No. 564.
Mr. Hurlbut to Mr. Blaine.

No. 2.]

Sir: I propose, in this dispatch, to lay before you the precise situation 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 conquered. She has no longer any army or navy; she has no soldiers, no ships of war, no fortress, no guns in position or in the field, no munitions 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 Chilians have captured or destroyed her navy, have occupied and still hold her entire sea-coast, her capital city, and her customhouses. They have occupied in force the territory of Tarapaca, with its nitrate beds, and they hold the guano deposits and all the accessible and fertile valleys debouching on the sea. They collect the duties at all the ports, they sell the nitrates and guano, they levy heavy contributions 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 in 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 resistance to the Chilian force has ceased.

[Page 922]

In so far as regards the political situation of the country in its internal relations, I consider that the government of Garcia Calderon was properly recognized by my predecessor. It is not a regular or constitutional government, but it is infinitely more so than that of Piérola, which was a violent usurpation, autocratic and despotic. Around the Calderon 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, representing in its number a very decided majority, and a full quorum of senators and representatives, long since legitimately elected under all constitutional forms.

This Congress has recognized Mr. Calderon, and re-elected him as Provisional President. Calderon and his cabinet are pefectly ready to give way, at any time, to any man of character who can unite all elements in the nation, and who may be approved by the Congress.

To this end negotiations are now going on with Piérola and his adherents. 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 which surround the Calderon government in their honest attempt to procure fair conditions of peace.

In 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 probably to foster a division in the nation, which would still farther diminish her capacity for resistance.

Pursuant to the resolution of Congress, Mr. Calderon named his plenipotentiaries to confer on terms of peace with 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 conferences should be of a private character. To this the Peruvians replied, 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 prolong 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 integrity or reduces the sovereignty of Peru; and third, because the possession [Page 923] 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 government, 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 consequences. He also says that he is prepared to pay any indemnity in reason, to twenty, thirty, or even forty millions of dollars, and inasmuch as the Chilian Government officially state that $30,000,000 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 terms of peace from Chili, yet, although utterly 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 fulfilled all its legitimate purposes; that longer continuance of the state of war would be disastrous to both countries, and an unnecessary invasion of the rights of neutrals, engaged in commerce or owning, as they do, large properties in Peru; 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 purpose 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 highest influence in South America, we should subserve the purposes of a truer civilization, and inaugurate a higher style of national and international law on this continent.

In whatever form this may be doue, 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 instructions given to myself and Mr. Kilpatrick, and the personal conferences held with you, I shall not interfere with Mr. Godoy 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 Santiago, 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 [Page 924] 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 confidential 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 telegram to that point would reach me in nine days after its delivery.

I have, &c.,

S. A. HURLBUT.
[Inclosure in No 2.]

Mr. Hurlbut to General Kilpatrick.

My Dear Sir: I have assumed charge of this legation on the 3d instant, relieving Mr. Christiancy. I have seen enough of the situation here to assure me that the hope of a permanent and honorable peace is not likely to be realized, unless the conquerors 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 Peruvian 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 arranged as speedily as possible. 2d. That the integrity of the Peruvian territory should be maintained. 3d. That full, fair, and reasonable indemity ought to be made to Chili for the expenses of the war.

The 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 the Pacific, it becomes daily of more importance to us that peace should prevail.

Now it appears to me that a peace dictated in humilitating terms by a conquerer, or extorted under pressure of superior force, necessarily brings with it the seeds of perpetual 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 necessarily comes from defeat in arms. I am perfectly sure that terms of money indemity can be arranged. I am equally sure 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 chasm. He has in session a very decided majority of the lawfully elected members of Congress. Congress has authorized him to treat with Señor Godoy on terms of peace. I am afraid that that astute diplomat intends to play fast and loose. As yet he has not recognized Calderon officially, nor has he consented to exchange credentials and powers with his plenipotentaries. This of course would be complete recognition, which undoubtedly should precede any conference on matters of substance.

[Page 925]

In other words, I think he intends to recoginze 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 further 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 situation to the Secretary of State. * * * *

Your friend and colleague,

S. A. HURLBUT.