No. 6.
Mr. Osborn to Mr. Evarts.

No. 259.]

Sir: The reported success of the Chilian army in the late battles with the allied forces, and the occupation of the province of Atacama by the forces of Chili, produced a profound sensation in government circles as well as among the people generally, and caused the President to daily hold secret consultations for several days with his cabinet and the most prominent men of the nation of both political parties, who had been invited by him to the conference, with the object of determining what policy this government should adopt under the existing state of affairs on the Pacific coast. I understand that the question of mediation by this government was discussed, and also the further question of armed intervention in case Chili would not accept mediation and should undertake to force Peru to the wall.

It is understood, however, that nothing was definitely settled in the conference, except that Ex-President Mitre should be invited to go to Chili on a special mission, which the general declines to accept; at least, he is still here.

This government is making every effort to meet Chili, both on the water and land, in case it should be required.

* * * * * * *

As the matter now stands, it appears to me that a strong prospect of war with Chili may reconcile the conflicting political elements and keep the country free from internal troubles, and the exhausted condition of Chili when she comes out of the war with the allies, whether victorious or defeated, and the complete preparation of this country for war, may prevent any armed conflict between the two countries.

I have, &c.,

THOS. O. OSBORN.