Mr. Kilpatrick to Mr. Seward.
Sir: I have the honor to report that the unhappy events in Peru, which recently culminated in the overthrow of the constitutional government, have produced a profound impression in Chili, and threaten to involve the States of this coast in very embarrassing complications. You are aware of the remarkable decree of the Peruvian revolutionary chief, Canseco, dated in October last, in which all acts of the dictatorship of Colonel Prado are declared null and void. That decree has been reaffirmed by the revolutionists since their seizure of the government, and to all intents and purposes is now the law of Peru, as it was the corner-stone of the insurrection. Among the evils already suffered, and rapidly accumulating from such a complete repudiation of Peru’s obligations to governments and individuals, are the violent disruption of the alliance with Chili, Bolivia, and Ecuador; and the disinclination approximating to a refusal of the new government to settle the pecuniary claims held by Chili against Peru, and whose payment was being urged previous to the overthrow of President Prado.
Chili’s claims amount to several millions of dollars, of which her expenditures in maintaining the Peruvian squadron during the Spanish difficulties, and her interest in the loan recently contracted by Peru in the United States, form a considerable part. These items are in the category of the acts of the dictatorship repudiated by the new government. It is not apprehended that the other claims will be altogether repudiated, but there is little hope of their receiving favorable attention immediately, as the bitterness against Chili, which Castilla and his associate leaders of the revolution bore with them from their late exile in this country, has extended to all classes of the new party; and the friendly relations of Peru with Chili are regarded by the revolutionists with a chilling indifference that would require but little addition to precipitate the States recently in alliance into hostilities. So alive is Chili to the possibilities above referred to, that when the intelligence was received here of the success of the revolution, this government seriously considered the propriety of detaining the Peruvian iron-clad frigate Independencia and monitor Huascar, then in the bay of Valparaiso, as security for the payment of her just dues, and as a precautionary measure in view of the hostile attitude of the revolutionary government. Wiser counsels prevailed, however, and the vessels were permitted to depart for Callao.
From my experience and observation in these South American states I am of the opinion that a collision between Chili and Peru is not very imminent, although the aspect of the political horizon is ominous enough. Intestine disturbances are as common to most of these countries as are the periodical outbreaks on our western frontier; but while the Spanish Americans are ever plunging their own States into anarchy, they are slow to execute hostile threats against other governments. The total absence of sympathy between Chili and Peru at present, in connection with the claims above mentioned, may eventually bring on hostilities, but some time must elapse before such an unfortunate event can take place. In the mean time the new government of Peru may correct the mistake of the decree of repudiation, and afford an opportunity for harmonizing the discordant elements now widely separating the two countries.
I shall carefully observe the progress of the new relations about to be assumed, and shall keep you fully advised. If at any time it should [Page 317] become evident that the good offices of the United States government might be quietly interposed between these States for the prevention of war, I shall devote myself with all the prudence that I am capable of to the accomplishment of so desirable an end.
Ex-President Prado, accompanied by Colonel La Torre, chief of the “Column of Honor,” Colonel Ugarteche, father-in-law of the ex-President, and Captain Delboy, commander of the Peruvian war steamer Meteoro, arrived in Valparaiso in the United States steamer Nyack, commander Pendergrast, on the 20th ultimo. The Nyack touched at Caldera in her voyage from Callao, and the telegram received here on the 18th, announcing the approach of the deposed President, created much excitement, particularly in Valparaiso. The ex-President was received with acclamations of welcome by an immense concourse in Valparaiso, and has been the object of the most courteous attentions since his arrival. He proposes to engage in agricultural pursuits here; but this will probably be for a short time, as a revulsion is certain to take place in Peru within a year or eighteen months, and Colonel Prado will undoubtedly be placed at the head of the movement.
Should the present unfriendly feeling between Chili and the revolutionary government continue, Colonel Prado would, I am assured, receive material aid from this government as well as from the Chilian people at large, for regaining his position at the head of affairs in Peru. I have no doubt that within two years the ex-President will be re-established, and by his late experience enabled to avert, during his legitimate term of office, the calamities which his recent mild administration suffered to accumulate upon himself and the country. As an evidence of his innocence of corruption, a quality so rare in Peruvian officials, he arrives here quite poor, and is compelled to receive from Chili the pay of a general of her army, which rank was conferred upon him by this government soon after the battle of the 2d of May, 1866, at Callao.
The relations of Chili with Spain remain unchanged. The events in Peru have entirely overshadowed the Spanish-American question for the present, and it is difficult to forsee what new phase the subject may now assume.
Domestic affairs in Chili are perfectly quiet, and the country is prospering in the most encouraging manner.
The President of Chili being about to absent himself from Santiago for a month, by a visit to the Araucanian Territory in the south of the republic, and as all the ministers are preparing to spend the hot season, now just commencing, at the watering places and other fashionable resorts, I avail myself of the interim to visit the Andes. I propose spending about two weeks along the Cordillera, and on my return will endeavor to make to the department an interesting report of my observations.
I have the honor to remain, very respectfully, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.