Chargé Neill to the Secretary of State.

No. 1213.]

Sir: I have the honor to communicate for the information of the Department of State that a new treaty of commerce and customs regulations was signed on November 27, 1905, by the Peruvian minister for foreign relations and the plenipotentiary of Bolivia.

The clause of the most-favored nation and the free importation granted to the limited trade on the frontier place the commercial relations between both countries on a footing of equity and perfect reciprocity, which insures them peaceful development.

The Congress of Bolivia and that of Peru, both now in session, will approve and sanction this treaty as soon as possible.

I have, etc.,

Richard R. Neill.
[Inclosure.—Translation.]

Treaty of commerce and customs regulations between Peru and Bolivia.

The Governments of Peru and Bolivia, animated by the purpose of rendering closer their commercial relations and of subjecting them to rules which harmonize with the requirements of their respective countries, have resolved to celebrate a new treaty of commerce and customs regulations, and with this object have appointed as their plenipotentiaries His Excellency the President of the Peruvian Republic, Dr. Javier Prado y Ugarteche, minister of state for foreign relations, and His Excellency the President of Bolivia, Colonel Benedicto Goytia, envoy extraordinary and minister plenipotentiary in Peru.

Who, after having exhibited their full powers, which were found to be in good and due form, have agreed upon the following:

  • Article 1. Peru and Bolivia establish their commercial relations on the basis of the most complete reciprocity.
  • Art. 2. Both countries agree to the free commercial transit of all the natural and industrial products of each country and such foreign ones as are introduced by routes by Mollendo and Puno to La Paz and from Mollendo to Pelechuco via Cojata, and vice versa.
  • Art. 3. Peru and Bolivia are fully at liberty to levy import duties or local taxes on the natural industrial or manufactured products of one or the other country which may be introduced into their respective territories.
  • Art. 4. Both countries oblige themselves to grant reciprocally the same advantages or commercial immunities which they concede to the most-favored nation in such a manner that if one of the contracting parties should stipulate or may have stipulated with a third power that the natural industrial or manufactured products of the said country may be introduced into its respective territory free of import duties or local taxes or that those that they pay [Page 739] shall be in a lesser degree or proportion than those which the goods of the other contracting party have to pay the latter shall de facto enjoy the same reductions, immunities, and concessions, because in no case can the articles of one of the contracting parties be charged in that of the other with heavier taxes, duties, assessments, or tariffs than those existing in those countries for the similar products of the most-favored nation, nor can they be placed in an inferior condition to those of any other country.
  • Art. 5. Cattle of any kind intended for the consumption of Peru or of Bolivia which may pass through the territory of the other country can not be charged with any tax except that of the tolls which are already established or which may be established hereafter for the transit of the cattle belonging to the country in which the tax is collected.
  • Art. 6. In view of the reciprocal conveniences of the taxpayers of the frontier zones of both republics the importation of the following articles, provided they proceed from one or other of the two countries, shall be free from every government or municipal tax in Peru or in Bolivia and exempt from all consular or custom-house documents, viz: Fresh fruits, fresh fish, fresh shrimps, fresh meat, cheese, milk, eggs, potatoes, corn flour, quinoa, cañagua, maize, barley in grain. No government or municipal tax shall also be collected between the two countries on the following articles within the limits already expressed: Jerked meat, up to 10 kilograms; dried meats and sausages, up to 23 kilograms; butter, up to 6 kilograms; sheep’s wool, alpaca, or llama wools, up to 12 kilograms; coca, up to 12 kilograms; cocoa, up to 6 kilograms; coffee, up to 12 kilograms; and chocolate, up to 5 kilograms.
  • Art. 7. In order to prevent the clandestine and fraudulent introduction of merchandise to the respective territory of each of the high contracting parties, there shall be established a special protocol of the customs regulations, to which must be subjected the importation or exportation of goods in transit by the Mollendo route.
  • Art. 8. The treaty of June 7, 1881, is hereby annulled in all its parts, as also the complementary protocols originating therefrom.
  • Art. 9. The present treaty, once it is ratified and interchanged, shall commence to come in force on the 1st of July next, up to which date the present treaty of commerce of 1881 shall remain in force.
  • Art. 10. This treaty shall remain in force for a period of five years, which shall be understood to be prorogued indefinitely as long as its expiration is not declared by one of the two contracting parties, in which case the notice of the denouncement shall be given to the other party with one year’s anticipation.
  • Art. 11. All the questions which may arise as regards the meaning and execution of the present treaty, and which can not be settled directly between the two parties, shall be submitted to arbitration, in accordance with the general treaty of arbitration between the two countries dated November 21, 1901.


Javier Prado y Ugarteche
. [l. s.]
Benedicto Goytia
. [l. s.]