No. 459.
Mr. Phelps to Mr. Frelinghuysen.

No. 32.]

Sir: Lima, since my last report, has been very quiet. In the north Montoneros have given trouble, and it is even reported have driven the Iglesias officials from Cajamarca.

It is probable the news from Arequipa will practically end that species of warfare.

In the central departments the Indians have inaugurated a war on the whites, and have killed many, and sacked haciendas and towns. These inoffensive people, when aroused, are valiant, attacking armed troops with pikes, clubs, and like weapons. General Iglesias is without arms sufficient to create a force needed to quell this new source of danger, but the clergy and curates, who are influential with that class of the population, are earnestly engaged in efforts to prevent the extension [Page 727] of the evil and to suppress it, and are said to be meeting with some success.

Arequipa, Mollendo, and Puno are occupied by Chilian troops, and will remain in occupation, as a menace to Bolivia, during negotiations with that state by Chili.

Prefects appointed to the departments of Arequipa, Puno, and Cuzco cannot enter upon their duties at present, and, indeed, Cuzco has not been heard from yet.

A Chilian force is near the city, and it is quite likely a declaration in favor of Iglesias will follow the entrance of that force into the town. Apart from that being the usual result of Chilian visits, the people there are supposed to be in favor of peace and to have been unfavorable to Montero.

Whenever the populous department shall have declared for Iglesias, Puno and Arequipa already having done so, and submits to the control of officials of his appointment, I think his government may be regarded fairly as the de facto Government of Peru.

In fact there is no pretense of any other. General Caceres wife applied for and obtained a safeguard for him to come to Lima, but telegrams from Arequipa represent him as disposed to continue the war. As he has only 500 men, and has no part, of the late government of Montero with him, he can lay no claims to representing a government of any kind.

It is my purpose to cable you as soon as reliable news reaches here from Cuzco favorable to Iglesias, referring you to my dispatch No. 9, and stating simply that all departments have submitted to or declared for Iglesias.

Under the circumstances it occurs to me that a cable order to recognize the Government, if that be your decision, might be presented as my authority, reserving the formal letter of the President accrediting me to Peru for an occasion when a President has been duly elected.

* * * * * * *

It is a matter of regret that General Iglesias should have so few friends amongst the leading class here. He has been forced to considerable degree in the selection of his higher officers. * * * The treaty is hateful to those who might lend effective support, and they will not have part in it, although recognizing that it must be accepted. I am quite confident the general realizes the difficulties of his situation and that he hopes to effect changes in his cabinet and otherwise that will improve the condition of affairs. * * *

I have, &c.,