No. 118.
Mr. Osborn to Mr. Evarts.

No. 143.]

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 attached to an American tug-boat, I have to inform you that the instructions therein contained have been duly observed.

The information which I have been enabled to obtain bearing upon this subject is exceedingly meagre, yet I judge that I am sufficiently acquainted 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 Monuoy, written to Mr. Christian cy under date of January 3. By referring to your copy of this letter you will see that the information furnished, touching the affair 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 without testimony confirming it. It is true, however, that this government has asserted from the beginning of the war that Peru should not be permitted 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 support 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 Lord Salisbury was, I am credibly informed, 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 from them for means with which to carry on the war. That Peru has been very materially crippled in her finances by Chili’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. OSBORN.