Mr. Strobel to Mr. Sherman.

No. 155.]

Sir: Referring to my dispatches, No. 143, of May 31, and No. 153, of July 9, 1897, I have the honor to inclose copies and translations of the notes of Senor Morla Vicuña, minister of foreign relations of Chile, and Count Saint-Aulaire, chargé d’affaires of the French Republic at this capital, requesting me to act as arbitrator in the claim of the French citizen, Charles Freraut, against the Government of Chile. A copy and translation of the protocol between the two Governments appointing me arbitrator and of the message on the subject of the President of Chile to Congress are also inclosed.

In view of the terms of the Department’s telegram to me of the 8th instant, I beg to call attention to the fact that the office is conferred upon me as an individual, and that no mention is made in the protocol of my official position.

I have, etc.,

Edward H. Strobel.
[Inclosure 1 in No. 155.—Translation.]

Mr. Vicuña to Mr. Strobel.

No. 876.]

Sir: As I had the satisfaction of stating to you verbally, the Governments of Chile and France, desiring to bring to a friendly conclusion a claim of long standing of the French citizen Charles Freraut against Chile, have agreed to submit it to arbitration, and for that purpose on the 3d instant signed a protocol, of which I have the honor to transmit to you a certified copy, and by virtue of which there is conferred upon you, as an individual, the office of arbitrator. The text of this agreement will be submitted without-delay to the approbation of Congress.

In order that you may at once take cognizance of the papers in the [Page 53] case, I beg to send von a package containing all documents relative to the claim.

The Government of Chile is gratified that this opportunity has presented itself of giving to you, in the last days of your mission in Chile, a testimonial of the high estimation to which your distinguished qualities entitle you.

I renew, etc.,

C. Morla Vicuna.
[Inclosure 2 in No. 155.—Translation.]

Proctocol.

Republic of Chile, ministry of foreign relations.

The minister of foreign relations of Chile, Señor Don Carlos Morla Vicuna, and the chargé d’affaires ad interim of Franco, Count Saint-Aulaire, having met in the department of foreign relations of Chile for the purpose of putting an end to the claim of the French citizen, Charles Freraut, founded, as is shown by the claimant, upon the failure to execute various contracts relative to the nitrate works “Barrenechea,” have agreed upon the following articles:

Article 1.

The Governments of Chile and France appoint Mr. Edward H. Strobel, in order that, as arbitrator and friendly intermediary, he may proceed ex aequo bono, with full powers to decide the following points: (a) Is or is not the claim of the French citizen, Charles Freraut, presented against the Government of Chile with the diplomatic support of the legation of France, a just claim? (b) If it is a just claim, in whole or in part, what sum should the Government of Chile pay to Mr. Freraut or to his representatives as an indemnity and complete settlement of the said claim?

Article 2.

The contracting parties agree in addition that Mr. Edward H. Strobel shall decide the above questions by taking into account the correspondence which has been exchanged between the representatives of the two Governments in Santiago and the documents and proofs furnished during the controversy in regard to the subject-matter of the said claim, and in view of the memorial or brief which either party may present if it is regarded advisable to do so.

Article 3.

The period of three months is fixed as the time within which the claim of Mr. Charles Freraut should be decided definitely by the arbitrator appointed by the present agreement.

Article 4.

The decision of the abitrator, which shall be without appeal, must, however, declare that the sum awarded to the claimant shall be paid by the Government of Chile in five equal annual installments without interest, and the payment of the first installment shall be made within six months after the decision.

Article 5.

The contracting parties agree to remunerate the services of the arbitrator with a fee of five hundred pounds (£500), the whole of which shall be paid by the Chilean Government if the decision does not give to the claimant any indemnity, and shall be equally divided between the claimant and the Chilean Government if the decision is to any extent in favor of the claimant.

[L. S.]
Carlos Morla Vicuña.

[L. S.]
Saint-Aulaire.

A true copy.

[L. S.]
E. Phillips.
[Page 54]
[Inclosure 3 in No. 155.]

Mr. Strobel to Mr. Vicuña.

Sir: I have the honor to acknowledge receipt of your excellency’s note of the 22d instant, inclosing a copy of a protocol by which the Governments of Chile and France have agreed to submit to my decision, as arbitrator, the claim of the French citizen, Charles Freraut, against the Government of Chile, and transmitting to me the documents relative to the claim.

In reply I take pleasure in informing your excellency that I accept, with a due sense of the responsibility incurred, the important charge which the two Governments have deemed proper to confer upon me, and which I shall execute to the best of my ability.

At the same time I desire to express to your excellency my high appreciation, not only of the mark of confidence with which, at the close of my mission, I have been honored by the Government of Chile, but also of the commendatory terms with which your excellency, in the note referred to, has been good enough to refer personally to myself.

I gladly avail myself of the occasion to renew, etc.,

Edward H. Strobel.
[Inclosure 4 in No. 155.]

M. Saint-Aulaire to Mr. Strobel.

Mr. Minister: As I have already had the honor to communicate to you verbally, I signed on the 3d instant, with the minister of foreign relations of Chile, a protocol, by virtue of which it has been agreed to submit to your decision, as arbitrator, a claim presented by the French citizen, Charles Freraut, against the Chilean Government.

In accordance with the declaration recently addressed to you by Mr. Morla Vicuña, this choice, which is not based upon any previous exchange of views, merely sanctions a step which each of the two Governments, by a coincidence of great significance, proposed to take with a view of designating your high personality for this mission of justice and equity.

While congratulating myself on having been able to contribute toward furnishing in this way, a testimonal of the sentiments inspired by the elevation of your character, and the qualities which distinguish you, I have the honor to request your acceptance of the mission in question, and I eagerly embrace this occasion to request you to be good enough to accept, etc.,

Saint-Aulaire.
[Inclosure 5 in No. 155.]

Mr. Strobel to M. Saint-Aulaire.

Sir: I have the honor to acknowledge receipt of your note of the 22d instant, notifying me that you have signed, with the minister of foreign [Page 55] relations of Chile, a protocol by which it is agreed to submit to my decision, as arbitrator, the claim of the French citizen, Charles Freraut, against the Chilean Government.

In accordance with the terms of my reply of this date to the note addressed to me by Senor Morla Vicuña upon this subject, I take pleasure in informing you that, with a due sense of the responsibility incurred, I accept the important charge which it has been deemed proper to confer upon me, and which I shall endeavor to execute to the best of my ability.

At the same time I desire to express to you my warm appreciation of the mark of confidence with which I have been honored by you, accompanied, as it is, by the expression of regard and esteem in which you have been good enough to allude personally to myself.

I take advantage of the occasion, etc.,

Edward H. Strobel.
[Inclosure 6 in No. 155.—Translation.]

Fellow-citizens of the Senate and House of Deputies:

For some time past there has been pending for the consideration of the Government of Chile a claim of the French citizen, Charles Freraut, supported by the legation of France.

The claimant bases his demand upon the failure to execute a contract concluded on December 28, 1877, by the Government of Peru with Thomas Hart & Co., by whom the contract was assigned to him, the subject of the contract being the nitrate works “Barrenechea,” situated in the province of Tarapaca.

In 1882 the ministry of foreign relations transmitted the papers in this claim to the ministry of finance, in order that an opinion might be given by the latter department regarding the proposition presented by Freraut for the settlement of his claim.

In the ministry of finance a detailed examination of the claim was made, which resulted in establishing that the claim could not be settled administratively, because there was an adverse decision of the courts based on the provisions of the treaty of Ancon, and that it must be referred to the National Congress for settlement.

In 1893 the claimant, in view of the above decision, presented himself to Congress and requested its aid. The committee charged with studying the petition decided that the Government of Chile, through the minister of foreign relations, should be authorized to make a definite arrangement with the claimant, taking as a basis whatever justice and equity there was in the claim, and duly making a report to Congress of the form of settlement.

As the different attempts which have been made since that date to reach a direct agreement with the claimant have given no result, the ministry of foreign relations, in order to arrive at some conclusion, has believed it to be its duty to accept arbitration as a means of settlement; and for this purpose, and proceeding in accord with the legation of France, has conferred the office of arbitrator upon Mr. Edward H. Strobel, in his individual character, that he might decide the claim of Freraut in accordance with the protocol signed in this capital on the 3d instant, which is submitted for your approval, and which is accompanied herewith by a duly-certified copy.

The responsible character and distinguished antecedents of the person appointed, as well as the elevation and prudence with which he has discharged the representation of the Government of the United States in Chile, have been sufficient reasons to induce the Government of Chile to intrust to Mr. Strobel this delicate mission of confidence.

  • Federico Errazuriz.
  • C. Morla Vicuña.