Mr. Lord to Mr. Hay.

No. 191.]

Sir: I have the honor to inclose herewith, in copy and translation, the texts of the peace agreements entered into and signed at Santiago on the 28th ultimo by the representatives of Chile and the Argentine Republic. These documents are four in number, namely:

1.
A political convention declaring the international policy of the two Republics;
2.
A treaty of general arbitration;
3.
An agreement for the reduction of naval forces; and
4.
An arrangement for having the boundary line between the two [Page 19] countries, when determined by the arbitrator, carried into effect by engineers appointed by him.

The treaty of general arbitration is an agreement to submit to arbitration every dispute of whatever nature and from whatever cause that may arise, provided they do not affect the precept of the Constitution and can not be settled by direct negotiation. The agreement also includes the appointment of His Britannic Majesty as arbitrator, whose award is to be final, its execution being confided to the honor of the two Republics. The terms of this agreement are wide and comprehensive, and would appear to include all controversies that can possibly arise between the two Republics.

The reduction of the naval forces contemplated by the agreement will relieve both countries from a heavy outlay of expense which each was about to make in the acquisition of new iron-clads. It is also agreed in substance that a diminution of their respective fleets shall be effected within a year, and that neither Government is to increase them during the term of five years without giving notice eighteen months previously.

The agreement with reference to the boundary line between the two countries secures the execution of the award without the risk which might arise from differences of opinion between Chilean and Argentine experts.

Concerning international questions affecting Pacific coast matters the declarations of policy of the respective representatives of the two Governments in the preamble or convention was made an integral part of the agreement.

These agreements seem to give general satisfaction to the people here, and they will doubtless be ratified by the Argentine Congress.

It is stated that the President will not present them to the Senate for their consideration for a few days, owing to the necessity of having to wait until the messenger arrives with them and the papers connected therewith from Santiago.

I have, etc.,

Wm. P. Lord.
[Inclosure.—Translation.]

The Chilean minister of foreign relations, Señor Don José Francisco Vergara Donoso, and the envoy extraordinary and minister plenipotentiary of the Argentine Republic, Señor Don Jose Antonio Terry, having met in conference in the Chilean ministry of foreign relations for the purpose of agreeing upon the rules to which shall be submitted such disputes of whatsoever nature as may disturb the friendly relations which exist between the two countries and of thus rendering permanent the peace so far preserved, notwithstanding the periodic alarms that have arisen from the protracted question of boundaries, the minister of the Argentine Republic declared:

That the intention of his Government, in conformity with international policy which it had always observed, was to endeavor in every instance to settle questions with other nations in a friendly manner; that the Government of the Argentine Republic had carried out this policy successfully, adhering to its own rights and respecting to the fullest extent the sovereignty of other nations without concerning itself in their internal affairs or their foreign questions; that, in consequence, it was incapable of entertaining thoughts of territorial expansion; that it would continue in this policy, and that he made these declarations, now that the moment had arrived for Chile and the Argentine Republic to remove all causes of disturbance in their international relations, with the belief that he was giving expression to the public sentiment of his country.

The minister of foreign relations declared, in return, that his Government had held and now holds the same high principles that the minister of the Argentine [Page 20] Republic had just given expression to in the name of his Government; that Chile had given numerous proofs of the sincerity of its aspirations by incorporating in its international agreements the principle of arbitration as a means of settling questions with friendly nations; that, respecting the independence and integrity of other States, it, too, entertains no thoughts of territorial expansion except such as may result from the carrying out of treaties now in force or hereafter to be negotiated; that it would continue in this policy; that, happily, the question of boundaries between Chile and the Argentine Republic had ceased to be a menace to peace now that both countries were awaiting the speedy decision of His Britannic Majesty; that, in consequence, in the belief that he interpreted the public sentiment of Chile, he made these declarations, thinking, as did the Argentine minister, that the moment had arrived for removing all cause of disturbance in the relations between the two countries.

In view of this uniformity of principles, it has been agreed:

  • First. To draw up a general arbitration treaty which shall guarantee the fulfillment of the declarations cited.
  • Second. To include in the protocol the present conference, the import of which shall be considered an integral part of the arbitration treaty itself.


  • J. A. Terry.
  • J. F. Vergara Donoso.

The Governments of the Argentine Republic and of the Republic of Chile, animated by the common desire of settling by friendly means any question that may arise between the two countries, have resolved to draw up a general treaty of arbitration, to which end they have constituted ministers plenipotentiary, viz:

  • His Excellency the President of the Republic of Chile, Señor Don José Francisco Vergara Donoso, minister of state in the department of foreign relations;
  • His Excellency the President of the Argentine Republic, Señor Don José Antonio Terry, envoy extraordinary and minister plenipotentiary of that country:

Who, having communicated their respective plenary powers, which they have found to be full and sufficient and executed in due form, have agreed to the stipulations contained in the following articles:

  • Article 1. The high contracting parties bind themselves to submit to arbitration every difficulty or question of whatever nature that may arise between them, provided such questions do not affect the precepts of the respective constitutions of the two countries and that they can not be solved through direct negotiation.
  • Art. 2. This treaty does not embrace those questions that have given rise to definite agreements between the two parties. In such cases the arbitration shall be limited exclusively to questions of validity, interpretation, or fulfillment of these agreements.
  • Art. 3. The high contracting parties designate as arbitrator the Government of His Britannic Majesty or, in the event of either of the powers having broken off relations with the British Government, the Swiss Government.
  • Within sixty days from the exchange of ratifications the British Government and the Swiss Government shall be asked to accept the charge of arbitrators.
  • Art. 4. The points of controversy, questions or divergencies shall be specified by the high contracting parties, who may determine the powers of the arbitrator or any other circumstance connected with the procedure.
  • Art. 5. In the case of divergence of opinion, either party may solicit the intervention of the arbitrator, who will determine the circumstances of procedure, the contracting parties placing every means of information at the service of the arbitrator.
  • Art. 6. Either party is at liberty to name one or more commissioners near the arbitrator.
  • Art. 7. The arbitrator is qualified to decide upon the validity of the obligation and its interpretation, as well as upon questions as to what difficulties come within the sphere of the arbitration.
  • Art. 8. The arbitrator shall decide in accordance with international law, unless the obligation involves the application of special rules or he have been authorized to act as friendly mediator.
  • Art. 9. The award shall definitely decide each point of controversy.
  • Art. 10. The award shall be drawn up in two copies.
  • Art. 11. The award legally delivered shall decide within the limits of its scope the question between the two parties.
  • Art. 12. The arbitrator shall specify in his award the term within which the award shall be carried out, and he is competent to deal with anv question arising as to the fulfillment.
  • Art. 13. There can be no appeal from the award, and its fulfillment is intrusted to the honor of the signatory powers. Nevertheless, the recourse of revision is admitted under the following circumstances:
    1.
    If the award be given on the strength of a false document;
    2.
    If the award be the result, either partially or totally, of an error of fact.
  • Art. 14. The contracting parties shall pay their own expenses and each a half of the expenses of the arbitration.
  • Art. 15. The present agreement shall last for ten years from the date of the exchange of the ratifications, and shall be renewed for another term of ten years, unless either party shall give notice to the contrary six months before expiry.

The present treaty shall be ratified and the ratifications shall be exchanged in Santiago, Chile, within six months from date; in witness whereof the plenipotentiaries of the Argentine Republic and of the Republic of Chile have signed the present treaty and caused it to be sealed with their respective seals in duplicate in the city of Santiago, the 28th day of May, 1902.

  • J. A. Terry.
  • J. F. Vergara Donoso.

The Chilean minister of foreign relations, Señor Don José Francisco Vergara Donoso, and Señor Don José A. Terry, envoy extraordinary and minister plenipotentiary of the Argentine Republic, met together in the Chilean ministry of foreign relations, have agreed to set forth in the following convention the various resolutions, adopted with a view to limiting the naval armaments of the two Republics, resolutions which have been made through the initiative and the good offices of the Government of His Brittanic Majesty, represented in Chile by its envoy extraordinary and minister plenipotentiary, Mr. Gerard A. Lowther, and in the Argentine Republic by its envoy extraordinary and minister plenipotentiary, Sir W. A. C. Barrington:

  • Article 1. In order to remove every source of anxiety the Governments of Chile and the Argentine Republic desist from acquiring the war vessels they have in course of construction and from making fresh acquisitions.
  • Both Governments agree, moreover, to reduce their respective fleets, for which purpose they will continue to negotiate, until they arrive at an agreement productive of a discreet equipoise of their respective naval forces.
  • This reduction must be made within twelve months from the date of the present agreement.
  • Art. 2. The two Governments bind themselves not to increase their naval armaments, without previous notification of eighteen months, during a period of five years. This clause does not affect the fortification of coasts and ports, and either Government may acquire any floating machinery for that particular defense, such as submarines, etc.
  • Art. 3. The sales to which this agreement may give rise shall not be made to any country having questions pending with either of the contracting parties.
  • Art. 4. With a view to facilitating the transfer of pending contracts, both Governments bind themselves to extend for two months the term stipulated for the delivery of their respective vessels in construction, for which purpose they will give the necessary instructions on signing the present agreement.
  • Art. 5. The ratifications of the present agreement shall be exchanged within sixty days from date, and the exchange shall take place in Santiago.


  • J. A. Terry.
  • J. F. Vergara Donoso.

Agreement (for collocation of boundary marks).

Met together in the ministry for foreign relations of Chile, the minister of that department, Señor Don José Francisco Vergara Donoso, and the envoy extraordinary and minister plenipotentiary of the Argentine Republic, Señor Don José Antonio Terry, duly authorized and acting in accordance with the boundary treaty of July 23, 1881, the protocol of May 1, 1893, the agreement of April 17, 1896, and the acts [Page 22] of September 15, 17, and 22, 1898, in order to avoid any difficulty in the actual demarkation of the boundary line between the two countries in the first part submitted to the decision of His Brittanic Majesty, do agree, in the name of their respective Governments, to ask the arbitrator to name a commission which shall fix in the territory in question the boundary marks which he shall order in his decision. In witness whereof they sign this agreement in duplicate, in Santiago, the 28th day of May, 1902.

  • J. A. Terry.
  • J. F. Vergara Donoso.

Supplementary communications.

Mr. Minister: In view of the advanced stage already arrived at in the process of settling by arbitration the boundaries between our respective countries, a stage which permits us to believe that the decision will soon be rendered, my Government, ever animated by the desire that this protracted question be settled as soon as possible, would be extremely gratified if your excellency’s Government, in case it intends to avail itself of the right to present a new deposition, would do so in such form as will not prevent the arbitrator from rendering his decision within the present year.

Awaiting your exellency’s reply with reference to this point, I take pleasure in renewing to your excellency the assurances of my most distinguished consideration.

José Francisco Vergara Donoso.

His Excellency Señor Don José A. Terry,
Envoy Extraordinary and Minister Plenipotentiary of the Argentine Republic.

Mr. Minister: I have the honor to acknowledge the receipt of your excellency’s note, dated the 26th instant, in which you are pleased to inform me that in view of the advanced stage already reached in the process of settling by arbitration the boundaries between our respective countries, your Government, ever animated by the desire that this protracted question be concluded as soon as possible, would be extremely grateful if the Argentine Government would cooperate in this connection in such manner as in its judgment seems most suited to facilitate the task of the arbitrator and to enable him to render his decision within the current year.

In reply, Mr. Minister, it gratifies me to inform you that I have received instructions from my Government which enable me to state that it is animated by the identical considerations with those given expression to by your excellency, and that it is disposed to facilitate the task of the arbitrator so that he may give his decision within the period already indicated, to which end it will take the necessary measures.

It also gratifies me, Mr. Minister, to improve this opportunity to reiterate to your excellency the assurances of my most distinguished consideration.

J. A. Terry.

His Excellency the Minister of Foreign Relations of Chile.

Mr. Minister: The second part of article 1 of the agreement entered into for limiting the naval armaments of Chile and the Argentine Republic says:

“Both Governments agree, moreover, to decrease their respective fleets, to which end they will continue negotiations until they arrive at an arrangement that will bring about a suitable equality between said fleets. This decrease shall be effected within one year from the date of the exchange of ratifications of this agreement.”

This Government understands that the differences which may arise with reference to the execution of the clause cited are to be settled by the arbitrator in conformity with the dispositions of article 1 of the general treaty of arbitration concluded on this date.

Hoping that your excellency will kindly inform me of your Government’s opinion on this point, I take pleasure in renewing to your excellency the assurances of my high consideration.

José Francisco Vergara Donoso.

His Excellency Señor Don José A. Terry,
Envoy Extraordinary and Minister Plenipotentiary of the Argentine Republic.

[Page 23]

Mr. Minister: I have had the honor to receive your excellency’s note of even date, in which you inform me that your Government interprets the second part of article 1 of the agreement on limiting armaments to the effect that any difference of opinion which may arise and which can not be arranged within the year between the chanceries shall be a matter for general arbitration, conformably with the treaty this day concluded.

In reply, it gives me pleasure to inform your excellency that my Government gives the same interpretation to the clause in question.

I renew to your excellency the assurances of my distinguished consideration.

J. A. Terry.

His Excellency the Minister of Foreign Relations of Chile.