No. 56.
Mr. Logan to Mr. Frelinghuysen .

[Extract.]
No. 113.]

Sir: Under cover of this dispatch I inclose a translated copy of the protocol to make a treaty with the Chilian Government, recently signed by General Iglesias as heretofore reported in my cablegrams and dispatches.

The feature of this protocol which will probably interest you as much as any other is that which relates to the payment of the Peruvian debt. * * * In the proposed treaty with Iglesias, Chili simply agrees to pay the foreign bondholders 50 per cent. of the net proceeds from the sale of one million tons of guano, the supposed amount of the present known deposits; the other 50 per cent. going into her own treasury, with the exception of the Lobos Islands guano, which, as first promised to me, Chili will relinquish her claim upon. It is expressly stipulated, however, that if future deposits of guano be discovered in the acquired territory, Chili will appropriate them to herself.

* * * * * * *

It is reported that the news of the signing of a protocol by Iglesias has produced extraordinary excitement in Bolivia, and that the sentiment for dissolving the alliance with Montero, and making a separate treaty with Chili, is overwhelming. * * *

I have, &c.,

C. A. LOGAN.
[Inclosure 1 in No. 113.—Translation.]

Peace protocol between Novoa and Iglesias.

To Señor Don Jovino Novoa:

In the various private and confidential interviews which, by especial recommendation of General Iglesias, we have had with your excellency, we have been occupied in studying the means likely to put an end to the war between Peru and Chili, and, with the hope of arriving at a good result, we have established the bases upon which the two Governments may soon sign a treaty of peace.

We herein inclose the bases which have been sent to General Iglesias, and we hope that he will accept them, provided that you have no objection to answering us as to [Page 117] whether these are really the conditions to which we have agreed, and which at the same time you accept as a conclusion of the treaty of peace. We should be greatly obliged to receive your distinct answer.

Accept, &c.,

  • JOSÉ ANTONIO DE LAVALLE.
  • MARIANO CASTRO ZALDIVAR.

To Messrs. José Antonio de Lavalle and Mariano Castro Zaldivar:

It is perfectly accurate, that, inspired by the natural desire to see an end of the actual state of war, we have upon various occasions held certain private conversations to discuss the bases which might serve for a treaty of peace between Chili and Peru; and the result of our friendly interviews has been the acceptance of which you speak in your letter.

If General Iglesias constitutes a Government which may be recognized by Chili, and accepts the terms mentioned in the included document, promising to conclude a treaty of peace upon these bases, I will have no reluctance whatever, as minister of Chili and in the name of my Government, in signing the treaty containing these terms.

I avail, &c.,

JOVINO NOVOA.

the protocol.

I bind myself formally and solemnly to celebrate with the Republic of Chili a treaty of peace, as soon as the minister plenipotentiary of that country recognizes me in the name of his Government as President of Peru. (I will sign such peace) on the following conditions:

1st. Unconditional and perpetual cession to Chili of the department of Tarapaca, as far towards the north as the Quebrada de Camarones, this territory passing in consequence under the absolute sovereignty of Chili.

2d. The territories of Tacna and Arica, actually in the possession of Chili, will be subject to the legislation and laws of Chili for the term of ten years, reckoning from the day when the treaty of peace shall be celebrated. This term once elapsed, a plebiscite will be convoked to decide by popular vote whether these territories shall remain under the sovereignty of Chili or return to that of Peru. That one of these two nations, in whose favor the definite annexation shall be decided, shall pay the other 10,000,000 silver pesos in Chilian coin or in Peruvian soles of equal fineness.

A special protocol shall establish the form under which the plebiscite shall take place, and the term in which the 10,000,000 pesos shall be paid by the country remaining master of Tacna and Arica.

3d. The Government of Chili obliges itself to fulfill accurately the contract entered into for the guano, the guano decrees of the 9th of February, 1882, and the salitre decrees of the 20th of March of the same year, including the following declarations:

The said decree of February 9, 1882, provides for the sale of one million tons of guano, and article 13 establishes that the net price of the guano—after deducting all expense of extraction, analysis, weighing, loading, wages of workmen and overseers, and all the expenses incurred in packing and loading on board ship—shall be distributed equally between the Government of Chili and the creditors of the Peruvian Government whose titles are guaranteed upon these deposits.

Moreover, the Government of Chili declares that, once concluded the sale of the million tons, she will pay to the creditors of Peru the 50 per cent. of the net product, as established by article 13, until either the debt be paid in full or the guano deposits be exhausted.

It is understood that the question includes simply the deposits at present actually being developed, and that those which may be discovered or developed later in the annexed territories, shall belong exclusively to Chili, this country conserving for itself all the products, and disposing of them as it wishes.

It is equally understood that the creditors of Peru, to whom this benefit is conceded, shall submit to the conditions fixed in the decree of the 9th of February, 1882. Outside the declaration stated in this article, Chili does not recognize, either as cause of war or for any other motive, any debt of Peru, whatever may be its nature.

4th. The Lobos Islands of the north shall continue to be administered by Chili until the conclusion of the contract of sale of 1,000,000 tons of guano, at which time they shall revert to Peru.

Chili, to whom belongs the 50 per cent. of the net product of the guano of the Lobos Islands, in accordance with the decree of February 9, 1882, already cited, concedes this also to Peru, and will commence to yield it to her from the moment in which the present treaty of peace shall be ratified.

5th. The question relating to the new commercial relations and the indemnities due to Chili, shall be discussed and resolved later.