No. 40.
Mr. Trescot to Mr. Frelinghuysen.

No. 5.]

Sir: In my last dispatch I informed you that the time for a confidential conference with the Chilian secretary for foreign affairs had been appointed. Since then I have had three conferences with Mr. Balmaceda, in which, with entire frankness, we reviewed the existing [Page 62] condition of our relations in reference to a possible settlement of the terms of peace between Chili and Peru and Bolivia. The result of these conferences I telegraphed you on Monday last, January 23, and I did so not only because instructions were necessary, but because the secretary distinctly informed me that certain contemplated military movements in Peru were suspended, in hopes that through the good offices of the United States some practical solution might be found. I could scarcely expect such a suspension to be prolonged through the two months (and perhaps more) which would be occupied in the transmission of my dispatch and the receipt of a reply. And I think it is evident that not only the interests of the belligerents but the position of the United States require a prompt decision as to the extent to which the government will further intervene in this matter.

I think the conditions imposed by Chili are hard. I am not at all sure that any representation by the United States will induce Peru to accept them. Chili not only desires, but needs peace. The occupation of Peru is a very heavy drain upon her population, and although its immediate expenses have so far been borne by Peru, the resources of Peru cannot long stand such an imposition, and the cost of the continued occupation and the further military operations which must be undertaken will then have to be defrayed by Chili. Peru may prefer to wait until these embarrassments develop rather than to cede territory at present, but I ought not to conceal from you my conviction, which at present I can only state to you as a conclusion without the reasons, that Peru is powerless to help herself. There is no government and very little prospect of the establishment of a stable one, and her power of military resistance to the Chilian forces anywhere seems absolutely null.

Without the intervention of the United States Chili can, and will, compel Peru to accept any terms she may choose to impose, or she will define her military occupation to suit her plans of annexation and leave the rest of Peru to anarchy.

It is possible that the terms of peace, which I sent you by telegram, may be modified at the earnest remonstrance of the United States. I have very little doubt, not only from what I learn here, but from recent dispatches from Mr. Adams, that Bolivia is willing to make peace at the cost of her littoral on the Pacific. This, with the cession of Tarapacá, is ample indemnity and security for Chili. The imposition of twenty millions more upon Peru as indemnity and the prolonged occupation of Arica seem to me to be very extreme conditions.

But the cession of Tarapacá is unavoidable, unless the United States means to intervene forcibly, and in the present condition of Peru such an intervention would have to be undertaken by the United States, with no assistance from Peru herself which would be worth considering.

It is under these circumstances that I suggested that I should be-allowed to recognize the necessity of that cession and offer the good offices of the United States if the other terms were modified. It is unquestionably important to Chili to obtain a peace, and the good offices of the United States will relieve the embarrassment in the way created by the arrest of Calderon and the disorganized condition of the Peruvian Government. The government of Montero, or anybody else which would make peace, through the United States, would be recognized.

But it is difficult to say how far the recommendation of the United States would now be received by any government in Peru. The action of Mr. Hurlbut, whether intentional or not, has so exaggerated the belief in the Peruvian mind of the certainty and efficacy of the intervention [Page 63] of the United States to prevent any cession of territory, that I am not prepared to say that any Peruvian Government will he willing or strong enough to accept such terms, and Chili naturally expects that if she accepts our good offices we will, upon failure of a satisfactory result, refrain from any further interference.

In all this I have assumed that the government has not yet considered the possibility of a forcible intervention on behalf of Peru, and in my telegram I intended to convey the idea that, in my opinion, some modification of the terms may yet be reached which would allow the United States to recommend their adoption to Peru.

I have, &c.,

WM. HENRY TRESCOT.