No. 580.
Mr. Hurlbut to Mr. Blaine.
Lima, Peru, November 23, 1881. (Received December 21.)
Sir: The evidences of an intention to occupy Peru for an indefinite time are multiplying.
The Chilian authorities are preparing a full system of internal government, including judicial functionaries. They are carefully examining all sources of internal revenue heretofore belonging to Peruvian authorities, and announce the intention to collect all these by their own officials.
It is stated that this new order of things will go into effect on the 1st of December. The effect of such a declaration will be disastrous to all foreign interests in this country, and will at once revive war in its worst form.
The custom-houses now yield to Chili from nine to ten millions per annum. Add to this the internal revenues, and it is evident that, so far as the Chilian Government is concerned, they will make money by the occupation. But the occupation, to be effective, must be in military force much greater than now, and the weakness of Chili consists in its small population. The steady drain of effective men is beginning to be felt severely by that class who furnish the rank and file, and the complaints are already serious. And if this be the case now, when half or more of Peru is anxious for peace, and takes no active part in the war, how much more serious will it be when the whole effective population of Peru perceives that nothing is left them but war if they desire any portion of independence.
The military occupation of Peru, declared as a definite policy, will [Page 952] compel an outer line of armed Peruvians, and effectually close all access to the interior.
Thus commerce will either be prevented or double duties, Chilian and Peruvian, collected, and the coast cities which live upon the commerce of the interior will rapidly decline. Our interest in the general commerce of Peru is not as large as that of England or France, but it is worth protection. Our internal interests are very large, for the three great railways of Peru are owned and controlled by Americans, and are even now paralyzed.
The establishment of this poilcy by Chili means absolute ruin to these interests, involving many millions of dollars.
Irregular warfare, thoroughly possessing itself of the interior, will breed rapine, violence, and all possible evil.
The only thing outside of foreign interference which I see to hinder Chili from inaugurating these evil days is her want of population. I see, on inspection of the new troops, that they are largely composed of boys. I learn that labor is very scarce in Chili; that as high as seven soles a day has been offered for ordinary laborers on railways; that recruiting, even with heavy bounties, is a failure.
These facts, which I believe to be well founded, may incline the rulers of Chili to peace, otherwise we must look for military occupation. To-day (the 23d November) I received an official letter from Vice-President Montero, dated at Cajamarca, a translation of which is inclosed. I am also in receipt of reliable information that Cacères has forbidden Piérola to come within his command, and that a battalion sent by Piérola from Ayacucho to put down the movement in Cuzco, has joined the constitutionalists, and that a force, both from Cuzco and Arequipa, is in motion upon Ayacucho. I sincerely wish that Mr. Calderon could be restored to the country, as he is undoubtedly the man of most brains and education. No dispatch came to me by the last mail, and as the one to arrive on Saturday makes no connection with the United States, I do not expect anything.
I received a telegram from you, dated the 16th November, which I answered on the 17th. I had acknowledged the receipt of the telegram which you date as of 31st of October, but which came to me with date of 2d November on the 3d, but made no other answer until called for by your telegram of 15th November.
I am, sir, &c.,