregular and 
 largely in arrears. The use of troops by both sides has thus far been 
 chiefly in garrisoning and fortifying military posts, and I am of the 
 opinion that neither army possesses the transportation or supplies 
 necessary for active operations in the field. As to supplies, Chili, being 
 a large exporter of wheat and cattle, would have less difficulty than her 
 opponents in feeding her troops; while Peru-Bolivia, not being able to 
 obtain the usual supply of cereals from Chili, are likely to find diffi- 
 culty in feeding their troops. Thus far the war has been principally 
 confined to naval operations. In the contests on the sea thus far the 
 Chilians have acted with conspicuous gallantry, and have become mas- 
 ters of the situation, so far as is possible with the small naval forces on 
 either side. At present the Peruvian navy is obliged to act simply as 
 raiders upon small ports and transports. 
 
 I have endeavored to state clearly the result of my observation and 
 inquiry as to the condition and financial strength of both belligerents ; 
 also the views, not only expressed, but, I think, entertained by each on 
 the subject of mediation. If you consider it advisable, I authorize you 
 to read this, or the two letters (1 and 2) from Guayaquil to the honora- 
 ble Secretary, for the information of our government; otherwise, you 
 will please to consider it personal. The facts and opinions given herein 
 have been carefully gathered and formed, and you can rely upon them 
 as substantially correct. The part relating to Chili I have read to a 
 Chilian senator, who is an old and valued and discreet friend, and he 
 says that I have stated the position correctly. 
 Yery truly, your friend, 
 
 HORACE X. FISHER. 
 
 Hon. Frederick W. Seward, 
 
 State Department, Washington, D. G. 
 
 No. 404. 
 Mr. Fisher to Mr. Seward. 
 
 No. 4. Personal.] Hacienda de Ptjllalli, Chili, 
 
 August 14, 1879. (Received September 21.) 
 Dear Sir : In my letter (No. 1) of July 13 I raised the question 
 whether the shipment of torpedo boats from the United States to either 
 
608 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 of the belligerents in the present war was not a violation of our neu- 
 trality, and liable to furnish a tenable claim for damages. I also stated 
 the action of the British consul at Panama, which caused the British, 
 steamer at Panama to refuse a torpedo boat for Callao. Beferring you 
 to the reasons oifered for making a distinction between contraband of 
 war destined for sea use and that which can duly be used on land, I 
 refer you to the action of the British Government in a similar case, as 
 stated in a recent Santiago paper, El Independiente, of August 6, a 
 translation of which I here annex for your information : 
 
 In the last steamer from England a torpedo launch should have come for our govern- 
 ment. It appears that the Peruvian agents in Europe made a timely protest against 
 this contraband of war, and that the British Government admitted the protest by de- 
 taining the steamer and compelling it to land the boat. 
 
 The exact ground of detaining the steamer is not stated, although 
 the above extract gives a fair ground for inference. 
 
 In my last letter (July 31, No. 3), I referred to the "interpellation " of 
 the Chilian ministry in the senate, and the secret session of Congress 
 thereon. 
 
 The interpellation was continued for three consecutive days, includ- 
 ing one night session. At its close the orders of the day were resumed 
 without any positive action of Congress in the form of a vote of either 
 confidence or censure. Nevertheless, at the second session (August 5), 
 after the close of the interpellation in the Senate, a new interpellation 
 was moved in the House of Deputies in the form of a petition for 
 papers, and an interpellation addressed to the cabinet in regard to the 
 conduct of the war, as stated by the mover — 
 
 On account of the uncertain and precarious situation, proved by the capture of the 
 Rimac, the rnmor of a new cabinet, the inaction of the fleet and army, and, above all, 
 by the failure in obtaining a practical result by the interpellation discussed in the 
 senate. 
 
 On the 12th August the letter of the mover (Senor Alemparte) was read 
 in the House of Deputies, in which he formally withdrew for the pres- 
 ent his motion, giving his reasons therefor in the following language : 
 
 It is now fortunately announced that the blockade of Iquique has been abandoned, 
 and that our fleet has already commenced active and official operations, which it is 
 hoped will be seconded by our army. At the same time it appears that the danger of a 
 ministerial crisis has been averted. At such a moment the attention of the country 
 and the patriotic anxiety of every Chilian should be concentrated upon the opera- 
 tions of onr army and fleet, which are called upon to settle the fate of the republic. 
 
 As nearly as I can judge all political parties in Chili favor a prose- 
 cution of the war, and are willing to make any necessary sacrifice to 
 secure the victory of the national arms. So general does this sentiment 
 seem that I think that no ministry could continue in power upon any 
 other basis than that of a vigorous prosecution of the war, however 
 great may be the difference of opinion as to the mode adopted. 
 
 The abandonment of the blockade of Iquique has released two-thirds 
 of the Chilian fleet and made it available for active operations. In- 
 deed it seems to have been a fair criticism whether Chili could afford to 
 neutralize the greater part of its fleet in blockading a second-rate port 
 like Iquique, the object of the blockade, namely, the crippling of the 
 resources of Peru and its revenue from export duties on guano and 
 nitrate soda, having been already accomplished by the destruction of 
 the launches for loading and other similar facilities. I will here state 
 that at the Peruvian ports, owing to shallow water and heavy surf, 
 all vessels have to be loaded from lighters (launches), «ften at a dis- 
 tance from the shore, Callao being the sole exception. 
 
 There is reason for thinking that the army will be moved by sea from 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 609 
 
 Antofagasta against some Peruvian town, either Arica, Iquique, or 
 Callao, all of which possess strategical importance. At Iquique the 
 Peruvian forces are some 12,000, covering the nitrate district ; but as 
 that army is with difficulty maintained, and the military importance of 
 the post is of minor importance in the campaign, I should much doubt 
 any landing there, near the southern frontier of Peru, 600 miles from 
 Callao, and separated from the rest of Peru by a country almost im- 
 practicable for marching an army by land. Arica being at the Pacific 
 terminus of the main route for merchandise, partly railroad and partly 
 wagon-, from Bolivia, is the point where the Bolivian forces debouch ; 
 for which reason a landing at, and the permanent occupation of, Arica 
 would not only close the debouchment of troops, &c, from Bolivia, but 
 also cut the land lines of communication of the army at Iquique, the dis- 
 tance from Arica to Iquique being 109 miles by sea and probably over 
 200 by land. The only other route from Bolivia to the Pacific (not 
 already occupied by the Chilians) is the railroad from Lake Titicaca to 
 Mollendo, a very steep-grade road, with a small amount of rolling- 
 stock. Mollendo is a town of some 2,000 inhabitants, 135 miles north 
 of Arica by sea ; its port au open roadstead, where steamers often have 
 great difficulty in landing merchandise, on account of the surf. The 
 railroad to Lake Titicaca passes for several miles along the sea-side, 
 and naturally exposed to be interfered with by a single man-of-war. 
 As a strategical point, therefore, I think Arica the most important, 
 and that its occupation would be likely to have an important influence 
 upon the result of the war, especially for the following reasons, namely: 
 
 1st. The valley from Arica to Arequipa, 60 miles to the Cordellera, 
 is very productive. It exports considerable food, and can support an 
 army of larger numbers than all the forces of the three belligerents now 
 in the field. I think that the Peruvian army at Iquique draws a con- 
 siderable part of its supplies from the Arica Valley. Its occupation 
 would, therefore, not only prevent the arrival of reinforcements from 
 Bolivia, but break up the lines and base of supplies for the Peruvian 
 main army at Iquique. 
 
 2d. The occupation of Arica by the Chilian forces would also make 
 them de facto owners, and, as such, in position to negotiate with Bolivia 
 upon the basis of a transfer of Arica to Bolivia (at the expense of Peru) 
 as compensation for the loss of Bolivian sea-coast further south and ad- 
 joining Chili. This fact is, I believe, recognized as one of the factors 
 in this war, namely, that the Peruvian sea-coast south of Arica shuts 
 ou t the greater part of Bolivia from the Pacific ; that in the separation 
 of Bolivia (or Upper Peru) from Peru there was a manifest lack of con- 
 sideration shown to Bolivia in giving her the short, miserable coast-line 
 on the edge of the Atacama desert, with the single port of Cobija ; 
 that, consequently, an exchange of the said short coast, separated by 
 over 200 miles of the desert from the southern part of Bolivia, for the 
 good port of Arica, the natural and actual principal outlet of Bolivia, 
 throu gh a fertile country, would be a temptation hardly safe to trust the 
 Bolivians with ; that with such a make-weight negotiations might be 
 successfully carried out on the basis of extending the Chillian frontier 
 •northward so as to include Iquique, and of giving Bolivia a sea-coast 
 opposite her central provinces from Arica and Pisagua (70" miles), all 
 which, of course, would be at the expense of Peru, and for the aggran- 
 dizement of Chili, as well as advantageous for Bolivia. 
 
 For the above two reasons I think that Arica is the most important 
 strategical and military position during the present war on the coast of 
 S. Ex. 79 39 
 
.610 AFFAIKS IN CHILI, PERU, AND BOLIVIA. 
 
 Peru, as well as a good exchange for Bolivia. Nor do I have any ex- 
 alted opinion of the moral acuteness of Bolivia which would lead me to 
 believe her likely to throw away so advantageous an opportunity from 
 a just regard for the sacredness of national honor and good faith due to 
 her ally. In fact the presence of the President of Peru at Arica seems 
 quite as likely to have been caused by the presence of the President of 
 Bolivia there in command of the Bolivian contingent as for purely mili- 
 tary reasons. 
 
 The third position named was Oallao. As you know, Callao is only 
 6 miles from Lima, south of the Bay of Oallao, and separated from it by 
 a long, low cape ; is a bay having good anchorage near the shore, and 
 a sufficient depth of water for ships of large size. Prom the head of 
 this bay to Lima is about five -miles, the country is level and suitable 
 for the movement of troops. The ports of Chorillos and Anchon are on 
 the south side of this bay and afford facilities for landing troops under 
 the protection of the guns of men-of-war, while beyond the reach of 
 the guns of Callao. In the war of independence the .Chilians sent an 
 army to Callao, which subsequently (in conjunction with Peruvian rein- 
 forcements) won the decisive battle of Ayacncho. 
 
 In 1838 another Chilian army, under General Bulnes, landed at 
 Anchon, and after a battle on the plain of Lima entered that city; thence 
 it marched against General Santa Cruz, the "supreme protector" of Peru- 
 Bolivia, and totally defeated his army at Tungay (January 12, 1839), 
 250 miles southeast of Lima. 
 
 For political reasons the landing of a Chilian army at Anchon or 
 Chorillos would possess a certain importance, and would certainly, if 
 followed by a victory on the plain of Lima, lead to the occupation of 
 the capital of Peru ; but whether the victorious army could hold Lima 
 and the surrounding country with the forces available for shipment from 
 Chili and at so great a distance from its base (1,500 miles from Valpa- 
 raiso) is a serious question ; while the attempt would involve military 
 risks of no ordinary kind. As already stated, it seems to me that Arica 
 is a more important military position and more likely to lead to impor- 
 tant and permanent results. 
 
 There seems reason to anticipate a movement of a picked force of 
 10,000 Chilian troops from Antofagasta to one of the three points named 
 on the Peruvian coast, for which purpose the co-operation of the 
 Ghilian fleet would be needed. I am informed that 10,000 troops can 
 be dispatched from the army at Antofagasta with the transportation 
 available now, and that supplies for such a number are actually ready. 
 
 The Chilians are strong and easily diciplined, which, together with 
 their admitted bravery and steadiness under fire in the past, and their 
 supplies on hand, would give them an advantage over the troops of 
 Peru and Bolivia. Their officers would do no discredit to any army, 
 so far as I have seen them, and seem to devote themselves heartily and 
 intelligently to their work ; their infantry and artillery arms are of an 
 excellent character, and if they are commanded by a competent gen- 
 eral they are likely to render a good account of themselves. 
 
 In view of the present general unanimity for the vigorous prosecu- 
 tion of the war and of the apparent preparation for immediate military 
 activity, I do not deem it advisable to press the idea of arbitration, be- 
 lieving it likely that no basis could be agreed upon which would fix the 
 status during negotiations. The idea of arbitration has already been 
 advanced by neutral States of both Europe and South America. As 
 you know, by my former letter (Xo. 3, of July 31), I stated to Senor 
 Santa Maria, minister of foreign affairs, and apparently the recognized 
 
AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 611 
 
 leader of the ministry of Chili, that the good offices of the United States 
 could be relied upon whenever either of the belligerents formally re- 
 quested them, and that he seemed very much gratified to know it ; that 
 I am satisfied that the United States would be preferred as arbitrator, 
 by all three countries, to any other ; but that in the present condition 
 of affairs there is so great a difference as to the status during negotia- . 
 tion, Chili insisting upon the status quo and Peru-Bolivia upon the 
 status ante helium that it seems not advisable to press the subject at 
 present. It is partly to avoid any discussion of the question at present 
 that I am staying with my friend, Mr. Yrariazaval, at his country seat 
 (Bullalli). My only visit to Santiago was for a day and a half, to formally 
 report my arrival at the state department, having already reported in 
 person to the minister of foreign affairs at antofagasta. 
 
 I will here state that I frankly informed Mr. Christiancy, our minister 
 to Peru, and subsequently Mr. Pettis, our minister to Bolivia, of the 
 substance of our conversation, so far as it concerned arbitration ; Mr. 
 Pettis was my fellow-passenger from Callao to Valparaiso, and has had 
 some interviews with Mr. Osborn, our minister to Chili, and informed 
 me that he stated to Mr. Osborn at Yalparaiso (as I requested) what I 
 had told him. 
 
 I did not have an opportunity of informing Mr. Osborn in person, as 
 his return to Santiago was delayed until I was on the point of leaving 
 for PullaUi, as I had planned to do. 
 
 I have naturally discussed the question with my friend Mr. Yrarra- 
 zaval, who takes the same view as I have expressed in this and the pre- 
 vious letter as to pressing the subject at this time; in fact, I stated the 
 subject to him in full in Mr. Pettis's presence at Valparaiso. I presume 
 Mr. Peftis will report to the Department his views in this matter, and 
 therefore you will please to consider that my allusion to having met 
 him is confidential, as I do not wish to forestall him in any way. As 
 Mr. Yrarrazaval is recognized as a leader in Chilian state affairs, I am 
 likely to be well informed of the condition of things, and when the 
 proper time comes I shall use such arguments as will, in my judgment, 
 tend to bring about the desired result. 
 
 Very respectfully, your obedient servant, 
 
 HORACE N. FISHER. 
 
 P. S. — In future please address letters for me to the " care of SeSor 
 D. Manuel J. Yrarrazaval, Santiago, Chili," who receives his Santiago 
 mail and will forward letters to me if not here*. 
 
 No. 405. 
 
 Mr. Fisher to Mr. Seward. 
 
 No. 5.] Hacienda de Ptjllalli, 
 
 Ligna, Chili, October 9, 1879. (Received November 24.) 
 
 Dear Sir : Although perhaps it is not necessary, it seems advisable 
 to state some facts for your information inasmuch as I notice that some 
 comment has been made in the New York papers in regard to my visit 
 to Chili, in order that you may know the exact facts in detail. 
 
 (1.) I made a memorandum of the points in our conversation at the 
 State Department June 4 in order to avoid all possible misunderstand- 
 ing and unintentional errors of memory. This memorandum, written 
 out the same day, was placed in a sealed envelope and not opened until 
 
612 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I met Minister Christiancy at the United States consulate in Callao- 
 July 19, where I read to him the part relating to arbitration by the 
 United States, which latter fact I reported to you in my letter No. 3 r 
 dated Santiago, July 31, 1879. He was the first who saw or knew its 
 contents. 
 
 (2.) The only person to whom I communicated any of the points of 
 our conversation before sailing for Chili was Senor I. A. Nunez, the 
 Chilian commissioner of education, who met me at the steamer in New 
 York with letters from Senor Asta-Buruaga, the Chilian minister, dated 
 Washington. June 28 ; to him, as the chosen representative of the Chilian 
 minister, I communicated such points of our conversation as seemed of 
 immediate practical advantage for the minister to know, this in official 
 confidence, receiving in return useful suggestions and letters. 
 
 (3.) The statement, published in the New York papers are conclusive 
 proof that the precautions taken were ample; inasmuch as the first in- 
 formation of my journey or its objects was stated by them to have been 
 received from a paper published in Callao (South Pacific Times), July 
 23d, more than six weeks after I had the pleasure of an interview at 
 the State Department. 
 
 (4.) As to any intimation by me of the contents of the sealed dis- 
 patches confided to me, it not is necessary to remark that they were de- 
 livered in good order ; as to offering United States arbitration to the 
 Peruvian Government, I was in Lima about three hours and in the 
 company of our minister or his secretary, and left Callao for Valparaiso 
 the evening of the day I arrived at Callao. 
 
 (5.) As to communicating the fact in South America before reaching 
 Chili, that the United States Government would be willing to use its 
 good offices to settle the trouble between the belligerent republics if 
 formally requested to do so, of course I did so communicate, but to such 
 persons only as I deemed of sufficient influence and character as to be 
 able and willing to promote that end; in all such communications, 
 however, I was careful to avoid all semblance of official character and 
 to state in a general way that, when in Washington, I met friends con- 
 versant with the views of our government and "had good reason to oe- 
 lieve" that such request, if formally made, would tend to an honorable 
 settlement by arbitration. 
 
 (6.) To only three persons did I speak on the subject, except in the 
 most general way, before arriving at Callao, namely : 
 
 (a.) Senor Godoy, minister of Chili, to Ecuador, who enjoys the con- 
 fidence due to his position and personal character in Ecuador, as well as 
 his own country. 
 
 (b.) SeBor Pablo Arosemena, the new minister of Colombia to Peru 
 and Chili, who was on his way to Lima to urge a settlement by arbitra- 
 tion, preferring the United States as arbitrator. 
 
 (e.) Eev. Ke^elm Vaughan, private secretary of Cardinal Manning, 
 who deservedly enjoys an extensive influence thoughout Spanish 
 America, and was then on his way from Mexico to Lima to confer with 
 the leading Catholic clergy of Peru, and possibly of Bolivia. 
 
 These three gentlemen, all men of responsibility and unquestionable 
 character and all favorable to the settlement of the war by arbitration, 
 and willing to use their influence in favor of the United States as arbi- 
 trator, seemed well worth using for this purpose. I have reason to be- 
 lieve that I did well in informing them that, while the United States 
 Government has always avoided mingling in the quarrels of other states, 
 its good offices in favor of the peaceful solution of the difficulty could 
 be relied upon when they were sought by either belligerent. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 613 
 
 It is possible that the fact of .my meeting Minister Christiancy and 
 Admiral Bodgers at the United States consulate of Oallao, and of my 
 going with them to Lima where I was introduced to Minister Pettis, 
 who happened to be my fellow-passenger from Oallao to Valparaiso, 
 may have led to an imaginary importance of my voyage ; especially as 
 it was generally understood that Mr. Pettis had the subject of arbitra- 
 tion much at heart and was supposed to know the views of both the 
 Bolivian and Peruvian governments. Moreover the fact of Mr. Pettis's 
 " interview with the President of Peru, at Arica, in the morning of 23d 
 July, and of the latter having telegraphed to the President of Bolivia 
 to meet Mr. Pettis at Pisagua, on the following morning, was not un- 
 likely made known by telegraph in Oallao the same day, which was the 
 date of the Oallao paper ; more particularly as I think that, at that 
 time, both Peru and Bolivia favored negotiation either for obtaining 
 mediation or for gaining time. Perhaps these facts may account for 
 the exaggerated report published in Oallao, which led to some comment 
 not less exaggerated in the United States and equally without founda- 
 tion. At all events, of this I am confident, that I have taken extreme 
 precautions to avoid undue inference and premature discussion. 
 
 As Minister Pettis was not only the diplomatic agent of the United 
 States, but apparently in the confidence of both President Prado and 
 Daza, I deemed it advisable to state to him before reaching Arica 
 (Prado's headquarters), that, from what I had learned at Washington, 
 there was no doubt but what the United States Government would be 
 willing to use its good offices in favor of a peaceful and honorable settle- 
 ment, if properly requested through the regular diplomatic channels. I 
 however declined his invitation to accompany him ashore at Arica and 
 Pisagua, on the ground that as I was going to Chili and likely to be 
 brought in contact with the military, as well as the civil officers of Chin, 
 I deemed it advisable to avoid landing at fortified towns like Arica and 
 Pisagua, after hostilities had actually commenced, which might have be- 
 come the scene of naval or military operations, in order to avoid all 
 appearances of misusing my protection as bearer of dispatches ; but that 
 if he should find it desirable on landing, or if either President Prado or 
 Daza requested me to meet them, I would accept an invitation to land 
 and meet them. 
 
 At Antofagasta I met Mr. Charles 0. Greene of B. Greenwich, E. I., 
 whom I kne win Boston, and who is the agent of the nitrate works and rail- 
 road at Antofagasta. I accepted his invitation to meet Senor Santa 
 Maria, the Chilian minister of foreign relations, who was then at his 
 house. As I wrote out a detailed memorandum of the interview, I 
 will here give extracts from the same for your information, merely re- 
 marking that Mr. Greene is a grandson of our Bevolutionary General 
 Greene and an honorable gentleman. 
 
 [Extract from memorandum of interview with Chilian minister of foreign affairs, Serior 
 Santa Maria, at Antofagasta, July, 25, 1879.] 
 
 * * # rf * * * 
 
 He invited Mr. Pettis, Captaiu Cross, and myself to breakfast with Mm, and when 
 we refused, he said that Senor Santa Maria was at his house, at which I saw an 
 opportunity at communication if I could get rid of Mr. Pettis, whose discretion I 
 doubted. 
 
 By making the most of my acquaintance with Mr. Greene I managed to make Mr. 
 Pettis believe that Greene was an old personal friend, and after some hesitation (put 
 on) I accepted Greene's invitation to call for a moment at his house if the captain of 
 the port was not ready to dispatch the ship. Of course the captain of the port was 
 amenable to reason, and we went to breakfast at Greene's house, which was also 
 
614 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 headquarters. * * * On the way to Greene's house I told him that I was consul of 
 Chili in Boston, and was United States bearer of dispatches ; that I desired that only 
 he and Santa Maria should know that I was consul, or in fact other than as an Amer- 
 ican passenger. * * * 
 
 After breakfast, by invitation, Mr. Greene and I went with Santa Maria to the hit- 
 ter's room, and we proceeded at once to business. I told him that upon receiving the 
 "circular" to the agents of Chili abroad, I proceeded to Washington and bad a spe- 
 cial interview with President Hayes and at the State Department. That Mr. Hayes 
 expressed himself sorry that war bad broken out ; that he had formed a favorable 
 idea of Chili from what he knew of it ; that Mr. Evarts gave me half an hour's inter- 
 view, and expressed similar viewsi; that Secretary Seward had a long interview with 
 me, at which I was authorized to say to either of the governments that the Govern- 
 ment of the United States would be pleased to use its good offices to settle the quarrel 
 whenever either of the belligerent powers should formally ask for them, but that, 
 until thus requested, the government would preserve neutrality. 
 
 To prevent any misunderstanding I then read my memorandum of my interview 
 with Secretary Seward. 
 
 [N. B. — So far only as concerned " arbitration by United States."] 
 
 I also told him that Minister Christiancy told me at Lima that he was satisfied that 
 Peru and Bolivia were united, and that he was satisfied that they would not accept 
 arbitration except upon the basis of the " ante-bellum status," as preliminary to all ne- 
 gotiation ; that Minister Pettis insisted that the " ante-bellum status " was necessary ; 
 that I had. replied to Mr. Pettis that it seemed to nie, personally, that the " statu 
 quo " was the only basis upon which any arrangements could be expected, which 
 seemed only reasonable and in accordance with the custom of nations. This seemed 
 to please Santa Maria, to whom I replied that when I left the United States the con- 
 dition was so little understood that the question of "status" was not mentioned or 
 considered ; that, therefore, I had told Pettis that as my own personal opinion, and 
 I repeated to both Mr. Greene and Sefior Santa Maria that the question was not con- 
 sidered at Washington in any interview with the President or at the State Depart- 
 ment. Santa Maria said that the Government of Chili would never consent to aroitration 
 on any other oasis than the statu quo, "jamas ! jamas ! " I also told him, substantially, 
 what I wrote Seward in my Guayaquil letter about the British fleet and the torpedo 
 boat at Panama, which made Santa Maria embrace me, saying that Chili had in me 
 not only a live consul, but a friend. 
 
 I further told him about Arosemena and bis mission ; that he favored arbitration 
 by the President of the United States. * * * I told Santa Maria and Greene that, 
 as our government had [a] minister here, all communications in writing should be made 
 to and through them ; that, therefore, my communication was verbal, and that I had 
 no written instructions beyond that of bearer of dispatches, for which reason I had re- 
 ceived a special State Department passport, which I showed them ; also that I had 
 seen SeBor Nunez just before the steamer sailed from New York, and had a long inter- 
 view ; that he brought me letters from Asta-Buruaga, and gave me his card with a 
 note on it for Santa Maria, which card I sent ashore with a note to Mr. Greene for 
 
 Santa Maria. 
 
 # ■" -f * -f * 
 
 I will here call your attention to the fact that the above memoran- 
 dum, while it states quite minutely and exactly the substance of my 
 interview with the Chilian minister, was not intended for any but my 
 own strictly private use. Therefore I will here explain one point which 
 might mislead, to wit, in regard to Mr. Pettis, "whose discretion I 
 doubted." This I do in order that no unjust imputation may be inferred 
 in regard to his conduct. While I think that Mr. Pettis is an honest 
 man, with excellent intentions, and not conscious of any indiscretion, 
 from some circumstances (which, it seems, attracted the attention of 
 several Chilians, who spoke to me on the subject), there seemed reason 
 to believe that he was not quite circumspect, and I therefore took the 
 liberty of speaking frankly with him before landing at Valparaiso, in 
 order that he might avoid the appearance of acting for Bolivian interest ; 
 and I will here state that he accepted my suggestion in the same spirit in 
 which it was made, and subsequently told me that Mr. Osborn took the 
 same view that I did. I will further state that I believe that he uni- 
 formly and specifically disclaimed any special instructions from the 
 United States Government, and seemed to intend to act as a harmon- 
 izer. This fact it is but just to him that our government should know, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 615 
 
 because Ms conductwas subjected to criticism in Chili. Peeling thatsuch 
 would be the case, I decided to separate myself from all apparent con- 
 nection with him, however much I might like him personally. There 
 was one point, which I think he did not sufficiently realize, namely, 
 tha;t the condition of public sentiment was morbidly acute on the sub- 
 ject of mediation, the air was full of rumors about mediation, now by 
 this country and now by that, some indicating the use of overwhelming 
 force. This state of things I noticed in both Peru and Chili ; and I 
 understand was actually believed by the cabinet officers of Bolivia. 
 
 In fact, the province in which I have unexpectedly, and most assuredly 
 unintentionally, found myself is a fair illustration of the practical result 
 of such a condition of the public mind, though I had no reason to sus- 
 pect it in my case until within a few days. 
 
 - Upon arriving at Valparaiso I delivered my dispatches in person to the 
 United States consul at Valparaiso and also to Minister Osborn, who was 
 at the consulate, as I stated in my official report to the honorable Sec- 
 retary of State, dated July 30. I arrived at Valparaiso the evening of 
 29th July, where my friend, Senor Yrarrazaval met me the following 
 noon. By appointment I called upon Mr. Pettis with my friend to in- 
 troduce him to Mr. Pettis and to Minister Osborn, who for some reason,, 
 however, was unable to be present. In the presence of Mr. Pettis and 
 Mr. Yrarrazaval I read that part of my "memorandum" of my interview 
 with you which related to arbitration, in order that the exact conditions 
 under which the United States might intervene should be distinctly 
 known to both, and I farther requested Mr. Pettis to communicate the 
 same to Mr. Osborn for his information in case I should not see him 
 before leaving for Santiago, which he subsequently told me he had 
 done. Mr. Pettis apparently felt confident of his ability to convince 
 the Chilian Government of the policy of accepting the views of the- 
 Bolivian Government on the subject of arbitration, but he did not state 
 or intimate the nature of his arguments, nor in fact did I desire to 
 know. He also made two requests of me: 1st, that I should allow Mm 
 to present his arguments to the Chilian Government in Lis own time 
 and way; 2d, that I should avoid referring to him in my correspond- 
 ence, as he proposed to report very minutely his doings to the State 
 Department. 
 
 To his first-named request I replied that he might rest assured that 
 1 should not interfere in any way with his plans at present, as the min- 
 ister of foreign relations was at Antofagasta, and I should therefore 
 merely stay over a day at Santiago to formally announce my arrival at 
 the state department and then go with my friend to his country-seat. 
 I took this decided course because I desired, first, to entirely separate 
 any negotiation of his from any that I might subsequently attempt ; 
 and also in order that Mr. Pettis might have no ground whatever for 
 attributing to me any miscarriage of his negotiations, which I expected 
 would prove futile, for several reasons. As to the second request of 
 Mr. Pettis, I mentioned briefly and in confidence that he was my fellow- 
 passenger to Valparaiso, and that I had informed him in substance of 
 that part of our conversation which related to arbitration ; this in my 
 letter (No. 4) to you of August 14, in which I wrote, " I presume that 
 Mr. Pettis will report to the Department his views in this matter, and 
 therefore you will please to consider that my allusion to having met him 
 is confidential, an I do not wish to forestall him in any way." Now, 
 however, since I have recently read in a Lima paper the following 
 statement of its correspondent at Tacna, dated September 2, to wit : 
 " General Daza has been at Arica for several days. They there had a 
 
616 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 long conference with the North American minister, Mr. Newton Pettis, 
 who has returned from Chili." I think that no doubt can exist as to 
 the fulfillment of my agreement with Mr. Pettis. I do not think, how- 
 ever that the withholding of the detailed statement (which I herewith 
 make) was at all for the disadvantage of the United States, as the re- 
 sults and conclusions were promptly reported to you, and there was 
 little, if anything, to be gained by pushing the subject during this 
 period of delay. 
 
 As stated in my last letter to you (No. 4), I am patiently waiting until 
 the proper time comes for advantageous action, when. I shall use such 
 arguments as will in my judgment tend to bring about the desired re- 
 sults we discussed in your office in Washington last June. Of course 
 it is well to remember the old adage, " It is easier to lead a horse to 
 water than to make him drink ; " but I think, as I stated to you, that 
 the present war has awakened all the South American states to a more 
 complete realization of their relations to each other and other countries, 
 and may afford an opportunity much to be desired, of which I am 
 watching the development apparently in progress. 
 
 Long before this letter reaches you, the news of the capture of the 
 sole remaining Peruvian iron-clad, El Huascar, at Mejillones, on yester- 
 day, will have been received. This virtually closes the naval opera- 
 tions of Peru, and lays bare her coast to descents of the army and navy 
 of Chili. It seems to me that the crisis of this war is near at hand, and 
 perhaps may arrive before you receive this letter. I have never doubted 
 that Ch}li would win the victory, and have been, as you know, inclined 
 to believe that this war would probably result in advancing the civil 
 and political condition of Spanish America. It is possible, therefore, 
 that I may have important points to communicate before many weeks. 
 Very respectfully, &c, 
 
 HOEACE N. P1SHEE. 
 
 P. S. — Address letters for me, as heretofore stated, to " care of Senor 
 Don Manuel J. Earrazaval, Santiago, Chili." 
 
 No. 406. 
 
 Mr. Hunter to Mr. Fisher. 
 
 Personal.] Department of State, 
 
 Washington, October 10, 1879. 
 Sik : I have the pleasure to acknowledge the reception of your letter 
 (No. 4) of the 14th of August last, in relation to the progress of the 
 war in South America, and touching the question of torpedo boats 
 built in neutral countries for the use of the belligerents. It has been 
 read with the same interest as your former letters. 
 I am, sir, your obedient servant, 
 
 W. HUNTEE, 
 Assistant Secretary. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 617 
 
 No. 407. 
 Mr. Fisher to Mr. Hunter. 
 
 Hacienda de Pullalli, 
 Ligua, Chili, pecember 26, 1879. (Eeceived February 4, 1880.) 
 
 Sib : I have the honor to acknowledge the receipt of your letter of 
 October 10, 1879, and am pleased if my letters to Mr. Seward have 
 proved of interest or have given additional information to the Depart- 
 ment. 
 
 I have to-day the pleasure of forwarding to the State Department, 
 through you, a copy of the official compilation of the law of war, recently 
 published by the Government ofOhili for the guidance of its army and 
 navy, and entitled " El Derecho de la Guerra." Copies of this treatise 
 were issued to the officers of the Chilian army which invaded Peru last 
 month, and I am informed that it is obligatory upon officers in the Chilian 
 army and navy to enforce the code thus officially established. 
 
 The treatise contains (1), the code of the laws of war adopted at the 
 Brussels International Congress of 1874 ; (2), the St. Petersburg Con- 
 vention of 1868 in regard to explosive bullets; (3), the Geneva Conven- 
 tions of 1864 and 1868 in regard to the treatment of wounded soidiers ; 
 and (4), the code of instructions prepared by Dr. Francis Lieber, for the 
 u Government of the Armies of the United States in the Field," which 
 was officially adopted as General Order No. 100, United States War 
 Department, April 24, 1879. The annexed correspondence with the 
 Chilian Government shows the steps taken to secure the adoption of 
 the United States code of the laws of war in the present conflict. 
 
 Allow me here to state that, though I do not have the honor to belong to 
 any peace society, it seeemed to me very desirable to mitigate the evils of 
 war by well established rules agreed to by the belligerents, not only 
 upon the general principles of humanity, but upon special reasons in 
 this case ; it seemed desirable to do whatever was in my power to pro- 
 mote the adoption of the United States code by the other nations of 
 America, being satisfied that uniformity in such important matters 
 would lead to a common, mutual interest which would naturally extend 
 to closer relations of friendship and intercourse for the mutual advan- 
 tage, commercial and political, of the several nations with each other. 
 
 To this end, therefore, I proposed to Senor Santa Maria, then min- 
 ister of foreign relations of Chili, at my interview with him at Autofa- 
 gasta, July 26, 1879, the adoption of the United States General Order 
 No. 100 ; upon his return to Santiago I presented him with a copy of 
 the same, through the personal services of a friend, and thus carried 
 out my promise, made him at Autofagasta, for which the personal thanks 
 of the minister were sent by my friend and the official acknowledgment 
 of my letter forwarded by his successor, Senor Amunategui. 
 
 Annexed are extracts of the official denial of violations of the laws 
 of war, published in the Diario Oficial of November 19, 1879, in vindir 
 cation of charges openly made by the Peruvian Government but since 
 repudiated by the Peruvian clergyman [Perez] in charge of the Ambu- 
 lance (hospital) ; in these extracts not only is the accusation officially 
 and formally refuted, but special reference is made to the above men- 
 tioned code of laws of war. 
 
 Eespectfully submitting this statement for the information of the 
 government of my country, 
 
 I have, &c. 
 
 HOEACE N. FISHEE. 
 
618 AFFAIRS LN CHILI, PERU, AND BOLIVIA. 
 
 Mr. FUiher to the minister of foreign relations of Chili. 
 
 Hacienda db Puixalli, Ligua, August 18, 1879. 
 Sir : I have the honor to forward herewith by my friend, Don Miguel Yrarrazaval, a- 
 copy of General Order No. 100 of the United States War Department, dated April 24, 
 1863, for the " Government of the Armies of the United States in the Field." 
 
 This order is the formal adoption by the Government of the United States, of the 
 code of instructions for the use of armies, prepared by the late Francis Lieber, LL. D., 
 of New York, which represents the established custom of nations and that branch of 
 international law. Fo"ur years' experience during the war of the rebellion demon- 
 strated its completeness and practical value. 
 
 Deeming that a concise, yet full code of the law of nations, so far as applicable to 
 armies in the field, would be very desirable, both for establishing a uniform system 
 and for mitigating the evils of war, I had the honor to give one copy of the General 
 Order No. 100 to Mr. Christiancy, the minister of the United States to Peru, who agreed 
 to bring it to the personal attention of the Peruvian Government ; and now I have the 
 pleasure of presenting my second copy to the Government of Chili, through you, in the 
 hope that it may be approved and adopted. 
 I have, &c., 
 
 HORACE N. FISHER, 
 Consul of Chili in Boston. 
 To the Minister of Foreign Relations, 
 
 Santiago de Chili. 
 
 (Copy.) 
 
 Mr. Fisher to General McCoolc. 
 
 Hacienda de Pullalli, Ligua, Chili, October 31, 1879. 
 My Dear General : I inclose herewith a " memorandum upon the present condition 
 of the South American republics," in which I confine my remarks to a single subject 
 which seems to me of great importance to the government and people of the United 
 States. I, therefore, authorize you to read the " memorandum " to General Garfield 
 and your cousin "Anson ;" if they approve it and it also meets the approval of your- 
 self, you could also read the same to your friends, the President and General Sherman, 
 and to the Secretary of State. I think it best not to publish anything regarding it or 
 the writer, at least, not for the present. 
 
 For certain reasons I am staying at' my friend's country house, -where I shall keep 
 headquarters for the present. Any letters addressed to the "care of Senor. ManuelJ. 
 Yrarrazaval, Santiago, Chili," will reach me in due course of mail. 
 With kind regards, &c, 
 
 HORACE N. FISHER. 
 General A. McD. McCooe, 
 
 Headquarters United States Army, Washington, D. C. 
 
 Memorandum of present condition of South American repjiblics. 
 
 At the time of the revolution Spanish America was divided into three viceroyalties — 
 New Spain, Peru, and the La Plata. 
 
 The viceroyalty of New Spain consisted of Mexico, Central America, and the Spanish 
 West Indies. The viceroyalty of Peru consisted of Peru, Ecuador, Colombia, Vene- 
 zuela, Bolivia, and Chili. The viceroyalty of the La Plata consisted of the Argentine 
 Republic, Paraguay, and Uruguay. 
 
 A brief consideration of the orgnization of the two Spanish viceroyalties in South 
 America may, perhaps, explain some points, otherwise obscure, in the political rela- 
 tions of the South American republics. 
 
 Previous to 1776 the viceroyalty of Peru also included the Spanish province of 
 Tucnman on the eastern slope of the Andes, now comprising the seven Argentine states 
 of (1) Tucuman, (2) Kioja, (3) Catamarca, (4) Salta, (5) Sujuy, (6) Santiago del Estero, 
 and (7) Cordova; this province had been an integral part of the viceroyalty of Peru from 
 the time of the conquest ; it also included the semi-independent captain-generalship of 
 Chili, consisting of the present republic of Chili and the Spanish province of Cuyo ad- 
 joining it on the eastern slope of the Andes, which now forms the three Argentine 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 61 9* 
 
 states of (1) Mendoza, (2) San Juan, and (3) San Luis. It further included the semi- 
 independent province of the La Plata, consisting of the present Argentine states of 
 Buenos Ayres, (2) Santa Fe", (3) Entre Rios, and (4) Corrientes, and the republics of 
 Paraguay and Uruguay. 
 
 In 1776 the provinces of (1) La Plata, (2) Cuyo, and (3) Tucuman, were united as 
 the viceroyalty of the La Plata, with the city of Buenos Ayres as the seat of govern- 
 ment and the port of entry ; whereby the province of Buenos Ayres Was given an in- 
 creased political and commercial preponderence at the expense of the interior prov- 
 inces; the jealousy thus arising has been the cause of civil war in the Argentine 
 Republic on several occasions since the revolution. There is even reason to believe 
 that this arbitrary act of the Spanish Government, whereby the people of the old 
 provinces of Tucuman and Cuyo were transferred against their will from the govern- 
 ments established on the Pacific coast, to the then distant government at the mouth of 
 the La Plata, and to the prejudice of their social, political, and commercial interests,, 
 hastened the Spanish-American revolution. At all events,. the revolution first broke 
 out and obtained a permanent success on the La Plata. In Chili, the revolutionists 
 were at first obliged to seek refuge across the Andes, among their old friends in Cuyo, 
 whence, reinforced by an Argentine army under General San Martin, they recrossed the 
 Andes and won their independence at the decisive battle of Maypu. The allied armies 
 of Chili and the Argentine provinces thence moved by sea against Peru, and there, unit- 
 ing with the revolutionary troops of the northern provinces, under Bolivar, accomplished 
 the final expulsion of the Spanish authority at the battle of Ayachuco, in Bolivia, in 
 1820. 
 
 Thus the independence of' the Spanish colonies in South America was accomplished 
 by their united efforts and, as the political successors of the King of Spain, they owned 
 all of the Spanish possessions in South America. These they divided between the sev- 
 eral colonies upon the basis of the boundaries existing in 1810 between the colonies. 
 But so vague were those boundaries, so conflicting the claims based upon contradic- 
 tory charters (" cedulas"), that there are to this day disputed questions as to boundaries 
 between each and all of the South American States, without exception. From this 
 cause have arisen exhausting wars on several occasions, some of which will here be 
 cited. 
 
 The war between Paraguay and the three allied states of Brazil, the Argentine Re- 
 public and Uruguay, in 1865, grew out of a disputed boundary. After five years of 
 exhausting war the allies deprived Paraguay of half of its territory. Only very recently 
 has the Government of the United States, mutually chosen as arbitrator between the 
 Argentine Republic and Paraguay, in regard to the ownership of the unsettled terri- 
 tory, known as the " Gran Chaco," rendered its decision adversely to the claim of the 
 Argentine Republic. The war between Brazil and the states of the La Plata, some 
 thirty years ago, arose from a claim to a part of Uruguay, pressed by the Brazilian 
 Government. The long-pending controversy between the Argentine Republic and 
 Chili, in regard to Patagonia, arises from contradictory grants of the Spanish crown, 
 which apparently cover the same territory. As loDg ago as 1856 a treaty was made 
 providing for the amicable settlement of this disputed boundary, and several addi- 
 tional conventions to the same end have subsequently been negotiated ; nevertheless, 
 within a few months, the question assumed a very warlike phase, and may lfad to 
 hostilities. The boundary between Chili and Bolivia has been the subject of contro- 
 versy for many years. In 1866 a treaty was made whereby the territory between the 
 twenty-third and the twenty-fif th degrees of latitude was made a neutral zone, in which 
 the usufruct should be equally divided between Chili and Bolivia. In 1874 a new 
 treaty was made whereby Chilians, resident in that zone, should be exempt from taxa- 
 tion and export duties on the products of their mines ; the violation of that treaty- is 
 the cause of the present war between Chili and Peru-Bolivia. From the recent news it 
 seems that the boundary question between Venezuela and Colombia is assuming a 
 very hostile aspect, tending to war at some time in the near future. This merely con- 
 firms the statement made to me in July, by Don Pablo Arosemena, the new minister 
 from Colombia to Peru and Chili, that Colombia had serious boundary questions with 
 Brazil, Venezuela, Costa Rica, and Ecuador, and that each of those states, as well as 
 Peru and Bolivia, had similar questions with everyone of its neighbors. To show how 
 detrimental these disputes are to the commerce and industries of the South American 
 republics, I here quote from recent editorials in leading papers : 
 
 [Extract from editorial published in the Diario de Candinamarca (a Colombian city), republished in 
 the Ferro-Carril, Santiago, October 28, 1879.] 
 
 * * * It is certain that the questions of boundary between this republic and all 
 of its neighbors require a settlement with the least possible delay. Costa Rica y Ecua- 
 dor, Brazil, and Venezuela, all four nations, have territorial pretensions to our terri- 
 tory. These serious questions may lead to a conflict. * * » 
 
620 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Extract from editorial in the Terro-Carril, Santiago. October 22, 1879.] 
 
 * * * Questions of boundary in which Chili is now involved -with its neighbors are 
 no new thing in its national existence, but the natural and inevitable situation of all the 
 Ameiican republics. On the other hand, these questions, which in all the other republics 
 has been a perpetual and fruitful cause of aggression from the first days of their inde- 
 pendence, thanks to the settled policy of prudence, of concessions, of all kinds of concili- 
 atory and pacific arrangements adopted by Chili, have not, in all these years, pro- 
 duced those frequent outbursts of war, which form the international history of the 
 people of this continent. While it would take much time to enumerate the uninter- 
 rupted series of hostilities between all the republics of South America, caused on all 
 sides by boundary questions, it may be said that the present conflict is the first time 
 that Chili has been involved in war of this origin. * * * Chili has neither influ- 
 enced nor taken any part in the frequent quarrels in the Argentine Republic, Bolivia, 
 Peru, Ecuador, and Paraguay. * * * Our country has lived completely devoted to 
 the carrying out of the works of peace, and if at any time she has intervened in South 
 American conflicts, it has been as a friendly and honored mediator, or as the aider of 
 Peru when her national autonomy has been in danger, or the future of American inde- 
 pendence at stake. While all the republics of South America have been invaded fre- 
 quently by others, either alone or forming allied forces, Chili has only armed twice— 
 in the defense of Peruvian independence and to avert a danger common to all the 
 republics of the Pacific. * * * 
 
 The picture thus drawn, showing the cause of war in South America, is worthy of a 
 careful examination, and thus may we be prepared to consider whether the United 
 States, as an honored and honorable friend of all the states on the American continent, 
 may not be in a position to pacify these vexed questions, and at the same time to win 
 the position of the mutually recognized leader and friend of Spanish America. 
 
 It is well known that in the United States very serious difficulties occurred in Ver- 
 mont between the colonial authorities of New York and New Hampshire. This was just 
 before our revolution. It is also well known that the complicated nature of the char- 
 tered rights of the several colonies to the territory west of the Alleghanies was one of 
 the leading reasons why the Mississippi Valley was, by common consent, made the com- 
 mon property of the nation. Perhaps the statement may even be made that, the de- 
 sire to permanently settle this class of questions was one of the great moving causes 
 of the permanent union of the original thirteen States as a nation. 
 
 It is possible that the very complexity of the territorial claims of the South American 
 republics, so dangerous to the peaceful development of the great natural resources, 
 may lead to a similar union . For this reason the plan of Senor Arosemena, the Col- 
 ombian minister ad hoc to Peru and Chili, is worthy of the serious consideration of 
 the Government of the United States. That plan, which represents the official desire 
 of the government and people of Colombia is, that a continental congress should 
 meet at Washington, consisting of plenipotentiaries of all the Spanish American 
 republics, under the presidency of the Executive of the United States, with the object 
 of amicably adjusting these complicated questions. The opportunity would thus arise 
 for considering subjects of a more extensive nature, such as a continental system of in- 
 ternational relations, a commercial union of all America, under the hegemony of the 
 United States, and I believe that the result would tend to the Union of all the republics 
 in America, without depriving them of their self-government, to the peaceful develop- 
 ment of the immense natural resources of a continent, for the mutual advantage of each, 
 and of none more than the United States. 
 
 An invitation officially given to each of the South American and Spanish American 
 states by the United States Government, to meet in congress at Washington, at some 
 fixed time in 1880, for the purpose of amicably and honorably adjusting differences 
 inherited from their colonial days — differences happily avoided in the United States 
 by means of their permanent union under the Constitution — would, I think, meet 
 with the joyful response of most, if not all, of the governments and people of South 
 America, who recognize the cause, but of themselves are unable to work the cure, of 
 the wars and their consequences, which retard the peaceful and prosperous develop- 
 ment of a whole continent. To be thus the means of so glorious a result would be 
 the most noble national work of the present century. 
 
 Thus there now seems again offered to the United States an opportunity to recover 
 the position which was lost by the unfortunate neglect of the United States to take 
 part in the Panama Congress, in 1826, that of the hegemony of all the American re- 
 publics. In vain did our leading statesmen, Monroe and Adams, Clay and Webster, use 
 their influence to have the United States take a leading part in that congress. But 
 the proposed "consideration of the means to be adopted for the total abolition of the African 
 slave trade" apparently led to the refusal of the United States Congress of that day to 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 621 
 
 support this measure of the administration In the notes to the United States Treaties, 
 by J. C. Bancroft Davis (pp. 970,971), are citations and quotations from which the 
 following extract is here quoted : 
 
 " The pacific objects of the congress, the establishment of close and cordial relations 
 of amity, the creation of commercial intercourse, of interchange of political thought, of 
 habits of good understanding between the new, republics and the United States and 
 their respective citizens, might perhaps have been attained, had the administration 
 of that day received the united support of the country. Unhappily they were lost ; 
 the new states were removed from the sympathetic and protecting influence of our 
 example, and their oommerce, which we might then have secured, pasBed into other- 
 hands unfriendly to the United States." 
 
 Bnt to-day circumstances have changed, the whole people of the United States 
 would be united in the support of such a measure ; the people of the South American 
 and Spanish-American states would welcome such a measure as the means of their 
 salvation. Half a century has taught the United States that a close commercial con- 
 nection with the other States of the American continent is necessary for her rapidly 
 developing industries, as necessary for them as for us ; it has taught the new republics 
 that separate they are weak, involved in domestic troubles, interstate controversies 
 and subject to harsh measures from European powers, that by a union their disputes 
 with each other could be avoided, their domestic peace maintained ; but that such a 
 union, under the auspices of the United States, would thereby become permanent. 
 
 It is therefore of consideration whether the opportunity, once lost and now appar- 
 ently again presented, should not be gladly welcomed, and whether the common 
 interests of all the republics of North and South America would not be benefited — per- 
 manently established, by the convening of a continential congress at Washington, not 
 onlyforthe settlement of all pending questions between the South American republics, 
 but for the establishment of a uniform and permanent system of closer relations and 
 friendship between all the republics in America. 
 
 This seems to me, after a very careful consideration of the subject, covering several 
 years, and made in part during a personal visit in quite a number of the South Ameri- 
 can states, to be practicable. Such a result would be worthy of the highest states- 
 manship, and I believe gladly accepted by, and of the greatest interest for, not only 
 the American people but by a continent. 
 
 HORACE N. FISHER. 
 
 Hacienda de Puixalli. 
 
 Liyua, Chili, October 31, 1879. 
 
 ~Ro. 408. 
 
 Mr. Hunter to Mr: Fisher. 
 
 . Department of State, 
 Washington, February 6, 1880. 
 Horace K Fisher, Esq., 
 
 Consul of Chili at Boston, Hacienda de Pullalli, IAgna, Chili : 
 Sir : I have to acknowledge the receipt of your letter of the 26th 
 December last, and of the " Official Publication of the Law of War," 
 which accompanied the same, and in reply have to express to you the 
 thanks of the Department therefor. 
 
 I am, sir, your obedient servant, 
 
 W. HUNTER, 
 Second Assistant Secretary. 
 
 No. 409. 
 Mr. Fisher to Mr. Hunter. 
 
 Hacienda de Pullalli, 
 Ligua, Chili, February 27, 1880. (Received April 12.) 
 Sir: On the 26th of December last I had the honor to acknowledge 
 the receipt of your letter of October 10, 1879, in which you courteously 
 
622 APFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 alluded to my letters to Mr. Seward. In my last letter to him (No. 6), 
 written upon the receipt of an official telegram announcing the victory 
 of the Chilians at Pisagua on the 2d of November, which was received 
 as the mail was about to close, I referred him to my friend, General 
 Alexander McD. McCook, of Washington, to whom I had written by 
 the previous mail, inclosing a memorandum of the " Present condition 
 of the South American Republics," in which I had suggested the pro- 
 priety of our government inviting the several South American govern- 
 ments to meet in a continental congress at Washington during the 
 present year, not only for the settlement of all pending questions be- 
 tween them, but for the establishment of a uniform system of closer 
 relations and friendship between all the republics of America. 
 
 In that memorandum, after briefly stating the historical relations 
 between the South American states, I alluded to the cause — at least a 
 prominent cause — of their past wars with each other. If it will not be 
 presuming too much upon your courtesy, I will submit an extract from 
 that memorandum, as it expresses my views at that time, which I have 
 seen no cause to alter, and which, together with the plan suggested for 
 & continental congress, meet the full approbation of the friend, a well- 
 known statesman and senator of Chili, whose guest I have been since 
 my arrival in Chili. 
 
 Memorandum. 
 
 The present condition of the South American Republics. 
 
 [Extract] 
 
 # * • * * . * * 
 
 Thus the independence of the Spanish colonies in South America was the result of 
 the union of the several colonies, and as the successors of the King of Spain, they held 
 all the Spanish possessions in South America ; these they divided, on the basis of the 
 boundaries existing in 1810, between the colonies. But so vague were those boundaries 
 that there are to this day disputed questions as to boundaries between each and all 
 of the South American states, which have resulted in war on several occasions. 
 
 Thus the war between Brazil and the states of the La Plata grew out of a claim of 
 Brazil to a part of Uruguay ; the war of 1865, between Paraguay and the allied states 
 of Brazil and the Argentine Republic grew out of a disputed boundary question ; only 
 very recently has the United States Government acted as arbitrator (mutually chosen) 
 between the Argentine Republic and Paraguay, in regard to the unsettled territory 
 known as the "Gran Chaco." Within a few days ex-President Sarmiento, the Argen- 
 tine minister of state, has officially alluded to a disputed territory between Bolivia 
 and the Argentine Republic. In July, 1879, Don Pablo Arosemena, the Colombian 
 minister to Peru and Chili, informed me that Colombia had boundary questions still 
 pending with Brazil, Venezuela, Ecuador, and Central America, and that each of these 
 states, as well as Peru and Bolivia, had sfmilar questions to settle with each of its 
 neighbors. 
 
 The long-pending controversy between the Argentine Republic and Chili with regard 
 to Patagonia, arises from contradictory grants from the Spanish Crown, which appar- 
 ently cover jthe same territory ; as long ago as 1856, provision for the settlement of 
 this question was made by treaty, and several additional conventions have since been 
 made with the same object. 
 
 The boundary between Chili and Bolivia has been the subject of controversy for 
 many years ; in 1866, a treaty was made by which the territory between the twenty- 
 third and twenty-fifth degrees of south latitude was made a neutral zone ; the sub- 
 sequent convention of August 4, 1874, was made to regulate the rights of their re- 
 spective citizens in that neutral zone, and to effectually close the controversy ; the will- 
 ful violation of the said convention has resulted in the present war between Chili and 
 Peru-Bolivia. 
 
 In 1878 the controversy in regard to Patagonia assumed such a warlike phase that 
 hostilities seemed unavoidable. It is believed that this induced Bolivia to proceed to 
 the flagrant violation of the treaty-rights of Chilians in the neutral zone between 23° 
 and 2o°, knowing that Peru was ready to aid her in accordance with the secret treatv 
 of 1873. * * * J 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA.- 623 
 
 Thus the statement of Senor Arosemena to me in July, 1879, seems fully corrobo- 
 rated — namely, that there are disputed boundary questions between every one of the 
 South American states and its neighbors, which have already resulted in war on several 
 occasions and are liable to cause war at any time until they are settled. Therefore he 
 had the plan of having all the South American states meet in a continental congress 
 at Washington, by means of plenipotentiaries duly appointed, the object of which 
 should be a final adjustment of these complicated questions. 
 
 It is a well-known fact that in the United States very serious difficulties occurred in 
 Vermont between the colonial authorities of New Hampshire and. New York, in regard 
 to their jurisdiction in Vermont; this wa9 just before our revolution; also that the 
 complex nature of the chartered rights of the several colonies to the territory west of 
 the Alleghanies was the principal reason why the Mississippi Valley was made the 
 common property of the nation ; there is also reason to believe that the desire to settle 
 this class of questions was one of the causes which led to a. permanent union of the orig- 
 inal thirteen States as a nation. 
 
 Perhaps the very complexity of the claims of the South American Republics, so dan- 
 gerous to the peaceable development of their great natural resources may lead to a 
 similar union. For which reason the idea of Senor Arosemena — of a continental con- 
 gress to meet at Washington, consisting of plenipotentiaries from all of the South 
 American Republics, under the presidency of the President of the United States — is 
 worthy of 'consideration ; because whatever the results actually accomplished by the 
 Congress, it will furnish an opportunity for the representative men of each of the South 
 American Republics to know how similar difficulties were settled in the United States, 
 and to behold the results accomplished by a century of peaceful development of natural 
 .resources, no greater than those which they possess, by means of a permanent union. 
 In fact the work of the "Congress of jurisconsults,", which, composed of plenipo- 
 tentiaries of all the South American republics, met at Lima December 9, 1877, to 
 " create a formula of common law for the whole continent of [Spanish] America," as was 
 stated by one of the plenipotentiaries in preparing the treaty of November, 1878, is an 
 earnest of the general desire of Spanish Americans for unification. That treaty, which 
 has been submitted for ratification to the signatory governments, establishes the 
 rights of their respective citizens in other republics .of South America upon a basis 
 similar to that provided by our Constitution for the citizens of the United States in the 
 several States of our Union. 
 
 In view of the facts (1) that the congress of jurisconsults could agree upon so com- 
 plicated and important questions as those covered by their " Code of private interna- 
 tional law," which was embodied in that treaty in full, as clear and concise as it is 
 harmonious and just to the State and its alien residents, and (2) that the time seems 
 to have arrived when the people of all the South American republics are aroused to an 
 appreciation of the dangerous condition of their mutual insecurity, owing to ancient 
 bnt unsettled territorial questions, and of the necessity and advantage of closer union; 
 in view of these facts, it seems that there is an opportunity for the United States, as 
 the friend of all, to recover the position which was open to her at the time of the 
 * Panama congress " in 1826, namely, that of the recognized leadership, the hegemony, 
 of all of the American republics. 
 
 Presidents Monroe and John Quincy Adams, statesmen like Webster and Clay, ex- 
 erted their influence to have the United States take a leading part in the congress. 
 But one of the proposed measures, " The consideration of the means to be adopted for 
 the total abolition of the African slave trade," apparently led to the refusal of the 
 United States CoDgreas to be represented at the Panama Congress, as recommended by 
 the President. 
 
 The pacific objects of the congress, the establishment of close and cordial relations 
 of amity, the creation of commercial intercourse, of interchange of political thought, 
 of habits of good understanding between the new republics and the United States, and 
 their respective citizens, might perhaps have been attained had the administration of 
 that day received the united support of .the country. 
 
 Unhappily they were lost ; the new States were removed from the sympathy and 
 protecting influence of our example, and their commerce, which we might then have 
 secured, passed into other hands unfriendly to the United States. (See J. C. Bancroft 
 Davis's notes to United States Published Treaties, pp. 970-71, and references by him 
 
 « cited.) 
 
 But to-day circumstances have changed ; the lost opportunity is again presented to 
 the United States. Half a century of experience has taught the United States that a 
 close commercial connection with the Spanish American republics is necessary for her 
 rapidly developing industries, as necessary for them as tor her ; it has taught the new 
 republics that separate they are weak, involved in domestic strife aud foreign contro- 
 versies ; that by a union with each other their domestic peace could be maintained. 
 
 It is worthy of consideration, therefore, whether this opportunity, oace lost, should 
 not be gladly welcomed, and whether the common interests of all of the republics of 
 North and South America would not be benefited by the convening of a contiuental 
 
624 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 congress at Washington, not only for the settlement of all pending questions between 
 the South American republics, but for the establishment of a uniform system of closer 
 relations and friendship between all the republics in America. 
 
 The memorandum concluded by suggesting that the President should 
 be authorized to invite the South American republics to send plenipoten- 
 tiaries to a continental congress to meet at Washington, at some time fixed 
 in the present year, for the purposes above specified. I have nothing 
 to add to or take from that suggestion made October 31, 1879, except 
 that I have since met Sefior Arosemena,who gives it as his opinion that 
 such a proposition, coming from the President of the United States, 
 would be gladly and respectfully received. Friends of mine in Chili 
 express the same opinion. 
 
 Within a short time active operations will be renewed by the Chilian 
 army and navy. From information 1 have, it seems likely that the in- 
 formation of another expedition having landed in Peru north of Tara- 
 paca will reach you by telegraph sometime before this letter reaches 
 you. The views I have heretofore expressed in my letter of August 
 14, 1879 (No. 4), are unchanged as to the general object of the war. The 
 landing at Pisagua accomplished the reduction of the Peruvian prov- 
 ince of Tarapaca, but not the occupation of Southern Peru, and the 
 capture or dispersion of the allied armies there stationed ; nor the dis- 
 solution of the Peru-Bolivian alliance, all of which seemed then likely 
 to follow the attack upon Arica. 
 
 As, however, this letter has reached a considerable length, and re- 
 fers to other and more peaceful subjects, I will merely add that in my 
 judgment the next few months will bring about most important ques- 
 tions for all of South America : the change of national boundaries, the 
 establishment of national rights, the opening to civilized industry of 
 parts hitherto neglected or unknown. 
 
 These questions must be settled ; perhaps none of the South Ameri- 
 can States is of sufficient preponderance to do this ; some friendly neu- 
 tral power will probably have this work to do. None is more trusted 
 than the United States ; none more disinterested and friendly, as history 
 proves. But the great country which successfully carries this work to 
 a conclusion will predominate in all South America for the next cen- 
 tury. 
 
 Eespectfully submitting these suggestions to you and to the State 
 Department through you, 
 
 I am, sir, &c, 
 
 HOBACE X. FISHEE. 
 
 No. 410. 
 
 Mr. Fisher to Mr. Hunter. 
 
 Santiago, Chili, 
 October 22, 1880. (Eeceived December 6.) 
 Sir : In my report to the Department, as bearer of dispatches, dated 
 July 30, 1879, 1 wrote to the honorable Secretary as follows : 
 
 Although it is not .within the scope of my duty as bearer of dispatches, I take the 
 liberty of stating that it seems to be the general feeling that, if any occasion for arbi- 
 tration or mediation in the present war on the west coast should arise, the good offi- 
 ces of the United States would be preferred to those of any other country in America 
 or Europe. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 625 
 
 I can now go farther, and state with perfect confidence that the only 
 government whose mediation would be accepted by Chili is that of the 
 United States ; and I make this statement with the full knowledge of 
 the views of the President and ministry df Chili, and of the views of 
 the leaders- of the political parties in the Chilian Congress. 
 
 This statement was made in my letter of September 30, 1880, to my 
 friend G-eneral Garfield, in which I discussed the questions growing 
 out of Minister Christiancy's recent visit to Chili, and the reasons given 
 why I did not think that the mediation of the United States would 
 prove successful at the present time. 
 
 In my letter to your colleague, Mr. Seward (No. i), dated August 14, 
 1879, I expressed my opinion at that time as follows : 
 
 In view of the present general unanimity for the vigorous prosecution of the war 
 and of the apparent preparation for immediate military activity, I do not think it ad- 
 visable to press the idea of arbitration, believing it likely that no basis could be agreed 
 upon which would fix the status of the belligerents during negotiations. The idea of 
 arbitration has already been advauced by neutral states of both Europe and America. 
 * * * I am satisfied that the United States would be preferred as arbitrator by all 
 three of the belligerent oountries to any other; bat that in the present condition of 
 affairs there is so great a difference as to the status during negotiations — Chili insisting 
 upon the status quo and Peru aud Bolivia upon the status ante helium, that it is not ad- 
 visable to press the subject at present. 
 
 I will here state that, from information I have since received, it would 
 have been feasible for Peru — Bolivia to have made peace at that time 
 by the cession to Chili of the "neutral zone," which would have given 
 Autofagasta (already occupied) to Chili if they had had the wisdom to 
 have accepted the condition-precedent insisted upon by Chili in regard 
 to the status during negotiations. 
 
 In" a later letter to Mr. Seward (No. 5), dated October 9, 1879, 1 used 
 the following language in regard to mediation and commercial matters 
 discussed with him in June : 
 
 As stated in my last letter to yon, I am patiently waiting until the proper time comes 
 for advantageous action, when I shall use such arguments as will, in my judgment, 
 tend to bring about the desired results we discussed in your office at Washington last 
 June. Of course, it is well to remember the homely adage, "It is easier to bring a 
 horse to water than to make him drink ; " but I think, as stated to you, that the pres- 
 ent war has awakened all of the South American states to a more complete realization 
 of their relations to each other and to other countries, and that it may afford an op- 
 portunity much to be desired, of which I am watching the developments now in prog- 
 ress. » * * I have never doubted that Chili wonld win, and have, as you know, 
 inclined to believe that this war would probably result in ad vancing the civil and social 
 condition of Spanish America. 
 
 As to the last named opinion, I have no reason to question the correct- 
 ness of the views expressed a year ago. 
 
 As to the statement made in the former part of the extract above 
 quoted, I am happy to be able at last to state tbat my patience has 
 been rewarded, so far, at least, as the results alluded to refer to the 
 plan for opening the Chilian market to American manufactures. 
 
 As consul of Chili, I could suggest measures for the mutual advant- 
 age of the United States and Chili which no foreign minister could ask 
 for; and the government has accepted, after a prolonged discussion, 
 my recommendation for the assignment of a part of the National Ex- 
 position building at Santiago for the permanent exhibition of samples 
 of standard manufactures of the United States of all kinds not likely 
 to deteriorate. There remain a few details to be arranged, which I ex 
 pect to conclude within a week. 
 
 I have also made the proper preliminary arrangements for a new 
 S. Ex. 79 40 
 
626 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 commercial treaty, on the basis of limited reciprocity, which, however, 
 for certain reasons, cannot be successfully carried through until next 
 year ; these reasons I will communicate in person when I report at the 
 Department in Washington, in December. 
 
 In addition to the above, I have presented a note to the government, 
 after informal conference, to learn whether it would be well received, in 
 favor of including in the proposed treaty of peace certain commercial pro- 
 visions, which will, if adopted, make a commercial treaty of reciprocity 
 between the United States and Chili the means not only of vastly bene- 
 fiting Chili, but of giving the control of the foreign trade of the whole 
 west coast of South America to the United States, a trade which, in 
 1876, was worth $200,000,000 annually, but of which we only had in 
 that year 3 per cent. I have reason to believe that this suggestion, 
 made in my note of October 19, 1880, has been favorably received by 
 the government and some of the leading statesmen of Chili, and is 
 not unlikely likely to be adopted as a basis of peace negotiations. 
 
 Thus, by various means and not a little patience, I have at length 
 attained the principal objects of my present visit to Chili. It has been 
 necessary to wait for the proper opportunities to make the succes- 
 sive steps in this rather complicated affair. But they have been surely 
 taken, and I have no reason for anticipating that there will be serious 
 difficulty in building upon tbe foundation, thus laid, a comprehensive 
 commercial policy of the United States in regard to South America, 
 whereby the trade of that continent may pass into the hands of the 
 United States for their benefit as well as for ours. 
 
 As to mediation, I have already intimated that I have no confidence 
 that the conference at Arica will result in peace at present. I confess 
 that, however much, peace is to be desired, it seems to me doubtful 
 whether the time has quite come to make a peace which will be per- 
 manent and allow the beligerents to devote themselves to the develop- 
 ment of the great natural resources of tiieir respective countries. Nor 
 do I believe that the interests of other nations will suffer by delay in 
 making peace. 
 
 With these views I am forced to believe that the movements in that 
 direction, made by our representatives near the governments of the re- 
 spective belligerents, have been premature, and that the failure to ac- 
 complish the desired results of the mediation of our government, at the 
 Arica conference, is to be apprehended. In fact I took the liberty to 
 express to Minister Osborn, on the morning he left Santiago to attend 
 the Arica conference, that I did not believe that any permanent peace 
 could be negotiated until the Chilian army had arrived in the Bay of 
 Callao, when, in view of the imminent and overwhelming danger to 
 Lima, the Peruvian Government would be entreated by the people of 
 Lima to make any terms of peace necessary to save their city from the 
 dangers incident to a battle fought at its very gates, and that thus the 
 Peruvian dictator would be able to accept the terms of Chili without 
 having his government overthrown. My opinion is that Pierola would 
 be glad to make peace on any terms rather than to continue the war. 
 I give him credit for intelligence enough to understand that the longer 
 the war continues the harder will be the terms granted, and the worse 
 the condition of the country to recover from the effects of the war- that 
 Peru is hopelessly vanquished; that the Peru-Bolivian confederation is 
 impracticable as a permanent thing under existing circumstances and 
 that sooner or later Peru must sue for peace. But I also think that for 
 Pierola to make peace upon the terms that Chili expects and can en- 
 force, while his array at Lima is intact, aud the people are still blinded. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 627 
 
 as it seems to have been Pigrola's policy, to the completeness of their 
 military and naval overthrow, would not only lead to'the violent over- 
 throw of his government by revolution at Lima, but would not unlikely 
 cost him his life if he did not escape from the hands of the mob. 
 
 For these reasons I believe that it is hardlj possible for the present 
 conference of plenipotentiaries at Arica to make a treaty of peace 
 which will be ratified by the Chilian Congress and accepted by the peo- 
 ple of Peru and Bolivia. But when a large and well-equipped veteran 
 army has arrived in Callao Bay and is ready to land under the guns of 
 the Chilian fleet and force its way into the streets of Lima, an army 
 superior in numbers, arms, discipline, and fighting qualities to the im- 
 provised army of Pierola, I think that then and not until then can the 
 friendly mediation of the United States prove efficient in bringing about 
 peace. 
 
 Therefore, I believe that the true time for our mediation to be made will 
 he after the Chilian army has arrived in the Bay of Callao and at the isl- 
 and of San Lorenzo, which forms that bay, and is in full sight of 
 Lima. A conference at San Lorenzo would probably, at that time, 
 bring good fruit, which I doubt very much from the conference at 
 Arica. 
 
 Meanwhile the military preparations for the march to Lima are 
 rapidly progressing, as the Chilian Government announced in accept- 
 ing the invitation to take part in the Arica conference, and Peru — 
 Bolivia will not -gain time by peace negotiations. 
 
 The Turks thus recently saved Constantinople from assault by 
 ■ making peace when the Russian troops came in sight of the dome of San 
 Sophia ; yet the Turks are better soldiers than the Peruvians, and had 
 had the satisfaction of having well and stubbornly resisted their con- 
 querors. So I think there is good prospect for successfully carrying 
 out the benevolent intentions of our government as a mediator and 
 a friend — trusted by all the belligerents — by renewing the, offer of* 
 mediation after the Chilian army has reached Callao Bay and before 
 it lands. Then — .if the Peruvians are still determined to deceive them- 
 selves and trust to defend Lima by force of arms, and mines of dyna- 
 mite, and similar experiments of doubtful utility, rather than make the 
 best terms they can — I see nothing for it but for our government and 
 our ministers to remain strictly neutral in regard to the sad results, 
 which must inevitably ensue. 
 
 As Hamilton said, "A country without a government is an awful 
 spectacle," it may also be said that a city taken by assault terrifies the 
 imagination. Both of these spectacles are likely to be presented to the 
 world if no peaceful submission is arranged at San Lorenzo ; for it 
 must be remembered that for years Chilian laborers in Peru have been 
 treated worse than dogs ; that when war broke out all the Chilians in 
 Peru were ordered to leave the country at a few hours' notice ; that at 
 Iquique only six hours' time was allowed them, and there was no ship 
 to take them to Chili, so that some thousand of men, women, and chil- 
 dren were forced to cro *s the.desert to Autofagasta, fully half of whom 
 are said to have died of thirst on the way ; that Chilian merchants,, 
 long resident in Peru, and married to Peruvian women, were ordered 
 away by the first steamer, and allowed to take no more than a pittance 
 of specie with them. I met one of these victims on the steamer from 
 Panama to Valparaiso ; he was far gone in consumption ; his passage- 
 home had been given him out of compassion by the steamer's company. 
 He was not allowed to land at Callao, and his wife and daughters bade 
 him an eternal adieu in his stateroom. He seemed to be a very inof- 
 
628 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 fensive gentleman. Ladies, whose only offense was their being Chilian 
 by birth, although married to Peruvians, were in like manner summa- 
 rily deported by the first steamer, although it took them away from 
 instead of towards the place they wished to reach. The sufferings of 
 unfortunate Chilian women of humble station became so outrageous 
 that men were sent ashore from the neutral men of-war at Callao to 
 protect them from the violence of the mob. Now. then, when it is re- 
 membered that thousands of officers and soldiers in the Chilian army 
 have personal grievances to avenge, aggrieved either in their own per- 
 sons or of those near and dear to them, it is much to be feared that if 
 Lima should be taken by assault terrible vengeance will be exacted 
 upon the conquered. In prevision of such event I here state the miti- 
 gating causes, in order that you may not form too hasty a judgment, 
 and, further, that our government may not, from any disappointment 
 as to the result of its well -in tended mediation at the Arica conference, 
 be indisposed to renew its beneficent efforts at a more convenient op- 
 portunity to prevent bloodshed and bring about peace. 
 
 These opinions I take the liberty to express for the information of 
 our government ; they have been formed after a careful study of .the 
 questions growing out of the war and anterior to the war, and have 
 been made after observations under exceptionally favorable circum- 
 stances during the fifteen months since my arrival in Chili. As nearly 
 as I can judge, Chili will insist upon the following bases of peace : 
 
 (1.) Measures which will prevent Peru from resuming the offensive — 
 renewing hostilities — for a term of years ; 
 
 (2.) Cession of Tarapaca and possibly of Arica, on account of Peru's 
 inability to pay a money indemnity adequate to the cost and damage 
 of the war to Chili ; 
 
 (3.) Cession of the Bolivian Litoral, between Tarapaca and the former 
 Chilian frontier, for same reason ; 
 
 (4.) Commercial advantages, allowing Chilian products, &c, to enter 
 Peru and Bolivia free of duty for a fixed time ; and I hope to include 
 the nationalized products of Chili. 
 
 (5.) Payment of private claims of Chilians for confiscated property. 
 
 I expect to conclude the negotiations, which I came here to make so 
 as to be able to leave Valparaiso for the United States, on November 
 6, and upon my return to have the pleasure of reporting in person at 
 the Department in "Washington. 
 
 Trusting to find you with your health restored, &c, 
 I have, &c, 
 
 HOEACE X. PISHEE. 
 
 Xo. 411. 
 
 Mr, Fisher to Mr. Hunter. 
 
 Santiago, Chili, October 29, 1880. 
 Sir : On the 22d instant I had the honor to write you in reference to 
 questions affecting the interests of the United States. In regard to 
 mediation, I stated then that I had " no confidence that the conference 
 at Arica will result in peace at this time," and gave my reasons for ap- 
 prehending its failure. The official announcement of this disappointing- 
 ending of our friendly mediation was officially announced by the Gov- 
 ernment of Chili in the Diario official of Chili yesterday morning. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 629 
 
 It is, however, a pleasant thing for me to report that throughout the 
 whole of the public discussions growing out of the mediation of the 
 United States, I have not observed the least harshness of opinion ex- 
 pressed towards the United States either in Congress, in the press, at 
 the clubs, nor in private. On the contrary, the unanimous opinion in 
 Chili has been, so far as I can judge, that the United States Govern- 
 ment has been actuated by the most friendly sentiments, and its good 
 offices have been accepted, by Chili at least, in the same generous spirit 
 and from a desire to avoid unnecessary bloodshed, reserving, however, 
 its freedom to enforce a peace which shall prevent a repetition of the 
 danger which has menaced Chili. 
 
 I am satisfied that no other country but our own could have passed 
 through the crucial ordeal of probably the bitterest debate ever had in 
 the Chilian Congress, to which Mr. Christiancy's visit to Chili gave rise, 
 with such unqualified proofs of respect ; and therefore believe that our 
 government has gained rather than lost influence, in spite of the fail- 
 ure of the Arica conference held under its auspices. 
 
 There seems no reasons for modifying my opinions, expressed in my 
 letter of October 22, that the movements of the representative of our 
 government were premature, and (2) that the friendly mediation of the 
 United States may be renewed under circumstances indicated in that 
 letter, when they will be gladly received by all of the belligerents and 
 will, if judiciously managed, not only solve one of the most delicate 
 problems of interstate differences, but prove for the permanent advan- 
 tage of the United States both from a political and commercial stand- 
 point. 
 
 Although the result of the Arica conference is naturally a disappoint- 
 ment, and may even prove an embarrassment to our own government 
 in many respects, still I hold to the opinion expressed in my last letter, 
 that " however much peace is to be desired, it seems to me doubtful 
 whether the time has come to make a peace which will be permanent 
 and allow the belligerents to devote themselves to the development 
 of the great natural resources of their respective countries." This 
 opinion is not suddenly formed, but is the result of a careful study of 
 the relations heretofore and still existing between not only the belliger- 
 ent states but between all of the states of South America. 
 
 In a memorandum upon the relations of the different states of South 
 America, which I forwarded to you early in the present year, I briefly 
 reviewed the peculiar relations which each state of South America had 
 with every one of its neighbors growing out of their conflicting title to 
 unoccupied lands or lands until recently of but a nominal importance. 
 The present war is one of the results of that unfortunate condition of 
 things. This conflict of claims has proved a factor for evil in the his- 
 tory of South America for more than half a century. Until some proper 
 and definite settlement can be reached similar results are to be expected 
 from time to time in the future. I cannot but think that unless the 
 present war is carried to its logical conclusion, the acknowledgment by 
 one of the belligerents of its complete overthrow in the war, and its un- 
 conditional submission to the fate of war, when generosity can safely 
 and consistently be shown by the victor, the result will be adverse to 
 the general and permanent peace of South America ; that therefore 
 the interests of humanity and of every foreign nation, as well as of the 
 three belligerent states, will be best served by as rapid a campaign as 
 may be possible to bring Peru-Bolivia to terms of unconditional sur- 
 render. No surgeon would be justified to stop his knife in the midst 
 of a capital operation, which must be completed to save the patient's* 
 
630 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 life, simply because the patient or the by-standers suffer pain, or from 
 sympathy, 
 * In ourrebellion how barren the strife, how useless the cost of blood 
 and treasure, if the war had stopped midway ! Neither party victorious ; 
 each representing Tiews incompatible with a permanent peace with each 
 other ; the great permanent results of the war would have been surren- 
 dered for the sake of a temporary peace. Similar would be the case with 
 the belligerent states who accepted our mediation if the Arica confer- 
 ence had not failed. An armed peace — nothing less — would have been 
 forced upon not only the belligerents but upon their neighbors. The 
 manifest evils of such a peace should make us so grateful that even our 
 disappointment should give way to joy that so great an evil has been 
 escaped; an evil not intended when ' the Government of the United 
 States offered to befriend those sister republics which trusted in our 
 friendship, and may become most useful neighbors. 
 
 Respectfully, your obedient servant, 
 
 HORACE N. FISHER. 
 
 P. S. — I may be delayed leaving until November 13 by business 
 alluded to in former letter. 
 
 H. N. F. 
 
 No. 412. 
 Mr. Shijtherd to Mr. Walker Blaine. 
 
 Personal.] New York, July 27, 1381. (Received July 28.) 
 
 Deae Sir : On leaving the residence of the Secretary of State yes- 
 terday morning, I learned from Senator Blair that the gentleman who 
 had shared the latter part of bur interview was the Assistant Secretary 
 of State. 
 
 Will you allow me to annex this note to that conversation? 
 
 Can you, then, give me the present address of Suarez ? and can you 
 suggest a method of awakening in him a desire to confer with me? I 
 would like to meet him at once, but he should properly seek me, and 
 would soon do so if the real facts were hinted to him. 
 
 In connection with the examination of the Cochet claim, which the 
 Secretary was good enough to say should be at once entered upon, I 
 shall be glad to be called on from time to time for any explanation or 
 further data which the examiner may desire. Of course, as the papers 
 stand, there are links only outlined and data summarized in some places ; 
 I used such data as were placed in my hands in the first instance ; 
 these seemed to make a prima-facie case; every allegation will be fully 
 supported in detail in due course. 
 
 Meanwhile I will prepare and print for the use of the Secretary a 
 brief of the law covering especially the doctrine of choses and their in- 
 ternational assignability ; this I hope to be able to forward, say by the 
 1.3th proximo. 
 
 If consistent with all the proprieties of the premises, I would be 
 aided if I knew precisely what the credit industrials desires to do in 
 Peru, and what co-operation on the part of the United States its agents 
 have asked. 
 
AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 631 
 
 Also, if I might have ail authentic abstract of the special instructions 
 cabled or posted to Minister Hurlbut concerning the premises discussed 
 with the Secretary on Monday evening and Tuesday morning, I should 
 be able to act with more precise intelligence, and there might be an- 
 nexed to this any restriction concerning its use which the Secretary 
 should think it proper to direct. I am the sole executive head of both 
 the Landreau and the Cochet claims at present, and shall so continue 
 until the final organization is perfected ; and while I do need full and 
 authentic information for my own guidance, I do not need to share it. 
 Very respectfully, 
 
 JACOB E. SHIPHEED. 
 
 Hon. Walker Blaine, 
 
 Assistant Secretary of State. 
 
 No. 413. 
 
 Mr.' Shipherd to Mr. Blaine. 
 
 Law Office of Jacob B. Shipherd, 
 10 Spruce street, New York, July 28, 1881. (Eeceived July 29.) 
 
 Sir : In a note to the Third Assistant Secretary of State yesterday I 
 promised to prepare and print at once a brief of the legal questions dis- 
 cussed at our recent conferences. Pending this it occurs to me to for- 
 ward to the Department, for use in the examination, a duplicate set of 
 all the papers as yet printed, and to add duplicate originals of two affi- 
 davits by Mr. Hevner, touching all the material allegations so printed. 
 By the end of August I am to receive from Paris certified original proofs 
 of the death, intestacy, &c, of Alex. Oochet. All other original proofs 
 will be supplied in due course. 
 
 While I am writing, it occurs to me to phrase a little more broadly 
 than I did in conversation the suggestion which the Secretary of State 
 was so good as to allow me to make. Our thought and our scheme are 
 in fact as broad as this : 
 
 The Landreau and Oochet claims are but subordinate factors in our pro- 
 gramme. Equallyin the interest of the European holders of $300,000,000 
 of now worthless Peruvian bonds, and of Ghili herself, as an admitted 
 creditor, we appear to call a conference of the creditors of the insol- 
 vent, to demand a proper receiver and a marshalling of the assets, to 
 the end that equal justice shall be done to all. Neither now nor here- 
 after shall we demand any more. Equally with all other creditors we 
 are prepared to prove both our claims by incontestable proofs, and to 
 take only our proper place in the settlement. 
 
 We appeal to the United States to take such measures only at pres- 
 ent as shall effectually forbid Chili, who is only one creditor, to admin- 
 ister alone upon this estate. 
 
 We point out that we are the owners in identity of every ounce of 
 guano remaining, with large amounts still due. 
 
 To allow Chili to touch any guano is impossible; to allow her to annex 
 Tarapaca, with $2,000,000,000 of nitrate for her petty war indemnity, 
 wpuld be monstrous. 
 
 " If the court please," we ask an unconditional injunction pending a 
 meeting of creditors, and we ask no more at present. 
 Very respectfully, 
 
 J. E. SHIPHEED. 
 
632 AFFAIRS IN CHILI-, PERU, AND BOLIVIA. 
 
 [Inclosure.J 
 Deposition of Peter Hevner. 
 
 City axd County of New York, ss : 
 
 Peter HevDer, being duly sworn, says: 
 
 I was born in Corbin County, Pennsylvania, in 1819, Brought up to general build- 
 ing and contracting. 
 
 First went to Peru in 1853; went into general contracting; built railroad from Lima 
 to Chorillos, in 1854, for Don Pedro Coredama. Road was over nine miles ; staid about 
 six years ; built the powder- works, penitentiary, and agreat deal other government work. 
 Iu lt60 I went into mercantile business in Lima, Callao, Arequipa, and Trugillo ; had a 
 house in each place— Hevner, Dockendorff & Co. In 1865 and 1866 I took a contract 
 of the government under which I remodeled the monitor Loa, and rifled the Peruvian 
 cannon which defended the harbor of Callao against Spain. 
 
 Then I had government contracts during nearly all my stay in Peru until 1866. 
 
 I sold out my commercial interest in 1866, and came to the United States. Went 
 back to Pern in 1872 ; got the Salaverey and Trogillo Railroad — contract to build it— 
 in company with Larsaga. In 1874 I got the government contract to build a bridge 
 over the Upper Remack ; all the materials for which have been destroyed— so says the 
 report — in the port of Molva ; these I had shipped from the United States. 
 
 First heard of the Landreau claim thirteen years ago ; knew J. T. Landreau ; began 
 loaning him money about that time. In 1874 1 purchased an interest in the claim from 
 Landreau. I soon after advanced him money to bring him to the United States and to 
 bring his brother from New Orleans to meet him in Washington to arrange with the 
 United States Government. When we came to the United States and made our claim 
 before the government, Mr. Thomas was then sent ont as minister, and I went back 
 immediately after, and I thereafter got the official information from Mr. Thomas on 
 which I kept on advancing the Landreaus money whenever they wanted it, and I as- 
 sisted Mr. Thomas in obtaining the material proofs to support the Landreau claim, and 
 I have been pushing this claim ever since. I still own- my interest in the claim, and I 
 have a general power of attorney from J. C. Landreau authorizing me to sell out the 
 whole of his interest at my discretion. 
 
 Ou my return to Peru, in 1879, after the return of J. T. Landreau from France, in the 
 same year, I heard from him the principal particulars of the Cochet claim. I had 
 heard generally of Cochet, and that he was recognized by the government and the 
 people of Peru as the true discoverer and utilizer of gnano ever since my first arrival 
 in Peru ; this was universally known by all well-informed business men in Pern, and I 
 never heard his claim to be the true discoverer questioned by anybody. 
 
 Cochet was always recognized to be the true discoverer when the matter was spoken 
 of in my hearing. I can give the names of a number of well-known men who knew 
 this general fact as well as I did ; such as Juan Williamson, of Lima ; Patrick Dowley, 
 also of Lima, who must now be eighty years of age ; J. T. Landreau, General Buste- 
 mente, of Lima ; James Hinsbey, of Lima, an Englishman, and the great house of An- 
 thony Gibbs & Co., who were at one time very largely in the guano trade. I have 
 other names in my memorandum books which I cannot at the moment recall. 
 
 There was also Don Philip Bareda, a brother of M. Bareda, who was formerly minis- 
 ter to the United States. Don Philip and all the others I have named knew Cochet 
 personally and intimately ; Cochet in his day was one of the most notable and distin- 
 guished men in Pern as a chemist and discoverer. 
 
 From Landreau I first learned of the death of Cochet, and of his heir, Gelacio. And 
 on that information I looked up Gelacio, investigated the claim to my own satisfaction, 
 and purchased it. I advanced the money necessary to hunt up the heir's baptismal 
 record and establish his identity and heirship. The necessary steps in these premises 
 I took under advice of Peruvian counsel, who advised me that the papers which I have 
 exhibited to Mr. Shipherd, and which he has printed (in translations), gave full proof 
 under Peruvian law of the rights of Gelacio as sole heir of Alexandre Cochet, and of 
 ray title to all such rights by assignment from the heir. I had then no idea of selling- 
 these rights, but I demanded and secured all the proofs necessary under advice of coun- 
 sel to perfect my own title. 
 
 As to the Landreau claim in the Senate, Senator Carpenter was the sub-committee 
 who examined the whole case thoroughly, and told me it was the most honest claim 
 that he had ever known to be put before Congress. « After his health got bad he sent 
 me to Senator Eaton, and he told me that the Senate would either concur with the 
 House or would throw the whole responsibility on the Executive, as they finally did 
 at my request, and I made that choice under advice of Senator Eaton, who told me 
 that Mr. Blaine was sure to be Secretary of State, and that if the whole responsibility 
 was thrown on the Executive, my case wonld be better taken care of by Mr. Blaine 
 alone than by both houses of Congress put together. 
 
AFFAIES IN CHILI, PERU, AND BOLIVIA. 633 
 
 Mr. Carpenter said to meat a second interview, "Take my cotnplimeuts to Mr. 
 Eaton, and tell him I have passed that claim favorably, and have done all I can do for 
 it, for I shall not be able to get to the Senate again this session ; and as I, as sub-com- 
 mittee, have done all I can do for the claim, Senator Eaton can pass the bill without 
 me." 
 
 Then I called upon Mr. Eaton, and it was at that time that he told me that it would 
 he best for me to dispose of the bill as it was disposed of, because Mr. Blaine was sure 
 to be Secretary of State, and he was a progressive man, &c, as I have already stated. 
 
 After the bill was passed, Mr. Christy told me that he met Mr. Eaton in the Capitol, 
 and asked him why he had passed the bill in that way, and he replied that he had done 
 the best possible thing for the claim by passing the bill in that way, because Mr. Blaine 
 was sure to be Secretary of State, &c. 
 
 As to the measurement of Landreau's deposits, I myself read the official reports pub- 
 lished at the time, one by Peruvian officials and the other by English engiueers sent 
 over by European bondholders; and the English engineers found a larger amount 
 than the Peruvians. The loan of $200,000,000 was made between 1868 and 1870, in 
 Balta's time. In 1873 Pardo wanted to make another loan. The measurements were 
 made about 1868 and 1869. The loan of $100,000,000 through Dreyfus was made in 
 February, 1880. The Cochet deposits were not exhausted when Landreau's were 
 measured, in fact are not exhausted yet. 
 
 I have an original copy in Spanish of the pamphlet which I recently published (in 
 English) for Mr. Shipherd. It cost me nearly $8,000 cash. It was brought from 
 amoug the papers of the Peruvian Senate. I keep the original pamphlet in Lima, and 
 a copy of it (in Spanish) in Philadelphia. There can be no doubt whatever of the 
 genuineness of the original. I have a copy of another pamphlet written and pub- 
 lished by Cochet before 1840. This I received from Gelacio Cochet, as also the photo- 
 graph ot his father, from which the cut I gave Mr. Shipherd was engraved. This pho- 
 tograph I have in Philadelphia. 
 
 1 first began to observe the guano business particularly in 18d0, when I was the pre- 
 ferred man to load guano under contract. I spent ten months there in perfecting mr 
 arrangements to take the contract, out of which Calderon (a cousin of the provincial 
 President, to whom the contract was given in my absence) is said to have made 
 $12,000,000. In 1874 I was again the preferred man, but was once more absent when 
 the award was made. 
 
 During the last twenty-one years I have watched the business closely in Peru and 
 in this couutry, and the figures which I gave Mr. Shipherd, and which he has put into 
 his pamphlet, are summaries and averages of official statistics which I have myself 
 read in the official journals, and which I am prepared to verify by original proofs at 
 the proper time. 1 personally and well knew the house of Anthony, Gibbs &• Co., at 
 Lima, as also John T. Ford, ever since he first came to Lima to open the Bank of Mex- 
 ico, London, and South America, the first bank ever opened in Lima, and Dreytus 
 when he was a retail dry-goods merchant, before he went into guano first.. 
 
 The account I gave Mr. Shipherd of the manuer in which Dreytus got his first 
 guano contract was town talk; it was universally reported, and never questioned as 
 to its accuracy. I intimately knew all the leading guano men of Peru during my resi- 
 dence there, including Schell, Dreyf us's partner — who grew very wealthy ; and Don 
 Filipo Baredas, Whitt, Schntt & Co., and Scbama Condeya. 
 
 I also intimately knew Presidents Pardo, Prado, Pie"rola, Balta, Castija, and Calde- 
 ron. For about fifteen years under Castija I had every contract the government gave 
 out ; no other man had one. 
 
 As to the nitrate business, my attention was called to it by Mr. James Matthews 
 about twenty years ago— say 1860. I never was in it myself, but I noticed that, John 
 Gildermeister, Anthony, Gibbs & Co., Schama Condeya, and every one else who was 
 largely in the business made fortunes out of it. Aside from the names above given, 
 the chief operators in nitrate were Chelauos. President Pardo went into it very 
 largely just before he was killed. 
 
 The figures I gave Mr. Shipherd and which he published in his pamphlet are 
 based upon the official returns published monthly and quarterly, which I made a habit 
 of reading myself, as they appeared for many years. 
 
 The extract printed at the foot of page 43 in Mr. Shipherd's pamphlet is from the 
 pamphlet for which I paid nearly $8,000, as above recited ; its accuracy Mr. William- 
 son and I tested by personal examinations of the original files of the Correoand Com- 
 ercio therein referred to. These examinations were chiefly made by Mr. Williamson, 
 but in my presence and with my help, in the public library in Lima. 
 
 There can be no question as to the substantial accuracy of that extract. 
 
 P. HEVNER. 
 
 Sworn to before me this 11th day of July, 1881. 
 
 CHAS. SPIRO, 
 Notary Public, New York County. 
 
634 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 City and County of New York, ss : 
 
 Peter Hevner, being duly sworn, says : 
 
 I have read the Prospectus of the Peruvian Company and the reprint of papers exe- 
 cuted by Gelaeio Cochet, and I hereby state for the guidance and safe reliance of Ja- 
 cob R. Shipherd and whomsoever else it may concern, that the statements of fact in 
 the said Prospectus are substantially true to my own knowledge, and that the agree- 
 ment of sale and powers of attorney, as printed and signed by me for identification , 
 are true copies of a trae translation of the originals in Spanish, and that the said orig- 
 inals were duly executed and delivered by Gelaeio Cochet in my presence for the uses 
 and purposes therein specified. 
 
 P. HEVNER. 
 
 Sworn to before me this 23d day of May, 1881. 
 
 FRED. F. NUGENT, 
 Notary Public (14) New York County. 
 
 [Private. Copy No. 71.] 
 
 Note.— Only a limited number of copies of this Prospectus is printed, and tbese are for the strictly 
 private nse of the gentlemen in whose hands they are immediately placed. Not only is no offer of 
 stock to be made to the public, bat until the organization is finally complete, and its executive policy 
 settled, no information of its existence or plans is intended for the public. The proprietors rely upon 
 the courtesy of those to whom these copies are intrusted, and of those under whose eyes they may 
 fall, to observe the confidence implied in the premises. 
 
 PROSPECTUS OF THE PERUVIAN COMPANY. 
 I.— HISTORICAL SKETCH. 
 
 In the year 1833, the Government of Peru, by published decree promised to every dis- 
 coverer of valuable deposits upon the public domain a premium of one-third of the 
 discovery ; this as an incentive to the development of great natural resources vaguely 
 known to exist. The condition of the Peruvian people at this time has been well de- 
 scribed by an American capitalist, for more than thirty years resident at Lima, and 
 familiar by personal exploration with the entire country: 
 
 "The exhausted condition in which the young republic was left, after the agitated 
 «ra of emancipation and the civil contentious which followed, brought about a period 
 of inanition which had its crowning point in the general belief that now that the Pe- 
 ruvian people were their own masters, they had nothing to do but enjoy their so-called 
 liberty. Commercial pursuitsthey left to foreigners ; mining and agricultural industry 
 was scarcely thought of; invitations were made to the world at large to come and par- 
 take of the wealth which the former offered to the enterprising capitalist, and the 
 latter was consigned almost exclusively to the forced labor of the slave population ; 
 both being attended by too great trouble on the part of their natural owners, to care 
 minding about ; and an extraordinary stress was laid on the development of the re- 
 sources of the country by foreigners, which would enable the natives to live at ease 
 without the obligation of putting their hand to work so far inferior to their habits. 
 
 " For the first sixteen years this indolent system was indulged in, mingled occasion- 
 ally with scenes of bloodshed and civil war, in order to acquire a mastery over the 
 expiring elements of former greatness, the only step made toward openino- up the re- 
 sources of the country being confined to the establishment about the year 1830 of the 
 nitrate industry in the province of Tarapaca." 
 
 II.— THE DISCOVERER OF GUANO. 
 
 The narrative from which we have just quoted continues: 
 
 " In the beginning of the year 1830, Alexandre Cochet, a Frenchman, a chemist, and 
 -a man of superior information, occupied himself in the laborious work of manufactur- 
 ing nitrate of soda in a small oficina in the above-named province ; and being a man of 
 quick intelligence, and a careful observer, he soon came to understand that the valu- 
 able properties contained in the guano — an article only known to the native cultivators 
 of the soil — would be eminently useful as a restorative to the exhausted lands o£ the 
 old continent. With this idea, he made himself completely master of the mode of ap- 
 plication adopted by the Indians and small farmers in the province where he resided • 
 and after a careful investigation of the chemical effects produced on the land by the 
 proper application of this regenerating agent he proceeded in the year 1340 to the 
 capital (Lima) in order to interest some of his friends in this new enterprise. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 635 
 
 "Not without great persuasion and much hesitation, he induced his countryman, 
 Mr. Achilles Allier, to take up the hazardous speculation and join with him in his dis- 
 covery. He succeeded, however, and toward the end of the same year (1840) the firm 
 of Quiroz & Allier obtained a concession for six years from the Government of Peru, 
 for the exportation of all the guano existing on the afterward famous islands of Chin- 
 chi, for the sum of sixty thousand dollars. 
 
 " In consequence of the refusal of that firm to admit Cochet, the discoverer, to a 
 participatiqn in the profits growing out of this contract, a series of lawsuits resulted, 
 and a paper war ensued in which Coohet was baffled. In vain he called the attention 
 of tbe government to tbe*nature and value of this discovery ; he was told that he was 
 a 'visionary.' In vaia he demonstrated that the nation possessed hundreds of millions 
 of dollars in the guano deposits ; this only confirmed the opinion of the council of state 
 that he was a madman. In vain he attempted to prove that one cargo of guano was 
 equal to fourteen cargoes of grain ; the council of State coolly told him that the guano 
 was an article known to the Spaniards, and of no value ; that Commissioner Hnmbolt 
 had referred to it, and that they could not accept his theory respecting its superior 
 properties, its value, and its probable use in foreign agriculture at a period when no 
 new discovery could be made relative to an article so long and of so evident small 
 value. 
 
 " Thus the Peruvian Government, instead of accepting Cochet's calculations actually 
 prolonged the term of the concession given to Quiroz & Allier from that of six years 
 to a period of nine, and even discussed the question of whether they should dispose of 
 the guano at all for foreign consumption, instead of retaining it for the exclusive use 
 of the national agriculture, regarding with perfect indifference the estimated value of 
 the article, represented by Cochet in hundreds of millions of dollars. 
 
 "At length a new light began to drawn ou the lethargic understanding of the 
 officials in power ; and as rumors continued to arrive from Europe confirming the as- 
 severations of Cochet, and announcing the sale of guano at from ninety to a hundred 
 and twenty dollars per ton, a degree of haste was suddenly evinced to secure once more 
 for the public treasury this new and unexampled source of wealth. Proceedings were 
 adopted to annul the concession given to Quiroz & Allier, and at one blow the con- 
 tract with them was reduced to one year. 
 
 "The litigious spirit was again revived, and these men, who were the first to open 
 up the guano enterprise, and who had counted upon the possession of untold millions, 
 were summarily ejected from the deposits, and their claims canceled by the payment 
 of ten thousand tons of guano which Congress decreed them. 
 
 "There still remained to be settled the just and acknowledged indebtedness for 
 benefits conferred on the country by Cochet, benefits which could not be denied, as 
 wealth and prosperity rolled in on the government and on the people ; but few, if any, 
 troubled themselves about the question, to whom they were indebted for so much good 
 fortune, nor had time to pay particular attention to Cochet's claims. 
 
 "As in all great controversies, and in order to debate as much as possible the value 
 of the Quiroz claims, expediency compelled the Peruvian Congress to play off the ex- 
 alted pretensions of the one against the modest assertion of the other. Congress, 
 therefore, arrived at the conclus on that if Quiroz & Allier were the first to introduce 
 guano into Europe, as an article of commerce, they were only induced to do so by 
 Cochet's disclosure to them of the great value of its chief element — ammonia ; a secret 
 of which he alone was the original discoverer; and this suggestion was amply con- 
 firmed by the fact that Quiroz & Allier offered it in the European markets as crude 
 ammonia only. , 
 
 "But as Cochet continued to descant on its value as a wonderful fertilizer, the sub- 
 ject at length engaged the attention of the. heads of the mercantile houses established in 
 Lima, and very soon competitors were found to undertake the consignment and sale of 
 the article in England, with the offer of liberal loans to government on condition of 
 securing the consignment. Thus, almost involuntarily, Congress was led to declare 
 Cochet the true discoverer of the value, uses, and application of guano for European 
 agriculture, and a grant of five thousand tons was made in his favor, September 30th, 
 1849, but was never paid him. 
 
 "After passing a period of years in hopeless expectancy, from 1840 to 1851, his im- 
 poverished circumstances made it necessary for him to endeavor to procure, through 
 the influence of his own government, that measure of support in favor of his claims 
 which would insure him a competency for his old age. 
 
 " He resolved on returning to France, after having spent the best part of his life in 
 the service of a country whose cities had risen from desolation to splendor under the 
 sole magic of his touch ; a touch that had in it for Peru all the fabled power of the 
 long-sought ' philosopher's stone.' " 
 
 It was this discoverer of guano who also first took quinine from Peruvian bark, and 
 who was among the first to develop the exhaustless wealth of the groat nitrate beds. 
 For the discovery of quinine the Government of Bolivia gave him a voluntary testimo- 
 
636 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 nial of $10,000 ; for revealing to Peru §1,500,000,000 worth of guano the large-promis- 
 ing Peruvians have not yet found it convenient to pay to him or to his heirs a sipgle 
 dollar. 
 
 In 1853 Coehet returned to France ; bnt he was then already exhausted by enthusi- 
 astic explorations in a deadly climate, and never rallied. He lingered in poverty and 
 obscurity for eleven painful years, and died in Paris in an almshouse in 1664, entitled 
 to au estate worth $500,000,000— the richest man in the history of the world — and was 
 buried by the city in the potter's field ; bis wonderful history well illustrating afresh the 
 fact that truth indeed is stranger than any iiction. The fancies of the Arabian Nights 
 dale before the text of this plain biography. 
 
 III. — A SECOND DICOVERER. 
 
 About the year 1844, Jean Theophile Landreau, also a French citizen, in partnership 
 with his brother John C. Landreau, a naturalized American citizen, npon the faith of 
 the promised premium of 33J per cent, entered upon a series of extended, systematic, 
 and scientific explorations with a view of ascertaining whether the deposits of guano 
 particularly pointed out by Coehet constituted the entire guano deposits of Peru, and 
 with money furnished by his partner John, Theophile prosecuted his researches with 
 remarkable energy, and with great success, for twelve years, identifying beds not be- 
 fore known to the value of not less than §400,000,000. Well aware, however, of the 
 manner in which his fellow-countryman had been neglected by an unprincipled peo- 
 ple, he had the discretion to keep his own counsel, and to extort from the Peruvian 
 authorities au absolute agreement in advance, before he revealed his treasure. This 
 agreement was, indeed, for a royalty of less than one-sixth the amount promised, but 
 the most solemn assurances were given that the lessened amount would be promptly 
 aud cheerfully paid ; its total would give the brothers each a large fortune, and pay- 
 ments were to begin at once. 
 
 The solemn agreement having been concluded and duly certified, the precious de- 
 posits having been pointed out and taken possession of by the profligate government, 
 the brothers were at first put off with plausible pretexts of delay, and when these 
 grew monotonous, the government calmly issued a decree recognizing the discoveries, 
 accepting the treasure, and annulling the contract, with a suggestion that a more suita- 
 ble agreement might be arranged in the future. 
 
 An eye-witness writes : 
 
 "The now recorded history of Coehet has been repeated, after fifteen years, in the 
 person of Mr. Landreau, to whom the Central and Southern American republics owe 
 something for his interesting information regarding their productions aud on the canal 
 question. Landreau has also explored Peru, and has there followed up with success 
 that which' was initiated by Coehet. He has pointed out to the Peruvian Government 
 the numerous deposits of huano discovered by him, making an aggregate of value only 
 to be compared with that once contained in the Chincha Islands ; by this means he fur- 
 nished the government with substantial material, which enabled it to raise its siuking 
 credit and realize the financial transactions of 187U, through the contract Dreyffus, and the 
 stupendous loans for the construction of railways. But for these signal benefits, Lan- 
 dreau has, as yet, not received one single cent, notwithstanding the issue of a decree 
 recognizing in his favor six per cent, of the estimated value of his discoveries. It is 
 easy to see that the same recognitions, and the same promises, and those pompous 
 offers made toward Coehet have been lavishly bestowed upon Landreau, to end, proba- 
 bly, in a similar way, even with all his rights and titles and contracts, upon which he 
 grounded his hopes of recompense. 
 
 " The following is a summary of his case : 
 
 " In the year 1856 Landreau revealed to the Peruvian Government the fact that he 
 had made fresh huano discoveries. Shortly after this a conspiracy was got up against 
 him, he was incarcerated, and his papers instantaneously disappeared from the minis- 
 terial chambers. Landreau, nothing daunted, renewed his documentary titles of 1856 
 in 1859, and was so far fortunate as to secure in November of 1865 an official recognition 
 of the premium of six per cent, on the value of bis deposits, by decree and public con- 
 tract made in his favor, thus baffling all the hostilities raised against him, even on the 
 part of the French legation. 
 
 " In the year 1868 the government published a list of all the deposits of huano dis- 
 covered by him ; and by so doing, confidence was restored, the Dreyffus contract was 
 entered into, and loans to the amount of two hundred million of dollars were ob- 
 tained. 
 
 " He could render them no further service to the government, and steps were 
 taken to annul his contract and rid the nation of an importunate creditor. He 
 was waylaid by President Pardo's secret police at the entrance of his house on the 
 night of the 20th February, 1874, maltreated, stabbed, and left for dead. Since that 
 date he has been an invalid ; and, last of all, the supreme court of the country has de- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 637 
 
 clared itself incompetent to hear or decide his case against the government. This 
 action, if undertaken by their judges in their superior Wisdom, would have told more 
 against them than their places on the bench are worth. 
 
 " After twenty-three years of patient labor, of listening to inexhaustible propositions, 
 and of vain attempts at a settlement, Landreau has succeeded in tiring out the patience 
 of this government and the courts, who have cast him off with the pleasant decree that 
 he may look for justice in the manner and form in which it may seem most convenient 
 for him. Such is the way they manage these small things in Peru." 
 
 The complacenoy with which the Peruvian judiciary evade ,an uncomfortable issue, 
 and relieve themselves of a too successful plaintiff will appear best from the official 
 records. 
 
 The contract grudgingly made with Landreau to secure his seoret contained a clause 
 conijning him for all purposes of redress to the Peruvian courts. With this limitation 
 in mind, the professional reader will not fail to enjoy the brief of plaintiff's attorney, 
 and the opinions at nisi prius, general term, and the court of last resort, with the 
 comment of eminent local counsel appended : 
 
 Transcripts from the official records in the appeal of Jean The'ophile Landreau, partner of 
 John C. Landreau, to the Tribunal Besponsibilidad of Peru. 
 
 " Manuel Aribe, in the name of Jean Tbeophile Landreau, appearing before your ex- 
 cellency, with due respect has to state, that conformably with the certified copy of the doc- 
 ument which 1 herewith accompany, it will be seen that on the2d of November, 1865, the su- 
 preme decree of the 24th of October of the same year was duly constituted in an authentic 
 public instrument, by which the supreme government accepted the denunciation which 
 Mr. Landreau made some years before of various deposits of hnano, both existing on 
 islands and on the mainland, containing more than five millions of tons. In this de- 
 cree the conditions of the acceptance of said denunciation were fixed, and these are 
 contained in the six clauses comprehended in said decree, the same being also accepted 
 by the grantee expressly, as was required of him by the sixth clause of the decree, by 
 which means the contract, being then concluded, was transcribed in the legal form of 
 a public authentic document, before Don Claudio Job6 Suarez, notary public. As your 
 excellency will observe, by the first clause, my constituent assumed the obligation to 
 make known to the supreme government and present a list of the deposits of huano he 
 had denounced, delivering up a similar list with that already deposited in the Eng- 
 lish, French, and United States legations. 
 
 " These deposits were not known in Peru as deposits of huauo, and this is manifest 
 from the fact that in the course of the examination of the papers an official order was 
 issued to consign in them a list of all ths known deposits of httano up to that date, which 
 was done at the request of my constituent in order to avoid future questions. 
 
 '■Your excellency will also observe that by the 2d clause the premium to be awarded 
 him was as follows : 10 per cent, upon the net product of huano, if this did not exceed 
 a million of tons ; 8 per cent, upon that which exceeded one million and did not reach 
 two millions; 4 per cent, upon what exceeded three and did not reach four millions, 
 and 2 per cent, upon all that exceeded four and did not reach five millions, and any 
 quantity in excess of this latter to bear no premium whatever. Hence arises the right 
 of my constituent to 10 per cent, of the net product on the number of tons of hnano 
 extracted and sold from the denounced deposits comprehended in the list delivered, 
 and which the snpreme government caused to be published in the official journal of 
 the capital. (Peruano 31 dicr. 1868.) 
 
 " Your excellency will also observe that by the 3d clause my constituent was obliged 
 to limit proceedings relative to the fulfillment of his contract to the action of the tri- 
 bunal of Peru ; for which reason he comes now before your excellency's court as being 
 the judicial authority constituted to pronounce judgment on the contract celebrated 
 with the supreme government, according to the fourth section of the lbth article of 
 the Tribunal Regulations. 
 
 ''Your excellency will further observe that by the 4th clause it is prohibited on the 
 part of my constituent or his representatives to interfere directly or indirectly in the 
 contracts of consignment or others which the supreme government may celebrate re- 
 garding huano from the said deposits, it being established that his right is limited to 
 demand the part which, according to the respective accounts, appertains to him ac- 
 cording to the percentage already indicated. 
 
 " In the 5th crause it is stipulated that the working of the deposits rests at the will 
 of the supreme government, and in the 6th and last clause that if it can be clearly 
 proved that there existed in the government or in any other authority any official or 
 private information regarding the deposits thus denounced, that this concession would 
 lose its effect. 
 
 " There is not the least doubt therefrom, that my constituent has a perfect right to 
 demand the 10 per cent, of the net product of the deposits he has denounced, and which 
 
638 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 are consigned in the lists presented to the minister of finance and accepted by the su- 
 preme government, ordered to be published, and were published in the Peruano of the 
 31st of December, 1868, and that the account of sales of huano will serve to ascertain 
 the selling prices agreeably to the stipulation contained in the 4th clanse of said con- 
 tract. 
 
 " Well, then, as my constituent desired to avoid any questions whatever, he applied 
 to the supreme government for the exhibition of the account of sales of the huano 
 taken from the deposits of Ballestas and Chanavaya ; and as he has been unable to ob- 
 tain any answer to his representations, he is under the hard bnt indispensable neces- 
 sity of appearing before yonr excellency's court in order to require delivery of such 
 accounts, so as to be able to exact the payment of the 10 per cent, on the net price of 
 huano sold, as he is entitled to upon the first million of tons. 
 
 " Since July, of 1870, 1 have to state, as I am so instructed latterly, that the Islands 
 of Ballestas have been worked, and, as appears from the publication of the Patria news- 
 paper of 20th of October, 1874, that 57 cargoes have been shipped to foreign countries 
 from these islands — 57 cargoes with 76,771 tons of hnaDO. Besides this quantity, and 
 according to the official journal El Peruano of the 23rt July, 1870, there have been taken 
 from the Ballestas 125,000 tons of huano for the purposes of the national agriculture. 
 Ballestas is one of the deposits denounced by my principal, and is included in his list 
 under the number 15. From Chanavaya there has been taken 137,000 tons of huano, 
 as appears from the reports before the central junta of engineers of this capital, and 
 Chanavaya is included in his list under number 33. I understand also that there are 
 other deposits working which were denounced by my principal. It being a right, ac- 
 cording to my principal, to take 10 per cent, of the net proceeds of the huano sold, it 
 appears evidantthat his action is open to solicit the exhibition or presentation of said 
 account sales on the part of the supreme government, in order that he may make the 
 demaud for his 10 per cent. To this end I implore your excellency to admit the certi- 
 fied copy of the power of attorney conferred on me as well as that of the contract made 
 between the supreme government and my constituent, and judging of its merits, espe- 
 cially those of the 4th clause, as well as from the argument adduced, your excellency 
 will order a missible to be passed to the supreme government to the effect that the ac- 
 counts of sales of huano taken from the deposits called the Ballestas and Chanavaya be 
 remitted, as well as of that taken from the other deposits denounced by my principal, 
 which have been worked. I ask justice. 
 
 "MANUEL ARIBE. 
 
 " Lima, 21st June, 1875. 
 
 "Note. — The missible above referred to was passed to the supreme government, was 
 replied to, and all the documents were remitted Jm the supreme court, admitting and 
 submttiug to its jurisdiction. 
 
 "Sentence of the first hall judging in the first instance. 
 
 " Lima, 19th February, 1876. 
 " With the opinion'of the attorney-general, and seeing that the petition of the pro- 
 curator of Mr. Jean Theophile Landreau is not comprised in any of the cases designated 
 in the 18th article of the Regulations of the Tribunals, which treat of the special juris- 
 diction of this supreme court, it is declared out of place what has been solicited in this 
 petition; allowing the petitioner to makense of his right how and where he may see 
 it convenient. Sign manual of the three judges, Cossio, Arenas, Cisneros. Lauer, sec- 
 retary. 
 
 " Sentence of the second hall judging in appellation. 
 
 "Lima, Mag 23, 1876. 
 " In view of the process and previous sentence, and taking into consideration that 
 this court ought to abstain from interfering in causes in which it is not competent to 
 judge, and that by the 18th article of the Regulations of the Tribunals (clause 4th) it 
 only can take cognizance of the law pleas which arise out of contracts celebrated by 
 the supreme government, that is to say, as to the interpretation, validity, or nullity of 
 such, to which class that preferred by Jean Theophile Landreau does not correspond, 
 the court confirms the sentence appealed by which this court declares itself incompetent^ 
 Heaving Landreau his right perfectly free to use it where and how he may see it con- 
 venient. They return the process. Signed by Judges Alvarez, Munoz, Vidaurre, and. 
 Oviedo. 
 
 "Sentence of the tribunal of responsibility judging in the last instance. 
 
 " THE ATTORXEY-GENERAi'S REPORT. 
 
 " Tbe attorney-general of this high tribunal says that the minister of finances in his. 
 exposition at page 233 (anterior process) admits the existence of a contract made, and 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA, 63& 
 
 of a premium agreed to on the part of the supreme government in favor of Mr. Jean 
 Thebpbile Landreau, indicating at the same time ' that the petition presented by him 
 before the supreme court relative to delivery of accounts, or exhibition of documents, 
 is premature, because other persons dispute this premium, and it is necessary for the 
 government to know who is the person entitled to claim it with a legitimate right.' 
 
 " In view of this statement the attorney -general believes that the supreme court 
 ought to decide in this case, whether the petition of Landreau is a legal one or not, 
 treating the question as an incident relative to the contract, and mentioned at page 
 233, and to which the 4th clause of the 18th article of the Regulations of the Tribunal* 
 is applicable, and opines that the supreme sentence registered at page 228 and page 
 233 of the anterior process is null. 
 
 "HEROS. 
 
 "Lima, September 17, 1878. 
 
 "SENTENCE. 
 
 " With the report of the attorney-general, they declare there is no nullity in the 
 sentences of the supreme court under date of 23d of May, 1876. Confirmatory of that 
 of 19th of February of the same year, in which it is declared to be out of place, the 
 request of Mr. Jean Theophile Landreau in his petition at page 220, and they return 
 the process. Signed, Garcia & Garcia, Pino, Lizarraga, Velarde, Gomez, Sanchoz, 
 Benavidez, Juguuza, Manuel Pation, secretary. 
 
 "CONSULTATION OP FOUR JURISCONSULTS. 
 
 "Doctors Man'l W. Chipote, M. Arnezaga, Cecilio Corzo, and S. Caceres, state the 
 following in their consultations : 
 
 "1st. That conformably with the 4th clause. of the 18th article of the regulations 
 of the Tribunals, the supreme court is the only competent tribunal to judge of the dis- 
 putes which result from contracts made between the government and individuals. 
 
 "2d. That being their duty to pronounce judgment on the incidents which rise out of 
 the law pleas and contracts, the supreme court as well as the tribunal of responsi- 
 bility have committed a grave denial of justice against Landreau declaring them- 
 selves incompetent the first and confirming the second, this sentence respecting Lan- 
 dreau's petition in which he asked for the delivery or exhibition of accounts according 
 to the law of the country. 
 
 " 3d. That the denial of justice appears much more fiagraut, inasmuch as the su- 
 preme court and the tribunal of responsibilities have delayed their sentence for three 
 years and four months, when the law only allows them a term of forty days to pro- 
 nounce sentence in the last instance. 
 
 " (Article 1748, Civil Code)." 
 
 The results of this litigation had the effect of canceling the restriction in the origi- 
 nal contract, the courts concurring in " allowing the petitioner to make use of his 
 right how and when he may see it convenient." 
 
 He "saw it convenient" next to invoke the aid of his own government — France — 
 but influences which it is unnecessary to define here easily thwarted his application in 
 that quarter. 
 
 After that, application was made to the United States legation, and ultimately to 
 Congress, and the history of these negotiations will sufficiently appear from the offi- 
 cial documents next following : 
 
 I. 
 
 [Forty-fifth Congress, third session. House of Representatives, Ex. Doe. -No. 35.] 
 
 CLAIM OF JOHN C. LANDREAU. 
 
 Message from the President of the United States transmitting a communication from the Sec- 
 retary of State in reference to. the claim of John C. Landreau against the Government of 
 Peru. 
 
 January 24, 1879.— Referred to the Committee on Foreign A ffairs and ordered to be printed. 
 
 To the House of Representatives : 
 
 In answer to the resolution of the House of Representatives of the 7th instant, I 
 transmit herewith a report from the Secretary of State, with its accompanying papers. 
 
 R. B. HAYES. 
 
 Washington, January 24, 1879. 
 
■640 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 Department of State, Washington, January 23, 1879. 
 To the President : 
 
 The Secretary of State, to whom waa referred the resolution of the House of Repre- 
 sentatives, of the 7th instant, requesting the President, if not incompatible with the 
 public interest, to furnish to that House " an abstract of such correspondence and 
 other papers as may be on file in the State Department touching the claim of John C. 
 Landreau against the Government of Peru," has the honor to submit the following re- 
 port and accompanying papers in answer to the resolution. 
 
 This claim originates in alleged extensive discoveries of guano deposits, in localities 
 previously unknown or nnworked, made within Peruvian jurisdiction between the 
 years 1844 and 1856, by Jean Theophile Landreau, then and still a French subject. 
 Under the compendium of old Spanish law, known as the " Nueva Recopilacion, " 
 which forms the basis of the legislation.of Peru, and under specific enactments to that 
 end, it is claimed that the discovery of property belonging to the state is to be re- 
 warded by the payment of one-third of its value to the finder. In 1856 Jean Theophile 
 Landreau, having previously associated with himself in the enterprise his brother, 
 John C. Landreau, an undoubted citizen of the United States, made known his dis- 
 coveries to the Peruvian Government, and solicited the recompense alleged to be due 
 therefor. Since that time the claim has been pressed with varying fortunes. Succes- 
 sive administrations of Peru have, by correspondence, contract, and decree, recognized 
 from time to time the justice of the claim, in principle, and offered compensation in 
 the form of graduated percentages on the amount of guano actually extracted from the 
 discovered deposits, but the offers have as frequently been postponed or rescinded, and 
 up to the present time Jean Theophile Landreau has received from the Government of 
 Peru no compensation whatever. 
 
 The American citizenship of one of the brothers brought the claim at an early stage 
 before this government, which, after a time, recognized the justice of the claim of John 
 C. Landreau to a share in the profits of hiB brother's enterprise,-and instructed the 
 minister of the United States at Lima to use his good offices unofficially in his behalf. 
 The correspondence and papers in the case which have accumulated in the Department 
 during the last fifteen years or more, amount to some hundreds of documents, many of 
 them of considerable length, but which are, for the most part, immaterial as elements 
 of the " abstract" called for by the resolution. Most of the points of interest in de- 
 termining the American citizenship of John C. Landreau, and his right to participate 
 in the recompense claimed by his brother, are contained in an opinion, submitted on 
 the 16th of June, 1874, to the then Secretary of State, Mr. Fish, by the examiner of claims 
 of the Department of State, Henry O'Connor, esq. A copy of the material part of that 
 opinion is herewith transmitted as coming within the purview of the resolution. A copy 
 ofthe instruction addressed by the Department, on the 25th of July, 1881, to the United 
 States minister at Lima, Mr. Francis Thomas, in which he was, pursuant to the opinion 
 ofthe examiner of claims, instructed to use his good offices in the adjustment of the 
 claim, is also transmitted. 
 
 At the time of Mr. O'Connor's opinion, the French Government had but imperfectly 
 supported the claims of its own citizen, Jean Theophile Landreau, owing, it is repre- 
 sented, to the unfavorable influence exerted by its representatives in Peru. It is now 
 understood that that government is disposed to take action on the claim, as will ap- 
 pear from a report of Mr. Gibbs, the present minister of the United States at Lima, 
 dated June 20th, 1877, giving a succinct abstract of the history of the case as shown 
 by the files of his legation, and ^its situation at the time, which report is also appended 
 in compliance with the resolution. The present status of the claim is believed to be 
 practically unchanged, except so far as it may be strengthened by the presentation of 
 additional proof pf the joint interest of John C. Landreau in his brother's scheme. 
 
 All of which is" respectfully submitted, 
 
 WM. M. EVARTS. 
 
 List of papers. 
 
 1. Opinion of the examiner of claims. June 16th, 1874. [Extract.] 
 
 2. Mr. Fish to Mr. Thomas. No. 92. July 25th, 1874. 
 
 3. Mr. Gibbs to Mr. Evarts. No. 169. Lima, June 20th, 1877. 
 
 No. 1. 
 
 Bureau of Claims, June 16, 1874. 
 Subject.— Claim of the brothers J. Theophile Landreau and John C. Landreau, against the Govern- 
 ment of Peru, on account of guano discoveries made by Landreau (J. T.), in accordance with a Dublic 
 authorization of the government. F 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 641 
 
 The Landreans were both originally French citizens. J. The'ophile Landreau, who is 
 the active man in these Peruvian transactions, the man who made the alleged dis- 
 coveries, and who dealt directly with the Peruvian authorities, is still a French citi- 
 zen, never having changed his nationality. John C, his brother, an alleged partner 
 in the Peruvian transactions, is a citizen of the United States. His certificate of 
 naturalization, a copy of which is submitted with the papers now before me, shows 
 that he came to the United States in 1857, being then a minor under the age of 18 
 years ; that he was admitted to citizenship in the sixth district court of Louisiana, at 
 New Orleans, on the 3d of June, 1867 ; and it further appears that he has been a resi- 
 dent of Hermitage, Louisiana, ever since 1857. 
 
 As it is only in virtue of this citizenship of John C. Landreau that the aid of this 
 government may be invoked in behalf of the claim, the first important question to be 
 established is that of John C.'s interest in the transaction, and, assuming that he has 
 such interest, at what dare he acquired it. 
 
 Upon this question Mr. Brent had submitted no papers. Among the inclosures to 
 Mr. Thomas's present dispatch is a copy of a correspondence between the brothers 
 Landreau, running from December, 1858, to February, 1870 (Inclosure B). The part- 
 nership of John C. with his brother Theophile in the Peruvian business forms the topic 
 of all these letters, sixteen in number. 
 
 In letter No. 1, December 22d, 1858, The'ophile advises John of his success in making 
 rich discoveries of guano in that country, all of which he says belongs to Peru. 
 
 In No. 2, dated July 15th, 1859, The'ophile says : 
 
 "For my part, I accept you as my partner in this business, as well as the advice yon 
 give regarding it, and at the same time wait with great impatience the receipt of the 
 five thousand dollars which you say shall be sent to ine." 
 
 In No. 3, January 2d, 1860, The'ophile acknowledged receipt of John's letter of the 
 15th of October previous, handed to him by a Mr. Charles Johnson, together with a 
 package containing 125 double American gold eagles, of $20 each, and 250 gold Ameri- 
 can eagles of $10 each, in all $6,250. 
 
 In No. 4, March 1, 1860, Theophile writing to John, refers to the opinion of a high 
 Peruvian authority that for the discoveries made by Landreau the government ought 
 justly to pay them a royalty of 33 per cent. 
 
 These letters, which number sixteen in all, continue on the same subject, giving a 
 detailed account of the discoveries made, and also of the efforts to have the claim rec- 
 ognized and adjusted by the Peruvian Government. 
 
 These letters were not among the papers inclosed by Mr. Brent. They were evidently 
 not taken into consideratson by him in making up his opinion on the merits of the 
 claim. The evidence furnished by the letters in question tends to establish two mate- 
 rial facts : 
 
 1st. That John C. Landreau had an interest in the discoveries ; and, 
 
 2d. That such interest existed long anterior to the date of the concession made by 
 the government in November, 1865. 
 
 That these two propositions were not established by proof was one of the reasons 
 assigned by Mr. Brent for pronouncing against the claim. 
 
 3d. The most material question to be cojisidered is the nature of the obligation of 
 the Peruvian Government to the parties maiing the discoveries. It cannot, in my opin- 
 ion, be viewed in the nature of a private contract. It is deducible from the public 
 acts of Peru. Among the inclosures to this dispatch (Thomas, 61) are copies of several 
 decrees on the subject. 
 
 No. 1, dated April 17th, 1847, reciting several laws of the republic and the further fact, 
 that many natural productions exist, etc., which do not produce any benefit to the 
 treasury, it is enjoined upon the attorneys of the government to give notice to the dis- 
 coverers, giving to them one-third part of the value of such discoveries. 
 
 No. 2, dated December 30th, 1859, is an extract from the opinion of the attorney-gen- 
 eral, advising the minister of the treasury that he can accept the discoveries of Lan- 
 dreau, giving to him one-third part of the value of guano discovered, according to what 
 is ordered inparagraph 6 of the vote of the Congress of the government, 13th February, 
 1833. 
 
 No. 3, October 24th, 1865, authorizes a contract with Landreau, and fixes the terms : 
 10 per cent, on the first million tons ; 8 per cent, on the second million ; 6 per cent, on 
 the third million; 4 per cent, on the fourth million, and 2 per cent, on the fifth million; 
 all above five millions belongs to the government, free of royalty. Neither Landreau 
 nor any person can commence any legal proceedings before any other tribunals or 
 authorities than those of the republic, and according to the laws of the country, re- 
 nouncing expressly all diplomatic intervention. 
 
 Next follows a schedule of the discoveries made by Landreau. They appear to be 
 extensive and of great value. 
 
 No. 5, December 12th, 1868, is a decree declaring the contract with Landreau null 
 and void, alleging as a reason that the premium stipulated to be given him by thegov- 
 
 S. Ex. 79 41 
 
642 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 ernment is of such great amount that it can never he paid, and providing for a com- 
 missioner to examine the quality of the deposits, etc., with a view to a new contract. 
 
 The above comprises all the new facts furnished by Mr. Thomas which can be deemed 
 material. The remaining inclosures relate to the personal issue with Brent. 
 
 Conclusion. It appears to be established : 
 
 1st. That Landreau made extensive discoveries of guano; that they were of great 
 value, and that the benefits inured to the Government of Peru. 
 
 2d. That the explorations were undertaken by him on the faith of the decrees of the 
 government, holding out the promise of a royalty of 33 per cent, to discoverers ; ex- 
 pressly declaring ihat it was open to foreigners and citizens of the republic alike. 
 
 3d. That the discoveries made by Landreau were the result of great labor, research, 
 and skill on his part, continued through several years. 
 
 4th. That large sums of money were expended by the Landreaus in making these 
 discoveries, and that much of this money was furnished by John C. Landrean, a citi- 
 zen of the United States, and that the money was transmitted by the latter from the 
 United States to his brother in Peru. 
 
 5th. That the action of the Peruvian Government, as evinced by its decree of the 
 12th of Docember, 1868, declaring the previous concessions to Landrean null and void, 
 is in effect a denial of justice and a violation of the terms of the concession. 
 
 In view of the foregoing premises, I am of the opinion that John C. Landreau should 
 have an opportunity of asserting his claim before the tribunals of Peru, according to 
 the terms of the decree of the 24th of October, 1865. As this remedy, however, seems 
 to be foreclosed to him by the subsequent decree of the 12th of December, 1868, justice 
 and equity alike demand that the Peruvian Government should agree to have the 
 question submitted to some other tribunal, that its merits may be fuily and fairly in- 
 vestigated, and the rights of the claimants determined, without any expression of 
 opinion by the Department on the merits of the claim itself. It appears to me that 
 the circumstances of the case justify its interposition on Mr. John C. Landreau's be- 
 half, to the extent of demanding such an investigation. A reference to arbitration 
 might be the best mode of securing an impan ial hearing to both parties. 
 
 Respectfully submitted. 
 
 HENRY O'CONNOR. 
 
 No. 2. 
 
 Mr. Fish to Mr. Thomas. 
 
 No. 92.] Department of State, 
 
 Washington, July 25, 1874. 
 
 Sir : Referring to your dispatch No. 61, of the 16th of July, 1873, and the Depart- 
 ment's instruction No. 37, of the 18th of March previous, in relation to the claim of Mr. 
 J. C. Landreau against the Government of Peru, I have now to inform you that in a 
 letter recently received from Mr. Landreau, that gentleman again invokes the interpo- 
 sition of this government, with a view of securing for him a recoguition and settlement 
 of his claim by the Government of Peru. 
 
 You are already in possession of the facts in relation to this claim, and the docu- 
 ments and proofs presented by Mr. Landreau in support of it are accessible to yon from 
 the files of your legation. The claim in question being one growing out of a contract 
 which appears to have been voluntarily entered into by Mr. Landreau's brother with 
 the Peruvian Government, belongs to that class of claims regarding the settlement of 
 which it is the settled practice of this government not to interfere beyond the exercise 
 of its good offices ; and even this latter action is confined to cases in which some spe- 
 cial features of an equitable character are found to exist. Upon a recent examination of 
 this case by the Department it bas reached the conclusion that the claim of Mr. Lan- 
 dreau is entitled to some consideration on these grounds. Yon are consequently au- 
 thorized to make use of your good offices, unofficially, with the Peruvian authorities 
 in behalf of Mr. J. C. Landreau, with a view of securing for him from that government 
 a speedy investigation and adjustment of his claim. It is also desired that you will 
 keep the Department advised of your action in relation to the matter, aud of any re- 
 sults that may accrue therefrom. 
 
 I am, sir, your obedient servant, 
 
 HAMILTON FISH. 
 
 Francis Thomas, Esq., etc. 
 
 No. 3. 
 
 Mr. Gibbs to Mr. Evarls. 
 
 No. 169.] Legation op the United States, 
 
 Lima, Peru, June 20, 1877. 
 Sir : In answer to your dispatch, No. 62, of the loth ultimo, referring to the Lan- 
 dreau claim, I have examined all the correspondence that I can find in the archives of 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 643 
 
 this legation in relation to the affair, and will give you a Bketch of it, so that you may 
 judge how the case stands at present. 
 
 I find Mr. Fish wrote to Mr. Brent, the then charge" d'affaires at this legation, March 
 9, 1871, No. 15, inclosing a copy of a letter from J. C. Landreau, at Louisiana, dated 
 February 23, 1871, directed to the Department, complaining of contract which ho 
 alleges that the Peruvian Government had made with him. 
 
 On the 1st of May, 1871, Mr. Brent answers in dispatch No. 256, in which he gives 
 his ideas relative to the claim, doubting the right of tlje United States to use its influ- 
 ence in the affair. The principal reason is, in the primary agreement with Landreau, 
 the government stipulates that no diplomatic intervention shall take place. 
 
 June 23, 1871, No. 79. Mr. Fish writes Mr. Little, then minister, saying that Mr. 
 Brent's conclusions were approved. 
 
 January 11, 1872, No. 25. Mr. Fish writes Mr. Brent, informing him that Mr. J. C. 
 Landreau, under date of 28th of November, 1871, from Louisiana, had written to the 
 Department, making grave charges relative to, his alleged conduct in the connection 
 with this claim. The charges were in a letter inclosed with the dispatch, which also 
 inclosed a copy of. a letter from Mr. Brent dated at Lima, January 13, 1871, to Mr. J. 
 The'ophile Landreau, speaking favorably of the claim, and urging Mr. Landreau to re- 
 turn to Washington to lay the case before Mr. Fisb. 
 
 February 20, 1872, No. 27. Mr. Brent to Mr. Fish, in answer to No. 25, of January 11, 
 with explanations and denial of the charges, and also referring to various documents 
 of which no copies exist in this legation. 
 
 April 2, 1872, No, 34. Mr. Brent informs Mr. Fish that the French Government had 
 ordered its minister to hold no further communication with Mr. J. The'ophile Lan- 
 dreau. 
 
 May 1, 1872, No. 31. Mr. Fish to M r - Brent, answering No. 27, and requesting that 
 Mr. Brent would not take any further steps in the matter. 
 
 Ootober 28, 1872, Mr. Thomas, my predecessor, wrote to Mr. Landreau to call at the 
 legation, as he was prepared to assist him to investigate the claim. 
 
 July 11,1873, No. 61. A lengthy communication dated at Cumberland, Maryland, 
 from Mr. Thomas to Mr. Fish, with a detailed account of the Landreau claim, referring 
 to various inclosures. 
 
 May 28, 1874, No. 75. Mr. Thomas to the minister of foreign affairs. This is the first 
 document I find where the United States take any part in the claim with the Peruvian 
 Government. Mr. Thomas states that, at the request of Mr. Landreau, he incloses 
 from Mr. Landreau to the minister of the treasury protesting against a decree referred 
 to of April 21, 1874, published in the official paper about the guano deposits. Mr. Thomas 
 states that he makes the communication to protect the interests of J. C. Landreau, an 
 American citizen, brother of J. The'ophile Landreau, the discoverer of the guano, and 
 who had purchased in 1859 a half interest in the discoveries. Mr. Landreau, in his 
 letter to the minister of the treasury, in his own name and of his brother, protests 
 against the decree of April 21, and shows that the discoveries referred to were made by 
 him, and mentioned in his lists sent in to the government in 1856 and 1859, the 2d of 
 November, 1865, and in 1868, which were accepted by the government, December 12th 
 of that year, as published in a supreme decree, on the 31st December, in the official 
 paper of Lima. 
 
 May 29, 1874, No. 15. The minister of foreign affairs acknowledges the receipt of 
 this note. 
 
 July 28, 1874, No. 92. Mr. Fish to Mr. Thomas, referring to dispatch from Mr. Thomas 
 of July 16, 1873, says that it is one of the class of claims of which it is the settled 
 practice of the United States Government not to interfere beyond the exercise of its 
 good offices ; but on examination the Department has reached the conclusion that the 
 claim of Landreau is en titled to some consideration, and therefore Mr. Thomas is au- 
 thorized to make use of his good offices unofficially with the Peruvian authorities on 
 behalf of Landreau to secure a speedy invesgation and adj ustment of the claim, also 
 to keep the Department advised. 
 
 August 5, 1874. Mr. Thomas to the minister of foreign affairs, No. 87, inclosing a 
 protest of Landreau to the minister of the treasury, that in so doing, Mr. Thomas 
 states that he is not acting under instructions from his government, nor prepared to 
 make a demand for the claim. 
 
 August 8, 1874, No. 121. Mr. Thomas to Mr. Fish, referring to note of 28th May to 
 minister of foreign affairs, inclosing copy of paper filed by Landreau, showing geo- 
 graphical position of deposits. 
 
 September3, 1874, No. 33. The minister of foreign affairs answers Mr. Thomas note of 
 August 5, with Landreau's protest, taking note of the disclaimer made by Mr. Thomas 
 of not proceeding in the name of the United States Government to prefer a claim. 
 
 Sepiember8, 1874. Mr. Thomas to the minister of foreign affairs, claiming some 
 sixteen letters in power of a Mr. Deboy. These letters .are in the French language, 
 addressed by Mr. J. The'ophile Landreau to J. C. Laudreau, the American citizen, and 
 are evidence of his claim against his brother, or of the assistance given by him to his 
 
644 AFFAIES IN CHILI, PEEU, AND BOLIVIA. 
 
 brother to enable him to make the discoveries of the guano-beds. Mr. Thomas claims 
 them so as to be able to file them in this legation in proof of Mr. J. C. Landreau's 
 right. 
 
 September 18, No. 3(5 The minister of foreign affairs to Mr. Thomas, acknowledging 
 the receipt of note of September 8, and promising to notify the minister of justice of 
 the claim. 
 
 October 13, No. 1S5. Mr. Thomas to Mr. Fish, inclosing copies of six letters and 
 translations in support of Mr. Landreau's claim. 
 
 Mr. Fish to Mr. Thomas, No. lOtf, November 5, aeknowleding receipt of No. 133, of 
 October 13, remarks on the character of the claim, it being merely an implied contract, 
 and that the Department did not regard such questions as of an international charac- 
 ter, and informing Mr. Thomas that his course must be limited to unofficial good offices. 
 
 Mr. Thomas writes February 2, 1875, No. 155, informing tne Department that he had 
 received the sixteen letters that establish the right of J. C. Landreau to one-half of 
 the profits of the guano claim. 
 
 March 12, 1875, No. 112. Mr. Thomas incloses to the minister of foreign affairs 
 copies of the letters referred to above, stating that they are relied upon by Mr. J. C. 
 Landreau, as proof of the rightof Mr. J. C. Landreau, an American citizen, to the claim 
 against the Peruvian Government. 
 
 May 28, No. 2. Mr. Fish, in his instructions to me on my departure from the United 
 States to this post, says that I can proceed unofficially to use my good offices on the 
 claim. 
 
 September 4, 1875, No. 24.— I informed the Department that I had called on the 
 lately-appointed French minister relative to the claim. He informed me that he had 
 instructions from his government to investigate the affair, and had received a history 
 of the claim from Landreau which he had forwarded to his government. 
 
 This is the history of the case as it stands in the archives of this legation. 
 
 Mr. J. C. Landreau is in Paris prosecuting his claim before the French Government. 
 The case is now before the final court here, "responsibilidad," equal to " cassation" in 
 France, which meets seldom. 
 
 I called on the French charg6 d'affaires to-day in reference to the matter. He in- 
 formed me that the Due Decazes, minister of foreign affairs in France, had written 
 asking for the decrees given in the lower courts in 1876. This was answered January, 
 20, 1877. Since then nothing further had been heard from the minister. He also 
 stated that he had written to the department of foreign affairs that he had consulted 
 Mr. Jaquet, the attorney of Landreau, to compromise with the Peruvian Government 
 by taking a certain sum for the claim, and that he believed it would have effect. He 
 informed me that he understood that negotiations were under way to that end. 
 
 From my dispatch on the financial affairs of this country you may judge of the 
 ability or probability of Peru ever being able to pay the claim, even if made good. 
 I am., &c, 
 
 EICHAED GIBBS. 
 
 IV.— BEPOET OF THE COMMITTEE ON FOBEIGN AFFAIES. 
 
 The Committee on Foreign Affairs, to wliom was referred the petition of John C. Landreau, 
 a naturalized citizen of the United States, who seeks the aid of the Gortrnment of the United 
 Stales in furthepanee of his claim against the Government of Peru, having had the same 
 under consideration, submit the following report : 
 
 The claim of the petitioner, John C. Landreau, is set forth in his petition to Con- 
 gress, and is as follows : 
 
 No. 1. 
 
 To the Senate and House of Representatives of the United States of America in Congress 
 
 assembled: 
 
 Your petitioner, John C. Landreau, respectfully represents: 
 
 That he is a naturalized citizen of the United States, and has resided in the State of 
 Louisiana since the year 1857 ; that his brother, J. Thdophile Landreau, is a citizen of 
 France ; that your petitioner and his said brother are creditors of the Government of 
 Peril in the amount hereinaf rer stated ; that the said amount is due to them as copart- 
 ners ; that their claim is founded upon and grows ont of a published decree and proc- 
 lamation of the said Government of Peru ; that their said claim has long since been dne and 
 payable; that it has repeatedly been recognized and admitted as just and valid by dif- 
 ferent administrations of said Government of Peru ; that relying upon said decree and 
 proclamation, the said Theophile being possessed of great experience and extensive 
 scientific knowledge, devoted years of toil and self-denial to, and expended large sums 
 of money in the development of the theretofore hidden and unknown resources of said 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 645 
 
 government; and that during this time your petitioner furnished and supplied large 
 sums of money to the said The'ophile, which were used and applied by him to the ad- 
 vancement of his labors aforesaid, or to satisfy indebtedness by him contracted in pros- 
 ecuting said enterprise. 
 
 That the labors of said Th"6ophile were finally crowned with success, and resulted in 
 great material advantage to said government. 
 
 That the fruits of the discoveries made by said The'ophile have been wholly appro- 
 priated by the said government, without any compensation whatever being made to him 
 therefor ; and this, notwithstanding that thereby the said government has been able 
 to restore and sustain its credit in the financial markets of the world, and notwithstand- 
 ing the wealth and prosperity of said government have been greatly increased and ad- 
 vanced thereby ; that said claim was not paid or satisfied in the first instance, because 
 as was alleged by said government, the sum due said The'ophile by the fair and reason- 
 able construction of the .terms of said proclamation and decree was so large, as to make 
 it beyond the ability of said government to pay or satisfy ; that thereupon and there- 
 after, said government entered into negotiations with the said The'ophile looking to the 
 reduction of said claim to an amount within the financial ability of said government 
 to pay and satisfy ; that the said The'ophile and your petitioner, impelled by equitable 
 considerations, waived their strict and legal rights, and made concessions in the prem- 
 ises. 
 
 Whereupon said government on, to wit, the 24th day of October, A. D. 1865, submit- 
 ted a basis of settlement which was subsequently accepted by said The'ophile and your " 
 petitioner. That notwithstanding the premises, the said government thereafter re- 
 fused to carry out the agreement aforesaid, but wholly disregarded the same and every 
 part thereof, and this in violation and disregard of right and justice andof its solemn agree- 
 ments and covenants. That the said Theophile and your petitioner have been at all 
 times and are now willing to give great indulgence to the said government as to the 
 time and manner of payment of said claim ; and if said government is unable to pay 
 said claim in cash, are willing to accept the bonds of sai<l government bearing a mod- 
 erate rate of interest and payable at some reasonable time in the future. That said 
 claim cannot be sued upon or enforced in the judicial tribunals of said government. 
 That the Department of State of this government, though admitting the justice and 
 equity thereof, declines to enter into diplomatic correspondence with reference to the 
 said claim, solely upon the ground that it arises ex contractu and not ex delicto. That 
 your petitioner is wholly remediless in the premises, unless through the intervention 
 in his behalf of your honorable bodies. That the principle as to the duty and right of 
 your honorable bodies to interfere on behalf of its citizens in such cases, has been, afte"r 
 full consideration and inquiry, heretofore settled and determined. 
 
 And your petitioner craves leave to refer to the act of Congress, approved March 3, 
 A. D. 1875, entitled "An act for the relief of Joseph H. Colton" (United States Statutes 
 at Large, vol. 18, part 3, p. 661), in support of this averment. That the extent, origin, 
 and nature of the interest of your petitioner iu said claim has been fully communicated 
 to the said Government of Peru by documents duly authenticated, and now on file with 
 the proper department thereof. 
 
 Tour petitioner submits herewith a history of the said claim, marked Exhibit J. C. 
 L., No. 1. 
 
 Whereupon he prays that this his petition may be received and duly considered, and 
 that he may have such relief in the premises as may be just and right. 
 
 JOHN C. LANDREAU. 
 
 The claim of the petitioner and the facts set forth therein were made the subject of 
 an examination by Mr. Henry O'Connor, examiner of claims in the State Department, 
 with an elaborate opinion in relation thereto, submitted to Hon. Hamilton Fish, then 
 Secretary of State, and is herewith embraced in this report. 
 
 (Printed above.) 
 
 The official correspondence of the State Department in relation to the claim is 
 also submitted. 
 
 (Printed above.) 
 
 From a careful perusal of the foregoing official correspondence and a consideration 
 of the facts therein disclosed, your committee are of the opinion that the claim of John 
 C. Landreau is entitled to and ought to receive the favorable action of Congress. 
 
 FINDING OF FACT. 
 
 The following facts appear to be true and fully established by the testimony and 
 documents submitted : 
 
 1. That the claimant, John C. Landreau, is a lawfully naturalized citizen of the United 
 States. 
 
 2. That he derives his interest in said claim through his brother Jean The'ophile 
 Landreau, a citizen of France. 
 
646 .AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 3. That said claim is founded upon the discovery of large and valuable deposits 
 of gnano, and that said deposits were converted by the Government of Peru to its 
 own use, without making to the Landreau brothers any compensation whatever there- 
 for. 
 
 4. That before Jean The"ophile Landreau entered upon his laborious and expensive 
 explorations, and before the said John C. Landreau advanced the large sums of money 
 mentioned in said official documents to his said brother, the said Government of Peru 
 had, by published decrees and proclamations, explicitly pledged itself to reward all per- 
 sons, citizens or foreigners, discovering property theretofore unknown and belonging to 
 said Government of Pern, with one-third of the value of such property. 
 
 5. That the discoveries of the deposits of guano resulted in great material advan- 
 tages to said Government of Peru. 
 
 6. That the Laudreau brothers have conducted themselves toward the 'said Govern- 
 ment of Peru in endeavoring to obtain an adjustment and payment of their said claim,, 
 long since doe and payable, in a fair and liberal manner, and have offered to make 
 great concessions. 
 
 7. That the said Government of Peru has repeatedly recognized the validity and 
 justness of said claim, and its legal obligations to pay the same, bat has as frequently 
 neglected to pay the same. 
 
 8. That the legislative branch of said government has declined to intervene on be- 
 half of said claimants, or either of them, upon the alleged ground of want of jurisdic- 
 tion over the subject-matter. 
 
 9. That the judicial branch of said government has likewise refused to render 
 any aid or assistance to said claimants, or either of them, as against said Government 
 of Peru. 
 
 10. That the executive branch of said Government of Peru has declined to render 
 any account to the said claimants, or either of them, of the amount or value of the said 
 property of said claimants taken by said government and converted to its own use, or 
 to permit said claimants, or either of them, to examine the official records of said gov- 
 ernment touching said property so used and converted as aforesaid. 
 
 11. That the said Government of Peru has denied justice to said claimants and each 
 of them in respect to their said claim. 
 
 1'J. That said claim still subsists in its entirety, unpaid and unsatisfied. 
 
 13. That all attempts of the said claimants to obtain relief through amicable negotia- 
 tions have wholly failed of success. 
 
 14. That the unofficial efforts of the State Department of the United States, by cor- 
 respondence and by the personal efforts of the duly accredited ministers of the United 
 States to said Government of Peru, have likewise wholly failed of success. 
 
 CONCLUSIONS OF LAW. I 
 
 As to the law of the case, your subcommittee submits the following conclusions at 
 •which he has arrived, for the consideration of the committee : 
 
 1. Congress established the principle of intervention on behalf of a citizen of the 
 United States, having a bona-fide claim against a foreign government, the payment of 
 •which was unreasonably delayed by the act of March 3d, 1875, entitled " An act for the 
 relief of Joseph H. Colton." 
 
 Eemajrk. — The principle involved in this act for the relief of said Joseph H. Colton, 
 in respect to his claim against Bolivia, is certainly broad enough to cover perfectly 
 the case under discussion. 
 
 If there be any distinction, the claim of the Landreaus is entitled to greater con- 
 sideration. The amount involved is immeasurably greater, and the delay of payment 
 longer. 
 
 The United States and Bolivia had public treaties providing for the reference of 
 claims to a mixed commission for adjustment at and before the, passage of said act as 
 it now has with the Government of Peru. 
 
 But no proviso of any treaty that would prevent such mixed commission to take juris- 
 diction of a copartnership claim, which copartnership was composed of persons of 
 different citizenships, exists. The committee of the other house of Congress, in stating 
 the principle that should control in such cases, say, "They entertain no doubt that 
 •whenever a foreign government clearly owes an obligation to a citizen of the United 
 States, this government should notice the obligation and should not hesitate to assert 
 it. So much, it is apprehended, the government may do in every such case." 
 
 2. That it has been the invariable usage of all nations from the beginning of organ- 
 ized societies to demand reparation of the offending nation that has committed a tor- 
 tious act to the damage of one of its citizens, and to enforce such demand by reprisal, 
 or war, if need be. 
 
 Remark. — As soon as the deposits of guano were discovered the interests of the 
 Landreaus attached thereto, and the conversion of the entire property to its own use 
 by the Government of Peru, without making compensation to the discoverers, was an 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 647 
 
 undoubted tort. I am unable to see any difference on principle in this case from the 
 case of an alien mining for precious metals within the territorial limits of the Govern- 
 ment of Peru, with the permission of that government, subject to a general law enti- 
 tling the government to a royalty upon the ores that might be taken from the mines. 
 Would it be contended for one moment that in the latter case the sovereign of the alien 
 would not be bound. by every principle of jusbice and international law to intervene 
 if the foreign government, under pretense of securing the royalty, should seize and 
 convert to its own use the entire body of the precious ore ? 
 
 3. That the following are likewise well-settled principles of international law in re- 
 spect to the duty of every sovereignty to enforce the claims of its citizens growing out 
 of contract) with foreign nations : 
 
 " The promises, the conventions, all the private contracts of the sovereign are nat- 
 urally subject to the same rules as those of private persons." — Vattel, § 213. 
 
 " The conventions and contracts which the sovereign, in his sovereign character, and 
 in the name of the state, forms with private individuals of a foreign nation, fall under 
 the rules we have laid down with respect to public treaties." — \ 214, Idem- 
 
 "When a lawful power contracts in the name of the state, it lays an obligation on 
 the nation itself, and consequently on all the future rulers of the society." — $ 215, 
 Idem. 
 
 " Reprisals are negative (as opposed to positive > when a state refuses to fulfill a per- 
 fect obligation which it has contracted. — Wheaton Lawrence, p. 506. 
 
 " The reclamation made on Mexico by England, France, and Spain, in 1861, seemed 
 to pass beyond the ordinary case of reprisals for tortious spoliations and violated con- 
 tracts." — Idem, p. 509. 
 
 OPINION OF MR. FIELD. 
 
 David Dudley Field, in an opinion in the Colton case referred to above, says: 
 
 " Every nation owes to its members maintenaaceof their rights ; so long as it exacts 
 allegiance and obedience, i|o long is it bound by the corresponding obligation to pro- 
 tect. 
 
 " This results from the relations between the citizens and the state. Commerce in its 
 double signification of intercourse and traffic, maybe lawfully carried on between one 
 nation and its members and the other nation and its members. From this arises an 
 obligation on the part of every nation to protect the members of other nations com- 
 ing to it in their lawful commerce, and to enforce engagements made with them. The 
 obligation of anation can be enforced only by other nations. This results from the fact 
 that a member of a nation cannot do it, both because he is forbidden and because he 
 is too weak. He is forbidden by his own nation to assert his rights by violence, or to 
 do anything for himself in respect to a foreign nation, except to resort to its tribunals 
 and to ask of its government. Hence arise two obligations, that of Bolivia to Mr. 
 Colton, a foreigner, to pay him the debt contracted, and that of the United States to 
 Mr. Colton, their citizen, to enforce the obligation of Bolivia.". 
 
 OPINION OP MB, EVARTS. 
 
 The present honorable Secretary of State uses language in regard to the case of Col- 
 ton well worthy of the attention of the committee, not only on account of his distin- 
 guished rank as a jurist, but because of his position in the present administration : 
 
 "In the absence of any plea of inability to pay this admitted debtof the Republic of 
 Bolivia, made in good faith and accepted as true by our own government, it seems the 
 manifest duty of the latter to compel the payment of the money due Mr. Colton by 
 the ordinary coercive processes known among nations and justified by international 
 law." 
 
 President Andrew Jackson, with that high courage guided by a conscientiousness 
 always placing him upon the highest plane of principle and justice, declared the true 
 attitude of this government toward its citizens receiving injuries from foreign na- 
 tions. 
 
 In the matter of French spoliations, he says, in his message to Congress, December, 
 1834: 
 
 " It is a well-settled principle of the international code that where one nation owes an- 
 other a liquidated debt, which it refuses or neglects to pay, the aggrieved party may 
 seize on ihe property belongiug to the other, its citizens or subjects, sufficient to pay 
 the debt, without giving just cause of war." 
 
 Wildman, in his Institutes of International Law, vol. 1, pp. 187 and 188 : ■ 
 
 " When a state refuses to repair an injury or to pay a debt, or to redress any wrong, 
 the state that is injured may seize anything that belongs to the offending state, and 
 detain or confiscate it in satisfaction of such wrong. For this purpose the property of all 
 
648 AFFAIRS IX CHILI, PERU, AND BOLIVIA. 
 
 private persons forms part of the state whereof they are members, whether as native- 
 born citizens or as persona domiciled therein. * * * As every state considers an 
 injury to any one of its citizens as an injury to itself, it is not unjust that they should 
 be liable for" the obligation of the state, which is bound to indemnify them for any 
 losses which may ensue." 
 
 In his great work on International Law, volume ii, page 8, Pbillimore says : 
 
 The right of interference on the part of a 6tate, for the purpose of enforcing the per- 
 formance of justice to its citizens from a foreign state, stands upon an unquestionable 
 foundation, when the foreign state has become itself the debtor of these citizens. It 
 must of course be assumed that such state has, through the medium of its proper and 
 legitimate organs, contracted such debt ; whether that organ be the sovereign alone, 
 according to the constitution of Russia, or the sovereign and parliament, according to 
 the constitution of England, the debt is contracted with foreign citizens, whether in 
 an individual or corporate capacity, constitutes an obligation of which the country 
 of the lenders has a right to require and enforce the fulfillment." 
 
 Again, in volume ii, page 12, Pbillimore says : 
 
 " The obligation of the state debtor is, if possible, yet stronger when the debt has 
 been guaranteed by treaty ; for in that case the foreign may be entitled to a prefer- 
 ence over the domestic creditor." 
 
 Again, in volume iii, page 34, Phillimore says : 
 
 " One of the grounds of the war between the United States and Mexico was the non- 
 payment of debts due from the government of that country to citizens of the United 
 States." 
 
 As to obligations of governments, Vattel in his Law of Nations, page 161, says : 
 
 " We have the right to obtain justice by force, if we cannot obtain it otherwise, or to 
 pursue our rights by force of arms." * * * 
 
 In the case of Marbury r. Madison, Chief-Justice Marshall, one of the ablest and 
 purest jurisconsults of any age or country, said : 
 
 " The very essence of civil liberty consists in the right of every individual to claim 
 the protection of the laws whenever he receives an injury. One of the first duties of 
 government is to afford that protection. In Great Britain the King himself is sued in 
 the respectful form of a petition, and he never fails to comply with the judgment of 
 his court." 
 
 Again, in the case of Ogden v. Saunders, Judge Marshall sa d : 
 
 "It is no objection to the principle that the injured party may be fie weaker. * * * 
 Every man retaiDSthe right to acquire property, to dispose of that property according 
 to his own judgment, and to pledge himself for a future act. 
 
 " These rights are not given by society, but are brought into it. Theright of coercion 
 is necessarily surrendered to government, and this surrender imposes on government 
 the correlative duty of furnishing a remedy." 
 
 Every attentive reader of history and observer of current events knows that a great 
 advance has been made within the last five years by all civilized nations in the direction 
 of extending protection or furnishing redress to ward its citizens wherever they may have 
 been induced to go foe the purpose of carrying on commerce or transacting business; 
 that for these reasou, armies have been collected and fleets equipped at great expense ; 
 that to-day the financial administrations of the Sultan of Turkey and Khedive of 
 Egypt are in the hands of the representatives of certain of the great European pow- 
 ers and being conducted in a manner to afford the greatest benefit to their creditor cit- 
 izens and the largest security for their claims. 
 
 RESOLUTION. 
 
 The committee therefore recommend the adoption of the following resolution : 
 Resolved by the Senate and the House of Representatives of the United States of America 
 in Congress assembled, That the petition of John C. Landreau, the report made thereon 
 by the Committee of Foreign Affairs, and the accompanying papers, be transmitted to 
 the Executive Department, with the request that the President take such steps as in 
 his opinion may be proper, aud in accordance with international law, to secure to the 
 said John C. Landreau a final settlement and adjustrneut of bis claim against the Gov- 
 ernment of Peru; and that, if in his opinion it is proper to do so, the President invite 
 the Government of France to co-operate with the United States in his behalf. 
 
 V.— ACTION OF THE HOUSE OF REPRESENTATIVES. * 
 
 February 21, 1880. 
 Mr. Hill. The Committee on Foreign Affairs, to whom was referred the petition of 
 John C. Landreau, a naturalized citizen of the United States, for the aid of the Gov- 
 ernment of the United States in the furtherance of his claim against the Government 
 of Peru, have directed me to submit a report, accompanied by a joint resolution, which 
 I hope may be put on its passage now. It does not involve the expenditure of a sin- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 649 
 
 gle dollar, but simply grants in behalf of a citizen of the United States the good offices 
 of the President and Secretary of State in the settlement of a claim against a foreign 
 government. I hope there will be no objection to the passage of this joint resolution. 
 
 The joint resolution (H. R., No. 319) was read a first and second time, was ordered 
 to be engrossed for a third reading, was accordingly read the third time, and passed. 
 
 Mr. Hill moved to reconsider the vote by which the joint resolution was passed; 
 and also moved that the motion to reconsider be laid ou the table. 
 
 The latter motion was agreed to. — Congressional Record, February 1\st, 1880, p. 15. 
 
 VI.— ACTION OF THE SENATE. 
 
 February 24, 1880. 
 
 Mr. Eaton. I am instructed by the Committee on Foreign Relations, to whom was 
 referred the joint resolution (S. R.|No. 14) for the relief of John C. Landreau, to ask to 
 be discharged from the further consideration of this matter. It relates to a contract 
 between a citizen of the United States and the Peruvian Government, and it is the 
 opinion of the committee that it is a matter entirely within the power of the Execu- 
 tive Department. 
 
 Mr. Voorhbes. I ask that it be placed on the Calendar with the adverse report. 
 
 The Vice-President. The Chair hears no objection to that request, and that order 
 will be entered. — Congressional Record, February 24, 1881, p. 38. 
 
 VII.— THE GUANO DEPOSITS. 
 
 There are no guano deposits of importance in the world, except the Peruvian, and 
 all the Peruvian deposits were discovered and placed at the government disposal by 
 Cochet and Landreau. 
 
 The discoveries of Cochet were officially enumerated in the following decree : 
 
 S'ipreme Decree, declaring the Guano Deposits known to the Government, May 7, 1852. 
 
 Jose' Rufino Echeniqne, President of the Republic : 
 
 Considering 
 
 That it is necessary to exercise the greatest vigilance over the guano deposits, the 
 property of the government, in order to prevent smuggling, or the fraudulent ship- 
 ping of guano, which forms to-day one of the greatest resources of the government ; 
 
 That notwithstanding the repeated orders which have been given, that the birds 
 which breed on said islands should not be molested by fishermen, or others, who may 
 come near said islands, and in this m inner disobeiyjng said regulations, to the preju- 
 dice of these deposits of guano and their preservation; 
 
 That the above-mentioned abuses render it indispensable that the government should 
 designate the authorities who should carry out the orders of the government in rela- 
 tion to the guano deposits on said islands ; 
 
 That the said deposits of guano beiDg at great distance, one from the other, they 
 cannot be placed under the control of one agent, and it appears most natural that 
 they should belong to the districts on the coast to which they are nearest; it is de- 
 creed : 
 
 Articl"e 1. The guano deposits belonging to the republic will form part of the dis- 
 tricts or provinces as follows: 
 
 The Lobos Islands, i ear the point of same name, situated in 5 degrees 13 minutes 
 south latitude, shall belong to the district of Paita and province of Piura. 
 
 The small islands of Lobos do Tierra, aud its adjacent deposits, situated in 6 de- 
 grees 27 minutes south latitude, shall belong to the district of Lambayeque and prov- 
 ince of Lambayeque. 
 
 The islands of Lobos de Fuera, situated in 6 degrees 57 minutes south latitude, 
 shall belong to the district of Eten and province of Chiclayo 
 
 The Malabrigo Islands, situated in 7 degrees 49 minutes 11 seconds south latitude, 
 shall belong to the district of Paijan and province of Trujillo. 
 
 The islands of Santa and the Terror Islands, situated between 9 degrees 11 minutes 
 aud 9 degreqg 17 minutes 11 seconds south latitude, shall belong to the district of Santa 
 and province of Santa. 
 
 The islands of Don Martin de Mazorques and Pelado, situated between 11 degrees 4 
 minutes and 11 degrees 25 minutes 11 seconds, Bhall belong to the district of Huacho, 
 province of Chaucay. 
 
 The islands of Pescadores and Ancon, Bituated in 11 degrees 46 minutes, shall belong 
 to the district of Carabayllo, province of Lima. 
 
 The island of Hormigas, situated in 11 degrees 56 minutes, shall belong to the prov- 
 ince of Callao. 
 
650 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 The three Chincha Islands, situated in 13 degrees 32 minutes 11 seconds south [lati- 
 tude, shall form a separate district, and will be under a governor to be appointed. 
 
 Article 2. For the care and custody of the above islands there shall be employed a 
 sufficient number of guards, to be changed for others as may be deemed necessary. 
 
 Article 3. On the principal and best situated of these islands there shall be con- 
 structed houses, which are comfortable, for the guards to live in, aud there shall be 
 also stationary boats or launches which may be necessary to keep up a communication 
 between these islands and the coast. 
 
 Article 4. A vessel of war shall be employed specially to cruise between said guano 
 islands, and make periodical visits, carrying monthly provisions and water sufficient 
 to furnish all the guards who may reside thereon. 
 
 Article 5. The prefects and governors of said provinces are charged with the execu- 
 tion of the said regulations, and the strict observance of them by those concerned, and 
 shall render a careful account of what may happen at the islands under their charge, 
 and cause to be observed all of the foregoing resolutions given in reference to said 
 islands. 
 
 Communicate and publish. 
 
 Lima, May 7th, 1852. . „„ 
 
 JOSF, RUFINO ECHENIQUE. 
 
 The discoveries of Landreau are next enumerated : 
 
 List and geographical description of the guano deposits discovered and made lcnoum by AT. 
 The'ophile Landreau, in the years 1856 and 1859, which were enumerated in his petition to 
 the supreme, government on the third day of November, 1865, and are contained in the lists 
 that, since 1866, have been deposited at the legations of France, England, and the United 
 States of America. 
 
 •deposits to the north op lima. 
 
 1. A point called Los Chinos, in 9 degrees 13 minutes south latitude. In this place 
 there exists a deposit of some magnitude. 
 
 2. The port of Bay Samaco, in 9 degrees 15 minutes south latitude. A short distance 
 to the south, and in front of the open coast, there is a space of ground more than 500 
 yards long by more than 100 yards broad covered with guano. 
 
 3. The small Bay of Chimbote, in 9 degrees 6 minutes south latitnde. A large de- 
 posit of guano, principally on the same site oecnpied by the huts of the fishermen. 
 
 4. In the plain which extends between Nepeiia and Sauta there is a space of more 
 than a league in length, La Cruz del Medio, where guano is found. 
 
 5. The islands of Cornegos, in 9 degrees 53 minutes south latitude. 
 
 6. The islands of Viuda, in 9 degrees 23 minutes south latitude. 
 
 7. The islands of Tortuga, in 9 degrees 21 minutes south latitude. 
 H. The islands of Coesco, in 9 degrees 14 minutes south latitude. 
 
 9. The islands of Blanca, in 9 degrees 5 minutes south latitude. 
 
 10. The islands of Corcobado, in 8 degrees 57 minutes south latitude. 
 
 11. The islands of La Viuda, in 8 degrees 54 minutes south latitude. 
 
 12. The islands of Decheo and cape of the same name, in 8 degrees 46 minutes south 
 latitute. 
 
 13. Between the fortress of Pativilca and the port of Huarmey, and between Huan- 
 cha and Callao, are a few deposits of guano of inferior quality, which do not deserve 
 attention. 
 
 deposits to the south of lima. 
 
 14. The little island of Asaia, in 12 degrees 48 minutes south latitude. 
 
 15. The islands Blanca aud Ballestas, in 13 degrees 44 minutes south latitude. 
 
 16. The islands San Gayan, in 13 degrees 50 minutes south latitude. 
 
 17. The islands of Zar&te, in 13 degrees 59 minutes south latitude. 
 
 18. Morros de Carretas, in 14 degrees 10 minutes south latitude. 
 
 19. Island and Morras de Viejas, 14 degrees 16 minutes south latitude. 
 
 20. Small island and bay of San Nicolas, 15 degrees 15 minutes south latitude. 
 
 21. Port of Lomas, in 15 degrees 32 minutes south latitude. 
 
 22. Puntas de Lobos, in 16 degrees 9 minutes sonth latitude. 
 
 23. Point and small island of Atico, in 16 degrees 4 minutes sonth latitude. 
 
 24. Point aud small island of Pescadores, 16 degrees 24 minutes south latitude. 
 
 25. Islands and coast of Acotia, in 16 degrees 30 minutes south latitude. 
 
 26. On all the coasts from the point of Cornej >s to Islay there are small quantities 
 of guano at short intervals, the same as from the point of Mejia to the coast of Cocotea. 
 
 27. From the point called Capilla to the Cabo de Lobos inclusive ; guano is found 
 likewise in the neighborhood of the brook de Camarones toward 19 degrees 13 minutes 
 south latitude. 
 
AFFAIRS IN CHlLI, PERU, AND BOLIVIA. 651 
 
 28. In Pisagua, a small bay to the north of Inique, there is a deposit of guano, with 
 sand in some parts, but in sufficient abundance. 
 
 29. At the point and island of Mejillones, situated in 19 degrees 51 minutes south lati- 
 tude, there is also guano in considerable quantity. 
 
 30. The islands of Coluiue, Pajaros, and others to the south of Iquiqne contain small 
 quantities of white guano, which might serve as a manure for the agriculture of 
 the country. 
 
 31. At the plain called Cochapampa, situated at the foot of the town of Iquique, 
 and which extends from the sea to the brook of Hnancata, and the hill Parada, ex- 
 tending toward Huan-Tajaya, are various places where great deposits of guano are 
 found mingled with carbonates, nitrates, and chlorides of soda and potash. 
 
 32. From the- canon of Chursmara, or Chuquniata, up to Punta-Gruesa inclusive, 
 many ravines full of excellent guano are found; among others we may cite those of 
 Lobo Culata, Sacramento, Aminas, Morello, Guajes, Colorado, etc. — ravines that are 
 500 or 600 yards long by 100 or 150 yards wide. All these deposits are covered by a 
 crust and thick coating of sand. 
 
 33. Between the coves of Chucumata, in 20 degrees 31 minutes south latitude, and 
 the Pabellon de Pica, known to the state, exist larg-i deposits of gnano, especially 
 on a kind of low peninsula situated in 20 degrees 56 minutes, more or less, south lati- 
 tude, on the slope of which is found an eminence which is all guano. 
 
 34. From the ravine of Pico to the point Chomoche inclusive, are found more than 
 30 ravines and deep breaks of 400 or 600 yards in length each, by 150 yards in breadth 
 and 20 or 30 yards in depth, all pure guano of the best quality. 
 
 AMOUNT OF GUANO IN THE LANDRKAU DISCOVERIES. 
 
 The La Patria of October 20th, 1874, says that the gnano exported to Europe from the 
 island of Ballestas up to tbat date was 76,771 tons, taken by 57 ships. 
 
 According, to the report of the Junta Central of Engineers, a copy of which has 
 been distributed by the Peruvian Government; 137,500 tons of guano had been ex- 
 ported from the beds at Chananaga (No. 33 of Landreau's list). 
 
 It is a well-known fact that at this date there are over 20 ships loading at the Vieja 
 Islands. This island, No. 19 of Landreau's list, contains upward of 400,000 tons of 
 guano. 
 
 According to the Nacional of June 1st, 1875, it appears that the Government of Peru 
 had opened to the agriculture of the country the following guano beds : 
 
 1. All those to the south of Arequipa (except Pabellon de la Pica, which belonged to 
 the government), comprised under Nos. 27 and 25 in Landreau's list, containing upward 
 of 800,000 tons of gnano. 
 
 2. One of the small islands situated to the north of Huarmey, No. 5 of Landreau's 
 list, containing about 10,000 tons. 
 
 3. Two of the deposits in the vicinity of Port Lomas, containing at least 20,000 tons 
 each, and marked Nos. 21, 22 and 7 in Landreau's list. 
 
 4. One of each of the deposits of Mala and Asaia, numbered respectively 14 and 4, 
 containing no less than 800,000 tons. 
 
 VIIL— PERUVIAN TACTICS. 
 
 A summary outline of Landreau's negotiations with the faithless executive of a faith- 
 less people, prior to the execution of the contract which was only held out as a bait to 
 conceal the nook which should be his ruin, will throw valuable light upon the future 
 as well as upon the past. 
 
 For nearly twelve years this patient scientist pursued his explorations, braving dan- 
 gers and innumerable privations, till his labors were crowned with a large success, and 
 he not only discovered but surveyed and located a large number of valuable guano 
 deposits of vast extent hitherto wholly unknown, probably from the fact that they 
 existed in regions previously deemed inaccessible, and thus without the pale of civili- 
 zation. 
 
 At once upon his return in 1856, he informed the government of his discoveries, and 
 upon the 29lh of July in tbat year presented himself in person at the treasury and 
 filed a written declaration to that effect. 
 
 On the 30th of December, 1859, after a prolonged absence, he renewed his applica- 
 tion and filed a patiiion which was admitted January 5th, 1860. 
 " To the Minister of Finance : 
 
 "Your Excellency: Jean Tbcopbile Landreau, a native of France and a resident 
 of this city, with due respect presents himself before your excellency, and states that 
 he has discovered certain guano deposits on the coast of Peru, and is ready to point out 
 the locations and bring samples of the guano immediately the government informs him 
 
652 AFFAIES IN CHILI, PEEU, AND BOLIVIA. 
 
 what his recompense will be, soliciting at the same time a list of the deposits known 
 to the government up to this date. 
 
 "J. T. LANDEEAU. 
 " Lima, December 30(ft, 1859." 
 
 The minister of finance indorsed the petition as follows: "Let the director-general 
 of finance report." 
 
 The report of the director-general of finance, to whom the petition was thus re- 
 ferred, states the necessity of proving that the 'deposits of guano mentioned in the 
 petition were ionafide new discoveries. 
 
 It is further stated in the report that the government was aware that the coast dis- 
 trict'of Peru abounded in deposits of guano, and that all belonged to the state ; but in 
 case Landreau's petition referred to deposits that were new, then it would be but fair 
 to agree to his receiving a share as the discoverer. 
 
 The petition was next sent to the attorney-general, who reported as follows: 
 
 " The attorney-general is of the same opinion as the director-general of finance, as 
 to the fact of verifying whether the deposits of guano declared by Jean The'opb.ile 
 Landreau have or not been known up to this day ; it is therefore necessary to make 
 such a search, and in consequence this office is of the opinion that if, after having made 
 the verification by means of the certificates and reports of the state department, it 
 should happen that the said deposits are unknown, your excellency will then be able to 
 accept the declarations of Landreau, and notify him, as a reward, of the allowance of 
 a third part of the guano discovered, conformably to the 6th paragraph of the decision 
 of the council of state of February 13th, 1833, vol. iv. of the collection of laws by 
 Quiroz, and which besides is the general law applicable to this matter. Your excellency 
 can therefore order a suitable verification to be made, and decide, according to the con- 
 tents of this report, or as your excellency will deem advisable. 
 
 "VILLAEAN. 
 
 "Lima, January 18th, 18G0." 
 
 Finally the petition was returned by the department of national credit upon the 25th 
 of February, 1860, when Landreau's request for a list of the deposits known to the 
 government was declined upon the plea that such a list did not exist in that office ; 
 but the demand beiag firmly persisted-in, a list was opportunely discovered, and in 
 November, 1862, the government published a list of all the known deposits of guano 
 at that date. 
 
 Landreau having learned that other persons were claiming his discoveries, renewed 
 his application on the 2d of December, 1862, and demanded a copy of his former peti- 
 tion to the government. 
 
 On the 2Uth of December, 1862, the government furnished a further list of guano 
 -deposits then known to exist, and Landreau then drew the attention of the govern- 
 ment to the fact that-the deposits discovered by him were not mentioned in either of 
 these government lists, and that he was therefore clearly entitled to the one-third share 
 promised to original discoverers. 
 
 On the 24th of May, 1864, Landreau, hearing that his original petition and other 
 documents relating to it were lost, obtained a certified copy from the French legation, 
 and handed it to the government, with a view of having all subsequent j udgments 
 and reports appended to it. 
 
 Among the documents thus handed in there appeared a list of the deposits known 
 to the government, and Landreau again drew the attention of the government to the 
 fact that the deposits discovered by him were not mentioned in the government list. 
 And convinced that his case was good in law, and supported by the opinion of the at- 
 torney-general and other authorities, he hesitated no longer in indicating the exact 
 position of his newly discovered deposits, and requested the government to have them 
 surveyed and his claim estimated. 
 
 At length on the 24th of October, 1865, his claim was in effect accepted by the 
 government, and confirmed by a decree granting him a recompense upon the following 
 terms : 
 
 Upon the first million tons of guano, 10 per cent. ; upon the second million, 8 per 
 cent. ; upon the third million, 6 per cent. ; upon the fourth million, 4 per cent. ; upon 
 the fifth million, 2 per cent. 
 
 It was understood that the remuneration offered to Landreau should not extend 
 beyond the above terms. 
 
 The terms and conditions mentioned in the last seotion were accepted by Landreau, 
 and in consequence a contract was drawn up between the Peruvian Government and 
 Landreau, and signed in the presence of Notary Claudius Jose' Suaroz, of Lima. 
 
 Upon the following day the sealed envelope containing the lists of deposits discov- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 653 
 
 ; ered by Landreau (which had been given to the ministry December 30th, 1859) was 
 opened by the minister of finance, who retained possession of it by virtue of the clause 
 in the contract to that effect. 
 
 IX.— PERUVIAN REPUDIATION. 
 
 Shortly after the signing of this contract the revolution of Pardo took place, fol- 
 lowed by a series of political convulsions, which caused this question to remain in 
 statu quo, until Jos. Balta became president of the republic. •« «■ 
 
 At this time the treasury being exhausted and the government in great financial 
 straits, it was found necessary to devise some means to meet the approaching obliga- 
 tions and relieve the financial pressure. 
 
 Atrthis juncture President Balta sent for Landreau and informed him that during 
 the revolution the list of newly discovered deposits had been lost, and requested him 
 to furnish it another copy, frankly explaining that he relied upon these deposits to 
 save the credit of the republic, and to tide over the financial trouble; the press of Eng- 
 land complaining that the deposits of guano in Peru were exhausted, and demanding 
 new security for present and prospective bondholders. The times were critical, and 
 President Balta promised to pay Landreau not only the terms stipulated in the signed 
 contract but offered to add the rate of 60 per cent, upon all deposits in excess of five 
 millions of tons. 
 
 This promise was solemnly made in the presence of Messrs. Garcia Calderon, Pedro 
 Galvez, and La Rosa, the ministers of finance, state, and justice. 
 
 Upon the day following — that is, upon December 9th, 1868 — confiding in this solemn 
 executive assurance, Landreau handed to the minister of finance a new copy of the 
 list. 
 
 How much a Peruvian pledge is worth the confiding foreigner better knew when, 
 just three days later, Balta and Calderon published a fresh decree accepting the new 
 discoveries and annulling the discoverer's contract. S3< 
 
 The decree of annulment was published on the 31st December, 1868, in the official 
 gazette, El Peruano. This decree bore date December 12th, 1868, and included a list 
 of the deposits discovered by Landreau, in which the fact that he was the discoverer 
 was expressly recognized. 
 
 Further action was taken on the 2d of January, 1869, when the minister of finance 
 named the commission to survey Landreau's deposits and to take possession. 
 
 Before the commission could effect its object, however, Mr. Calderon retired from 
 the ministry of finance and was replaced by Mr. Pierola, who not only repudiated the 
 contract of 1865, but also the supreme decree, and stopped the commission from setting 
 out. Finally he opened for exportation the islands of Bullestas, they being No. 15 in 
 Landreau's list, and sent to England, France, and Germany copies of the Peruano, 
 dated 31st of December, 1868, containing the decree of the 12th of the same month, and 
 the list of deposits discovered by Landreau. 
 
 This decree and list was reproduced in the London Times and other important jour- 
 nals in Europe, and produced the desired effect of resuscitating the credit of the Peru- 
 vian Government and disposing European capitalists to entertain the financial projects 
 about to be submitted to them. 
 
 It further appears that later, according to the El Comercio of the 3d of December, 
 1873, the list of Landreau's deposits was again, by order of the government of Mr. 
 Pardo, reprinted in the London Times of October 25th, 1873, when increased improve- 
 ment in the Peruvian bonds was manifested. 
 
 The decree of repudiation contained an intimation that a new contract might be 
 made with Landreau after a resurvey of his discoveries, and in the journal El Nacional 
 of December 12tb, 1873, we find that upon the 5th of that month the government 
 issued a decree ordering a commission of engineers to examine the islands and coast of 
 Peru, to measure and value such deposits of guano as they might find. 
 
 This commission set forth without Landreau, and that fact coming to the knowledge 
 of Count de Bellonet, the French representative, he called upon a member of. the gov- 
 ernment and verbally demanded an explanation. . 
 
 He was answered by M. Riveaguero, minister of foreign relations, that the govern- 
 ment had not considered it necessary that Landreau should accompany the commis- 
 sion, because it was believed that the deposits in question were of little value. He 
 added, however, that if the commission should find that they were of any considerable 
 value Landreau would be largely recompensed. 
 
 A SUGGESTIVE OFFEE. 
 
 The next output of this model executive was a published offer of a premium of five 
 per cent, to any adventurer who would establish a claim adverse to Landreau's. 
 
 Upon the sole credit of these new deposits, which, but for the twelve years' toil and 
 large expense of the Landreau brothers would still be unknown, the Peruvians not 
 
654 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 only escaped imminent bankruptcy, but even obtained fresh loans aggregating not 
 less than $200,000,000. These loans were based upon official surveys of European en- 
 gineers, who reported the deposits to contain at least 10,000,000 tons of guano, worth 
 at least $380,000,000. Landreau's one-third — for the repudiation of the special con- 
 tract restored to him his oiiginal right to one-third"— is worth, upon this basis, not 
 less than $125,000,000. 
 
 X.— PERUVIAN LOGIC. 
 
 Three years after the opinion of Attorney-General Villaran, recognizing as a matter 
 of course Landreau's right to the statutory one-third of his discoveries, his successor 
 in office deems it opportune to enter upon an original disquisition, which should not be 
 left in relative obscurity. But we have only room for abstracts and extracts. This 
 eminent logician recites that : 
 
 " Landreau, having asked what recompense would reward his discoveries, was an- 
 swered by Dr. Villaran on the ltith of January, 1860, that, according to his opinion, he 
 was entitled to one-third part of the valne of the property discovered, this being the 
 general practice and in accordance with the 6th paragraph of the vote of the council 
 of state, February 13ih, 1833 ; but it must be borne in mind that said premium is only 
 meant for those who should discover national property which is unlawfully possessed, 
 for as soon as it becomes the domain of private right, there is a possibility of having to 
 run the risk of seeing said usurpation legitimized b'y a transfer to a second person, 
 who, receiving it in good faith, might, after a certain number of years, consider it as 
 prescribed property. Furthermore, the risk run by the nation of losing said property 
 is only too evident should it not be discovered in due time, and in consequence the 
 necessity of stimulating discoverers with a heavy premium. Again, such property as 
 deposits of guano is not exposed to individual appropriation, for it is held as national 
 property, though it be unknown for years, and this fact destroys the cause for the 
 allowance of the one-third in question ; besides which there is no reason for holding 
 out a premium whereby the nation loses a great" share of its own property, the integ- 
 rity of which is preserved under all circumstances, while the use of the same is not 
 imperative at present, for the sale of guano is limited to the demands of the home con- 
 sumption, and for this reason there are as yet deposits that have not been worked. 
 
 " If by the above reasons we come to the conclusion that the one-third premium 
 cannot be applied in such an absolute manner, it cannot, however, be denied that a 
 just recompense is due to the person who discovers property the intrinsic value- of 
 which swells the wealth of the nation. Among the legal principles that might with 
 less impropriety be cited to cover the present case, though not pointing to an exact 
 analogy, is the article 520 of the Civil Code, whereby the premium of 15 per ceut. is 
 allotted to any person who finds property not his own in case of jettison or shipwreck. 
 In this there is no usurpation. A true owner exists, and yet there is a discovery, 
 although the cause that led to the placing of the property on the beach is different to 
 that of placing the unknown deposits said to have been discovered by Landreau. 
 
 " Now, then, if notwithstanding the possibility of private appropriation in the case 
 of jettison or shipwreck, the premium does not exceed 15 per cent., how much less 
 it must be when the risk of such malappropriation does not exist." 
 
 The attorney-general concludes : "That the third part cannot be granted to Lan- 
 dreau, nor even 15 per cent., and the only manner of bringing the point at issue to 
 a conclusion is to come to a private understanding with Laudreau, who, convinced by 
 the above reasons, will no doubt enter into a prudent arrangement which will always 
 prove beneficial to him if the discovery is of the magnitude he describes, and for the 
 preservation of which he has used neither efforts nor capital. 
 
 " It is necessary to say that this affair, the importance of which will gradually de- 
 velop itself, may give rise to questions of grave character, especially as to settling 
 whether the deposits had been previously known or not, and that it is convenient to 
 establish beforehand general rules in order to avert complications in the future." These 
 rules, according to the attorney-general, are : 
 
 " 1. That although Landreau's deposits are not enumerated in this report, they will 
 be counted as known if it can be proved that the guano has been used for agricultural 
 purposes, or that they have been known by any of the local or general authorities. 
 
 " 2. That any question arising out of Landreau's responsibilities as the discoverer, 
 or the State as owner, will be ventilated before the tribunals of the republic, and in 
 accordance with the civil laws of the land, no other intervention being allowed. 
 
 " URETA. 
 
 "Lima, Slst October, 1863." 
 
 SUPREME DECREE. 
 
 " Lima, October 24, 1865. 
 " This petition, having been examined by the council of ministers, and taking into 
 consideration that the deposits of gnano to be found in the different localities of the 
 
PERU, AND BOLIVIA. 655 
 
 territory of the republic, constitute the principal part of the national wealth, and that 
 the discovery of new beds will enhance the same a9 well as the financial credit of the 
 nation ; that Jean Tbe'ophile Landrean, represented to-day by Thomas Carlos Wright, 
 says that there are deposits of guano eutirely unknown, and offers to make the same 
 known to the government, demanding for this service a proportionate recompense ; 
 that it is strictly just to accede to said recompense in case the deposits are altogether 
 new; in accordance with the unanimous vote of the council, and with the report of 
 the attorney-general of the supreme court. The petition of the said Landreau is 
 granted under the following conditions : 
 
 " 1st. Landreau, immediately after accepting this decree, and a public contract of 
 the same having been drawn up, will designate the deposits of which he calls him- 
 self discoverer, said designation being made with the greatest possible minuteness, it 
 being well understood that no deposits known up to date shall be named in the same. 
 
 "2d. The premium accorded to the discoverer is 10 per cent, on the net proceeds of 
 the guano discovered if the number of tons is one million or less; 8 per cent, on the 
 tons exceeding one million and not reaching two millions ; 6 per cent, on the tons ex- 
 ceeding two millions and not reaching three millions; 4 per cent, on the excess of 
 three millions and not reaching four ; and 2 per cent, on the excess of tour millions of 
 tons and not reaching five; it being well understood that for any number of tons 
 above five millions there will be no recompense, the excess belonging exclusively to 
 the nation. 
 
 "3d. Neither Landreau nor any other person or persons representing him, shall ever 
 agitate any question growing out of the concession established in this decree before 
 any other authorities or tribunals than those of the republic, and in accordance with 
 the laws of the same, renouncing expressly all diplomatic intervention ; it being an 
 expressed condition that should he ever employ such means that sole fact will destroy 
 the effect of this resolution, and he will be unable to claim any premium whatsoever. 
 
 "4th. The discoverer or his attorneys are forbidden, directly or indirectly, to inter- 
 fere in the contracts of sale or any other contract that the government maybe pleased 
 to make regarding the guanos of the new deposits, for his right will be limited to 
 asking the share which, according to the percentage already mentioned, may fall to 
 him. 
 
 " 5th. The government will begin operations on the new guano deposits as soon as 
 it will deem it convenient, the discoverer or his attorneys not having the option to 
 demand when a start shall be made. 
 
 "6th. This concession will be void in case the government or any authority can 
 plainly prove that they had official or private report of the deposits said to have been 
 discovered by Landreau." 
 
 CONTRACT. 
 
 "Lima, 28th October, 1865. 
 " The administrator signing at the foot in the name and as the representative of the 
 state, making use of the authority vested in him for this purpose, affirms by these 
 presents that this concession guarantees Jean Tbe'ophile Landreau the terms named 
 in the six conditions mentioned in the supreme decree of 24th of October, A. D. 1865, 
 which said statement forms the true essence of this instrument, against which at no 
 future time can there be any reclamation in any manner whatsoever, unless the 
 grantee or his attorney should not either wholly or in part comply with the supreme 
 resolution approving the discovery made of the guano belonging to the nation ; and if 
 such be the case the compliance with the stipulations of the sixth article of the su- 
 preme resolution aforesaid will be faithfully carried out; and if Landreau or his attor- 
 ' neys do faithfully fulfill every act demanded of him, the same faithfulness will be 
 used toward him in carrying out the six principal conditions forming the basis of this 
 contract. 
 
 "JOSfi FELIX GARCIA. 
 "THOMAS CARLOS WRIGHT. 
 " Witnesses : 
 
 "estani8la0 enriqubz. 
 "Manuel Antonio La Torre. 
 "Jose de la Fuente. 
 "Notary: 
 
 "Claudio Jose Suarez." 
 
 decree of repudiation. 
 
 " Ministry of Commerce and Finance, 
 
 " Lima, December 12, 1868. 
 
 " In virtue of the demand made by Jean Theophile Landreau, claiming his right 
 arising out of the contract entered into between him and the government, and the full 
 fillment of said contracts, he making known to the Government of Peru the names of 
 
656 AFFAIRS IN CHILI, PERU, AND BOLIVIA.. 
 
 the different places where the deposits of guano are situated, and putting them all at 
 , their disposal ; the government taking into consideration that the said contract can 
 never be accepted, on account of several defects which render it null ; that the pre- 
 mium stipulated to be accorded to him is of such a great amount that it can never be 
 given by the government : that it is convenient to examine the guano deposits dis- 
 covered, so as to see if the same be of good quality and of any advantage to the na- 
 tional interests. In virtue of these reasons it is hereby declared that the contract 
 signed between the government and Landreau, 2d November, A. D. 1865, is null and 
 void, whilst the discovering of the deposits and the information of the same made by him are 
 accepted ; and it is hereby decreed that as a basis for a new contract said new guano 
 deposits shall be examined by a special commission appointed for that purpose. 
 
 " Tliis commission is to proceed, in company of the discoverer, Mr. Landreau, to the 
 different places indicated by him, and to measure the deposits of guano referred to in 
 his declaration, taking from each a sample in order to have the necessary analysis 
 made in view of testing the quality and value of the same. 
 
 " Let Landreau be made acquainted with this resolution , that he may name the rec- 
 ompense he asks for in the aforesaid declaration. 
 
 "BALTA. 
 
 " CALBEEON." 
 
 XI.— COCHET AGAIN. 
 
 The original benefactor of these graceless people, as we have already seen, never 
 litigated his claim. 
 
 The history of Laudreau's patient meekness shows how much wiser was Cochet than 
 his disciple, and the present proprietors of Cochet's claim will waste neither time nor 
 money in diplomatic parley. 
 
 It suffices the present purpose to conclude the proofs of Cochet's title and its due 
 assignment, and to indicate the immedite executive measures resolved upon. 
 
 As we have already seen, this model government, first despising the chemist's offered 
 revelations, gave to his friend and that friend's partner a six years' concession for a 
 song, and in spite of Cochet's warning extended it three years more; then suddenly 
 observing that Europe was really buying guauo, and that Allier and Quiroz were 
 making scores of millions, as suddenly set matters right by repudiat ing the concession 
 altogether, and when pushed, compromising it by a bonus of 10,000 tons for a release 
 of Alliens claims. And in this connection, the better to justify their violence to Allier, 
 they plead, and so admit and forever estop themselves from afterward denying, that 
 Cochet was the trne and sole original discoverer. 
 
 The following extract is a literal translation from the pamphlet and congressional 
 report of Peru on the Cochet claim in 1851 : 
 
 " Under the conviction of all these truths, based on positive facts and on veridical 
 documents, the congress of 1847 declared Cochet to be the true discoverer and utilizer of 
 guano; and the commission encharged to understand in the reclamations of Allier, de- 
 ciding in favor of the pretensions of this gentleman, affirm that not as the discoverer 
 the premium awarded him is given, because this premium belongs to Cochet, to whom 
 it ought to be assigned. (Seethe Correo Peruano, Nos. 921, 925, and the Comercio, 
 No. 2552 Sessions of 22d to 28th December. Speeches of Messrs. Roman, Gonzales, 
 and Polar, members of the commission.) 
 
 " Finally, on September 30, 1849, the commission of premiums declared Cochet a 
 creditor for that of five thousand tons of guano for his expenses. This man, according 
 to what has been shown, has well gained and well merited the premium which has 
 been assigned him, and which Bhould have been delivered to him long ago." 
 
 And no attempt to recall this irrevocable admission has ever been made. 
 
 The text of the original decree of 1833 is next given, and following the text of sub- 
 sequent decrees amplifying and confirming the original. None of these have ever 
 been repealed. 
 
 In volume 4, in the compilation of Quiroz, page 266, will be found the following, 
 to wit (paragraph 6 of the councilof state) : 
 
 " Lima, Peru, February 13, 1833. 
 
 "The council of state is of the opinion that the executive be made acquainted with 
 the following : 
 
 " That any one, after the publication of these presents, who shall have discovered 
 property belonging to any suppressed convents, or other property belonging to the 
 state, shall have a right tp a third part of said property." 
 
 In volume 3, law 6th, book 10, title 22d of the new Spanish compilation, still in 
 force, will be found the following, to wit : 
 
 " Article 7. The case being terminated, the tribunals declare, by a sentence, that all 
 proclaimed property will be applied to the construction and preservation of roads, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 657 
 
 aud it will be distributed as follows : Two-thirds will be applied to the above-men- 
 tioned end and the remaining third to the discoverer. The same application will be 
 made with unknown property, and if the thing discovered is less than six thousand 
 maravedis the expenses will be deducted, and the balance will be divided in three 
 parts as mentioned. Then the property will be sold at auction. As to vacant or 
 doubtful property, the same procedure will be followed." 
 
 SUPREME DECREE OP 1847. 
 
 " Agreeably to the papers and the report of the superior tribunal of accounts, and 
 also that of the attorney general of the supreme court, and considering that accord- 
 ing to information received by the government it is probable that there is much 
 municipal and government property which produces nothing, because the state officers 
 lack information and necessary knowledge on that subject : 
 
 " It is hereby declared that the revenue officers seek and discover said property, in 
 order to form the matriculation books; for those discoveries being considered as dec- 
 larations, the said functionaries or any one else will be allowed one-third of the capital 
 discovered and interests not discharged, according to the 6th law, title 22d, book 10 
 of the new compilation, and decree of February 13, 1833. Let this be circulated and 
 published. 
 
 " RIO, 
 " Minister of the Interior." 
 
 Rubric of his excellency. 
 
 (See El Peruano, April 21, 1847.) 
 
 Peruvian laws regarding contracts. — No. 2. — Law upon contracts. 
 
 " Citizen Ramon Castilla, constitutional President of the republic, considering that 
 Congress haB passed the following law : 
 ''The Congress of the Peruvian Republic, considering: 
 
 " 1st. That public credit is the true wealth of the country, and that without it na- 
 tions as wealthy as they may be cannot exist. 
 
 "2d. That in consequence of the continuous revolutions which have agitated the 
 country, it becomes daily more difficult to settle satisfactorily the public debt, has 
 passed the following law : 
 
 " 1st. The executive will faithfully fulfill in all their pa#ts the contracts made with 
 parties, whether they be national citizens or foreigners, whatever may be the time and 
 government under which they have been made. 
 
 "2d. In regard to payment, preference will be given to those claims made under 
 constitutional authority, then continuing with those ordered by de facto governments, 
 but in both cases in the priority established by their date of issue. 
 
 "Let this be made known to the executive, so that they may do what is necessary 
 for.its accomplishment by having it printed, published, and circulated. 
 "Done at Lima, October 21st, 1845. 
 
 "MANUEL SALAZAR, 
 
 "President of the Senate. 
 "MANUEL CUADROS, 
 
 "President Chamber of Deputies. 
 "TADEO CHAVEZ, 
 
 "Senator, Secretary. 
 "A. AVELINO CUETO, 
 
 "Member, Secretary. 
 
 " Whereby 1 order this to be printed and communicated to whom it may concern. 
 (Signed) " RAMON CASTILLA. 
 
 !'Lima, June 18th, 1846." v 
 
 XII.— THE NITRATE BEDS. 
 
 'JOSE PAZ SOLD AN. 
 
 These lie close to the extreme southern limit of Peru upon the borders of Bolivia, and 
 the veins extend across the borders into Bolivia. They constitute substantially the 
 sole resources of the world of their kind, and are practically inexhaustible, having the 
 exceptional characteristic of self-renewal wherever locally exhausted, every three or four 
 years. 
 
 The deposits on the Bolivian aide of the boundary line are considerable, but rela- 
 tively unimportant in comparison with those upon the Peruvian side, the latter covering 
 an area of not less than 100 miles by 400, say 40,000 square miles in all. 
 
 "See El Peruano, June 20th, 1846, No. 52. 
 S. Ex. 79 42 
 
658 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 These vast deposits have never been efficiently developed, having been worked only 
 by stray foreign " squatters," until a short time before the unhappy war now closing, 
 when President Pardo, on behalf of the government, bought out the " squatters' " 
 claims, and took charge of the public domain in government behalf, and had but just 
 inaugurated the new management when the war intervened and substantially stayed 
 all manufacture. 
 
 The victorious Chilians now propose to annex to Chili the entire territory both in. 
 Bolivia and Peru where niter is found. 
 
 The annual product of the Peruvian beds has been heretofore something like 
 $25,000,000 worth ; this volume under proper administration would be easily doubled, 
 if the demand should warrant such increase. The capitalized valuation of the Peru- 
 vian beds is estimated by well-informed merchants at not less than w-2, 000,000, 000. 
 
 XIII— SILVER, GOLD, AND COPPER. 
 
 If Peruvian credit has not been of the best hitherto, it has not been the fault of a 
 generous providence. The country, whose true history has read more like the dreams 
 of romancers than like the sober record of actual life, was never richer than she is to- 
 day. A financial policy which has consisted chiefly of promises to foreign lenders 
 and indulgence to domestic peculators, has gone naturally in company with an ad- 
 ministrative policy which aimed above all else at the avoidance of native industry and 
 even of native exploration. The undeveloped mineral resources of Peru in the hands 
 of such men as are now opening up Mexico, would revive what was seen in the days 
 of the Incas. A recent writer says : 
 
 " Between 1869 and 18/ some natives of Calama, in company with three Chilians, dis- 
 covered the famous mines at Caracoles (in Bolivia). The exploration of about 150 
 square miles disclosed 40,000 veins, and the production is valued at $50,000,000. A 
 small fraction of the working mines reported between 1870 and 1874 a production of 
 $'24,000,000 and a net profit of $20,000,000. In 1876-7 the same party discovered silver 
 deposits equally rich at Inca, only 30 miles from Calama, and work was just commenc- 
 ing in them when Chili took possession of the place. Copper mines are to abundant in 
 that region that they attract little attention, and only a few near the sea are worked. 
 On the coast of Peru, near the niter beds, silver and copper mines are no less abundant, 
 and those of Huantuyaya in Iquique have been celebrated since the last century. 
 
 " Gold is also found in g>eat abundance, and particularly on the banks of the River 
 Loa." 
 
 XIV.— HISTORICAL AND GENERAL SUMMARY. 
 
 I. The special wealth of modern Peru has been her nitrate and her guano. 
 
 •£. For the practical discovery of these — the discovery of their commercial value — 
 Peru is indebted solely in the first instance to Alexandre Cochet, and this indebted- 
 ness as to guano she has published to the world. 
 
 3. Under statutes existing at least seven years before his discovery of guano, Cochet 
 became entitled absolutely to one-third of all guano deposits within Peru. 
 
 4. If Cochet be not entitled to one-third of the deposits afterward pointed out by 
 Landreau, then unquestionably Landreau is entitled to it. 
 
 5. Peru has acknowledged her indebtedness to Landreau also, under circumstances 
 and in terms most extraordinary, and no question remains for discussion or revision as 
 to what is diie from Peru — whether to Cochet or to Landreau. 
 
 6. The decree concerning the public credit (ante, p. 45) fixes the indebtedness to 
 Cochet as one entitled to payment in full before any claim of later date has even pay- 
 ment in part. 
 
 7. This decree having been published in 1845 was notice to the world, and all cred- 
 itors of a later date are bound by it. 
 
 8. The claims of Chili give least concern of all, resting on force alone, and not on 
 equity. Besides she has Bolivia, her original antagonist in the struggle, to satisfy her- 
 self upon, and cannot be allowed to make an ally a principal victim to the prejudice of 
 equitable commercial creditors with older claims. 
 
 9. No attempt has ever been made by Peru to deny her indebtedness to either Cochet 
 or Landreau. The very decree of repudiation reaffirmed the obligation, and all the 
 courts refused to pronounce against the plaintiff. 
 
 10. Not a single dollar has ever been paid to either Cochet or Landreau, or to any 
 heir or assign of either. 
 
 II. The legal representatives of Cochet have an unquestionable title now to so much 
 of Peru as when converted into money will satify the debt, with interest and all costs 
 of liquidation and collection, and it is for them alone to elect what property they shall 
 take and how they shall convert it. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 659 
 
 12. The representatives of Land reau have a like right to payment after the prior debt 
 shall have been first extinguished. 
 
 13. The Chilians must take Peru, like any other estate, subject to all existing indebt- 
 edness, and must wait the satisfaction of such indebtedness first. The law of nations 
 is well settled, and cannot be successfully questioned. 
 
 14. This cldim is perhaps the largest of its kind in the history of the world, and all 
 governments will unite in demanding its proper adjustment as an important prece- 
 dent. 
 
 15. The present proprietors acquired title directly from Cochet, and being all native 
 citizens of the United States will vest the title in the Peruvian Company, a corpora- 
 tion already organized under the laws of one of the United States to receive such title 
 and to collect the claim. 
 
 XV.— CONCLUSION. 
 
 1. The amount of guauo already taken out of the Cochet islands — including the Chin- 
 chas — will be shown by the Peruvian custom-house records, and will aggregate, it'is 
 said, not far from $1,200,000,000 worth. The discoverer's one-third of this would be 
 $400,000,000, and interest upon this amount at six per cent — say for an equalized aver- 
 age of twenty years — would be $480,000,000 more. The amount remaining in these 
 islands is not positively known, and is probably not more than $200,000,000 worth : 
 and in the Landreau deposits, say $350,000,000 more. The Chilian plenipotentiary has 
 recently announced that his government are about opening very rich deposits on the 
 Lobos Islands — which are included in this group. 
 
 It is probably within safe limits to say that, including interest to accrue before the 
 claim can be fully liquidated, its owners will realize not less than $1,200,000,000. 
 
 2. Can Peru pay so much without exhaustion ? 
 
 Easily — and not even suffer. She has chiefly squandered her resources heretofore, 
 and will go on to squander them as long as she manages them. 
 
 Squatters have taken substantially all that has been taken from the great niter beds 
 hitherto, and the government's only interference was to pay them upward of $20,000,000 
 cash for their improvements. The first guano contract, as we have seen, brought the 
 government say, $75,000, and the contractors at leaBt $100,000,000. The $200,000,000 
 borrowed in Europe went into railroads on terms which left Contractor Meigs $60,000,000 
 profit, after providing for the army of favorites ; and the entire system of roads thus 
 built was then turned over to a French syndicate for a mere song. The £21,000,000 
 advanced a year ago by the house of Dreyfus was dissipated like snow in April, and 
 was in fact but the bonus which that thrifty firm could well affprd to pay for a con- 
 tinuance of its guano contracts. And now, finally, Peru lies at the feet of Chili, and 
 Chili proposes to take all the niter and all the guano. 
 
 3. It is not necessary, nor is it proposed, to use any severity in the collection of this 
 claim, nor to impose any hardship upon the debtor country, ^either is it necessary 
 to use any measures such as would result in individual taxation, or such as, in 
 Europe or the United States would necessarily put a pressure upon the masses of the 
 people. 
 
 Chili, by mere force of arms proposes to take $3,000,000,000 worth of property to in- 
 demnify herself for a war outlay liberally allowed at $100,000,000; and the code of 
 nations requires no neighboring government to prevent her. But commercial creditors 
 have prior rights, and the governments o'f which those creditors are citizens will fully 
 protect them. The comparatively small claims of the citizens of England, France, 
 Germany, and Italy have already been duly notified and allowed for, and the larger 
 right of the subjects of a not less vigilant government must receive equal considera- 
 tion. 
 
 4. The policy which may be finally adopted by the executive of the Peruvian Com 
 pany need not be foreshadowed here. It is sufficient for the purposes of the present 
 writing to point out the material facts as they exist, and to leave them with the re- 
 mark that not the slightest difficulty in shaping a practical policy need be experienced. 
 
 The proprietors of this claim will easily enough command any grade of executive 
 and diplomatic talent, and they have no idea of intrusting its management to any 
 grade below the first. 
 
 5. Nothing involved with this claim need require any interference in the debatable 
 merits of the war now closing ; and the Bole interest of this company being commer- 
 cial, its good offices as a practical mediator may even prove of exceptional value 
 to all governments concerned. Chili's original quarrel is with Bolivia; Peru only 
 came in later to support her nearest neighbor. The niter beds and silver mines of 
 Bolivia are alone sufficient to satisfy all reasonable claims which any code of war 
 recognized by civilized peoples could allow ; Chili will not be forbidden any legitimate 
 fruits of her success by this intervention of commercial creditors ; on the contrary she 
 will greatly better her standing in the family of nations by moderating her views within 
 
660 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 reasonable limits. The peoples of the leading governments value generosity above 
 force now, and the people of the United States in especial have recently shown a mag- 
 nanimity which they will be glad to see imitated by a sister republic. 
 
 6. Undoubtedly the Peruvian Company must in the interest of^all the creditors of 
 Peru, even if the extraordinary claims of her conqueror should remain unchallenged, 
 and in the interest of Peru herself, take the initiative in the adjustment of. her com- 
 mercial affairs. Peru herself is for the moment in both financial and political insol- 
 vency. Not even her flushed conquerors propose to destroy, but only to humble her. 
 Her. creditors much less could willingly injure her; but they are bound to protect 
 themselves, and to do so effectually. Leaving to the three governments all political 
 problems, the Peruvian Company will content itself with problems of finance, and 
 ■will investigate these as one creditor only among others, and will neither ask nor ac- 
 cept any other advantage than such as a mere matter of mathematics and of equity ia 
 inseparable from its circumstances. Every minor creditor shall, upon the proper proot 
 of his right, have as effectual protection, so far as the Peruvian Company can afford 
 it, as though he were one of its own shareholders. And toward the unhappy debtor 
 herself a policy will be observed which will convince her people that since Cochet 
 himself, her greatest benefactor, she has never had a friend so true and so helpful as 
 the successor to his rights, the Peruvian Company, which, standing between an ex- 
 cited enemy on the one hand and an ineffective administration of her great wealth on 
 the other, shall pay all her debts for her, without the waste of a single dollar or the 
 loss of a right that ought to be preserved. 
 
 The foregoing statement has been prepared primarily for the information of a select 
 number of representative American capitalists, to whom the first issue of stock will be 
 limited, for the sole purpose of securing an organization and executive worthy of the 
 enterprise. A few copies will also be placed in the hands of representatives of the 
 governments interested, as an advance courtesy and an assurance of the purely judicial 
 attitude which the Peruviau Company and its owners will maintain toward all other 
 interests which might, by ill judgment, be brought into collision with ours. Nothing 
 herein is intended for publication or for the public at present, and every copy now 
 given out is to be treated as only loaned for the time being. 
 
 The announcements of policy herein made may be relied upon as to all material 
 issues. The executive of the company will, in due course, speak officially and in 
 detail. 
 
 Meanwhile the undersigned will receive any overtures which authorized deputies 
 may desire informally to submit, and which may properly be laid before the executive 
 of the company so soon a9 it shall be finally constituted. 
 
 The terms upon which the first issue of stock will be made may also be learned upon 
 application to the undersigned. 
 
 JACOB R. SHIPHERD, 
 Attorney for the Proprietors, 10 Spruce Street. New York. 
 
 Dated May 20, l.-fel, 
 
 [Private draft memorandum. Return to Jacob E. Shipherd, 10 Spruce street, New York.] 
 
 TRUTH DEMONSTRATED AND CALUMNY DEFEATED.— BRIEF HISTORICAL 
 ABRIDGMENT OF THE FACTS WHICH PROVE THE TITLES OF ALEX- 
 ANDER COCHET TO OBTAIN THE PRIZE WHICH, AS TRUE DISCOVERER 
 OF THE VALUE OF GUANO, HAS BEEN AWARDED TO HIM BY THE COM- 
 MITTEE ON PRIZES OF THE CONGRESS OF 1849. 
 
 APPENDED IS THE REIMPRESSION OP THE NEW PROPOSALS PRESENTED TO THE SUPREME 
 GOVERNMENT AND THE NATIONAL REPRESENTATION". 
 
 The following is a coriect translation. 
 
 ADOLPHE PIERRA. 
 Phila., May 24th, 1881. 
 
 GUANO. 
 
 PROOFS THAT COCHET WAS THE FIRST ONE THAT MADE ITS PROPERTIES AS A FERTI- 
 LIZER KNOWN TO EUROPEAN AGRICULTURISTS, AND THAT, CONSEQUENTLY, TO HIM 
 IS DUE THE ESTIMATION, VALUE, AND APPRECIATION IN WHICH IT HAS BEEN HELD 
 FOR THE LAST TEN YEARS. 
 
 In the year 1840 Cochet, in his intercourse with Allier, communicated to him his sci- 
 entific observations upon the various properties of guano, its application to the arts, 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 661 
 
 or, as manure, to agriculture, in order that, through his management, a contract might 
 he entered into with the government, in which he was to have an interest. 
 
 Allier, betraying the trust confided to him by Cochet, procured for Sefior Quiros a 
 lease for all the guano islands. Allier did not even mention Cochet, and played to 
 such an extent on his confidence and credulity that he persuaded him that Seiior Quiros 
 had negotiated the contract without his consent, and lamented as unfortunate both for 
 him and for Cochet, the circumstance of the latter's not having contracted beforehand 
 for the lease of the aforesaid islands. Cochet discovered to him that much could yet 
 be remedied, since there was also guano on the continent. Allier then hurried to' 
 Quiros, and had him add an article to his contract, embracing not, only the guano con- 
 tained on the islands, but also all that might be discovered on the continent, which 
 article was approved by the government, then not aware of the magnitude of the trans- 
 action. On finding out such villainous proceedings, Cochet presented himself to the 
 council of state, exposed the fraud and robbery perpetrated on the nation and on him- 
 self, and asked for the abrogation of the ominous contract. In order to enlighten the 
 government on the subject, he forthwith published his dissertation on the properties 
 of guano, and its applications either to the arts or to agriculture as a fertilizer. This 
 is briefly the history of what happened. Look now to the respective documents. 
 
 On the 10th of November, 1840, signed Quiros the first contract, obligatory for six 
 years, the sum of 60,000 pesos to be paid in the following manner: 38,500 pesos in coin 
 credits, this being the remainder of the robbery made on that famous machine ; 1,500 
 pesos, cash, 10,000 pesos twelve months after; and the balance, 10,000 pesos, two years 
 from date. On the 4th of December of the same year three more years were voluntarily 
 added to the contract. Ou the 17th of the same month the coast was added to the 
 islands, on the petition of Quiros, who stated in his application that he had just been 
 informed that Punta de Lobos, Pabellon de Pico, and other guano producing places, 
 were really not islands, but peninsulas, forming part of the continent. (See " Los Pe- 
 ruanos," Nos. 40 and 52, and " El Comercio," No. 473.) 
 
 Notwithstanding the first remonstrances made by Cochet to the council of state, 
 dated February 15th, 1841, whereby the term of the contract was reduced from nine 
 years to one, they shipped considerable amounts of guano, which was sold at first at 
 120)peso8 per ton, in consequence of the information given by Cochet to Allier, companion 
 of Quiros, although the fact was not then made to appear in order to deceive Cochet. 
 However, Allier could not conceal his evil doings long, and Cochet, on becoming aware 
 of such treachery, resolved to make known his secret. 
 
 The wide circulation of the news of those sales having confirmed the truth of what 
 Coohet had announced, public attention was awakened, and the journals commenced 
 to occupy themselves on the subject. But as neither the true value of guano nor its 
 proper application to agriculture was yet kuown either in Europe or in Peru, the price 
 of guano came down to almost nothing in England as soon as they had extracted there- 
 from the large quantity of ammoniac, of which Cochet had told Aquiles, and learned 
 that there was an unfailing supply of the article in Peru, as Allier assured. 
 
 Every one was speaking and discoursing in the dark, when Cochet published, in 
 1841, his dissertation on guano and its properties. In that work the author stated 
 that this article was destined to produce a revolution in the arts, and by means of a 
 curious scientifically-formed scale, showed the method to be employed in using that 
 deposit as a manure, and indicated the relative quantities to be used for any kind of 
 plants or crops to be raised, by a simple rule of proportion. By this calculation Co- 
 chet proved mathematically that a cargo of guano was equivalent to Jourleen cargoes of 
 grain. (This dissertation is in print, and an abstract from it with the agricultural scale 
 can be seen in "El Comercio," No. 3665, Thursday, October 2d, 1841, and it is also at- 
 tached to the process.) All were moved at the appearance of such a document, and 
 the English minister sent immediately a large number of copies to England. 
 
 The true import of guano was known immediately from the memoir of Cochet, and 
 the council of state, which, by virtue of the previous representations, had resolved to 
 annul the contract of Quiros and Allier, had no more knowledge upon the value of 
 guano than that furnished by Cochet, said council being entirely ignorant of the high 
 price at which it had been sold in Europe. This appears from the report presented by 
 Counselor SenorD. Lucas Pellicer, in which it is stated that only after the council had 
 agreed to annul the contract, did he know of the high price at which guauo had been, 
 sold, and that through the minister of finance (de hacienda). It is therefore evident 
 that if public opinion had been alarmed at the contract of Quiros and Allier, and if 
 the council had rejected it as injurious and onerous, it was not in consequence of the 
 news received from Europe, for such news had not come, according to the declaration 
 of the council, but as a result of the disclosures made by Cochet. So certain is this, 
 that Sefior Laso explicitly relied on the merits of that dissertation to defeat the men- 
 tioned contract, in the session of the 18th. (See "El Comercio," No. 742, council of 
 state, November 18th, 1841.) 
 
 Allier answered, heaping insults on Cochet, but could not confute any of his mani- 
 festations, whose convincing arguments brought all the writers of that time to the 
 
662 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 support of Cochet, through their editorial articles, as can be seen by " La Bolso," Nos. 
 250, 251, and 255, November, 1841. 
 
 Dr. 6. J. Antonio Colmenares, in his opinion as fiscal (attorney-general), dated No- 
 vember 26, 1841, was in favor of annulling the contract ; and notwithstanding that 
 Allier made strenuouB efforts to sustain it, and so discredit Cochet, the latter, by the 
 force of his reasoning, carried his point, and rendered to the nation the inestimable 
 service of acquainting her with the great value of guano, and of enabling her to get rid 
 of a contract pregnant with irremedial injury to her interests. 
 
 However, up to that time, nothing was known in England as to the manner of using 
 guano as manure, as the tons sold there at 90 to 120 pesos were utilized for the ex- 
 traction of ammoniac, and their price fell considerably afterwards. But as soon as 
 the British agriculturists tried it in pursuance of the exact rule given in Cophet's dis- 
 sertation, and they found out that the results corresponded to what was announced, 
 guano was priced at its true value. This may be inferred from the important circum- 
 stance that only after the publication of Cochet's memoir was there a fixed rule for 
 the use of guano as manure ; and as there has never appeared any other, no doubt can 
 be entertained that it was the one which was followed. In 1845 D. Manuel Menendez, 
 president of the council, mentioned Cochet to prove that by his work he learned the 
 real value of guano, a fact that brought about the abrogation of the Quiros- Allier 
 contract. 
 
 By reason of what has been stated, Cochet, isolated as he was in society, with his 
 single-handed efforts, and shielded by justice and right, succeeded in timely prevent- 
 ing the ratification of that famous contract, which would have been both dishonorable 
 and ruinous to the nation, and to secure which Allier employed with eagerness and 
 activity all the craft of a Rodin, in order to blind the Peruvian Government and Sr. 
 Lemoines, charge' d'affaires, who, being on the point of interfering in the matter, de- 
 sisted on hearing him ; and he also had furnished the government iuformation and 
 reasons more than sufficient to induce him to annul that contract. (See a letter con- 
 cerning Allier in "El Comercio," No. 144.) Moreover, immediately after the abroga- 
 tion of that contract, the greater portion of the commercial firms of this capital, 
 desiring to engage in this business, and not being informed on the subject, consulted 
 Cochet. He satisfied them all, destroying any fears they might have entertained. 
 Among them may be mentioned especially Mr. Montane, Mr. Ponmaroux, and Juan 
 Hain, with whom he was in social intercourse. The latter manifested an eager de- 
 sire to engage in this business, trusting in the reasoning of Cochet's dissertation ; but 
 ■disheartened by a letter he had received from London a few months before, and which 
 he showed to Cochet, announcing that the guano sent by him had been thrown into 
 the Thames as useless, he dare not embark in the enterprise, and requested the under- 
 signed to tell him frankly whether he was certain that he was not mistaken on the 
 properties of guano as applicable to agriculture, and to give him some explanations 
 that should convince him. Cochet willingly complied with Sr. D. Juan Hain's request, 
 giving him all the information he could desire, and furnishing him with so many data 
 "that, his fears being vanished, instead of considering it a risky business, he saw in 
 it a safe and brilliant enterprise, and consequently was the first to make to the govern- 
 ment a proposal of a new contract, for which there were so many applicants that the 
 government suddenly received 800,000 pesos, at a time when it most needed the money 
 a few days after the unfortunate occurrences of Ingarvi, when the enemy was on the 
 frontier, preparing to invade Pern. The government had then no troops to defend the 
 country, nor money to raise them; but on receiving that sum, improvised a brilliant 
 army which defeated the plans of Bolivia, and caused the nation to be respected. 
 Who can gainsay these facts ? Nobody ; for all Lima has witnessed them. In regard 
 to D. Juan Hain and Montane and Ponmaroux, the facts have been published in the 
 newspapers of the capital whilst they were here, and they have not denied them. They 
 can also be found in my process. 
 
 Convinced of all these truths, which are based on positive facts and documents 
 worthy of faith the Congress of 1847 declared Cochet as the true discoverer of guano, and 
 the committee charged with the claims of Allier, in giving his opinions in favor of the 
 gentleman, affirmed that the prize was awarded to him, not as discoverer, as this title be- 
 longed to Cochet, to whom one should be awarded as such. (See "El Carreo Pernano," Nos. 
 921 and 925, and " El Comercio," No. 2552, sessions of the 22d and 28th December. 
 Discourses of Senores Roman, Gonsalez, and Polar, members of the committee.) 
 
 Finally, in 1849, the committee on prizes declared Cochet entitled to the prize of 
 5,000 tons of guano for his expenses aud discoveries, although imposing the condition 
 that he should reveal his other secrets before receiving the recompense. It does not 
 appear just on the part of the nation to require this condition from a man who, as 
 stated, has gained and deserved so well the assigned reward, which should be granted 
 long since. 
 
AFFAIRS IN CHILI, PEKIT, AND BOLIVIA. 663 
 
 ANOTHER DISCOVERY ON THE SAME GUANO. 
 
 It has beeu seen already that Alexander Cochet is the real discoverer of the estima- 
 tion in which guano is now held, and the author of the immense benefits conferred by 
 it on the nation. However, he offers to increase its value from two to threefold pro- 
 vided that the proper rewards are granted to him. For this purpose the most natural 
 proceeding is to authorize the Executive to make arrangements with Cochet, who has 
 made himself deserving of the public confidence by the authentic proofs he has given 
 to the supreme government in laying before the public the reality of his discovery, 
 for the last ten years relegated to oblivion as visionary, with his proposals and offer- 
 ings upon 
 
 NITRATE OF POTASH. 
 
 This important secret, which consists in the method of changing the bases of nitrate 
 of soda into nitrate of potash at a nominal price, and to facilitate a largely increased 
 production of gunpowder, is deserving of particular attention. Cochet has offered to 
 furnish the government with nitrate of potash for half the price paid abroad, and 
 promises to reveal an unfailing source of materials for its production peculiar to Peru, 
 by which the saltpeter of Tarapaca, which has always been sold for exportation at the 
 rate of twelve reales to two pesos a quintal (100 pounds), shall reach the price of 
 twenty to twenty-two pesos, which is the cost to the government for that of the third 
 decoction stored up for its powder factory. "Fool, charlatan, visionary" — such were 
 the epithets applied to him on making this proposition ; letters were referred to ; ex- 
 igencies were made ; they sent to Europe for information ; a note from a respectable 
 person which appeared to confute the assertion of Cochet was shown to him. Such an 
 accumulation of obstacles and contradictions had been directed against the truth of 
 the facts ; but Cochet can triumphantly say to his enemies : " Shame on you, for the 
 mean contrivance of your ioiquitous plot which has only helped to render more com- 
 plete my triumph. You have always wished to close on me the doors to glory. Behold 
 tow at last they are opened wide, and, with my glory, a brilliant future for Peru, 
 which will now know that Cochet never promises what he cannot perform." Effect- 
 ively, the assays made by order of the supreme government have ever resulted most 
 satisfactorily. This nitrate, on being examined and analyzed, has turned out to be 
 superior to the best European article, and the gunpowder manufactured from it has 
 greatly surpassed in quality the best made in this country, although this is superior to 
 the European powder. There is nothing else to be desired, and the only thing left to 
 be done is to empower the Executive to arrange with Cochet about the reward to be 
 bestowed upon him for such a valuable discovery, considering the great wealth it can 
 confer upon the nation. It may make Peru the gunpowder mart of the world. The Amer- 
 ican nation will come here for her supplies in view of the very low prices at which it 
 it may be sold, and its unsurpassed good quality. Moreover, if the necessity of this 
 article is considered, whether for supplying the ordinary demands, for the leveling of 
 mountains, for the working of new mines, or for the opening of canals and roads, it will 
 be easy to form an accurate idea of the magnitude of the offer. The manufacture of 
 this article is susceptible of the greatest improvement by following Cochet's instruc- 
 tions, and this will bring to the government a revenue nearly equal to that derived 
 from guano, with the advantage of its being inexhaustible. 
 
 Cochet expects that the sovereign Congress will give its attention to all that has 
 been stated, and that the year 1851 will see rewarded the merits of a man whose only 
 aim in life has been to promote the prosperity of Peru 
 
 It is doubtless to be feared that the ill-omened man who continually persecutes and 
 annoys me may now, as ever before, try to deceive the deputies, employing the inex- 
 haustible resources he can command in the field of defamation and imposture. It would 
 not be strange if by means of his despicable maneuvers he would seek to obstruct the 
 course of negotiations now pending, and to render doubtful my rights, now crying down 
 my discoveries, now planning impediments or interposing obstacles, with the purpose of 
 making me despair at last, and abandon what has been always the dream of my life ; 
 that is to say, the noble pride of being able to attain the glory of being useful to the 
 Peruvian nation, rendering her all the service within my power. However, I trust, 
 and this encourages me, that this time his schemes shall be frustrated, for I have, great 
 confidence in the integrity and good sense of the Senores Eepresentantes, who will not 
 be willing to deprive their country of the advantages I offer her, in order to heed the 
 futile suggestions of a man who, for the merit of robbing the nation, succeeded in 
 securing a gift of 10,000 tons of guano ; whereas they kept me for ten years bringing 
 forth my claims, without obtaining the prize that I have earned by my researches and 
 efforts. It is not, therefore, to be thought of that the national representation, forget- 
 ting its own dignity, may trammel with conditions against a just grant. By such pro- 
 ceeding it would gain little honor, as this would amount to the seizure of a man's prop- 
 Arty, since the 5,000 tons of guano granted to me have been earned beforehand by my 
 work. If I accepted one of the conditions imposed on me, I was forced to it by the 
 
664 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 persecutions and taunts to which I -was subjected, as I wished to demonstrate in an 
 evident manner that I was not a visionary; and I have victoriously proved this with 
 the evidence of the new discovery, which tests have resulted as satisfactory as they 
 are convincing to the supreme government. 
 
 That I may be awarded proportionate prizes separately for my new discoveries, in 
 view of their utility, is an act of justice entirely independent from the subject of guano. 
 
 Once again, I hope that the Setiores Representantes, taking all my statements into 
 consideration, will show at last that Peru does not forget the service received, nor 
 the benefits made in behalf of his aggrandizement. _, 
 
 ALEJANDRO COCHET. 
 
 Note. — Persons desiring further information may read the numbers of " El Corner- 
 cio" of Saturday 27th, Monday, 29th of September ; Thursday 2d, Wednesday 8th, 
 Thursday 9th, Friday 10th, and Tuegday 14th, of October of the present year, 1851. 
 
 LAST PROPOSALS PRESENTED TO THE SUPREME GOVERNMENT AND TO THE NATIONAL 
 REPRESENTATION, BY ALEJANDRO COCHET. 
 
 Messrs. Editors : Please publish my last proposals to the nation, with the docu- 
 ments belonging thereto. 
 
 I do not send you the whole process for public information on the subject, because 
 it is extensive and voluminous ;' but if I carry my point, as I expect, from the high: 
 wisdom of the men at present at the head of the government, the people shall see that 
 I have never endeavored to deceive them ; that I have worked, and worked for their 
 good, and that if I now claim the prize of my wakeful labors, it is only to prevent a 
 repetition of my previous experiences. However, I can affirm that, if I derive any 
 benefit^ from my discoveries, those which will accrue to Peru from the same shall be a 
 thousand and a millionfold greater, and this being my principal and favorite idea, I 
 shall feel happy if the nation, accepting the fruit of my assiduous labors, will reach 
 the full measure of weal 1 desire for her. 
 
 ALEJANDRO COCHET. 
 
 Lima, September 15th, 1851. 
 
 Most Excellent Sir : I, Alejandro Cochet, a citizen of the French Republic, re- 
 spectfully appear before your excellence and state, that during the government of your 
 predecessor, General CaStilla, I proposed to the Cuerpo legislature some effectual 
 means to increase the public wealth. The opinion of the committee, to be found in 
 the process, a copy of which I accompany, and a member of the chambers, are vouch- 
 ers of the advantages to accrue to the state without laying any burden on it. The 
 closing of the sessions of Congress prevented then the acceptation of my propositions ; 
 consequently I waited for the meeting of the ordinary legislature, in order to bring 
 this business to a close. 
 
 Now that the new administration of your excellence has called an extraordinary 
 session of Congress, one of the objects of the convocation being (object 8 of the decree 
 of the 30th of April ultimo), " to consider the public revenues, and, should it be neces- 
 sary, to devise means to meet entirely the calls on the public treasury for the year," 
 the time has come for my petition to be considered in the extraordinary legislature, 
 since its object is to increase the public funds without any burden on the exchequer. 
 If I do not make evident the reality of the resources I wiil bring out, I will not only 
 forget the prize of 5,000 tons of guano proposed by the committee, but be also the butt 
 of public censure and contempt and opprobrium, for my failing in substantiating my 
 offers. I am very certain that on accepting my proposition, Peru will have a source 
 of wealth from which she shall draw millions on millions for centuries to come, the 
 prize being too small and not proportionate to the magnitude of the discovery. 
 
 May Divine Providence grant that this great work has been reserved for the admin- 
 istration of your excellence ; in the same manner as He reserved the discovery of this 
 New World for Ferdinand the Catholic, and to Da. Isabella I. who listened to the de- 
 mands of Columbus the Genoese, when they had been slighted in other kingdoms. 
 
 If your excellence desires to have a more extensive and complete knowledge of the 
 matter, be pleased to look over the two processes, one of which can be found at the 
 minister of war's office, and the other at the secretary of the honorable chamber"of 
 deputies, which will throw sufficient light on the subject. 
 
 I am ready to give summarily or minutely any proofs that may be required to 
 thoroughly satisfy the government about the reality of my discoveries at my expense. 
 Therefore, 
 
 To your excellence I ask and pray that he may deign to have the extraordinary Con- 
 gress, in accordance with the edict of convocation, take some action about my peti- 
 tion, which I consider to be right and necessary to the prosperity to which the Peruvian 
 nation is destined. 
 
 Most excellent sir, 
 
 ALEJANDRO COCHET. 
 Lima, May 7th, 1851. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 665 
 
 COPY OF THE REPORT OF THE COMMITTEE OF THE NATIONAL REPRESENTATION OF THE 
 LAST CONGRESS OF PERU ON THE PETITION OF COCHET. 
 
 The committee on prizes, to which was referred the petition of D. Alexandre Coohet, 
 a citizen of the French Republic, has taken into consideration not only the address of 
 this chemist and naturalist, in which he demands theadjudgmentto him of the 5,000 tons 
 of guano that the national representation is disposed to grant to the SeBores Allier and 
 Quiros, believing them to be the first discoverers of the fruitful properties of this manure, 
 and the first to introduce it into the European markets, but also the number of docu- 
 ments on the subject published through the press since 1840, and for many years pre- 
 viously. 
 
 It would be too diffuse to relate all the revelations found in such publications, as 
 they have been circulated in every corner of the republic, and have been seeuby the gen- 
 tlemen composing the chamber ; therefore, the committee will confine themselves to a 
 brief review of the merits and scientific learniug of the petitioner. This person came 
 to Peru in 1826, as a scientific traveler, with the intention of returning to his country 
 at the close of his explorations. He brought letters of recommendation to the govern- 
 ment of that epoch, and invited by it and pressed by Generalissimo Gamarra, who 
 knew bis merits, to fix his residence in Peru, he has, to the present time, remained in 
 the land as his adopted country, relyiug on the distinguished protection which the 
 government tendered to him, as appears from the documents in his possession. From 
 that time he devoted himself to travel over and survey the whole territory of the re- 
 public. He frequented the mountains of the Andes, including the Pampas of Sacra- 
 mento, Canibos, and the palisade of the Portuguese, on the Amazon River. There be 
 observed, speculated, and made interesting discoveries in the vegetable, animal, and 
 mineral kingdoms. He extracted quinine and balsams, made the essence of cinnamon, 
 and recognized many resins, perfumes, and medicinal drugs. He traveled over the 
 greater part of the Cordilleras, so rioh in varied and valuable minerals, which he has 
 examined and utilized ; and also over the sea-coast and plains of Peru, wherehe discovered 
 untold riches, especially in the saltpeter deposits of TarapacSl, where he converted the 
 nitrate of soda into nitrate of potash. This discovery, and the information of the 
 method of utilization, up to that time unknown, even in the country, would be a source 
 of immense wealth for the nation, affording at the same time a livelihood for many 
 poor families, and facilitating the manufacture of gunpowder, which, becoming au 
 article of exportation, would give a supremacy over the contiguous states of this con- 
 tinent, and even over Europe, and would bring very large sums into the nation's 
 treasury. 
 
 Heretofore it was believed that the guano analyzed by Cocbet was only useful as a 
 fertilizer, which would make agriculture progress wonderfully ; but this chemist has 
 discovered in this product other properties, which double its value and prove the 
 power of science. This last discovery is still unknown in Europe, and we should take 
 advantage of it when it is offered to us. Since Providence has provided us with rich 
 deposits of guano, we must not neglect the occasion of increasing three and fourfold 
 the value of the national products, convinced, as we are, that the nation would thereby 
 secure, new sonrce of wealth. 
 
 All civilized nations greatly appreciate the importance of new discoveries, no matter 
 how small they may be, and thus hasten to lavish prizes and rewards on inventors. 
 All flatter, invite, and fondle the learned ; and Peru, being ranked as a civilized na- 
 tion, cannot afford to lose the advantages offered by Cochet, which will accrue to the 
 immense benefit of the country, by refusing him, through a thoughtless and despicable 
 economy, the moderate reward for which he asks. Really, the complete discoveries of 
 the chemical properties of guano, their advantageous applications to industry and the 
 arts, and the knowledge that more profitable substances may be extracted therefrom, 
 persuade us that such is their paramount importance, that they are destined to revo- 
 lutionize the 'sciences and the arts. 
 
 Besides this, the petitiou of Cochet is based on the constitution, article 5">, paragraph 
 14. The fundamental law guarantees the liberty of all kinds of industry, and exclu- 
 sively that of those inventing something new or improving other inventions ; but the 
 appellant wants an inducement, a stimulus, a reward proportionate to the magnitude 
 of his discoveries. He could indeed, in view of his petition (like Columbus), enrich 
 another nation with the very products of Peru, which would be unpardonable for us, 
 in the present penurious and distressing circumstances of the republic, overwhelmed as 
 she is under the enormous weight of the public debt, both foreign and interior, from 
 which it is our duty to free, or at least to relieve her. 
 
 Upon these remarks, concisely and summarily put forth, the committee proceeds to 
 give a safe opinion, without contingency or risk, in the following terras : 
 
 The 5,000 tons of guano demanded by Don Alejandro Cochet, as a compensation for his 
 expenses, and as a reward for his discoveries, are adjudged to him, with the condition 
 that he discover the other properties that raise the value of this article, for which, and 
 for disclosing and teaching the method of converting the nitrate of soda into nitrate of 
 
666 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 potash, other prizes shall be awarded to him proportionate to the advantages accruing 
 to the nation, this to be guaranteed by the national representation ; and in order that the 
 resolution maybe punctually and fully carried into effect, let it be transmitted to the 
 executive, empowering it to stipulate with the concerned party upon the prizes to be 
 given him, either in guano or money, or both, the petition being previously required to 
 furnish his proofs personally and privately to the government or its agents, with the 
 purpose of having his experiments taught and published after he has obtained. the 
 prizes. | 
 
 So advises the committee, with full conviction, mutual fidelity, and without involv- 
 ing or risking the interests of the nation. Let it be reported. 
 
 > ATA.NANO MACEDO. 
 
 Committee 'Room, Lima, 
 
 September 30th, 1849. 
 Agustin Ratos, Thomas Ramis, Ambrosio Ortega, Manuel Cordero. 
 
 To the National Representation : 
 
 Sir : I have endeavored constantly and obstinately for ten consecutive years to trans- 
 fer to the Peruvian nation several kinds of discoveries that must raise her to an incredi- 
 ble height of wealth, and I have also demanded the reward due to me for the first dis- 
 oovery I made and revealed, viz : To have raised guano to the estimation in which it is 
 held at present. I have failed ; my proposals and petitions have remained in the offices 
 of the ministers of the various administrations; some have been long sleeping under 
 their portfolios ; others have been eaten by moth in the archives of the government for 
 the last eleven years, without their having ever deigned to take action on any of them, 
 and I have been kept with folded arms, unable to dispose of my own person, not know- 
 ing what to do or what to think, until, being oat of patience, I was compelled to jump 
 over all the barriers raised before me by the enemies of the country and mine, in order 
 to be finally heard in the last legislature. 
 
 The great majority of the senores diputados have most favorably received my peti- 
 tion, and knowing them to be advantageous to the country, they have taken an eager 
 interest in letting it see the accompanying opinion of the committee, which not only 
 does me j ustice, but also confers great honors on me. These honors I do not deserve, 
 for I am indebted for those discoveries rather to the goodness of God, who ha4 deigned 
 to recompense with them my assiduous labors than to my little scientific knowledge. 
 I have not brought here great science, but I have done more than those who have been 
 and are still boasting that tbey brought it. 
 
 However, the committee impose on me an undue condition on granting the small 
 reward I ask for — a reward which is promised and guaranteed by the constitution, 
 which I have lawfully earned, and which strict justice entitles me to. But that does 
 not cause me to dismay ; and although the prize should be granted without the condi- 
 tion of revealing my other discoveries, I willingly accept said condition, if only to show 
 that I am not an imposter or charlatan ; this with the proviso that I shall be awarded 
 the other prizes proportionate to the importance of the discoveries, saving my right to 
 service already rendered, and for which the committee has made grants ; because a con- 
 tract does not depend on outside parties, nor has ever bound them, nor should I in 
 human justice, be shackled with so many and so great stipulations, to secure what is 
 lawfully my due. 
 
 But as I said before, I accept the sole condition of proving what I promised in my 
 memorial, concerning the transmutation of the nitrate of soda of Tarapaca into nitrate 
 of potash, on the same condition laid down in said memorials, in order that I may be 
 finally granted both prizes, the first of which has been already twice earned, and the 
 second, considering the magnitude of the discovery, for which I only ask a hundred 
 thousand dollars, as will be seen as soon as it is revealed, is not paid in its just price 
 with a million of dollars. Notwithstanding the indisputable merit of having openly 
 and generously published the propositions for my said discoveries, I have been exposed 
 for ten years to have my footBteps followed by captions speculators, covetous of dis- 
 coveries not belonging to them, in order to take advantage of mine. Indeed, many per- 
 sonsin this capital have hastened to make many an experiment, praying the government 
 not to take any action on this affair, as they were sure to find out my secrets. Gen- 
 eral Castilla, being convinced that the attempts made here were fruitless, ordered his 
 consuls in France and England to ascertain whether said discovery had been made in 
 London. This has been affirmed by a certain person, well known in the country, 
 with the sole object of annulling my proposals, and, as is customary with him, 
 trying to injure me, to the prejudice of the nation, he having, on the other hand, re- 
 quested the most famous chemists to try and discover my secret. But all of these at- 
 tempts have proved unsuccessful, for nothing has been obtained after so many years' 
 experimenting, and Serior Rivera, Charge d'Affairesin London, about six months since, 
 aent a note to this supreme government, informing it that notwithstanding having 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 667 
 
 consulted all the learned men of France, England, and even Germany, no headway had 
 Ijeen made in regard to the investigation of my discovery. This note I have read my- 
 self in the minister of war's office. Let them discredit my assertion, let them discredit 
 all those learned men of Europe to which I have referred, who are interested in reveal- 
 ing any useful discovery, for love of glory and for love of mankind, to which they con- 
 secrate their labors ; but let them believe at least the testimony to be found in the 
 minister of war's office, furnished by said person, also a scientist and a professor of 
 chemistry, and they shall be convinced that I am the sole possessor of the secret. The 
 strict and religious fulfillment of the award of the prizes I have named, on the part of 
 the supreme government, will enable me to reveal other discoveries, perhaps superior 
 to the ones above mentioned, which are to be measured by other prizes proportionate 
 to the advantages accruing to the nation, and one of said discoveries being upon the 
 guano, it will increase its consumption and enhance its value. I pledge my word of 
 honor that, immediately after the conclusion of the saltpeter affair, I will giye the 
 proofs which shall substantiate my secret, which I can easily do, in a few hours on a 
 small scale, or in a few days on a larger one, to the entire satisfaction of the govern- 
 ment. I will proceed forthwith to present to the supreme government a proposal con- 
 cerning this affair, in order that it be transmitted to Congress, with the government's 
 observations, and that Congress take the proper action in the premises, when I trust 
 I shall have the glory and the satisfaction of proving the success of this my last 
 discovery. But if, unfortunately, I do not succeed in raising three orfourfold the value 
 of guano, of which I am almost certain, I am completely sure to increase its price, and 
 that the rise and estimation I shall give it will be remarkable enough to deserve a 
 proportionate recompense. 
 
 If any of the setiores diputados should doubt that I will keep my word in regard 
 to enchancing the estimation of guano, I agree to leave in deposit half the amount of 
 the prize in guano, 2,500 tons of entry out of the 5,000, twice earned, as a guarantee 
 for the performance of this laBt proposal, the same to be forfeited in case of failure ; 
 but if I succeed I shall have earned said prize three times, and with three times more 
 merit than had Jacob to obtain the hand, of his beloved Rachel for carrying on his 
 shoulders the blear-eyed Leah. 
 
 Let it be understood that this third discovery has no connection nor contingency 
 with the other two prizes, bound in fact by the voluntary judgment of the com- 
 mission, which I have accepted, so that my proposals are three instead of one. It 
 will be also stipulated an amount equal to that to be forfeited in case of failure in 
 raising the price of guano, shall be ultimately earned ; or vice versa, on obtaining the 
 success, said amount shall be added to the award that shall belong to me for enhanc- 
 ing the estimation of said guano. This shall be stipulated after the payment of the 
 first two prizes gained, and before I will proceed to furnish the proofs of this third dis- 
 covery. If I made the sacrifice of revealing and giving away this secret, which 
 worked by myself in Europe would bring me an exorbitant fortune, as I could utilize 
 it under the veil of mystery by disguising the substances without altering their 1 ef- 
 fects, it is nothing but justice that the Peruvian nation shall assign and secure to me 
 a proportionate share iu the source of wealth which I present to her. 
 
 Moreover, if no agreement is arrived at upon these conditions, there shall be no bet- 
 ting, and consequently the amount left in deposit shall be delivered to me. Perhaps 
 I will be charged with selfishness for asking many prizes. I will say to this that I 
 consider myself in the same category as miners, who fix a stake on eaoh vein they dis- 
 cover, the same being granted to them by the wise laws on the subject , for the more 
 riches that are discovered the more is society benefited, and it is both an act of justice 
 and a stimulus to progress to secure to discoverers a part of the wealth they bring 
 out. If I aspire to a fortune, it is not for the purpose of hoarding it up, but of using 
 it in the prosecution of the task I have imposed on myself of studying the natural 
 productions of a country yet unexplored, or in enterprises of general utility, under the 
 impulse of modern ideas of the. habits of this profession. 
 
 Notwithstanding that my proposals have been heretofore looked upon with indif- 
 ference, I do not believe' this to have been the fault of preceding forms of govern- 
 ment; I think that it has depended more on the individuals in power, although other- 
 wise competent, for on other occasions they have expedited briefly and advanta- 
 geously some business that seemed to be more arduous. The advantages of my propo- 
 sals are dear and highly important for the good of the nation, as well as of every one of 
 its citizens and inhabitants, and of society in general. If my proposals have not been 
 looked at in this light, it is because a cloud has been interposed or the matter has 
 been seen through a false prism, because it is mine, although it is more the nation's 
 interest than mine. 
 
 My memorial on guano was pending in the last Congress at the close of its sessions, 
 and ordered to be acted upon, with the report of the committee, embracing both pro- 
 posals, separately, but united in said report, though each one of them referred to dif- 
 ferent subjects, as will be seen. 
 
668 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 One thing is the first discovery of the properties of guano, recognized at present in 
 all the markets of the world, and its increased demand in proportion to its enhanced 
 advantages ; and another the discovery, now offered, of the process of converting the 
 nitrate of soda into nitrate of potash. Which one of them is more advantageous to 
 Pern I dare not dogmatically decide, because either of them is susceptible of an in- 
 definite development, the one, seemingly the less important, being destined to make 
 Peru, by her inland products, the great gunpowder mart among foreign nations — a 
 fact which I will delay in proving only as long as the government will in demanding 
 it. I lay aside the consideration that this article is of paramount necessity for the 
 safety and dignity of the Peruvian nation, as well as for the opening of roads and ca- 
 nals, and for developing the working of mines in order to bring out those masses of 
 precious metals so abundantly found in the bosom of those proud mountains of Cor- 
 dillera — a fact which is plainly announced by their outward appearance. 
 
 "^he proof of my good faith appears in the revelation of the advantages of guano, 
 and this has been followed by an ominous silence, paralyzing the efforts of a for- 
 eigner who proposes to discover national riches which are hidden from the eyes of the 
 inhabitants of the country. I have often, though vainly, tried to recover the memo- 
 rial on guano which remains in the minister of war's office, in order to make use of it. 
 Congress will be pleased to ask for it, with the corresponding report and the note of 
 urgency, in order that, as on the preceding instance, it may take some action on my 
 aforesaid proposals. 
 
 Sir, I have traveled for more than fourteen years over this country, not without de- 
 riving some advantages for the industry, as is the case with many who travel at the 
 expense of governments and societies, devoted to the higher sciences, and with the 
 purpose of gathering specimens of natural curiosities for the collections of natural 
 history, but carrying with me, at my own expense, the necessary implements where- 
 with to examine and recognize the different kinds of natural products, and to ascer- 
 tain whether they could be useful to the arts and to commerce. In order to prove 
 what I say, as well as my devotion to the natural sciences, I will take the liberty of 
 referring to one of the many persons who closely have seen me at my explorations in 
 the interior of the country. Such is Senor D. Pedro de la Quintana, a member of the 
 chamber, whom I believe to be here at present. 
 
 In these researches, during my long and laborious travels, I have spent a capital 
 which would have enabled me to live rather comfortably and decently in Europe. 
 In its stead, I have ruined even my health ; and, although I have run out of pecuniary 
 resources to carry out thoroughly my observations and my essays, I believe, however, 
 that among the natural products that I have examined, some will become articles of 
 great importance and estimation in the commerce of exportation and in the arts, if I 
 see the day when I shall have sufficient means to devote myself to labors of this na- 
 ture with the calm and tranquillity which they require. I am not inclined to promise 
 what I cannot substantiate, nor to expose myself to be treated as a visionary or a 
 charlatan. I do not let myself be deluded, for I am always on my guard against a 
 delusion. Notwithstanding that chemistry has exacted rules and processes, I repeat 
 over and over again my operations and my analyses hundreds, of times, if necessary, 
 until I feel convinced that my discoveries ar§ not dreams nor castles in the air, as is 
 supposed, but a reality — a gift that Divine Providence gives the little ones — to be 
 transmitted to mankind. 
 
 Permit me to speak to you with the freedom and sincerity I am accustomed to r 
 The artificer and the discoverer of useful things should never be oppressed. They 
 should rather be afforded a favorable position, if it is desired that their capabilities 
 be developed, and that they become advantageous to all without injury to them. 
 How many sublime discoveries have been buried with their discoverers, the latter 
 having been unwilling to submit to tyrannical and humiliating conditions. 
 
 I should keep you on your guard against the enemies of the country and my own, 
 who have done so much injury to the nation, thwarting my plans and my proposals- 
 up to this time. 
 
 If you desire to promote the welfare and the wealth of your country ; if you wish to re- 
 ceive the blessings of your constituents; if you want to deserve the gratitude and es- 
 teem of the whole world ; if, finally, you are willing that the Congress of 1851 be made 
 famous, and your names be perpetuated to posterity, give my affair, now pending in your 
 secretary's office, the preference and attention it deserves ; not for my sake, but because 
 it is demanded by your constitution ; by your oath, and by your loyality to your constit- 
 uents, who have intrusted you with the nation's prosperity. Taking as your guide the 
 interests of the country, do impartial and equitable j nstice to him who offers you so 
 many advantages, and is willing to enhance your power ; otherwise, everything will 
 be frustrated. If you add conditions to those I accept at present, as tending to your 
 good and mine, you will discourage me. I will forever give up the hope of having the 
 glory of seeing my projects realized, and to receive the indemnity and recompense for 
 my heavy outlay, wakefulness, time, and assiduous labors. I therefore inform you 
 that I will, for the last time, call your attention to the reasons I have stated. My 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 669 
 
 health is broken, and does not permit me to delay or remain in the country, if, finally 
 you do not admit me, for what object could detain me here when I am certain that, 
 carrying my knowledge elsewhere, I shall soon secure a fortune and the satisfaction 
 of seeing my labors justly appreciated. 
 
 The administrations of the government have been changed in the course of theso 
 years, and I do not believe that the polioy of burying my inventions and proposals 
 will be continued by the incumbent now iu the presidential chair; and Congress hav- 
 ing been partly renewed this year, this circumstance has led me to make this expos- 
 tion more prolix in order to give a more complete information. 
 
 ALEJANDRO COCHET. 
 
 REFUTATION OF SENOR RIVERA'S NOTE. 
 
 Most Excellent Sir : Don Alejandro Cochet, a French citizen, and a resident here, 
 to your excellence respectfully states as follows: I never believed I should see myself 
 in the necessity of refuting the note of the charge d'affaires to P. H. B. M. (which was 
 attached to my process), relative to my communications. These had been referred to 
 him in order to ascertain whether my discovery of the process of converting the base 
 of nitrate of soda into nitrate of potash had been made in Europe, as was affirmed in 
 an apochryphal letter, maliciously published iu the newspapers of this capital, three 
 years ago, on the eve of concluding the contract for the sale of my secret to the gov- 
 ernment. • I did not believe, I repeat, in the necessity of a refutation, for the note is 
 only a heap of absurdities and contradictions. 
 
 I presumed that the contents of my process were more than sufficient to destroy all 
 doubts, and the obstacles they might throw on my projects. On the one hand, I can- 
 not help wondering at the manner in which the note itself appeared at the minister's 
 office, also on the days in which General Castilla had decided again to make the ac- 
 quisition of my secret ; and on the other, I have been informed that this document is 
 producing its injurious effects against my project, for the simple reason that a charg6 
 d'affaires shall be believed more than I, in the absence of chemical knowledge, to judge 
 correctly on the subject; so I see myself in the unpleasant necessity of saying what I 
 would like to withhold. But both my honor and my interests compel me to make the 
 painful sacrifice of my inmost sentiments. 
 
 It seems, most excellent sir, either that I have not been understood in regard to the 
 essential objects of my proposal, or that I have not been able to give a clear explana- 
 tion ; I beg leave, above all, to assure you that I find it hard to believe that the note 
 or report attributed to the charge' d'affaires comes from the party whose name it bears — 
 a name which I consider respectable, and which, for this reason^ is used by euemies to 
 thwart the enterprise, and bury in its cradle this great discovery. 
 
 The note of Sefior Rivera says that my secret is known in Europe. Iu my memorial 
 I do not claim to be the discoverer of the process of changing the base of nitrate of 
 soda, because all chemists know that not only the bases of all the nitrates can be 
 changed, but also those of all other salts, whenever other bases are presented that 
 have more affinity with their acids. I never denied that an operation equal to mine 
 could be made in Europe or elsewhere, either with home or foreign materials, for I 
 know that, since the discovery of nitrate of soda, this transmutation has been obtained 
 both here and in Europe, giving as a result a superior quality of nitrate of potash. 
 There are public and evident tacts which, although they appear to be unknown to 
 Senor Rivera, are proved by the report of the subdirector of the powder-factory of 
 this capital, Don Simeon de la Rosa, to which I refer iu my memoir on nitrate of potash, 
 tiled in the process on the matter. And if my assertion concerning these facts is there 
 justified, not less are verified the ruinous results of the undertaking engaged in by the 
 contractors of the aforesaid factory in order to work out that transmutation. Relying 
 on a method of changing the mentioned base, bought from a German naturalist sent 
 by the court of Spain, they were compelled to abandon their work, as is shown, being 
 convinced, after losing $200,000, that the cost of the operation was exceedingly great. 
 The same has been corroborated by the mentioned subdirector, who, operating by the 
 same method, which he holds, written in the hand of said cnemist aud naturalist, as- 
 serted that the nitrate of potash was obtained from the nitrate of soda of Tarapaca at 
 a cost of 79 pesos 3| reals per quintal ( 100 pounds). This was the confession of said 
 Senor La Rosa, in his report of September 11, 1823, to the commandante-general of 
 artillery (it has also been copied in said memoir), giving an account of the results of 
 the experiments which the government resolved to make at that time, being pressed 
 by the scarcity of that article. The same thing has also happened in Europe, where, 
 encountering always the same obstacles, they have likewise given up the fabrication 
 as often as it has been undertaken, not by reason of the bad quality of the nitrate 
 produced, but for want of cheap materials to obtain the same results. This is the 
 great problem solved in two words ; this is the difficult point made clear, It is the 
 discovery of suitable materials for said transmutation which has been accomplished by 
 me on this favored land — materials whose existence and application has heretofore 
 
670 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 been unknown. I repeat, and will repeat it a thousand times, the sole revelation of 
 their existence and their properties is not paid with a million of dollars, considering 
 the incalculable advantages accruing to the nation from their discovery. 
 
 Notwithstanding this clear and true statement, who would believe that there is still 
 in this capital a person (easily to be recognized, without being a physiognomist, by the 
 remorse for his depraved acts clearly revealed on his countenance) — a person who has 
 this very day the audacity and the effrontery to carry a book on chemistry under his 
 arm, in order to persuade that the secret of converting the base of the nitrate of soda 
 into nitrate of potash is already known, and that, consequently, I pretend to deceive 
 the government? Wicked man ! what matters whether the result is produced, if it is 
 not obtained by the same means which I offer or by others with an equal economy? Is, 
 peradventure, the transmutation the point of the secret? And even it were discov- 
 ered — an event which shall not take place for centuries — are not the materials the ex- 
 clusive property of Peru f 
 
 What shall the country do with these prime materials which she possesses in inex- 
 haustible quantities, for the manufacture of nitrate of potash, if there is nobody to know 
 them nor how to utilize them for this purpose ? It is strange that that wretch, who 
 has been for so many years persecuting me and depriving the nation of this source of 
 wealth by all means at his command — it is strange, I say, that this man, who pretends 
 to be a naturalist, a chemist, and a great general of the empire, does not present the 
 same materials and the same advantages I offer, but only iu its stead the base and vil- 
 lainous maneuvers which he has employed heretofore in order to surprise, the good 
 faith and credulity of his hearers. Here is the point of the dimcult3 r , and as long as he 
 does not overcome it — a result he has not been able to accomplish up to this time, not- 
 withstanding that since the announcement of my discovery he is endeavoring to do it, 
 both here and in Europe in order to indemnify himself for the abrogation of the famous 
 guano contract — as long, I repeat, as he does not overcome this obstacle, the supreme 
 government should look with contempt upon his machinations, and should not prolong 
 the long period in which he has succeeded, thereby to deprive the nation of so immense 
 and easily-to-be-got resources. 
 
 Your excellence will excuse this passionate digression to which I have been involun- 
 tary driven by the acrimony engendered by the gratuitous persecutions of a man upon 
 whom I was once willing to bestow great benefits. Believe me, your excellence, he, 
 and nobody else, has been the principal cause of this failure on the part of your prede- 
 cessors to hear or heed me ; and, although he perseveres yet in his headlong purpose, 
 I have this time a presentment that your excellence, penetrating into his plots, will 
 know how to defeat his plans. All my hopes rest now on the eminent character of your 
 excellence. I consider it as the key which will open to the Peruvian nation the gates 
 to that and other sources of wealth that your predecessors declined to touch. I enter- 
 tain no doubt that to your excellence has been reserved the glory of raising Peru to 
 the highest plane of opulence to be desired by any nation. 
 
 Continuing my exposition, I hereby insist that my aim has been to secure two advan- 
 tages : The one is not to be dependent on any foreign materials, for Peru has them in 
 her sod in unfailing abundance ; the other, to bring down to the lowest-point the cost 
 of producing a nitrate equal to the best heretofore known in the world; adding at the 
 same time that no nation shall be able to produce it more economically, not excepting 
 even North America and Russia, which are the principal markets for potash. 
 *• It remains yet for me to say, in reply to Senor Rivera (if the report is his, for I rather 
 think it comes from one of his amanuenses), that aa regards the assertion that potash 
 is extracted from marine substances, it is a gross error, as only soda can be extracted 
 from said materials. As regards the impossibility, contrary to my assertion, of com- 
 pletely separating the soda and the nitrate of soda from the nitrate of potash, this is a 
 grosser error yet ; for these substances being, as he says, liquescent, the rest of them 
 can be easily separated by the simple process of crystallization ; since the nitrate of 
 potash is less soluble and the others can only subsist on the surface. This method was 
 adopted in France to refine it more than sixty years ago. 
 
 The report affirmed, moreover, that said liquescent salts are inseparable from the 
 nitrate of potash, and that therefore the gunpowder manufactured with it must be 
 used the same day, by reason of its affinity with atmospheric humidity, which renders 
 it unfit for later use. But if I present the nitrate manufactured by my method with 
 materials different from those he mentions, and as pure as the most transparent crys- 
 tal or the finest gold and silver, and consequently free of the liquescent salts he named, 
 or any other extraneous matter, it is evident that besides destroying his assertion 
 with an incontestable fact, it can be clearly inferred from its own report that my dis- 
 covery was not known in Europe, and that my saltpeter, already in this state, must 
 equal in quality the best produced by any other method. I can therefore assure that 
 the gunpowder made with it shall be of unsurpassable quality, and with this convic- 
 tion I have offered in my memorial to send myself (suggesting that the government 
 should do the same) to the Institute of London and of Paris a quantity of my nitrate 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 671 
 
 for the purpose of having their learned members judge of its merits, and decide this 
 matter. The same action can alao be taken with the same purpose in the Exhibition 
 of Prizes. 
 
 The same reports assert, finally, that besides the fact that the nitrate of potash ob- 
 tained by the transmutation is of inferior quality, it should be called artificial. Alas ! 
 most excellent sir, I call your excellencie's attention to the point, in order that yon 
 may see and be convinced that such a report has been got up with evident intention 
 of defeating my discovery, making my nitrate appear, according to the vulgar saying, 
 as " bewitchment " (hechizo), in order to east upon it suspicion and contempt. 
 
 It is plain that in expressing himself in this manner, the author of the document 
 has committed a gross and unpardonable error as a chemist, or else he has been 
 prompted by the malign purpose of doing an inj ury. This is the more scandalous that no- 
 body, however short-sighted, will dare to deny that the nitrate of soda of Tarapaca 
 is a natural nitrate, and if this is natural, mine must necessarily be also the same. 
 
 The nitrification of that one is the work of nature, and the operation of utilizing it 
 being reduced only to the changing of its base, it is inconceivable that a chemist may 
 ignore this fact or pretend to rest on it to qualify said nitrate as an artificial product. 
 Well, then, if the author of said note gives the name of artificial to the nitrate ob- 
 tained by transmutation , why does he not give the same name to the European nitrate, 
 which, according to its origin, might with great reason be called thus 1 The greater 
 portion of the nitrate there manufactured is really artificial, if we except that ob- 
 tained by .the demolition of houses ; for there is not a European nation that has not 
 her artificial saltpeter works. The person to whom the report is attributed must be 
 aware of this fact, if not from ocular observations, at least from his perusal of chemi- 
 cal works ; all of these refer to said saltpeter works, and mention the fact that the only 
 natural nitrate of potash known is a product of India or the coasts of Peru. 
 
 My moderation and my respect for the government prompt me to abstain from re- 
 futing the rest of the report ; it is sufficient to say that the extravagant statements it 
 contains, convince me more and more that its author is not the person to whom it is 
 attributed. I know Sefior Rivera, and, if I am not mistaken, I think I know the ex- 
 tent of his knowledge on the matter enough not to insult him with the belief that he 
 is the author of such production. Now, most excellent sir, that the field has been 
 somewhat cleared of difficulties, in case your excellence judge it convenient to com- 
 mence to take some action on this interesting case, and tear once for all the thick 
 veil with which an evil genius has covered my discovery, I send to your excellence, 
 according to my proposal of contract, two boxes of the nitrate of potash, whose utili- 
 zation I promise to show, said nitrate having been manufactured by me out of the ni- 
 trate of soda of Tarapaca. Your excellence will please keep one of those boxes and 
 have the other delivered to me, sealed with the seals of the state and those of the con- 
 sulate of my nation. Your excellence will please have the box you may select exam- 
 ined by professional persons, and submitted to all the tests you may think proper. 
 If, after the most rigorous examinations, your excellence is satisfied, I will be ready 
 to enter into the contract, and will proceed to teach my method. If there should un- 
 expectedly arise any doubts as to the sameness between the nitrate of potash I shall have 
 taught to produce and that of the sample, the sealed box shall be opened and the com- 
 petent persons that may be appointed shall publicly, and in my presence, make a com- 
 parative examination. If, after this, some doubt should be yet entertained as to the 
 identity of the two articles, both shall be sent, as suggested before, to the Academy 
 of London and of Paris for the purpose referred to. 
 
 If all these proofs, to which I submit spontaneously, should not be sufficient to con- 
 vince and make evident my discovery and my good faith, it will be stipulated then 
 that the nitrate produced by my method shall be compared with the best produced in 
 Europe, Asia, Africa, America, and Australia, because, as I have said, chemistry only 
 recognizes one nitrate of potash, and this science has rules to determine, by means of 
 essays, its purity and its value, a point which the mentioned academicians shall 
 decide. 
 
 It is really incomprehensible that proposals, such as mine, from which the govern- 
 ment, far from risking anything, shall derive millions on millions for centuries to 
 come, have not been accepted for such a long time. This leads the most incredulous 
 to admit that this affair has been hostilized by men who have a ready command of the 
 magic arts, or rather of recreative physics, which indeed ceases to be recreative from 
 the moment it is used for their profit and to the prejudice of society. To your excellence 
 belongs now the duty of investigating who are the authors of the opposition I have 
 encountered for the.last ten years and of the machinations skillfully employed to de- 
 feat my proposals and to thwart the desire the government itself, and even the na- 
 tional representation, had at different times of accepting them. This in order that 
 your excellence may be on your guard against their plots and intrigues, and that the 
 nation may not be defrauded this time of the wealth I offer her. 
 
 Lastly, most excellent sir, my object in soliciting that this case may be, as soon as 
 possible, taken into consideration by the chambers, is to tallke advange of all the time 
 
672 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 of the extraordinary and ordinary congress in order to present other discoveries of 
 equal magnitude and of no less importance to the goverment and to the nation ; 
 therefore, 
 
 To your excellence I pray that he be pleased to give his attentive consideration 
 to this petition, requesting that it be filed with my previous application, and upon 
 which your excellence will resolve what he may deem proper. 
 
 ALEJANDRO COCHET. 
 
 Lima, May -28, 1351. 
 
 [Private. Return to Jacob R. Shipherd, 10 Spruce street, Xew York.] 
 [THE PERimAN COMPANY. 
 
 , CHAIN OF TITLE. 
 
 The sole heir of Cochet — who died instestate — was a natural son of Gelacio (who in- 
 herits under Peruvian law), and of him the present owners of this claim made direct 
 purchase; the assignment to the Peruvian Company will be made by these purchas- 
 ers, and the entire chain of title will include but two links. Detailed and original 
 proofs of all the facts material to the validity, value, and title of the claim are ready 
 for examination at the proper time by such counsel as subscribers to the stock may 
 designate, and no room for doubt as to any question of fact will be left. 
 
 The formal parts of the conveyance by the heir are next given: 
 
 The undersigned, Don , a native of the United States of North America, 
 
 on the one part, and Don Gelacio Cochet, native of Peru, on the other, both of them 
 residing in this city, have made an agreement, which is hereafter expressed. 
 
 " 1st. That having understood that Seiior Gelacio Cochet could prove his title to be 
 declared judicially the natural eon of the deceased Don Alexandro Cochet, and as such 
 to be acknowledged by the tribunals of Peru as having right to the premiums which 
 may have been awarded or may in future be awarded in" favor of the said deceased 
 and of his legal heirs ; that these premiums result from the important discoveries made 
 by the said Mr. Gochet's father relative to the use and application of the guano as 
 manure for agriculture iu foreign countries. 
 
 " 2d. That seeing Mr, ready to practice all the needed measures to 
 
 prove these rights, which will cause great outlays of money, as also an indefinite length 
 of time before the matter is cleared, both parties,' led by a mutual interest, have agreed, 
 the one to sell, the other to buy the said rights yet inconclnsive, and to be disclosed 
 with the object of forming the demand which will have to be made to the supreme 
 Government of Peru for the value of the premiums on the before-mentioned discoveries 
 of the use and application of guano. 
 
 " Therefore, Don (relacio Cochet, in consideration of the sum which will be mentioned 
 
 further, sells and makes over unto Don , in perpetuity the title and rights 
 
 which he may acquire as the legal heir of Don Alexandro Cochet to the premiums which 
 the Government of Peru may assign to the said Cochet in conformity with article the 
 first of this agreement, Gelacio Cochet binding himself to prove by means of the cor- 
 responding judiciary inscriptive of affiliation to be the true natural son of Mr. Alex- 
 andro Cochet, discoverer of the properties and applications of the guano, which is not 
 
 a hindrance to the ends of the present agreement for Mr. , to recognize 
 
 him as such, in order to proceed to establish the claim which will give him a legal 
 
 character. Moreover, Mr. Cochet binds himself to confer on Mr. , if 
 
 necessary, a power of attorney in full legal form, so he can make his claims and de- 
 mand of the case before the corresponding authorities, and also not to give a power to 
 any other person in representative declaring the right of succession to the will of Mr. 
 Alexandro Cochet, free of all compromise, donation, mortgage, or any other charge 
 whatever on its part. 
 
 "Don on his part binds himself to pay all the expenses, and perform 
 
 all the demands which may give for result the declaratory of Don Gelacio Cochet as 
 natural acknowledged son of the deceased Don Alexandro, and to establish all the 
 necessary reclamations to obtain the payment of the premiums that the supreme gov- 
 ernment may have assigned, or hereafter may assign, to the heirs of Don Alexandro 
 Cochet, as discoverer of the uses and application of the Peruvian guano ; and, more- 
 over, he binds himself to give the said Cochet, in payment of the purchase he now 
 
 makes of the inconclusive rights, the sum of , in current coin, be what it may 
 
 the amount of premium which he might be indemnified with by the Peruvian Govern- 
 ment, said sum to be delivered to Cochet at the same moment that he may receive it 
 from the said government, whether it be by means of a compromise, a transaction with 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 673 
 
 it, or by means of a diplomatic reclamation established to the purpose. And if the 
 
 sum exceeds soles Mr. binds himself to increase the amount to 
 
 ■ — soles more, above the said , all expenses and charges having to be made 
 
 until the payment is obtained of the said premiums inherited to be on his Mr. 
 
 —^ 's account. 
 
 " It is distinctly declared that for reason of Cochet's legal right to be considered the 
 heir of Don Alexandra Cochet not being perfected it has been agreed in good faith to 
 make this sale and purchase in a provisional manner ; meanwhile the steps are taken 
 to install him in the said character. Both parties binding themselves to respect the 
 present as valid and in force, the same as if it had been by a notary public. Binding 
 themselves both to carry the same to a national document as soon as Cochet is admitted 
 to the rights of a natural and recognized son of Don Alexandro Cochet, and they sign 
 the same before the witnesses undersigned, at Lima, on the thirteenth day of July, 
 eighteen hundred and seventy-nine. 
 
 "GELACIO COCHET. 
 "Witnesses: 
 
 "Juan Williamson. 
 
 " J. THEOPHILE Landreau." 
 
 Natarial power of Attorney. — Don Gelacio Cochet to Don . 
 
 " At Lima, on the seventh of August, one thousand eight hundred and seventy-nine 
 (1879). 
 
 " Before me the notary and witnesses, appeared Don Gelacio Cochet, a native and 
 a neighbor of this city, of full age, a painter, and intelligent in the Spanish language, 
 whom I know and warrant, and said : 
 
 " That he confers to Don a power of attorney referrent to the minutes 
 
 hereafter expressed. 
 
 " Mr. Notary Public : Please order that in your register of public grants, a genera 
 aud full power which I, Gelacio Cochet, a native and a neighbor of this capital, of 
 state single, by profession a painter, and of full age, in full mind and capacity do 
 
 grant. I bequath in favor of Senor Don , actually residing in this city 
 
 and a native of the United States, married and a merchant by profession, so that he, in 
 my name and representative of my person in its rights and actions, take charge and de- 
 mand on my account and excute the claims that I have to make on the supreme Gov- 
 ernment of Peru for the value of the premiums awarded to my father, Don Alexandro 
 Cochet for the discovery and revelations made by him relative to the properties, value, 
 utility, and employment of the guano in the agriculture of the European countries, 
 revelations made prior to the negotiations verified by the supreme government in said 
 article, and which service was duly acknowledged by Congress, but not indemnified 
 at the time, and which now belong to me as the only son and legal heir. Tlwrefore, I 
 confer unto Senor , the most ample power to the effect and with the char- 
 acter of exclusive and irrevocable, so that he may establish all convenient claims on 
 the supreme Government of Peru and before all courts of justice which he may con- 
 sider convenient. 
 
 "To demand, establish, and termiuate suits, to hear and answer all expositions, re- 
 ceive, information, demand testimonials, as much of witnesses as of documentary evi- 
 dence, whether in foreign lands or within the republic. 
 
 " To propose and admit transactions, arrangements, and compromises, and in all to 
 act with the ample powers which by this general power I confer unto him, moreover, 
 that of substituting the same in part or in the whole, on the person or persons whom he 
 may think convenient, having to himself all necessary amplitude so that he, ' whether 
 it be for want of any condition, exception, or else,' be not wanting in validity, withres- 
 evation of costs in due form. Please insert and aggregate the clauses in style needed, 
 to insure its validity. 
 
 " Lima, seventh of August, one thousand eight hundred and seventy-nine (1879). 
 
 GELACIO COCHET. 
 
 "Under the bases contained iD the foregoing minutes, number nine hundred and 
 seventy-eight (978), this power of attorney stands conferred according to the same. 
 And I, the notary public, do assure and certify that I have complied with the articles, 
 seven hundred and thirty -five (735) and following of the judicial code, aud the be- 
 queather well instructed of its contents, he ratifies the same and signs together with 
 the witnesses. 
 
 "Don Manuel Haya, Don Marcelo Vallessos y Don Francisco de Meontestrugue, of 
 this city ; Gelacio Cochet, Manuel Ma Haya, Marcelo Valleso, Francisco de Montes- 
 trugue. Before me, 
 
 " FELIX SOTOMAYOK, 
 
 Notary Puolio. 
 S. Ex. 79 43 
 
674 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 " Presented before me and is registered at folio six hundred and fifty (650) and fol- 
 lowing of my register. To which I certify and sign this testimony, after it having 
 been corrected according to law, the day of its being granted." 
 
 Power of Attorney No. 1482. — Mr. Gelacio Coeliet—Mr. . 
 
 " At Lima, on the 19th of August, eighteen hnndred and seventy-nine, before me the 
 notary and witnesses, appeared Mr. Gelacio Cochet, a native and neighbor of this capi- 
 tal, of full age, well instructed in the Spanish language, and whom I declare I know, 
 who says : That under guarantee of Messrs. Mariano de los Rios, Jose" A. Garcia y Ma- 
 riano Solas of he being a son of A. Cochet, who also know him personally, he confers 
 
 on Don , the ' power of attorney ' referred to in the minutes, which, with 
 
 the certificate of his birth, is as follows : 
 
 " ' Partida. The undersigned curate, rector, of the parochial of the sagrario of the 
 cathedral, * * . * certifies that in my bound common paper book, entries of bap- 
 tisms in which are made, which begins in eighteen hundred and forty -one (1841), and 
 ends in eighteen hundred and forty-eight (1848), at page 190, there is an entry which 
 says as follows : 
 
 "'PARTIDA. 
 
 '"In the city of Lima, capital of the Republic of Peru, on the thirtieth of May, eight- 
 een hundred and forty-five (1845), the Presbitero Don Gregoria Balenzo, a lieutenant 
 of the curate, rectors of the sagrario of the cathedral, solemnly baptized and put Oleo 
 and Crisma to Gelacio of one year old, natural son of Alexandra Cochet ; Don Mariano 
 Camacho being his godfather. 
 
 " ' DON JOSfi PALOMINO. 
 " ' Witnesses : 
 
 "'Andres Leon. 
 "'Baltazar Lugones. 
 
 " ' To which I certify. 
 
 '"JUAN de DROS CARDENAS."' 
 
 [A rubricated sign.] 
 
 " It is in conformity with the matriz, to which the undersigned refers if necessary, 
 and delivers the present at the verbal request of the party. 
 
 "At Lima, fifth of August, eighteen hundred and seventy-nine (1879). 
 
 "Doctor Andres Tovar, Senior Secretario Sirvare : 
 
 " Mr. Secretary : Please to enter in your register of public documents a special 
 power of attorney which I, Gelacio Cochet, of this neighborhood, son of the French 
 
 citizen, Mr. Alexandra Cochet, confer in favor of Sefior Don , a native and 
 
 citizen of the United States of North America, so that in my name and in representa- 
 tion of my person, actions, and rights, may exact from the public authorities of France, 
 and especially of the notaries public of Paris, the titles which contain the last desire 
 and will of my said deceased father, Don Alexandra Cochet, according to information 
 which I have* received, and with the rights corresponding to me in virtue of the ' cer- 
 tificate of baptism ' which I adjoin and which you will please to insert in the body of 
 the present power of attorney, as more binding proof on granting the same. I wish, 
 moreover, that it may have all necessary amplitude, so that my representative empow- 
 ered can present himself before the French tribunals, and, if necessary, to make ar- 
 rangements, settle accounts with debtors and creditors and others interested and con- 
 nected with the testamentary dispositions of my said deceased father, Don Alexandra 
 Cochet, and so that for want of conditions or expressions may not have the legal force, 
 with, moreover, the power of substituting the person or persons he may judge conven- 
 ient, with relevation of costs in due form. You will please add the clauses of atyle 
 which insure its validity. 
 
 "Lima, eighteenth of August, eighteen hundred and seventy-nine. 
 
 "GELACIO COCHET." 
 
 " Under the bases contained in the preceding minutes, number nine hundred and 
 ninety-two (992), this power of attorney is conferred with relevation of charges. And 
 I, the notary public, certify that I have complied with articles 735 and following of 
 the judiciary civil code, and that the grantor on granting the same is well posted in 
 its contents, and ratifies and signs the same with the witnesses, Don Mariano de los 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 675 
 
 Rios, Don Job6 A. Garcia y Don Mariano de Solas, of this neighborhood, whom I also 
 know, Gelacio Coohet, Mariano de los Rios, Jose" A. Garcia, y Mariano de Solas. 
 "/Before me, 
 
 " FELIX SOTOMAYOR, 
 
 " Notary Public. 
 
 " In conformity with the original done before me, which is on the six hundred and 
 sixty -eighth (668) page of my register, to which I refer. 
 
 " I certify and sign this testimony after having been corrected according to law. 
 Date of power. 
 
 " We, the public notaries who sign, certify that the said companion notary who 
 signs, Don Felix Sotomayor, is in full exercise of his functions, and in order that it 
 may have all its effects, we sign the present. 
 
 " FELIX VIVANEO. 
 
 " Legalized in the Department of the Prefecture, at Lima, 27th August, 1879." 
 
 (French legalization.) 
 
 Pursuant to this last power of attorney a deputy was sent to Paris to verify the 
 death, intestacy, and solvency of Alexandre Cochet, which he thoroughly did ; pay- 
 ing in full the only indebtednes remaining — a sum of something less than 500 francs — 
 and ascertaining from the surviving companions of Cochet's last years many facts 
 corroborative of all that was otherwise already known material to his discoveries and 
 to the sole heirship of his son, Gelacio. 
 
 [Private draft memorandnm. Return to Jacob E. Shipherd, 10 Spruce street, New York.]' 
 THE PERUVIAN COMPANY. 
 
 SUGGESTIONS OP POINTS TO BE INCLUDED IN AN AGREEMENT BETWEEN THE GOV- 
 ERNMENT OF PERU AND THE PERUVIAN COMPANY. 
 
 I.— The government to stipulate : 
 
 First. That in 1840 Alexandre Cochet discovered guano within the meaning of the 
 decree of February 13, 1833. 
 
 Second. That the Congressional and Executive acts and declarations of 1847, 1849, 
 and 1851 mean this. 
 
 Third. That this meaning has never been denied or questioned by the government 
 heretofore, and shall not be denied or questioned hereafter. 
 
 Fourth. That Cochet's discovery immediately vested in him a complete title to one- 
 third of all the guano in original deposits in Peru, and that sueh title was a title to 
 one-third of each separate deposit. 
 
 Fifth. That the removal of Cochet's one-third of each deposit by the government, 
 or by its agents, was a tortious conversion, for which Peru, as a responsible agent, is 
 bound to make amends to the owner. 
 
 Sixth. That the measure of damages in the premises cannot be less than the value 
 of the converted property at the time of its conversion with interest at six per cent. 
 
 Seventh. That the agreed total of these damages, including interest to January 1, 
 1881, is $900,000,000. 
 
 Eighth. That this total shall be capitalized as of that day, and shall bear interest at 
 six per cent, until paid. 
 
 Ninth. That payments hereafter made shall be applied first to meet accrued interest, 
 and afterward to reduce the principal. 
 
 Tenth. That under the law of contracts of 1845 this indebtedness to Cochet is en- 
 titled to prirority over any debt contracted by the government after the passage of 
 that law. Also that all contract obligations created against the government after that 
 date, which might antagonize this priority, must be subordinated to it. 
 
 Eleventh. That no payment on account of the indebtedness of the government to 
 Cochet has ever been made, although a grant of 5,000 tons guano in his favor on ac- 
 count of his expenses was once authorized. 
 
 And that there is, therefore, now due to Cochet and his legal representatives — 
 
 1. The sum of $900,000,000 liquidated damages with interest at six per cent, from 
 January 1,1881, until paid. 
 
 2. One-third of all the guano remaining in Peru in original deposits at the date 
 hereof. 
 
676 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 3. The value of one-third of all the gnano taken from original deposits in Peru be- 
 tween January 1, 1881, and the date hereof, with interest at six per cent, until paid. 
 
 Twelfth. That all the rights of Alexandre Cochet in the premises have been duly 
 transferred to, and are now vested in the Peruvian Company, party herein. 
 
 Thirteenth. The government, therefore hereby recognizes, and formally acknowl- 
 edges, its direct indebtedness in the premises to the Peruvian Company — 
 
 1. In the sum of $900,000,000 with interest at six per cent, from January 1, 1881, 
 until paid ; and this sum is admitted to be due and payable in full before auy indebt- 
 edness created prior to the passage of the law of contracts of 1845. 
 
 2. In the value of one-third of all guano taken from original deposits in Pern, since 
 the first day of January, 1881, with interest at six per cent, until paid. 
 
 Fourteenth. The government also acknowledges the Peruvian Company to be the 
 owner absolute, with title complete in Cochet and bis legal representatives since 1840, 
 of one-third of all the gnano remaining in the original deposits in Peru, with a per- 
 petual easement of approach and right of access thereto, over all lands and waters 
 since 1840 at any time within the territory of Peru, and the free and unhindered right 
 to hold, use, sell, assign, and take the same and every part thereof, away at the com- 
 pany's discretion without let, hindrance, impost, taxation, charge, or condition of any 
 kind. 
 
 Fifteenth. And, whereas, the governmeut is now unable to pay or discharge this 
 large indebtedness or any considerable portion thereof, and by the misfortunes of war 
 is otherwise disabled for the time being, the government cannot now refuse its chief 
 creditor any access to the resources of the country, out of which payment might be 
 made under a just administration directed by the creditor. 
 
 Sixteenth. Yielding to the just demands of all interests concerned in the premises, 
 and in the hope that the remaining deposits of guano and nitrate may suffice for the 
 discharge of all its indebtedness under proper administration, the government hereby 
 acquiesces in the proposal of its chief creditor, made in its own behalf and in the in- 
 terest and behalf of all creditors of the government whose express agent it may in 
 due course hereafter become, to take immediate possession of all original deposits of 
 guano and nitrate which were within the territory of Peru January 1, 1881, and to 
 take such possession of all adjacent lands and waters as may be necessary or conven- 
 ient to the mining and removal of such deposits, such possession of the deposits and 
 use of adjoining lands and waters for the purposes of this agreement and the proper 
 administration of the trust occupation hereby consented to, during the term of such 
 occupation hereby limited, to be that of the lord of the soil ; and the integrity of such 
 possession the government hereby guarantees; the term of occupation to expire upon 
 the full payment pf the indebtedness herein recognized as already due, or which may 
 hereafter become due to the Peruvian Company or to any other creditor whose agent 
 or assign the company may hereafter become. The term of one year after such full 
 payment to be allowed the company for the liquidation of its affairs and the with- 
 drawal of its agents from the republic. 
 
 Seventeenth. In case the deposits of guano and nitrate shall be exhausted, or shall 
 prove insufficient to pay the interest upon the capitalized indebtedness herein rec- 
 ognized, the company shall be at liberty to propose such other measures, amendatory 
 of those herein agreed upon, as it may deem just in the premises. 
 
 Eighteenth. The government guarantees the personal liberty and safety of all offi- 
 cers, agents, servants, guards, and guests of the company within the republic, and 
 recognizes in their favor an unqualified right of entry, residence, and departure at 
 pleasure, subject always to the condition of persona) good behavior, and the non-abuse 
 of the national hospitality. Offenses against public order may upon demand of the 
 company be adjudged and punished by an agreed tribunal, or in default of such agree- 
 ment by the company itself. 
 
 Nineteenth. The government will never impose any taxation, direct or indirect, upon 
 the company, nor upon its property or business, nor upon any of its officers, agents, 
 guards, servants, or guests, their property or business; but it may require the com- 
 pany as to any individuals so exempted either to consent to such taxation as might 
 otherwise be imposed under general laws, or else to credit to the government the 
 amount thereof in account current as of the date when it would be due under the law. 
 Such requirement must be duly notified to the company year by year, to be effective, 
 and must include full specifications of the taxes required to be consented to or cred- 
 ited for the year then current. 
 
 Twentieth. The company may at its discretion maintain at all times such a force as 
 it may deem necessary for the protection of its property and interests, and this force 
 may include detachments from the land and naval forces of the United States of Amer- 
 ica and of any other government whose citizens are share-holders of the company, or 
 are recognized creditors of Peru. 
 
 Twenty-first. The government consents to the transfer to the company by sale or 
 other assignment of any indebtedness now existing or hereafter arising against the 
 governmeut, which has been duly recognized by the government as a valid claim, and 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 677 
 
 to the consolidation for the purposes of collection of any claim so transferred with 
 the prinoipal indebtedness herein recognized. Before the transfer of claims which 
 have not been recognized the government reserves the right to demand their contest 
 before and adjudication by arbitrators, or such other tribunal as may be agreed upon. 
 
 Twenty-second. The government necessarily consents to the deduction from the gross 
 revenues arising from the working of the resources hereby placed at the command of 
 its creditors, of all expenses of operation, administration, and defense, and demands 
 that the net remainder of such revenues shall be passed to its credit by the company 
 annually in account. 
 
 Twenty-third. The government engages to execute at any time hereafter upon re- 
 quest any further memoranda of recognition and definition necessary or convenient to 
 the effectual fulfillment of this agreement according to its true intent. 
 
 II. The company to stipulate — 
 
 First. To make no demand for payment so long as this agreement shall be observed 
 in good faith by the government and people of Peru, and the net revenue realized by 
 the company under this agreement shall suffice to pay the interest annually accruing 
 upon the entire indebtedness held by the company. 
 
 Second. To offer to all other just creditors of the government the company's certi- 
 ficates of indebtedness, bearing interest at not less than three per cent, for the par 
 value, including accrued interest, of all recognized claims against the government 
 existing on the day of the date hereof, and to provide for the annual retirement of 
 such certificates by a sinking fund created by the reservation to its credit of not less 
 than one-half of the entire annual net revenue of the company in excess of thirty 
 millions of dollars. 
 
 Third. To deliver annually to the government a certified transcript of the results of 
 the entire business of the company, clearly itemized, and showing in detail the state 
 of the account current between the company and the government. 
 
 Fourth. To maintain toward the government and toward the people of Peru an atti- 
 tude of sincere friendship and good-will, and to use all means to render its temporary 
 residence within the republic not only inoffensive but useful. 
 
 Fifth. To enforce upon all its agents, servants, and representatives due respect to 
 the government and institutions of the republic, and unhesitating obedience to its just 
 laws. 
 
 Sixth. To maintain, and to, enforce, upon all its representatives a strict neutrality 
 toward all political parties and interests, domestic and foreign, except only as the 
 protection of the property interests of the company may otherwise require ; and 
 whenever such interests may demand the expression of a preference, such expression 
 shall be made in the company's name, upon competent authorization, frankly and 
 kindly. 
 
 Seventh. To co-operate heartily with the government and the people in all measures 
 calculated to promote the early restoration of the prosperities of peace and order, and 
 to forward the commercial and industrial development of the republic. 
 
 Eighth. To consolidate with the principal indebtedness herein recognized only such 
 claims against Peru as have been duly certified or recognized by Congress or by execu- 
 tive officers of the government. 
 
 Ninth. To unite with the government in the measures necessary to an adjudication 
 by arbitrators or by an agreed tribunal of all claims not so recognized in which the 
 company may become interested. 
 
 MUTUAL COVENANTS. 
 
 . First. That no tribunal shall ever have jurisdiction of this agreement or of any issue 
 arising between the parties hereto, except by the prior express consent of both the 
 parties. 
 
 Second. That each party shall maintain a resident representative near the executive 
 of the other, duly accredited to such executive, and that the ordinary intercourse of 
 the parties shall be maintained through these representatives according to diplomatic 
 usage. 
 
 [Private draft memorandum. Return to Jacob R. Shipherd. 10 Spruce street, New York.] 
 THE PERUVIAN COMPANY. 
 
 PERUVIAN SINKING FUND SCRIP. 
 
 First. All recognized creditors to be invited to surrender their claims to the company 
 (by assignment), and to receive in exchange the company's sinking fund scrip for the 
 par face of the claim, including accrued interest to the date of exchange ; this scrip 
 to bear interest at four per cent, until paid.- 
 
678 AFFAIRS IN CHILL, PERU, AND BOLIVIA. 
 
 Second. Scrip to be issued in even amounts of $1,000 and multiples thereof, also in 
 any desired fractional amounts, and to be transferable at the holder's election, either by- 
 delivery or by registration, and to be payable at the company's principal treasury, in 
 New York, July 1st, 1883, and annually thereafter. 
 
 Third. Chili to be recognized among the creditors of Peru, for such a reasonable 
 amount as may be agreed upon between her and the company, and to accept her allot- 
 tment of scrip in full of all demands against Peru. 
 
 Fourth. The company will prefer its share-holders to the extent of three per cent, 
 upon a fixed capitalization of $1,000,000,000 and will pay annually on the first day of 
 April — beginning with 1883 — one-half its net income above such three per cent, to the 
 credit of the commissioners of the sinking fund. 
 
 Fifth. On the 1st of April, 1883, and annually thereafter, the commissioners of the 
 sinking fund will notify the governments of the United States, Great Britain, France, 
 Germany, Italy, Chili, and Peru, and also the presidents of the leading stock exchanges 
 in each of these countries, and, by advertisement for not less than one month in at 
 least one leading paper in each of these countries, will notify whom it may concern, 
 and by circular through the post will notify separately every registered holder of 
 scrip, of the amount to their credit for the year applicable to the redemption of the 
 company's scrip, and of the time when, the place where, and the terms upon which 
 proposals for the sale of scrip will be received. 
 
 Sixth. Such proposals shall be addressed to the "commissioners of the sinking fund 
 of the Peruvian Company," at the company's principal office, in the city of New York , 
 and shall be accompanied with a guarantee draft on New York bankers for five per 
 cent, of the flat face amount of scrip offered by each bidder, payable to the order of 
 the commissioners, to be returned to the bidder immediately after the adjustment of 
 awards. 
 
 Seventh. Each bidder shall state the flat face amount of scrip he is prepared to de- 
 liver if his bid shall be accepted, and the fixed percent, of its gross face value, includ- 
 ing interest, he is content to receive in full payment therefor; no bids in excess of 
 100 per cent, to be considered or accepted at any time. 
 
 Eighth. The commissioners shall consider in each year only such bids as conform to 
 these specifications, and are received by them on or before the first day of July in that 
 year. On the second day of July, 1883, and annually thereafter — except when this 
 day shall fall upon a Sunday, and in such year upon the third day of July — at noon, 
 the commissioners shall meet in open session at the company's principal office, in New 
 York, and in the presence of any bidders who may choose to be present in person or 
 by duly accredited attorney, shall open, read, and tabulate the proposals received, and 
 immediately upon the conclusion of such tabulation shall award and declare in favor 
 of the lowest bidders a purchase of so much of the scrip offered as the fund at their 
 disposal will suffice to pay for ; and the details of such award shall be officially com- 
 municated within ten days thereafter to whom it may concern by circular through the 
 post and by advertisement. 
 
 Ninth. Payment for scrip awarded will be made by the company's treasurer only upon 
 the certificate of the commissioners. 
 
 Tenth. Guarantee checks of successful bidders will be forfeited unless the scrip 
 offered by them shall be presented for redemption within sixty days after the declara- 
 tion of award. Neither the company nor the commissioners will guarantee the deliv- 
 ery of the notice of award. 
 
 Eleventh. With each lot of scrip presented for redemption the bidder must tender 
 a proper release under seal — upon forms to be supplied by the company — setting forth 
 his acceptance of the amount awarded as payment in full. 
 
 Twelfth. Interest upon accepted scrip will cease upon the day of award. 
 
 Thirteenth. There shall be five commissioners of the sinking fund, who will be paid 
 by the company out of the sinking fund ; of these one at least shall be named by the 
 company, and of the others one may be nominated by the Government of Peru, one by 
 the Government of Chili, one by the Government of Great Britain, and one by the 
 Government of France ; such nominations to be made annually to the company, and 
 to be subject to its approval and appointment. 
 
 Fourteenth. These conditions to be printed upon aud to form part of the company's 
 agreement with the holder of each certificate of scrip. 
 
AFFAIES IN CHILI, PEEU, AND BOLIVIA- 679 
 
 No. 414. 
 Personal.] Mr. Walker Blaine to Mr. Shipherd. 
 
 Department of State, 
 Washington, July 28, 1881. 
 Dear Sir: I am just in receipt of your pleasant letter of the 27th 
 instant. With reference to the whereabouts of Mr. Suarez, I have ,to 
 inform you that the Department has learned that Mr. Suarez was at 
 Panama on the 13th of July, and that he intended sailing that day for 
 Peru, and it is supposed did so. 
 
 In regard to the other inquiries in your letter I cannot make answer 
 until after consultation with the Secretary. 
 
 I will communicate with you furtheri hereafter, and have meanwhile 
 the honor to be, sir, ', 
 
 Very respectfully, &c, 
 
 WALKER BLAINE. 
 Jacob E. Shipherd, Esq., . 
 
 New York City. 
 
 No. 415. 
 
 Mr. Shipherd to Mr. Blaine* 
 
 The Peruvian Company, 10 Spruce street, 
 
 New York, October 10, 1881. (Received October 11.) 
 Sir : I have the honor to inclose herewith — 
 
 1. A printed and sealed official copy of a note addressed to the Hon. 
 •J. F. Elmore, minister resident of Peru at Washington, bearing date 
 
 October 1, 1881, and subscribed by the undersigned. 
 
 2. A like copy of a note addressed to the Hon. Marcial Martinez, 
 envoy extraordinary and minister plenipotentiary of Chili at Washing- 
 ton, bearing date October 5, 1881, and siibscribed by the undersigned. 
 The originals hereof are to-day delivered, to the * * * counsel of 
 this company at Washington, for immediate transmittal to the respect- 
 ive addresses, and I have therefore the honor to ask that these copies 
 may be placed on tile in the Department, and that I may be duly advised 
 that they have been so placed. 
 
 I have, &c, 
 
 JACOB R. SHIPHERD, 
 
 President of the Peruvian Company. 
 
 [Inclosnre 1 in Mr. Shipherd's letter of October 10, 1881. J 
 
 (Official copy.) 
 
 Sir : I am charged with the duty of bringing to the official notice of your excellency 
 the fact that one-third of all the guano lying in original deposits within the territory 
 •of Peru on the first day of January, 1841, is now, and for some time past has been, the 
 property of the Peruvian Company, a corporation created by one of the United States, 
 and composed exclusively of American citizens, whose title has duly descended from 
 Alexander Cochet, duly adjudged to have been the first and true discoverer of guano in 
 -Peru, and in whom the fee absolute to such one-third was duly vested by the republic 
 ■by operation of law. 
 
680 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I am therefore further charged to demand, as I now do, in hehalf of this owner, due 
 recognition by the existing government of all the rights of the Peruvian Company in 
 the premises as such owner, and the formal release in its favor of all custody, control, 
 claim, and assertion adverse to the title herein asserted, so far as the government and 
 people of Peru are or may be concerned. 
 
 I am further charged to demand, as I now do, payment in full, with interest from 
 the date of removal, for so much of the property hereby demanded as may not be found 
 in the place of original deposit when the Government of Peru shall attest the release 
 herein above demanded. 
 
 And, in view of the temporary embarrassments of Peru, I am further charged to pro- 
 test, as I now do, against any and all negotiations and acts tending toward the cession, 
 sale, lease, hypothecation, or other incumbrance or disposition of any property held, 
 owned, or controlled by Pern pending the full satisfaction of the deman'ds herein made 
 and intended. • 
 
 A copy of this notice and demand will be delivered to the honorable the Secretary 
 of State, at Washington, and a duplicate is herewith inclosed for transmission at your 
 official discretion to His Excellency the President of Peru. 
 
 I shall be pleased to supply to His Excellency the President of Peru, upon due re- 
 quest, any further information appropriate to the premises, including all necessary 
 evidences of the title herein asserted, and to designate a commissioner duly authorized 
 to represent the owner in the immediate custody and control of the property hereby 
 demanded. 
 
 In conclusion, I beg yonr excellency to receive due assurance of the distinguished 
 consideration with which I have the honor to remain — 
 Your excellency's obedient servant, 
 
 JACOB R. SHIPHERD, 
 ■ President of the Peruvian Company. 
 
 Dated New York, October 1, 1881. 
 
 To His Excellency the Honorable J. F. Elmore, 
 
 Minister of Peru, resident at Washington, D. C. 
 
 [Incoslure a in Mr. Shipherd's letter of October 10, 1881.] 
 (Official copy.) 
 
 Sir : I have the honor to inclose herewith a copy of a communication heretofore ad- 
 dressed and delivered to his excellency the minister of Peru, resident at Washington. > 
 I add also another copy of the inclosure and a copy of this note to be forwarded, at " 
 your official discretion, to HisExcellency the President of Chili. A further copy of thiB 
 note will be delivered to the honorable the Secretary of State at Washington. 
 
 The immediate and sincerely friendly purpose of this note is to spare the Government 
 of Chili the serious embarrassment which would necessarily follow if the representa- 
 tives of Chili now in Peru should continue to deal, however inadvertently, with the 
 property of citizens of the United States, as if it were the property of Peru. 
 
 And hereupon I am authorized to assure your excellency in no doubtful terms of the 
 readiness of the Peruvian Company to recognize every fact involved in the actual 
 status resulting under the rules of war among civilized nations, from the campaign of 
 Chili now closing, reserving only those indestructible rights of neutrals which even 
 war must recognize and protect. 
 
 It is believed that so far from embarrassing or delaying the conclusion of .a peace 
 honorable alike to victor and vanquished, and just to all interests to be affected by the 
 adjustment eo much desired and as yet so vainly sought, the interests which I have 
 the honor to represent may be so circumstanced as to afford to all parties an imme- 
 diate and final solution of all urgent problems, and especially may afford the most 
 efficient and substantial guarantees of a long period of peace and prosperity in the 
 immediate future, that peace which tends only to industry and internal content, and 
 indisposes to intrigue and to war. 
 
 It may be proper to prevent possible indistinctness that I should specifically point 
 out some of the leading implications of this communication as to the past as well as to 
 the future, and with your excellency's indulgence, I therefore proceed to observe : 
 
 First. That this notice of title is unqualified, and may be understood to imply what- 
 ever may be implied by an unqualified notice and demand in like premises. 
 
 Second. That the Peruvian Company expects Chili to account to it for whatever 
 guano she has Removed or suffered to be removed from original deposits in Peru at any 
 time since January 1, 1841. 
 
 Third. That the Peruvian Company expects Chili, on and after the day of the de- 
 livery of this note and its inclosures to your excellency, to recognize and protect the 
 title herein asserted throughout the territory of Peru so long as the military forces of 
 Chili shall continue therein. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 681 
 
 Fourth. That for any failure or refusal hereafter to recognize and to protect the title 
 herein asserted, the Peruvian Company expects to hold Chili directly responsible j and 
 the company will, in such case, rely upon the protection of its own government. 
 
 Fifth. It should not be overlooked that so long as the military forces of Chili con- 
 tinue in Peru, the company must require of £hein directly, and must hold the Govern- 
 ment of Chili directly responsible for all the protection, relief, and assistance which 
 but for such occupation it might properly demand of the Government of Peru; and 
 express notice of such requirement is hereby given, together with like notice that for 
 any detention or appropriation of or injury to the property of Peru, the debtor of the 
 Peruvian Company, after the delivery to your excllency of this notice, and pending the 
 full satisfaction of the demands comprised in the memoranda herewith inclosed, the 
 company must and will hold the Government of Chili directly liable in full. 
 
 Of course, I am ready to supply to His Excellency the President of Chili, upen due 
 request, all further information appropriate to the premises, including all necessary 
 evidences of the title herein asserted, and to designate a commissioner duly authorized 
 to represent the owners in the immediate custody and control of the property hereby 
 demanded. 
 
 Not for a moment doubting the sin cere readiness of thegovernmentandpeopleof Chili 
 at all times to do justice, and fully confiding in the early and amicable adjustment of all 
 issues herein contemplated, I avail myself of this opportunity to assure your excel- 
 lency of the distinguished consideration with which I have the honor to remain 
 Your excellency's obedient servant, 
 
 JACOB R. SHIPHERD, 
 President of the Peruvian Company. 
 
 Dated New York, October 5, 1881. 
 
 To His Excellency the Honorable Marcial Martinez, , 
 
 Envoy Extraordinary and Minister Plenipotentiary of Chili, at Washington. 
 
 No. 416. 
 
 Mr. Blaine to Mr. Shipherd. 
 
 Department of State, 
 
 Washington, October 12, 1881. 
 Sir : I have to acknowledge the receipt of your letter of the 10th in- 
 stant, inclosing printed copies of two notes addressed by you, one to 
 the Hon. J. F. Elmore and the other to the Hon. Marcial Martinez, both 
 of which have been placed upon the files of the Department. 
 I am, sir, &c, 
 
 JAMES G. BLAINE. 
 
 Jacob R. Shipherd, 
 
 President of the Peruvian Company, 
 
 10 Spruce street, New YorJc. 
 
 No. 417. 
 
 Mr. Shipherd to Mr. Blaine. 
 
 [Peruvian Company, 10 Spruce street, Nejr York. Post-office box 3448.] 
 
 October 18, 1881. (Received October 20.) 
 Sir : I have the honor to inclose herewith legal proofs of the due serv- 
 ice upon the ministers of Peru and Chili respectively of the demands 
 whereof official copies were transmitted for file in the Department of 
 State with my note of the 10th instant. From these proofs it appears 
 that such service was made at Washington by one Ellery O. Bartlett 
 upon the 13th instant. 
 
682 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 I have the honor to request that these proofs may be placed on file 
 in the Department, and that I maybe duly advised that they have been 
 so placed. 
 
 I have the honor also to inclose herewith copies of these demands for 
 transmission to the American ministers at Lima and at Santiago, in case 
 it shall seem to the Secretary proper that such transmission with or 
 without accompanying instructions should be directed. 
 
 I avail myself of the opportunity to acknowledge with thanks the due 
 receipt of your advice, dated October 12, 1881, and remain, sir, with 
 great respect, your obedient servant, 
 
 JACOB E. SHIPHEED. 
 
 City of Washington, 
 
 District of Columbia, ss : 
 Ellery C. Bartlett, being duly sworn, deposes and says that on the 13th day of Oc- 
 tober, A. D. 1881, at the city of Washington aforesaid, he personally served npon his 
 Excellency *he Hon. Marcial Martinez, envoy extraordinary and minister plenipo- 
 tentiary of Chili, the original communication subscribed by Jacob R. Shipherd, presi- 
 dent of the Peruvian Company, of which an official copy* is herewith annexed^ to- 
 gether with the papers therein mentioned as accompanying the same, and that he made 
 s»ch service by delivery of all the said papers to the said Martinez at the residence of 
 the said Martinez, No. 1400 Massachusetts avenue, northwest in the said city of Wash- . 
 ington, and leaving the same with him ; and that he then and there knew the person 
 to whom he delivered the said papers to be the said Martinez, and further deponent 
 saith not. 
 
 ELLERY C. BARTLETT. 
 
 Sworn to and subscribed before me this 14th day of October, 1881. 
 
 [NOTABIAL SEAL.] • W. F. PEDDRICK, 
 
 Notary Public. 
 
 City of Washington, 
 
 District of Columbia, ss : 
 Ellery C Bartlett, being duly sworn, deposes, and says, that on the 13th day of Oc- 
 tober, 1881, at the city of Washington aforesaid, he personally served upon his Excel- 
 lency the Hon. J. F. Elmore, minister of Peru resident at Washington, the original 
 communication subscribed by Jacob R. Shipberd, president of the Peruvian Company, 
 of which an official copyt is herewith annexed, together with the papers therein men- 
 tioned as accompanying the same; and that he made such service by delivery of all 
 the said papers to the said Elmore, at the residence of the said Elmore, No. 613 Thir- 
 teenth street northwest, in the said city of Washington, and leaving the same with 
 him ; and that he then and there knew the person to whom the said papers were de- 
 livered, to be the said Elmore ; and further deponent saith not. 
 
 ELLERY C. BARTLETT. 
 
 Sworn to and subscribed before me this 14th day of October, 1881 . 
 
 r NOTARIAL SEAL.] W. F. PEDDRICK, 
 
 Notary Public. 
 
 2*0. 418. 
 
 Mr. BlainS to Mr. Shipherd. 
 
 Department of State, 
 
 Washington, October 22, 1881. 
 Sir : I have to acknowledge the receipt of your letter of the 18th in- 
 stant, and of the papers to which you allude as legal proofs of the due 
 
 * For inclosure, see inclosnre 1 in Mr. Shlpherd's letter of Ootober 10, 1881, Document No. 415. 
 tJTor inclosure, see inclosure No. 2, in Mr. Sbipherd's letter of October 10, 1881, Document No. 415. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 683 
 
 service upon the ministers of Peru and Chili, respectively, of the de- 
 mands whereof official copies were transmitted for file in the Depart- 
 ment of State, with your note of the 10th instant. 
 Your letter and inclosures have been filed as you request. 
 I am, sir, &c, 
 
 JAMBS G. BLAINE. 
 
 No. 419. 
 
 Mr. Sadden to Mr. Hunter. 
 
 The Peruvian Company, 
 10 Spruce street, New York, November 28, 1881. 
 (Received November 29.) 
 Sir : President Shipherd directs me to inclose you herewith a copy 
 of a note* forwarded to General Hurlbut by the last steamer; and to 
 say that he caused a set of the printed papers, promised you in a recent 
 conversation, to be forwarded to your address on the 23d instant ; which 
 he trusts have already safely reached you. 
 
 Very respectfully, • 
 
 A. HADDEN, 
 Private Secretary. 
 
 No. 420. 
 Mr. Blaine to Mr. Shipherd. 
 
 Department of State, 
 
 Washington, December 3, 1881. 
 Sir : General Stephen A. Hurlbut, our minister to Peru, acting with 
 perfect official propriety, returns to the State Department the letters 
 you have addressed to him in regard to claims against that government 
 in which you profess to have an interest. During the first interview 
 you had with me in August last, I advised you that it was not proper 
 for you to correspond with the American minister in regard to private 
 claims, and that the necessities and courtesies of the situation required 
 a minister to give attention only to such private interests as were sub- 
 mitted to his attention with the sanction and the responsibility of the De- 
 partment. You indicated your recognition of the fitness of this rule, 
 and your intention of complying with it; and you mentioned the names 
 of several distinguished lawyers, well-known to the country, who would 
 soon proceed to Peru as the representatives of your claims. I promptly 
 gave you the assurance that if any one of the eminent gentlemen named 
 by you should go to Lima on any professional business, he could rely on 
 the courteous attentions and kindly offices of the American minister in 
 his aid. Quoting confidently, as you did, the alleged opinion of my dis- 
 tinguished predecessor, Mr. Evarts, as to the validity and value of the 
 Cochet claim, which you represented, I told you that I would instruct 
 General Hurlbut to examine into its character and make report thereOn 
 to me, which duty he faithfully performed. Beyond this you had no 
 right to demand or expect any aid from the State Department, and 
 
 *For inclosure, being letter of Mr. Shipherd to Mr. Hurlbut, dated November 15, 1881; 
 see inclosure 4, in document No. 388. 
 
684 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 your holding a private correspondence with General Hurlbut was a 
 gross infraction of every rule of propriety. Nothing could more rapidly 
 tend to destroy the character and influence of an American mission in 
 any foreign country than to have it even suspected that it was enter- 
 taining and manipulating private claims against that country, aside 
 from instructions of his government. 
 
 " I have thus far spoken only of your violation of the rules of pro- 
 priety. I wish, for your sake, I could stop there. But in one of your 
 letters you deliberately make an improper and unlawful proposition to 
 General Hurlbut, offering, as you do, to place a large interest in your 
 claim, subject to his control, in effect offering him a bribe with scarcely 
 an attempt at disguise. For this offense, I deem it my duty to advise 
 you that you can no longer appear as an attorney in any case before 
 the State Department. I shall submit your correspondence to the 
 President with the view of determining whether further notice should 
 be taken of your offense by the Attorney-General. 
 
 The only palliation or excuse I can find in your correspondence, is 
 in its extravagant and extraordinary tone, from which it would appear 
 that you are actuary unable to take a sensible and rational view of the 
 claim in which you imagine that you possess so many hundreds of mil- 
 lions of dollars. As your correspondence, in almost every line, seems to 
 be that of a man laboring under a delusion, I am inclined to believe that 
 you may not have properly weighed, and therefore, are not morally re- 
 sponsible for the improper proposals you have made. 
 
 I am the more disposed to this view from your inexcusable folly in 
 writing lengthy letters to General Hurlbut, informing him of the views 
 of the State Department in regard to your claims. The business of the 
 State Department is to communicate its own views to United States 
 ministers abroad, and your assuming to give any assistance on the sub- 
 ject would have been a piece of presumption even had you written the 
 truth. But under some indefinable hallucination you communicated, as 
 the views of the Department, these extravagant and absurd stories, 
 which, as I have recently learned, you have been talking to every man 
 that would listen. 
 
 I find another evidence of your delusion in the list of names you give 
 as being already associated, or about to be associated, with you in the 
 prosecution of these claims. Your list embraces the names of some 
 forty or fifty of the most eminent capitalists of New York, and among 
 your alleged attorneys are some of the most distinguished of the Ameri- 
 can bar. I shall be surprised to find that any one of these gentlemen 
 ever authorized you to use his name any more than I authorized you to 
 present your claim to General Hurlbut. 
 
 I have written at this length in order that you might be made ac- 
 quainted with the reasons which may induce the government to refrain 
 from prosecuting you for an attempt to bribe a public official, as it 
 might otherwise consider it to be its duty. 
 I am, &c, 
 
 JAMES G. BLAINE. 
 
AEFAIRS IN CHILI, PERU, AND BOLIVIA. 685 
 
 IsTo. 421. 
 
 Mr. Shvpherd to Mr. Hunter. 
 
 New York, December 5, 1881. (Eeceived December 9.) 
 Sir : I inclose for your information a copy of a letter received by the 
 last steamer. The writer is the alter ego of President Oalderon, and a 
 letter by the preceding steamer explained — 
 
 1. That the claim and plans of the Peruvian Company had been for 
 several weeks under careful consideration by the Peruvian Executive. 
 
 2. That an examination of the archives had verified all the material 
 historical fac^s upon which our claim rests. 
 
 3. That General Hurlbut cordially favored our plan. 
 
 4. That the only question seemed to be whether the discoverer of a 
 value had as much equity as the discoverer of a heap. 
 
 5. That at the conference fixed for the 6th a final answer to our de- 
 mand was to have been decided on. 
 
 What that final answer was likely to have been, in the judgment of 
 
 Mr. — , seems to be intimated in the words I have underscored near 
 
 the close of his letter. As soon as we are definitely advised of the tenor 
 of the dispatches sent out on Saturday, we shall see our way clear to 
 another step. 
 
 I am, &c, 
 
 JACOB E. SHIPHEED. 
 
 [Inclosure in Mr. Shipherd's letter of December 5.] 
 Mr. * * * to Mr. SMpherd. 
 
 Lima, November 9, 1881. 
 
 Esteemed Sir : By the. last mail from Panama I received your letter which, by ad- 
 vice of your friends, you have addressed to me uuder date 5th of October last, develop- 
 ing the vast financial plan which the Peruvian Company proposes to realize. 
 
 I regret to state to you in reply that having placed myself in accord with his excel- 
 lency, the Provisional President of the Republic, for a conference which was to have 
 taken place at 12 o'clock noon of Sunday, the 6th instant, with the object of showing 
 to him as well your opinion as the documents and other papers which accompany it, 
 a new outrage upon Peru, doubtless the greatest of the Chilian domination among the 
 episodes of the state of war in these latter times, absolutely frustrated the conference 
 agreed upon. 
 
 The telegraph and later the correspondence which the mail will carry from this 
 country to the United States will inform you of the unheard of act carried out with 
 surprise and daring. 
 
 The Chilians having taken possession, in the morning of Sunday, the 6th instant, of 
 the person of the President of Peru, conveying him at once and in an express train to 
 Callao, and afterwards depositing the prisoner on board the iron-clad Lord Cochran, 
 which sailed twenty-four hours later, for unknown parts. 
 
 I omit all commentary upon the enormity of the abuse committed by the implacable 
 conqueror upon the chief of a government of order established by the nation precisely 
 for the purpose of celebrating and cementing peace with Chili upon just bases, and 
 who had just been recognized and proclaimed by the great territorial sections of the 
 north and south of the Republic, and by the armies garrisoning the same. 
 
 Chili does not consent to the oonsoliation of any serious and stable government in 
 Pern. She wishes to divide her and anarehize her more and more each day, in order to 
 carry out with impunity the public and private international robbery, which she has 
 undertaken, and which Christian and cultivated nations tolerate with impassibility, 
 without remembering that transgressions committed upon the laws of nations consti- 
 tute teachings and precedents to be cited as authority whenever the abuse of the 
 strong desire to oppress and disunite to-day one nation, to-morrow another, in contin- 
 ual rotation upon all weak people, or those who may arrive to be weak in any occa- 
 sion or circumstance. 
 
686 AFFAIES IN CHILI, PERU, AND BOLIVIA. 
 
 The fact is that the deed carried out has rendered impossible the conferences to 
 which I above alluded, and renders the action with which you have charged me in 
 your letter inopportune until public affairs are placed back again in the path which in my 
 opinion only the Government of the Amercan Union can enable us to reach by hasten- 
 ing events and thus vindicating their traditional policy. 
 
 .For this there is an opportunity offered by the continuation of the constitutional 
 regimen of the Vice-President elected by the National Congress in last August, Rear- 
 Admiral Don Lizardo Moutero. 
 
 The latter will assume the command the moment the news of this infamous outrage 
 shall reach him, and it is evident that by lending to him a strong hand on the part of 
 the Government of the United States we may arrive at the desired solution of all the 
 questions of the war and at the restoration of internal order. 
 
 Whatever you and your friends may do in this sense will be a benefit to Peru and 
 the victory of your oivn plans. 
 
 I trust that you will let me know opportunely what action in this direction may be 
 expected. 
 
 I have, &c, 
 
 ~Ho. 422. 
 Messrs. Mont/errand and Suarez to Mr. JSvarts. 
 
 Willaed's Hotel, 
 "Washington, January 17, 18S1. 
 Sir : We have the honor to inclose you our letters of credence from 
 the "Soci^te" Generale de Credit Indnstriel et Commercial," and, at the 
 same time, a letter of introduction from Ed. Xoetzlin, esq., one of the 
 directors of the Banque Franco Egyptienne. 
 
 Waiting your pleasure as to an interview, we take the occasion to 
 subscribe ourselves, with the most respectful consideration, your obedi- 
 ent servants, 
 
 CH. DE MOKTFEEBAND. 
 FEAMJ'O. de P. STJAEEZ. 
 
 Mr. Durrien to Mr. Evarls. 
 
 r Translation-] 
 
 [General Society of Industrial and Commercial Credit, 66 me de la Chaass&e d'Artin and 72 rue de 
 
 laVictoire.] 
 
 Paris, December 29, 1880. 
 Sir: We have the honor hereby to accredit to you the Count de Montferrand and Mr. 
 F. de P. Suarez, whom we have instructed to goto Washington for the purpose of com- 
 ing to an understanding with you in relation to the part to be taken by us in the finan- 
 cial or commercial arrangements which may be the consequence of the mediation of 
 the United States Government between Peru and Chili. 
 
 Be pleased to accept, Mr. Secretary of State, the assurance of our highest considera- 
 tion. 
 
 H. DURRIEN, President. 
 Mr. Evarxs, 
 
 Secretary of State for Foreign Affairs, Washington. 
 
 ISo. 423. 
 Count de Montferrand and Mr. Suarez to Mr. Evarts. 
 
 Washington, D. C, January 20, 1881. (Eeceived January 21.) 
 Sir : The undersigned, representatives appointed by the Societe 
 Generale de Credit Iudustriel et Commercial to the Government of the 
 
AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 687 
 
 United States to offer certain financial propositions in order to facilitate 
 the restoration of peace between the republics of Bolivia, Chili, and 
 Peru, and at the same time to protect the financial interests of the last- 
 named republic and of her creditors, most respectfully submit the fol- 
 lowing for your consideration : ■ . 
 
 That the United States should again tender her friendly mediation 
 to the above republics as she has done on two previous occasions, actu- 
 ated by the desire to protect her sister republics in South America, in 
 the cause of humanity, to prevent bloodshed, and to promote the com- 
 mercial interests of the southern continent. In doing so, we cannot 
 more aptly express our views, than to quote the words of one of the 
 representatives of your government at the late conference (Minister Os- 
 born), who stated at the opening of the conference: 
 
 That the Government of the United States feel a deep interest in the welfare of 
 the three belligerent nations ; and it could not be otherwise, since the United States 
 inaugurated in America the republican system, being, therefore, responsible for the exist- 
 ence of republican institutions. It was the first to reoognize the independence of these 
 republics, and it has watched with great solicitude from that day to the present 
 the effortB made by them to maintain themselves up to the level of the progress of 
 civilization, rejoicing with them at their advancement and their prosperity. We 
 know, to-day, republican institutions are put to a test before the whole world, and 
 the nations here represented have an equal interest with us in maintaining these in- 
 stitutions and. making them a success. The United States naturally deeply deplore 
 the existence of this fratricidal war, and wish a prompt termination of the same. 
 Such is the feeling which has inspired the attitude assumed by the Government of the 
 United States, and it entertains the sincere hope that before this conference will close 
 there will be secured an honorable and everlasting peace between your governments. 
 
 We beg to state what we understand to be the conditions existing be- 
 tween these countries in consequence of treaties heretofore existing be- 
 tween Chili and Bolivia as to the right of Chilians to carry on their 
 manufacturing pursuits within the Republic of Bolivia, and to be free 
 from internal taxes, fines, and imposts on the part of Bolivia. The Re- 
 public of Bolivia denied that her treaty obligations made any such ex- 
 emptions from such taxes. This was followed by an appeal of Bolivia 
 to Peru for protection under an existing treaty between the last two 
 named governments. Thus these three republics without calm deliber- 
 ation became entangled in what maybe termed a fratricidal war, which, 
 like all fratricidal wars, has gone beyond the limits of humanity and 
 civilization ; hence a strong appeal is made to your government for in- 
 terference. We find that women and children are outraged and mur- 
 dered, while the men are massacred even when they are prisoners. 
 Under these circumstances we make a positive appeal to you to inter- 
 fere, and to require a cessation of these hostilities, the more especially 
 as this can be done with self-respect to all the parties, and on such terms 
 as we believe we are able to submit for your consideration. 
 
 The European world has, in this particular instance, with surprising 
 unanimity, recognized the Monroe doctrine, and not only looks to the 
 United States to interfere, but has on every occasion, when the mat- 
 ter has been submitted for its consideration, urged that your govern- 
 ment should act; and it will always be a proud page in your gov- 
 ernment's history that it has on two previous occasions tendered the 
 olive branch. Again the appeal comes, and we beg that you will show 
 your wonted sympathv for the weak and protection to all, and to tender, 
 nay, more, to insist, so far as it is becoming, that the mediation of the 
 United States shall be accepted. 
 
 As above stated, we are here to offer, under your sanction and protec- 
 tion, that necessary financial aid which the conqueror and the conquered 
 will demand and require. These republics have undoubtedly crippled 
 
688 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 all their financial resources, and Chili to-day is compelled to look to the 
 territory of Peru, which she forcibly holds, to remunerate her for her 
 expenditures and losses. Within the last few months she has under- 
 taken to reimburse herself by a financial contract entered into with an 
 English company, entitled " The South Pacific Guano Company," lim- 
 ited, of London, by which contract the said company agrees to pay to Chili 
 a royalty of £1 and 10 shillings per ton for the gnano that it may obtain 
 from the territory of Peru forcibly held by Chili. The demand for 
 guano in the civilized world does not average four hundred thousand 
 tons per annum. Assuming, under this contract, that Chili would be able 
 to supply fifty per cent, of the market through the said company, her rev- 
 enue would amount to about £300,000 annually, while, on the other hand, 
 Peru, would to the same extent be deprived of this revenue. The terms 
 which we propose would almost double the amount that Chili would re- 
 ceive by holding the territory in question ; while, on the other hand, 
 Peru would receive an equal amount to meet her national expenses and 
 further to compensate' her for the extraordinary drain that has been 
 made upon her resources in consequence of the pending war. 
 
 The proposition which the Credit Industriel makes has been sub- 
 mitted to you by Mr. Eobert E. Eandall, together with the correspond- 
 ence which has passed between that gentleman and Mr. Guillaume, the 
 chairman of the Peruvian bondholders' committee, and' we request 
 that the same be attached hereto as a part of this communication. 
 
 The Credit Industriel, you will observe, agrees to pay Chili and Peru, 
 respectively, according to the proposition herein referred to, £550,000 
 per annum for a term of years to be agreed upon. This will justify a 
 loan sufficient to cover the war indemnity demanded by Chili of 
 £4,000,000 sterling, and leave to these respective countries, sufficient to 
 meet all legitimate national obligations. The Credit Industriel agrees 
 to obligate itself at the same time to arrange with the Peruvian bond- 
 holders the indebtedness held by them, amounting, principal and inter- 
 est, to upwards of £45,000,000 sterling, without they being compelled 
 to look to Peru, and in return, the Cr6dit Industriel simply requires 
 that Chili shall surrender the conquered territory of Peru to Peru, sub- 
 ject to a protectorate of the United States, guaranteeing to the Credit 
 Industriel the free and unobstructed shipment of the deposits of the 
 said territory, to wit, the guano and nitrates, for the same term of years. 
 The Credit Industriel will further agree to pay annually to the Ameri- 
 can Cable Company, between Panama and Lima, an annual appropri- 
 ation of £60,000 sterling. 
 
 The above is our object and our understanding of thefinancial interests 
 of the said republics, and the execution of the proposed scheme, pre- 
 sented as it is by the Credit Industriel, will afford a sure guarantee 
 for the maintenance of the peace, as it will create between these repub- 
 lics a common interest, by placing their great source of common wealth 
 under the management of an institution of high standing and repute 
 throughout the world. 
 
 We were advised by the Credit Industriel that she has used her best 
 efforts to ascertain the views of the governments of Europe as to the 
 present proposition, and we believe that we are not going beyond the 
 bounds of propriety when we state that the mediation of the United 
 States will be acceptable to and supported by the Governments of Hol- 
 land, Belgium, Italy, France, and Great Britain. With the exception 
 of Italy, the subjects of the above governments are, with the citizens 
 of the United States, to a limited extent, the holders of the entire Peru- 
 vian debt, and, therefore, are directly interested in the favorable ac- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 689 
 
 t 
 
 tion by your government on the proposition which we now have the 
 honor to submit to you. We ask that you will exercise that same in- 
 herent right claimed by this government since the time of President 
 Monroe-that, while the United States will not permit the interference 
 of 'any European power on the American continent, she would at the 
 same time exercise, if necessary, a protectorate over all governments 
 and countries on this continent. 
 
 The subjects of Holland, Belgium, and France represent over one- 
 half of the bondholders of Peru, and are the customers of two-thirds 
 of the guano and nitrate shipped to Europe, Prance using herself quite 
 fifty per cent. ; the balance of the bonds are held in Great Britain. The 
 retention of the guano and nitrate deposits of Peru by Chili would ren- 
 der those bonds valueless, since Chili has already given notice that she 
 is not responsible for the engagements of Peru, and that the same must 
 be the subject of consideration after the termination of the war. The 
 European governments could not then interfere, the subject-matter be- 
 ing a commercial transaction unsupported by treaty obligations. It is 
 clear that the above governments would rejoice and second, if necessary, 
 the intervention of the United States, and we are informed that Great 
 Britain has so advised your government. The terms of peace submitted 
 by the Chilian commissioners at the Arica conference demonstrated that 
 the intention of OhiU was a desire to destroy the political equilibrium 
 of the South American states and destructive to Republican institutions. 
 The retention by Chili by force of arms of the territory of Peru cannot 
 insure peace, nor will it aid the cause of civil progress in thdse coun- 
 tries. The contrary would result; it would bring about continuous 
 troubles and bloodshed between these republics, that must ultimately 
 compel a European intervention similar to the one in Mexico, and prob- 
 ably complicate your government. European powers could not remain 
 indifferent to the sufferings and ruin of their subjects and the paralyza- 
 tion of industry and commerce. 
 
 We beg to call your attention that when Spain attempted, in 1865, to 
 reclaim her former authority over the territory of Peru, the United States 
 promptly and firmly declared that she would not consent to the dismem- 
 berment of Peru. One of the reasons given at that time by the United 
 States against the occupation of the guano Islands by the Spanish 
 forces was that the guano was pledged to the payment of the national 
 debt of Peru, and the same question is now presented. Chili claims a 
 right to hold the guano and nitrate territories of Peru, which are pledged 
 to the payment, principal and interest, of said debt. 
 
 We desire further to call your attention to the fact that even previ- 
 ously the United States interfered to re-establish peace between Spain 
 and her ancient South American colonies before and after the bombard- 
 ment of Valparaiso and Callao, and brought about the convention signed 
 at Washington by the belligerents. These results were obtained under 
 the auspices and friendly exertions of the United States. We must now 
 be permitted to express the hope that, in jour judgment, this is a fit occa- 
 sion for a similar interference on the part of your government, which is 
 the natural protector of liberty and promoter of civilization in the New 
 World. ^ 
 
 The Credit Industriel entered into a contract with Peru, executed at 
 
 Paris on the 7th of January, 1880, under which contract it undertook 
 
 to manage and work the guano and nitrate deposits on behalf of the 
 
 Peruvian creditors. That contract is to-day binding. On this point we 
 
 S. Ex. 79 44. 
 
690 AFFAIRS IX CHILI, PERU, AND BOLIVIA. 
 
 sitbmit the opinions of Messieurs E. 51. Underdown, John Holker, E. 
 Macnagthen, P. Jozon, H. J)ubuit. 
 
 The Cr6dit Industriel is prepared to fulfill her obligations under the 
 protection of the Government of the United States, who will be the 
 international trustee. 
 
 The proposition which we submit we deem to be the oniy practical 
 solution of this South American conflict. 
 
 It is the only one which will satisfy the belligerents, protect the inter- 
 ests of their creditors, and secure a lasting peace without injustice or 
 dishonor to any one. 
 
 We submit that time has become a vital question. 
 
 The Chilian arms surround Lima. Any hour we may hear of a de- 
 cided battle. If Lima falls or the Chilians should be repulsed the mo- 
 ment will then have arrived for mediation ; to be on the spot at that 
 moment becomes imperative. If you should determine to make another 
 effort to secure peace between these sister republics it is essential your 
 representative should proceed without delay to South America. We 
 are prepared, as the authorized representatives of the Credit Industrial, 
 to accompany the commission and submit its financial propositions. 
 
 We remain, sir, with great respect, your most obedient servants, 
 
 C'TE de MOXTFEEBAXD. 
 FEAXC'O DE P. SUAEEZ. 
 
 Documents annexed to the foregoing communication. 
 
 (1.) A letter to the president of the '• Societe Generale de Credit Indus- 
 triel et Commercial," dated the 1st April, 1880, by the presidents of the 
 French, Belgian, and Dutch-*Peruvian bondholders' committees. 
 
 (2.) The reply to said letter by the president of the " Societe" Generale 
 de CreYlit Industriel et Commercial," dated the 6th April, 1880. 
 
 (3, 4, 5.) Legal opinions of Messieurs E. M. Underdown, John Hol- 
 ker, E. Macnaghter, P. Jozon, and H. Dubuit. 
 
 (6.) The contract, of the 7th January, 1880, executed at Paris, 
 between Peru, by her authorized representatives, M. M. Juan, M. de 
 Goyeneche, and Don Francisco Eosas, and the Credit Industriel by M. 
 Heuri Durrien, president. 
 
 _[Inclosure 1 in No. . — Translation.] 
 
 Sir. President of the Soewtt: Generale' de Credit Industriel and Commercial, Paris. 
 
 Mr. President : Replying with pleasure to the initiative of the French committee, 
 your society has been pleased to tender its aid to the project for regulating the Peru- 
 vian bonds, and to this end yon have entered into negotiations withjMessrs. Rosas and 
 de Goyeneche, which have resulted in the contract of the 7th January last. 
 
 This contract is the first which assured, in a possible manner, and in a definitive way, 
 service of the Peruvian bonds. That is why all the committees of the continent have 
 adhered to it not only without hesitation, but with the consent of all. Under other cir- 
 cumstances Peru would never have conEeated to the abandonment of its pledge, above 
 all, irrevocably. 
 
 On the other hand this agreement respect all the rights of third parties, and prin- 
 cipally those which have been consignees of the guanos of Peru since these last were 
 always complaining of the partiality of the Peruvian conrts, hereafter in the settle- 
 ment of their differences can address themselves to judges of their own countries, and 
 if they have nothing unjust to demand, we cannot understand how they can be sus- 
 picious of the courts of their own countries. 
 
 Unable to explain, by reasons which are avowed, whether by what took place in the 
 meetings at London, or the scandalous contract signed at Lima by the Dictator Pi6- 
 roia, and an agent of the house Dreyfnss ; unable above all to establish that the con- 
 tract of the Credit Industriel is not both for the creditors of Peru and Peru, the most 
 huuest and the most advantageous which was ever made, the interested adversaries 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 691 
 
 of this agreement propagate doubts as to its validity, pretending that the powers of 
 the commissioners who signed it were revoked or rightfully annulled by the coming 
 into power of a new government. 
 
 Undoubtedly the facts, the official documents, and the Peruvian law itself show that 
 these reports are without foundation ; but the silence and inaction of the Sociite of 
 the Credit Industrial has allowed them to be propagated and to alarm those whose in- 
 terest we represent. 
 
 It is with this view, sir, that we ask you to answer the preceding observations by a 
 letter, which we propose to publish, in order that our shareholders may partake of the 
 confidence which we ourselves have, and which results from our frequent interviews 
 with you. 
 
 Please accept, Monsieur le President, onr sincere salutations. 
 
 Paris, March 30, 1680. 
 
 A. GUILLAUME, 
 Tresident of lite French Committee Peruvian Bondholders. 
 
 Antwerp, March 31, 1860. 
 
 LOUIS GODDEEIS, 
 President Belgian Committee of Peruvian Bondholders. 
 
 Amsterdam, 1st April, 1880. 
 
 A. L. VIEEFBAIN, 
 President of the Dutch Committee of Peruvian Bondholders. 
 
 [Inclosure 2 in No. — .J 
 
 [Societe Guni-ralo de Credit, Industiiel and Commercial, 66 rue de la Ch'U d'Autin, et 72 rue de la Vic- 
 • toire.] ' # 
 
 . Paris, 6th April, 1880. 
 
 To Messrs. the Presidents of the French, Belgian, andDutch Committees, for the protection of 
 Peruvian creditors now in Paris : 
 
 Gentlemen : We answer your letter which you did us the honor to write to us on 
 the 30th ultimo. . . . 
 
 If the contract, which we signed on the 7th January, 1880, with the commissioners of 
 the Peruvian Government, has not yet been carried into execution, that jaises no doubt, 
 on our part, of its validity or of the rights which it confers upon us. The circum- 
 stances under which this treaty was concluded, and the opinion of gentlemen of thehigh- 
 est authority, both in France and in England, do not permit us to have any doubt on 
 
 this subject. ' ..„,.,, .., .., 
 
 But you know the complications of various kinds which have, until the present 
 time, paralyzed our'efforts. , ... 
 
 Under these circumstances we can only reaffirm our intention to maintain our con- 
 tract in the conditions in which it was concluded. 
 
 Furthermore, we do not doubt that, enlightened by the events which are taking place, 
 as well in Chili as in Peru, the creditors of the latter state, to whatever nationality they 
 belong, will soon rally to you, which will facilitate the accomplishment of the work 
 which we have undertaken. 
 
 Accept, gentlemen, the assurances of our distinguished consideration. 
 
 SociSte" Ge'ne'rale de Credit Industriel and Commercial. 
 
 LePre8ident: H. DUREIEN. 
 
 Inclosures Nos. 3, 4, and 5 are legal opinions of English and French lawyers as to 
 the reliability of the contract which, in view of the extent and magnitude of these 
 papers are not forwarded. It is not supposed in the Department that they are impor- 
 tant ; but if desired tbey can be copied and sent at a later day. 
 
 InclosuTe 6 is the contract between the Government of Peru and the Socie'te' Ge'ne'rale 
 de Credit Industriel et Commercial, dated January 7, 1860, and the annexeB thereto. 
 The documents are long and in the Spanish language, and to print them in full would 
 delay.their presentation. If it is desired to have them in full there is no objection to 
 their publication. The substance of the documents is as follows : 
 
692 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Contract concluded at Paris, January 7, 1880, between the supreme government of 
 Peru and the Soei6t6 Generate de Credit Industriel efc Commercial, for the definite 
 adjustment of the Peruvian foreign loans of 1870 (6 per cent.) and 1872 (5 per cent.). 
 The preamble shows that — 
 
 1st. A contract signed at Paris, May 12, 1870, with Dreyfus Brothers & Co., floated a 
 loan of 280,000,000 francs, guaranteed by guano sales. 
 
 2d, A like contract, of Lima, July 7, 1871, created a new loan of £36,800,000, with a 
 like guano- sales guarantee, and also a mortgage on the guana beds themselves and a guar- 
 antee of all present and future revenues of the Peruvian Government. This was known 
 as the loan of 1872. 
 
 3d. The holders of these two issues of bonds "have the absolute right to exact 
 the effective delivery of those securities, and especially of the guano and nitrate de- 
 posits, if the debtor state default." 
 
 4th. Various laws and decrees of Peru, of which the dates are cited, recognize these 
 lights. 
 6th. The loans of 1870 and 1872 have been in default since July 1, 1875. 
 6th and 7th. Attempts to compromise these debts by a new arrangement have 
 failed. 
 
 8th. Peru is anxious to restore her impaired credit. > 
 
 9th. That the proposal for a new arrangement, made in 1876, is still open, especially 
 as the guano company has failed in its duty to the Peruvian Government by not honor- 
 ing its drafts. 
 
 Therefore, these conclusions are reached : 
 
 1st. That the guano and nitrate deposits must be worked to extinguish the debt. 
 ad. That the present contract is not intended to give the bondholders the right of 
 working the deposits, but simply to fix the conditions of working the same, provided 
 '(a) tbat the Slate pledges the' irrevocability of this contract, and (Z>) that existing 
 guano and nitrate contracts are not to be modified without the consent of the bond- 
 holders. ' ' 
 
 3d. That the most satisfactory basis of a' settlement is the assured participation of 
 the creditors iu the results of the working of the deposits. 
 
 4th. That as this needs capital, a society for woiking the beds is to be created as a 
 stock company, to execute this contract. 
 
 5th. That this arrangement is conformable to the already expressed wishes of the 
 bondholders. 
 
 The first title of the contract regulates the conditions of working the guano beds by 
 the special eocttti to be formed, &c. All deposits discovered or to be discovered in Peru- 
 vian territory are comprised in this contract. Eighty per cent, of the net profits of the 
 socieie to be divided among the bondholders; £2 per ton extracted to be paid to Peru, 
 and not less than 200,000 tons to he extracted annually. Peru is also to receive £2 
 worth of bonds of 1870 and 1872, for each ton shipped. These are to be monthly pay- 
 ments, estimated on the returns of the previous year ; and if exportation is prevented 
 for any cause this payment is not to be made. The society to begin operations at once; 
 choose the beds it will work, and mine and ship by its own agents. The government 
 may inspect the shipments and confirm the correctness of the company's operations, 
 all expenses to be borne by the company. The Peruvian Government to supply proper 
 customs facilities for guano vessels arriving in ballast or with cargo at any selected 
 point of operations. No export tax to be levied. Any loss of cargo by wreck, &c, to 
 be borne by the company ; but it may export equal cargoes afterward without paying 
 Peru fur them. Salts to natives of Peru to be made by the company ; the government, 
 however, to share in all money paid therefor in excess of £12 10s. ($62) per ton. The 
 company is to monopolize the European trade in guano, and may also take any other 
 trade not already covered by contract with subjects of uon-European States. Any ex- 
 traction of guano except by the company, to be regarded as robbery, and penally pun- 
 ished on conviction. All questions affecting the execution of the contract and not di- 
 rectly concerning the government to be decided by the courts where they arise ; but 
 suits by third parties relative to possession of the active beds, or abandoned beds, can 
 only be heard in European courts (article 23). The Dreyfus contracts are transferred 
 to the society, and the society is to respect all rights thereunder. 
 
 The second title of the contract regulates the exportation of nitrates, as follows : 
 The company to be organized by the Credit Industriel is to occupy and work all de- 
 posits belonging to Peruvian Government, but to respect existing rights specifically 
 guaranteed by the nitrate beds. The conditions of working are essentially as with re- 
 gard to the guano deposits. The socidte to pay Peru £2 in cash for each ton sold, and, 
 besides this, one-half of all excess above a selling price of £ 16 per ton. When existing 
 saltpeter certificates are paid off, th3 government is to receive an additional £2 in bonds 
 of 1S70 and 1872 for each ton sold. Tne annual production of nitrates not to be less than 
 1UO,000 tons. There being private nitrate beds in Peru not embraced in this contract, 
 all private shipments are to endure a gravamen of 1.25 soles (about $1) per quintal 
 (the present export duty), but the sooiite has no export duty to pay. The sodeii is to 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 693 
 
 collect the export diities on private guano, and retain fifty per cent, thereof after de- 
 ducting five per cent, for expenses. (These conditions are equivalent to a complete 
 prohibition of private exportation, especially as Peru engages— article 41— to procure 
 the enactment of a law raising the export duty to 2 soles (about $1.60) per quintal.) 
 
 Title 3.— The contract is to run from its date, January 7, 1880, and to expire when the 
 last boud of 1870 or 1872 is cancelled. Foreign powers to be notified by Peru of the 
 conclusion of this contract. So soon as thespecial guano and nitrate company provided 
 by this contract is organized, the Socie't^de Credit ludnstriel et Commercial is relieved 
 of all responsibility flowing from the contract. 
 
 Signed by F. Rosas and Juan M. de Goyeneche, on behalf of Peru, and by H. Durrieu, 
 on behalf of the SocicSte' Ge"ue>al de Credit ludnstriel, &e. 
 
 CONDITIONS. 
 
 Appended to the contract are the constitution and by-laws of the special society or 
 company formed under the contract with the Cr6dit Industriel. Its title is "Socie'te' 
 des Guanos et Nitrates dn Peron" (Gaano and Nitrate Company of Peru), with head- 
 quarters at Paris or London. Capital, 100,000 shares of 500 francs each per — , or 
 $10,000,000. In addition it is to issue bonds to the value of $80,000,000, which are to 
 be distributed pro rata among the holders of the existing Peruvian guano or nitrate 
 bonds. A sinking fund is to be provided, and surpluB revenue to be annually distrib- 
 uted among the Peruvian Government, the Peruvian bondholders, the stockholders of 
 the company, and the sinking fund, in fixed ratios. The company reserves very gen- 
 eral powers in its administration and working the deposits. The Peruvian bondhold- 
 ers are to name a supervisory committee, to examine the books of the company quar- 
 terly. The Peruvian Government may also send special agents as inspectors. And, 
 lastly, the rights of Peruvian bondholders, who do- not exchange their bonds for the 
 bonds of the company, are to be denied, under the sole responsibility of the Peruvian 
 Government. These by-laws, &c, are dated January 7, 1880. 
 
 A supplementary pamphlet, called " Annexes," publishes a number of official docu- 
 ments concerning the action of the Peruvian Government and the institution of the 
 company. These are : * 
 
 1st. The full power, given by Acting President La Puerta, of Peru, to Francisco 
 Rosas and Juan Mariano de Goyeneche, to conclude the contract, dated Lima, Ociober 
 13, 1879. 
 
 2d. The full text of the Dreyfus contract of May 19, 1870, under which the 6 per 
 cent, loan of 1870, 298,000,000 francs in all, was negotiated. 
 
 3d. The text of the general guarantee printed on the bonds of 1870, whereby it was 
 made a preferred obligation, to be met by the products of the guano deposits, and by 
 the capital and reyenues of Peruvian railway?, and the customs revenues of Peru. 
 
 4th. The text of the Dreyfus contract of July 7, 1871, under which the 5 per cent, 
 loan of 1872 was negotiated. 
 
 £tu. A memorandum, undated, setting forth the resources of Peru to meet the loan 
 of 1872, signed by Meliton Porras. 
 
 6th. The text of the general guarantee printed on the bonds of 1872, mortgaging all 
 the guano itself existing in Peru, and all government sales of guauo. Dated January 
 1, 1872. 
 
 7th. The Peruvian decree of November 14, 1873, which among other things pledges 
 absolutely all the guano in Pern as a guarantee for the loans, of 1870 and 1872, and 
 authorizes the holders of these debts to take possession. of them. 
 
 8th. Declaration made by the Peruvian Government to the Peruvian legislature in 
 1874. 
 
 9th. Diplomatic circular of January 11, 1876, concerning the Peruvian foreign debt, 
 signed by Juan Ignacio Elguera. 
 
 10th. Extract from the nitrate contract of 10th July, 1870, between the Peruvian 
 Government and the La Providencia Bank, prescribing the conditions under which the 
 bank was to control the production, sale, and exportation of nitrates found in the de- 
 posits belonging to the State. 
 
 [The following is the correspondence between Mr. Guilluame, chair- 
 man of the Peruvian bondholders' French committee, and Mr. E. E. 
 Randall, and referred to in this correspondence, and made a part 
 
 thereof.] 
 
694 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 Mr. Guillimme to Mr. Randall. 
 
 Paris, October 27, 13?0. 
 To Mr. Robert E. Randall, Philadelphia : 
 
 Sir : I have the honor to acknowledge the receipt of your dispatch, which reached 
 Paris October 25, 1880, at midnight, as follows : 
 
 Mediation accepted. Banqne Should send authority, official, to offer Guilluame's 
 programme. 
 
 " RANDALL." 
 
 I confirm the telegraphic reply which I have sent you this day : 
 
 " Bank writes to declare officially that it is ready to carry oat as far as it is concerned 
 the programme sent to you. Letter follows. 
 
 "GUILLUAME SUAREZ" 
 
 , In conformity with this dispatch, I send you herewith the letter alluded to above. 
 As you will Bee, this letter is an official and unqualified authorization of the Credit 
 Industriel, confirming that this company accepts my programme, and is ready to carry 
 it ont. 
 
 The Government of the United States, to which you will communicate this 
 authorization, will consequently have the certainty that it can proceed in the 
 matter, and that from the start the financial realization of which it will propose 
 is guaranteed by a company of undisputed credit. I go still further. I think 
 that the Government of the United States can do more than to offer this programme. It 
 can compel its acceptance; Chili and Peru, owing to circumstances, being in a 
 false position, and desiring in the eyes of their to appear as if they were subjected 
 to pressure. I do state what precedes lightly. I have had conversations with persons 
 in a position to know the truth on the subject, and I can assure you that the desire 
 for peace in government circles is as strong at Lima as it is at Santiago, but that 
 neither dares to make the first advances on account of the high state of excitement of 
 the masses ; whence their equally great desire to ijee a great power to take the 
 initiative to compel peace upon an acceptable basfc. 
 
 As to the European governments, there is no doubt that they would see with great 
 satisfaction the settlement of the question of the Peruvian bonds, which interest their 
 people, and the termination of a war the continuation of which would injure their 
 agricultural interests. 
 
 On this side there is no cause for fear. There remains a special question, to a former 
 consignee, Mr. Dreyfus. 
 
 Some years ago Mr. Dreyfus declared that he was a creditor of Peru for about 
 100,000,000 francs. General Prado's government refused to recognize this claim, but 
 the following government, that of Mr. Pierola, admitted the above claim to the amount 
 of 50,000,000 francs, and authorized Mr. Dreyfus to export guano to cover himself. 
 
 We cannot interfere with this question, as we have neither the data nor the power 
 to decide on the legality of the Dreyfus claim. However, I have reasons for supposiug 
 that Mr. Pierola may strongly insist that this claim should be taken into consideration 
 in the final settlement. 
 
 In this case, and if it were indispensable, the above claim might perhaps be ad- 
 mitted, but with the condition that its reimbursement should not diminish the por- 
 tion set apart for the bondholders from the proceeds of the guano. (Statement No. 1 
 of the programme.) 
 
 In this order of ideas it should be stipulated that the Dreyfus claim should be paid 
 out of the totality, or the two-thirds of the part set aside for paying off the Peruvian 
 bonds, £300,000 of the apportionment shown in the statement No. 3 of the programme 
 (say with from £200,000 to £300,000 yearly). 
 
 It would require ten years to effect this liquidation, interest included. And this 
 would be equitable, for there is no reason why Mr^ Dreyfus should be privileged, in- 
 stead of being included in the pro rata as all the other creditors. It is already a great 
 deal to admit this debt. 
 
 I think I may assert a general acceptance on this basis. 
 
 But the absolute principle, which should not be lost sight of, is that the Credit 
 Industriel shall be recognized and constituted the general liquidator, the worker of 
 the guano and nitrates, the distributer of the proceeds to Chili and Peru, to the. bond- 
 holders and creditors (all resident in Europe), that the " Crddit Industriel " should be 
 the syndicate, and that the deposits shall be neutralized until the paying off of the ac- 
 counts, as otherwise there would be competition, and, with it, a depreciation of prices, 
 preventiug the fulfilling of the engagements that have been taken. 
 
 I beg of you, Bir, to receive the assurances of my distinguished consideration. 
 
 A. GUILLUAME. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 695, 
 
 Mr. Guillaumc to Mr. Durriir. 
 
 Paris, October 27, 1880. 
 To Mr. Dukrien, 
 
 President of the SociiU General de Oridii Induslriel et 
 
 Commercial," 66 Chausee d''Jnteri, Paris : 
 
 Sir: I have the honor to lay before you the following facts: Owing to circum- 
 stances that it would be too long to explain here, Peru and Chili cannot easily treat 
 of peace without the intervention of a great foreign power, and the Government of 
 the United States is the only one, in fact, whose mediation is acceptable by the two 
 belligerents, and accepted by them. 
 
 On the 26th of last September I had, in connection with this subject, an interview 
 with Mr. Robert E. Randall, brother of Mr. Samuel Randall, Speaker of the House of 
 Representatives of the United States, and we reached the following conclusion : 
 That the American Cabinet could not intervene in an urgent and consequently effica- 
 cious manner unless it were placed in a condition to submit to the Chilian and Peru- 
 vian cabinets a well-defined programme, giving equitable satisfaction to all the 
 interests concerned, local or foreign, and whose realization, in a financial point of 
 view, would be rendered certain by the financial institution (Etablissment de Credit) 
 of undoubted standing, already in possession of certain rights entitling it to be con- 
 sidered liquidator, and backed, moreover, by a great number of those interested. 
 
 The next day, 27th, I gave to Mr. R. E. Randall a programme which he believed 
 would be acceptable by the American Cabinet as a basis of the mediation which this 
 cabinet was to offer or impose in order to put an end to the present war. 
 
 You will find herewith a copy of this programme, which, in substance, is nothing 
 more than the almost textual execution of the contract signed by the Credit Indus- 
 triel January 7, 1880. 
 
 Mr. Rostand was informed October 1 of the negotiation entered upon with Mr. Ran- 
 dall, who had left for Washington. 
 
 The declarations and assertions of Mr. Randall -were confirmed much sooner than I 
 had hoped for, as I have just received the following cable dispatch : 
 
 [Translation.] 
 
 (October 25, midnight. Paris, from Philadelphia. 48-16. V. R. B.) 
 
 Mediation accepted. "Banque" should send authority official to offer Guilluame's 
 programme. 
 
 RANDALL. 
 
 I therefore beg you, Mr. President, to place me in a position to answer Mr. Randall, 
 and to give satisfaction to the request of the United States Government, whose media- 
 tion, in the conditions presented, will have an importance which you oauuot fail to 
 recognize. 
 
 Receive, Mr. President, the assurance of my high consideration. 
 
 The president of the French committee of Peruvian bondholders. 
 
 A. GUILLUAME. 
 
 Mr. Durrier to Mr. GuiUuame. 
 
 [Societii general de Civdit Industrial and Commercial, 66 Rue de la Cli'see d'Anteriet 72 Eiie de la 
 
 Victoire. 
 
 Paris, October 27. 1880. 
 
 Sir: By yonr letter of October 27, current, you were kind enough to communicate 
 to us the programme that you had given a few weeks back to Mr. Robert E. Ran- 
 dall, of Philadelphia, which might serve as a basis for the diplomatic intervention or 
 arbitrat ; on of the United States of America in the settlement of the difficulties now ex- 
 isting between the Governments of Peru and Chili. 
 
 After examination of this programme, we have reached the conclusion that in its 
 spirit, as well in its principal conditions, it is in conformity with the agreement which 
 we signed January 7, 1880, with Mr. Rosas, then president of the Peruvian Senate, 
 and Mr. de Goyeneche, Peruvian minister in France, both acting in virtue of the full 
 powers given them by their government. 
 
 Consequently we have no difficulty in acting in conformity to the desire which you 
 made known to us, and we are ready to accept officially the task of settling, or of 
 
696 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 causing to be settled, by a special company, which we will organize for this purpose, 
 the interests of the Peruvian creditors, in conformity with the said agreement of Jan- 
 uary 7th, and with your programme, of which it is the reproduction. 
 
 Nevertheless, it is well understood that if modifications were to be made during the 
 course of negotiations these modifications should first be submitted to our " soci^te' " 
 which signed the agreement of January 7, 1880. 
 
 We authorize you to communicate the present to Mr. Robert E. Randall, in reply to 
 the dispatch sent by him to you by the electric cable — dispatch which reached you 
 the 25th instant, and which we authorize you* to answer in the following terms : 
 
 " Bank writes to declare officially that it is ready to carry out as far as it may be 
 concerned programme sent you. Lettei follows." 
 
 Please receive, sir,&c. 
 The president. 
 
 Z. DURR1ER. 
 
 Mr. Guilluame, 
 
 President ofkhe Committee of the Holders of Peruvian Bonds. 
 
 Iso. 424. 
 Count de Hontferrand and Mr. Suarez to 2ir. Evarts. 
 
 Washington, D. C, February 1, 1881. 
 
 Sir: la compliance with your wishes on cablegram advices from 
 Bobert E. Eandall, esq., the attorney and counsel of the Soci6te" Gen- 
 eral de Credit Industriel et Commercial, we are here to arrange with 
 you a feasible settlement of the existing war between the Eepublics of 
 Peru, Bolivia, and Chili. 
 
 The documents which we have had the honor to place in your hands 
 accredited us as the representatives of that societe to offer the terms 
 and conditions contained in the programme transmitted to you by that 
 society through the above-named gentlemen. 
 
 In our judgment that offer is the only one which will permit a prac- 
 tical and immediate solution of the South American difficulties ou just 
 and equitable terms to all parties. We see no other mode to secure an 
 honorable and lasting peace. 
 
 The right of conquest which Chili claims to exercise can only lead to 
 ever-recurring fratricidal struggles, marked by outrages, reprisals, and 
 bloodshed. Wide-spread anarchy among the South American repub- 
 lics must inevitably ensue. 
 
 We learn that the Government of Great Britain has heretofore urged 
 the mediation of the United States between the belligerents, Peru, Bo- 
 livia, and Chili ; and now we, the representatives of the continental 
 creditors of Peru, follow Great Britain in urging the United States 
 again to enter on a prompt and effective mediation. 
 
 Since we had the honor to address you on the 20th of January Lima 
 has been captured. When the details of that gloomy event come to 
 hand we shall no doubt learn of outrages and wanton destruction 
 which will call down upon them the condemnation of the civilized 
 world. 
 
 But the capture of Lima will not end the war. Peru will continue 
 to resist. It will not submit to the dishonorable terms Chili would im- 
 pose, as developed at the Arica conference — the dismemberment and 
 annihilation of two sister republics. We take this occasion to assert 
 that the success of the Chilian policy, instead of insuring peace and 
 prosperity, will retard and endanger the progress of republican iusti- 
 
AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 697 
 
 tutions on the South American continent, and we submit, with all re- 
 spect, that your government has now the opportunity to foster and 
 protect these institutions with the consent and approval of Europe. 
 
 As you stated in our first interview, we agree the moment has ar- 
 rived for intervention, " Lima has fallen," and no time could be more 
 propitious for the United States to interfere and secure beneficial re- 
 sults to its trade and commerce. 
 
 While on this subject allow us to quote the views expressed by E. L. 
 Baker, consul at Buenos Ayres, in speaking of that republic : 
 
 Our interests in. the political prosperity of the South American republics, nearly all 
 whose foreign business associations are now monarchial instead of democratic, should 
 prompt us, if possible, to bind our own to the republics of the River Plate, by the 
 strong bonds of a mutual reciprocal trade. Commerce is the great eivilizer and politi- 
 cal missionary of the world; and the ideas and methods by which the United States 
 have advanced to their present commanding position among the nations of the earth, 
 if brought into closer contact and communion with this country, could not fail to act 
 and react most favorably upon its commercial, industrial, and political destinies. In 
 no other way could we better spread and propagate the principles and ideas which have 
 built us up as a great nation than by the secret, silent influences of a closer and mure 
 intynate intercourse. 
 
 All of which is far more pertinent to the west than to the east coast 
 of South America. 
 
 We are prepared, as heretofore stated to you, to accompany a com- 
 mission of the United States to the belligerents to aid in securing the 
 success of your government's intervention in behalf of peace, for we 
 believe, in such event, we will be able to adjust the financial dif- 
 ficulties existing between those hostile governments. We deem it 
 proper and important to declare emphatically that this offer rests 
 on the guarantees of a powerful financial association, whose negotia- 
 tions are coextensive with the commercial world. The " Soci6t6 Gen- 
 eral de Crexlit Industriel amd Commercial" is fully able to execute all 
 existing and any possible future contracts between the belligerents 
 themselves or between them and their creditors. The "societe" is 
 ready to proceed, and only waits the action of your government. 
 
 We therefore respectfully request the proposed mediation of the 
 United States shall receive your prompt attention, and that you will 
 at the earliest practicable moment signify to us in writing your deter- 
 mination, so we may be able to communicate the same to our principal. 
 
 We avail ourselves of this occasion to renew to you, sir, the assur- 
 ance of our most distinguished consideration. 
 
 CH. de MONTFERRAXD. 
 FRANCO. DE P. SUABEZ. 
 
 No. 425. 
 
 Mr. Suarez to Mr. JEvarts. 
 
 Willard's Hotel, 
 Washington, February 9, 1SS1. 
 
 Sir : I beg leave to address you on the present occasion not so much 
 in my official capacity as delegate of the " Credit Industriel," but as an 
 American who has at heart the proper influence and supremacy due to 
 the United States among the nations of the New World. 
 
 This is the main reason which has led me to advocate the idea em- 
 bodied in the programme of the "Credit Industriel," inducing the for- 
 eign creditors of Peru voluntarily to place their interests under the 
 guardianship of the Government of the United States. 
 
698 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 The Monroe doctrine is recognized as constituting one of the funda- 
 mental principles of the American international policy. It follows, there- 
 fore, that the Government of the United States is bound to protect 
 foreign interests against the fatal consequences brought forth by the 
 internal convulsions and the unsettled political condition which, unhap- 
 pily, have ever been the lot of the ancient Spanish colonies. Otherwise 
 the Government of the United States would not be justified in protesting, 
 under certain circumstances, against a direct action of the European 
 powers for the protection of the rights and interests of their own sub- 
 jects. 
 
 You must be aware that much is to be done to secure to the United 
 States that political and commercial control which its position should 
 command in South America. To the present moment European influ- 
 ence has controlled those commercial relations, as well as being an im- 
 portant factor in their State affairs. 
 
 Xo one can appreciate more readily than yourself the accuracy of my 
 views, as the ideas they convey are but a mild expression of your own 
 foreign policy. 
 
 These ideas you have had the high satisfaction to enforce by your 
 treaties with China and with Japan. 
 
 Yet their success in South America is far more important to the inter- 
 ests of the United States, specially at this moment, when the effort is 
 being made to cut a canal across the American isthmus under European 
 financial control. 
 
 I agree with you that the actual state of affairs in South America 
 affords to your government a most brilliant opportunity to inaugurate 
 a most desirable international policy between the United States and its 
 sister republics. 
 
 More, you agree with me that the programme submitted to you by 
 the "Credit Industriel" constitutes a most important element to bring- 
 about peace and concord among the belligerents, but you are certainly 
 aware that the financial and commercial aid tendered by the " Credit In- 
 dustriel" will be of no avail if it is not properly offered to them under 
 the auspices of a great friendly power, ready to meditate and adjust 
 their mutual claims on just and equitable terms, such as stated in the 
 programme referred to, and if necessary, to assume the high position of 
 international trustee. 
 
 The Government of the United States will not assume any serious 
 responsibility, since the responsibility will be confined to a mere guaran- 
 tee to the interested parties that it will not permit the slightest viola- 
 tion of the programme submitted by the " Credit Industriel," and -to 
 that effect the Government of the United States will have the right to 
 appoint an official comptroller. 
 
 The adoption of such course would be most creditable, and would re- 
 ceive the immediate indorsement and cordial support of European pow- 
 ers to the satisfaction of the creditors. The spontaneous appeal of the 
 Peruvian bondholders virtually involves the recognition of the Gov- 
 ernment of the United States as the natural protector of European in- 
 terests in the western hemisphere, it involves in fact the full recogni- 
 tion of the Monroe doctrine without passing through the long, unsafe, and 
 tangled channels of diplomacy, and further it will practically aid to 
 put an end to the latent political antagonism existing between mon- 
 archical Europe and republican America. 
 
 As it has been fully stated in the communications which my colleague 
 (Mr. le Comte de Montferrand) and myself have had the honor to ad- 
 dress to you, the present occasion is exceptionally favorable to initiate 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 699 
 
 sucli a policy; and if time will not allow you to accomplish this patri- 
 otical task, no one will dispute with you the glory of having originated 
 and introduced a policy which will surely bring honor, peace, and pros- 
 perity to the American republics. 
 
 Considering this momentous question from this high point of view, 
 I submit, with all respect, that the hour has arrived for carrying out 
 your ideas of sending instructions to your ministers at Lima, Santiago, 
 and La Paz to renew the offer of mediation and to recommend at the 
 same time to the consideration of the belligerent States the financial 
 programme of the "Credit Industriel," and further to declare that the 
 Government of the United States is willing to act as international 
 trustee for the benefit of all interested and for the perpetuity of repub- 
 lican institutions. 
 
 This course will not create any international difficulties. Quite the 
 contrary; it will give to the United States another opportunity to 
 assume the honorable position of pacificator and jiromoter f civiliza- 
 tion. 
 
 Briefly, if you see no objection to it (and the last news received from 
 the seat of war confirms my earnest opinion about the continuance of 
 hostilities as well as in regard to the opportunity of taking such a meas- 
 ure without further delay), 1 will be happy to learn that you are de- 
 cided not to leave your high post without making another effort to 
 inaugurate in South America the policy which you have so successfully 
 secured in China and Japan. 
 
 In such a case I will, with your permission, send a confidential dis- 
 patch to the " Credit Industriel," and I will promptly communicate to 
 you their reply. In the mean time, I beg leave to say that if you should 
 deem my personal services of any practical use to success, command 
 them, and moreover if you should see no impropriety to intrust to my 
 care such an honorable commission, I will' start immediately for Lima 
 with your dispatches to the ministers of the United States in Peru, 
 Bolivia, and Chili. 
 
 Waiting for the honor of an answer, please accept, sir, the assurance 
 of my respected consideration. 
 
 FRANCO. P. SUAEEZ. 
 
 No. "426. 
 
 Mr. le Gomte de Mont/errand to Mr. Hearts. 
 
 [Translation.] 
 
 Washington, February 14, 1881. (Received .) 
 
 Mr. Secretary of State: Being about- to leave Washington, I 
 have the honor hereby to confirm the information previously given that 
 Mr. de Suarez, who has been accredited near you by the Credit Indus- 
 triel, is authorized to receive your reply in reference to the Pacific af- 
 fair, and to transmit it to Paris, in a word to continue the negotiations 
 commenced by us. 
 Be pleased to accept, &c, 
 
 CH. DE MOjSTTFERRAXD. 
 
 9 
 
700 AFFAIRS IX CHILI, PEKU, AND BOLIVIA. 
 
 Xo. 427. 
 
 Confidential note. — Re-Chilo-Perurian affairs. 
 
 Interested parties in the contract between the Government of Peru and 
 the " Soci^te General de Credit Iudustriel et Commercial," dated at 
 Paris the 7th January, 1880, subject to modifications in accordance 
 with the financial and commercial programme submitted to Hon. 
 William M. Evarts, Secretary of State, namely : 
 
 English interest is represented by the high-standing house of Mathe- 
 son & Co., bankers, whose business relations extend over the whole 
 world, most especially to India and Spain. One of the partners is an in- 
 fluential member of the House of Commons. 
 
 There is no committee in England officially recognized by tbe Peru- 
 vian bondholders. Actually there are three conflicting committees more 
 or less favorable to Chili. 
 
 But we have received assurances from the " foreign bondholders' com- 
 mittee" (theonly corporation of the kindexistinginEuropeand maintain- 
 ing regular official intercourse with foreigu governments in connection 
 with their external debts), tendering to the Credit Indnstriel their good 
 offices, and offering their aid and support as soon as we shall commence 
 operations on behalf of the Peruvian creditors. 
 
 Belgian interest is represented by Mr. Louis Godderies, president of 
 the Belgian-Peruvian bondholders' committee. Mr. Godderies is a 
 banker himself, and he is supported by first-class banking-houses con- 
 nected with the guano and nitrate agency. 
 
 Dutch interest is represented by Mr. A. L. Vurfbain, president of the 
 Dutch-Peruvian bondholders' committee. Mr. Yurf bain is the president 
 of the Amsterdam stock exchange, and is equally supported by some of 
 the principal bankers in Holland. 
 
 German interest is represented by the "Deutsche ^National Bank" of 
 Bremen, seconded by powerful banking-houses. One of the members 
 of the German group holds a seat in the national Beichstadt. and, I 
 have been told, he disposes of a great influence in political circles. 
 
 French interest is represented by Mr. A. Guillaume, president of the 
 French-Peruvian bondholders' committee. He is supported by the 
 " Credit Industriel," the " Banque Franco-Egyptienne," and many other 
 banking and commercial houses of high standing. Among them, one 
 of the most important, are Messrs. 'Dreyfus Freres & Co., lately guano 
 agents at Peru, and at the same time one of the largest creditors of 
 Peru. 
 
 Spanish interest is represented by some important banking and com- 
 mercial houses of Barcelona and Valence. 
 
 American interest is represented : 
 
 1st. By a certain number of American citizens holding Peruvian 
 bonds. 
 
 2d. By American citizens having entered into different contracts with 
 the Peruvian Government, and who will not be able to realize their 
 prospects if Chili should be allowed to enforce upon Peru and Bolivia 
 her unjust, exorbitant, and humiliating conditions. 
 
 3d. By the agents for the sale of Peruvian guano and nitrate in the 
 United States. 
 
 4th. By the American company actually holding a contract from the 
 Government of Peru to lay a cable between Panama and Callao. 
 
 It is pertinent to observe, that while Peru and Bolivia have from the 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 701 
 
 beginning of the war turned their eyes towards the United States, 
 Chili, on the contrary, has to the present moment endeavored to 
 fortify her political and commercial links with Europe. She has at- 
 tempted on different occasions to place the guano and the nitrate de- 
 posits under the exclusive control of English houses ; but her efforts 
 have proved unsuccessful, owing to the open declaration of the British 
 Government and of the English courts of justice, which will undoubtedly 
 become more emphatic and decisive as soon as it will be known that 
 the United States has decided to mediate with the firm intention of 
 settling the difficulties existing between the three sister republics, and 
 adjusting every claim on,equitable grounds to all parties. 
 Washington, D. C, February 16, 1881. 
 
 3s T o. 428. 
 Mr. Evarts to Mr. Suarez. 
 
 Confidential.] Washington, February 17, 1881. 
 
 My Dear Sir : 1 have to acknowledge the receipt from you of vari- 
 ous communications in writing on the subject of the restoration of 
 peace between Chili and Peru, and the submission of practical data on 
 which to base a settlem ent. In the conference you have had with m e, you 
 have still further presented your ideas with reference to the financial 
 aspects of the question, as set forth in a certain " programm e for medi- 
 ation between Peru and Chili," as well as in other papers exhibited to 
 me. 
 
 In view of these statements so made by you, I have thought it proper 
 to bring the matter to the knowledge of the United States minister at 
 Lima, by an instruction of to-day's date, in which I communicate to 
 Mr. Christiancy a copy of the programme, and acquaint him with 
 the observations I made to you, on the occasion of our last conference, 
 to the effect that I am always ready to press the mediation of this gov- 
 ernment towards early and honorable peace between the belligerents; 
 that the financial facility and aid which the private interests you repre- 
 sent can furnish toward a liquidation of the pecuniary obligations that 
 the war may have created, and which may need to be met, are calculated 
 to assist the restoration of peace ; that, in this light, they would be 
 laid before the United States representatives in Peru and Chili; and that 
 any future responsibility of this government can only be determined 
 by actual negotiations between the belligerents asking this govern- 
 ment to assume them. If, when you reach Peru-, you should have oc- 
 casion to call upon Mr. Christiancy, showing him this letter, you will 
 find him in possession of the subject. 
 I am, &c, 
 
 WM. M. EVARTS. 
 
 No. 429. 
 [Translation.] 
 
 Mr. F. de P. Suarez has the honor to transmit to the Secretary of 
 State this copy exclusively for his personal use. 
 
702 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Strictly personal.J Washington, February 18, 1881. 
 
 To Mr. Gtjillaume, 
 
 President of the Committee of French Bondholders : 
 
 My Dear Mr. GhjiLLAtraiE : I send yon herewith my latest corre- 
 spondence with Mr. Evarts. You will thereby see that I constantly 
 place myself upon the ground of the Monroe doctrine, which is cer- 
 tainly the firmest one when questions are concerned which are connected 
 with the international policy of the United States. 
 
 Mr. Evarts does not think it consistent with the mission of the United 
 States in the New World to enforce its decisions by compulsion, unless 
 this should he necessary for the protection of republican institutions, 
 or for the defense of the political and commercial future of the United 
 States against the attacks of its enemies. 
 
 Mr. Evarts does not think that the time has come to use force in sup- 
 port of the mediation of the United States against the will of the re- 
 publics of the Pacific. He is, however, quite willing to renew his efforts 
 in behalf of the restoration of peace, and, to this effect, he sends a 
 special messenger by the steamer which sails on the 19th instant, with 
 dispatches to the American ministers at Lima, Santiago, and La Paz, 
 and with instructions to seek most earnestly to convince the belliger- 
 ents of the necessity of terminating a fratricidal war which has al- 
 ready been attended with such terrible consequences, and which must 
 end in the utter exhaustion of all three republics. 
 
 Mr. Evarts commends the programme of the Credit Industriel to the 
 consideration of the ministers. He regards the said combination as a 
 means which may aid considerably in settling the financial difficulties 
 of the situation. Mr. Evarts recommends his agents to utilize, the case 
 arising, the co-operation of the Credit Industriel. In short, the Gov- 
 ernment of the United States, while recognizing the importance of our 
 programme, will confine its action to lending its moral support to that 
 programme. 
 
 As to 4he role of an international trustee, Mr. Evarts thinks, with 
 justice and reason, that it would be neither fitting nor proper for the 
 United States to seek such a position. Nevertheless the United States 
 would willingly accept it if, in the course of the negotiations for the 
 restoration of peace, the parties interested were to agree upon that 
 point. 
 
 As to the rest, you will get a correct idea of the views of the Secre- 
 tary of State by reading the inclosed copy of a confidential note which 
 I have this moment received. 
 
 I must apprise you that, in order to render the grounds for American 
 intervention more evident, and fully to justify the dominant attitude of 
 the United States Government in the Pacific question, I have thought 
 it right and proper verbally to promise Mr. Evarts that the agency for 
 guano and nitrate in the United States should be placed under the 
 patronage of a first-class American house. 
 Accept, &c.j 
 
 FO. BE P.SUABEZ. 
 
 Xo. 430. 
 Mr. Suwrez to Mr. Evarts. 
 
 New York, February 19, 1881. (Eeceived February 23.) 
 Sir : I have the honor to acknowledge the receipt of your interesting 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 703 
 
 confidential note, dated the 17th instant, contents of which I transmit 
 by to-day's mail to my principals. 
 
 I beg also to inclose copy of my cablegram to the " Credit Industrie! " 
 and their reply, signed by Mr. Eostaud, one of the directors. 
 
 As soon as I will reach Peru, I will communicate with Mr. Christiancy, 
 and be sure, sir, that I will assist in every way to bring about peace and 
 to secure to the American flag its due supremacy in the political and 
 commercial relations of the South American republics. 
 
 Be pleased to accept, sir, my sincere thanks for your courtesy and 
 kindness, and at the same time the assurance of my highest considera- 
 tion. 
 
 PEANCO. de P. SUAEEZ. 
 
 [Telegram.^ 
 
 Private.] Washington, February 17, 1881. 
 
 To Tibakvel, Paris ; ^ 
 
 Etienne with fresh instructions to press restoration of peace. Acte will be sub- 
 mitted to their representatives to be useful towards bringing about peace. Paul 
 thinks better wait until negotiations are reopened for parties ; ask Pierre, trustee. 
 Authorize me to go south ; steamer leaves Saturday. Immediate answer required to 
 notify Paul. Cable funds for trips. Charles absent. 
 
 FELIX. 
 
 Reply from the " Credit Industriel." 
 
 To Fkancisco Suarbz, 
 
 Washington : 
 Partez pour Peron credit cinq cents dollars chez Lavenburg New York un et deux 
 d'accord pour a&ir ensemble en vue de paix. 
 
 ROSTAUD. 
 
 Etienne. — Agent of the American Government, going to the Pacific in connection 
 with the mediation affairs. 
 Paul. — The Secretary of State of the United States. 
 Pierre. — The Government of the United States. 
 Charles. — Mr. le Comte de Montferrand. 
 Felix. — Mr. Suarez. 
 
 Acte. — Programme of the " Credit Industrie!." 
 Tibarvel. — Credit Industriel. 
 Un. — English Government. 
 Deux. —French Government. 
 Washington, February 18, 1881. 
 
 FRANCO de P. SUAREZ. 
 
 No. 431. 
 
 Mr. Suarez to Mr. Evarts. 
 
 - PANAMA, February 28, 1881. (Eeceived April 16.) 
 Hon. William M. Evarts, 
 
 Secretary of State, Washington, D. G. : 
 Sir : I received so late on Friday, the 18th, the reply from the " Cre- 
 dit Industriel " to my cablegram of the 17th, that I had no time to have 
 the honor of seeing you before my departure for Peru. 
 
 Consequently I was obliged to start off, leaving at New York, in the 
 hands of my colleague, Mr. le Comte de Montferrand, a brief note ac- 
 
704 AFFAIKS IN CHILI, PEEU, AND BOLIVIA. 
 
 knowledging the receipt of your confidential letter dated the 17th, at 
 the same time inclosing copies of my dispatch, of the answer from the 
 "Credit Industriel" and of a private communication of Mr. A. Guil- 
 laume, president of the French-Peruvian bondholders' committee, in 
 order to prove to you that I have nothing hidden from you, and that it 
 is my earnest intention to act, while in compliance with the instruc- 
 tions of the "Credit Industriel." in perfect accord with your govern- 
 ment, in order to facilitate the promptest restoration of peace in the 
 South Pacific. 
 
 You may then be assured that I will devote my best efforts to secure 
 success to your policy and lend all possible assistance towards restoring 
 peace and harmony among the sister republics, and to promote, on new 
 and quite solid bases, with the moral aid and support of the United 
 States, the development and prosperity of the South American repub- 
 lics. 
 
 It now only remains for me to renew my sincere thanks for the frank 
 hearing you have kindly tendered to me, and for the generous support 
 you have thought just and proper to lend on behalf of the interests I 
 represent. * 
 
 Be pleased to accept, sir, the renewed assurances of my high esteem 
 and most distinguished consideration. 
 
 FEAXCO. de P. SUAEEZ. 
 
 No. 432. 
 Mr. Suarez to Mr. Blaine. 
 
 Panama, March 1, 1881. (Eeceived March 18.) 
 
 Sir : I beg leave to call your attention to the papers which I have 
 lately transmitted to the State Department in reference to the appeal 
 addressed to the Government of the United States by the foreign cred- 
 itors of Peru, and to the- financial aid tendered by the "Credit Indus- 
 triel" to that republic, on their according with the existing contracts 
 between said "societi" and the Peruvian Government. 
 
 The attitude assumed by the United States on this occasion may not 
 have been so strong and decisive as that demanded by the paramount 
 interests at stake, but it must be remembered that the administration 
 now yielding up the reins of government to that of President Garfield, 
 could naturally do nothing which might hamper the action of its suc- 
 cessor. 
 
 But the main question remains still the same, and it is due to the 
 high mission of the United States in the western hemisphere to settle 
 it for the benefit of liberty and civilization. 
 
 I do not doubt therefore that your government will readily indorse 
 and further the wise policy initiated by your predecessor, and that you, 
 Mr. Secretary, will endeavor to illustrate the new administration with 
 the indelible glory of putting an end to the unhappy era of civil and 
 fratricidal wars, which, opposing an insuperable barrier to the welfare 
 and advancement of the South American republics, constitute at the 
 same time a permanent danger to republican institutions and a cause of 
 obstructions to universal commerce. 
 
 By this laudable course the Government of the United States will 
 perform a twofold benefit ; at once aiding the cause of peace and prog- 
 ress and by assisting those whose material interests are at stake, it 
 will also win their applause and sympathies to your government as 
 their natural friend and support ; while, on the other hand, by pre- 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 705 
 
 venting the ruin and dismemberment of two lesser republics, your 
 government will highly prove to the whole world that the dangerous and 
 immoral doctrine, "might makes right," is not recognized on American 
 soil. , 
 
 I do hereby confirm the offers made by the " Credit Industriel," and I 
 do also solemnly declare that this " societi" is ready to execute all en- 
 gagements which may be imposed upon it by the desired treaty of 
 peace, so far as they may be consistent with the basis of the financial 
 and commercial programme submitted to the State Department, or with 
 such modifications as the actual situation may render necessary, pro- 
 vided same modifications be consented to by the " Credit Industriel." 
 
 As I have left for Lima to participate in person in the negotiations 
 tending towards the restoration of peace, I beg to inform you that 
 during my absence, my colleague, Mr. le Comte de Montferrand will re- 
 main charged with the official representation of the " Credit Industriel" 
 at Washington, and should this gentleman absent himself, Eobert E. 
 Eandall, esq, will then act as the authorized medium between the 
 Government of the United States and the "Soci6t6 General de Credit 
 Industriel et Commercial," of Paris, for all negotiations connected with 
 that corporation in the financial or commercial arrangements which 
 may bring about the wished for mediation of the United States be- 
 tween Peru and Chili. ggg$ 
 
 I avail of the occasion to send you, Mr. Secretary, the assurances of 
 the high consideration with which I have the honor to subscribe my- 
 self, sir, 
 
 Your obedient servant, 
 
 EEANCO. de P. SUAEEZ. 
 
 No 433. 
 Mr. Suarez to Mr. Blaine. 
 
 PANAMA, March 1, 1881. (Eeceived March 22.) 
 
 Sir : Public opinion designates you, for your ability, firmness, and 
 integrity, to take the helm of foreign affairs under the incoming admin- 
 istration. 
 
 What I have learned about you, sir, authorizes me to believe that, 
 whether in the Irigh post of Secretary of State or in "the private councils 
 of your honorable friend, General Garfield, your voice will always be 
 heard in favor of right and justice. 
 
 I >evoting myself to-day, at the indication and with the support of the 
 "Society General de Credit Industriel et Commercial," to save two 
 lesser republics from ruin and humiliation, I do not hesitate to appeal 
 to you, sir, to lend your valuable assistance in order to secure an hon- 
 orable and lasting peace between Chili, Peru, and Bolivia. 
 
 Even when the actual conflict is over, social, political, and commercial 
 questions of the highest import have to be conciliated on the South 
 Pacific coast, and no opportunity could be more favorable than the 
 present one to settle them to the honor and advantage of American 
 interests. 
 
 I could say nothing on this subject that your acknowledged intelli- 
 gence has not yet carefully studied and mastered. 
 S. Ex. 79 45. 
 
706 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 All naturally presume that you mean to follow in the path traced for 
 all true patriots by the fathers of American Independence, and that, in 
 regard to the foreign policy of the United States, you will stand firm 
 by the principles advocated by Jefferson and Monroe. 
 
 Thus, sir, you cannot remain indifferent to this appeal, and it would 
 be productive of the liveliest satisfaction to the very powerful corpora- 
 tion I represent and, of course, to myself, if your influential interven- 
 tion be employed towards bringing about the mediation of the United 
 States on behalf of Peru and Bolivia, and protecting them against the 
 unjust and tyrannical pretensions of a merciless foe. 
 
 Should you require any further and detailed information referring to 
 the above matter Mr. le Comte de Montferrand, my colleague, or, in his 
 absence, Eobert E. Randall, esq., will readily afford you the same. 
 I take the opportunity to assure you, sir, &c, 
 
 FRANCO. DE P. SOAREZ. 
 
 No. 434. 
 
 Count de Montferrand to Mr. Hitt. 
 
 ["Translation, j 
 
 Legation oP France. 
 Port-tiii-Prince, Haijti, April 22, 1881. (Received May 6.) 
 
 Mr. Assistant Secretary : You were pleased to authorize me to 
 remain in communication with you on the subject of the proposals 
 made by the " Credit Iiidustriel et Commercial," with a view to facili- 
 tating the conclusion of financial arrangements between Chili and 
 Peru. 
 
 On the occasion of the interview which job* we're pleased to procure 
 for me with Mr. Blaine on the 2d instant, I stated tk&t, the Industrie]! 
 Credit, or the "Societe" du Pacifique," which is the" ©Wteome thereof, 
 was ready to discuss any modification that aught be thoVf'gfet proper in 
 the programme originally proposed. In the conferences "which I had 
 with you, either before -or after the audience with Mr. Blaine,- 1 went 
 so far as to add that the case might arise' in which the Pacific' Com- 
 pany might be called upon to work, eves' for- the account of Chiliy the 
 territories ceded or given as a pledge by this treaty of peace that should 
 be concluded, and that to the greatest advantage of Chili. 
 
 This view of the case was cordially shared at Paris, as is shown by 
 the letter herewith inclosed. The managers ©f the Pacific Company 
 say in that letter (see last paragraph) : 
 
 Ai the interests which we represent are not exclusively those of any of the countries 
 bflttaged in the war, our desire is to maintain, as far as possible, the most friendly re- 
 lations with both Pern and Chili. To this end we have sent M. de Lacretelle to rep- 
 resent us near the latter government, and he sailed a few days since for Valparaiso &c. 
 
 This letter bears date of March 11. I shall be grateful' fo> you if you 
 will return it to me ; nevertheless, should you need to retain it, in order 
 to furnish positive evidence, either to Mr. Blaine or to Mr. Martinez, 
 that the Pacific Company is disposed to lend its co-operation to- Chili as 
 well as to Peru, I am willing that you should do so, notwithstanding its 
 personal character. 
 
 This must put an end to all apprehensions lest one country may be 
 favored in preference to another by an indorsement of our prografl*ine. 
 
 I do not insist upon the solidity of the co operation offered by the 
 Pacific Company. That point is beyond discussion. I desire, hewever r 
 
AFFAIKS IN CHILI, PERU, AND BOLIVIA. 707 
 
 respectfully to inquire whether you do not think it would be well to in- 
 duce Mr. Blaine to give to the United States minister at Valparaiso in- 
 structions similar to those given by Mr. Evarts to Mr. Christiancy. 
 
 Be pleased to present my respects to Mr. Blaine, and to accept the 
 assurance of my high consideration and of my gratitude for your very 
 kind courtesy. 
 
 CH. deMONTFERRAND. 
 
 [Inolosure — translation. ] 
 
 [Compagnie Financiers et Commerciale tm Facinque; Society anonyme an capital de 30 millions 
 Siege Social, 66 rne de la Chaussee d' An tire. Bureaux Provisoires, 70 bis rne de la Viotoire.] 
 
 Paris, March 11, 1881. 
 
 Sir: The president of the General Industrial and Commercial Credit Company has 
 advised us of your speedy departure from New York for Hayti. 
 
 We are instructed by the board of the Financial and Commercial Pacific Company 
 to thank you for your intelligent and enlightened co-operation. 
 
 We hope that the mission which has been entrusted to you will tend to diminish, to 
 a certain extent, the difficulties with which we have to contend in America. 
 
 Since the latest dispatches received by you, arrangements appear to have been made 
 between France, England, and Italy, the governments of which countries are disposed 
 to unite their efforts for the protection of the interests of their subjects engaged in the 
 Chilo-Peruvian question. 
 
 Instructions in this sense have been sent by these countries to their representatives 
 in South America. Although Germany has not yet seen fit to take part in this move- 
 ment, this reserve must be attributed to the ignorance of that government concerning 
 the attitude to be assumed by the United States. That attitude, sir, is better known 
 to you than to any one else. A resume thereof , is, moreover, contained in the last letter 
 addressed to you by Mr. Evarts, the late Secretary of State, a copy of which you have 
 sent to us. We, therefore, hope that, in view of the favorable disposition which ap- 
 pears to have been manifested by the United States towards the financial programme 
 of the Industrial Credit, Germany will decide to abandon the expectant attitude which 
 she has thus far maintained, and that she will consent to take joint action with the 
 other continental powers. 
 
 As the interests which we represent are not exclusively those of any of the countries 
 engaged in the war, our desire is to maintain, as far as possible, the most friendly re- 
 lations with both Pern and Chili. To this end we have sent M. de Lacretelle to repre- 
 sent us near the latter government, and he sailed a few days since for Valparaiso. 
 We have accredited him to the Messrs. Gautreau, oar general agents, who have an 
 establishment at Valparaiso, and one at Lima, and we have advised him of the de- 
 parture of M. de Snarez for the latter city, so that he may correspond with him, if 
 necessary. 
 
 Be pleased to accept, sir, the assurance of our most distinguished regard, 
 
 A. AUBRY, 
 L. Z. AAM, 
 
 Managers. 
 
 Count DE MONTFERRAND, 
 
 Director of the tank, Hayti. 
 
 No. 435. 
 Mr. Suarez to Mr. Blaine. 
 
 Confidential.] 
 
 Washington, May 3, 1881. (Received May 11, 1881.) 
 
 Sir: I have the honor to communicate that which I deem a most 
 
 important dispatch, which I received yesterday afternoon. As time 
 
 is an essential element, and as my principals in Paris request me 
 
 to make prompt answer as to the views and wishes of your government, 
 
708 APPAIES IN CHILI, PEEU, AND BOLIVIA. 
 
 will you kindly advise me what answer I shall make? The same will 
 be strictly confidential in regard to the disposition of the United States 
 to have the co-operation of the European powers in order to secure 
 peace on the "programme" I have had the honor to submit to the 
 State Department. 
 
 I avail myself, &c, 
 
 FEANC'O de P. STJAEEZ. 
 
 [Cablegram, dated Paris, May 2, 1881.— Translation.] 
 
 (Confidential.) 
 
 To Stjarez, care French Legation, Washington : 
 
 1 (i. e., French Government) ; 2 (English Government) ; Italy, probably, and Ger- 
 many will act in concert if 3 (i. e., American Government) will make overtures to- 
 them. Conditions to have regard to financial interests and contracts of 6 (Credit In- 
 dustrial ). Reply by cable, with address. 
 
 GUILLAUME. 
 
 [Cablegram, dated Paris, May 2, 1881.] 
 
 (Confidential.) 
 
 To Suarez, soins Legation, France, Washington : 
 
 1 (i. c, French Government), 2 (i «., English Government), Italie, probablement 
 Allemagne Marcheront si ; 3 (i. e., American Government), lenr fout des ouvertures. 
 Conditions respecter interets creanciers et contracts; 6 (t. e., Credit Indust riel ). Reponso 
 telegraphique, avec adresse. 
 
 GUILLAUME. 
 
 No. 436. 
 
 Mr. Suarez to Mr. Blaine. 
 
 Private.] 503 Thirteenth Street, Northwest, 
 
 Washington, D. C, May 28, 1881. (Eeceived May 31, 1881.) 
 
 Sir : I have the honor to inclose to you a duplicate of my letters of 
 credence to your predecessor, the Hon. W. M. Evarts. 
 
 My colleague, Mr. le comte de Montferrand, having been called 
 abroad to fulfill another mission, 1 have remained here in sole charge 
 of the commission therein referred to. 
 
 I take this occasion most respectfully to call your attention to the 
 confidential letter addressed to me by the Hon. Mr. Evarts, dated on 
 the 17th of last February, relating to the programme submitted to your 
 Department by the Credit Industrial, and expressing his impartial 
 views on the subject. 
 
 Circumstances have made its adoption more imperative, and your 
 favorable action will surely meet with the approval and support of all 
 the European powers whose subjects' interests are at stake, and of the 
 belligerents themselves, who are longing for peace, and will heartily 
 welcome it as a blessed boon. 
 
 I beg to renew you, sir, the assurances of my highest consideration. 
 
 FBANC'O de P. SUAEEZ. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 709 
 
 Mr. Durrien to Mr. Evarte. 
 [Translation.] 
 
 Societe Generale db Credit Industriel et Commercial, 
 
 Park, December 29, 1880. 
 Sir : We have the honor to accredit to you the Count de Montfeirand and Mr. F. de 
 P. Suarez, whom we have directed to repair to Washington to treat with you upon 
 the subject of the part which we are to take in the financial and commercial arrange- 
 ments which may be consequent upon the mediation of the Government of the United 
 States between Peru and Chili. 
 Be pleased to accept, &c. 
 
 H. DURRIEN, 
 
 President. 
 
 Mr. Durrten to Count Monlferrand and Mr. Suarez. 
 
 [Translation] 
 
 (Sooiete Generale de Credit Industriel et Commercial, 66 roe de la ChausBee d'Antin et 72 rne de la 
 
 Yiotoire.l 
 • 
 
 Paris, December 29, 1880. 
 Gentlemen : A dispatch which we have just received from the United States re- 
 quests us " to authorize our delegates to submit to the secretary of state for foreign 
 affairs the financial and commercial programme which is designed to serve as a basis 
 for the mediation of the United States between Peru and Chili." 
 
 We thought that the letter addressed to Mr. Randall would be sufficient to make 
 known our views on this subject, and that, at all events, the powers which are in your 
 possession fully authorized you to submit, in our name, to the United States Govern- 
 ment the declaration which it seems to desire. 
 
 Nevertheless, we now, for the purpose of meeting every emergency, reconfer 
 upon you the powers already given, and authorize you to make, in our name, any offi- 
 cial communication to the Government of the United States relative to our interven- 
 tion as regards the carrying out of the programme of mediation of which we have 
 sent you a copy. 
 
 Be pleased to accept, gentlemen, the assurance of our distinguished consideration. 
 
 H. DURRIEN, 
 
 President. 
 To Count de.Montferrand and Mr. F. de P. Suarez, 
 
 Washington: 
 
 Ho. 437. 
 Mr. Sitt to Count Mont/errand. 
 
 Washington, June 10, 1881. 
 
 Dear Sir : Tour interesting letter of the 22d April, arrived during 
 my absence from the country on a short visit to Paris, and I fear that the 
 delay in responding to it may have created in your mind an impression 
 that your communication had been neglected. 
 
 The information you communicate in regard to the disposition and 
 purposes of the Pacific Company, as fully shown in the letter of their 
 administration accompanying your own, agrees with the statements 
 made by you at Washington, and their intention of maintaining friendly 
 relations with both Peru and Chili is manifest. I am so recently arrived 
 that I have not yet had opportunity to discuss the questions which are 
 the subject of your letter with either the Secretary of State or the 
 representatives of those countries. I will, however, take pleasure in 
 -calling the attention of Mr. Blaine to the suggestion made at the con- 
 
710 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 elusion of your letter in regard to the advisability of the instruction you 
 indicate for our representative at Valparaiso. 
 
 Please accept the assurances of my high considerations &c, 
 
 ROBERT E. HITT, 
 
 Assistant Secretary. 
 
 P. S. — I inclose to you, in accordance with your request, the letter 
 from the administrators of the Pacific Company to yourself. 
 
 No. 438. 
 
 Mr. Suarez to Mr. Blaine. 
 
 1334, G Street, Northwest, 
 Washington, D. C, December 5, 1881. (Received December 16.) 
 
 Sir : I beg you, before you lea^e the Department of Foreign Affairs,, 
 to have the kindness from sending to me an answer in writing to the pa~ 
 pers I have had the honor to address to your department on the ChUo- 
 peruvian question. 
 
 On making this request, I beg leave to call your attention to the fol- 
 lowing facts, namely : 
 
 1st. That the company I represent is the only one which has not de- 
 serted Peru in her hours of distress. 
 
 2d. That said company is the only one, having strong connections 
 with high standing American houses for the management and sale of 
 the Peruvian guano and nitrate in all the markets of the world. 
 
 3d. That said company is the only one which has appealed for aid 
 and comfort from the Government of the United States, as the regular 
 and natural protector of European interests in America. 
 
 In accordance with these views, a financial programme was respect- 
 fully submitted by the company to the State Department since January 
 last, and as I have had the occasion to state to you, such programme 
 justly received the approval of your predecessor, the Hon. W. M. 
 Evarts, who kindly recommended to the consideration of the American 
 ministers at Lima, and at Santiago. 
 
 Said company still maintains its programme, and it is ready to exe- 
 cute it, subject, however, to the modifications required by the actual 
 condition of affairs, and as it will be determined in the long- wished for 
 treaty of peace. 
 
 It is the only way to conclude a rational adjustment of the difficulties 
 existing existing between Chili and Peru. 
 
 It is the only way to bring about an honorable and permanent peace 
 between the belligerent republics. 
 
 It is well known to-day that the unhappy conflict risen up between 
 Chili, Peru, and Bolivia has simply been a wild struggle for business, 
 a mere commercial speculation in which many financial societies have 
 gone in as a stockjobbing enterprise, with the well-defined intention of 
 securing to an Anglo-Chilian association the management and control 
 of the guano and nitrate business to the prejudice of other parties,, 
 holding previous claims on the same, by virtue of legal contracts 
 entered into with Peru, and in which, as I have stated, respectable 
 American houses are directly interested. 
 
 Finally, said company, earnestly hopes that the Government of the 
 United States will agree to act in this affair as "international trustee'' 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 711 
 
 in order to afford to the whole world the security that the engagements 
 taken by the company, and by all the parties to the treaty of peace, will 
 be strictly and faithfully executed. 
 
 Tour reply, sir, will be on your part an act of justice as well as of 
 benevolence to me, and it will permit me to prove to my principals that 
 I have done my duties, to the best of my ability, toward them and 
 toward Peru. 
 
 I take this occasion, sir, to renew to you the assurances of my most 
 distinguished consideration. 
 
 FRANCO de P. SUAEBZ. 
 
 No. 439. 
 
 Senor Suarez to Mr. Frelinghiiysen. 
 
 Private.] 1334 G Street, Northwest, 
 
 Washington, January 13, 1882. (Eeceived January 16.) 
 
 Sir : I beg leave to call your attention to my private correspondence 
 with your Department on the existing difficulties between Peru and 
 Chili, and, most especially, to the financial programme submitted to the 
 Department of State by the company I have the honor to represent. 
 All the papers concerning the same are on file at the Department of 
 State, and you will easily see by their contents that it is calculated to 
 further an honorable and reasonable adjustment of the pending ques- 
 tions. 
 
 It seems unquestionable to me that the earnest desire of your govern- 
 ment is to prevent, so far as possible, the violent dismemberment of 
 Peru, and that all its efforts, are directed toward friendly bringing 
 about an honorable and lasting peace between the belligerent republics. 
 
 It is equally true, in my humble opinion, that so noble a purpose 
 could never be realized, unless Peru is so properly assisted as to be 
 enabled to meet all her national standing obligations. 
 
 Infact, whil e victory has vested upon the conqueror certain rights which 
 must be respected, without sheer injustice or unnecessary humiliating 
 sacrifices to the conquered, it is not to be forgotten that there are, on 
 the other hand, solemn pending engagements, previous to the present 
 war, contracted by the Peruvian nation toward her foreign creditors. 
 
 The re-establishment of constitutional order, and the recognition of 
 Admiral Montero by the whole of Peru as President of the Republic — 
 both being facts of the highest importance, indeed, and both, it is just 
 to say, mainly brought about by the wise, firm, and thoroughly Ameri- 
 can policy pursued by General Hurlbut— offer to the Government of 
 the United States the most brilliant occasion, 
 
 To perform the office of a friend to all the parties in this unhappy conflict ; to carry into effect 
 that friendly intervention, by which Peru might be enabled xo meet the conditions which would 
 probably be imposed, and to use its influence solely in the interests of an honorable and last- 
 ing peace. 
 
 To render easier and more practical the solution advocated by the 
 Government of the United States, has been the main object of the finan- 
 cial programme herein referred to. 
 
 This programme is not a wild scheme, founded on fabulous litigious 
 or spurious claims, set forth by an unknown syndicate. 
 
712 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 The said company has nothing to do with the national politics of 
 any of the belligerent powers, and it is not its intention to monopolize 
 to its own advantage any special trade, in opposition to the rightful 
 interests of universal commerce. Indeed not. 
 
 The " Soci^te" G6n6rale du Credit Industriel et Commercial " and their 
 assignees the " Oompagnie Financiere et Commercial du Pacifique," of 
 Paris, are both respectable and powerful companies, regularly organized. 
 They represent a large majority of the creditors of Peru, and they have 
 at their command all the financial resources required for the faithful 
 fulfillment of any engagements they may undertake under the above- 
 mentioned programme. 
 
 Allow me, sir, to complete this statement by adding that the lega- 
 tion of the United States, in France, can forward to your department 
 whatever information you may deem necessary concerning the financial 
 standing of said companies, about the legal character of their well- 
 established rights, as well as in regard to the high honor of their boards 
 of directors, and to the commercial importance of all the banking houses 
 connected with the same. 
 
 Briefly, these companies are not looking after monstrous or imprac- 
 ticable contracts. On the contrary, their only aim is to protect the 
 rights of the Peruvian creditors and their legitimate and long-estab- 
 lished claims to priority on the guano and nitrate deposits of Peru 
 against any treaty obligations between the belligerent republics tend- 
 ing to impeach those rights and claims, as it seems to be involved in 
 the monstrous pretensions set forward by Chili under the inadmissible 
 principle that " might is right." 
 
 Their programme and their honest expectations are founded on valid 
 and solemn contracts, entered into long ago with the Peruvian Gov- 
 ernment for the management and working of the guano and nitrate 
 deposits belonging to Peru, and regularly and specially pledged to her 
 national creditors. 
 
 Moreover, Peru, whose national interests are at stake, has a para- 
 mount right to be heard on this momentous question, and should you 
 deem proper to make some inquiries on the subject, the Hon. I. Federico 
 Elmore, minister of Peru at Washington, will readily transmit you all 
 necessary information concerning the legally binding contracts exist- 
 ing between Peru and the " Compagnie Financiere et Commerciale du 
 Pacifique," in whose behalf have been duly transferred all the privileges 
 and rights granted by previous contracts entered into with the " Soci6te" 
 G6n6rale de Credit Industriel et Commercial " of Paris, and with the 
 " Peruvian Guano Company, Limited," of London. 
 
 To-day this company (Compagnie Financiere et Commercial du Paci- 
 fique), on the faith of its contracts, and with the expressed consent of 
 Peru and of her creditors, steps forward and declares itself ready to 
 take charge of the payment of the war indemnity due to Chili, subject 
 to the conditions stated in its programme. 
 
 This programme has been carefully prepared, and it is intended to 
 provide, in a fair and equitable proportion, for the pecuniary obliga- 
 tions previous to the present war, and for those which would probably 
 be imposed on Peru, as the price to be paid for peace, namely: 
 
 1. The payment to Chili of a reasonable war indemnity. 
 
 2. A royalty to Peru. 
 
 3. The service of the Peruvian foreign loans. 
 
 4. The service of the Peruvian nitrate bonds. 
 
 5. The payment of Dreyfus's credit. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 713 
 
 6. The redemption of any other pending claims duly and legally 
 settled and recognized by the Government of Peru. 
 
 Now, then, in order to avoid misunderstandings and abuses of any 
 kind whatever, the " Oompagnie Financiere et Commercial du Pacifique" 
 proposes to conduct the Peruvian guano and nitrate business under 
 the trusteeship of the Government of the United States, and at the 
 same time under the immediate control of a special committee, whose 
 members shall be appointed by the Governments of Peru and Chili, 
 and by the Peruvian creditors representing the guano and nitrate 
 debts of Peru, and having adhered to the foregoing programme. 
 
 This arrangement will impart to the company the character of an 
 international corporation, and afford to all parties the strongest security 
 in regard to the strict and faithful execution of the contracts, which 
 are the legal foundation of said programme. 
 
 But, as you will very easily understand, a European company can- 
 not undertake to fulfill so serious engagements unless the immense in- 
 terests entrusted to their care and management, should be duly pro- 
 tected against alt future complications. 
 
 Now, then, bearing in mind the official declarations lately made by 
 your government, it will be unwise to expect that protection without 
 the moral guarantee of the United States, under the form determined 
 in my communication, dated December 5, 1881, and more fully stated 
 in the present one. 
 
 The adoption of said programme will afford to Peru the means for 
 preserving her territorial integrity, and at the same time it will satisfy 
 Chili in regard to the payment of the war indemnity. 
 
 Our combination will secure besides to the Peruvian treasury a 
 sufficient income to provide for the expenses of the national govern- 
 ment, and to develop slowly but surely the natural resources of the 
 republic. 
 
 Said combination will, furthermore, give full satisfaction to all the 
 Peruvian creditors, as it will undoubtedly constitute the strongest 
 guarantee they could have for the maintenance and protection of their 
 indisputable rights over the guano and nitrate deposits oil Peru. 
 
 The object of this financial programme being to facilitate the accom- 
 plishment of the noble purposes fostered by the Government of the 
 United States I beg leave to renew to you my requests, in order to duly 
 inform my principals on the subject. 
 
 The spirit and letter of the official dispatches, dated June 15, 1881, 
 containing the instructious given to the ministers of the United States 
 to Peru and Chili, do not leave the least shadow of a doubt in regard 
 to the nature and tendencies of the friendly efforts of your government 
 toward restoring peace on honorable and just terms between Chili and 
 Peru. 
 
 The instructions to General Hurlbut say : 
 
 If you can aid the Government of Peru in securing such a result you will have ren- 
 dered the service which seems most pressing. Whether it is in the power of the Peru- 
 vian Government to make arrangements at home or abroad, singly or with the assis- 
 tance of friendly powers, which will furnish the necessary indemnity or supply the 
 required guarantee, you will be better able to advise me after you have reached your 
 post. 
 
 And further on : 
 
 If, upon full knowledge of the condition of Peru, you can inform this government that Peru 
 can devise and carry into effect a plan by which all the reasonable conditions of Chili can be 
 met without sacrificing the integrity of Peruvian territory, the Government of the United States 
 mil be willing to tender its good offices toward the execution of such a project. 
 
714 affairs in chili, peru, and Bolivia. 
 
 While, in his instruction to General Kilpatrick, the honorable Secre- 
 tary of State, earnestly recommends to the late American minister at 
 Santiago : 
 
 In any representation which you may make, you will say that the hope of the United State* 
 is that the negotiations for peace shall he conducted, and the final settlement between the two- 
 countries determined without either side invoking the aid or intervention of any .European 
 power. 
 
 Contrary to these declarations, the honorable Secretary of State, in a 
 later dispatch to General Hnrlbut, dated 19, 1881, peremptorily as- 
 serts: 
 
 However trustworthy the Credit Industriel may be, I did not consider it proper for 
 the Department to have anything whatever to do with it. It is a foreign corporation, 
 responsible to French law, and most seek its patronage and protection from France. 
 
 At the same time it is no part of your duty to interfere with its negotiations with 
 the Peruvian Government. If it can be made an effective instrumentality to aid that 
 unhappy country in its prostrate and helpless condition, it would be nngenerons and 
 unjnst to obstruct its operations. 
 
 This assertion, so widely opposed to the emphatic declarations em- 
 bodied in the official instructions given to the United States ministers 
 at Lima and Santiago, goes to prove how important it is for the due 
 protection of my principal's rights to know at your earliest convenience, 
 the views of your Department in regard to their programme. 
 
 My request is entirely in accordance with the formal declarations of 
 your Department. 
 
 To lend its mqral support to a programme accepted by Peru and by 
 a large majority of her creditors, and to agree to act as "international 
 trustee" in its faithful execution, cannot be objected to on any ground 
 whatever. 
 
 Such course on the part of the United States, far from being consid- 
 ered as an uncalled for interposition, will be most assuredly welcomed 
 and supported by all parties as the only practical means to preserve 
 peace and order, and, therefore, to promote progress and prosperity 
 among the South American republics. 
 
 The Government of the United States, having openly declared its in- 
 tention not to lend its consent "to the aid or intervention of the European 
 powers in the final settlements of American disputes," has assumed ipso- 
 facto the imperative duty of protecting European interests against any 
 dangers or risks arising from the yet unsettled political condition of the 
 Spanish American republics. 
 
 Otherwise, as I have stated before, it will become a most pressing 
 duty on the part of the European powers to lend to their own national 
 interests all necessary aid and protection, without the Government of 
 the United States having a right to protest against a course which its 
 own action will entirely justify, and which simply aims at the peaceful 
 development of universal commerce without interfering in any way with 
 the political institutions of the New "World. 
 
 You must bear in mind that the action of the United States repre- 
 sents a very important factor in the solution of all South American 
 questions, and my principals, therefore, having considerable interest at 
 stake, desire to know (so far as you may deem proper) the views of 
 your government, in order to regulate according to them their own 
 course in their financial arrangements with Peru and Chili concerning 
 the payment of the war indemnity and the fulfillment of all other pecu- 
 niary obligations specified in the herein-mentioned programme. 
 
 I entertain, therefore, the earnest hope that your government will 
 kindly recognize the justice of my request, and, consequently, that it 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 715 
 
 will equally agree with me on the expediency of " tendering its good 
 offices toward the execution of such a project," thus contributing to the 
 early conclusion of a treaty of peace in that spirit of equity, amity, and 
 concord so highly recommended by your government in its official in- 
 structions and dispatches to the ministers of the United States to Peril 
 and Chili. 
 
 I take this occasion, &c, 
 
 FEANCO. DB P. SUAEEZ. 
 
 No. 440. 
 [Translation,] 
 
 Note on the Peruvian loans and on the possible solution of past contracts 
 by " The Financial and Commercial Company of the Pacific." 
 
 The loans contracted in Europe by Peru amount to : 
 
 
 Loans. 
 
 Interest. 
 
 Amortization. 
 
 Issue at B per cent., 1870, exacted annually 
 
 £11, 920, 000 
 .23, 215, 000 
 
 £673, 200 
 1, 160, 750 
 
 £236, 400 
 464, 300 
 
 
 Total 
 
 *35, 135, 000 
 
 1, 833, 950 
 
 702, 700 
 
 
 
 
 
 
 tJ2, 536, 650 
 
 
 
 
 * P78.375.000 francs. 
 
 1 63,416,250 francs. 
 
 t Loaned Pisco to Pea nominally of £290,000, on which £25,320 is amortized. 
 
 Prom the very text of the title deeds it results incontestably that all' 
 the revenues of the republic, created or to be created, and specially the 
 deposits of guano have been hypothecated to form a guarantee of these 
 loans. 
 
 A subsequent decree (November 14, '73) not only confirms this hypoth- 
 ecation, but gave it also a practical sanction by granting to the holders 
 of the deeds the right to charge the quantity of guano sufficient for 
 the guarantee of payment of the interest and the amortization of their 
 bonds. And, finally, a diplomatic circular, dated January 11, 1876, 
 added to the guarantee of the guano a special assignment on the prod- 
 ucts of the nitrates. 
 
 The prospectuses of emission declare that there are sold annually at 
 least 500,000 tons of guano in the markets of Europe and the colonies, 
 specially reserved for the subscribers, and, thanks to the monopoly sys- 
 tem, the price of each ton was invariably £12 10s., which, less the ex- 
 penses, interest, and commission (about £5 10s. per ton), leaves a net 
 annual product of £3,500,000, say, for the service of the debt £2,536,000, 
 assigning to the government for its share the sum of £964,000, say, 
 about £2 per ton, cash. 
 
 The success of the guano of Peru did not prevent the existence of an 
 interloping industry, and soon agriculture was solicited by manufact- 
 urers of intermediate chemical manures (phospho-guano and others), 
 often, with little scruple, offering their productions at lower prices. These 
 speculators, by a kind of deception of the eye, assimilated their pro- 
 ductions to guano, declaring that they contained, the same elements as 
 the latter, taking good care to add that guano is so complete in itself 
 that it cannot be artificially composed. 
 
716 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 This competition, to which may be added in a large proportion that 
 of the nitrate, resulted in diminishing the sum total of the sales of 
 guano, but not being able at first to modify the price, inasmuch as the 
 elements constituting this manure were really offered to the agricultu- 
 rist at a lower price than that of the chemical composts. As to 'the 
 sum of the sales of guano, their decline stopped, and the sum of the 
 sales seemed definitely fixed at about 300,000 tons annually. 
 
 With a sum of sales of 300,000 tons instead of 500,000, the Peruvian 
 Government could not keep its engagements, even supposing (which it 
 could not bring itself to for fear of internal complications) it should 
 abandon the personal revenue which it had always reserved from the 
 product of this manure. It proposed then to its creditors to accept a 
 reduction of their interest to 3 per cent., in order to balance the ex- 
 penses and the receipts, allowing to itself a royalty sufficient for its 
 necessities of £700,000 annually. 
 
 On the other hand, it offered them, by an official circular of January 
 11, 1876, to add to the guarantee of the guano, that of the nitrate. 
 
 An arrangement was made on these bases, which was accepted by 
 the bondholders on the 10th of June, 1876, and regulated by a law of 
 Congress of February 3, 1877. It was moreover agreed that the new ar- 
 rangement should not be taken up until after the 1st of January, 1879, 
 in order to leave Peru time to liquidate other debts already in litiga- 
 tion. 
 
 Unhappily, a new fact was to render unrealizable all the promises 
 made, and even to place the guano trade in very unfavorable condi- 
 tions to the interests of agriculture. 
 
 While the sale of guano had been monopolized, the price had been 
 uniformly held at £12 10s. per ton, and the seller should, as much to 
 .get this price as to maintain his customers, whose patronage was so- 
 licited by the counterfeit articles, by exercising a rigid inspection, form 
 a mixture of the different qualities, so as to obtain a uniform standard 
 invariably g6od and acceptaDle to the consumer, who, in case of error 
 or deception, would know then to whom to apply for redress. 
 
 Comprehending badly this situation, or hoping to sell more by chang- 
 ing the previous system, the Government of Peru destroyed the mo- 
 nopoly, and agreed that the guano should be sold by analysis, as a 
 fabricated chemical composition. 
 
 The sales remained stationary, for even badly managed guano could 
 not fall in the estimation of the agriculturist by reason of its unique 
 qualities, but the prices fell from £12 10s. to £8 10s. 
 
 Beside, the mixture, which being no longer made by a single seller, 
 was tampered with by manipulators, who added foreign substances to 
 guano in order to augment their profits ; and, thanks to the multiplicity 
 of the new and irresponsible intermediaries, making the sales by three 
 or four hands, the baffled consumer no longer knew who to hold re- 
 sponsib le for the adulteration of which he had become the victim. 
 
 The result of this state of things was for the agriculturist the disap- 
 pearance of all guarantee, and for the bondholders the indefinite loss 
 of all revenue. 
 
 In view of the constant and well-founded complaints of agriculturists 
 and of her creditors, the Government of Peru was forced to recognize 
 the grave error they had committed in establishing competition upon 
 its own product — a competition which, beside having brought about a 
 decline in prices, had considerably augmented the expense of trans- 
 portation, warehousing, and other things. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 717 
 
 The Congress also voted on the 10th of October, 1879, a law which 
 authorized the liquidation of the last two contracts, in order to recon- 
 stitute the monopoly of the sale of guano, for the account and to the 
 profit of the Peruvian bondholders. 
 
 On this ground the understanding was so easy that they rapidly 
 reached a solution, and that a contract was concluded January 7, 1880, 
 between the commissioners of Peru and the Credit Industrie! et Com- 
 mercial, whose moral and financial co-operation had been solicited by 
 the committee of bondholders, and who had agreed to lend it on the 
 same basis of the decree of November 14, 1873. 
 
 But a revolution had occurred at Lima. Interpreting ill the inteution 
 of the Credit Industriel et Commercial, as well as of its colaborers, 
 which it considered as being hostile, from the sole fact that they had 
 concluded and defended a past contract with its political enemies, the 
 new chief of the Peruvian Eepublic suspended the execution of the con- 
 tract of January 7, 1880, under the pretext that the said contract bore 
 in certain clauses injury to the dignity of the state. 
 
 Explanations followed and a reconciliation took place, which settled 
 the questions in litigation (contracts of the 1st and 8th of February, 
 1881), by constituting the Compagnie Financiere et Commercial du 
 Paciiique, created by the Credit Industriel, first, trustee of the 
 Peruvian bondholders ; second, liquidator of the last consignees ; 
 third, exclusive vendor of guano, that is to say, conferring upon it 
 the rights and giving it the means to satisfy the legitimate claims of 
 the creditors and of agriculture, by the reconstruction of the monopoly. 
 
 In the interval which passed since the first decisions of the Peruvian 
 Congress there occurred a grave complication, that created by the war 
 between Chili and Peru. 
 
 Chili fearing that the negotiations commenced by Peru with the 
 Credit Industriel, supported by the bondholders, would only result 
 in restoring credit to her enemy, and consequently permitting her to 
 find resources to defend herself, commenced an urgent campaign, in 
 which, announcing the victory, it menaced with reprisals those who 
 should treat with Peru.' 
 
 The threats beins insufficient and to the end of securing public favor, 
 Chili, through means of her minister in Euiope, declared that it would, 
 do what Peru had never done, th^t it would re.spect the pledges of 
 the foreign creditors of that state, and it authorized the said creditors 
 to work the guano, under the sole reservation of paying a simple rent 
 to Chili, varying from £1 to £1 10s. according to the price obtained, 
 engaging even to this, that "in any agreement of price that might be 
 signed with Pern the government would endeavor by all means in its 
 power to guarantee the confirmation of this arrangement, its perma- 
 nency and its extension to all the guano deposits of Peru." (Public 
 declaration of Mr. Blest (ran a, minister of Chili in Europe, dated Jan- 
 uary 30, 1880, articles 1, 4, 6.) Tuis declaration was confirmed by a 
 decree dated February 7, 1880, promulgated the 25th of the same month 
 on the invaded territory. 
 
 English public opinion received these declarations and decree with 
 enthusiasm. On the continent they were more reserved and they 
 waited. They did well, for on the 10th of November, 1880, there ap- 
 peared a diplomatic circular already printed, in a less grand spirit of 
 generosity. It read, in fact, upon the subject of the conferences of Arica, 
 in which the attempt at mediation of the United States failed before 
 the Chilian demands. 
 
718 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 The cession of territory should include, on the part of the victorious country, the recognition 
 of all the hypothecated charges given by the Government of Peru in favor of the foreign,cred- 
 itors, and the rights of the bondholders over the guano products should be respected by the 
 reservation of a moderate royalty. 
 
 As it may be remarked it is no longer a question of the primitive sum 
 Imported of* £1 to £1 10s. per ton, but by an increase of precaution, 
 and in fine to prepare the mind for still greater pretensions, a new 
 diplomatic circular is issued the 24th of December, 1880, to determine 
 the exact bearing of the above- written phrase from the circular of No- 
 vember 10 : 
 
 This phrase has given rise to erroneous interpretations. * * * Some persons 
 have thought, without considering the peculiar circumstances, except in one ab- 
 solute manner and under a form of declaration of principle, the circular of Novem- 
 ber 10 served to define the rights of the creditors. * * » This phrase is the indi- 
 cation of a fact which should have been presented if the allies had accepted all the 
 conditions of which it made mention (conditions of peace proposed at Arica). « * * 
 Mais it did not constitute the recognition of a right, as some had supposed, * * * 
 The breaking off of the negotiations leaves things in their former state, so that the 
 rights that certain persons could allege, and referring to the territory of Tarapaca, 
 would be regulated according to the rules of international law. 
 
 How does Chili interpret international law ? Is it conformably to 
 the principles admitted by French, English, or even Peruvian juris- 
 consults. 
 
 The annexing country is held to respect the real rights conceded by the dispossessed 
 £tate, on the territorial domain of which it becomes proprietor, if those rights have been 
 regularly acquired and maintained according to the existing laws. It finds itself in 
 regard to them in a position analogous to that of a third holder of real estate, hypothe- 
 cated or burdened with usufruct ; the annexor is even obliged to respect the personal 
 rights applicable to territorial domain and relative, for example, to their exploitation 
 by individuals. 
 
 Now see the last public declaration of the Chilian minister in Europe 
 concerning the guano deposits : 
 
 January 24, 1881. 
 My government, as a belligerent, holds the guano deposits situated on the coast of 
 Tarapaca, and in its quality of a sovereign state it has the right to dispose of said 
 gnano as it chooses. 
 
 On comparing these different documents it appears that the protes- 
 tations of respect for the rights of Peruvian bondholders made by 
 Chili at the beginning of the war have been but a weapon — a means of 
 ruining the credit of Peru and preventing her from finding resources ; 
 but to-day Chili dreams of but one thing, to appropriate exclusively the 
 rich conquered provinces in order to balance her budgets ; to redeem 
 the paper money with which she has deluged the country ; to recon- 
 struct a treasury of war for furthering her views of ambitious suprem- 
 acy. 
 
 As for the Peruvian creditors, she calculates not to preoccupy her- 
 self with them by objecting that she is not their debtor, which is true, 
 but forgetting the formal declaration of January 30, 1880, and the 
 incontestable rules of international law. 
 
 If the European powers remain indifferent to these facts and the 
 annexation of Tarapaca, the competition, more bitter than ever, will 
 begin again between the guano deposits of the north, which Peru will 
 sell through the " Compagnie du Pacifique," and the guano deposits of 
 the south, which Chili proposes to sell through some other commission 
 house. Now, we have explained what are and must necessarily be the 
 deplorable results of this competition as much for the Peruvian bond- 
 holders as for the agriculturist of the Old World. 
 
AFPAttS IN. CHILI, PERU, AND BOLIVIA. 719 
 
 The powers of Europe are thus forced to intervene to regulate! this 
 question ; but have they the right to do so f 
 
 The terms above stated, extracted from a conference of two eminent 
 ^French jurists, demonstrate that this right is formal, since Chili as the 
 annexing state is obliged to respect not only the hypothecations agreed 
 to by dispossessed Peru in favor of foreigners on the guano and nitrate 
 deposits, but also the personal rights of exploitation conferred upon 
 the " Compagnie du Paciflque," with a view of executing the contracts 
 made long before the beginning of the war. 
 
 As a first argument worth offering to Chili there are precedents 
 which she cannot ignore. 
 
 Spain, being at war with Peru, had seized, as Chili has just done, 
 the guano deposits of that state, but, respecting the rules of interna- 
 tional law, she acknowledged and allowed the execution of contracts 
 binding her enemies to foreigners, which gave rise to the following 
 document: 
 
 tDecree dated the Chinchos Islands, April 14, 1864.] 
 
 The fleet wili take possession of all the islands belonging to Peru and all the men- 
 of-war which should attempt to prevent this act. The guano actually found upon the 
 Chinchos Islands will be a guarantee for all sums advanced to the Government of 
 Peru by subjects of foreign nations, under the reservation that the debt has been rec- 
 ognized by the Peruvian Congress at an anterior date, and that the contracts have 
 received official sanction. 
 
 The foreign companies actually charged with the transportation of the guano mignt 
 continue on condition of reporting to the Spanish Government the number of tons ex- 
 ported from the day that the Spanish flag should be raised over the Chinchos Islands. 
 r Admiral PINZON. 
 
 It may be objected that intervention has no sanction but war, in case 
 of the refusal of satisfaction of the state toward which intervention is 
 
 'offered. 
 
 There is no such thing at least in this present case, as is proved by 
 the following fact which is of public notoriety. 
 
 Bv the terms of the above-cited decree of the 7th of February, 1880, 
 Chili allows several corporations, so called, representative of the cred- 
 itors of Peru, to export guano from the occupied deposits for sale and 
 distribution of the proceeds to the said creditors. 
 
 The so-called representatives of the bondholders have raised such 
 pretensions for their personal remuneration and for the pnvilege which 
 thev wish to exercise to that effect that it is to be feared that the pro- 
 ceeds of the guano, apparently destined for the creditors, will be squan- 
 
 T third person, M. Watson, a Peruvian bondholder, then applied to 
 the supreme court in London, in order to protect his interests and 
 those of other bondholders, by demanding a judicial sequestration (De- 
 
 ^ThfnJastefof 'rolls, acquainted doubtless with the Precedents of the 
 ,affair, acceded to the prayer of the plaintiff, and decided that all the 
 guano arrived or to arrive, in virtue of the Chilian decree, should be 
 sold judicially and their proceeds deposited with the court. 
 ' " The Chilian Government intervenes in the person of its representa- 
 tive in Europe, Mr. Blest Gana, and challenges the jurisdiction of the 
 tribunal in what concerns the acts of a sovereign state- 
 The master of the rolls dismissed the plea of the Chilian Government 
 ; , and declared that the guano, over and above the royalty of £1 to > £1 lUs 
 , claimed by Chili, belonged to the bondholders; the sentence of seques- 
 tration must take its course. 
 
720 AFFAIRS IN CHILI, PEKU, AND BOLIVIA. 
 
 This decision, given by a simple magistrate, established not only the 
 rights of the Peruvian bondholders, it has a much higher bearing ; it 
 points out the path to be pursued by the governments themselves, be- 
 cause, to give to their intervention a sanction without being obliged to- 
 use force, they have only to allow the action of their tribunals like that 
 of the master of rolls of the supreme court of justice in London. 
 
 In fact, upon the deposits' guano, like the nitrate, has no value; it 
 cannot be consumed. In order that the state or holder can reap the 
 same advantage, it is indispensable that it should offer them for sale 
 upon the markets of the Old World where the exhausted soil needs it. 
 
 Consequently, to oblige Chili to respect the rights of the Peruvian 
 bondholders and the execution of the contracts of the " Compagnie du 
 Pacifique," contracts which partially assure the payment of the loans, 
 and restore to the agriculturist the lost guarantees, it is sufficient for 
 the governments of Europe to declare to Chili that in a state of litiga- 
 tion created by a conflict between two sovereign states, they will per- 
 mit the sequestration of the guano by their courts from the arrival of 
 these manures upon the markets by confiding the sale to the liquidator 
 named by the debtor state itself; that is to say to the one who can 
 only pretend to really represent the creditors. 
 
 Another means not less efficacious offers .to the intervening states. 
 These are the difficulties of order, moral, financial, and political, which 
 generates on the markets of Europe the issue and quotation of all loans 
 based upon the embezzlement of pledges assigned to the European 
 creditors. 
 
 We comprehend what, in the actual situation of Chili, maybe the 
 threats of obstacles brought to the financial operations to which it must 
 necessarily have recourse. 
 
 There remains only one question to resolve. 
 
 If the governments of Europe have the right and the duty to protect 
 their nationals, if they have the means to render that protection effica- 
 cious, they can only decide so to do upon condition of respecting the 
 rights of others. 
 
 Now, it is evident that Chili, as the conqueror, has incontestable 
 rights to a war indemnity. 
 
 To what sum can this indemnity amount ? The examination of the 
 resources of Peru can alone decide ; for, whatever may be the expenses 
 of Chili and the damages she has sustained, their reparation is equita- 
 bly due only in a possible measure — this state was at liberty to engage 
 or not in a war which might close without compensation for it. 
 
 Besides the revenue from the guano, is Peru able to find solid re- 
 sources to satisfy the pretensions of Chili * 
 
 Assuredly not, for if at full peace the Peruvian Government could 
 not do without a tax upon the guano, at the risk even of bankruptcy, 
 with much greater reason after her military disasters, she could not 
 live — that is to say, maintain the order necessary to commercial trans- 
 actions which the whole world is interested in maintaining, except on 
 condition of receiving an annual royalty on this same guano, say at 
 least £1 10s. per ton. 
 
 It is hard to ask the Peruvian bondholders who have realized noth- 
 ing for five years to reduce their receipts more than 50 per cent., say to 
 below the 3 per cent, promised in 1876. 
 
 Finally, there exists one credit in favor of MM. Dreyfus Brothers & 
 Co., of which they have the inalienable right to demand liquidation, 
 towards which they receive only £2 per ton of guano instead of £5, as 
 their contracts assured them. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 721 
 
 On the other hand, the holders of Peruvian nitrate certificates may 
 be asked to reduce the interest of their bonds to 5 per cent., orig- 
 inally fixed at 8 per cent., everybody being obliged to make a sacrifice 
 in order to arrive at a general arrangement. 
 
 The terms thus settled, and they seem equitable, the indemnity pos- 
 sible to be assigned to Chili is composed of the annual surplus of the 
 proceeds of the guano and nitrate, the charges above-mentioned being 
 paid. 
 
 Calculate — 
 
 1. The annual proceeds of the guano, with the monopoly restored by the execution of 
 the contracts of the " Compaignie Financiers & Commerciale du Pacifique," is — 
 
 300,000 tons, at £12 per ton, average £3, 600, 000 
 
 Deduct cargo expenses and freight, £4 10s. per ton £1,350,000 
 
 Royalty to Peru, £1 10s 450,000 
 
 Credit Dreyfus Bros. & Co., £2 *600, 000 
 
 2, 409, 000 
 
 Net 1,200,000 
 
 2. Annual proceeds of the nitrate worked by the " Compaignie du Pacifique " by the 
 
 terms of the contract of January 7, 1880 — 
 
 200,000 tons, at £14 a ton £2,800,000 
 
 Manufacture, £6 per ton...: £1,200,000 
 
 Deduct freight and charges, £4 per ton 800, 000 
 
 Nitrate debt, £4,000,000, at 5 per cent 200, 000 
 
 2,200,000 
 
 Net -. 600,000 
 
 Recapitulation. 
 
 Net proceeds of guano £1,200,000 
 
 Net proceeds of nitrate 600,000 
 
 -. 1,800,000 
 
 To distribute to Peruvian bondholders, say 3 per cent, of their 
 
 nominal capital 1,050,000 
 
 Remuneration deducted from the proceeds distributed 300, 000 
 
 1, 350, 000 
 
 Remainder available for Chili 450,000 
 
 This balance of £450,000 corresponds exactly to the maximum sum 
 of royalty (£1 10s. per ton of guano) which the Chilian Government 
 had publicly declared herself willing to contract for the present and for 
 the future (Declaration of M. Blest Ganan, Chilian minister, on the 
 30th of January, 1880). 
 
 It is therefore probable that, in fixing that sum, Chili had foreseen 
 that she could not obtain more without exposing herself to legal recla- 
 mations, and that by formally limiting itself thereto, the governments 
 would only hold her to what it had itself originally thought reason- 
 able. 
 
 But in compensation the intervening governments might declare to 
 Peru and to Chili that they placed under their own direct protection 
 all the deposits of guano and nitrate, as well as their working. 
 
 By this means, not only can Chili no longer object that the province 
 of Tarapaca is indispensable as a boundary, since this zone would be- 
 come neutral and beyond all neighboring attacks ; but yet it will find 
 par the security given to the payment of her annual royalty the means 
 to contract, by proxy, a loan of at least £7,000,000 to £7,500,000, at 5 
 
 •After the payment of the credit of Dreyf as Bros. & Co. part of the above stun he assigned to the 
 sinking fnnd for the Peruvian loans. 
 
 S. Ex. 79—46 
 
722 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 per cent, interest and 1 per cent, redemption, say to constitute for her- 
 self a large pecuniary indemnity after having completely redeemed her 
 paper money. 
 
 To sum up : 
 
 The Peruvian bondholders have the incontestable right to the guano 
 and nitrates of Peru. 
 
 The recognition and exercise of these rights can be profitable, as 
 much for the bondholders as for the agriculturist only on the condition 
 of limiting the demands of Chili to a simple tax on the general proceeds 
 of the deposits neutralized and worked by the " Coinpagnie du Pacif- 
 ique," with a monopoly, that is to say in the manner recognized as 
 indispensable to give satisfaction to the different interests which this 
 question has brought into play. 
 
 And to arrive at so desirable a result, the European governments 
 need only desire it, for they possess the right and the means. 
 
 Paris, February 18, 1881. 
 
 Note on the GMli-Peru-Bolivian question. 
 
 It is not for us to investigate the causes of the war between the three 
 republics of Chili, Peru, and Bolivia. Nor does it pertain to us any 
 more to regard the explanations furnished by each of the states in the 
 brochures which they have had published in Europe. But that which 
 is perfectly proper for us to do, is to point out the principles advanced 
 by Peru and Chili. Peru, relying upon international law, has declared 
 that she had a treaty of alliance, offensive and defensive, with Bolivia, 
 and consequently her honor obliged her to execute it ; that is to say, 
 to espouse the cause of her ally attacked. Chili, relying upon the law 
 of nations, has declared that Bolivia in imposing an unauthorized tai 
 upon the exportation of products exploited from the region common to 
 the two states, manifestly injured the interests of her national engage- 
 ments in the nitrates of Antofagasta, and consequently that her duty 
 obliges her to protect the said interests. In effect, at the moment when 
 the two belligerents declare officially that the cause of the present dif- 
 ficulty consists on the one side in respect for engagements undertaken, 
 and on the other in protection of the national interests, they cannot find 
 fault that the same respect and the same protection should be demanded 
 of them for the interests of others. 
 
 But it is indisputable that if the present war were prolonged, the fatal 
 result would be the ruin of the European holders of Peruvian bonds, 
 since Peru and Chili will arrive at that point where they will no longer 
 be able to bear their expenses except by appropriating entire the in- 
 come from their guano and nitrates, to the detriment of their creditors, 
 Whose security these products stand for ; that is to say, they will violate, 
 so far as Europe is concerned, precisely theprinciples which the two states 
 in the affair have set forth as the explanation and justification of their 
 differences. It seems, then, useful and perfectly right that a mediation 
 or intervention be made, in the name of the principles adopted by the 
 belligerents, to devise and obtain a solution which will be a safeguard 
 to European interests, by every means possible. And the present note 
 has no other aim than to show what rights are to be protected, what 
 satisfaction can be given them, and what are the means by which the 
 execution of the engagements may be secured. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 723 
 
 RIGHTS OF THE , HOLDERS OF BONDS OF THE FOREIGN LOAN OF 
 
 PERU. 
 
 To be satisfied of the incontestability of the rights of holders of bonds 
 of the foreign loan of Peru, secured by the deposits of guano and ni- 
 trates, the possession of which is to-day become the cause of the pro- 
 longation of the war between Chili and Peru, it will be sufficient to read 
 the preamble of the contract signed at Paris, January 7, 1880, between 
 Messieurs Eosas and de Goyeneche and the Industrial and Commercial 
 Credit Society. 
 
 From such perusal it is entirely evident, as well as from after 
 official statements annexed to the contract in support thereof, that if a 
 power ought to intervene between the belligerents, it cannot do so 
 equitably, except upon the condition of safeguarding the interests of 
 the holders of the bonds in question by every possible measure. 
 
 DIFFICULTIES TO BE SOLVED. 
 
 Five principal difficulties may be adduced upon the subject of the 
 settlement of the right of holders of the bonds of the foreign loan of 
 Peru. 
 
 1. Who is their official representative f 
 
 There are at present four committees of holders of Peruvian bonds dis- 
 tributed among the principal markets of Europe, where the loan was 
 placed, namely: one at London, presided over by Mr. Cave; one at 
 Paris, presided over by Mr. Guillaume; one at Antwerp, presided over 
 by Mr. Gadderis ; one at Amsterdam, presided over by Mr. Wurf bain. 
 
 The English committee is hostile to those of the continent. Its presi- 
 dent, Mr. Cave, appears indissolubly allied with the Peruvian Guano Com- 
 pany. This society, to which General Prado conceded in 1876 the deposit 
 of Peruvian guano, has recently offered to Chili to become her consignee, 
 and has broken with Peru in opposing forcibly the duty which the lat- 
 ter state had imposed upon it in virtue of the contract; accordingly 
 Mr. Cave is gone to Santiago, officially charged to obtain for the Peru- 
 vian GuanoCompany the consignment of the guano deposits at Tarapaca 
 upon weighty conditions for the bondholders. If one believes the revela- 
 tions made on this subject in the English papers, The Standard, 
 The Financier, and The Money Market Eeview, Mr. Cave seems 
 to have completely run aground in his mission. The committee which 
 he represents is discredited to that degree that the Times has not 
 hesitated to advise the bondholders to look for other representatives. 
 The three other committees are united under the direction, real or nomi- 
 nal, of Mr. Guillaume. They have furnished the proof of this in giving 
 to him, since 1879, the power to negotiate in their name with Peru, and 
 in adhering publicly to the contract signed by the Credit Industrie!, Jan- 
 uary 7, 1880, a contract partly owing, they say, to the initiative of Mr. 
 Guillaume. 
 
 It is then logical to consider Mr. Guillaume the best authorized rep- 
 resentative of the holders of Peruvian bonds. 
 
 However, to avoid all discussion in opposition, it is best to attribute 
 this character to the Credit Industriel. In effect, on the one hand this 
 . title was conferred upon it by the debtor, Peru, in the contract of January 
 7, 1880; and on the other hand this establishment is one of an incon- 
 testable integrity; finally, the Credit Industriel appears to be entirely 
 in accord with the committees of the continent, and further has the 
 support of a very important English house. 
 
724 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 2. Upon what basis to regulate the credit of the bondholders. 
 
 The contract signed by the Credit Industriel, January 7, 1880, seems 
 to offer excellent guarantees to the holders of Peruvian bonds, for it is 
 conclusive — that which excludes the idea of future modifications, modi- 
 fications of which experience has abundantly shown the danger; then 
 it substitutes, first, for the heavy forfeit (adapted to the present, for the 
 expenses, and payable all the same, whether the distribution is made to 
 the creditors or not), a levy upon the net products only, distributed to 
 the creditors; second, for the ground-rent stipulated as payment to 
 Peru, whatever the result of the receipts, a payment pro rata to the 
 amount of tons sold. TTpon these bases the profits which the consignee 
 can realize from the contract of January 7 vary from 10s. to 13s. per 
 ton, if it sells at high prices and distributes the quintuple to the bond- 
 holders. This remuneration for trouble, care, and disbursements is not 
 excessive. Above all, when one remembers that the last consignees 
 were able to make £1 to £2, and even more, per ton, without in any 
 way serving the creditors. 
 
 However, it is necessary to provide a modification' for this contract — 
 modification resulting from the necessity of giving satisfaction to the 
 claims raised by Ghili and of which the said contract has taken no 
 account. 
 
 In this connection, and to avoid any objection on the part of either 
 Peru or Chili, it appears politic to take for a basis of the royalty assigned 
 to these two states for their needs the very figures which they have 
 publicly demanded. Peru, who had the right by the contract of June 
 7, 1876, to an annual payment of £700,000, officially renewed it, in the 
 middle of 1879, at £300,000, and will content herself for the future with 
 £400,000, that which corresponds to a payment of £1 10s. per ton for 
 guano upon the whole annual income. This proposition ought to be 
 accepted, for it is, they say> the same figure which was accepted in the 
 first place by Mr. Sarez, in the recent negotiations with the Credit In- 
 dustriel. 
 
 Chili has officially made declaration that she will not demand more 
 than from £1 to £1 10s. per ton for guano according to the quality. 
 
 In the case of the appropriation of these £3, in order not to diminish 
 therevenue already sufficiently restricted, remaining to the bondholders, 
 the amortization of £1 in coin, per ton, of guano sold, stipulated by the 
 contract of the 7th of January, 1880, would be suppressed, and the amor- 
 tization, which must be raised year by year to £300,000, would be raised 
 upon the receipts from the nitrates which, thanks f,o a wise conversion 
 of the present certificates, could still furnish the means of appropriating 
 each year £100,000 to Peru, £100,000 to Chili, and at the same time from 
 £50,000 to £60,000 to the subsidy for a cable between Panama and 
 Lima, the establishment of which cable would be of the greatest, service. 
 Thanks, to this distribution, conformable to the declarations of the two 
 states in question, Peru far from being short of resources would enjoy 
 a revenue equal, if not superior to that which she has ever regularly re- 
 ceived and Chili would find the means of negotiating a loan of from 
 £4,000,000 to £5,000,000 in cash, that is to say, of receiving almost im- 
 mediately an indemnity for the war. 
 
 Other considerations still militate in favor of the adoption of the 
 contract of the Credit Industriel thus modified as the basis for a settle- 
 ment. In the first place the validity of the contract, it is true, has been 
 contested by General Pierola ; but this is a point more than discussable, 
 since eminent lawyers, both of Europe and Peru, have maintained that 
 this contract, concluded by commissioners acting by virtue of power 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 725 
 
 conferred by a law regularly passed by a regular Congress, will pledge 
 the Peruvian nation, de jure, if not de facto, and the same opinion has 
 been held by the consulting committee of affairs in litigation, at the 
 office of the minister for foreign affairs of France before whom the 
 question was laid. 
 
 Not to take account of this contract would be then to expose them- 
 selves to legitimate demands, for it would be a failure of equity which 
 a mediator ought to guide. 
 
 In the second place to adopt a contract so made, and to which a large 
 party of creditors has already adhered would avoid the delays and 
 difficulties of a new negotiation in which it would still be necessary to 
 make the creditors a party, and this at a moment when it is all but in- 
 dispensable to guarantee in advance the execution of pledges and means 
 about to be proposed to the belligerents to lead them to conclude peace. 
 
 3. What are the measures to be taken to preclude the return of former 
 difficulties, of the present competition, or the failure of engagements 
 undertaken ? 
 
 The situation, for a long time precarious, which must result from the 
 present war to Chili and Peru, indicates beyond question that the set- 
 tlement of the question cannot be effective and certain unless the de- 
 posits of guano and nitrates, the cause of the past difficulties and 
 present dispute, are placed beyond all future hope on the part of the 
 nations which have possessed them or which occupy them to-day, at 
 least until the liquidation of the debts for the payment of which these 
 deposits are the security. 
 
 There is only one way to arrive at the result ; i. e., to make Chili as 
 well as Peru admit that the said deposits are neutral territory and pro- 
 tected by a neutral flag, save that each of the two states shall have the 
 right to watch the exportation, with a view to the execution of the en- 
 gagements undertaken by them respectively. 
 
 This neutralization presents a double advantage : First, it guarantees 
 the foreign creditors against new exigencies, and it effects (grants, 
 allows) a solution of a question which to-day appears insoluble. From 
 self love, natural pride, fear of a governmental derangement, or some 
 other motive, Peru will not abandon Tarapaca to Chili, nor will the 
 latter give it back to Peru. If they will make this territory neutral at 
 the same time as the other deposits of the north Chili and Peru would 
 no longer have any reason for insisting upon the point of occupation, 
 and in the eyes of the masses (illegible in the French) the two govern- 
 ments could almost entirely abandon their pretensions, not as though by 
 a retreat, but as by a neutral concession made to the great principle of 
 the rights of the people, a concession having for its aim the revival of 
 their credit and the maintenance of their reputation for honorableness. 
 
 •4c. Do there exist, beside the holders of Peruvian bonds, other im- 
 portant creditors f 
 
 Besides the holders of Peruvian bonds, Peru does not appear to have 
 other important creditors in Europe, except her last two consignees, 
 Messieurs Dreyfus Bros, and the Peruvian Guano Company. 
 
 The Peruvian Guano Company has at least a stock of guano more than 
 •sufficient to cover the debt, especially since its contract expired in June, 
 1880, and itS situation is far from being right as regards Peru, which 
 brought a suit against it in the English courts. 
 
 In 1873 Mr. Dreyfus proclaimed himself a creditor of the Peruvian 
 Government in the sum of 100,000,000 francs, and declared that he was 
 going to suspend, the payment of interest on the loans in order to re- 
 imburse himself. 
 
726 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 The government frightened, because at that juncture it had still to 
 place almost the whole of its loan (called the 5 per cent, of 1872) not 
 subscribed, on the 13th of April made a convention with Mr. Dreyfus 
 by the terms of which Mr. Dreyfus was pledged to pay interest on the 
 loans only until the 1st of July, 1875, inclusive, and was authorized to 
 sell afterwards for the exclusive account of his debt, the guano which 
 remained, about 500,000 tons. 
 
 The convention of April 13, 1874, was believed to have liquidated 
 this account entirely since Mr. Dreyfus admitted a surplus of 35,000,000 
 francs, which he himself had advanced to Peru. But not at all ; Mr. 
 Dreyfus, in 1879, declared himself anew a creditor in the sum of 
 100,000,000 francs, and that after having received 300,000 tons in ex- 
 cess of that stipulated in his contract of August, 1869, and in the con- 
 vention of the 13th of April, 1874. 
 
 The government of General Prado refused to admit this new debt 
 upon the judgment of the court of accounts, and in a report given pub- 
 licly the attorney-general of the Peruvian Eepublic, Dr. Aronibar, 
 affirmed that far from being its creditor Mr. Dreyfus was its debtor. 
 
 One of the first acts of the present dictator, Don Nicolas de Pierola, 
 on coming into power, was to admit the legality of the debt repudiated 
 by the government overthrown. 
 
 It is difficult to pronounce absolutely upon the legality or illegality 
 of the Dreyfus debt. Nevertheless, if one considers : 1st. That this 
 debt was denied by the bondholders before the French courts which, 
 while not giving a decision in their favor, did not hesitate to declare 
 upon the question of the accounts of Peru with Mr. Dreyfus that this 
 government had "betrayed its national faith;" 2d. That the attorney- 
 general of the Peruvian Eepublic has legally contested the basis of 
 this debt. 3d. That Messrs. Dreyfus referred the case to the arbitra- 
 tion of the present dictator without appeal, and accepted a reduction of 
 about 5 per cent., it is permissible to doubt concerning a legal ground. 
 
 Nevertheless, in the absence of a knowledge of positive facts, it is 
 impossible to deny the said debt absolutely; it will be- indispensable to 
 admit the sum of it, whatever it may be, but pro rata, because there ex- 
 ists no plausible reason for considering Mr. Dreyfus a privileged cred- 
 itor, especially since this privilege would have as an immediate con- 
 sequence the reduction either of the payments, which are useful and 
 capable of being appropriated to Peru and Chili, or the amount dis- 
 posable for the benefit of the bondholders whose debt is as legitimate 
 as it is incontestable. 
 
 In this state of affairs it would seem equitable to appropriate to the 
 payment of the Dreyfus debt a portion of the funds reserved for the 
 amortization of the Peruvian bonds, suspending this amortization in 
 part or in whole until the extinction of the debt in question. • 
 
 5. Who should be charged with the liquidation, and consequently 
 with the exploitation of the deposits of guano and nitrates ? 
 
 First; two general considerations. 
 
 %. Guano and nitrates are two similar products, consequently the 
 more there is sold of the first the less there is sold of the second, un- 
 less the prices are lowered. Then it is indispensable to the correct 
 management of the affairs that the sale of guano should* not diminish 
 since the yield of this product is greater than that of nitrates, the first 
 requiring from 6s. to 10s. per ton for all expenses of sale, and the second 
 requiring £6. Whence this combination (should be made) that guano 
 and nitrates should be sold by one and the same person or company. 
 
 So loijg as there was one vendor of guano in the market the prices were 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 727 
 
 1, ii-U-VU, 
 
 maintained at an average of £12 to £12 10s. per ton. But from the 
 day when there was competition (1876) the prices were lowered to a 
 point where the average was no more than from £9 to £9 10s., being a 
 loss of £3 per ton; £900,000 on the whole, which was originally 300J000 
 tons. 
 
 It is this that explains in part why payment of. the interest on the 
 Peruvian loan has been suspended since 1876. Competition alone hav- 
 ing effected a loss of 3 per cent, to the bondholders. 
 
 Whence this other conclusion that it is useful that there should not 
 be one vendor on account of Peru, and another on account of Chili; but 
 one single vendor of guano and niter on account of all interested. 
 
 These points stated, we come to the question of the individual or 
 company. 
 
 Public opinion in Europe rejects in a manner as general as it is .abso- 
 lute, the interference anew, as well of Mr. Dreyfus and his partners, 
 to whom is attributed the failure of Peru, as of the Peruvian G-uano 
 Company and its partners, to whom is attributed the continuation of 
 that failure. This general repugnance exists equally in Peru and Chili 
 as regards the names above-mentioned. There are several firms which 
 could be addressed, but besides entailing delay this would only give rise 
 to difficulties for the reason and considerations enumerated above. 
 
 These reasons and considerations bring us perforce to this conclusion: 
 That it is the Credit Industriel, which ought to be charged with the 
 liquidation, and, consequently, with the exploitation of the deposits of 
 guano and niter, and the same reasons and considerations lead to the 
 conclusion that it was the contract signed by this establishment on 
 January 7, 1880, which was the best basis of the liquidation and ex- 
 ploitation. 
 
 There remains the question as to whether the Credit Industriel 
 is ready to accept this mission ; for a government cannot intervene and 
 offer a base of settlement without being assured in advance that the 
 execution is guaranteed by the third party himself, whose name and 
 programme are proposed for this purpose. There can be no doubt for a 
 single instant that the Credit Industriel will accept the base of liquida- 
 tion in view, if that liquidation can take place on the conditions named 
 above, and which, for greater precision may be here recapitulated: 
 
 I. Neutralization of the guano and nitre deposits. 
 
 II. Monopoly of the sale of the two products in the markets of Eu- 
 rope. 
 
 III. Base of exploitation according to the contract signed at Paris, 
 January 7, 1880, with ■ the modifications rendered necessary to bring 
 about peace between Peru and Chili. 
 
 IV. Conversion of the nitrate debt and equitable reduction of inter- 
 est. 
 
 At the same time that it is the interest, it is the duty of the Credit 
 Industriel to accept ; . for after having signed the contract of January 
 7 ? 1880, to refuse to execute it, would be almost a repudiation of its 
 signature, and this establishment is reputed to be too careful of its 
 honor to be done an injury by being doubted. 
 
 Public opinion. — As to the holders in Europe of Peruvian bonds, the 
 favor mth which they have received the news of the possible interven- 
 tion of the United States in the Chilian-Peruvian question, testifies that 
 they are ready to place all confidence in an intermediator, and conse- 
 quently that they will accept the settlement as it is indicated above. 
 This favorable acceptance is all the more certain since the indications 
 
728 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 which precede are nothing more than a condensed reproduction of ideas 
 set forth by the English journals, and for a long time publicly professed 
 by the representatives of the bondholders on the continent. 
 
 On the utility of the contracts of the Credit Industrielfor obtaining a sat- 
 isfactory adjustment of the Peruvian obligations. 
 
 In openly manifesting their intention to offer their mediation between 
 Peru and Chili, the. Governments of France, England, and Italy have 
 shown that the interests of their citizens were seriously menaced by a 
 continuance of the war devastating the Pacific, and that it had become 
 absolutely necessary to regulate definitively the Peruvian foreign ob- 
 ligations. 
 
 But would a mere offer of mediation be sufficient to secure a satis- 
 factory adjustment? 
 
 As far as Peru is in question there is no doubt of it. That state is 
 bound by contracts as exphcit and formal as they are of recent date ; 
 her present situation is such that she could not refuse any satisfaction, 
 and, further, it is only by means of an equitable regulation with her 
 creditors that the country can hope to be restored. 
 
 On the other hand, from Chili there are many serious difficulties to 
 be apprehended, which very certainly will not be removed by a mere 
 offer of mediation, for they arise for most part from immediate necessi- 
 ties, so urgent and of such lofty ambition that they can only be satis- 
 fied by the almost entire seizure of the only convertible resources of 
 Peru, namely, the guUno and nitrate beds. 
 
 In order to be convinced of the difficulties which Chili will suscitate 
 it is only necessary to recall the inanity of the peace conferences held 
 at Arica under the patronage of the United States, that is to say, under 
 the patronage of a very powerful government, and, what is still more to 
 the point, of a government that is in close neighborhood. It will suf- 
 fice to cast a glance over the articles of the Chilian press to see that af- 
 ter having called for the annexation of Taraparfa, with the expressed 
 reservation in regard to the Peruvian obligations, now insist upon a 
 complete Chilian protectorate all over Peru, and declare that the Pe- 
 ruvian obligations should only be accepted at one-tenth of their face 
 value, that is to say at a reduction of 90 per cent. 
 
 From these facts, constituting a moral presumption of bad faith on 
 the part of Chili, in regard to a mediation being necessary to limit her 
 pretensions, and if the material acts be added thereto, such as the pro- 
 hibition to load and export guano, in execution of regular contracts, 
 dated anterior to the war (1869-1876), the conclusion is positive that 
 -Chili will not yield to mere friendly remonstrances, and consequently 
 the European powers can scarcely hesitate about adopting a more en- 
 ergetic attitude. 
 
 Such hesitation would only result in promptly complicating still 
 further the situation, for it would lead Chili, already too much exalted 
 by her success, into the belief that she could with impunity violate all 
 rights of Europeans, and it would only be justifiable were any doubt to 
 exist on the right of the powers to intervene, or as to the limit within 
 which said intervention should be exercised, or, still further, even as to 
 the possibility of a dissension between the governments interested 
 more or less in the settlement of the Peruvian-Chilian difficulty, either 
 in view of the protection of their citizens or in view of their politics 
 in general. 
 
 But it is easy to prove that no such doubt could, or does, exist. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 729 
 
 THE RIGHT OF THE GOVERNMENTS TO INTERVENE. 
 
 All legists agree in declaring that governments have the right to in- 
 tervene to insure protection for the interests of its citizens when said 
 interests are manifestly injured by a foreign government. 
 
 Indeed, many authorities go still farther, and declare that said in- 
 tervention is not only a right, but is in itself a strict obligation. 
 
 Protective intervention in this respect is not optional. It is obligatory ! 
 
 In return for the sacrifices imposed upon citizens, the- governments are bound not only to 
 protect tliem in person and property at home, but also owe to them at least an equal security 
 against any attacks to which they maybe subjected abroad. (McDafaure. consultation of 
 March 13, 18750 
 
 If this intervention be considered obligatory for the protection of 
 individual interests, how much more so must it be when there is in 
 question, as in the present case, an entire people, possessed of the 
 most incontestable rights, and powerless for defense, as its only means, 
 namely, coercion, is interdicted. 
 
 Still further, in intervening to claim the possession of the deposits 
 of nitrate aud guano in the interest of their citizens, creditors of 
 Peru, the governments can meet with no serious objection from Chili, 
 since in such action they merely apply to that power the principles 
 which she herself publicly and officially declared in claiming in the 
 interest of the Chilian citizens the possession of the intermediate zone 
 between Chili and Bobvia, wherein are situate the nitrates of Antofa- 
 gasta and the silver mines of Caracolles. 
 
 CONDITIONS OF INTERVENTION. 
 
 The question of the terms and limit of intervention were decided 
 judicially as follows : 
 
 The Government of Chili cannot, either in politics or in international right, confiscate the 
 guanos and nitrates without making them subject within sueh limits and conditions as the 
 Peruvian Governrnent would have done, to the payment of the indebtedness of this latter state. 
 In failing to act thus, the Chilian Government ignores nnt only the rules of international 
 right, but exposes itself to answer to a diplomatic intervention, or even to an armed interven- 
 tion of the powers holding the Peruvian obligations. 
 
 This right of armed intervention becomes incontestable when there is question, as in this in-, 
 stance, of certain creditors to whom certain goods ivere especially appropriated. On the other 
 hand is to be found a government with whom said creditors had not negotiated, in whom they 
 had not confided, and with whom they had no connection save that said government had seized 
 by force the property which constituted to them their security. (McJozod, consultation ot 
 May 15, 1881.) 
 
 Thus the satisfaction which the European governments have the 
 right to exact from Chili in the nam«dof their citizens can be no other 
 legally than that same which Peru would have granted to her creditors. 
 
 In order to maintain position of absolute right in the premises, it 
 would be useful, indeed indispensable, to produce an act shewing clearly 
 and positively the amount and the conditions wherein Peru owes said 
 satisfaction. 
 
 Is there such an act existing ? 
 
 Such act does exist. -It is the contract concluded at Paris, Jan- 
 uary 7, 1880, between the Credit Industriel and Messrs. Eosas and de 
 Groyen$che, mandatories of the Peruvian nation, by virtue of a special 
 law, regularly and constitutionally voted by Congress October 10, 1879. 
 
 This contract stipulates that under condition of a rent or duty per 
 ton for all guano and nitrate exported in favor of Peru (articles 4 and 29), 
 and under the sole reservation of duties arising from anterior contracts 
 (1869-1876) for guano ; 1875 and 1878, for nitrates (articles 24 and 33), all 
 
730 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 deposits of guano and nitrate are definitively placed in the possession 
 of a society, which binds itself to work the same and to devote the net 
 product thereof to the complete extinction of the Peruvian loans ; these 
 two manures to be held as security. 
 
 Supported by this contract the governments, having right of inter- 
 vention are judicially founded in requiring from Chili the restitution 
 of the deposits of guano and nitrate under the conditions stipulated in 
 the contract of January 7, 1880. But this contract was merely the 
 formal and material consecration of rights which had been already for- 
 mally conceded. 
 
 The only claim that Chili can set up legitimately would be to demand 
 as war indemnity either all or part of the duties claimed by Peru. 
 
 ACCORD OF THE VARIOUS POWERS. 
 
 In order that the working of the deposits of guano and nitrate, un- 
 der the aforesaid conditions, be protected against any ulterior difficulty 
 and against all eventualities, it is indispensable that the working be 
 placed under the direct protectorate of the powers ruling the creditors of 
 Peru. It cannot be seen how either the Governments of France, En- 
 gland, or Italy, taking the initiative in mediation, can suscitate any ob- 
 jection to the intervention and protectorate hereinbefore mentioned. 
 
 It would be difficult to explain why any one amongst them should 
 criticise the proposed riding, inasmuch that this ruling in substance as 
 well as in form is identical with that which said powers imposed on 
 Tunis. This is easy to establish. 
 
 RULINGS ON THE FOREIGN TUNISIAN LOAN. 
 
 (A decree of July 14, 1869, prepared at Paris, constitutes:) 
 
 An executive committee, composed of two Tunisian functionaries and 
 of an inspector-general of finances ; a supervising committee, composed 
 of six members — two English, two French, and two Italian — elected by 
 vote of the parties interested ; a financial commission, composed of the 
 two united committees. 
 
 An arrangement proposed by the financial commission and concluded 
 March 23, 1870, stipulates: 
 
 1st. The fusion of the different claims. 
 
 2d. The actual surrender of the securities to the representatives of the 
 creditors under the collective projection of England, France, and Italy. 
 
 3d. The management of the revenues surrendered by a councU of 
 administration acting in the interest and for account of the creditors, 
 and under the supervision of the committee up to the extinction of the 
 loans. 
 
 REGULATION OF THE FOREIGN PERUVIAN LOAN. 
 
 The contracts of Credit Industrie! stipulate, according to the arrange- 
 ment of March 23, 1870 : 
 
 1st. The fusion of the different loans. (Article 8 of the conditions 
 and article 33 of the contract.) 
 
 2d. The actual Surrender of the securities to the creditors. (Articles 
 2 and 27 of the contract.) 
 
 3d. The management of the rev6nues surrendered up to the extinc- 
 tion of the loans by a society acting in the interest and for account of 
 
PEKIT, AND BOLIVIA. 731 
 
 the creditors (articles 1 and 27 of the contract), under the control of 
 committees elected by the French, English, Belgian, and Dutch cred- 
 itors (articles 16 of the conditions), and of the officials of the State in- 
 terested, (article 18 of the contract). 
 
 In order that the identity should be perfect there will only have to 
 be added in the general interest the direct protection of the European 
 powers ruling the Peruvian creditors. 
 
 If France, England, and Italy, who have manifested the desire to 
 protect their citizens in their interests on the Pacific, really mean ac- 
 tion, they are morally bound to insist upon the execution of the con- 
 tracts of the GrSdit Industriel, inasmuch that these contracts are the 
 only ones which furnish judicially the measure and the conditions that 
 should be imposed, and also that they are in themselves the reproduc- 
 tion, almost word by word, of a regulation which these same had 
 already agreed upon to impose collectively on the Tunisian Government. 
 
 In Europe, outside of these three states, there are only Holland and 
 Belgium who possess an interest in this arrangement, as their citizens 
 have subscribed largely to the Peruvian loans. Holland has already 
 declared herself ready to follow the initiative of the first three govern- 
 ments, and Belgium is declared to be in the same disposition. 
 
 Out of Europe there remains the United States, who may entertain 
 a certain repugnance at seeing any European influence implanted or 
 developed consequent upon a protectorate over the guano and nitrate 
 deposits on the Pacific coast. 
 
 This difficulty, however, may be solved, for there exist reasons to be- 
 lieve that the United States would dislike much more the aggrandize- 
 ment of Chili by the annexation of Peru, and thereby upsetting the 
 equilibrium of the South American states, than a mere local European 
 influence. The United States would, on the contrary, be well pleased 
 to see the guano and nitrate deposits withdrawn from Chili, for by such 
 withdrawal Chili would be deprived of her only means of dominating 
 the other republics neighboring, and thus forming a Spanish confedera- 
 tion in the south which would be sufficiently powerful to cause ulterior 
 fears or embarrassments in the north. 
 
 To sum up : Everything goes to prove that the interests of the Euro- 
 pean creditors of Peru are menaced by Chili, and that they can only be 
 protected by the assumption of an extremely energetic stand. 
 
 The best, indeed the only, basis for such stand is furnished by the 
 contracts of the GrSdit Industriel, for they show precisely in what 
 measure and under what conditions an adjustment can be claimed and 
 exacted from Chili. 
 
 There is still less reason for hesitation in energetically insisting upon 
 the execution of the contracts of the Credit Industriel, both with re- 
 gard to Chili as to Peru, in this, that said contracts must be regarded 
 favorably by the powers interested either directly or indirectly in the 
 adjustment of the Peruvian- Chilian difficulty, for these contracts are 
 an assurance of the renewal of the service of Peruvian loans ; are, fur- 
 ther, in harmonious conformity with a financial precedent established 
 by the European powers, and answer satisfactorily to certain political 
 views of the United States. 
 
 Paris, June 1, 1881. 
 
732 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 [Translation.]; 
 Programme of mediation between Peru and Chili. 
 
 Paris, July, 1881. 
 
 1st. Neutralization of the deposits of guano and nitrate. 
 
 In order to spare the two states the irritation consequent upon a ces- 
 sion of territory, and to guarantee the creditors, whose security these 
 deposits are, against further difficulties. 
 
 2d. Management of neutralized deposits confided to a credit estab- 
 lishment of undoubted standing and respectability. 
 
 In order to give confidence to all the parties interested in the en- 
 gagements entered into. 
 
 3d. Basis of the management. 
 
 The contract of the GrMit Industrielf signed at Paris, January 7, 1880, 
 and altered in a manner to satisfy all interests, guarantees : 
 
 1st. To Chili: The payment which it has demanded of £1 10s. per 
 ton, or £450,000 per year, which would render it possible to make a loan 
 to that state or to pay a reasonable war indemnity. 
 
 2d. To Peru : The amount that it has declared indispensable to its 
 needs, £400,000 per year. » 
 
 3d. To the bondholders: The remainder, which represents 3 per 
 «ent. of the nominal actual capital of the debt. 
 
 4th. Conversion of the nitrate debt ; 
 
 In order to permit the redemption of the Peruvian guano debt and 
 likewise to increase, if necessary, the payments promised to Peru and 
 Chili (Article III). 
 
 5th. Establishment of a cable from Panama to Peru ; 
 
 To aid in the development of the relations between this latter coun- 
 try and Europe, and in the re-establishment of its credit, a subsidy, 
 which could be drawn from the conversion of the nitrate debt, might be 
 appropriated to the benefit of this cable. 
 
 It can be affirmed that this programme, if proposed by the United 
 States, would be supported by the principal states of Europe, whose 
 citizens are creditors of Peru, especially by England, Belgium, and 
 Holland. 
 
 DEDUCTION. 
 
 No. 1. The guano manipulation and mixtures, taken together, can produce 
 
 per year, with a sale of 300,000 tons at £12 £3,600,000 
 
 From which must be deducted : 
 
 I. Freight and expenses, at £4 per ton £1,200,000 
 
 II. Rent to Chili, at £1 10«. per ton 450,000 
 
 III. Rent to Peru, at £1 perton 300,000 
 
 IV. Rent to Dreyfus, at £1 per ton 300,000 
 
 2,250,000 
 
 Balance 1,350,000 
 
 Remuneration to the managing company 270,000 
 
 Balance to be distributed annually to the bondholders 1, 080, 000 
 
 Or 3 per cent, of the nominal capital of the debt. 
 
 No. 2. The working of monopolized nitrate can produce per year, at the 
 
 rate of 200,000 tons, sold at £14 £2,800,000 
 
 I. Manufacture and transportation to the coast, £6 perton. £1,200,000 
 II. Freight and expenses, £4 per ton 800,000 
 
 III. Payment to Chili, 10 per cent, per ton 100,000 
 
 IV. Payment to Peru, 10 per cent, per ton 100, 000 
 
 2,200,000 
 
 Balance 600,000 
 
 Remuneration to the company of management 120, 000 
 
 Balance to be distributed per year „ 480,000 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 733 
 
 Of which the division might take place : 
 
 I. For the payment of interest, and for the amortization of the debt of the 
 proprietors of the nitrate works, which now requires 8 per cent, interest 
 and 2 per cent, amortization per year, or £400,000 per year, and which 
 might be reduced to, say, an interest of 5 per cent, and I per cent, amor- 
 tization, and converted into transferable bonds, which, being negotiable 
 in Europe, would pay to the holders more than they would lose at the 
 
 rate of exchange, say 240, 000 
 
 II. Subsidy to a cable between Peru and Panama 60,000 
 
 III. Amount assigned to an early redemption of the foreign Peruvian debt 
 until the Dreyfus debt has been extinguished, and until it can act by 
 means of the amount now assigned to Messrs. Dreyfus & Co 180, 000 
 
 , 480, 000 
 
 * ,- 
 
 The combination then renders it possible to assign each year : 
 
 I. To Chili £550,000, say, on guano « 450,000 
 
 And on nitrate 100,000 
 
 550, 000 
 That is to say, an annual payment more than sufficient to be able to secure 
 a loan in Europe of more than 5, 000, 000 
 
 II. To Peru £400,000, say, on guano 300,000 
 
 And on nitrate 100,000 
 
 400, 00O' 
 That is to say a sufficient amount to meet its legitimate needs. 
 
 III. To foreign bondholders £1,260,000 
 
 Or as interest 1,080,000 
 
 • And as amortization 180,000 
 
 1,260,000 
 
 That is to say an inferior revenue to that of £2,600,000, but perfectly sure ; besides 
 being protected from every contingency by neutralization. 
 
 It is sufficient to read the above programme and the figures which 
 follow from it to recognize — 
 
 a. That the combination is acceptable to the two states, since it per- 
 mits peace to be made without irritation to their amour propre, at the 
 same time assuring to each of them a large pecuniary compensation. 
 
 6. That the combination is acceptable to the creditors of Peru, since, 
 in return for the abandonment of a portion of their interests, it gives 
 them a security that they have never had before. 
 
 c. That the combination is presentable by a mediator, since it sacri- 
 fices no one, and allows the two states to recover their credit, the ruin 
 of which would produce embarrassment in the commercial world. 
 
 Note. 
 
 The notes and information relative to the settling of the pending 
 question between Peru and Chili have been constantly presented by 
 the " Compagnie Financiere et Oommerciale du Pacifique," in the fol- 
 lowing points of view : 
 
 1°. The political and territorial preservation of Peru. 
 
 2°. Monopolized sale of the two only products that could afford, in a 
 certain measure, the means of satisfying the interests of the exterior 
 creditors of Peru, whoever they may be. 
 
 ' 3°. The apportionment, under the care of the " Compagnie Financiere 
 et Commerciale du Pacifique," of the product of the monopolized ni- 
 trates and guanos, to the several parties concerned, and according to 
 the basis adopted at the moment of the conclusion of peace. 
 
 1°. The political and territorial preservation of Peru. 
 
734 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 All national or political consideration is foreign to the opinion ex- 
 pressed on this subject. 
 
 But victorious Chili, the real possessor to-day of a considerable part 
 of the Peruvian territory, does not seem to be able to extricate herself 
 from the following dilemma : 
 
 The right of nations, the elementary principles of international right, 
 oblige a state who annexes unto itself a territory to assume the lia- 
 bilities that burden that territory in favor of third parties. (See the 
 consultation herein annexed.) 
 
 In the particular case now in point, the European States have had, 
 in 1865, the opportunity of formally expressing that opinion, when the 
 Chinchas Islands, on which the principal deposits of" guano were sit- 
 uated, were momentarily occupied by the Spanish fleet, under the ordere 
 of Admiral Pinson. 
 
 If Chik' occupied the whole of the Peruvian territory, if she enjoyed 
 the totality of the products of that territory, she would be unquestion- 
 ably responsible for the totality of the exterior debts of that country. 
 
 If, instead of withholding the totality of the territory, Chili were to 
 retain only a part of it, the province of Tarapaca, for instance, she 
 would evidently have only to support the liabilities resulting from ex- 
 terior debts in a determined measure, proportionately to the value or the 
 product of the territory annexed to its states. 
 
 But Chili cannot leave on Peru the whole burden of her exterior debts, 
 and appropriate the revenues intended for the payment of those debts. 
 She must, in one word, shoulder the assets and the debts of the terri- 
 torial power to whom she succeeds. 
 
 The elaim expressed on this Subject by Chili, to obey no other but 
 her own will and the law of her interests, to dispose of the resources 
 of the vanquished without regard to the mortgages with which they are 
 burdened, appears excessive and contrary to all the recognized princi- 
 ples in similar cases. 
 
 If, therefore, the total or partial conquest of Peruvian territory is ren- 
 dered impossible by the charges imposed on the conqueror, any reason- 
 able mind must come to this conclusion : 
 
 That in her own interest Chili must end by respecting the Peruvian 
 territory, either in its integrality or in the greater part of its extent. 
 
 But if Peru subsists as a state, the necessary consequence of this fact 
 is the maintenance of a budget that will allow to meet the necessary 
 expenses of both government and administration. 
 
 It is owing to this order of ideas, the application of which will force 
 itself at the moment of the conclusion of the peace, that we have taken 
 into consideration the imperious necessities of Peru,' and the urgency 
 of satisfying them in a certain measure. 
 
 2°. Monopolized sale of the two only products that could afford, in a 
 certain measure, the means of satisfying the interests of the exterior 
 creditors of Peru, whoever they be. 
 
 The creation of the " Compagnie du Paciflque," in consequence of the 
 treaty of January 7, 1880, is the practical realization of the idea of the 
 re-establishment of the monopoly of sale. 
 
 Without this monopoly, that is under the present law of competition, 
 the gross price of guano cannot rise much beyond the actual market 
 price of £8 ; that is; £2,400,000 for 300,000 tons gross weight. 
 
 With this monopoly there is reason to hope that, without greatly 
 curtailing the sum total of the sales in Europe, the old price of £12 
 could be obtained ; that is, $3,600,000 for 300,000 tons gross weight. 
 
APFAIES IN CHILI, PERU, AND BOLIVIA. 735 
 
 Moreover, competition increases the price of freight, of expenses, &c, 
 which will also affect the net total of the sum to be divided. 
 
 Now, therefore, the monopoly can only be reconstituted through the 
 agency of the "Compagnie Pinanciere et Commerciale du Pacifique," 
 because this latter has become, or is going to become, after long and 
 difficult negotiations, the comptroller of the totality of the stock of 
 guano (about 600,000 tons) existing at this present moment in Europe. 
 
 "We have explained in a special note the reasons that advised the 
 submitting of the nitrates of soda to the same rule of monopoly as the 
 guanos. 
 
 Without re-entering upon the details furnished on this subject, we 
 will recall that the principal of these reasons are : 
 
 1°. The necessity of regulating the importations of guano and nitrate 
 to Europe, these two products, though chemically constituted in a dif- 
 ferent way, competing with each other in a certain, measure. 
 
 2°. The study of 'the means to satisfy with the greatest facility the 
 ancjent owners of the niter beds of Peru, dispossessed by the govern- 
 ment of that country. 
 
 3°. The necessity of regulating in a profitable manner for all parties 
 the movement of a trade that interests Bolivia as well as Peru. 
 
 4°. The means of finding in the sale of nitrate, rendered as profitable * 
 as possible, a supplementary resource enabling the settlement of the 
 very difficult financial questions involved in the conclusion of peace. 
 
 Chili seems only to oppose to the establishment of the monopoly of 
 the sale of nitrate, theories of political economy, inspired by private 
 interests, which are very little in harmony with the imperious necessity 
 created by circumstances. 
 
 III . The apportionment, under the care of the "Compagnie Finan- 
 ciere et Commerciale du Pacifique," of the product of the monopolized 
 guanos and nitrates to the several parties concerned, and according to 
 the basis adopted at the moment of the conclusion of the peace. 
 
 Several calculations have been submitted on the subject. They all 
 start, as regards the guano, from this very probable fact, viz, that the 
 real expenses necessitated by the importation and sale of guano will 
 not exceed, under the rule of monopoly, £4 plus 10s. the carguio per 
 tonne. 
 
 It is therefore the surplus that is to be assigned on bases that can be 
 slightly modified in one sense or the other. 
 
 The question is, consequently, to fix: 1°. The order in which the ap- 
 portionment of the net product is to be made. 2°. The proportion in 
 which each of the parties concerned is to participate in it. 
 
 These parties are : 
 
 1°. The firm of Dreyfus, acknowledged creditor of the Peruvian Gov- 
 ernment for an important sum. 
 
 2°. The holders of Peruvian loans, 1870 and 1872. 
 
 3°. The holders of certificates delivered by the Peruvian Govern- 
 ment, in exchange of the value of the appropriated niter-beds. 
 
 4°. Peru, if that state subsists either totally or partially. 
 
 5°. The Chilian Government. 
 
 We have followed in this statement, as regards the three first classes 
 of claims, what is supposed to be the chronological order of pre-exist- 
 ing rights. 
 
 But this order can be modified so far in the conclusion of a treaty of 
 peace as to give to Chili the first rank in the division of the product, 
 that is, so far as to give her the certainty that the annual sum which 
 
736 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 will be her share will be paid her after the campagnie, as vendor, will 
 have been reimbursed for the expenses incurred in the operation. 
 
 The bondholders that have been sacrificed up to this moment have 
 every right to be protected; and even if they are only called upon to 
 receive what will remain after all other interested parties have taken 
 their share, it i.s necessary, at least, that this portion should be rea- 
 sonable, and should not render the promises made to the exterior cred- 
 itors of Peru either ridiculous or vain. 
 
 That this should be, it is necessary, in any case, that guano sold 
 under monopoly should be assessed more than £8 per ton, thus: £4 for 
 freight, storage, and expenses inherent to the product; 10s. the car- 
 guio ; £3 10s. to be divided between Chili, Peru, and' the firm of Drey- 
 fus, in the order and in the proportion which will be adopted. 
 
 What will remain, after deducting the above-mentioned assessments, 
 will constitute the share of the bondholders and of the compagnie, at 
 the rate of 80 per cent, for the former, and of 20 per cent, for the latter 
 
 Supplementary observation of the means of converting into cash the sum 
 assigned to one or the other of the belligerents. 
 
 If Chili is called upon to receive the product of the guano and nitrate, 
 after the reimbursement of the expenses, and if the neutralty of the de- 
 posits of these two products is guaranteed by the Government of the 
 United States, the "Compagnie du Pacifique" might well bind itself to 
 pay to Chili,, at fixed annual periods, the sum amounting to the duty 
 assigned in her favor by the treaty of peace. 
 
 But this engagement cannot be absolute. It is evidently subordinate 
 to the existence of a stock of guano sufficient to enable the exportation 
 of this product to be made in the foreseen amount. It is equally sub- 
 ordinate to uncontrollable circumstances which might for a moment ren- 
 der the sale of guanos impossible on those markets where it is at present 
 demanded. 
 
 The " Compagnie du Pacifique" is not constituted with a view of taking 
 the place of the belligerent states, and of being a guarantee, in any case, 
 of one with respect to the other. Its statutes force it to remain within 
 the limits of its mandate, which is the one of a loyal trustee intrusted 
 to sell a product on the best terms possible, and to faithfully divide its 
 price. 
 
 Therefore it is impossible, if there is a loan to be contracted, that the 
 compagnie should assume towards the public the absolute engagement 
 to pay, which cannot be the work of a financial establishment, and that 
 she should take in that respect a responsibility that can only be use- 
 fully assumed by a state. 
 
 If the annuity assigned to Chili by the treaty of peace is to be imme- 
 diately converted in a sum necessary to the financial wants of that state, 
 that operation can only take place by the direct intervention, with 
 respect to the creditors of one or the other of the nations concerned. 
 
 Peru has nothing to hope from European capital, having been de- 
 prived of all reputation for solvency even before the present crisis. 
 
 But Chili can convert the annual sum that the treaty of peace 'will 
 assign her, in a sum proportionate to her wants. She can do it all the 
 more easily, as her credit on the European markets, consoMated by a 
 great punctuality in meeting her engagements, has never been assailed. 
 
 This solution is imperious, for there exists no other, whatever may 
 be the desire to pay in cash the ransom of Peru, and thus to simplify 
 the conclusion of a treaty of peace. 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 737 
 
 Chili may easily obtain more than £6,000,000 to £7,000,000 net from 
 a loan based upon the dues that the guanos and nitrates will secure 
 her. 
 
 The safety of the security on which this loan will rest will be increased 
 by the intervention of the United States, and Chili will obtain, on that 
 score, all it can expect from a vanquished enemy, who gives her all it 
 can offer. 
 
 The " Compagnie du Pacifique" has informed the Chilian Government, 
 that, in connection with other large financial establishments, it was 
 quite ready to negotiate an operation of the nature of the one in discus- 
 sion. 
 
 It is ready to undertake the active pursuit of such negotiations as 
 soon as circumstances will render them opportune. 
 
 Paris, July 25, 1881. 
 
 Memorandum in regard to the double programme to be followed by the 
 
 Pacific Company. 
 
 December 8, 1881. 
 
 The attitude of the United States Government is now perfectly well 
 defined. It has decided to interfere for the purpose of putting an end 
 to the conflict between the two southern republics, and of enforcing a 
 peace, having for its basis the principles of the memorandum addressed 
 by Mr. Hurlbut to General Lynch on the fourth day of- August, 1881, 
 that is to say, " without any cession of territory on the part of Peru, but 
 with the payment of a reasonable war indemnity to Chili? 
 
 In the anticipation of this contingency, Mr. Guillaume proposed to 
 the United States, on the 27th day of September, 1880, through Mr. E. 
 Randall, a programme whose execution was guaranteed, at the request 
 of the minister of state, by the Credit Industriel, and which is now 
 guaranteed by the Financial and Commercial Company of the Pacific, 
 acting in its stead. (See letter of October, 1880.) 
 
 This programme, which was somewhat defective, owing to the fact 
 that certain rights of third parties were to be protected, was somewhat 
 modified and corrected in July, 1881, and has been finally prepared in 
 a permanent form as follows : 
 
 It is upon this programme, whose execution has been formally guar- 
 anteed, that the following authorities have based their action : 
 
 On the one hand the Washington Cabinet, in order to offer a war in- 
 demnity to Chili; on the other hand, President Garcia Calderon, in 
 order to affirm and declare, over his own signature, that he was pre- 
 pared to pay said indemnity. 
 
 Consequently the Pacific Company must be able to fulfill its engage- 
 ments as soon as it shall receive notice to do so, since present events 
 concern, in a manner, it alone. 
 
 It is evident that if everything went on according to the wishes of 
 the Pacific Company, that is to say, if Chili should accept either, purely 
 and simply, the contingent amount for which provision is made in the 
 programme, or should be willing to give her signature to a loan which, 
 on the basis of an annual payment of £550,000, may be raised to 
 £8,000,000 net against the assignment of the said payment, nothing 
 would be easier, because, in the first case, the amount yielded by guano 
 and nitrate exceed the sums to be guaranteed nearly fourfold; and be- 
 
 S. Ex. 79—47 
 
738 AFFAIRS IN CHILI, PERU, AND BOLIVIA 
 
 cause, in the second case, a loan issued with the signature of Chili would 
 be taken up so rapidly that the issuing syndicate would do well to con- 
 sider whether it would not be to its own interest to take the whole 
 amount of said loan, and to dispose of it afterwards at the stock ex- 
 change. 
 
 Political events, however, often deceive all foresight, and particularly 
 in the present case must we make allowance for mistakes in calcula- 
 tion. 
 
 Everybody knows, for it has been superabundantly demonstrated by 
 facts, that Chili ardently desires to annex the province of Tarapaca. 
 
 If that state is forced to conclude a peace without being permitted to 
 annex any territory, it is to be expected that it will raise all imaginable 
 difficulties, among others that it will require the promised payment of 
 a war indemnity, while refusing its signature to a loan, since such a re- 
 fusal, as Chili is probably aware, may be of a nature to cause the fail- 
 ure of the whole combination. 
 
 Chili may be told that if she had kept Tarapaca, she would have 
 been obliged to lend her signature, if she had desired to negotiate a 
 loan, that is to say, to discount the amount imposed by her upon the, 
 guano and nitrate deposits ; that consequently nothing abnormal is 
 asked of her ; that, in fact, if guano and nitrate are to serve for the 
 payment of the war indemnity, which she claims, she cannot requirf 
 such payment, except on condition of pledging herself by signing bouds> 
 for the payment of principal and interest, in case that which has served 
 as security should disappear or become no longer available. i 
 
 Chili can with difficulty refute this argument, but she may easily 
 answer that ; if she had kept Tarapaca, her intention was not to n< 
 gotiate any loan for the sake of not increasing her liabilities in case o 
 the exhaustion or unavailability of the guano and nitrate. r 
 
 The Pacific Company may therefore content itself with an annua^ 
 payment. 
 
 Here too, however, Chili may raise a new difficulty by demanding, a; 
 will be just, to occupy and work the deposits herself by way of a guar,, 
 antee. This will create a new difficulty, for occupation on such condij 
 tions will be equivalent to annexation, not to mention the fact tha, 
 Chili will wish to intrust the working of the deposits to a house of he: 
 own choice. \, 
 
 There is but one means to overcome this obstacle, and that is to oflfe 
 and guarantee the payment of the war indemnity in a number of relia, 
 ble and fixed annuities, in case of Chili's refusal to lend her signaturi 
 to a loan. 
 
 And as Chili will not be contented with exacting for herself, but wil 
 also wish to exact for the bondholders, in order to increase the difficulty 
 owing/to her anger at being expelled from Tarapaca, the annuities b 
 be guaranteed will have, at the same time, to comprise the indemnity 
 to Chili, the payment of the Peruvian loans, and the amount due t 
 Dreyfus, together with a payment to Peru, since the latter state wi] 
 well understand that if it stipulate for nothing for itself, it will be rur 
 ning the risk of getting nothing. 
 
 The conclusion is that the Pacific Company must provide for the cas 
 of being obliged to propose the purchase of a large quantity of guan 
 and nitrate, for it does not seem to be able, consistently with a due rt 
 gard to the interest of its stockholders, to think for a single instant c 
 abandoning the favorable situation which is apparently created for i, 
 by the course of events. 
 
• AFFAIRS IN CHILI, PERU, AND BOLIVIA. 739 
 
 Let us therefore examine what may be the quantity to be purchased, 
 the price to be offered, and the risks attending the operation. 
 
 PURCHASE SUBSTITUTED FOR CONSIGNMENT. 
 
 1st. Quantity. — In the programme an annual payment has been 
 planned of £550,000 in favor of Chili. 
 
 This sum capitalized at 5 per cent, interest, and one per cent, amortiza- 
 tion, represents, at the rate of 82 per cent, (including commission and 
 expense of emission), the net amount of £8,000,000 in round numbers. 
 This amount has been fixed upon on the hypothesis of a loan bearing 
 the Chilian or Chilio-Peruvian stamp, and estimating — 1st. That that 
 amount could not be exceeded without sacrificing the Peruvian credit- 
 ors. 2d. That inasmuch as the war can hardly have cost the Chilian 
 treasury more than six million pounds sterling (which may easily be 
 verified), the sum of £2,000,000 offered a very reasonable indemnity, 
 especially if we consider the sums which have already been paid by 
 the Peruvians as war contributions, or by the custom-houses. 
 
 As it is hardly probable that Chili will accept less than £8,000,000, 
 <t is this amount which, being divided by the annuity provided for in 
 the programme (£550,000), will determine the number of fixed annuities 
 to be x)aid to Chili in the case above provided for in which that state, 
 'efttsing to lend its signature to a loan, should require the purchase of 
 he guano. 
 
 Fifteen annuities will, therefore, be required in order to pay £8,000,000. 
 i^his gives, as the quantity of guano and nitrate to be purchased, at the 
 ate of £300,000 per annum of the former, and £200,000 of the latter : 
 I ,500,000 tons guano ; 3,000,000 tons nitrate— total, 7,500,000 tons. 
 
 2d. Purchase price. — In 1869 Mr. Dreyfus purchased of the Peruvian 
 » jovernment 2,000,000 tons of guano, at the rate of 36 sols each (round 
 lumbers), or at the fixed rate of exchange of 45 pence per sol, one hun- 
 dred and sixty-two francs and fifty centimes, or six pounds ten shillings 
 iger ton. 
 
 el In 1876 the Peruvian Company took the consignment of 1,900,000 
 tons of guano at the ra.te of a forfeit for expenses of four pounds fifteen 
 Shillings, plus ten shillings for expenses of * * * [illegible]. The 
 ^average selling prices, with competition, and without considering the 
 Qualities, amounting to £9 10s. The net amount yielded by each ton 
 was therefore £4 5s. 
 
 In 1880 Mr. Dreyfus accepted, with undisguised joy, a settlement of 
 lis claim against Peru in guano at £5 per ton. Knowiug, first, that 
 ilr. Dreyfus realized, with his monopoly, at least £2 profit on each ton 
 purchased bv him at £6 10*. 
 
 2. That the Peruvian Guano Company realized at least, with compe- 
 tition, £1 profit on each ton, yielding net £4 m. 
 
 3d. That Mr. Dreyfus expected to realize at least £2, with competi- 
 tion, 'on each ton accepted by him, at the rate of £5— £15 15. 
 
 It may be confidently asserted that the average yielded by these 
 iree amounts (£5 5) represents the price at which all the guano in Peru 
 fey be purchased, not only without risk, but with a profit of more than 
 E2 per ton it being understood that that price is for a standard of 7 
 Ber cent, of azote and 14 per cent, phosphoric acid, and that a monopoly 
 h selling is to be enjoyed. 
 As to innate, its selling price has always been proportioned to that 
 
V40 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 of guano ; that is to say, between £16 and £14, the highest price hav- 
 ing been £16, which was during the time of the monopoly of guano un- 
 der Mr. Dreyfus, and the lowest having been £14, at the time when 
 there was competition. 
 
 If we may take as an average selling price, knowing that nitrate costs 
 about £10 i'or manufacturing, transportation, and sale, we may confi- 
 dently fix the purchase price at £8, with the certainty of £2 profit per 
 ton, providing always that the article be of uniformly good quality. 
 
 3d. Bisks. — The trade in guano and nitrate being a cash one, presents 
 no risks in itself. The only drawbacks to be expected in the case of a 
 very large operation, at long time, are those offered by the competition 
 of fertilizers in consequence of improvements in chemistry, or by the 
 increase of necessary expenditures owing to high freights. There have 
 been no others, for European agriculture (and this will soon be the case 
 with that of America) cannot do without fertilizing material, and calls 
 for increased quantities every year. The price paid, moreover, is in 
 proportion to the quality. 
 
 POSSIBLE COMPETITION. 
 
 In addition to the barn-yard, the pigeon-house, and the privy, the 
 manure yielded by which is necessarily limited in amount, all other fer- 
 tilizers need, in order to be rendered serviceable, to be artificially en- 
 riched with azote and phosphoric acid, or else with substances taken 
 from guano itself, or with chemical productions. 
 
 It is, however, to be remarked that azote and phosphoric acid cost, 
 when manufactured and added to poor fertilizers, almost as much as the 
 same elements do when sold in nitrate and guano, not to mention the 
 fact that it has been proved, not once, but a thousand times, that azote 
 and phosphoric acid, when artificially added to fertilizers, are far from 
 having the same fertilizing properties that they do when naturally con- 
 tained in guano and nitrate. 
 
 Consequently before the competition of the rivals of guano and ni- 
 trate can become at all formidable, two conditions must be fulfilled, 
 which are now admitted to be impossible: First, the manufacture at an 
 extremely low price, and in enormous quantities, of azote and phos- 
 phoric acid ; second, the artificial addition of these two elements, equal- 
 ing their natural formation and combination in guano. 
 
 More than fifteen years will certainly be required before such a result 
 can be reached, and in order to convince oneself of this fact, it is suffi- 
 cient to call to mind the great number of efforts which have been made 
 for this purpose, and their constant failure. 
 
 High freights. — An increase in the rate of freights may seem to be prob- 
 able, owing to the general tendency to substitute steam-vessels for those 
 propelled by sails. 
 
 In the first place, guano and nitrate make a bad cargo for iron-built' 
 steam-vessels. Hence, as long as there is any guano and nitrate, it is 
 certain that there will be sailing-vessels to carry these substances, be- 
 cause the cost of construction of a sailing-vessel being relatively small 
 and freights being certain, it will always be to the interest of ship- 
 owners to use them. 
 
 If the grain of California, cotton, and wool are conveyed by steam 
 more and more every year, this is not owing to any revolution in the 
 merchant marine, but only to speculation, which demands speedy ar- 
 rivals in consequence of sales in which the goods sold are to be de- 
 livered at a fixed time, and of competition ; these cases will never arise 
 
AFFAIRS IN CHILI, PERU, AND BOLIVIA. 741 
 
 for guano, which is without a competitor, and with which the markets 
 can readily be stocked a long time beforehand, as prices are fixed and 
 the article does not deteriorate. 
 
 Yet, admitting for an instant, that sailing-vessels are to disappear, 
 will the consequence be that freights by steamers will be enhanced ? 
 This is very doubtful, because as a steam-vessel can make two trips 
 while a sailing-vessel is making one, the former can put its freights at 
 the same figure, owing to the fact that the crew is paid for two trips 
 while they would be paid for but one on board of a sailing-vessel. 
 Moreover the rates of insurance on board of a steamer are considerably 
 lower than they are on board of a sailing-vessel. The fact, besides, has 
 been already demonstrated by the grain of California, which is con- 
 veyed by steamers at the same rates as by sailing-vessels. 
 
 In addition to which the substitution of steamers for sailing-vessels 
 will necessarily increase the consumption of coal, and consequently its 
 transportation to the southern seas, which will render very advanta- 
 geous rates of freight possible. 
 
 Finally, in six years a ship-canal will have been built through the 
 Isthmus of Panama. As the distance between Peru and Europe will 
 thereby be considerably diminished, the necessary consequence will be 
 a reduction in the rates of freight between those countries. 
 
 Thus all the probabilities are in favor of a reduction in the rates of 
 freight, rather than of an increase of the same, within a period of fifteen 
 years. 
 
 To sum up : 
 
 The United States and Peru have assumed their present attitude of 
 resistance to the pretensions of Chili, basing their action upon formal 
 engagements of the Credit Industriel. 
 
 The Pacific Company, which has assumed the engagements of the Cr6dit 
 Industriel, must therefore, from proper regard both for its own stand- 
 ing and its responsibility to the stockholders, who have placed confi- 
 dence in its promise to secure the working of the guano and nitrate, 
 prepare to carry out the programme of September 27, 1880, either in the 
 form of a consignment with a loan, or of a purchase at a fixed price. 
 
 Whatever may be the solution of the question, the experience of the 
 past and the conditions of the future clearly show that there is no risk 
 save that of gaining a little more or a little less, and that it is even, 
 possible that more may be gained in the form of a purchase than in that 
 of a consignment. 
 
 No. 441. 
 
 Note. — The following extracts are taken from the Official Registers of the 
 Department, and show that the several communications therein indicated 
 were received in the ordinary course of business, and belong to the files of 
 the Department. A careful search fails to show that they are now in the 
 Department : 
 
 Mr. Shipherd to Mr. Blaine, May 21, 1881 : 
 
 "Peruvian Company organized for the purpose of paying the claims 
 of American, citizens against Peru for violation of guano contracts, 
 foreign bondholders, Chilian war indemnity, &c, providing Peru will 
 give it the right to work guano-beds, &c. ; prospectus of company with 
 other papers inclosed; requests protection of the United States." 
 
742 AFFAIRS IN CHILI, PERU, AND BOLIVIA. 
 
 Mr. Shipherd to Mr. Blaine, May 25, 1881: 
 
 " Peruvian Company, prospectus of, with other papers inclosed; asks 
 that the documents be presented to Mr. Hurlbut, and that he be granted 
 an interview before Ministers Kilpatrick and Hurlbut go to their 
 posts." 
 
 Mr. Shipherd to Mr. Blaine, May 31, 1881 : 
 
 "Peruvian Company refers to conversation had with the United States 
 minister to Peru, and states that they are ready to advance money to 
 Chili, &c, providing the United States will support them in their legal 
 and equitable rights, &c. ; desires a personal discussion with President 
 and Secretary of State relative to." 
 
 Mr. Shipherd to Mr. Blaine, June 4, 1881 : 
 
 " Peruvian Company, transmits letter of 2d instant, addressed to S. A. 
 Hurlbut, United States minister to Peru, giving his observations con- 
 cerning the plans, intentions, and wishes of the company in their claim 
 to the ownership of the guano deposits discovered by Cochet, &c, and 
 requesting minister's comments thereon." 
 
 Mr. Shipherd to Mr. Blaine, June 21, 1881: 
 
 " Peruvian Company submits a translated reprint of an old Peruvian 
 pamphlet relative to Cochet guano claim." 
 
 Mr.. Fisher to Mr. Evarts, July 13, 1879 : 
 
 "Xeutrality of the United States in the Chili and Peru-Bohvian war; 
 torpedo-boat shipped from the United States to Peru was seized by re- 
 quest of Chiban consul at Panama ; other shipments of similar nature 
 are expected, suggests that the United States consul at Aspinwall be 
 instructed to examine suspicious-looking packages." 
 
 Same to same, July 11, 1879 : 
 
 '• War between Chili and Peru.Bolivia ; progress of recent engage- 
 ments ; general review of the position of the belhgerents." 
 
 Same to same, November 7, 1879: 
 
 "War between Chili and Peru-Bolivia; reports progress of. - ' 
 
47th Congress, ) SENATE. ( Ex. Doc. 79, 
 
 1st Session. ) ) Part 2. 
 
 MESSAGE 
 
 FROM THE 
 
 PRESIDENT OF THE UNITED STATES, 
 
 TRANSMITTING, 
 
 In further' response to the Senate resolution of December 13, 1881, a report 
 of the Secretary of State, embodying the purport of a recent telegram from 
 the special envoy of the United States, setting forth the conditions of peace 
 presented by Chili. 
 
 January 27, 1882. — Eeail and referred to the Committee on Foreign Relations and 
 
 ordered to be printed. 
 
 To the Senate of the United States : 
 
 I transmit herewith, in further response to the Senate resolution of 
 the 13th December, 1881, a report of the Secretary of State, embodying 
 the purport of a recent telegram from the special envoy of the United 
 States, setting forth the conditions of peace presented by Ghili. 
 
 CHESTER A. ARTHUR. 
 Executive Mansion, 
 
 Washington, January 27, 1882. 
 
 To the President : 
 
 In further response to the resolution of the Senate of the 13th ultimo, 
 calling for correspondence touching affairs in and between Chili and 
 Peru, the Secretary of State has the honor to lay before the President 
 the purport of a cipher telegram from the special envoy lately sent out 
 to those countries. 
 
 Mr. Trescot, in this telegram, reports that he has had several confi- 
 dential conferences with the minister for foreign affairs of Chili ; that 
 the Chilian Government disclaims any intention of offending the Gov- 
 ernment of the United States in the arrest of President Calderon and 
 his removal to Chilian territory; that the good offices of the United 
 States will be accepted by Chili; and that the Chilian authorities will 
 facilitate conference between the United States' special envoy and the 
 provisional government of Peru, with the exception of Sefior Calderon. 
 The terms of peace presented by Chili embrace the following points : 
 Absolute cession of the Tarapacd district and, in addition thereto, the 
 payment of an indemnity of twenty millions, payable in ten years, dur- 
 ing all of which time the positive occupation of Arica by Chili is re- 
 quired, and, should the indemnity be unpaid, Arica is also to be ceded 
 to Chili, and, besides this, Chili is to appropriate the guano deposits of 
 the Lobos Islands. In event of Peru refusing the conditions named, the 
 Chilian Government would decline any further proffer of the friendly 
 interference of the United States. 
 
2 AFFAIRS IN CHILI, PEEU, AND BOLIVIA. 
 
 The remainder of this telegram is obscure, and it is uncertain whether 
 the Department of State is able to translate from the cipher the exact 
 language, or even to obtain the sense of the sender. For this reason, 
 as well as from a wish to avoid disclosing the cipher of the Department, 
 the substance only of the dispatch is sent. 
 Bespectfully submitted. 
 
 FRBD'K T. FRELIKGHTJYSEST. 
 Department of State, 
 
 Washington, January 27, 1882. 
 
47th Congress, l HOUSE OF REPRESENTATIVES. ( Ex. Doc. 
 
 1st Session. j \ No. 68. 
 
 I 
 
 PEACE BETWEEN GHILI AND PERU AND BOLIVIA. 
 
 MESSAGE 
 
 FROM THE 
 
 PRESIDENT OE THE UNITED STATES, 
 
 TRANSMITTING 
 
 A report from the Secretary of State, in response to a resolution of the 
 House of Representatives, touching the efforts of the United States to 
 bring about peace between Chili and Peru and Bolivia. 
 
 January 26, 1882. — Referred to the Committee on Foreign Affairs and ordered to be 
 
 printed. 
 
 To the House of Representatives : 
 
 I transmit herewith a report of the Secretary of State, with accom- 
 panying papers, furnished in response to the resolution of the House of 
 Representatives of the 24th January, calling for correspondence touch- 
 ing the efforts of this government to bring about peace between Chili 
 and Peru and Bolivia, and touching claims against or contracts respect- 
 ing either of the belligerent governments. 
 
 CHESTER A. ARTHUR. 
 
 Executive Mansion, 
 
 Washington, January 26, 1882. 
 
 To the President: 
 
 The Secretary of State, to whom was referred the resolution of the 
 House of Representatives of the 24th instant, requesting the President, 
 "if, in his opinion, it be not incompatible with the public interest, to 
 communicate to the House all correspondence between the Government 
 of the United States and its diplomatic and other agents, or between 
 this government and European governments, occurring since the first 
 day of April, 1879, except such as has been, already communicated to 
 Congress, relating to the efforts of this government to bring about peace 
 between Chili and Peru and Bolivia, and all communications of any 
 nature made by our government to either of those countries in relation 
 to the war; and also copies of all communications and documents from 
 diplomatic agents, or from any private individuals, companies, or cor- 
 porations, concerning any claims against or contracts respecting either 
 of the belligerent governments," has the honor to lay before the Presi- 
 dent the following correspondence, in answer to that resolution. 
 
Z PEACE BETWEEN CHILI AND PERU AND BOLIVIA. 
 
 In response to a resolution of the Senate of the 13th of December 
 last, the Secretary, on the 24th instant, had the honor to transmit to 
 the President the same correspondence which is here inclosed, and he 
 respectfully refers to the letter covering those papers for a description 
 of their nature and character. 
 
 Except as shown in the inclosed papers, the Secretary of State knows 
 of no papers on file in this department relating to claims against or con- 
 tracts respecting either of the belligerent governments. 
 
 Respectfully submitted. 
 
 FRED'K T. FRELE5TGHTJYSEN. 
 
 Department of State, 
 
 Washington, January 26, 1882. 
 
 [For papers referred to above, see Senate Executive Document No. 
 79, first session Forty-seventh Congress.] 
 
47th Conoress, ) HOUSE OF REPRESENTATIVES. ( Ex. Doc. ( 
 
 Is* Session. } \ Part 2. 
 
 THE WAR ON THE PACIFIC. 
 
 MESSAGE 
 
 FROM THE 
 
 PRESIDENT OF THE UNITED STATES, 
 
 TRANSMITTING 
 
 A communication from the Secretary of State, in response to a resolution of 
 the House of Representatives, requesting a further compliance with the 
 call for correspondence on the tear on the Pacific. 
 
 February17, 1882. — Referred to the Committee on Foreign Affairs and ordered to he 
 
 printed. 
 
 To the House of Representatives : 
 
 In answer to the resolution of the House of Representatives of the 
 6th instant, requesting a further compliance with its call for correspon- 
 dence respecting the war on the Pacific, I transmit herewith a report 
 of the Secretary of State and its accompanying papers. 
 
 CHESTER A. ARTHUR. 
 Executive Mansion, 
 
 Washington, February 17, 1882. 
 
 Department of State, 
 Washington, February 17, 1882. 
 
 The Secretary of State, to whom was referred the resolution of the 
 House of Representatives of the 6th instant, requesting the President 
 " in further compliance with the resolution of the House of the 24th 
 ultimo, to furnish this House with a complete transcript of the letters 
 of Jacob R. Shipherd, esq., of New York, dated June 2, August 19, 
 September 28, and November 15, 1881, and of the replies thereto now in 
 the files of the Department of State, also copies of any other letters al- 
 ready communicated, from which names of persons and firms have been 
 omitted, and that the President be requested to inform this House what 
 measures have been taken to recover the letters declared to be missing 
 from the files of the Department," has the honor to report to the Presi- 
 dent as follows : 
 
 1st. That complete transcripts of the letters referred to in the reso- 
 lution by names and dates, and of other letters already communicated 
 
2 WAR ON THE PACIFIC. 
 
 from which the names of persons and firms have been omitted, are 
 herewith returned, together with a list of the same. 
 
 2d. That the only reply on file in this Department to the said letters 
 of Jacob E. Shipherd is dated December 17, 1881, and is herewith re- 
 turned. 
 
 3d. The measures taken to recover the letters declared to be missing 
 from the files of the Department were a careful search in the files and 
 archives of the Department, and a request for similar searches made to 
 all persons connected, or formerly connected with the Department, into 
 whose possession said letters might have come in the course of business. 
 It is believed that in all cases when such requests were made searches 
 were made which proved to be fruitless. The search in the Department, 
 as has already been reported, was equally fruitless. 
 
 Respectfully submitted. 
 
 FEED'K T. FRELINGHTTYSEX. 
 
 The President. 
 
 LIST OF ACCOMPANYING PAPERS. 
 
 No. 1. Mr. Christancy to Mr. Evarts, No. 178 Jane 19, 1880. 
 
 No. 2. Same to same, No. 183 July 5, 1880. 
 
 No. 3. Same to same May 4, 1881. 
 
 No. 4. Mr. Shipherd to Mr. Hurlbut June 2, 1881. 
 
 No. 5. Same to same June 2, 1881. 
 
 No. 6. Same to same August 19, 1881. 
 
 No. 7. Mr. Camacho to Mr. Arizola August 20, 1881. 
 
 No. 8. Mr. Shipherd to Mr. Hurlbut September 19, 1881. 
 
 No. 9. Same to same September 28, 1881. 
 
 No. 10. Mr. Shipherd to Mr. Blaine October 10, 1881. 
 
 No. 11. Mr. Shipherd to Mr. Kilpatrick October 19, 1881. 
 
 No. 12. Mr. Shipherd to Mr. Hurlbut October 27, 1881. 
 
 No. 13. Mr. Hurlbut to Mr. Blaine, No. 25 November 2, 1881. 
 
 No. 14. Mr. Arizola to Mr. Shipherd November 9, 1881. 
 
 No. 15. Mr. Shipherd to Mr. Hurlbut November 15, 1881- 
 
 No. 16. Same to same November 15, 1881. 
 
 No. 17. Same to same November 16, 1881. 
 
 No. 18. Mr. Hurlbut to Mr. Blaine, No. 28 November 23, 1881. 
 
 No. 19. Mr. Shipherd to Mr. Hurlbut November 26, 1881. 
 
 No. 20. Same to same November 29, 1881. 
 
 No. 21. Mr. Hurlbut to Mr. Shipherd December 17, 1881. 
 
CORRESPONDENCE. 
 
 No. 1. 
 
 [A complete transcript of the dispatch on pages 372-373 of Senate Ex. Doc. No. 79, 
 Forty-seventh Congress, first session.] 
 
 No. 266. 
 
 Mr. Ghristiancy to Mr. Evarts. 
 
 No. 178.] Legation of the United States, 
 
 Lima, Peru, June 19, 1880. (Eeceived July 29.) 
 
 Sir : Referring to iny dispatch No. 1 77, on the progress of the war 
 and the prospects of peace, I have to say that no conflict of arms has 
 since taken place, either by sea or land, so far as known here. But on 
 the 17th instant notice was given by the Chilian admiral of the block- 
 ade of Chancay, some 18 miles north of Ancon, and that 48 hours only 
 were given for neutral vessels to quit the port. 
 
 There was, however, an American vessel, the Spartan, Captain Cross- 
 ley, in that port, who represented to me that he could not get on board 
 the necessary ballast in that short time ; and there was also an English 
 vessel in a like situation. I therefore suggested to Captain Brown, of 
 the Alaska, that it might be well for him to see the Chilian admiral on 
 the subject, which he did yesterday and obtained three additional days' 
 time for the purpose, for the benefit of all the neutral vessels in that 
 port. 
 
 1 may, I hope, properly add here that Captain Brown is very highly 
 appreciated by the officers of all the neutral naval vessels here. 
 
 From all the information which has yet reached here, though unofficial 
 (a part of it comes, however, from our consular agent, Nugent, verbally 
 reported by him to the officers of the last English mail steamer from 
 the south), but generally believed here by the foreign legations, as well 
 as by the public at large, the Chilian soldiery committed the most cruel 
 excesses at Arica, upon the capture of that town, killing and robbing in- 
 discriminately all the people they met in the streets and houses of that 
 place, and behaving more like a band of roving savages than like a reg- 
 ularly organized soldiery of a civilized nation, and though they, in a 
 modified sense, respected our flag, so far as our consular agent was con- 
 cerned, not taking the liberty to kill him, yet that they completely 
 stripped him of his personal property, taking even his clothing. 
 
 Such are the reports, the truth of which, however, I cannot vouch for. 
 The consular agent has not yet written me, or rather I have received 
 nothing from him. Some allowance, doubtless, must be made for the 
 license of the soldiery in a place taken by storm. But their conduct 
 seems, so far as property was concerned, to have been the same as at 
 the taking of Mollendo, when there was no resistance and no opposing 
 ' military force. 
 
 For the question of peace, I refer you to my next dispatch, No. 179. 
 I haA r e, &c, 
 
 I. P. CHEISTIANCY. 
 
4 WAR ON THE PACIFIC. 
 
 No. 2. 
 
 [A complete transcript of the dispatch on pages 379-381 of Senate Ex. Doc. No. 79, 
 Forty-seventh Congress, first session.] 
 
 No. 269. 
 
 Mr. Christiancy to Mr. Evarts. 
 
 No. 183.] Legation of the United States, 
 
 Lima, Peru, July 5, 1880. (Eeceivecl August 11.) 
 
 Sir: Beferring to my No. 179, on the progress of the war and the 
 question of peace, I have the honor to inform you that no further opera- 
 tions have taken place on land. But we have some more reliable in- 
 formation of the battle of Tacna, and some which I think reliable of the 
 taking of Arica and of the conduct of the Chilian soldiery at Tacna and 
 Arica after all the fighting had ceased. Most of this information upon 
 which I rely was given me by Mr. Emilio Larrien, French consular agent 
 for Arica and Tacna, who was at Tacna at the time of the battle and the 
 next day, and went to Arica a few days after, and who came up on our 
 frigate, Alaska, from Pisco here on my return from Mollendo. He says 
 that the night before the battle of Tacna, Montero, the Peruvian com- 
 mander, insisted upon making, and did, with part of his forces, undertake 
 to make, a night attack upon the Chilian army ; but that, in the darkness 
 and confusion, they mistook their way, wandered about all night, and 
 seen (but not attacked) by the Chilians, were only able to get back to 
 their own lines at daylight, a few minutes before the battle of the 26th 
 opened, and were compelled to go into battle hungry and thirsty and 
 overcome with fatigue; that they nevertheless fought well, as did. tlie 
 whole of the allied force, until the Chilians brought in their reserves of 
 three regiments, when the allies (who had no reserve) came in, when they 
 finally fled; that the allied force did not exceed 7,000 or 7,500 men in the 
 battle, and the Chilian force did not exceed 8,000, but the latter were 
 much better supplied with artillery and Catlings and that the loss on 
 each side in killed and wounded was very nearly equal, but that the 
 Chilian soldiers killed most of the wounded found on the field, which is 
 the true reason why, according to all the accounts even from Chilian 
 sources, the number reported killed of the allied forces was much or 
 more than the number reported wounded; that after the battle all the 
 allied officers found dead upon the field were stripped, robbed, and left 
 naked, and all the privates stripped of every vestige of clothing of any 
 value; that the allied army is completely broken up, Montero retreating 
 with less than 1,000 men in the ranks, and Campero with still less. 
 
 He also says (contrary to the first reports received here) that there 
 was but one day's fighting, the 26th, which was about 6 or 7 miles above 
 Tacna. 
 
 It is right that I should say here that though Mr. Nugent, our con- 
 sular agent at Arica, has not written me, Mr. Merriam, our consul at 
 Iquique, sends me an extract from a letter written by Mr. Nugent to 
 him, dated June 17, in which Mr. Nugent says: 
 
 I was on the field immediately after the fight. * * * The number of killed on 
 both sides is about 3,000, rather more of the Chilian than of the allied forces. The 
 wounded from the two armies between 3,500 and 4,000. 
 
 He was not at Arica when it was taken, but went back there some days' 
 after, and he says: 
 
 I must say that the behavior of the Chilians, both in Tacna and Arica, is most dis- 
 graceful. In Tacna the greater part of the houses have been robbed and many of 
 
WAR ON THE PACIFIC. O 
 
 them destroyed. All the "chnoras" (small farms, gardens, &c.) have been destroyed. 
 Murders are committed every day. In fact, nobody is safe here now. In Arica they 
 murdered the helpless and wounded, and gave very little quarter. In our house, 
 the English consulate, they found a great many refugees, and took them out into the 
 plaza aud had them shot, and then sacked the house. The greater part of the town 
 has been burned and sacked. The house in which I had my consulate was sacked, 
 aud I have been told that the flag was torn down and trampled upon, and during the 
 night they set rire to it and burned it to the ground. I wish you (our consul at Iqui- 
 oue) to advise me as to this matter, and to let me know how to act. As I was not at 
 Arica during the fight, I cannot tell whether it is true as regards the flag, but the per- 
 son in charge of the house represents it to be true. As the house belongs to my family 
 I should like to know whether I have any right to claim or not. If so, please let me 
 know how to make it. 
 
 Now, in reference to this letter of Nugent, I have to say that I learn 
 from Captain Brown, of the Alaska, that when he was at Arica some 
 months ago Nugent kept his consular agency in the same house now 
 spoken ot by Nugent as the British consulate, and not in the house 
 which was burned, Avhich was the house belonging to his grandmother, 
 Mrs. McLean, the best house on the west coast, over which he seems to 
 have placed the American nag, but he may, prior to this affair, have 
 removed his consular agency to this house, with the archives, and, in 
 that event, I think the Chilians committed an outrage upon our gov- 
 ernment, but I must inquire into the facts before I can give him any 
 advice. I do not know whether the American flag was also flying over 
 the house where he formerly kept his office as consular agent, and from 
 which the refugees were taken out and shot upon the plaza. If it turns 
 out that the placing of the American flag upon the McLean house was 
 but a ruse to preserve that house, and he really had not there estab- 
 lished his consular agency, I shall advise him that, as a British subject, 
 he must look for protection and advice to the representatives of his own 
 government. 
 
 Now, as to the conduct of the Chilians at Tacna, I must say that the 
 French consular agent represents it in a somewhat less flagrant form. 
 He says that after the taking of Tacna there was but little of abuse 
 or outrage in the city proper ; some few houses plundered ; two Italians 
 and eight Chinamen killed, and in the suburbs and neighboring chacras 
 general robbery and plunder. 
 
 As to Arica, after the town and forts had been taken and all resist- 
 ance had ceased, the statements of the French consular agent to the 
 outrages committed by the Chilian soldiery are more distinct and posi- 
 tive than those of Mr. Nugent. He says that after Arica had been 
 taken and all resistance had ceased many inhabitants of Arica had 
 taken refuge in the building where oitr consular agent had kept his 
 office (as stated by Captain Brown, of the Alaska), and among them 
 some Peruvian soldiers, who had changed their uniform for citizens' 
 dress, had soughl refuge in that house (whether the American flag was 
 flying then I do not know), and that the Chilian soldiery, apparently 
 under the command of their officers, came to the house and took out 
 indiscriminately 59- men who were there — took them on to the public 
 plaza and there deliberately shot them all. 
 
 This, if true, is not war, but deliberate wholesale murder, unprovoked 
 by anything yet done by the allied forces, and, in the cause of civiliza- 
 tion and humanity, calls for an indignant protest from all civilized 
 nations. 
 
 The blockade of Callao and Ancon. As to these, nothing of impor- 
 tance has taken place since my last, until about 4 o'clock p. m. of the 
 3d July, when the Loa, an armed transport of the Chilian blockading 
 fleet (an iron steamer formerly belonging to the English Pacific Steam 
 
6 AVAK ON THE PACIFIC. 
 
 Navigation Company, but sold to Chili about the beginning of the war), 
 was blown up and sunk by a Peruvian torpedo by a very clever ruse de 
 guerre of the Peruvians. 
 
 It seems (for the special details I have heard are unreliable) that 
 the Peruvians had prepared a small launch on the night of the 2d in- 
 stant with 300 pounds of dynamite in the bottom, and covered this 
 over with a full loading of poultry, ducks, potatoes, and other vegeta- 
 bles, some of which were, by concealed cords, attached to wires con- 
 nected with the dynamite ; that the Loa had been north, probably to 
 Ancon, and was returning to join the fleet; that the Peruvians had, by 
 a row-boat, towed this launch far out towards the Chilian fleet, and as 
 the Loa approached from the north and made towards the launch to 
 capture it, the Peruvian row-boat abandoned the launch and made for 
 the shore, which they reached, a boat sent out by the Loa capturing the 
 launch and taking it up alongside of the Loa as a prize ; but while 
 close to the stern of the Loa and being unloaded the explosion took 
 place, completely blowing off the stern of the Loa, which sunk in four 
 minutes with 140 men, some CO alone of the crew escaping. 
 
 No proposition for peace has yet been received from Chili, and the 
 preparations by the Peruvian Government and the tone of its decrees 
 (which I will endeavor to send you by the next mail) show clearly that 
 Peru is not disposed to offer terms, and that the war may be indefinitely 
 continued. 
 
 The toneof the Chilian press and what is said by Chilian officers tend 
 to show that the popular voice in Chili is for an expedition to Lima, to, 
 dictate terms of peace in the Peruvian capital. 
 I have, &c, 
 
 I. P. CHRISTIANCY. 
 
 No. 3. 
 
 [A complete transcript of the dispatch, Tvith names inserted, as printed on pages 
 485-490 of Senate Ex. Doc. No. 79, Forty-seventh Congress, first session.] 
 
 Xo. 329. 
 
 Mi: Christianey to Mr. Blaine. 
 
 (Personal and confidential.) 
 
 Legation of the United States, 
 Lima, Peru, May i, 1881. (Received May 26.) 
 
 Sir : Referring to my dispatch Xo. 286, dated April 19, 1881, I wish 
 to say confidentially and for your own eye alone (for the present), that, 
 in my opinion, the Chilian Government intend to establish a kind of 
 provincial government of their own over Peru, or so much of it as 
 they can control, which, in my opinion (unless England and France or 
 the United States should actively intervene to prevent it), will be all 
 of Peru west of the first range of Andes, and possibly still more. 
 
 Should such a result take place, I am inclined to think it would be 
 equivalent to establishing the ascending of English over American 
 influence on this coast so long as such a, provincial government should 
 be maintained. 
 
 Some of my reasons for this conclusion will appear in my confidential 
 dispatch Xo. 102, to which I refer ; and so far as American commerce 
 
WAR ON THE PACIFIC. 7 
 
 on this coast may be concerned, the products of Chili are mostly similar 
 to those of our grain-producing States, viz, the cereals. , 
 
 The productions of Peru are very different, though some of them might 
 compete to a considerable extent with those of our country. 
 
 For a general view of the staple productions of Peru, her exports and 
 imports, the value of her trade, and the various questions connected 
 with the increase of our trade here, I refer you to the dispatches of Mr. 
 Gibbs, my predecessor in this legation, Nos. 244 and 284, merely remark- 
 ing that when I came here, the present war had just been declared, and 
 it has been impossible to obtain any reliable statistics of commerce, but 
 that it is evident there has been a great decrease of production and of 
 exports and imports. The Chilians having taken the nitrate districts 
 in the south, the production of this article by Peru is, for the present, 
 practically extinguished ; and Chili having command of the sea, Peru- 
 vian production and exportation of guano have been reduced to a very 
 small fraction of what they were before. But I am informed by persons 
 who profess to have made personal examination, that there are nitrate 
 deposits in the north of Peru, nearly, if not quite, as rich and extensive 
 as those in the south. 
 
 As to unmanufactured cotton, of course no one would think of import- 
 ing it into the United States, as they can afford to pay more for it in 
 England. As to wool and sugar, our tariff is such that its importation 
 into the United States is practically prohibited. Our wool-growers 
 would not consent to a reduction of duty upon ordinary wools ; yet 
 there is one kind of wool — the alpaca — which would not compete at all 
 with home production. But England now takes practically all of this 
 which is produced in Peru and Bolivia ; and it may be worthy of con- 
 sideration whether the mere local interests of Louisiana ought to deprive 
 the whole Union of the benefits which would result from admitting Pe- 
 ruvian sugars at a reduced duty. But, not to go further into particu- 
 lars, it is evident from the nature of the products and exports of Peru, 
 she must find commerce with England, under past and present circum- 
 stances, more advantageous than with the United States, as England 
 takes more of her products in return and thereby helps her more in the 
 way of exchange. 
 
 While railroads were being constructed here, there were considerable 
 importations of locomotives, railroad cars, and railroad plant, and may 
 be again if they ever get a settled government here. There has, also, 
 been a small trade in furniture, the smaller kinds of hardware and cut- 
 lery, and farming implements, machinery, &c. ; though, except niton 
 some of the larger plantations, the demand for farming implements is 
 small, as most of the small agriculturists prefer the antiquated method 
 of plowing their lands with a crooked stick (iron-pointed), and with oxen 
 hitched by the horns. 
 
 Owing mostly to the mountainous character of the country, wagons or 
 wheel carriages are unknown, except in a few of the larger cities (and 
 lumber-wagons on the sugar and rice plantations), the transportation 
 being carried on almost everywhere on the backs of mules and donkeys, 
 much of it even in the cities. 
 
 Another thing which has given to England the control of the com- 
 merce of this entire coast, is the establishment of an excellent line of 
 steamers, at first largely subsidized, but now receiving no direct sub- 
 sidv, and yet doing a profitable business. If the establishment of an 
 American competing line would tend very largely to increase our com- 
 merce here, and to open large markets for our trade, I should he ready 
 to give up my habitual opposition to such subsidies until the line could 
 
8 WAR ON THE PACIFIC. 
 
 compete with opposition -without them. But the other causes which I 
 have mentioned (and many others which might be mentioned), which, 
 aside from and independent of her line of steamers, tend to give Eng- 
 land the control of the commerce of this entire coast, would still con- 
 tinue to operate, and an American line could not be supported without 
 large subsidies. 
 
 The great mass of all classes of Peruvians feel a very strong attach- 
 ment to the United States and a bitter hatred to England. Still, in 
 matters of trade, pecuniary interest will, in the main, control. 
 
 Upon the whole,. my conclusion is, that the only effectual way for the 
 United States to control the commerce of Peru, and to preserve a com- 
 manding or even a material influence along this coast, is either actively 
 to intervene in compelling a settlement of peace upon reasonable terms 
 or to control Peru by a protectorate or by annexation, for either of 
 which I am satisfied at least three-fourths, if not four-fifths, of her pop- 
 ulation would gladly vote to-day. 
 
 Unless the United States take one of these courses in the present 
 emergency, the " Monroe doctrine," so called, will be considered a myth 
 in all the South American states. Whether our government ought so 
 far to depart from its traditions as to adopt any one of these courses is 
 not for me to decide, nor to discuss the means necessary to carry any 
 of these ideas into effect, nor do I express any opinion as to the pro- 
 priety of any such projects, except to say that I should individually be 
 strongly opposed to the idea of annexation, unless it could be had on 
 terms that Peru should, for at least ten years, be subject to a territorial 
 government, on the general plan of our territorial governments, and 
 then to be admitted as States, at the discretion of Congress. In that 
 ten years Peru would, under such a system, become wholly JSTorth 
 American in its ideas. 
 
 These projects have lately been often and strongly pressed upon me 
 by Peruvians, and I find that some of the Catholic clergy, even, are in 
 favor of annexation. My only answer has uniformly been that, in my 
 opinion, our people were not yet disposed to adopt any such policy; 
 but that I would bring the whole matter, at the proper time, to the 
 attention of my government, and be guided by their instructions. 
 
 I ought here to say, by way of introduction to what follows, that with 
 my own personal observation of over two years, and the best sources 
 of information I have been able to obtain, I am unable to discover any 
 sufficient elements here for establishing an independent or even any 
 kind of regular or permanent government of Peru ; certainly no form of 
 popular government by the Peruvians themselves. To state all the 
 grounds for this conclusion would require a volume. I can only refer 
 to a few of the fundamental reasons for this state of things, and for 
 this conclusion. The original immigration into this country from Spain 
 did not consist of men who, like the original colonists in the United 
 States, only sought to better their conditions by honest, persevering in- 
 dustry, but of adventurers, seeking only to make money rapidly, by 
 robbing the original inhabitants and by sudden accumulations of wealth 
 from mines of silver and gold. 
 
 They found here a people well advanced in the arts of agriculture, 
 producing all that was necessary for the support and comfort of the 
 inhabitants (then amounting to some 8,000,000 or 9,000,000 in what is 
 now Peru). They found every foot of ground in a high state of culti- 
 vation, wherever it was possible to bring water for irrigation. They 
 not only seized upon ail these lands and improvements, but made all 
 the inhabitants slaves, and assigned the former owners, by repartia- 
 
WAK ON THE PACIFIC. \) 
 
 mentos, as slaves to the few Spanish immigrants, to each of whom 
 large tracts of country were granted, often amounting to ten, fifteen, 
 or twenty townships, in our country. Many of the original inhabitants 
 were also assigned as slaves to the leading men who settled in the towns 
 and cities. The Spaniard would not labor and did not, but all the labor 
 was done by the enslaved race, and afterwards, in some measure, by 
 African slaves. 
 
 Nearly all the Spanish adventurers either took Indian wives or, 
 which was more common, kept a harem of Indian girls, as many as he 
 chose; but as a general rule they did not treat their children as slaves, 
 but recognized them as their children. In this way it has happened 
 that almost all the people of Peru are of this mixed race, and the mix- 
 ture with the negro ; so that I do not think there are now in the city of 
 Lima two 'hundred families of pure white blood, and probably not in 
 all Peru 200,000 of the white race unmixed. Slavery was only finally 
 abolished here in 1856 (see Article IV of constitution of that year), and. 
 all the old ideas and habits of the people remain. Labor is looked 
 upon as a disgrace and degradation, and as only fit for a servile race. 
 Any man of standing in Lima, to-day, who purchases an article at a 
 store, however small the package, would at once lose caste if he dared 
 to take it home in his hand. He must have a servant to carry if for 
 him. The consequence of all this is, that all the sugar and rice estates, 
 instead of employing free labor, have resorted to the Chinese, who are 
 nominally imported into this country as hired servants, but, except in 
 the cities under the eyes of responsible officers, these Chinese are 
 treated with about the same severity as the slaves were in our South- 
 ern States, and in many respects worse, as they are generally locked 
 in their quarters and kept under guard at night, and so many condi- 
 tions are attached to their contracts of which they do not know the 
 effect, upon which the employer assumes the right to decide, that in 
 some, and I think in most, cases, after the Chinaman has served five 
 or ten years, he finds he has more time yet to serve thau he had when 
 he commenced, and few, if any, ever come out freemen. 
 
 There are many foreigners here, especially Italians, and some of 
 other nationalities, who are not ashamed to live by their labor in some 
 of the various trades. But aside from these and the Chinese, the whole 
 manual labor of Peru is performed mostly by the Indians and races 
 mixed with them, who had been slaves, and by negroes and their mixed 
 descendants, who had also been of the servile race, who constitute at 
 least three-fourths of all the inhabitants of Peru. These, though now 
 nominally free, are almost all treated in the interior (away from the 
 cities) as practically slaves; their rights being almost wholly disre- 
 garded by the authorities, who, in many, if not in most, cases assume 
 to fix the prices of labor of various kinds, which is also, to some extent, 
 done even in the cities. The wages of these people, since I have been 
 here, have not exceeded from 10 to 20 cents per day in our money. 
 
 It is also from these poor classes of people that all the Peruvian sol- 
 diery were drawn (except the "Lima Reserves," who were temporarily 
 raised for the defense of Lima), and these forces were called volunteers; 
 but the. way they were made to volunteer was for officers to go through 
 the country with an armed escort, and compel the poor fellows to fall 
 in. If" (hey refused, they were taken by force, tied together, and put 
 on the cars, or compelled to march to Lima. I have myself seen scores 
 of such volunteers, thus tied, marching through the streets of Lima. 
 Not a single white man did I ever see in the ranks (though the officers 
 were whites), except the "reserves" above mentioned. All these men 
 
10 WAR ON THE PACIFIC. 
 
 of Indian descent are docile, amiable, and brave, and will fight as long 
 as their officers will stand ; but the officers (all white) fled by scores 
 and hundreds from San Juan and Miraflores, leaving their men to do 
 the same. The battle of the 13th opened at daylight, some 10 miles 
 from Lima, and at 9 o'clock a. m. I saw in the streets of Lima enough 
 Peruvian officers with shoulder-straps to make an entire regiment. It 
 is but right to say here that the Chilian army, though called volunteers, 
 was, much of it, raised in the same way, and from similar mixed races, 
 more largely Indians mixed with whites and less with Africans. (I have 
 seen but few white men in their ranks.) The Indians of Chili and 
 the mixture of Indians and whites are more vigorous, enterprising, des- 
 perate, and cruel than the corresponding races in Peru, partaking 
 more of the Araucanian type; but the Chilian officers were far superior 
 to those of Peru, and less under the blind guidance of the church 
 (though the private soldiers are about equally so), and the government 
 of Chili is composed of more enlightened men, wholly emancipated from 
 the control of the church, and ready to adopt all modern improvements 
 in warfare. 
 
 But to return, after this long digression, to the question of labor and 
 the laboring classes, I must say that, with my democratic and repub- 
 lican ideas, knowing that the great masses of people in all countries 
 always have been and always will be compelled to get their living by 
 the sweat of their brows, and fully believing that the government which 
 best secures the greatest good of the greatest number is to be esteemed 
 the best, I am compelled to estimate the prosperity of every country by 
 the adequacy or inadequacy of the compensation which it enables the 
 great mases of its citizens to obtain for its labor. That country which 
 secures to them the highest compensation is the most prosperous, and 
 that which secures them the least is the worst and least prosperous. 
 
 From what I have already said, it might appear sufficiently evident 
 that the laboring classes in Peru are sunk beyond the hope of redemp- 
 tion. * * * 
 
 Every man naturally looks only to what he deems his own immediate 
 interest or elevation to power; and, when placed in power, he seeks 
 only to enrich himself by the opportunities which his office gives him to 
 appropriate the public funds to his own use. This has become so set- 
 tled a conviction in the public mind that whenever any man obtains 
 office it is at once assumed by the people that such is his object. This 
 opinion is, doubtless, sometimes unjust, but on looking back through 
 the various governments and forms of governments, I am satisfied this 
 conviction is generally well founded. If, for instance (except in a time 
 of war when no administration would dare to entertain any claim), any 
 man had a claim against the government, well or ill founded, he could 
 get it allowed by giving a fair share of it to the President and cabinet 
 officers, and, however good the claim might be, it was seldom allowed 
 without this reward. 
 
 The joint commission got up here by General Hovey, while he was 
 here, in favor of American claims, was no exception to the general rule; 
 and, I am informed, several claims were allowed against Peru, which 
 never should have been allowed at all, or only for a much smaller sum; 
 our minister allowing some special friend, such as S. C. Montjoy, our 
 consul at Lambayeque, to make the arrangements between the claim- 
 ants and the officers of the government, and these claimants paying 
 sometimes 70 per cent, and upwards of their claims, which percentage, 
 to all appearance, must have been shared among all the parties acting 
 in the scheme. 
 
WAR ON THE PACIFIC. » 11 
 
 This, however, is only a sample of the mode in which the public busi- 
 ness has generally been transacted by the various Pertivian Govern- 
 ments here for mauy years past. A few honest men have, from time to 
 time, been in office, who could not thus be bought, but were compelled 
 to retire from office. 
 
 There seems to be no fixed principle of honesty, no idea even of that 
 self sacrificing patriotism v,hich is essential to a proper and honest 
 administration of government. 
 
 Such are the people of Peru. The picture has been but feebly drawn. 
 
 I have only been able to touch the prominent points, the "vestigia." 
 To fill it up would require a large volume, which I have not time to 
 write nor you to read. * * * Chili has been able to secure a more 
 permanent government, and better to enforce financial honesty in her 
 administration, and to preserve her public credit. But the grievances 
 of and impositions upon her laboring classes — the great mass of her 
 people — are essentially the same as in Peru; and the grade of civiliza- 
 tion among the masses even below that of Peru, the church having 
 equal control over them, and committing the same kinds of abuses. 
 
 In short, I would not advise the United States or her people or any 
 other enlightened people to take any stoclc in any of the South Ameri- 
 can republics, unless they can take the controlling stock. This they 
 could easily have iu Peru, if they choose to take it. The disposition 
 of the masses of the people is favorable to the United States. A United 
 States protectorate or annexation would be hailed with delight. Iu 
 the hands or under the control of the United States, Peru would soon 
 again become one of the richest countries of the world. I will not trouble 
 you with her geography, which, if you do not already know, you can read- 
 ily learn. There is enough of the country to make five or six large States, 
 to say nothing of other parts of Peru, which are well known. The eastern 
 slope of the Andes, along the upper branches of the Amazon, is one of 
 the richest agricultural countries in the world ; stocked with the most 
 valuable timber and producing everything which a tropical climate can 
 produce, but at present almost entirely in possession of the wild In- 
 dians ; and I give only the opinion of geologists and that of all intelli- 
 gent travelers when I say that there are still more valuable mines of 
 silver and gold in Peru than in any other country of like extent in the 
 world. And if it belonged to the United States it would not be two 
 years before it would eclipse California, Nevada, Colorado, and all the 
 mining regions along the Pocky Mountains in the prodiiction of the 
 precious metals. 
 
 Fifty thousand enterprising citizens of the United States would con- 
 trol the whole population and make Peru wholly (North) American. 
 
 Peru under the control of our country, we should control all the other 
 republics of South America, and the ''Monroe doctrine" would become 
 a verity. Large markets would be opened to our productions and man- 
 ufactures and a wide field opened for the enterprise of our people. 
 
 Whether all these advantages are sufficient to outweigh the wise tra- 
 ditional policy of our government it is not for me to express an opinion. 
 I only bring the matter to the attention of my government, leaving 
 that government to decide. 
 
 If Peru lay contiguous to the United States, our citizens would soon 
 relieve our government from all responsibility by taking possession of 
 the country, and in due time asking its admission as a part of the 
 United States. 
 
 But, as a single individual, I must declare my utter repugnance to 
 the idea of its incorporation as a part of our Union, until American 
 
12 WAR ON THE PACIFIC. 
 
 ideas first get control of its population. I want no more such discord- 
 ant elements, u*ntil we have digested and assimilated what we have al- 
 ready. 
 
 # # # # # * # 
 
 This letter must be treated as perfectly confidential, for your own 
 eye and that of the President alone. I do not even copy it in the 
 records of the legation, and ask that it may not be placed on file in the 
 Department. My own life, even, would not be safe here for one day if it 
 were made public. 
 I have, &c, 
 
 I. P. CHBISTIAXCY. 
 
 mo. 4. 
 
 [A complete transcript of the letter on page 549 of Senate Ex. Doc. No. 79, Forty- 
 seventh Congress, first session.] 
 
 [Inclosure 4 in No. 25.] 
 
 . Mr. SMpherd to Mr. Hurlbut. 
 
 ZSTew York, 
 10 Spruce street, June 2, 1SS1 . 
 Dear Sir: I have recently written to my trusted friend and former 
 counsel, Charles M. Sturges, esq., of Chicago, inclosing him our pam- 
 phlet and asking his advice concerning the distribution of the Chicago 
 allotment of stock. He is of the well-known Sturges family of the North- 
 western National Bank, and is the counsel of the bank. He can give 
 you accurate and ample information concerning me personally and my 
 business record, and I shall be glad to have you question him as freely 
 as you may desire. 
 
 Our special relations were terminated several years ago, and he ought 
 to speak impartially now. 
 
 Yours, truly, , 
 
 JACOB B. SHIPHEBD. 
 General Htjrlbut. 
 
 No. 5. 
 
 [A complete transcript of the letter on pages 550-552 of Senate Ex. Doc. No. 79, Forty- 
 seventh Congress, first session.] 
 
 [Inclosure 5 in No. 25.] 
 
 Mr. Shiplierd to Mr. Hurlbut. 
 
 New York, 
 10 Spruce street, June 2, 1881. 
 Dear Sir : Our interview, on the 30th ultimo, while satisfactory in 
 general terms, did not include so full a discussion of certain specifica- 
 tions as might have been had, and I supplement it on my side with a 
 few observations upon which I shall be glad to hear your comment. 
 
 First. At the foundation of the whole business lies, in our judgment, 
 the exceptional equity of this claim. 
 
WAR ON THE PACIFIC 13 
 
 It was the European culture of this French chemist that did infinitely 
 more than merely point out heaps of guano not previously localized. 
 For one hundred and fifty years the descendants of Spanish freebooters 
 and cloddish natives had looked upon all these heaps and seen nothing. 
 The value in them would have remained unknown for one hundred and 
 fifty years more if some such scientist as Cochet had not come from the 
 outer world to find it and point it out, and to compel, by persisteut 
 demonstration, the perception of its true character. If an angel from 
 heaven had been seut with a revelation, the boon could not have been 
 greater or more exceptional. It was to Peru at once a new creation and 
 an outright gift. 
 
 Second. The absoluteness of the present right must not be vaguely 
 considered. 
 
 The definition suggested in my draught of points for an agreement is 
 not original, but is borrowed from the comment of Secretary Evarts 
 when this claim was brought to his official notice. 
 
 When Cochet discovered guano he became, under the law, the imme- 
 diate and absolute owner of one-third of all the guano in Peru, and no 
 act or undertaking of the Peruvian people alone thereafter could divest 
 him of that title. At his option and that of his representatives it may 
 either be claimed that his right was to one- third of each separate deposit, 
 or was such that more than two-thirds of the total having been already 
 removed, his right is absolute to every ounce now remaining. Which- 
 ever way the claim is put, the right to seize and hold what now remains 
 must be admitted to be sole, supreme, and indisputable. 
 
 Third. Against a right so lawful, so equitable, so absolute, no defense 
 can be admissible. If Peru is poor it is not Oochet's fault. He has 
 already given her $1,200,000,000, which she has chosen to squander. If 
 her bondholders have relied on guano that was Cochet's and not Peru's, 
 that is merely a case of mistake in title. If Chili has exhausted herself 
 in the endeavor to humble Peruvian pride, such exhaustion discloses no 
 reason why Cochet should pay her bills. The fact that Cochet, as dis- 
 coverer, was entitled to one-third, and the declaration that he was dis- 
 coverer were facts published to all the world by Peru herself, and of 
 facts so important and thus published all the world was bound to take 
 notice. No whine of hardship can be listened to now. 
 
 Fourth. What consideration may have passed between successive 
 owners of this claim in the chain is, of course, immaterial also, provided 
 they have been legal considerations. To the owners for whom the 
 United States Government will speak, if it speaks at all, the cost will 
 not be less than $100,000,000, and that is enough. If earlier sales were 
 for smaller sums, it was only because Peru had denied justice until all 
 hope of justice had expired. The judicial view is the only just view. 
 
 Fifth. The owners of this claim have no other forum than the inter- 
 national, and in that they see only their own government sitting to judge. 
 The President and his constitutional advisers will hear the cause and 
 decree the justice so long denied by the debtor, and will easily enough 
 enforce whatever they decree. 
 
 Sixth. To simplify the situation by removing all issue, we propose 
 the agreement with Peru. If she were strong she would, of course, 
 resist, and make another Landreau record to blister the pages of history, 
 but — 
 
 When the devil was sick, 
 The devil a monk would be. 
 
 And at the moment when the choice must lie between Chilian robbery 
 and the comfortable payment of an admitted debt, even Peru may choose 
 
14 WAR ON THE PACIFIC. 
 
 to pay. It is certaiu that we can make her choose it with eagerness, 
 and so choose it now that she cannot hereafter repudiate. This is prob- 
 ably the first hour since Gochet's rights came into being when they could 
 practically be enforced. 
 
 Seventh. If Peru solemnly confesses judgment in the premises she 
 confesses it under hex own law of priority, a law made expressly for for- 
 eign creditors of the state, and published as such, and the international 
 forum which may undertake to enforce this claim cannot choose but stand 
 on that law. If, thus, the only defendant is estopped and concluded, can 
 third parties be allowed to intervene to defeat the plaintiff 's admitted 
 and adjudged rights? 
 
 Eighth. As to Chili, certainly she cannot, even by absorbing Peru, 
 acquire any greater rights than Peru. What title has she, then, to con- 
 sideration? Secietary Evarts's comment upon this point was: "If 
 Chili attempts to resist Cochet's demand for his own, she does but make 
 herself immediately and directly liable for the whole debt, as for a tor- 
 tious detention." 
 
 Ninth. Thus far, and primarily of the absolute rights. 
 
 If the foregoing suggestions are within the facts, it results : 
 
 1. That the United States Government has now the clear right as 
 against Peru, Chili, and all the world to intervene peremptorily to adjust 
 all questions now pending at Lima. 
 
 2. That it is its duty so to intervene, because it alone can decree and 
 enforce justice in the premises. 
 
 Tenth. There remain then, as always, the no less important questions 
 of expediency and detail, and concerning these it is not necessary to 
 speak at the moment with entire confidence in detail, because advantage 
 may be taken and concession must be made in the face of the facts which 
 will change from day to day. Expediency is, after all, in sound diplo- 
 macy, only another name for exact justice — the j ustice due at the moment 
 to all the interests involved — and it would be premature to decree Anally 
 before all the parties have been finally heard. Certain general rules 
 and certain stable facts, however, may be safely considered in advance. 
 Thus : 
 
 First. Nothing in the present situation need delay a general notifica- 
 tion to all concerned that the United States must deem any arrange- 
 ment to which it is not a controlling party provisional only, and subject 
 to revision at the pleasure of the United States. 
 
 Second. The supremacy of the United States in the premises being 
 first acknowledged, concession in detail may be promised — subject to 
 the limitations of equity. 
 
 Third. The intervention of the United States, if based exclusively 
 upon the property rights of its citizens, involves no chance of political 
 complications present or future, and must command the unqualified re- 
 spect of all governments. 
 
 Fourth. No opportunity for an intervention so safe, so important, and 
 so influential, perhaps, has heretofore occurred in our history, and no 
 administration so favorably situated for moving in like premises has 
 heretofore existed. 
 
 You will, I think, agree with me also that no President, within the 
 memory of men now living, has sat at the head of the government less 
 likely to neglect his official duty on the one hand, or to give way to mere 
 zeal on the other. 
 
 Fifth. No need exists to furnish American money to either Chili or Peru. 
 English and French merchants and bankers are already preparing to 
 make large advances against guano and nitrate to be consigned, Amer- 
 
WAR ON THE PACIFIC. 15 
 
 ican merchants and bankers would gladly enough do likewise if only per- 
 mitted. 
 
 If it is expedient to buy Chili off with $10,000,000, $20,000,000, or any 
 other sum, there will not be the slightest difficulty in arranging the ad- 
 vances from either New York, Paris, or London, upon a purely customary 
 commercial basis. As recently as last January $5,000,000 were placed in 
 a bank in this city by a few American capitalists to be advanced to Peru 
 in the midst of the war against no better security than President Pie- 
 rola's agreement to consign guano, and this money was only withdrawn 
 when the owners of Cochet's claim exhibited it and gave notice that 
 they would attach every cargo that should arrive. 
 
 Sixth. If English, French, and American merchants are content to 
 advance upon Peruvian and Chilian promises, it needs no saying how 
 much more readily and liberally they would advance upon contracts with 
 the Peruvian company, backed by the United States Government. Money 
 would be thrust upon us in excess of all possible uses. 
 
 The third topic is that which concerns the personnel of the Peruvian 
 company, and as I intimated to you the utmost frankness is recognized 
 to be the government's due. 
 
 First. The claim was first purchased of Cochet's sole heir by an Amer- 
 ican merchant long resident at Lima, who discovered it very much as 
 Cochet discovered, guano and who is entitled to like credit and reward, 
 however liberal. 
 
 He sold interests to friends in the United States, who now unite with 
 him in conveying to my clients. These clients, at the proper time, will 
 cause such conveyance to be made for their account directly to the 
 Peruvian company. 
 
 Second. One of the most valuable charters ever created in this country 
 has been secured, and its transfer to my clients will probably be made 
 within twenty days. 
 
 Third. My clients are not so well known that their names could be of 
 special service, and for this reason they prefer to remain temporarily 
 anonymous. Their identity will appear in due course. 
 
 Fourth. I have been intrusted with ample discretion in the matter of 
 organization, and my only instructions are : 
 
 1. To make the executive worthy of the interest involved. 
 
 2. To make it absolutely satisfactory to the Executive of the United 
 States. 
 
 These instructions will control me. 
 
 Fifth. You will perceive at once how easy my task is. I have no stock 
 to float. I have no popular interest to awaken. I have, practically, no 
 money to raise, and, especially, I have no bonds to market. I have only 
 to seek the counsel of the wisest statesmen and financiers of the country 
 and to avail myself of the definitive suggestions of the President, and 
 under such advice to bring together, perhaps, one hundred stockholders, 
 who shall choose from their own number a body of trustees and execu- 
 tive officers competent to administer the guano deposits and the nitrate 
 beds upon an ordinary commercial basis, and out of the proceeds of 
 sales to provide for all the creditors of Peru, and the Peruvian Govern- 
 'ment itself, if necessary. 
 
 Sixth. Whether I am not myself overtasked by this trust the event 
 alone can determine. What the probabilities are those who know my 
 record can, perhaps, advise. If I am directly questioned, I may answer 
 briefly that for twenty years I have been a successful organizer under 
 conditions never so favorable as these. In the midst of the war I organ- 
 ized and administered the Freedmen's Aid Work in the Northwest and 
 
16 WAR ON THE PACIFIC. 
 
 Southwest, covering fifteen States, and then consolidated the dozen 
 organizations of the country into one, and administered the whole. When 
 banking at Chicago and Xew York, I introduced, western town and 
 county bonds to an eastern market and made them popular by millions 
 where they had been unknown or only distrusted. In 1871 1 established 
 at Prankfort-on-the Main — then the investment center of Europe — the 
 first American banking house opened there, and upon a then declining 
 market sold $20,000,000 of new American railway securities in a few 
 months. 
 
 Seventh. Among the representative gentlemen with whom I am 
 alreadj r or shall soon be in confidential negotiation in the premises, 
 I may name such as these: E. D. Morgan, Win. E. Dodge, Hugh 
 McCulloch, Xorvin Green, W. K. Garrison, A. Belmont, S. B. Chitten- 
 den, John Hay, Amasa Stone, William H. Yanderbilt, John Sherman, 
 Eugene Hale, Murat Halstead, Whitelaw Beid, Fisk & Hatch, Samuel 
 Sloan, Marshall Jewell, H.'L. Dawes, S. D. Babcock, John A. Stewart, 
 Jay Cooke, Evarts, Southmayd & Choate, U. S. Grant, A. A. Lowe, J. 
 H. Wade, H. B. Payne, Horace White, David Dows & Co., Joseph 
 Medill, H. B. Hyde, A. S. Hewitt, W. L. Scott, J. D. Cameron, Howard 
 Crosby, Hobson, Hurtado & Co., Sidney Dillon, Morton, Bliss & Co., H. 
 B. Claflin, A. S. Barnes, Henry Hilton, J. and W. Seligman & Co., M. 
 K. Jesup & Co., Drexel, Morgan & Co., William W. Astor, Horace T. 
 Caswell, and out of a list not less select and representative the organi- 
 zation wdl be exclusively made. 
 
 As I intimated to you, with a view to nationalizing the corporation, 
 stock will be allotted to select Usts of the leading capitalists in Boston, 
 Hartford, Philadelphia, Baltimore, Cleveland, Cincinnati, Chicago, and 
 Saint Louis ; such lists to be made under expert local advice, and each 
 city to be represented in the direction; the board of trustees to consist 
 of, say, 21 members. 
 
 The very best executive and administrative talent will be employed, 
 both in Xew York and in Peru, and such relations with the governments 
 of all the countries interested will be cultivated as shall tend above all 
 else to unqualified confidence and respect. 
 
 Eighth. The controlling sentiment of the present proprietors is wholly 
 in accord with all the suggestions you made. While taking advantage 
 of the present opportunity to enforce the definitive recognition of an 
 equitable indebtedness, every movement of the creditor after such rec- 
 ognition should be helpful and friendly, and only so ; and so far from 
 taking any advantage of the inferior legal status of other creditors, we 
 are ready to deal more than bberally with every one. There is enough 
 for all if there is a proper administration, and it is precisely a proper 
 administration we undertake to provide. 
 
 There is no occasion, therefore, for any competition with English or 
 Prench syndicates of merchants or bondholders. We must consign 
 guano and nitrate to England, and we may as well consign to Anthouy, 
 Gibbs & Co. as to any other house. We must consign also to the Con- 
 tinent, and if Dreyfuss & Co. will make fair terms, wo may as well con- 
 sign to them as to others. These concessions not only make these im- 
 portant interests our allies, but render immediately available as our own 
 money all the advances these strong houses already propose to make, 
 and whatever other advances can be used to advantage our Xew York 
 consignees will provide instantly. 
 
 There is absolutely nothing to be done which will not do itself the 
 moment the Washington Government gives notice of its right to su- 
 premacy. 
 
WAR ON THE PACIFIC. 17 
 
 As this note concerns itself with explanations which I should be glad 
 to have reach the President at an early day, I rely upon your permission 
 to forward him a copy at once. 
 
 I shall be particularly obliged if you will use the utmost frankness in 
 such comments and suggestions as may occur to you; above all else we 
 desire to avoid mistakes, and not less to do well than to mean well. 
 I am, sir, your obedient servant, 
 
 JACOB B. SHIPHEBD. 
 The Hon. S. A. Hurlbut, 
 
 United States Minister to Peru, Belvidere, III. 
 
 No. 6. 
 
 [A complete transcript of the letter on pages 552-554 of Senate Ex. Doc. No. 79, Forty- 
 seventh Congress, first session.] 
 
 [Inclosure in No. 25.] 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 Personal.] August 19, 1S81. 
 
 My Dear Sir: When the gentleman to whom the inclosed letter is 
 addressed calls for it, please deliver to him with the letter all the printed 
 inclosures except the one upon which I have written your own name. 
 He is represented to me to be a person of exceptional influence, inti- 
 mately in the confidence of President Calderon. The letter concerns the 
 documents, and the whole are expected to reach at once the Peruvian 
 executive. 
 
 The progress in our case since your departure I will briefly outline. 
 
 By arrangement with the attorneys of the Landreau claim, we treat 
 the two interests for present diplomatic purposes as one to a certain ex- 
 tent. The owners of the Cochet interest will at the proper time absorb- 
 the junior lien so as to protect the equities of the interests involved. 
 
 Among the present active attorneys of the Cochet interest are ex- Sec- 
 retary Boutwell (who is also the senior counsel of the United States in 
 the American and French spoliation claims commission now sitting, and 
 who has prepared a conclusive brief in support of all our demands) ; ex- 
 Senator Cragin, of New Hampshire; Senator Blair, of New Hampshire; 
 and Hon. William E. Chandler, who will probably be Blair's colleague 
 next year; Senator Logan, ex-Senator Oonkling, and others will be added 
 in due course; and from these names you will safely draw your own in- 
 ferences. 
 
 Not only have none of roy expectations been disappointed, but so far 
 they have, as a whole, been far exceeded, and the horizon still widens. 
 
 You are concerned principally to know how we stand at the Depart- 
 ment of State, and I will enter first upon that topic. 
 
 After a preliminary conference betweeu Senator Blair and the Secre- 
 tary of State, I whs telegraphed for, and I went on to Washington. The 
 Senator called for me, and we went, upon invitation, directly to the 
 Secretary's residence, where a most cordial greeting awaited us. The 
 evening was occupied until near midnight and the next forenoon as well. 
 All the phases of the two claims were carefully discussed, and from first 
 to last upon the unqualified postulate that the United States must pro- 
 tect fully all equitable rights of American citizens, wherever vested. 
 H. Ex. 68, pt. 2 2 
 
18 WAR ON THE PACIFIC. 
 
 At the close I was asked to state my immediate wishes, and replied, 
 substantially, as follows: 
 
 "It seems to me that Laiidreau's claim must be deemed adjudicated 
 by Congress and enforced accordingly. 
 
 "The final proofs in the Cochet case are not yet quite in technical 
 form, and until they are no technical examination of the case can be 
 made by the department. Moreover, as to Cochet's interests, we have 
 as yet no grievance to report, and may never have any." 
 
 [Before you will clearly understand the points next made you will 
 need to read the inclosed pamphlet, upon which I have written your 
 name, a translated reprint from the original Spanish copy in our pos- 
 session.] 
 
 I continued: 
 
 "There is no evidence that any issue was ever raised by Cochet not 
 shown in his pamphlet, and by that it appears that he raised two only — 
 the one involving his ri^ht to be declared the true discoverer of guano, 
 and the other concerning a special discovery in the treatment of nitrate 
 bases. Of these the first was overwhelmingly adjudged in his favor, 
 and upon tb at adjudication our case now rests; with the other, which 
 remains undecided, we have no concern. 
 
 "If Cochet was the discoverer of guano, his discovery, as Secretary 
 Evarts observed, vested in him the title to one-third of all the guano in 
 Peru, and he may, at his option, claim one-third of each heap, or any 
 other equitable one-third of the total. This is not a claim, but a title as 
 distinguished from a claim ; aud what descended to his heir, of whom we 
 buy, was property ipso facfn. For this property no demand has been 
 denied, aud presumably none will be. If, when the demand is made by 
 legal and equitable American owners, a refusal follows, then, and not 
 till then, will a conversion accrue, and then, and not till then, will au 
 •original wrong be committed; and this original wrong will be committed 
 -directly upon American citizens, whom it will then be the clear duty of 
 their government to install in their property. 
 
 " But this is not quite all. It is notorious that Chili, Peru, and cer- 
 tain creditors of Peru, are at the very point of apportioning anion;; 
 themselves not only the guano, which is absolutely our property, but 
 the only other available asset of Peru, the nitrate, also. If such appro- 
 priation were allowed, irreparable mischief might result. 
 
 " I therefore ask a preliminary injunction forbidding all progress in 
 the direction of any such apportionment until the Landreau claim aud 
 the Cochet title are first properly recognized and provided for — the for- 
 mer paid as res adjudicata, and the latter allowed or fairly disproved." 
 
 The Secretary instantly responded, '-that you will get, and I will make 
 it my first business." 
 
 On the 2d instant, very soon after, by direction of the Secretary, I 
 was advised that the identical instructions suggested had that day been 
 sent you both by cable and by post, and that I might rely upon the 
 status quo accordingly. 
 
 The inclosed letter to Dr. Arizola is from an eminent friend of Peru, 
 intimately known in executive circles alike at Lima and at Santiago, 
 and, I believe, also at La Paz. He looks upon our overture as the great, 
 the- magnificent opportunity of Peru to retrieve all her sad past; and 
 that you may well understand his view of the case, I have gained per- 
 mission to add to these inclosures a (English) copy of the more impor- 
 tant parts of his dispatch — these of course for your eye only. 
 
 I ought, perhaps, to use informal frankness concerning Elmore, Mr. 
 Calderon's confidential agent here. His principal attention has been 
 
WAR ON THE PACIFIC. 19 
 
 •openly devoted to forwarding the views of a French syndicate, of which 
 Dreyfuss is the head, and a malodorous Cuban by the name of Suarez 
 {he went out in the steamer with you, I am told) is the ostensible agent. 
 The association (and I d'o not get this at second hand) has materially les- 
 sened Elmore's influence in Washington, and as Dreyfuss is synony- 
 mous with Pi6rola, you will need no further hint. 
 
 You perceive that our programme as approved, unqualifiedly, by the 
 department is : 
 
 1. Unqualified demand for payment of the Landreau claim. 
 
 2. Proper attention to the demand about to be made for Cochet's 
 property. 
 
 3. Peremptory stay of all negotiations touching the cession of guano, 
 or nitrate, or territory, pending final adjustment of these American 
 interests. 
 
 I rely upon your good opinion of us to spare us the need of saying 
 what once for all I beg you to understand, that we address ourselves to 
 you as minister only, and neither ask nor wish you to take any attitude 
 toward these claims other than such as your official instructions shall 
 authorize and require. We do confide in your patriotism and love of 
 fair dealing to push with exceptional vigor, if necessary, and to their 
 full logical limit the decisive instructions received, and to leave no gov- 
 ernment and no citizen in doubt that the United States is in dead 
 earnest in the premises, and such vigor, you may be sure, will be as 
 distinctly and as gratefully appreciated by our company as by the 
 Washington government. 
 
 All that need be said under this head is summed up in the assurance 
 that we address ourselves to you in exactly the same manner in which 
 we are welcomed by the Secretary himself; we supply to you the iden- 
 tical information supplied to him, and shall be more than content if you 
 as heartily stand for us at the front as he stands for us at headquarters. 
 
 If you will be so good as to advise me of the safe receipt of this, and 
 the delivery of the inclosures to Dr. Arizola — please see that they are 
 placed only in his own hand — and will favor me with such suggestions 
 as may occur to you, the courtesy will be duly appreciated. 
 I remain, dear sir, very truly yours, 
 
 JACOB E. SHIPHERD. 
 
 No. 7. 
 
 [A complete transcript of the letter on pages 554-557 of Senate Ex. Doc. No. 79, Forty- 
 seventh Congress, tirst session.] 
 
 [Inelosure in No. 25.] 
 
 (Indorsement:) Simon Camacho to Manuel Arizola sent me by Mr. 
 
 Shipherd. 
 
 (Private copy.) 
 
 New York, August 20, 1881. 
 
 My Dear Friend : On presenting the inclosed note to his excellency 
 
 the American minister, you will receive a set of four printed documents, 
 
 two of them bound pamphlets. These, as you will gee, are all private 
 
 and confidential copies of papers, inaccessible to the public. I have 
 
20 WAR ON THE PACIFIC. 
 
 been fortunate enough to obtain them, and to procure them to be sent 
 for entire safety under seal to the American legation. 
 
 These papers hold the key to the one happy solution of all the troubles 
 of Peru which yet remains possible, and I count myself the happiest of 
 men that it is my privilege to place them within the reach of the Peru- 
 vian executive. 
 
 If the scheme now offered had been made in heaven and let down by 
 angles, as was the sheet sent down to Saint Peter, it could not have 
 more perfectly provided for all the present woes of unhapp^ Peru. 
 
 After carefully examining it and adding to what you find printed,, 
 the facts which I shall state in this letter, all of which came to me di- 
 rectly and officially from original sources and may be impbcitly relied 
 on, you will see what an opportunity pitiful heaven has at last sent. 
 
 These are the leading historical facts : 
 
 1. Cochet was the true and first and sole discoverer of the merchant- 
 able value of guano. But for him those vast heaps, more precious than 
 all the gold and silver in the Cordilleras, might have lain dead and 
 neglected to this day. 
 
 The sole intent of the decree of 1833 was to encourage persons to dis- 
 cover to the state sources of wealth within itself, unknown before ; all 
 other discoveries combined made since that clay have not brought to the 
 republic one-fourth the fresb wealth which has come through Cochet; 
 if he be not entitled to the one-third then should no merit ever find re- 
 ward. The whole civilized world with one voice will declare this. 
 
 -!. Happily, indeed, his right has not only never been denied by Peru, 
 but has always been admitted, and was solemnly adjudicated by the 
 government in the report of the commissioners of premiums, as printed 
 on page 13 of the pamphlet I send you, entitled "Truth Demonstrated 
 and Calumny Defeated." See, also, the references upon page 43 of the 
 Prospectus of the Peruvian Company. 
 
 It is only necessary, therefore, in order to make perfect use of the 
 present opportunity, that the executive should be true to itself and to- 
 its own existing record, and recognize facts which it is impossible for 
 any one to deny. The way is easy, plain, and most honorable. 
 
 3. The only dispute Cochet ever had with the government, as shown 
 by his own pamphlet, was over his nitrate discovery, which seems not 
 to have been appreciated, and which is no longer a living question. If 
 an agreement as to the nitrate process could have been reached, he 
 would immediately have received not only the prize awarded him as the 
 discoverer of guano, but necessarily" also, his one third in full and in due 
 course. Unhappily for himself, most happily now for Peru, he would 
 yield nothing, and returned to Prance and died a pauper. 
 
 4. This stubbornness of the great discoverer, and the fact that his 
 only heir, a natural son, Gelacio, born in Lima, was a mere child, and 
 ignorant of his rights till an American brought them to his knowledge 
 less than three years ago, explain in a moment how Providence held all 
 the conditions silent for a generation to open them at this critical mo- 
 ment for Peru's salvation. 
 
 5. Tou will again note the special interposition of Providence. Al- 
 though this great right has lain still so long, nothing of its vitality has 
 been lost. Cochet was solemnly adjudged to be "the true discoverer,'' 
 and thereupon, if not even earlier, he became, in the language of his 
 excellency Mr. Evarts, Secretary of State at Washington last year, and 
 the first lawyer in the United States — "Cochet became immediately the 
 owner in fee absolute of one-third of all the guano in Peru, lowicn and 
 unlnoicn, for being the discoverer of its value his right was inseparable 
 
WAR ON THE PACIFIC. 21 
 
 from the thing wherever found, and that ownership could never be ex- 
 tinguished or limited, save by his own act." 
 
 6. This ownership, which, as you see, is no mere claim, but an adjudi- 
 cated and undisputed title, had no value to the helpless heir — ignorant 
 and penniless and unknown. American capitalists purchased it, how- 
 ever, and are now the owners of every pound of guano left in Peru, and 
 of the money value of so much as has been sold in excess of the two- 
 thirds belonging to the republic. 
 
 Their purchase is as valid as if they had bought land and buildings, 
 and their government has, of course, the right and the duty to see them 
 protected, and you may be sure it will thoroughly perform that duty 
 and unhesitatingly exercise that right. 
 
 7. Xo demand has yet been made upon the Peruvian Government for 
 the possession of this guano, but such a demand will be made in a few 
 weeks by a commissioner to be sent out. 
 
 If the executive shall accede to the demand and freely consent that 
 the owners of this great property may take it at once without the hin- 
 derance of Peru, then these owners must demand it of the Chilians, and 
 if the Chilians detain it for an hour they will make themselves liable in- 
 stantly for a tortious conversion, and you may be sure the Washington 
 Government will make short work with them. Upon this point the own- 
 ers of this great interest have long ago received the most sweeping as- 
 surances directly from the American Executive. 
 
 s. Xow we may close the circuit. To consent that this American cor- 
 poration shall take as a right the identical guano and nitrate which 
 otherwise Chili will take anyhow, is all that is necessary to relieve Peru 
 instantly and permanently by taking shelter under the broad wing of 
 the United States and compelling Chili to settle all the rest with the 
 United States. 
 
 9. If Peru — I do not admit the possibility — should refuse to deliver 
 the guano demanded, and to pay at once the value of so much as is miss^ 
 ing, then this refusal would be an original denial of justice directly to 
 American citizens, and their government would then enforce their right 
 against Peru herself, and sad indeed would be her condition then. 
 
 10. As to the Landreau claim, it, as you see, has been fully adjudi- 
 cated by the American Congress, and the American minister at Lima 
 has been peremptorily instructed to give notice that it can no longer be 
 discussed, but must be paid. 
 
 11. The scheme of the conservative owners of Cochet's rights is, as 
 you will see by the proposed treaty, the substitution of an insolvent as- 
 signment to creditors for the cruel humiliations of war. 
 
 The Cochet title has unquestionably priority, and, besides, he is the 
 largest creditor. There is, therefore, every reason why his representa- 
 tives should demand the control of the assets; and they show a hand- 
 some liberality in their offer to provide for all other creditors, including 
 Chili, whom the United States is willing to recognize as a creditor for 
 a reasonable Avar indemnity. This Peruvian Company, then, itself the 
 chief and the first creditor, will take the guano and the nitrate in trust 
 only for the benefit of all creditors, fl may say to you privately that 
 the company will protect you from any trouble with the Landreau inter- 
 est, and that you may treat the two interests as one.] The company, 
 then, being a creditor for, say, $1,000,000,000, is willing to restrict its 
 preference to 6 per cent, upon one-half the sum (say, $30,000,000 an- 
 nually), and out of the remainder of the income to create a sinking fund 
 to retire all other indebtedness. It is ready to issue its scrip at par for 
 
22 WAR ON THE PACIFIC. 
 
 all Peruvian paper, and thus to restore the government to practical 
 solvency at once. 
 
 12. More than this, the manager of the syndicate, who will be the per- 
 manent president of the company, and who, with his immediate friends r 
 will permanently control the entire policy of the company, is known to 
 me and to Consul Tracy, and we have undoubted assurance that from 
 the first the company will be prepared to render every assistance to the 
 Peruvian executive which may be necessary to put it upon a proper foot- 
 ing in the first months of a new beginning. The owners of the company 
 are among the most solid, safe, and conservative of men, and have 
 framed a policy to last at least fifty years, and to secure the largest 
 prosperity in the future, resting upon the most secure foundations of 
 order, industry, commerce, and peace. They have commercial plans 
 extending far beyond the limits of Peru. Their ambition is to make 
 Peru the model South American Eepublic, and to repeat there all the 
 best commercial methods known in this country. They are gentlemen 
 of the purest character and of the most honorable ideals, and will admit 
 to their circle none of any less honorable type. 
 
 13. I may say further concerning these gentlemen, whose identity is 
 known to me in detail, that they include the nearest personal and politi- 
 cal friends of the Executive, and not only of the present Executive, but 
 of the Vice-President as well, who will succeed to the Presidency in case 
 of President Garfield's death. They also include representatives of the 
 most powerful money corporations in the country, and you may rest ab- 
 solutely assured that in dealing with them the Peruvian executive is for 
 all practical purposes dealing directly with the power and the honesty 
 of the United States itself. Once established in their great property in 
 Peru they would be protected if necessary by the entire power of their 
 government, no matter who the acting Executive might happen to be. 
 For the commercial enterprise of this nation has now become as power- 
 ful as that of England once was, but most happily without any of that 
 selfish greed which has made England the foe of her own colonies, and 
 hereafter American property interests in foreign lands will be thoroughly 
 taken care of. 
 
 14. The people of the United States, as we have seen in the matter of 
 the proposed Panama Canal, are determined that no European govern- 
 ment shall take foothold in this hemisphere, but they have no ambition 
 for themselves except an honorable commercial ambition. They want 
 no more territory, nor do they wish to meddle at all in the political 
 affairs of sister republics. They are willing, as in the present instance, 
 to forbid the victor an extreme cruelty upon the vanquished, and for the 
 rest their only desire is to see every republic cultivate the arts of peace, 
 and become happy and prosperous within its own borders. 
 
 lo. I am able to tell you, on the highest authority, that the Depart- 
 ment of State has long ago notified Chili in the plainest words that she 
 will not be permitted to take any territory from either Peru or Bolivia, 
 except it be found that there is no other possible way of securing her 
 proper war indemnity. I am able, on the same authority, to tell you 
 that she (Chili) has been notified that American citizens have filed at 
 Washington their claim as owners of all the guano now in Peru, and 
 that for every pound she takes she must hereafter account to the United 
 States, and that she has also been notified that no cession of territory 
 or property by Peru will be permitted until the Cochet and Landreau 
 claims have first been provided for. 
 
 You perceive, therefore, that already Peru has a great friend at her 
 
WAR ON THE PACIFIC. 23. 
 
 back, and that henceforth it is only necessary for her to lean upon that 
 friend to be wholly saved. 
 
 16. More than this, there is help for Bolivia, too. 
 
 The owners of the Cochet rights are clear-eyed men who see far into 
 the future. Their first interest— I mean now their own first interest — 
 is to see Peru restored to all prosperity. While they will not meddle in 
 any quarrel not their own, they cannot allow any terms to be inserted 
 into the treaty of peace which will so cripple Peru or Bolivia as to affect 
 their own commercial plans, and they will not allow any such terms to 
 be inserted. Upon this you may safely rely. 
 
 They will open the guano market and the nitrate market all over the 
 world as it has never been opened yet. They will do a business of 
 $100,000,000 a year when once their plans are perfected, and will open 
 the now dead silver and quicksilver mines also, if properly encouraged,, 
 and will pay off all these debts that now look so hopeless easily enough, 
 and leave Pern richer by far than she has ever yet been. All this i» 
 easy enough to American enterprise. 
 
 They are shrewd enough to see that they should have the Bolivian- 
 nitrate too, and if Bolivia will treat, them fairly she too can be fully 
 taken care of — by leasing under a proper cummercial treaty all her 
 nitrate territory to the Peruvian Company, which will then work the- 
 whole as one interest, and pay Bolivia a regular dividend out of the- 
 annual profits. 
 
 17. If you have noticed how such capitalists as these are now trans- 
 forming Mexico, covering it with railroads and canals, and reopening its 
 dead gold and silver and copper mines, you wifl see the example which 
 may now be repeated in Peru. 
 
 At the head of the Mexican enterprise is General Grant, and with him 
 are his friends. The managers of the Peruvian Company are not one 
 whit less able in capital. Out of the midnight may spring at once the 
 clear dawn. 
 
 18.*' * * 1 beg you, therefore, to acquaint his excellency the Presi- 
 dent at once with all the foregoing facts, that he may be able to act with 
 promptitude and intelligence. 
 
 19. Prom the first Mr. Shipherd has sought to reach Elmore, but al- 
 ways in vain. He has, therefore, freely consulted Mr. Tracy but Mr. 
 Tracy could only answer for himself, and could not of course bring any- 
 thing to the notice of the Executive. I have, in the exigency, volun- 
 teered to place the facts within the President's reach, and having done 
 so my duty is finished. In answer to questions directly asked ine, I 
 have not hesitated to express the belief that most eagerly would Peru 
 embrace this great opportunity. I shall be compensated for this long 
 letter if I can have immediate official assurance that I have not given 
 bad advice. 
 
 # # " # * * # 
 
 The idea of a treaty with Bolivia is a recent one ; a draft of outline is 
 now being made, and when printed a copy will be sent you. 
 
 This is a long letter, but not so long as its theme, and if it opens a 
 door of escape for unhappy Peru I shall be glad indeed that it was my 
 privilege to write it. 
 
 Note by Department of State. — The asterisks in the above paper- 
 appear in the»copy on file in the Department. 
 
24 WAR ON THE PACIFIC. 
 
 No. 8. 
 
 [A complete transcript of the letter on page 559 of Senate Ex. Doc. No. 79, Forty- 
 se ventli Congress, first session. ] 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 September 19, 1881. 
 
 My Dear Sir : On the 1 7th, Mr. Elmore, the Peruvian minister, resi- 
 dent at Washington, called upon me, introduced by a diplomatic col- 
 league, who is my friend, and we had a long and very satisfactory con- 
 ference. 
 
 He informed me that he had some weeks since forwarded to President 
 Calderon the papers I sent him, the same sent Dr. Arizola, and asked 
 for duplicates. He explained to me the plans of the Societe Industriale 
 (in which he is deeply interested), and responded cordially to my sug- 
 gestion that if our plans should succeed we would make a liberal co- 
 operative arrangement with the societe as a party legitimately entitled 
 to fair recognition. He discussed our scheme with courteous deference, 
 as if it were in principle settled, and only methods of giving it effect 
 remained to be considered. He asked somewhat eager!}" whether Peru 
 might rely upon American protection in carrying out the agreement 
 with us after she had made it, and seemed to have no anxiety on any 
 other point ; indeed, he said, l 'If that is assured all the rest will follow 
 as smoothly as the flowing of a stream '' 
 
 He surprised me with the statement chat Dreyfuss not only is not in 
 the societe" syndicate, but is hostile to it. I had heard the other state- 
 ment always. Do you know what the truth is ? 
 
 He welcomed my promise of a formal demand, to be served upon him, 
 say, within fifteen days, which will initiate direct and decisive negotia- 
 tions, and volunteered the offer to furnish me copies of the society's 
 contract with the government in 1880. Nothing could have been more 
 satisfactory than his entire manner and discourse. What its real sig- 
 nificance and importance may turn out to he, of course we must wait 
 for the future to disclose. 
 
 We note Pierola's resignation, but presume it to be merely a prelimi- 
 nary to his formal re-election, or election rather, to the presidency by 
 his congress. 
 
 1 wish you would inform me whether President Calderon has authority 
 to conclude a treaty with us in the vacation of Congress '? 
 
 Since my writing by the last steamer, 1 have been necessarily absent 
 from the city, and our internal negotiations have been consequently 
 suspended. I may have more news for you by the next steamer. 
 
 I should greatly prize your advice, and daily regret the distance that 
 parts us. Do not tail to write with the utmost frankness and fullness, 
 and by every mail, if practicable. If I can be of any service to you per- 
 sonally in any way, do not hesitate to command me. 
 
 As I write, the President is sinking again, and the gravest apprehen- 
 sions prevail. 
 
 Faithfully, yours, 
 
 JACOB B. SHIPHEED. 
 
WAR ON THE PACIFIC. 25 
 
 No. 9. 
 
 [A complete transcript of the letter on page 560 of .Senate Ex. Doc. No. 79, Forty- 
 seventh Congress, first session.] 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 September 28, 1881. 
 
 My Dear Sir: Since my last the great change has come, and Gen- 
 eral Garfield's administration, so full of promise, is no more. 
 
 The Senate is to meet October 10, and the air is full of suggestions of 
 an entirely new Cabinet. It is understood that General Grant advises 
 that Mr. Fish be recalled to the control of the Deparement of State, and 
 that this advice is likely to prevail. Of course the instructions you have 
 already received will continue in force until specifically modified, and it 
 shall be our care to prevent such modification. The nearest friends of 
 the new President are, or will be, among our stockholders, and our 
 original plan to offer General Grant himself a prominent seat in the direc- 
 tion will probably be carried out. Then, if Peru is wise enough to co- 
 operate with us, I think no admiuistration will refuse us the aid neces- 
 sary to comj)el the acquiescence of Chili. 
 
 Until towards the middle of Octobe.rI cannot receive your acknowledg- 
 ment of my first message (August 20), but thereafter I shall hope to 
 hear fully from you by every steamer. It seems to me I cannot be 
 widely mistaken in assuming that such facts as I have been sending 
 will be helpful and welcome to you; it is at least equally certain that 
 suitable advices from your office will be greatly useful here. 
 
 I may as well be frank enough to say' further that the intelligence 
 and vigor with which you have begun your work fulfill our best hopes, 
 and that if there is a change in the head of the Department of State we 
 shall ask that no change be made at Lima. 
 
 ^Negotiations are pending with a leading Republican journal which, 
 if concluded, will make it our especial organ. It has no Peruvian or 
 Chilian correspondence. Either with this journal, or with some other 
 equally good, and of the very first rank, we shall conclude arrangements, 
 and these arrangements will entitle us to publish our own letters from 
 Lima and Santiago. Can you retain for us competent men f The let- 
 ters must be sent to me, and, after revision, I will publish them. The 
 only satisfactory letter I have seen in the World is the one dated Au- 
 gust 10; those in the Herald are of a very ordinary quality, and there 
 seem to be no others. 
 
 As soon as we are fairly afloat, within range of the public eye, there 
 will be a keen appetite and a general market for Peruvian and Chilian 
 news, and not merely gossipy, but able and comprehensive accounts should 
 come by every mail. I have been twenty years in practical journalism 
 and know how such correspondence can be used. If you can secure 
 competent men I wish you would do so; there shall be no scrimping of 
 the pay. 
 
 I write to-day because I happen to have a leisure moment. If any- 
 thing important develops before the mail closes I will write again. 
 Verv faithfullv. yours, 
 
 JACOB P. SHIPHERD. 
 
26 WAR ON THE PACIFIC. 
 
 No. lO. 
 
 [A complete transcript of the letter on page 679 of Senate Ex. Doc. No. 79, Forty- 
 seventh Congress, first session.] 
 
 Xo. 115. 
 
 Mr. Shipherd to Mr. Blaine. 
 
 The Peruvian Company, 10 Spruce street, 
 
 Xew York, October 10, 1881. (Received October 11.) 
 Sir : I have the honor to inclose herewith — 
 
 1. A printed and sealed official copy of a note addressed to the Hon. 
 J. F. Elmore, minister resident of Peru at Washington, bearing' date 
 October 1, 1881, and subscribed by the undersigned. 
 
 2. A like copy of a note addressed to the Hon. Marcial Martinez, 
 envoy extraordinary and minister plenipotentiary of Chili at Washing- 
 ton, bearing date October 5, 1881, and subscribed by the undersigned. 
 The originals hereof are to-day delivered to the Hon. George S. Bout- 
 well, counsel of this company at Washington, for immediate transmittal 
 to the respective addresses, and I have therefore the honor to ask that 
 these copies may be placed on tile in the Department, and that I may be 
 duly advised that they have been so placed. 
 
 I have, &c, 
 
 JACOB R. SHIPHERD, 
 President of the Peruvian Company. 
 
 No. 11. 
 
 [A complete transcript of the letter on page 180 of Senate Ex. Doc No. 79; Forty-seventh 
 
 Congress, first session.] 
 
 [Inclosnre marked A in No. 9.] 
 
 Mr. Shipherd to Mr. Kiipatrick. 
 
 The Peruvian Company, 
 10 Spruce Street, Xeic York, October 19, 1881. 
 
 Sir : I have the honor to inclose herewith official printed copies of 
 communications on behalf of this company to the minister of Peru and 
 Chili at Washington. 
 
 Duplicates of these inclosures were filed in the Department of State 
 on the 11th instant, and the originals were personally delivered by ex- 
 Secretary Boutwell, our counsel at Washington, on the 13th. 
 
 I place these copies in your hands, of course, without comment, and 
 only for your early information. I have reason to suppose that you will 
 receive instructions concerning the interests involved at an early day. 
 
 It may be proper to add that this company is now fully organized, 
 with a capital of $250,000,000; that it includes the best legal, diplo- 
 matic, and money resources of the United States ; that the title upon 
 which it relies is approved unanimously by a large staff of eminent 
 counsel, and that it has unqualified asstvrance of ample governmental 
 backing. It has called for the property, and you may safely rely that 
 it has at command every means of enforcing that call. I send you a 
 
WAR ON THE PACIFIC. 27 
 
 recent copy of the Times, which does but reflect the average public 
 sentiment here. All the papers (preliminary) in the case I sent to 
 your address in this city before you sailed. 
 
 We are prepared to treat Chili fairly, even liberally, but only on con- 
 dition that she recognizes our superior rights. If she raises an issue 
 she will simply get nothing. Right must rule. 
 Your obedient servant, 
 
 Hon. JUDSON KlLPATRICK, 
 
 United States Minister, Santiago. 
 
 JACOB E. SHIPHERD. 
 
 Mo. 12. 
 
 [A com j.'tte transcript of tlie letter on pages r>6S-.">72 of Senate Ex. Doc. No. 79, Forty- 
 seventh Congress,, first session.] 
 
 [Inelosure in No. 28.] 
 Mr. Shiplierd to Mr. Hurlbut.. 
 
 New York, October 27, 1881. 
 
 Sir : I have yours of the first instant. You seem still to look upon 
 our company and its possibilities only as something that may be u of 
 great use " to Peru. I shall be content — extraordinary as the attitude 
 is — to discuss it on that basis, and to applaud your generous sympathy 
 with an unhappy country; and I will, if you wish, pardon to an excess 
 of generosity in that direction the remarkable indifference, or seeming 
 indifference, to the interests of your own countrymen. If you had 
 heard a tithe of the comment made upon, this seeming indifference by 
 gentlemen whose only interest is to applaud and to be proud of you, 
 you would at least credit my own observations with great moderation. 
 
 Our company, now fully organized and already a formidable power, 
 being purely commercial, necessarily includes, however, not only those 
 who, like myself, are your steadfast political friends, but men of all po- 
 litical parties and factions, all of whom would none the less gladly be 
 your friends as minister, and would heartily uphold your hands, if you 
 would give them the slightest opportunity to do so; but who cannot be 
 expected, when they see you totally indifferent to their interests — or ap- 
 parently so — to forbear criticism not only severe, but possibly unjust. 
 Such is human nature. 
 
 If you had come to my office, as I understood you to earnestly assure 
 me you would, before you sailed, I could have satisfied you as .long ago 
 as that upon all the points you now raise. If opportunities have been 
 lost in the intervening period, you will, 1 trust, not hold me alone to 
 blame ; and if you had been at the pains to deliver with the letter to 
 Mr. Arizola the accompanying documents, without which the letter was 
 unintelligible, you would at least have not taken a responsibility which 
 no one here has as yet been able to explain. 
 
 I sincerely beg yourpardon if thisfrankuess seemssevere ; it certainly 
 is not meant to be rude, and is only used to give you some idea of the 
 unhappy impression which the attitude of your legation has — erroneously 
 or otherwise — made upon every person without exception, I believe, 
 who looks from this view point. And nothing will give me sincerer 
 pleasure than to be enabled to vindicate not only the perfect integrity 
 
128 WAR ON THE PACIFIC. 
 
 of your motives, but what is almost equally important, the wisdom of 
 your methods. 
 
 In a readiness to help Peru, no one at Lima or elsewhere can profess 
 a sincerer desire than this company feels. So far as Peru is concerned 
 we might safely ask her to do nothing except for herself alone. But 
 we have rights as well as she, and have no idea of relegating them to 
 any secondary rank. Of a government capable of the official reeord 
 made in the Landreau case, it would hardly be wise to expect any re- 
 lined analysis in practical ethics ; no practicing attorney would hanker 
 exactly for the priviledge of submitting any cause to just that kind of 
 a tribunal. 
 
 It is, therefore, with only a languid interest that we have at any time 
 looked toward either the legal or the equitable strength of our case ; 
 we have assumed from the first that our chief reliance should be upon 
 our ability to rescue Peru in articulo mortis from the jaws of the devour- 
 ing conqueror. 
 
 But while this might suffice for the face to be turned toward Peru, it 
 could not for a moment satisfy the gentlemen who constitute the Peru- 
 A r ian company, nor their counsel, nor the American Government. There 
 must be at the bottom of all our plans, first the facts and next the proof 
 of them, which would create open, clear, and incontestible equities, at 
 least coextensive with our claim. 
 
 That such facts and such proofs do exist, the documents heretofore 
 placed in your hands have been supposed to be prima facie evidence. 
 Of more than a score of eminent attorneys, statesmen, and business 
 men who have thoroughly and critically examined them, not one has at 
 the end expressed a doubt, or failed to express a judgment that our case 
 (prima facie) was complete. 
 
 It is always possible that such a body of experts may all be mis- 
 taken ; but the probabilities hardly lie that way, do they i 
 
 For example, I sent for Judge Lord this morning, and read him your 
 letter without comment, and at the close asked him what he thought of 
 the difficulties you suggest. His reply was, " I can see nothing what- 
 ever in them. The documents in General Hurlbut's hands are plain as 
 the shining of the sun. If we are not badly advised by Peruvian au- 
 thorities here, the natural son inherits ; if we are badly advised on that 
 point, it is immaterial, for we have the' will." 
 
 Following my own order, I proceed then specifically to respond in 
 turn to each of the points you suggest, and to these I may add a general 
 observation or two. 
 
 First. I believe you are not aware that Alexander Cochet, whom we 
 supposed to have (tied intestate, in fact left a valid will, in which Ge- 
 lacio is duly recognized and identified, and to whom all the testator's 
 rights and properties are duly bequeathed. This will came to light in 
 August last, and has been duly probated in Paris, and we have a prop- 
 ' erly attested copy of it here. This fact removes the only question you 
 raise as to the chain of title. 
 
 Second. What did Cochet discover! His pamphlet shows clearly 
 enough. Not the heaps of guano, not the original vague idea that it had 
 fertilizing properties. But that marketable quality which brought all 
 the millions into the public treasury. 
 
 The language of the committee of award is broader than this. (See 
 p. 13 of Truth Demonstrated.) " The 5,000 tons of guano that the 
 national representation is disposed to grant to the Seiiores Allier and 
 Quirog, believing them to be the first discoverers of the fruitful properties 
 of this manure." 
 
WAR ON THE PACIFIC. 29 
 
 On all the facts the committee award to Cochet the prize intended for 
 the " first discoverers of the fruitful properties," and for those " first to 
 introduce it into European markets." 
 
 The body of the report shows, if not in a precise, certainly in a very 
 comprehensive and unquestionable way, the almost unlimited indebted- 
 ness of the republic to this extraordinary foreigner, and adjudges him 
 to be — what his own collateral specifications show in detail that he was- 
 — the creator of the foreign guano market, the discoverer " of untold 
 riches," which have ever since been flowing in upon his beneficiary. 
 
 The decree — (p. 44 of the prospectus)— is as broad as possible: " That 
 any one, alter the publication of these presents, who shall have discov- 
 ered or other property belonging to the state, shall have a right 
 
 to a third part." 
 
 If the intent of this decree was the benefit of the state by the dis- 
 covery of available value, then the rules being as broad as the reason o*f 
 it, must easily enough cover the value discovered in guano by Cochet 
 alone. 
 
 If the intent was narrower than this, then it was only calculated to 
 defeat itself. The interests of the state are inseparable from those of 
 the discoverer. 
 
 Third. What was the award? That the prize appointed for "the first 
 discoverers of the fruitful properties of this manure, and the first to intro- 
 duce it into European markets," belonged to Alexandre Cochet. 
 
 Fourth. Who awarded it ? 
 
 So far as appears at all, the final tribunal duly created and author- 
 ized by "the national representation." 
 
 Fifth. Does that award "bind" Peru ? Apparently; why not? Who 
 is Peru 1 ? Is not the act of an authorized agent the act of the principal? 
 
 But all this argumentation proceeds upon the assumption that Peru 
 proposes to dispute this claim. 
 
 Is not such a presumption at least premature ? 
 
 Until the demand served on the Peruvian minister at Washington on 
 the 13th, perhaps no formal demand for this property has heretofore 
 been made. In such case the present Peruvian executive is as free as 
 the executive of 1841. He is embarrassed by none of the repudiations 
 which cloud the contested Laudreau case, and may construe the report 
 of the committee of award as freely as any other sovereign. The equi- 
 ties of Cochet's claim are simply enormous, aud are so plain that no 
 sane man can for a moment debate them as doubtful. 
 
 There is no sounder rule of legal construction than that where either 
 law or equity may prevail, equity must prevail, and if President Calde- 
 ron is not clear that upon merely and narrowly legal analysis the award 
 defines Cochet to be the true discoverer of guano — upon the notorious 
 facts collateral to and contemporaneous with the award, he cannot for 
 a moment doubt that the finding of the committee amounts to exactly 
 that, and to nothing less. 
 
 The Landreau record needs no comment and will bear none. The op- 
 portunity now given to do cheerfully a great justice, and at the same 
 moment to reap an enormous reward, should need no enforcement. 
 
 If it is asked, May Peru act freely in existing premises? The com- 
 plete answer is, Why not? 
 
 The decision which must be made upon the demand now pending is a 
 purely executive decision, addressed to the executive of a sovereignty. 
 If Mr. Calderon's government is sufficiently constitutional to negotiate 
 for peace upon terms involving the dismemberment of territory— and the 
 Chilians have always been ready to treat with him on this basis, and by 
 
30 WAR ON THE "PACIFIC. 
 
 such readiness are estopped — it must certainly have the inferior authority 
 to quitclaim the property of non-residents, and to make a treaty with this 
 company which will preserve the republic ; in exigencies, mere commit- 
 tees of safety may for the public good assume unlimited power. Is not 
 this safe ground, in your judgment? 
 
 You may certainly rely, my dear sir, that every view suggested herein 
 has the hearty approval of counsel entitled to the highest respect, and 
 that we cuuut ourselves fortunate in submitting these views for revision 
 and criticism to counselors as able as yourself and President Calderon. 
 We are perfectly aware that our demands and Mr. Calderon's concur- 
 rence — if he shall concur — will be put into diplomatic crucibles the 
 world over; we have refined our views in advance with the expectation, 
 and cheerfully surrender them to such tests; and we ask only of Mr. 
 Calderon that he take such ground as he can vindicate to all intelligent 
 rand reasonable critics. 
 
 Further than this, apply the test of a judge in court. Who has the 
 right to object ? Only some one who will suffer. Will Chili suffer? Is 
 it not settled that her utmost right, even of force, is limited to a reason- 
 able war indemnity? This is her utmost right as against Peru ; and if 
 Peru admits our title, Chili has no right against us. 
 
 Yet we are ready to pay or safely secure her proper indemnity, and 
 upon this she is out of court. 
 
 Will Peru's creditors suffer? Is not our offer to them incomparably 
 better than any other they have had or are likely to have? 
 
 Will the citizens of Peru suffer ? Is not our coming their sole chance 
 of salvation ? 
 
 Will the United States Government back us up, and by so doing pro- 
 tect Peru ? 
 
 Let that question be put directly to Mr. Blaine by Mr. Calderon. It 
 certainly is not for me to speak for the government. 
 
 But as a citizen, and one of the people who create governments, I 
 may venture an opinion shared by every stockholder in this company, 
 and backed by the millions we are ready to venture on it, and in that 
 opinion, I fancy, you will readily concur : That no government at Wash- 
 ington could escape the popular damnation which all parties and factions 
 would unite to visit upon an executive that failed to protect, at no mat- 
 ter what cost, so enormous a property as ours against the mere rapine 
 of Chilian marauders — Peru herself standing with us. 
 
 For your own satisfaction, I may say that our staff of counsel, includ- 
 ing such representative and various men as Governor Boutwell, Senator 
 Eaton, Senator Conkling, Collector Robertson, ex-Congressman Lord, 
 and Senator Blair, are absolutely agreed upon this as upon every other 
 point material to the pending issues ; and the most radical suggestions 
 of policy as yet suggested have the hearty autograph approval of Gen- 
 eral Grant, who is now one of us. The significance of all this you need 
 no aid from me to estimate. 
 
 It occurs to me to quote you recent correspondence. The moment 
 we heard here of the decree of September 28 I wrote to Senator Blair, 
 the intermediary between the Secretary and myself when I am away 
 from Washington. 
 
 " Since I wrote you last we have fresh and stirring news from Lima. 
 Hurlbut's letter to Lynch deserves no stinted praise ; it is a bull's-eye, 
 and no man's hat shall go higher than mine for him. 
 
 "The attemp* of Chili to wipe out Calderon may be covered with 
 any number of specious pretexts, but its real motive unquestionably 
 is to lock horns with Mr. Blaine on the supreme issue of a cession 
 
WAR ON THE PACIFIC. 31 
 
 of territory. Hurlbut spoke, and the Chilian minister at Washington 
 (Mr. Blaine himself told me) appeared at the Department to demand ex- 
 planation. How he was answered sufficiently appeared from what fol- 
 lowed. He certainly became satisfied that the United States would not 
 sit by and see Chili dig out the very vitals of its victim. Between the 
 25th of August, when Hurlbut wrote, and the 28th of September, when 
 Calderon was suppressed, there was just time to hear fully from Wash- 
 ington. 
 
 "It does seem to me that the time has now come for Mr. Blaine to 
 speak the one word that will cut this knot forever. Chili defies him, 
 and puts the last twist on her tortured and helpless victim. Calderon, 
 although originally set up by the Chilians, resigned his provisional office 
 to the constitutional Congress, and was at once unanimously elected 
 provisional President by it. Now, when Chili finds that he will not, 
 and caunot — for his Congress forbade him — cede the coveted territory, 
 she forbids him to exercise nis functions at all. 
 
 "What next? 
 
 "Chilian military rule and pure anarchy. * * * Chili will never 
 permit a free election. She will either set up another provisional stick, 
 or she will never allow another government to be organized. Meanwhile, 
 all advices are that the country is getting into a condition of permanent 
 horribleness ; rapine is now the habit and the rule. 
 
 "Has not the time fully come for the only power that can stay this 
 awful flood, to stay it? 
 
 " Hurlbut's manifesto to Lynch is perfect. Now, if his chief cables 
 him to continue to recognize Calderon, and to assure Calderon that, 
 until another government is freely set up by Pent, the United States 
 will insist upon his right to speak for Peru under the sanction received 
 from his constitutional Congress, the issue will be forced, and the situa- 
 tion saved. 
 
 "If Chili may abolish Calderon, she may abolish Peru; if the United 
 States falters now she may never retrieve the lost opportunity. 
 
 "The bearing of all this upon our great interests Chili sees as clearly 
 as I. If there is uo Peruvian Government, there is no government to 
 admit our rights, and so to establish them. The continuance of Cald- 
 eron for the time being is vital, you see, to all we have at stake, and 
 such interests as ours should easily decide the Secretary, if aside from 
 them he hesitates." 
 
 Has Peru any representative here to make a heartier plea for her 
 than that ? 
 
 I will read to you now from the answer that came swiftly back; 
 
 " I can only now assure you that the United States will utter her voice 
 in a manner which will mark an era in American diplomacy. The mat- 
 ter is being prepared, and within a week or two you will know what is 
 done. You should act at once as though the American ships of war were 
 
 on their way to the Pacific coast Perfect your plans. E verthing 
 
 here has been just as you have wanted it all the time. The policy of 
 the government has been exactly right, and is now. Any man who pro- 
 poses to take part in your project should note take hold in earnest. . . . 
 
 Chili will not set up another president, I fear, who will be strong 
 
 enough to treat with us. We had better treat with Calderon, whom I 
 hope our government will continue to recognize." 
 
 The Senator in continuing deplores the circumstances which prevented 
 my original purpose of putting you in possession of facts before your 
 departure, which would have enabled you to have pointed Mr. Calderon 
 
32 WAR ON THE PACIFIC. 
 
 to this only and complete way of escape immediately on your arrival at 
 Lima. 
 
 But let that pass. It is not yet too late. So great a project as this, 
 glacier-like, makes slow progress at best; it would be perilous indeed 
 if it could move faster. You are now so situated as to place all the ma- 
 terialfacts clearly before Mr. Calderon. All the papers printed and cited 
 by me — except only Gelacio Cochet's deed, which we have here and will 
 of course produce in due course, together with the attested will — are 
 part of the official records of the Peruvian Government — congressional 
 or municipal — and presumably within the reach of the Peruvian execu- 
 tive. I am advised that undoubtedly Mr. Calderon can reach all the 
 originals that are material. If not, we can supply deficiencies, upon 
 request, from copies in the department at Washington or elsewhere. 
 Certainly I shall be at no pains to collect such copies until upon the 
 prima facie case, Mr. Calderon plainly assures me what he proposes to- 
 do. I am doing far more for Peru than she is to do for me, and shall 
 not do more than my part. 
 
 In yours of September 12, yon said that you had received no such dis- 
 patches as Secretary Blaine assured me had been sent. The next time 
 I was at the Department the secretary placed in my hands all the dis- 
 patches he had sent you, and 1 read for myself. The phrasing is his 
 own, but the effect is exactly what I described. All I wanted was a 
 stay pending negotiation, audi expressly asked him to put the Landreau 
 claim forward, and to say only of ours that it had not yet been examined 
 finally in the Department. He did precisely what I asked. I ask no 
 opinion yet of any one on the merits of the Cochet claim till I have Peru's 
 response to my demand. If that is affirmative, all the issues become 
 finally res acljudicata, and will be so treated by the United States Gov- 
 ernment. If Peru's answer is a negative, then it will be time enough to 
 consider the next step to be taken. 
 
 Until that answer comes, it seems hardly worth while for us to send 
 commissioners to Lima. Cui bono. The case is as clear as the sun at 
 noonday, and Mr. Calderon is said to be the first lawyer in Peru. I cer- 
 tainly don't propose to argue, nor to solicit, uor to persuade him, uor 
 anybody else. To him, as to a drowning man sinking for the last time r 
 I throw a rope. I am not sinking, nor am I going to siuk. I control an 
 interest large enough and strong enough to ride all seas in all weathers. 
 If Mr. Calderon wishes to grasp the rope, that is for him to do. When 
 lie has done so, 1 will land him safeand sound. Until he lays hold of it, 
 why should I further trouble myself ? 
 
 If I need a commissioner, I am content with the American minister, 
 for the time being. I need nothing from him that his official duty ex 
 virtute officii does not require of him, to wit, that he shall do always 
 what he can for the interest of the United States, and as a friend also 
 for the country to which he is accredited. If he does this, he must to 
 the uttermost promote the international plans of this company, and no 
 man I can send can do this so well as he. I do not for a moment dis- 
 trust him, if once he will set out to utilize in a large way the mere facts 
 as they stand. He cannot go amiss, and he will find in this office dur- 
 ing his ministry, and as long as he lives, the surest appreciation and 
 the most helpful friendship. 
 
 If Mr. Calderon is wise, he will make Mr. Tracy (the present consul 
 here, and formerly charge d'affaires) his minister plenipotentiary, to co- 
 operate with Mr. Blaine and myself here as you are working with him 
 in Lima, and no other commissioners are needed. Mr. Tracy is ideal in 
 his Peruvian loyalty — son of an American father at Lima, and a Peru- 
 
WAR ON THE PACIFIC. 33 
 
 vian mother— is thoroughly and exceptionally intelligent, commands 
 and deserves the highest respect,. and is honest and honorable, as few 
 men are. He has from the first been aware of our plans, but has never 
 had and will never have any interest with us. He does not want to be 
 minister, and would make great sacrifices if he|accep ted the post — would 
 only accept it, if at all, long enough to carry through the peace negotia- 
 tions, for which Mr. Elmore is most sadly incompetent. I should add 
 that this suggestion is not only made without Mr. Tracy's knowledge, 
 but despite his repeated refusal to consent to any suggestion of the kind. 
 I only make it in your ear in Mr. Calderon's interest, and leave it wholly 
 to your discretion whether it shall be brought to his notice. Of the 
 utter incompetence of Mr. Elmore there can be no question, and the 
 recommendation I have made is based upon an intimate acquaintance 
 with Mr. Tracy for the last six months. No other man, I think, could, 
 at this juncture, do Peru so great a service as he, if he would accept 
 the appointment, and I think he would not refuse the necessary sacrifice 
 if the President should ask it. 
 
 It has been suggested by one of our share-holders that, as the Chilians 
 say Mr. Caideron may exercise his functions anywhere save under the 
 Chilian flag, that he might, without delay, carry on all the negotiations 
 necessary to our views under the American flag in your office. The sug- 
 gestion will not be new to you, and there may be some difficulty in the 
 way unknown to us. I mention it to indicate our readiness to recognize 
 his official acts. We care no more for Chili is decreest in Peru than for 
 the breath of any other aliens. 
 
 I thank you heartily for the news of the proposed sale of an interest 
 in the Landreau claim to the Chilians. The same interest was offered 
 us during the summer and declined. 
 
 If our claim is good at all it takes, practically, everything, and Lan- 
 dreau owners must make terms with us as best they can. We have not 
 only a valid first lien (p. 45, Prospectus), but the mere magnitude of our 
 interest must dominate all others in any event. 
 
 I am quite content the Chilians should buy it if they think there is 
 any money in it; but I doubt if they will, because if Peru admits our 
 title Chili would be only buying a kneeling place at our foot-stool, and 
 if Peru denies our title, Chili can that, and adjudicating it for herself 
 foreclose on Peru with a process that neither the United States nor any 
 other foreign power will for a moment question. 
 
 Having delayed this intimation until now, I may add that it is no new 
 idea with this company. When we first bought this title we saw three 
 markets for it, and of these three Chili was not the least promising. Of 
 the merits of the original quarrel we know nothing and care nothing. 
 Peru is the under dog, and our sympathies lie with her. There are 
 strong reasons why we should prefer to deal with her, otherwise we 
 should not make her the first offer. But certainly we have not bought 
 this great interest to lay it at the feet of Peru, to use or to refuse as she 
 may choose. We have rights as well as she, and we have abundant 
 alternatives if Peru wishes to challenge us to use them. Of these the 
 Chilian is only one, and is only suggested to make clear the general fact 
 that we have at least one alternative. I need not dwell on this point. 
 Mr. Caideron can follow it out for himself. 
 
 Nor are we dependent on Mr. Calderon's government. We can wait; 
 all methods are open to us, all delays make in our favor and not against 
 us. It is not for us to hasten, but only to strike when the hour strikes- 
 
 If Mr. Caideron wishes speed he can have it ; we are ripely ready 
 H. Ex. 68, pt. 2 3 
 
34 WAR ON THE PACIFIC. 
 
 whenever he is ready. The moment he cables me the proper assurances 
 he will find me responding like an echo ; till then I wait. 
 My telegraphic address (cables) is Jacket (Jacket), New York. 
 It might be better still for you to cable Mr. Blaine in cipher. 
 If now, my dear sir, you see your way clear to work with us I will 
 bury all the past and you shall find in me a true partner. Certainly, I 
 ask nothing of you but that you serve the interests of the whole United 
 States and of Peru at the same moment. 
 
 With great respect, your obedient servant, 
 
 JACOB E. SHIPHEED, 
 
 President. 
 
 No. 13. 
 
 [A complete transcript of the dispatch on pages 547-548, of Senate Ex. Doc. No. 79, 
 Forty-seventh Congress, first session.] 
 
 No. 369. 
 
 Mr. Hurlbut to Mr. Blaine. 
 
 No. 25.] Legation of the United States, 
 
 Lima, Peru, November 2, 1881. (Eeceived November 25.) 
 Sib : I was surprised by receiving, on the 31st ultimo, a telegram 
 from you dated 29th, which, when deciphered, read as follows : 
 
 Influence of your position must not be used in aid of Credit Industriel or any other 
 financial or speculating association. 
 
 To this I immediately answered. 
 
 It has not been ; it will not be. 
 
 I do not know the reasons why such a warning should be sent me. I 
 have, of course, known that the "Credit Industriel" had made arrange- 
 ments with the Peruvian Government to furnish them the funds where- 
 with to pay the money indemnity, which might be demanded. But the 
 whole matter of that contract, of which I never knew the particulars, 
 was concluded long before I arrived in Lima — in fact, as I am informed, 
 before I was appointed to this place. To set the matter absolutely at 
 rest, I inclose herewith a correspondence had this day with President 
 Calderon, by which it appears that the last action taken was in the 
 month of March last. 
 
 I have looked upon the matter of these money arrangements between 
 this corporation and the Peruvian Government as a matter exclusively 
 Peruvian, and not in the most remote degree connected with this lega- 
 tion. 
 
 * Mr. Jacob E. Shipherd, who claims to represent the Cochet claim, 
 has written very peculiar letters to Mr. Manuel Arizola in reference to 
 that claim, and in his last letter complains somewhat indecently of the 
 little interest I appear to take in the supposed claim or syndicate over 
 which he claims to preside. 
 
 From what Mr. Arizola tells me of the contents of his last letter, it 
 is possible that he or his allies have something to do with this charge 
 as to the Credit Industriel. 
 
 I wrote to the Department, in my No. 12, my opinions upon the Cochet 
 
WAR ON THE PACIFIC. 35 
 
 claim, on which Mr. Shipherd and his associates rely. I have also writ- 
 ten in reply to Mr. Shipherd's letters giving him my views of his case 
 so far as I know its merits. I have pointed out to him the utter defect 
 of proof as to three positions, each vital. , 
 
 The whole colossal speculation rests upon assumptions, not evidence. 
 Thus, first, it is not true in fact that Cochet discovered either guano or 
 its uses as a fertilizer. As such, it has been known and used for hun- 
 dreds of years, far back into the time of the Incas. 
 
 Second. It is not true that Peru ever recognized hiin in any such ca- 
 pacity. 
 
 Third. It is not true in fact that his rights, whatever they were, de- 
 scended to the illegitimate son, under whom these parties claim, or at 
 any event that any record of legitimation has thus far been produced. 
 
 I presented these defects to Mr. Shipherd, who does not like my criti- 
 cism, and writes to Mr. Arizola that he can get on quite well without 
 me, as he has the whole government and all their friends on his side 
 and pledged to his scheme. 
 
 I am very glad to be relieved, for he has overwhelmed me with volu- 
 minous matter, so strangely written, and with such singular assump- 
 tions, that I am inclined to doubt his sanity or his truthfulness. 
 
 I would be pleased to believe in his notions, and to feel certain that 
 American citizens had a just claim to a thousand millions, but, unfor- 
 tunately, I have no evidence in favor, and very much against. Inas- 
 much as he has relieved me of the affair, t have concluded to send you 
 a very considerable portion of his correspondence, so that you may judge 
 of the character of the statements I am called upon to believe. 
 
 In the short letter, the first of the series, dated June 2, 1881, you will 
 perceive the modest proposition of a share in the enterprise. I request 
 that he will show to you any and all letters received from me. Let it 
 suffice for me now to say, that I hever have proposed, nor no I now pro- 
 pose, to aid officially or otherwise any project having any relation to the 
 money affairs of Peru, from any source, American or foreign, unless I 
 am instructed so to do. I shall use my best endeavors to restore good 
 government in Peru and to bring about .a peace, but shall leave that 
 republic free, as I have hitherto done, to negotiate as she pleases for the 
 ransom of her national life. 
 
 I send Shipherd papers herewith, to be read if you choose to take the 
 trouble, and to be retained in the Department, as possibly they may be 
 necessary for me to keep. 
 I have, &c, 
 
 S. A. HURLBUT. 
 
 No. 14. 
 
 [A complete transcript of the letter on page 685 of Senate Ex. Dob. No. 79, Forty 
 seventh Congress, first session.] 
 
 [Inclosure in Mr. Shipherd's letter of Decemher 5.] 
 
 Mr. Arizola to Mr. Shipherd. 
 
 Lima, November 9, 1881. 
 Esteemed Sie : By the last mail from Panama I received your let- 
 ter, which, by advice of your friends, you have addressed to me under 
 
36 WAR ON THE PACIFIC. 
 
 date 5th of October last, developing the vast financial plan which the 
 Peruvian Company proposes to realize. 
 
 I regret to state to you in reply, that having placed myself in accord 
 with his excellency the Provisional President of the Republic, for a con- 
 ference which was to have taken place at 12 o'clock noon of Sunday, 
 the 6th instant, with the object of showing to him, as well your opinion 
 as the documents and other papers which accompany it, a new outrage 
 upon Peru, doubtless the greatest of the Chilian domination among the 
 episodes of the state of war in these latter times, absolutely frustrated 
 the conference agreed upon. 
 
 The telegraph, and later the correspondence which the mail will carry 
 from this country to the United States, will inform you of the unheard-of 
 act carried out with surprise and daring ; the Chilians having taken 
 possession, in the morning of Sunday, the 6th instant, of the person of 
 the President of Peru, conveying him at once, and in an express train, 
 to Callao, and afterwards depositing the prisoner on board the iron-clad 
 Lord Cochran, which sailed twenty-four hours later for unknown parts. 
 
 I omit all commentary upon the enormity of the abuse committed by 
 the implacable conqueror upon the chief of a government of order estab- 
 lished by the nation precisely for the purpose of celebrating and cement- 
 ing peace with Chili upon just bases, and who had just been recognized^ 
 and proclaimed by the great territorial sections of the north and south 
 of the republic, and by the armies garrisoning the same. 
 
 Chili does not consent to the consolidation of any serious and stable 
 government in Peru. She wishes to divide her and anarchize her more 
 and more each day, in order to carry out with impunity the public and 
 private international robbery, which she has undertaken, and which 
 Christian and cultivated nations tolerate with impassibility, without 
 remembering that transgressions committed upon the laws of nations 
 constitute teachings and precedents to be cited as authority whenever 
 the abuse of the strong desire to oppress and disunite to-day one nation, 
 to-morrow another, in continual rotation upon all weak people, or those 
 who may arrive to be weak in any occasion or circumstance. 
 
 The fact is that the deed carried out has rendered impossible the con- 
 ferences to which I above alluded, and renders the action with which 
 you have charged me in your letter inopportune until public affairs are 
 placed back again in the path which in my opinion only the Government 
 of the American Union can enable us to reach by hastening events and 
 thus vindicating their traditional policy. 
 
 For this there is an opportunity offered by the continuation of the 
 constitutional regimen of the Vice-President elected by the National 
 Congress in last August, Rear- Admiral Don Lizardo Montero. 
 
 The latter will assume the command the moment the news of this in- 
 famous outrage shall reach him, and it is evident that by lending to him 
 a strong hand on the part of the Government of the United States we 
 may arrive at the desired solution of all the questions of the war and at 
 the restoration of internal order. 
 
 Whatever you and your friends may do in this sense will be a benefit 
 to Peru and the victory of your own plans. 
 
 I trust that you will let me know opportunely what action in this 
 direction may be expected. 
 I have, &c, 
 
 MANUEL ARIZOLA. 
 
WAR ON THE PACIFIC. 37 
 
 No. IS. 
 
 [A complete transcript of the letter on page 585 of Senate Ex. Doc. No. 79, Forty- 
 seventh Congress, first session.] 
 
 [Inclosnre 3 in No. 36.] 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 New York, November 15, 1881. 
 
 Sir : Senator Blair writes me, " Hurlbut telegraphs that the Chilians 
 have captured Oalderon and carried him to Chili." The Senator adds, 
 " There must be trouble now. Have General Grant do his duty. Amer- 
 ican influence in America is at an end if Chili can slap our face as flatly 
 as this." 
 
 We heard also by cable of Montero's acceptance. 
 
 We appreciate the gravity of the new issues, and the new problem 
 which you must now face. The letters I inclose with this were already 
 written when Senator Blair's letter came to hand, and I will not now 
 change them. The need for a' protectorate is but increased by all that 
 has happened, and I doubt not Chili will continue to force the issue. 
 Our people hope she will. What we want is our government at the fore, 
 and all winds that blow that way fill our sails. 
 
 I reply to the Senator, " I totally agree with you as to Chili. She 
 must unconditionally return Calderon to executive liberty, or we must 
 all take partners for the dance. I trust Mr. Blaine will plant his flag 
 and his guns right there; and he will, won't he f " 
 
 I shall consult General Grant today, and he and I may go to Wash- 
 ington on Thursday. 
 
 We shall do what lies in our power to second all the vigor you have 
 used on the main issue. 
 I am, &c, 
 
 JACOB E. SHIPHBED. 
 
 No. 16. 
 
 [A complete transcript of the letter on page 586 of Senate Ex. Doc. No. 79, Forty- 
 seventh Congress, first session.] 
 
 [Inclosure 4 in No. 36.] 
 
 Mr. IShipherd to Mr. Hurlbut. 
 
 New York, November 15, 1881. 
 
 Sir : Since my note by the last steamer the question of a definite pro- 
 tectorate has grown in relative importance, and is now being seriously 
 discussed. 
 
 The general sentiment among our people, as among our advisers — and 
 you will not forget that we include representative men and advisers of 
 all factions and parties, and I may say once for all that no suggestions 
 will be found in this correspondence which have not in the precise form 
 here set down first received the "concurring approval of all who advise 
 the executive of this company. I say it is now the general sentiment 
 of our people that there should be a protectorate if the Peruvian Gov- 
 ernment as such is to be saved. Our information is that the national 
 
38 WAR ON TUE PACIFIC. 
 
 debilities, of which the more vigorous Chilians have so easily taken ad- 
 vantage, are too deeply seated to be already purged by those adverse 
 fortunes which do sometimes purge a people, and that the factional dis- 
 sensions of the country present separate problems equally unpromising. 
 
 Assuming that our plans succeed we must inevitably accept the gen- 
 eral responsibility of maintaining order, and to this end we must season- 
 ably determine a controlling policy. 
 
 We may, do doubt, arrange with the Chilians for aid, but an American 
 protectorate seems to promise more satisfactory results, all things con- 
 sidered. 
 
 Upon this general question, however, we shall be glad to receive and 
 carefully to consider your matured advice. 
 
 The more immediate purpose of this note is to suggest that if Mr. 
 Calderon desires direct aid from Washington he shall lose no time in 
 asking for it. 
 
 That he should ask it, and not merely in his executive capacity but 
 under conditions which will show clearly that the prayer is the prayer 
 of his people, is an obvious prerequisite to any consideration of the ques- 
 tion by the President or by Congress. 
 
 If I were at liberty to use names I might give that of a member of the 
 Cabinet authorized to speak directly for the President, whose suggestion 
 is that Mr. Calderon accredit a special deputation of, say, three of his 
 ablest men to come at once to Washington to present to the President 
 for transmission to Congress — which will be in session when this reaches 
 you — a formal application for a protectorate ; that this deputation have 
 full powers and remain here at the command of Congress until the appli- 
 cation shall be finally disposed of. 
 
 The sentiment of our people seems to be unanimous upon such points 
 as these. 
 
 I. The only ground upon which such an application would receive any 
 favor, and, therefore, the only ground upon which the petition should by 
 its own terms rest, is that there are now in Peru very large American 
 interests demanding and being clearly entitled to American protection, 
 and these may be specified generally as — 
 
 1. The interests of this company. 
 
 2. The interests represented by Mr. W. H. Cilley. 
 
 3. The Landreau claim, concerning which you have already been 
 instructed. * 
 
 4. Lesser interests in the aggregate. 
 
 These specifications might well be enforced with reference to the fact 
 that the Monroe doctrine and the more recent and now definitely named 
 "Blaine doctrine" render the intervention of any European power im- 
 possible, and there might be a reference in this connection to Captain 
 Eads's American ship-railway project which is to be before Congress this 
 winter, and which General Grant tells me he shall now heartily favor, 
 and with which I may add we shall probably give hands for future use 
 
 II. Xo suggestion would be entertained at Washington, or by our peo- 
 ple at large, or would be favored by this company, which looked, however 
 indirectly, to the assumption by our government of any pecuniary lia- 
 bility whatever. All the expenses of the protectorate itself must be paid, 
 sooner or later, by Peru, and no proposition for a guarantee of any of 
 Peru's obligations would be considered for a moment; more than this, 
 an application not expressly excluding a*ll possibilities of this kind would 
 probably defeat itself. The strong hand of the United States as a helping 
 hand will probably be extended if this above is asked for. 
 
 III. The application will only succeed if actively supported by the 
 
WAR ON THE PACIFIC. 39 
 
 now very influential voice of this company, and the deputation should 
 be instructed to present only such an application as this company shall, 
 in advance, entirely approve. Upon this point I will go so far as to say 
 that it is the corner-stone of the whole case. 
 
 III. If any application of this sort is to be attempted you will yourself 
 see that not a moment is to be lost. 
 
 So important a question would be debated for months, and unless in- 
 troduced very early in the session would probably fail for mere want of 
 time. 
 
 You should advise me by cable the moment a decision is reached. I 
 could then utilize the weeks intervening the arrival of the commissioners 
 to excellent advantage. 
 
 IV. It is not now believed that a protectorate, if granted, need con- 
 tinue more than a few years. The return of peace under a government 
 absolutely stable would rapidly restore normal conditions, and the devel- 
 opment of the comprehensive plans of this company would, at no distant 
 day, establish a condition of things under which foreign aid would cease 
 to be useful. 
 
 It is advised that the application would be almost certainly granted 
 if made in this view, but no proposition for annexation would be con- 
 sidered, and a permanent protectorate would look like annexation under 
 a thin disguise. In a word, temporary aid under the conditions suggested 
 ■could hardly be referred ; a permanent, or probably permanent, govern- 
 mental responsibility at so great a distance would probably be declined. 
 
 It will occur to you without suggestion that in any event the more 
 modest the prayer in the first instance the more likely it is to be granted, 
 and that if our government does but once undertake to compose the 
 pending difficulties it may be safely set down that she will not. stay her 
 hand until the whole work is thoroughly done, no matter what the cost 
 of success may finally turn out to be ; here, as elsewhere, it is the first 
 step only that costs, and if it is effectual help that Peru wants, her 
 supreme wisdom is to make her prayer effectual in the first instance. 
 
 If she will follow strictly the advice I give her, she will be certainly 
 saved. 
 
 I shall at all times value such information and advice as you may 
 think it opportune to supply. 
 1 am, &c, 
 
 JACOB E. SHIPHEED. 
 
 No. 17. 
 
 [A.complete transcript of the letter on pages 588-591 of Senate Ex. Doc. No. 79, Forty- 
 seventh Congress, first session. ] 
 
 [Inclosure 6 in No. 36.] 
 
 Mr. Shipherd to Mr. Hurlbitt. 
 
 New York, November 16, 1881. 
 Sir: I inclose with this, apropos of a suggestion heretofore made, a 
 copy of Judge Lord's brief upon the precedents for a direct treaty be- 
 tween the Government of Peru and the Government of the United States, 
 to cover the essential rights and interests of this company, and as a 
 foundation upon which both Peru and this company may safely ground 
 the proposed agreement between themselves. 
 
40 WAR ON THE PACIFIC. 
 
 Governor Boutwell concurs in Judge Lord's view in a careful memor- 
 andum from ■which I quote : 
 
 '< I anticipate that the Secretary of State will, without serious debate, 
 admit the following propositions as resting upon constitutional usage 
 from the foundation of the government, viz : 
 
 "1. That the President may negotiate treaties through an agent or 
 representative whose designation or appointment has uot been submitted 
 to the Senate. 
 
 "2. That the government may, in its discretion, make reclamation of 
 other governments in behalf of its own citizens who have suffered in- 
 juries, or in any way have been deprived of their rights. 
 
 "3. That all treaties, however negotiated, are only valid and binding 
 upon this government when duly ratified by the Senate. The first two 
 of these positions are well established by the authorities cited in the 
 brief, and the third will not be disputed." Senator Eaton also substan- 
 tially concurs. The suggestion has not been formally submitted to other 
 counsel. 
 
 If these views are sound, such a treaty might be negotiated at Wash- 
 ington by an accredited minister or commissioner on the part of Peru 
 and such special commissioner as the Secretary of State should desig- 
 nate ; or it might be negotiated at Lima by the American minister and 
 such special commissioner as the President of Peru should designate. 
 
 It is also apparent that this treaty might conceivably deal with some 
 phases and possibly even with the essence of the suggested protectorate. 
 
 I shall be glad to consider such suggestions as occur to you in this 
 connection. 
 
 I am, &c. 
 
 JACOB E. SHIPHERD. 
 
 In the matter of the claims against Peru owned by the Peruvian Com- 
 pany. 
 
 It is agreed that it is very desirable to have a treaty made with Peru 
 without the interference of Chili, for the reason that the latter govern- 
 ment would, first, if possible, supplant the present Government of Peru 
 by the "bandit mountaineer," or some other military chieftain, upon con- 
 dition that he should defeat the treaty; and, second, would seek to stir 
 up other governments; and, third, would appear in our Senate for such 
 purpose. Can such a treaty be made 1 ? 
 
 First. By article 2, section 2, of the Constitution, the President has 
 the power, by and with the advice and consent of the Senate, to make 
 treaties. Is such consent a prerequisite 1 Nearly three hundred treaties 
 answer to the contrary, and the Constitution makes it no more a pre- 
 requisite as to treaties than as to officers. 
 
 In some instances the persons representing the government have been 
 selected by and with the advice and consent of the Senate, notably as to 
 the treaties made with Great Britain, after the adoption of our constitu- 
 tion and the war of 1812; two treaties with Prance, which involved 
 claims, and one with Spain, but an overwhelming preponderance of 
 treaties have been negotiated by persons appointed by the President 
 without any reference to the Senate until presented for approval. These 
 persons have been sometimes ministers plenipotentiary, sometimes min- 
 isters resident, then charg6 d'affaires, consuls, and special agents or 
 commissioners, and sometimes by the agent of the plenipotentiary, as 
 
WAE ON TEE PACIFIC. 41 
 
 in the treaty with Algiers, concluded September 5, 1795, ratified March 
 2, 1796, and as in the treaty with Tripoli, concluded November 4„ 1796; 
 
 Second. Is it the duty and has it been the practice of the United 
 States Government to conclude treaties relating to private claims'? 
 
 The first treaty in regard to private claims was concluded November 
 19, 1794, ratified October 28, 1795, and was with Great Britain. By 
 article 6 of such treaty compensation is provided for debts due to 
 British creditors; by article 7, for losses "by divers merchants and 
 others, citizens of the United States, by reason of irregular or illegal 
 captures." 
 
 The treaty with Prance, concluded September 30, 1800, ratified July 
 31, 1801, by its fifth article provides for the payment of debts "by the 
 individuals of one with the individuals of the other" nation. 
 
 On the 11th of August, 1802, a treaty was concluded with Spain, rati- 
 fied January 9, 1804, by the third article of which all claims made by 
 citizens of the United States may be presented to certain commissioners. 
 
 Charles Pinkney negotiated this treaty for the United States. 
 
 On the 30th of April, 1803, a treaty with Prance was concluded, by 
 the first article of which certain debts due by France to citizens of the 
 United States were provided for. 
 
 The representatives of the United States were appointed by and with 
 the advice of the Senate. 
 
 On the22d of February, 1819, a treaty was made with Spain by which 
 Florida was acquired, and the United States assumed to pay five mill- 
 ions of dollars of debts due from Spain to citizens of the United States. 
 (See article 11.) 
 
 The treaty was ratified February 22, 1821, negotiated for the United 
 States by the Secretary of State. 
 
 On November 13, 1826, a treaty was concluded with Great Britain,, 
 ratified February 6, 1827, by the first article of which twelve hundred 
 and four thousand nine hundred and sixty dollars is to be paid to the 
 V nited States for the use of the persons entitled. This treaty was ne- 
 gotiated for the United States by Albert Gallatin. 
 
 On the 28th of March, 1830, a treaty was made with Denmark, rati- 
 fied June 5, 1830, by which that government agreed to pay six hundred 
 and fifty thousand dollars on account of the citizens of the United States. 
 This treaty was negotiated on the part of the United States by Henry 
 Wheaton, charge d'affaires. 
 
 On July 4, 1831, a treaty was made with France, ratified February 2, 
 1832, by the second article of which twenty-five millions of francs were 
 to be paid to the United States to satisfy claims of its citizens (see arti- 
 cle 1). William C. Rives acted for the United States. 
 
 On the 14th of October, 1832, a treaty was made with the Two Sici- 
 lies, by which two millions one hundred and fifteen thousand ducats 
 were to be paid to the United States to be distributed ainbng certain 
 claimants, less seven thousand six hundred and seventy -nine ducats, to 
 be retained by the United States for certain expenses. This treaty was 
 negotiated for the United States by John Nelson, charge" d'affaires, and 
 was ratified June 8, 1833. 
 
 On the 17th day of February, 1834, a treaty was- made with Spain, 
 ratified August 14, 1834, Cornelius P. Van Ness, envoy extraordinary, 
 acting for the United States, by which twelve millions of reals were 
 paid to the United States in satisfaction of all claims. 
 
 On the 11th day of April, 1838, a treaty was made with Texas, rati- 
 fied July G, 1838, concluded by the charge d'affaires of the United States,., 
 by which the sum of eleven thousand seven hundred and fifty dollars 
 
42 WAE ON THE PACIFIC. 
 
 was to be paid to the United States, to be distributed among certain 
 claimants, American citizens. 
 
 On the 11th day of April, 1839, a treaty was made with Mexico, John 
 Forsyth, Secretary of State, acting for the United States, ratified April 
 7, 1840, by which claims of citizens of the United States were referred 
 to four commissioners, two to be appointed by the United States, two by 
 Mexico, the King of Prussia to act as umpire. For any sum of money 
 found due citizens of the United States, Treasury notes were to be 
 issued. ' 
 
 On the 30th of January, 1843, a further treaty was made on the ,§ame 
 subject, ratified March 24, 1843, Waddy Thompson, envoy extraordinary, 
 acting for the United States. 
 
 On the 17th of March, 1841, a treaty was made with Peru, James O. 
 Pickett, charge d'affaires, acting for the United States, by which three 
 hundred thousand dollars were to be paid to the United States for claims 
 of its citizens ; proclaimed February 21, 1844. 
 
 On the 27th day of January, 1849, a treaty was made with Brazil, 
 David Tod, envoy extraordinary, acting for the United States, ratified 
 January 18, 1850, by which five hundred and thirty thousand millrees 
 were to be paid to the United States for the claims of its citizens. (Arti- 
 cles 1 and 2.) 
 
 On the 26th day of February, 1851. a treaty was made with Portugal, 
 ratified June 23, J851, Daniel Webster, Secretary of State, acting for the 
 United States, by which certain claims presented by the United States 
 on behalf of the ofiicers and crew of a privateer should be referred to 
 some sovereign of a friendly nation. 
 
 On the 8th day of February, 1853, a treaty was made with Great 
 Britain, Joseph Beading Bissell, envoy extraordinary, acting for the 
 United States, ratified July 26, 1853, by which it was agreed that all 
 claims on the part of corporations, companies, or private individuals, 
 citizens of the United States, upon the Government of Her Britannic 
 Majesty, presented since the treaty of Ghent, should be referred to cer- 
 tain commissioners. 
 
 On the 10th of September, 1857, a treaty was made with New Granada, 
 ratified November s, i860, Lewis Cass, Secretary of State, acting for the 
 United States; a board of commissioners was organized to adjust the 
 claims of the citizens of the United States against New Granada. 
 
 On the 8th day of November, 1858, a treaty was made with China, 
 William B. Keid, envoy extraordinary, acting for the United States, by 
 which five hundred thousand taels were to be paid for the satisfaction 
 of claims of American citizens. 
 
 On the 10th of November, 1858, a treaty, was made with Chili, ratified 
 October 15, 1859, John Bigler, envoy extraordinary, acting for the United 
 States, bj* which it was reserved to the King of Belgium to arbitrate 
 claims made by citizens of the United States for silver taken in bars by 
 the vice-admiral of the Chilian squadron. 
 
 On the 14th of January, 1859, a treaty was made with Venezuela, 
 Edwin A. Turpin, minister resident, acting for the United States, ratified 
 February 26, 1861, by which the former government agreed to pay cer- 
 tain citizens of the United States on account of being evicted from the 
 Aves Island the sum of one hundred and thirty thousand dollars. 
 
 On the 4th day of February, 1859, a treaty was made with Paraguay, 
 ratified March 7, 1860, by which the claims of the United States and 
 Paraguay Navigation Company, a company composed of citizens of the 
 United States, were referred to a commission, James B. Bowlin, special 
 commissioner, acting for the United States. 
 
 On the 2d day of July, 1860, a treaty was made with Costa Bica, ratified 
 
WAR ON THE PACIFIC. 43 
 
 November 9, 1861, by which all claims of citizens of the United States 
 for injuries to persons or damages to property were referred to a com- 
 mission, Alexander Dimitry, minister resident, acting for the United 
 States. 
 
 On the 25th of November, 1862, a treaty was concluded with Ecuador, 
 ratified July 27, 1864, United States represented by its minister resident, 
 by which " all claims on the part of corporations, companies, or individ- 
 uals, citizens of the United States, upon the Government of Ecuador," 
 were referred to a commissioner. 
 
 On the 20th of December, 1862, a treaty was made with the Govern- 
 ment of Peru, ratified April 21, 1863, by which claims of the owners of 
 vessels, citizens of the United States, were referred to a commission, the 
 envoy extraordinary representing the United States. 
 
 On the 12th of January, 1863, a treaty was made between the same 
 governments, ratified April 18, 1863, by which "all claims of citizens 
 of the United States against the Government of Peru " were referred to 
 a mixed commission, same envoy acting for the United States. 
 
 On the 10th day of January, 1864, a treaty was made with Colombia, 
 ratified August 19, 1865, extending a commission, proclaimed the 8th of 
 November, 1860, the Secretary of State acting for the United States. 
 
 On the 22d of October, 1864, a treaty was made with Japan, proclaimed 
 April 9, 1866, by which there was to be paid three millions of dollars to 
 four powers, the United States being one, "to include all claims of what- 
 ever nature," the minister resident representing the United States. 
 
 On the 25th of April, 1866, a treaty was concluded with Venezuela, 
 ratified April 17, 1867, by which "all claims on the part of corporations, 
 companies, or individuals, citizens of the United States, and the Gov- 
 ernment of Venezuela," which had been presented, were referred to a 
 mixed commission. 
 
 On the 4th of July, 1868, a treaty was made with Mexico, by which 
 claims for injuries to persons and property by "corporations, companies, 
 or private individuals, citizens of the United States and the Government 
 of the Mexican Republic," should be referred to commissioners, two to 
 be selected by each government, providing for an umpire, ratified Feb- 
 ruary 1, 1869, United States acting by its Secretary of State. 
 
 On the 4th day of December, 1868, a treaty was made with Peru, rat- 
 ified June 4, 1869, referring claims of citizens of the United States to 
 commissioners, the same as in the last recited treaty. 
 
 On the 12th of February, 1871, a treaty was made with Spain, Daniel 
 E. Sickles, envoy, acting for the United States, by which "the settlement 
 of the claims of citizens of the United States or of their heirs against 
 the Government of Spain," for injuries to persons or property, should be 
 referred to arbitrators and an umpire. 
 
 On the 8th of May, 1871, a treaty was made with Great Britain, rati- 
 fied June 17, 1871, by which the Alabama claims were referred to arbi- 
 tration. The United States finally waived all government claims and 
 recovered only for claims to be distributed to individuals. 
 
 On the 27th of November, 1872, a treaty was made with Mexico, rat- 
 ified March 17, 1873, by which a commission was continued to consider 
 certain claims of citizens of the United States. 
 
 I am not unmindful of the criticism of Senator Sumner on the Clar- 
 endon-Johnson treaty, nor of the principles contended for in the discus- 
 sion on the "Treaty of Washington, relating to the Alabama claims," but 
 a treaty can be framed fully protecting the Peruvian company in har- 
 mony with such principles. 
 
 SCOTT LORD, 
 
 October 1, 1881. Of Counsel. 
 
44 WAE ON THE PACIFIC. 
 
 No. 18. 
 
 [A complete transcript of the dispatch, with a name f nserted, as printed on page 567 
 of tienate Ex. Doc, No. 79, Forty-seventh Congress, first session.] 
 
 No. 376. 
 
 Mr. Hwrlbut to Mr. Blaine. 
 
 No. 28.] Legation of the United States, 
 
 Lima, Peru, November 23, 1881. (Received December 21.) 
 Sir : * * * I also send with this a long letter from Mr. Jacob 
 R. Shipherd, which I wish read and retained in the Department. I call 
 attention to the part marked with lines. I have written to him declin- 
 ing any further correspondence, unless through the Department, and 
 have also written a letter of explanation to Hon. George S. Boutwell, said 
 by Shipherd to be his attorney. 
 
 I am, sir, your obedient servant, 
 
 S. A. HURLBUT. 
 
 So. 19. 
 
 [A complete transcript of the letter on page 594 of Senate Ex. Doc. No. 79, Forty- 
 seventh Congress, first session.] 
 
 [Inclosure 1 in No. 39.] 
 
 Mr. Shipherd to Mr. Hurlbut. 
 [The Peruvian Company, 10 Spruce street, New York. Post-office box 3448.] 
 
 November 26, 1881. 
 
 Sir: Yours of October 26 is at hand, and your suggestions have at- 
 tention. 
 
 The capture and extradition of Calderon and his minister since you 
 wrote have changed the apparent issues greatly, and for the moment we 
 wait further developments. 
 
 The drift of events as a whole tend, as I now think, toward a change 
 of the base of negotiations from Lima to Washington. Thus: 
 
 1. Peru's only hope lies in the United States and in this company. 
 
 2. If the United States and this company undertake to help her, they 
 will dictate the terms of settlement alike to Peru and to Chili, and this 
 they can better do at Washington than at Lima. 
 
 3. These terms will probably imply a protectorate, and a protectorate 
 can only be created by the Senate, through Congress, or by both. As I 
 have already written you, this protectorate should be instantly asked for 
 by accredited deputies sent from Lima to Washington. 
 
 4. Within the last thirty days a Chilian functionary of the highest rank 
 made this declaration: 
 
 *■' By far the most dangerous element in the whole situation is the claim 
 of the Peruvian Company. I have carefully and repeatedly examined 
 their papers, and I don't for the life of me see how we are going to get 
 round that claim. It gives me more anxiety than any possible action of 
 the United States Government apart from it. The Peruvians will of 
 course admit the claim, and then the United States Executive is bound 
 
WAR ON THE PACIFIC. 45 
 
 to back it up, and what answer can we make f It troubles me more than 
 I can describe." 
 
 5. I know that the Chilian minister at Washington has practically 
 determined to seek a conference with me at an early date; on mypartl 
 am about to take a step which will make it easy for him to do so ; the 
 moment he and I arrive at an understanding all the rest will be easy. 
 Be assured I shall assume Peru's concurrence at the outset, but only 
 until she has a fair opportunity to speak for herself. The first moment 
 she can speak, she must speak, or I shall drop her out of the account. 
 
 6. I am send-officially advised that the Chilians have demanded your 
 removal, and have been denied ; and I know that by the next steamer 
 Senor Martinez will (unless he changes his present determination) ask 
 for power to treat with Mr. Blaine and the president of the Peruvian 
 Company direct. 
 
 7. Mr. Martinez is working night and day to secure utterances of the 
 press here favorable to the Chilian cause, and not without some success ; 
 he regards this the battle-ground yet to be won. 
 
 8. I cannot, too strongly assure you that the interests of Peru at Wash- 
 ington are in wretchedly incompetent hands, and such an appointment 
 as I suggested ( Mr. Tracey) or far better a direct deputation asking a 
 protectorate, is of the utmost importance. Tn any event Elmore and 
 Suarez who think of nothing but the impossible socUte contract, cannot 
 too soon be abolished altogether. I say this only in the interest of Peru ; 
 this company has not the slightest ill-will toward either; indeed^ it will 
 gladly show them any personal courtesy or kindness in its power. I told 
 Mr. Elmore months ago, also, that our plans were liberal enough to take 
 in the sociStd itself on a fair basis, our motto being, " Live and let live " 
 on all sides; but he makes no response. 
 
 As soon as your letter came I sent a copy to Mr. Blaine through Sen- 
 ator Blair. So expense will embarrass us ; no problem will discourage 
 us. You are very safe in your assumption on this point ; but we have, 
 for fundamental "reasons, asked little direct aid from the government 
 as yet. 
 
 After Mr. Blaine had formally advised me of the filing of our demands 
 and the proofs of their service, I did suggest that he might forward 
 copies to the minister at Lima and at Santiago, to be presented by the 
 minister with the remark that the company was known to the Depart- 
 ment to be composed of reputable gentlemen whose representations were 
 entitled to entire respect ; but he seemed to think such an instruction 
 unnecessary, remarking that it was, of course, the business of ministers 
 to afford always their unofficial good offices, &c. I frankly think the 
 instructions should be sent ; but relying as I now do upon your entire 
 good will, and expecting nothing from Santiago, I do not press the 
 point. 
 
 Not a little criticism of your course has appeared in print, but the 
 unfortunate letter to Pierola's secretary is chiefly chargeable with it. 
 That letter, however true, was unnecessary and impolitic. We are all 
 compelled to admit so much. But your memorandum to Admiral Lynch, 
 the secretary and I stoutly defend, and will defend, and I shall take the 
 necessary measures to antidote Mr. Martinez's negotiations with the 
 press. 
 
 I was in Washington again last week, and had a full talk with the 
 President at General Grant's suggestion, and upon his introduction. 
 My chief point was that the Executive might avoid a discussion of the 
 abstract question of intervention by substituting the not debatable 
 question whether it is not bound to take such charge of the situation 
 
46 WAR ON THE PACIFIC. 
 
 as may be necessary to the protection of American property interests 
 in Peru. Mr. Cilley was with me. We have practically united interests, 
 and we two stood at the interview for $1,500,000,000 of American prop- 
 erty. While properly reticent, the President was evidently impressed 
 with the suggestion, and Senator Blair, General Grant, Governor Bout- 
 well, and others who have his ear, will follow it up. 
 The situation at the moment of this writing seems, to be this : 
 
 1. The United States must see to it that Peru has an authorized exec- 
 utive, and that he is left perfectly free to treat with the United States 
 and with this company. 
 
 2. Such executive, if he is wise, will use his first moment of liberty in 
 admitting our claim unconditionally, and his next in basing on it and 
 on Mr. Oilley's large interests direct application for an American pro- 
 tectorate. Leave the rest to this company, and you will not be disap- 
 pointed. 
 
 I am, sir, your obedient servant, 
 
 JACOB E. SHIPHEED. 
 Hon. S. A. Htjrlbtjt, Lima. 
 
 No. 20. 
 
 [A complete transcript of the letter on page 595 of Senate Ex. Doc. 79, Forty-seventh 
 
 Congress, nrst session. ] 
 
 [Inclosure 2 in No. 39. ] 
 
 Mr. Shipherd to Mr. Hurlbut. 
 
 [The Peruvian Company, 10 Spruce street, New York. Post-office box 3448.] 
 
 November 29, 1881. 
 
 My Dear Sir: Yesterday I heard through a mutual friend from Mr. 
 Arizola. He assures us in gratifying terms of your fidelity to Peru and 
 of your readiness to promote our plans, so far as they shall be found 
 well founded and practicable, but gives as a first impression the opinion 
 that neither Landreau nor Cochet has any rights. 
 
 His correspondent, who thoroughly knows Peru, and the Peruvians, 
 expresses no surprise and abates nothing from his confident original 
 opinion, either as to merits or as to the outcome. If the Peruvians ever 
 had a moral sense it must have been in a pre-existent state; they have 
 never shown it in Peru. As I have heretofore suggested, we have never 
 expected them to be just; we expect them now only to look out for 
 themselves. Certainly the facts are ample to warrant the executive in 
 so construing them as to make a way out for Peru; it contents us that 
 he should discuss it in no other light. 
 
 If in such premises even there is not mind enough left to perceive 
 either what is due to equity or wise in the emergency, then indeed are 
 the Chilians wholly right. Peru is rotten to the core and has a right 
 only to sepulture. 
 
 I trust by the time this reaches you Calderon will be near you again; 
 if not, then Montero must take the helm. The press is now saying a 
 great deal and largely on the Chilian side. Even the Tribune denounces 
 intervention in the abstract. Only these American rights can give the 
 necessary reason to satisfy our public, and it would seem indeed incred- 
 ible that Peru should miss such an opportunity. 
 
WAR ON THE PACIFIC. 47 
 
 We can easily deal with Chili, and you may assure Peru that we shall 
 not waiton her long. 
 
 So long as you stand with us we will stand faithfully for you. You 
 have deserved and have won Peruvian confidence; you have made Chili 
 an enemy; we deal only with the facts; you may rely on our where- 
 abouts with mathematical certainty. l " . 
 Very truly, yours, 
 
 JACOB E. SHIPHERD. 
 Hon. S. A. Htjrlbtjt. 
 
 No. 21. 
 
 [A complete transcript of the letter on page 585 of Senate Ex. Doc. No. 79, Forty- 
 seven tli Congress, first session.] 
 
 [Inclosure 1 in No. 36.] 
 
 Mr. Hurlbut to Mr. Shipherd. 
 
 Lima, December 17, 1881. 
 Jacob B. Shipherd, Esq., New York : 
 
 Sir : I have tried, as far as I could, to make you understand that I 
 cannot have, and ought not to have, anything to do with your company 
 or yourself as its agent, or with any other similar. 
 
 Both my general and particular instructions forbid me from taking 
 notice of such matters, unless referred to me by the Department of 
 State. Once more, and for the last time, I repeat this statement. 
 
 I shall return your papers to the Secretary of State, as I have done 
 the others, and definitely close all correspondence with you unless di- 
 rected by the Department. 
 
 Your obedient servant, 
 
 S. A. HUELBUT.