File No. 3742/28–30.

Secretary of Legation Neill to the Secretary of State.

No. 148.]

Sir: I have the honor to report that the regular sessions of Congress were opened yesterday with the usual display, being the eighty-seventh anniversary of the independence of Peru.

The President read his message, of which I herewith transmit two official copies, and the salient points in translation as inclosures.

All the members of the diplomatic corps were present.

I have, etc.,

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

Résumé of President Pardo’s Message.

Foreign relations have been kept up on a footing of perfect cordiality between Peru and other nations.

The arbitration of the question as to limits with Bolivia, subject to the decision of the President of the Argentine Republic, is in an advanced state.

The new arrangement as to traffic with Bolivia via Mollendo is now in force and gives every possible facility to the Bolivian trade.

The modus vivendi agreed upon with Brazil as to a portion of the territory in dispute still continues without having succeeded in arriving at a definite solution. Both Governments have nevertheless come to an understanding that the final settlement foreseen in the protocol of July 12, 1904, shall be effected before May 31, 1909.

Conflicts between Colombians and Peruvians continue to occur in Putumayo owing to the canceling by the Government of Colombia of the treaty of 1905. These incidents are to be deplored, but our Loreto authorities have interfered, reestablishing order and opening an official investigation to prove who was to blame.

The question about limits with Ecuador awaits the decision of the arbitrator, the King of Spain.

In February of this year Callao was visited by the powerful American Atlantic Fleet, under the command of Admiral Evans. The sincere and friendly reception which the inhabitants of Lima and Callao gave to the crews of the American war vessels and the honors which in my person this squadron tributed to Peru form an evident proof of the cordial relations which unite the two Governments, and in which the people of one and the other country fully share, as was shown likewise during the recent voyage of the cruiser Admiral Grau to San Francisco, Cal.

The question regarding the definite nationality of Tacna and Arica has not yet been settled, and every day the bonds of nationality and patriotic affection which unite us to those provinces are becoming closer and stronger. During the diplomatic discussion our foreign office has had occasion to show clearly once more to the Government of Chile and to those of other friendly nations that the [Page 684] compliance on the part of Chile with the treaty of Ancon is the only method to resolve with justice the pending question.

The recent revolution started by a group of rebels, and simply due to an outburst of political passion, surprised the entire nation; but it was promptly suppressed, as the whole population is opposed to revolution, because they now comprehend that any revolution is more fatal to their interests and to the country than it ever can be to the party or Government in power.

The number of Government schools in the Republic is 2,410, with 156,011 pupils. During the past year 105 new schools have been opened. A North American mistress has been brought out, under contract, for the inspection and direction of the schools for girls.

The works of fortifying Lima and Callao are being carried on gradually according to modern systems and mounted with Armstrong guns; two other batteries are being constructed for the use of Schneider-Canet quick-firing guns.

Several young naval officers are gaining practical knowledge by serving in the navies of the United States, France, and Spain, and the Governments of those countries have earned the gratitude of Peru by their kind attention.

The bond stores in Callao customhouse continue giving excellent results. This “warrant” system will soon be extended to others of the principal customhouses.

The national mint has coined in the past year £214,000 in gold coin and £104,000 in silver sols of 24d. each.

The budget for 1909 amounts to £301,194.

The value of importation in the past year was £5,514,787 and of the exportation £5,747,732.

The value of the import and export trade in the first half year of 1908 was £5,264,540; that is to say, £175,000 more than in the same period of 1907.

The Government could not be insensible to the want of facilities in the port of Callao for the loading and discharging of vessels, and has arranged with the dock company the extension of the present wharves and construction of new ones, besides an increased number of lighters, winches, etc., and it will not renew the privileges of the company on the expiration of the contract in 1912.

The service of the public debt has been conducted with the greatest punctuality.

The construction of different railways for the purpose of improving the means of communication, cheapening freights, and extending trade with the most important centers has continued without interruption.

By means of the wireless-telegraph system daily communication has been established between Lima and Iquitos.

The Government continues devoting special attention to the problem of immigration and during the past year has granted free passages to 566 European immigrants, of which 435 were of the male and 131 of the female sex.