No. 45.
Mr. Frelinghuysen to Mr. Logan.

No. 41.]

Sir: In the annual message of the President, submitted to Congress at the opening of the last session, the following passages occur:

The war between Peru and Bolivia on the one side and Chili on the other began more than three years ago. On the occupation by Chili in 1880 of all the littoral territory of Bolivia, negotiations for peace were conducted under the direction of the United States. The allies refused to concede any territory, but Chili has since become master of the whole coast of both countries, and of the capital of Peru. A year since, as you have already been advised by correspondence transmitted to you in January last, this Government sent a special mission to the belligerent powers to express the hope that Chili would be disposed to accept a money indemnity for the expenses of the war, and to relinquish her demand for a portion of the territory of her antagonist.

This recommendation, which Chili declined to follow, this Government did not assume to enforce, nor can it be enforced without resort to measures which would [Page 93] be in keeping neither with the temper of our people nor the spirit of our institutions.

The power of Peru no longer extends over its whole territory, and in the event of our interference to dictate peace would need to be supplemented by the armies and navies of the United States. Such interference would almost inevitably lead to the establishment of a protectorate, a result utterly at odds with our past policy, injurious to our present interests, and full of embarrassments for the future.

For effecting the termination of hostilities upon terms at once just to the victorious nation and generous to its adversaries, this Government has spared no efforts, save such as might involve the complications which I have indicated.

It is greatly to be deplored that Chili seems resolved to exact such rigorous conditions of peace, and indisposed to submit to arbitration the terms of an amicable settlement. No peace is likely to be lasting that is not sufficiently equitable and just to command the approval of other nations.

As the policy thus outlined should govern your conduct and that or your colleagues at Lima and La Paz, and as you and they should move harmoniously in representing the views of your Government, considering recent occurrences here and in Chili and Peru, the time seems opportune to instruct you more fully than the necessarily brief statement in the message can do.

To this end a review of the action of this Government is proper.

The war between Peru and Boliviaon the one side and Chilion the other began nearly four years ago. In 1880 the substantial successes of Chili, and its conquest and occupation of all the littoral territory of Bolivia, furnished an opportunity for a pause in operations, and for negotiations for a peace. These negotiations were conducted upon the Lackawanna, in the presence of the representatives of the United States. At that time peace could have been secured upon much more favorable terms for the defeated party than now seems possible. The allies, however, refused to concede any territory to Chili, and the war was continued until the latter became master of the coast and capital of Peru.

President Pierola fled from Peru, and his Government succumbed to a revolution which made Calderon President and Montero Vice-President. This government was recognized by the United States. The Chilian military authorities soon after took possession of Mr. Calderon by violence and carried him to Chili, where he is now detained, and the United States still continue to recognize his government in the person of Mr. Montero. In this state of affairs the President in 1881 sent a special mission to the three countries in the hope that a way might be found for terminating the war, through the good offices of the United States.

It was hoped that Peru and Bolivia might through our unselfish counsels be brought to see that Chili might be found willing to accept those fruits in the form of a money indemnity, without demanding a sacrifice of territory. All these hopes proved to be groundless and the mission returned, having effected nothing beyond giving to all the parties new proof of the good will of the United States and of their sincere desire to bring about an equitable and lasting peace.

Notwithstanding this lack of success, the United States did not relax their efforts to attain the satisfactory result for which they still hoped. After the death of General Kilpatrick, you were selected to succeed him, and Mr. Partridge was sent to Lima when the death of General Hurlbut left that post vacant.

My instruction to you, No. 12, of the 26th of June, 1882, reviewed the situation, and you were informed that the belligerents wished to have peace secured through the good offices of the United States. I set forth that an indemnity for the expenses of the war might involve a payment [Page 94] of money and even a cession of territory, and you were directed particularly to guard against substantial injustice.

You were instructed, to tender anew to Chili the friendly counsels of the United States, to make known the views of this Government and its earnest desire that the war should be terminated, to continue the efforts to induce Chili to moderation in her demands and to impress upon the Government of that country that any substantial concession on its part would be regarded as a recognition of the disinterested counsels of the United States.

I advised you to endeavor to secure for Peru in any treaty of peace as large a part of the provinces then occupied by Chili as possible, and as large a money compensation as possible for whatever territory might be retained by Chili, and you were authorized, should Chili be inclined to avail herself of your services, with the co-operation of your colleagues, to use your good offices with Peru and Bolivia in arranging terms.

Pursuant to these instructions, which were also forwarded to Mr. Partridge, while your colleague at La Paz was instructed to co-operate with you, you proceeded to Santiago, calling on the way upon Mr. Partridge at Lima, and since your arrival in Chili you have endeavored to bring about a settlement. Your dispatches have acquainted this Government with the cordial reception extended to you by the Chilian Government, with the friendly desire expressed by it that through your instrumentality peace might be attained, and with the negotiations which have taken place.

You have represented that while Chili claims Tarapaca, Tacna, and Arica, the modified terms, upon which you are satisfied that Chili is willing to treat, embrace a waiver of money indemnity of twenty millions heretofore claimed from Peru, the renunciation of the claim to one-half the income from the Peruvian guano deposits, and the payment by Chili to Peru of the sum of $10,000,000, Chili guaranteeing to Peru and Bolivia the rights of transit to the Pacific over the territory to be taken by Chili, and exemption from Chilian taxes on imports and exports.

The terms thus proposed could not be regarded otherwise than as a friendly recognition of the counsels of the United States and as an endeavor on the part of the Government of Chili to so modify its demands that they might be accepted. The negotiations, however, were soon broken off. The question as to the authority of those assuming to represent the Government of Peru to treat with Chili seems to be the great obstacle to successful negotiation. This difficulty, coupled with the demand of Peru for a truce, and with a demand for a treaty engagement securing the rights of Peruvian creditors, interrupted and broke off the negotiations.

In my telegram of February 21, 1882, to Mr. Trescot, and in my instruction to him, No. 9, of February 24, 1882, I intimated that if Chili insisted upon the cession of Tarapaca, it was not impossible that the creditors of Peru would maintain that its revenue was hypothecated to them. This intimation was undoubtedly conveyed to the authorities of Chili. It now derives additional force from the increased demands of Chili for territorial guarantee.

As you have seen from the extract from the President’s message, this Government adheres to the position which it has consistently maintained, and which was stated in my instruction to Mr. Trescot, of the 9th of January, 1882, as follows:

The President wishes in no manner to dictate or make any authoritative utterance to either Peru or Chili as to the merits of the controversy existing between those [Page 95] Republics as to what indemnity should be asked or given, as to a change of boundaries, or as to the personnel of the Government of Peru.

The President recognizes Peru and Chili to be independent Republics, to which he has no right or inclination to dictate.

Were the United States to assume an attitude of dictation towards the South American Republics, even for the purpose of preventing war, the greatest of evils, or to preserve the autonomy of nations, it must be prepared by army and navy to enforce its mandates, and to this end tax our people for the exclusive benefit of foreign nations.

The President’s policy with the South American Republics and other foreign nations is that expressed in the Immortal address of Washington, with which you are entirely familiar.

What the President does seek to do is to extend the kindly offices of the United States impartially to both Peru and Chili, whose hostile attitude to each other he seriously laments; and he considers himself fortunate in having one so competent as yourself to bring the powers of reason and persuasion to bear in seeking the termination of the unhappy controversy.

It cannot be doubted that all the parties desire the speedy termination of a strife unduly prolonged, and which inflicts scarcely less injury upon the victor than upon the vanquished.

Chili, with a population of about 2,000,000, is sustaining an army which rapidly takes from her territory and from the useful and necessary occupations of life a very large proportion of able-bodied men. Such a drain cannot but inflict a most serious injury upon that country. A continuance of the present status, with the freedom that is exercised by Chilian troops in the capital and territory of Peru, cannot fail to so affect them as to make their return to civil life a source of great danger to the Republic.

Further, while it is remembered that Chili has largely sustained the expense caused by her army of occupation from exactions upon the citizens of Lima, it should be observed that the state of affairs existing in that capital is such that those exactions cannot long continue to yield any important revenue, and that Chili, a conqueror in enemy’s territory, may not improbably at no distant day find that by her own policy she has become obliged to tax her own people to sustain the army holding Peru.

As to Peru, the case is still more unpropitious. With her capital and a large part of her territory in the hands of an exacting enemy; with a foreign military government at Lima, which practically prohibits trade, while at the same time imposing heavy taxes; with a native government which has not (so far as this Department understands) actual control over all the territory unoccupied by the enemy; with several native armies at different points in the interior, draining the country, interrupting the peaceable pursuits of the people, and engaged in occasional hostilities with the Chilians, the condition of the nation is most unhappy, and would naturally lead it to a peace upon any terms consistent with national honor.

While Bolivia has been spared the direct effects of the war in a large degree, it nevertheless supports an army, and is constantly subject to the excitement and alarms of a belligerent. Ready, as it is understood to be, to assist its ally, it is practically in a state of war in all that concerns its internal affairs, while, more fortunate than Peru, it has suffered from Chili no other direct loss than its outlet to the Pacific.

On the 5th January, ultimo, the following telegram was sent to you: [See telegram, Mr. Frelinghuysen to Mr. Logan, January 5, 1883, ante.]

The continuance of the war between Chili and the allies can produce no good result. The cause of humanity and justice also requires that an end should come to the strife.

All other attempts towards this desirable end having proved fruitless, [Page 96] the United States believe it their duty to revive the suggestion of arbitration. With this end in view, I have had frequent conference with the representatives of Chili and Peru at this capital. Although, of course, neither on my part was I prepared to transfer the negotiation and settlement of the basis of arbitration to Washington, nor were they on theirs competently authorized to bind their respective Governments to any determinate solution of the problem, our interchange of views has, I am happy to believe, tended to bases of settlement.

These bases are simply an agreement on an exponent of the Government of Peru (probably Mr. Calderon’s administration), the cession to Chili of the Peruvian territory of Tarapaca, and the submission to impartial arbitration of the question whether any additional territory shall be ceded, and, if so, how much and on what terms.

The President is firmly persuaded that Chili and Peru are fully competent to adjust their differences with the aid of the friendly counsel of the United States, and he is equally sanguine in the belief that the present situation of the two countries, which I have reviewed in the early part of this instruction, has brought the two nations nearer than ever before to a realizing sense, not only of the necessity of peace, but of the practical foundations on which a lasting and honorable peace may be reared. He is convinced that only by such an arbitration as herein suggested can this result be reached. He is hopefully strengthened in this conviction by the substantial concurrence of the representatives here of Chili and Peru in his views. The conclusions which those representatives have reached, and Which I am assured they are prepared to commend to the favorable consideration of their respective Governments, are worthy of all attention.

These gentlemen are removed from the immediate scene of conflict, their outlook is naturally broader and freer, and it is not surprising that they should be drawn towards agreement in a sense comporting with the President’s views.

It would much facilitate the formation of such an arbitration should Chili and Peru understand that the United States recognize the Calderon government and confide in Chili’s doing the same. Unless this one point could be gained there would be long delay in negotiating as to what Peruvian government should be permitted to appoint the arbitrators. I repeat, it is not necessary that the whole subject be left to arbitration. Chili has evinced a disinclination to submit to such an arrangement, of which this Government recognizes the force.

It could be understood that Chili is to have an agreed portion of the territory in dispute, and that the question left to arbitration should be whether Chili should have any territory in addition to that agreed upon, and what amount of money, if any, Chili should pay therefor.

For the present you are not directed to read this instruction to the minister of foreign affairs, but you are authorized to communicate forthwith the views herein expressed to the Government of Chili in such form as may seem to you expedient, remembering that the President hopes for a speedy and just settlement of the controversy.

I am, &c.,

FRED’K T. FRELINGHUYSEN.