The President’s reference therein to the treaty of Ancon, as clearly
establishing the mode of deciding the Tacna-Arica question, coupled with
the assertion of the principle that in case of dispute between civilized
nations arbitration affords the only approximate recourse, is construed
here to be a notice to Chile that no compensation she may offer as a
compromise of that dispute will be acceptable—that the plebiscite agreed
upon or arbitration will alone receive the sanction and assent of this
party to the controversy. Little expectation is in truth entertained
here of the success of the mission of the Peruvian representative at
Santiago, Dr. Manuel Alvarez Calderon, and under the circumstances it is
probable he will take final leave of Chile in December next.
The award of the King of Spain, which is to end the conflicting frontier
claims of this country and Ecuador, should soon be given. The questions
of the same character between Peru and Colombia will then, pursuant to a
treaty of September 12, 1905, be submitted to the Pope for his decision.
A few months hence should also see the end of this country’s boundary
question with Bolivia, through the action of the President of Argentina
in the pending arbitration.
Apropos of this, a ripple of indignation was caused in Peru recently by
the Bolivian occupation of a part of the disputed territory on the river
Heath, while the controversy was thus under submission to arbitration.
It is now considered probable that Bolivia will consent to the
reestablishment of the statu quo, withdrawing her troops, or, if not,
that the incident will at least be so adjusted as not to interfere with
the rendition of the arbitrator’s award.
It is hoped that Peru’s remaining boundary question, which is with
Brazil, may be settled by the end of next October through direct
negotiation, the mixed commission, appointed under the protocol of July
12, 1904, to survey the upper Yurua and Purus, having finished their
work and submitted their reports.
The foregoing shows that the territorial questions Peru has with all her
neighbors are apparently in satisfactory course of settlement, with the
exception of the one with Chile and perhaps of the one with Brazil.
Respecting domestic affairs, it appears from the statements contained in
the message that the finances of the Government and the economic
condition of the country continue to show marked improvement. We learn
therefrom, for example, that the general revenues of the Republic during
the past year (1905) have exceeded the estimates of the corresponding
budget by Ł150,000; that the revenue of the coming year (1907), as
estimated, will exceed that of the last by Ł300,000, reaching the total
sum of Ł2,677,572; that the foreign [Page 1223] commerce during the past year (calendar year) amounted
to Ł10,080,771, against Ł8,364,642 during the previous year and
Ł4,300,000 during 1896; that the capital and reserve funds of the banks
at Lima have risen from Ł971,491 to Ł1,093,895 and their assets from
Ł4,572,046 to Ł6,418,319; that the monetary circulation at present
amounts to Ł602,185; and that, as a further evidence of prosperity, the
new industrial enterprises started during the past year represent a
capital of Ł769,000, or nearly four times the capital invested in such
enterprises during the previous year.
It is of especial interest to note the administration’s determination to
persevere in securing congressional authorization of a loan with which
to construct, among others, the railway to the Ucayali—a line of great
political importance and potential commercial value. The contract for a
loan of Ł3,000,000 made with the Deutsche Bank, as the legation duly
reported, failed to receive the sanction of Congress, though it was not
formally rejected by that body. The ability of the Government to meet
the financial obligations involved admits, according to the message and
the arguments therein adduced (but which I have not translated, in view
of their length), of no reasonable doubt and of less question to-day
than heretofore, when the revenues of the Government and the commerce
and business of the country were at a far lower ebb. The contract now
proposed to be executed, which will probably be a renewal of the old
one, will not be submitted to Congress for sanction, but authorization
in advance will be obtained by the Executive. The advantage of this
course lies in thus avoiding the opposition’s tactics of obstruction
successfully pursued at the last session when the contract submitted was
considered section by section. The Government still has a majority in
both legislative chambers.
[Inclosure.—Translation.]
Message of His Excellency Señor Jose Par do,
President of Peru, submitted to Congress on July 28,
1906.
Honorable
Representatives:
* * * During the course of the past year our chancellory has put
forth new and persevering effort to bring to a definite conclusion
the pending international negotiations consistently with the
aspirations of cordiality and of right which inspire the traditional
policy of Peru.
Considering that arbitration is the only honorable and permissible
means between civilized countries for deciding their disagreements,
we have endeavored to solve in this manner our different questions
with the neighboring countries, thus affording palpable evidence of
the upright and loyal purpose of conciliation and friendship which
animates my Government. * * *
In the boundary arbitration with Ecuador, now pending before His
Majesty the King of Spain, Peru having already submitted its
defense, the latter country’s is awaited in order that they may be
submitted to the decision of the august sovereign to whose justice
and high judgment both States have intrusted the decision of this
important controversy.
[Page 1224]
On September 12, 1905, our minister at Bogota concluded with the
Government of Colombia three conventions, which my Government
submitted to the former Congress in its ordinary session.
The first is a treaty of general arbitration, similar to the one we
have concluded with the Kingdom of Italy.
The second is a special treaty of arbitration relating to our
boundary question, wherein, as in former treaties of the same
character which have been heretofore concluded with that Republic,
the controversy is submitted to the decision, to be based upon
considerations of equity, of His Holiness Pope Pius X. But as our
question with Colombia is connected with the one with Ecuador, it
has been agreed that the arbitration with Colombia shall only take
place after the termination of the one in which we are now
proceeding with Ecuador, upon the adjudication by the royal Spanish
arbitrator to Peru of territories which are likewise claimed by
Colombia.
Finally, the third pact arranged at Bogota is a provisional modus
vivendi, the object of which was to avoid conflicts imminent in the
region of the Putumayo which might have disturbed the friendly
relations of the two countries and have interfered with the
arbitration which is to decide the boundary controversy. But both
Governments have considered it necessary to remove every obstacle,
without affecting the rights which both parties allege in the
disputed region, in order to assure cordiality in their mutual
relations and the tranquillity necessary to those engaged in
industry for the development of their productive labor and energy,
and, inspired by these ideas, have reached the adjustment of a new
modus vivendi, whereby they agree to maintain the former statu quo
in the territory disputed between the two countries until the
definite solution of the controversy through the aforesaid arbitral
agreement of September 12, 1905.
The mixed Peru-Brazilian commissions appointed by virtue of the
Velarde-Rio Branco protocol of July 12, 1904, to make a
reconnoissance of the upper part of the Yurua and Purus rivers, have
already terminated their arduous labors and presented their reports,
so that the way now is open for the final negotiations respecting
the boundaries between Peru and Brazil in the region east of the
source of the Yavari.
In consequence of inevitable delays in the work of these commissions,
it was necessary to agree upon new extensions of the provisional
modus vivendi above mentioned, executed solely in order to
facilitate the agreements respecting the definite boundaries and
pending their ascertainment. I trust, therefore, that within the
extension which ends the 31st of October next it may be possible to
establish our just demand and terminate our boundary controversy
with Brazil.
The sessions have already begun of the arbitral tribunal charged to
decide upon the claims of Peruvians and Brazilians growing out of
the occurrences on the upper Purus in 1903. The claims of our
fellow-citizens, duly supported, have been submitted, and we must
confide in the tribunal’s according them a just appreciation.
After the agreement with Bolivia upon the arbitration which is to
decide our boundary question with that Republic, the Bolivian
Government solicited an extension of ten months beyond the term
fixed for the presentation of its defense before the arbitrator.
My Government, in deference to the wish of Bolivia, assented to the
extension, so that the submission of the respective defenses was
made to the Argentine Government on July 15.
The briefs of the parties having been delivered to each other, their
reply must be made within the term of six months.
While this subject was thus in course of being soon decided and
definitely resolved, my Government was painfully surprised by the
occupation of the mouth of the River Heath by General Pando with
Bolivian troops, in this way changing the situation of the zone in
controversy as it existed when the arbitration was agreed upon, and
obliging my Government to take measures for the protection of those
frontiers.
In the present state of the controversy, and in view of the duty of
both parties toward the arbitrator, who has taken cognizance of the
unexpected occurrence on the Heath, it must be expected that this
grave affair will be adjusted in a friendly spirit, the Government
of Bolivia recognizing that both countries must respect the statu
quo existing in the region of the Madre de Dios, whose definitive
condition is to be resolved by the arbitral award.
[Page 1225]
On the 1st of the present month the new treaty of commerce between
Peru and Bolivia and the money-order convention went into effect,
and the parcel-post convention becomes operative to-day.
The Tacno-Arica question continues to receive the earnest attention
of my Government and of our minister at Santiago, who has repeatedly
stated to the chancellery there the conviction of the people and
Government of Peru that in the treaty of Ancon is to be found the
mode agreed upon for determining the definitive condition of those
provinces and that its fulfillment is demanded by the faith of
treaties, the responsibility of the signatory nations, their
economic interests, and the cordality of their mutual relations. * *
*
On the 19th instant a new consular convention was signed between Peru
and Belgium. The stipulations of this pact assure the ample exercise
of the national jurisdiction in cases wherein heretofore consular
jurisdiction was permitted. * * *
By the proper ministry there will be submitted to the chambers a bill
for the periodic reduction of the tax upon the importation of
foreign lard.
The time during which the protective law has been enforced, passed
for the purpose of developing this industry in our country, shows
that the legislative purpose has not been accomplished, because the
national production is stationary while foreign importation is
increasing considerably. * * *
The income of the post-office department for stamps, correspondence,
parcels, and money orders was estimated for 1905 at Ł54,100, and
yielded Ł58,276; an excess of Ł4,176.
The receipts of the telegram department, estimated at Ł6,000,
amounted to Ł3,785, being a surplus of Ł7,785.
The interchange of postal parcels continues to increase. A convention
for this service has been signed with the United States of America,
and a like one is being negotiated with England. * * *
The supreme court has published the volume of judicial opinions and
decisions for the year 1905, and the jurisconsult charged with the
publication of those of former years has published a volume
containing those of the years 1871 and 1872. * * *
The historical institute, of recent creation, has been installed in
one of the upper salons of the Palacio de la Exposición. It has the
advantages of the professional services of the well-known
archaeologist, Doctor Uhle, who is charged with the organization of
the museum, and who will complete, under the auspices of the
institute, the important studies already made by foreigners in the
service of scientific centers relative to the remains which exist in
our territory of other civilizations.
The institute has commenced its labor with the publication of a
review, which is the contribution of this national center to the
cultivation of historical studies. * * *
The work of the ministry of war during the last year, in addition to
its ordinary administration, is the following:
- First. The cruiser Almirante Grau
has been launched.
- Second. A contract was made for the construction of a
second cruiser, Coronel Bolognesi,
which will be launched in September next.
- Third. There has been created in the general staff the
branches of topography, of engineers, and the inspection of
arms.
- Fourth. Corps of campaign artillery and coast artillery
have been created.
- Fifth. In connection with the war school, the fencing
school has been created;
- Sixth. An establishment has been created for the breeding
of horses for the army. * * *
The expenditures under the budget of last year are without precedent
in the history of the public treasury.
The receipts estimated for 1905 amounted to £2,223,488, but revenue
was collected to the amount of £2,371,354, thus yielding an increase
over the amount estimated of £147,866.
The disbursements effected with supplementary credits during that
year to meet unavoidable necessities of the administration amount to
£91,514, thus leaving a surplus of £56,352 over the amount of
disbursements made and chargeable to the said budget.
This result is proof of the economic prosperity of the Republic, and
of the regularity with which the several branches of administration
are conducted. * * *
[Page 1226]
The budget for 1907 has been made after careful revision and estimate
of probable returns, and amounts to £2,677,572; that is to say, as
compared with the preceding budget, which amounted to £2,506,386, an
increase of £171,186.
* * * * * * *
In this increase of expenditure (extraordinary expenditures amounting
to £238,042) are found such interesting items as those of:
The subsidy of a new steamship company;
The maintenance of the new cruisers;
An increase of 10 per cent in the salaries of civil and military
functionaries;
Increased expenditure on account of army rations, the supplying of
horses, forage, quartering of supernumeraries, military hospital,
campaign artillery material, the advancement of the School of Arts
and Trades, the expenses of public health, new roads, the faculty of
medicine, the University of San Marcos, and other objects. * * *
The national prosperity manifests itself likewise in a flattering
form in our banking movement.
The cash in the banks on June 30 last was £959,164, and on the same
date in 1905, £973,441.
The deposits and credit accounts on the same date of June 30, 1906,
were £4,511,537, which on the same date in 1905 were £3,498,407.
The capital and reserve funds on June 30, 1906, were £1,093,895, and
on June 30, 1905, £971,491.
The total assets of the banks on June 30, 1906, were £6,418,319, and
on June 30, 1905, £4,572,046.
The total amount of capital invested in the formation of new stock
companies in 1905 was £769,000, and in 1904, £207,000. Our monetary
circulation has grown to £602,185.
Our foreign commerce has in 1905 reached £10,080,771, which in 1904
amounted to £8,364,642; making an increase of £1,716,129.
Imports in 1905 reached the sum of £4,329,151, and in 1904
£4,289,002; balance in favor of 1905, £31,148.
Exports in 1905 reached the sum of £5,751,620, and in 1904,
£4,066,639; balance in favor of 1905, £1,684,980.
During the course of the present year, 1906, this favorable condition
of our foreign commerce is maintained, reaching during the first six
months the sum of £5,181,369, which during the same period in 1905
was £4,218,294; being an increase in 1906 of £963,075.
In 1905, in contrast to 1904, the increase in exportations is greater
than in importations.
The value of imports made free of duty, representing raw material,
machinery, and railway stock, reached, in 1905, £1,611,038, and in
1904, £1,651,476.
* * * * * * *
The commercial development as shown by the custom-house at Iquitos
continues in the ascendant. It amounted in 1905 to £1,478,995, and
in 1904 to £1,250,068; a difference, in favor of 1905, of
£228,927.
The coastwise trade has been as follows: In 1905, 374,494 tons; in
1904, 361,692 tons.
Th maritime traffic at the port of Callao was as follows: In 1905,
927,249 tons; in 1904, 924,524 tons.
* * * * * * *
The term has expired which was fixed by the legislative resolution of
November 25, 1904, without the conclusion of an adjustment of
differences with the Peruvian corporation, notwithstanding the
decided effort put forth by my Government, which has been rendered
of no avail by the varying and unjustifiable demands of that
company.
* * * * * * *
The register of mines has been published punctually and its
statistics reveal the development of the mining industry and the
great interest aroused by the exploitation of this branch of the
country’s wealth.
It is proper to recall, in order to appreciate the mining
development, that the number of claims recorded in the register of
the first half of 1903 was 5,310, subject to a charge of £9,752,
whilst the register of the first half of the present year contains
10,421 mining claims, which pay in taxes, fines, etc., £32,357.
[Page 1227]
The following is a résumé of the mineral production during the past
year:
| Materias. |
Cantidades. (Amounts.) |
Valores.
(Values.) |
| Oro en barras, en
productos metalúrgicos y en minerales. (Gold in bars,
in |
|
Libras. |
| metallurgical products and minerals) |
Kilograms |
733 |
97,072 |
| Plata id. id. (silver) |
Do |
176,000 |
648,000 |
| Cobre (copper) |
Tons |
11,000 |
622,268 |
| Plomo (lead) |
do |
1,270 |
5,420 |
| Petróleo bruto (raw petroleum) |
do |
49,700 |
124,250 |
| Carbón (coal) |
do |
72,665 |
98,300 |
| Sal (salt) |
do |
21,083 |
21,038 |
| Boratos (borates) |
do |
1,594 |
14,346 |
| Níqual (nickel) |
Kilograms |
1,778 |
145 |
| Azoerue (quicksilver) |
do |
1,554 |
340 |
| Bismuto (bismuth) |
tons |
12 |
5,000 |
| Molibdeno y vanadio en pequeña cantidad. |
(Vanadium in small
amounts.) |
|
|
| Total |
|
|
1,636,179 |
The production and value of some of our principal agricultural
products during 1905 were as follows:
| Artículos. |
Producción. |
Valor. |
|
|
|
Libras. |
| Azúcar (sugar) |
kilograms |
161,850,935 |
1,638,593 |
| Algodón (cotton) |
do |
10,665,275 |
522,843 |
| Lanas (wool) |
do |
4,510,530 |
440,734 |
| Gomas (rubber) |
do |
2,539,074 |
955,157 |
| Cocaína (cocaine) |
do |
6,088 |
77,318 |
| Coca (Coca) |
do |
1,313,825 |
94,596 |
| Café (coffee) |
do |
834,893 |
28,390 |
