No. 464.
Mr. Phelps to Mr. Frelinghuysen.

No. 43.]

Sir: From the best intelligence obtainable, General Iglesias was deceived by the report made by his prefect at lea, respecting which I cabled you on the 9th instant.

It appears that General Cáceres has not made overtures to General Iglesias, and that the letter published here as having been sent to Caceres, had not in fact left Lima when I mailed a published copy to you. So far the control of this Government in the central and southern departments remains as before, largely dependent upon the enemy’s movements.

In all the interior Cáceres is the power, while maintaining an opposition to Iglesias, and Chilian movements during the rainy season cannot be relied upon by the latter. It is announced that Cuzco was entered by the prefect appointed by Iglesias without opposition. The effective aid of the enemy has deprived this event of significance as a voluntary acceptance by the people of the representative of this Government.

The time set for the election of delegates to the national assembly is near at hand. Reports from the north and the south alike represent the public feeling as one of utter indifference. Preparations are not being entered into and it can be seen that the publication of the treaty has had a depressing effect in Lima.

I have, &c.,