Mr. Egan to Mr. Foster.
Santiago, July 2, 1892. (Received August 11.)
Sir: I had the honor to receive to-day your telegram of yesterday instructing me to endeavor to ascertain the views of the Chilean Government as to the proper compensation to be paid to the families of the two men killed and to the seventeen men wounded in the attack upon the men of the Baltimore in October last. I accordingly had an interview today with the minister of foreign relations and found that however [Page 58] desirous the present Government may be to settle this matter it can not indicate the amount to be paid, nor can it, I believe, consent to any liberal compensation except as the result of arbitration. I again referred to the general list of claims, as set forth in my note of 30th September, 1890, and said that having read the report of the fiscal of the supreme court, Señor Don Ambrosio Montt, upon the claims of citizens of Spain and Ecuador, and the manner in which that gentleman had referred, not only to the claims, but to the governments that had supported them, I had considerable hesitation in submitting these claims to him. Señor Errázuriz said that, of course, the opinion of the fiscal would not bind the Government, whereupon I asked if some arrangement could not be come to for submitting them directly to arbitration, and thus avoid a delay apparently unnecessary and the danger of some expression of opinion on the part of the fiscal that might not be considered friendly by my Government. Señor Errázuriz at once expressed his approval of the idea provided that such arbitration should embrace the Baltimore claims as well as the others; in fact all claims up to date, and added that he would be in favor of adopting the simplest possible form of arbitration. He requested me to suggest a plan for the formation of a tribunal of arbitration, to which I replied that I would telegraph my Government for instructions on the whole question, and meantime he stated he would consult with the President and his colleagues of the cabinet on the matter.
I send you to-day telegram summarizing the foregoing, and recommending that under the circumstances stated everything should be left to arbitration.
I have, etc.,