[Translation.—Confidential.]

Memorandum of a conversation between Mr. Seward and Mr. Barreda.

Sir: On the evening of the 6th instant I had a long interview with the honorable Secretary of State in relation to our questions with Spain. Placed in a position of entire frankness, we freely exchanged our ideas, and our interview being divested of all official character, we were enabled to mutually express our opinion without reserve.

His excellency believes that the time has arrived when it may be well to cause to cease a war which, in its present aspect, promises to be very prejudicial to the allied republic, because it will impose upon them enormous sacrifices to transfer it to points where it may be felt by Spain. He considers it important that those republics may obtain a substantial peace under the auspices of governments which prove their ability to consolidate their institutions and to promote the development of the great elements of prosperity which they possess, and he is of the opinion that Spain desires now to improve the means that may be offered to finish a question in which she has lost all hope of gathering any really important benefits.

In such circumstances Mr. Seward desired that we should together seek for a means of arriving at a satisfactory solution of these questions.

I replied to his excellency that the difficulties presented in the continuation of the war, under its present aspect, were not hidden from me, but that we continued increasing our resources and means of action, and hoped to be enabled very soon to transfer the war where it would be felt by our enemy; that, moreover, the war awakening the patriotism of the country, uniting all parties, and raising the feeling of national dignity, had done, and continued doing, us great good in the interior, while the alliance with the other republics of the Pacific, the extension of relations and unity of thought created by its influence, were promising to produce political and social results of the highest moment; that in the state of public opinion in America, the allied governments could not make a peace which should not be very honorable, and which should not define in some [Page 669] manner the realization of an idea of continental solidarity which might forever put an end to European intervention in America.

Mr. Seward answered me, that for some time his mind had been preoccupied with the idea of reducing to practice, in given cases, that theory—hitherto impossible of realization in its absolute form—of a grand continental alliance, and that he believed to be able now to give it a practical application for the arrangement of these questions. The plan that he proposed to me was, that the President of the United States should address a note, in the same terms, both to the allies and to Spain, causing them to see the importance of concluding the war, and inviting them to send their plenipotentiaries to Washington, who, united in a congress under the impartial presidency of the State Department of the United States, would enter upon negotiations for peace; that in the matter of claims, and any other in which an agreement could not be reached, even through the good offices of the United States, the president of the union would name the arbitrator for their decision; that this idea accepted, an armistice would be signed which should involve the recognition of the nations signing, and their territorial integrity; and if the republics on the Pacific agreed to this method of arrangement, he would extend a similar invitation to Brazil and her allies and to Paraguay, to finish their war.

The Secretary of State entered into some considerations as to the transcendent importance of this plan, and spoke of the advantage of making, in this manner, the question continental, and of solving it in Washington and not in Europe. He concluded in explaining to me that, although he had not mentioned his idea to any one, because he first wished to speak with me, yet he had some reasons to believe that Spain, under possible contingencies, would not decline it.

I ought not to conceal from you that I received very favorably, and so expressed myself to Mr. Seward, a plan of settlement which, in my judgment, satisfies the demands of honor, national dignity, and the aspirations of America.

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I am, sir, your obedient servant,

F. L. BARREDA.

The Secretary of Foreign Affairs, Lima.