Office of the Historian

Mr. Dudley to Mr. Hay.

Legation of the United States,
Lima, Peru, July 30, 1902.
No. 637.]

Sir: The ordinary session of the Peruvian Congress was inaugurated on the 28th instant by President Romaña in a message distinguished for its spirit of conciliation in the presence of a bitter partisanship which is likely to make itself unpleasantly felt during the next three months.

I transmit to the Department, under separate cover, two copies in pamphlet form of the message, and herewith inclose translation of passages of more especial interest, relating respectively to the late [Page 901] Pan-American Congress at Mexico City; the Acre concession by Bolivia to an American syndicate; * * the Tacna-Arica question, a constant source of irritation to the signatories of the treaty of Ancon; the status of Peru’s finances and foreign commerce; the St. Louis Exposition, and the Panama Canal, whose completion is eagerly anticipated as conducing the immigration and increased commerce by bringing Peru nearer to our Atlantic seaboard and to Europe.

I have, etc.,

Irving B. Dudley.
[Inclosure.—Translation.]

Extracts from message of President of Peru to Congress.

pan-american congress.

Abounding in the sentiments of justice, of our own dignity, and of the most cordial harmony with friendly nations, we took part in the Pan-American Conference held in the City of Mexico in the month of October last, and in which were represented all the nations of North, Central, and South America.

In the aforesaid assembly were adopted twenty-two resolutions designated to establish bonds of fellowship between the various nations of this continent, and to obtain for all new elements of peace and prosperity.

As regards arbitration, the most opposite ideas were expressed relative to the character with which it should be invested, and finally two simultaneous resolutions were accepted. One of them, sustained by the vote of the majority, consisted in the adoption of an ample and obligatory treaty of arbitration. The other one, upheld by the vote of the delegates, was the signing of a protocol of adhesion to the convention of The Hague.

The Peruvian delegates, in accordance with the instructions of their Government, which were in harmony with our traditional policy, displaying the resources of their power of initiating and of their patriotism, warmly and nobly upheld the principle of obligatory arbitration uniformly with the delegates of other nations, until they succeeded in obtaining a favorable vote of the majority.

The International Congress of Mexico, forerunner of others of a similar nature, will bring about most beneficial and important results for the nations therein represented as soon as the principal resolutions become definitely sanctioned.

acre concession.

In view of a vast concession made by Bolivia to a foreign syndicate, in which is included territory which we consider our own, we have found it proper to formulate the necessary protests for safeguarding our rights. We have at the same time caused our protest to be made known to the Governments of the nations to whom the capitalists interested in the negotiations belong, and also to the managers or representatives of the enterprise.

tacna-arica question.

My Government has constantly had in view the solution of our pending questions with Chile, especially with reference to the present situation and the future destiny of the provinces of Tacna and Arica. The state of the negotiations which followed the disapproval of the Billinghurst-La Torre protocol has not permitted their further prosecution.

Peru, as appears in various documents, has proposed divers equitable and friendly solutions, including arbitration, all of which have been rejected by Chile. It was consequently incumbent upon that Government to point out the bases upon which an arrangement should be made, but so far none have been suggested. The best spirit will be found among us for discussing them and the utmost willingness to assent to anything within the bounds of justice and the rule established by the treaty of Ancon. Peru has only refused, and will always refuse, to subscribe voluntarily to its own dismemberment. It is impossible and wrong to smother in that manner the aspirations of the entire nation, and especially of the Peruvians of the provinces mentioned, whose patriotism and abnegation are exceptionally marked. My Government, on the other hand, will not avoid taking the initiative anew in this matter if convinced of the possibility of arriving at a solution equitable and satisfactory for both countries without detriment to the dignity of either.

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finances.

Soles.
The general revenues for 1901 were estimated at 13,853,200.00
The amount of same actually collected being 14,988,180.98
Being an excess over and above the estimated amount of the revenues of 1,134,980.98
The estimated amount of the general expenses, as shown in the budget for 1901, was 14,248,195.43
While the actual disbursements for that year only amounted to 13,450,419.81
Or an expenditure less than the estimated amount by 797,775.62
To which add the excess of the revenues actually received 1,134,980.98
Making a total of 1,932,756.60
But as the unprovided-for expenses, amounts chargeable to the treasury, and the deficit of the budget make a total amount of 5,403,173.93
There results a difference during the year of 3,470,417.33
To which difference has been applied the excess in the actual over the estimated revenues, and the credit balances due the treasury, in all 3,747,397.31
Leaving a net balance of 276,979.98

Which exists in the treasuries, custom-houses, and other fiscal offices, as is shown in the general statement.

One of the most flattering indications of our economical condition has been the progressive and constant increase in our general revenues since the year 1896, an increase no less notable in the year 1901, whose receipts amounted to 14,988,180.98 soles, those of 1900 amounting to 12,989,828.14 soles, or an increase in 1890 of 1,998,352.84 soles.

Custom-house statistics show a result equally satisfactory in the general commerce of the Republic, according to the following figures:

Soles.
Imports 27,582,239.31
Exports 42,983,788.74
Total 70,566,028.05
In 1900 these amounted to 68,151,501.78
Or an increase in 1901 of 2,414,526.27

Upon comparing one year with the other, it is seen that the importations have been greater by 4,410,732.92 soles, while the exports, due to the fall in the price of sugar, have diminished by 1,966,206.71 soles.

The exportations of minerals amounted to 17,508,484.55 soles, exceeding by 557,926.20 soles those of the preceding year, notwithstanding the decline in the price of copper.

The increase in the exportation of articles of national manufacture is likewise interesting. Calicos, which in 1900 barely reached 10,000 soles, were exported in 1901 to the value of 146,951 soles.

Guano, which had ceased to figure in the items of exportation, produced the amount of 266,409 soles, and medical leaves the sum of 255,126 soles.

A decrease has been felt principally in sugar, borax, coffee, cotton seed, and gold.

Worthy of note has been the increase in the receipts of the Callao custom-house, 2,268,345 soles, and from that of Mollendo, 961,416 soles, over those of the preceding year.

On the other hand, there has been a notable decrease in the receipts from all the sugar-shipping ports.

* * * * * * *

The statement of the ordinary budget for 1903 is as follows:

Soles.
Income 15,396,682.00
Expenditures 14,562,323.38
Surplus 834,358.62

[Page 903]

And of the extraordinary budget:

Soles.
Expenditure 1,235,146.77
Surplus of the ordinary budget 834,358.62
Deficit 400,787.15

The deficit above indicated will be more than met by the two bills which have been pending before Congress since last year, the first reestablishing the stamp tax on tobacco, and the second modifying the customs schedules at Iquitos.

It is to be borne in mind that the ordinary budget of expenditures amounts to 14,562,323.38 soles, while in the budget for 1902 it amounted only to 13,375,410.92 soles, being an increase in the ordinary expenditures of 1903 of 1,186,912.46 soles. The difference is explained in part by the increase in the salaries of the judiciary and the army, pensions to the survivors of our national war, pensions to widows, and other recently granted benefactions.

st. louis exposition.

There can not possibly be any necessity for me to show the great advantages which must accrue to Peru from its taking part in the approaching exposition of St. Louis, but in order to do this you must provide the Government with funds to defray the heavy expense entailed in order to make a respectable showing.

panama canal.

The early opening of the Panama Canal will disclose new prospects for the nation. With our rich mines and petroleum deposits at a short distance from the coast, and with bays like those of Paita, Chimbote, and Callao, we may most assuredly expect that the stream of commerce which that route must foster will naturally benefit to a large extent our seacoast trade, and that no country can reap from it greater benefits than Peru.

It would therefore seem prudent to prepare for such an excellent opportunity, and to see that there should not be wanting at least some of the most necessary advantages which the foreign shipping coming to our shores has a right to expect. Among these I make free to suggest the idea of offering most liberal concessions for the construction of a dry dock of sufficient dimensions to admit vessels of the largest size in Callao or on the island of San Lorenzo and for that of a floating dock in the port of Paita.