Mr. Strobel to Mr. Olney.

No. 85.]

Sir: Referring to my No. 22, of May 25, 1895, reporting the conclusion of certain treaties between Chile and Bolivia, I now have the honor to inclose copies and translations of a treaty of peace and amity and a treaty of commerce between these two countries which were published in the official journal (Diario Oficial) of the 2d instant.

The treaty of peace and amity provides for the absolute cession to Chile by Bolivia of the Bolivian territory which has been occupied by Chile since the truce agreement of April 4, 1884.

By the terms of Article II Chile assumes the payment of certain claims, among which is the claim of Alsop & Co.

The treaty of commerce contains nothing of importance except the provisions for the free importation of merchandise in transit for Bolivia through the ports in the ceded territory stated in Article IX.

In my dispatch No. 22, referred to above, I mentioned that it was understood that the treaty of peace and amity provided for the cession to Bolivia of a port on the Pacific; and it was expected that this port would be in the formerly Peruvian province of Tacna and Arica, which are now held by Chile under the conditions explained in that dispatch. I stated that it therefore caused some surprise that the negotiation of the definite treaty of peace and amity should be terminated before the question of Tacna and Arica was settled, and I expressed the belief that these provinces would ultimately belong to Chile, and that this Government hoped to secure them before the ratification and publication of the treaty.

It is now seen that the treaty of peace and amity, which has been published, makes absolutely no provision for the cession of territory to Bolivia. The dominion of Chile over the territory taken from Bolivia is permanently fixed, but nothing is done for the latter country.

I have, etc.,

Edward H. Strobel.
[Inclosure in No. 85.—Translation.]

Treaty of peace and amity between the Republics of Chile and Bolivia.

The Republic of Bolivia and the Republic of Chile, desirous of fixing in a definite treaty of peace the political relations which unite the two countries, and being decided to consolidate by this means, and in a stable and lasting manner, the bonds of sincere friendship and good understanding which exist between the two countries, and in order to realize the purpose and desires for harmony which have been pursued by [Page 28] the high contracting parties since the truce agreement of April 4, 1884, have determined to conclude a treaty of peace and amity, and for that purpose have appointed and constituted their plenipotentiaries, to wit:

His Excellency the President of the Republic of Chile has appointed Don Luis Barros Borgono, minister of foreign relations, and His Excellency the President of the Republic of Bolivia, Don Heriberto Gutierrez, envoy extraordinary and minister plenipotentiary of Bolivia in Chile, who, after having exchanged their full powers, found to be in due and proper form, have agreed upon the following articles:

Article I.

The Republic of Chile shall continue to hold possession in absolute and perpetual dominion of the territory which it has governed to the present time in accordance with the truce agreement of April 4, 1884 In consequence, the sovereignty of Chile is recognized over the territories extending to the south of the river Loa, from where it empties into the Pacific, to the parallel 23 degrees south latitude, and which have for their eastern boundary the series of straight lines fixed by article 2 of the trace agreement; that is to say, a straight line which begins from Zapaleri and from the intersection of the said territories with the boundary line separating them from the Argentine Republic to the volcano of Licancaur. From this point a straight line shall continue to the peak of the extinct volcano Cabana or highland called Del Cajon. From there another straight line shall continue as far as the cascade which is at the southernmost point of the lake Ascotan, and thence another straight line which crosses the said lake lengthwise and terminates in the volcano Ollagua. From this point another straight line to the volcano Tua, the dividing line continuing from there between Tarapaca and Bolivia.

Article II.

The Government of Chile assumes and agrees to pay the liabilities admitted by the Government of Bolivia in favor of the mining companies of Huanchaca, Corocoro and Oruro, and the balance of the Bolivian loan which was raised in Chile in the year 1867, after deduction of the sums which have been already paid on this account, according to Article VI of the truce agreement. It likewise obliges itself to pay the following obligations which are an encumbrance upon the Bolivian coast: The one corresponding to the bonds issued for the construction of the railway from Mejillones to Carracoles; the obligation in favor of Pedro Lopez Gama, represented at present by the house of Alsop & Company, of Valparaiso; and one in favor of Henry G. Meiggs, represented by Don Edward Squire, proceeding from the contract concluded by the former with the Government of Bolivia on May 20th, 1876, for the renting of the Government nitrate fields at Toco; and the obligation recognized in favor of the family of Don Juan Guarday.

These obligations shall be the object of a special settlement and of a detailed specification in a supplementary protocol.

Article III.

With the exception of the obligations enumerated in the preceding article, the Government of Chile does not admit any obligation or responsibility of any kind as affecting the territories which are the subject of the present Treaty, whatever may be their nature and origin. The Government of Chile is likewise relieved of the obligations contracted in accordance with clause 6 of the truce agreement, the receipts of the custom-house of Arica being absolutely free, and Bolivia having the privilege of establishing its custom-houses in whatever place and manner that may appear suitable.

Article IV.

Should any difference arise with reference to the boundary line between the two countries, there shall be appointed by the high contracting parties a committee of engineers to proceed to the demarcation of the frontier line determined by the points enumerated in Article I of the present treaty. In a like manner they shall proceed to reestablish the landmarks which exist, or to fix those that may be necessary on the traditional boundary between the ancient department, at present Chilean province of Tarapaca, and the Republic of Bolivia. If unfortunately there should occur between the engineers charged with the demarcation any disagreement which cannot be settled by the direct action of the Governments, the question shall be submitted to the decision of a friendly power.

Article V.

The ratifications of this treaty shall be exchanged within the period of six months, and the exchange shall take place in the city of Santiago.

In witness whereof the minister of foreign relations of Chile and the envoy extraordinary [Page 29] and minister plenipotentiary of Bolivia have signed and sealed with their respective seals, and in duplicate, the present treaty of peace and amity, in the city of Santiago, on the 18th day of May, 1895.

[l. s.] Luis Barros Borgono.
[l. s.] H. Gutierrez.
And inasmuch as the preceding treaty has been ratified by me, after approval by the National Congress, and the respective ratifications have been exchanged on April 30th of the current year,

Therefore, making use of the authority conferred upon me by paragraph 19 of article 73 of the constitution of the State, I hereby order that the said treaty take effect in all its parts as a law of the Republic.


  • Jorge Montt.
  • Adolph Guerrero.
[Inclosure 2 in No. 85.—Translation.]

Treaty of commerce between the Republics of Chile and Bolivia.

The Governments of Bolivia and Chile being equally animated by the purpose of consolidating and extending the commercial relations between the two countries, have resolved to conclude a treaty of commerce which shall contain bases adequate for the said purpose and have appointed as their plenipotentiaries: His Excellency the President of the Republic of Chile, the minister of foreign relations, Don Luis Barros Borgono; and His Excellency the President of the Republic of Bolivia, the envoy extraordinary and minister plenipotentiary, Don Heriberto Gutierrez, who, after having exchanged their full powers, found to be in due and proper form, have agreed upon the following articles:

Article I.

The commercial relations between the Republic of Bolivia and the Republic of Chile are established on the basis of ample and reciprocal liberty.

The citizens of each country shall have in the territory of the other in all matters relating to the exercise of commerce and trade the same rights as natives, nor can they be subject to any tax different from or higher than that imposed upon natives.

Article II.

Bolivians in Chile and Chileans in Bolivia shall enjoy all guarantees which the law extends to natives of each country for the protection of their persons and their property. They shall likewise have the right of acquiring and possessing property of every kind, and of disposing of such property in the same manner as natives, without being subject, on account of their character as foreigners, to any payment or tax which is not imposed on natives.

Article III.

The high contracting parties declare that they will mutually recognize all the companies and other commercial, industrial, or financial associations which have been established and authorized in conformity with the laws of each of the two countries, their privilege of exercising all rights and of appearing in trial before the courts, without any other condition than that of conforming to the provisions of the laws of the respective States.

Article IV.

The Bolivians in Chile and the Chileans in Bolivia are exempt from all compulsory military service in the army and navy and in the national guards or militia, nor can they be subject for their real and personal property to any other charge, restriction, tax, or impost than those which are imposed upon natives.

Article V.

The high contracting parties, in the desire to remove everything which may disturb their friendly relations, agree that whenever there may be claims or complaints of individuals referring to matters which are subjects for the civil or penal laws, and which may be submitted to the courts of the country, they will not intervene officially by means of their diplomatic representatives unless it is a question of a denial of justice, or of acts which imply the nonobservance or manifest infraction of [Page 30] the rules of public or private international law generally recognized by civilized nations.

It is likewise agreed that by neither of the two parties can any claim be presented against the other for responsibility for damages, injuries, or exactions which their respective citizens may suffer in cases of political disturbances produced by insurrection or civil war, or which may be caused by insurgents or rebels, unless the public authorities may have been remiss in the discharge of their duties, or may not have employed necessary vigilance or precautions.

Article VI.

The native products of Chile and the manufactures from Chilean raw material, as well as native products from Bolivia and manufactures from Bolivian raw material, which may be respectively imported into the territories of each of the high contracting parties, shall be free from every fiscal or municipal charge which may not prior to this Treaty have been imposed upon similar products of the country into which such products are imported.

A special protocol shall enumerate the products comprised in this exemption, and shall at the same time determine the proceeding which must be followed by the respective custom-houses for their importation. In the meantime, article 7 of the protocol of May 30, 1895, shall continue in force.

Article VII.

Alcohols of Chile are not comprehended in the exemption of the previous paragraph; but in no case can a greater tax be imposed upon them than that imposed upon the alcohols of other countries. If the Government of Bolivia shall accord any exception or privilege in favor of another State, Chile shall be included in this exception or privilege. For the purpose of this provision, alcohol shall be understood to be spirits which exceed 25 degrees.

Article VIII.

Every favor or immunity which one of the high contracting parties accords to a third power in the matter of commerce shall be immediately and unconditionally extended to the other. In addition, neither of the high contracting parties shall subject the other to any prohibition or surcharge on goods which may be exported or in transit, which shall not at the same time be applied to all other nations, except the special measures which the two countries may reserve the right to establish for sanitary purposes, or in the eventuality of a war.

Article IX.

The ports of Chile which are in communication with Bolivia shall be free for the transit of merchandise imported and exported, proceeding from or destined to the latter Republic.

Article X.

For the purpose of giving facilities to commerce between the two countries, the high contracting parties bind themselves to stimulate the formation of societies or companies for the construction of railway lines to unite their conterminous provinces and to protect or guarantee effectively those which at present exist, in order that they may extend their branches to the most important centers. Especially will they encourage the extension of the railway line which unites Antofagasta with the city of Oruro.

Article XI.

Railway engines, wagons, sleepers, rails, spikes, fish plates, and other accessories which are introduced through Antofagasta or any other Chilean port, and which are destined for the prolongation of the railway from Oruro to La Paz, are exempt from all storage and dock charges and from every other fiscal tax. The amount and period of this privilege shall be determined by agreement between the contracting Governments.

Article XII.

Correspondence exchanged between the Republic of Chile and the Republic of Bolivia shall be duly stamped in the country from which it proceeds, and shall circulate free and exempt from all charge by the post-offices of the countries to which it is directed.

[Page 31]

Article XIII.

The official correspondence of the two Governments and their respective diplomatic and consular agents, official publications, reviews, pamphlets, and newspapers shall be free of postage and exempt from every charge in the country to which they are destined.

Article XIV.

When the correspondence and publications before mentioned shall pass through one of the two countries in transit, the latter shall be obliged to forward them to their destination, and if, for that purpose, there should be necessity of stamping them, the stamping shall be for the account of the Government to whom the mail in transit belongs, without any responsibility on the part of the other.

Article XV.

The two Governments oblige themselves to support an equal number of mail services, on the days and by the routes on which they may agree for carrying the mails of both countries.

Article XVI.

The high contracting parties shall respectively accredit the consular officials which they may regard as necessary for the development of trade and for the protection of the rights and interests of their respective citizens. The said officials shall enjoy the privileges, exemptions, immunities, and style of address which belong to the consular office with which they are invested.

The consular offices and archives are inviolable. They can not be searched by anyone. These privileges, however, shall not be extended to the archives of consuls who at the same time exercise trade, commerce, or other functions foreign to the consulate, unless they keep such business entirely separate from everything that concerns their consular functions.

Article XVII.

The high contracting parties likewise agree that, independently of the preceding provisions, the diplomatic and consular agents and citizens of each country, and the merchandise of each nation, shall respectively enjoy whatever exemption, immunities, and privileges may be conceded to the most favored nation, freely when freely granted, and yielding the same compensation when the grant is conditional.

Article XVIII.

The present treaty shall be in full force for ten years, to count from the date of the exchange of the ratifications. When this period has elapsed, either of the high contracting parties may notify the other of the abrogation of the treaty, but the period of one year shall intervene between the announcement of such abrogation and the cessation of the treaty. If the notice mentioned is not given, the treaty shall continue in force indefinitely.

Article XIX.

The ratifications of this treaty shall be exchanged within the period of six months, and the exchange shall take place in the city of Santiago.

In witness whereof the minister of foreign relations of Chile and the envoy extraordinary and minister plenipotentiary of Bolivia have signed and sealed with their respective seals, and in duplicate, the present treaty of commerce, in the city of Santiago, on the 18th day of May, 1895.

[l. s.] Luis Barros Borgono.
[l. s.] H. Gutierrez.

And inasmuch as the present treaty has been ratified by me, after approval by the National Congress, and the respective ratifications have been exchanged on April 30th of the current year,

Therefore, making use of the authority conferred upon me by paragraph 19 of article 73 of the constitution of the State, I hereby order that the said treaty take effect in all its parts as a law of the Republic.


  • Jorge Montt.
  • Adolph Guerrero.